Online hat boutique

Individual shoppers buying for everyday wear, weddings, race days and other events, plus gift buyers.

You buy at wholesale prices and sell at retail, keeping the difference after postage, fees and returns. Occasion hats usually carry higher margins than basic caps.

• Choosing stock that suits your customers
• Product photography and writing descriptions
• Customer service and handling returns

• Distance selling rules give online customers a right to cancel and return, so check the current consumer rules and write clear returns terms
• Register as a sole trader with HMRC, and check when VAT registration becomes compulsory
• Hats are bulky and often returned, so work out postage and return costs before setting prices
• Check that product descriptions and any 'handmade' claims are accurate

Startup costs are typically around £800 to £5,000, depending on how much stock you buy, how you photograph it and how you build your website. Treat these as estimates and test a small range first.

Monthly revenue is typically around £300 to £3,000, depending on your range, pricing and how many customers find you. That is revenue, not profit, so allow for stock, postage and returns costs. These are estimates only.

Check the distance selling rules, which give online customers a right to cancel and return, and write clear returns terms. Register as a sole trader with HMRC, check when VAT registration becomes compulsory, and make sure descriptions and any 'handmade' claims are accurate.