Formal wear boutique with tux rentals and gowns

Teens and parents buying for prom and homecoming, wedding parties, and adults attending formal events.

Profit on dress and suit sales, rental fees for tuxedos, and extras like accessories, alterations and rush orders. Business peaks around prom and wedding seasons.

• Friendly, patient customer service
• An eye for fit and style
• Inventory and ordering
• Basic bookkeeping

• Check with your city or county about a business license and zoning for retail
• Register with your state for sales tax and ask about a resale certificate for buying stock wholesale
• General liability and property insurance, plus coverage for rental inventory
• Seasonal cash flow: large stock purchases come before prom and wedding peaks
• Some dress brands limit how many shops can sell in an area, so check supplier agreements
• Workers' compensation insurance once you hire staff

Startup costs are typically around $30,000 to $120,000, depending on your location, stock levels, fit-out and rental inventory. These are estimates, and large stock purchases come before the prom and wedding peaks, so plan your cash flow.

Monthly revenue is typically around $10,000 to $50,000, depending on your location, stock and the mix of sales and tuxedo rentals. These are estimates, and income tends to be seasonal around proms and weddings.

Check with your city or county about a business license and retail zoning. Register with your state for sales tax and ask about a resale certificate. Also check supplier agreements, since some dress brands limit how many shops can sell in an area.