Apparel Retail Businesses For Sale in Tucson
SIC Code: 5136
Critical Success Factor:
Ratio of Rent to Sales
When you’re starting a retail apparel business, you do not know what your sales are going to be. But your fixed costs are knowable. In order to position yourself for success, a good ratio to keep in mind is that rent should not be more than 5-6% of sales. When you’re looking at possible venues, consider the value of the location and try to estimate foot traffic, conversion rate and average sales value by location. Location matters in sales, just as it does in cost of rent. For example, if you’re looking at a site where rent is $1500 per month, that would be $18,000 per year, meaning that you’d need to sell $300,000 per year in order to keep rent at 6%. If your business plan doesn’t convince you that this level of sales is possible in the location in question, then looking for a less expensive or smaller location is probably advisable.
For more valuable information to assist you in planing to start or buy a retail apparel business in Tucson, check out the resources provided by the American Apparel and Footwear Association at www.apparelandfootwear.org.
Background: The Things You Should Do Before Opening a Clothing Retail Store
So you’ve come here to learn how to buy a clothing retail store?
Now before you keyed in the keywords in Google or Yahoo search engines, and ended up here, what are the things that you know about retailing?
Well you wouldn’t suddenly come up with an idea of starting a retail clothing store out of nowhere, would you. Buying a business in Tucson is not as difficult as you think, and represents one of the best investment opportunities available in this time of volatile markets and currencies, and depressed housing values.
If you want to buy a retail clothing business in Tucson, then you’ve chose one of the top-selling categories of businesses for sale in Tucson, and one that could stand to earn you a lot of profit.
Before you settle on this choice, it is important to be clear about the thought process that lead you to choose a retail clothing business rather than some other kind of business, or retailing business. You may think that opening a retail store in Tucson is easier than starting in another business sector, because locations are easy to find, and cost of inventory could be lower than average, etc. The reality is that owning any kind of business can be a challenge, and it is important to be genuinely interested in the kind of business you buy because you’re going to spend a lot of time in it. You need to have a plan when you buy a retail apparel business in Tucson, that includes surviving and thriving so that one day if you choose you could also have the option of putting your retail business for sale to another buyer seeking to make a Tucson business investment. Before you start down the path of buying a retail apparel business in Tucson, it’s important for you to know if you’re ready to take on the responsibility. Our Buyers section on this website is designed to walk you through the steps involved in buying a business, and may be a good resource to consult at this time
Many people successfully make the transition from being an employee to a Tucson small business owner, but not everyone is cut out for it. Consulting a business broker along the way, and understanding the process of buying a business in Tucson, can provide you invaluable advice, and help you make the right decision. What do you think? Do you have what it takes to be in business for yourself?
Even if you are suited to be a small business owner in Tucson, is a customer-centric and highly service oriented business like apparel retailing something you are truly suited for? Do you really believe that “the customer is always right?” Or are you perhaps better suited to explore your interest in buying an apparel related business in the role of a wholesaler, distributor or manufacturer? Answer the following five questions honestly. Talk to your spouse, best friend or prospective partner about your answers as a reality check before going further in the process of buying a business in Tucson.
Now here is a short personality test on how you can fare on taking on a business such as a clothing retail store.
◾ Now the first question is, are you good in multitasking? In retail or any kind of business, flexibility is one of the most important things that you the owner must possess. Now you may have experience in handling a job from your previous work, which is probably where you got your capital, but handling a business from handling a single task is different from each other. Sure your boss made you do tasks that involve your specified work, but you are usually responsible for just one thing and have limited control. And, you are supported by others with expertise or experience in different roles and functions.
But when it comes to retail, you’ll have to handle every task that lay down in front of you. As the owner of the clothing retail store, you will encounter different sorts of customers, employees, vendors and landlords, and you cannot complain and say that “that’s not your job”, because by the time you open that door, all of it will be yours.
◾ The second question is, are you the risk taker? Now you might have heard about this for thousands on times now, but risks are a part of any kind of business. Business entails a lot of risks, and risks entails a lot of worry for someone that cannot handle a risk. It is important in this kind of business that one must know how to handle adversities that comes in the way.
If you prefer a more predictable and organized way of handling your clothing retail business, then it’s no use continuing your business. Unplanned events are the usual menu that you’ll likely have in your plate in a business of clothing retail. So it’s important that you ready yourself on facing this kind of events in which the success of your business is at stake.
Now if you see risks as a threat then you’ll likely see it plainly as a “Threat” to your business. But if you took it as an opportunity, an opportunity to test your skills, to hone your abilities, and to see possibilities of success from it, then you’ll likely want to face a lot of risks in your clothing retail business.
◾ The third question is, do you usually count on your paychecks? Once you start your own business, in which case a clothing retail business, it is necessary that you devote all your attention on it if you want it to be very successful. So you’ll have to sacrifice a timely intake of paychecks from your job and start making money for your own.
Startups frequently require more capital than planned. Something’s bound to go wrong or change even though everything is penciled out in your plan. If you break out in a cold sweat if you aren’t paid on the same day every month, you may want to rethink going out on your own. Most of the money you make will go right back into inventory and other costs of doing business.
◾ The fourth question is, are you the self-starter type? Do you draw your energy from being around others and count on colleagues for support and advice? Well if you’re that kind of a person, then you’ll likely to find yourself scared.
What I’m trying to say is that you’ll feel scared of the world ahead of being the owner of a business, because in this kind of life, you’ll likely run it alone. In your own business, you must lead, knowing what to do and when to do it, and be fully accountable for everything that happens. The buck stops with you. Sometimes that’s a lonely place.
Now if you passed every single question about yourself, and think that you’re ready enough to tackle every test that comes in your way in starting your own clothing retail store, then let me give you some things to think about when it comes to buying your retail apparel business in Tucson and running it sucessfully thereafter. .
Don’t Bite Off More Than You Can Chew
Now one of the most common reasons why many clothing retailers fail in their businesses is that they tie up so much cash in inventory and overheads in the beginning. If you’re getting short on funding, concentrate on getting select quality merchandise. As your business grows and your customers increase, you can then afford to increase your inventory. Avoid buying expensive fixtures at the start, as customers will go to your store because of your merchandise, not so much the ambiance of your store.
Learn more about Your Target Market
Before you open the doors of your shop for business, you should try to learn as much about the demographic of your area and the immediate vicinity in Tucson as possible. Whether you will be leasing a space at the mall or opening a small boutique, knowing the population characteristics of your area – their income, age, population brackets – can assist in your decision making process. If your area is composed of high-income population, you may want to purchase brand names and pricier merchandise. If the area is a retirement community, you may want to locate a baby and infant clothing store there.
Control Inventory Tightly
In line with following a concept for your store, consider the range within a reasonable structure. Selling everything from budget to very expensive is not a sound idea. Experts suggest that you should keep your merchandise to within three prices lines.
Listen to What Customers Want
As the business owner, the success of your clothing business will in large part depend on the selection of your merchandise. However, it is best to always keep an open mind and be receptive to customer suggestions.
Promote Your Business
If your location is good, your business may benefit from a lot of walk-in traffic. Nonetheless, you still must think of cost-effective strategies to advertise your business.
If you think that buying a retail clothing / apparel business in Tucson could be right up your aisle, then let Allen & Young’s experienced team help you find just the right one for you. We have insider access to many businesses for sale in Tucson that will never be listed publicly, as well as databases of information that allows to develop further information and analysis while working with you. Consult our Buyers Section to learn more about the many benefits of working with a business broker when buying a business in Tucson.
Ready to start looking? Contact us today or call Carrie Allen at 520-909-8242.