Formal wear rental shop

Wedding parties, prom and homecoming groups, quinceañera and pageant families, and people attending formal events.

Rental fees per outfit, group packages for wedding parties, accessory rentals, alteration charges, and late or damage fees.

• Fitting and sizing knowledge
• Inventory and booking management
• Sales and customer service
• Basic budgeting and cash flow planning

• Local business license, zoning and certificate of occupancy for a retail space
• General liability insurance, property insurance for stock, and workers' compensation if you hire
• Lease terms and commitments, which are the biggest fixed cost
• Whether your state taxes rentals, and how to register for sales tax
• Heavy seasonality, so build a cash buffer for slower months
• Cleaning, repair and replacement costs, and ordering enough sizes for group bookings

Startup costs are typically estimated at around $25,000 to $100,000, depending on your location, lease deposit, fit-out and how much stock you buy. Lease terms are the biggest fixed cost, so read them carefully.

Estimates suggest monthly revenue of around $5,000 to $25,000, depending on your location, stock and how many group bookings you win. Demand is heavily seasonal, so build a cash buffer for slower months.

Check your local business license, zoning and certificate of occupancy for a retail space. Also check insurance such as general liability, property cover for stock and workers' compensation if you hire, and whether your state taxes rentals.