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How to Run a Boutique Business

by Joseph Petrick, studioD

Although the term boutique can apply to any business, it is usually associated with fashion and beauty. The boutique business can earn its owner good profits from the sale of clothes, accessories, handbags, shoes or a number of other items. Starting and running a boutique requires a passion for fashion, a good eye, a target market, premium pricing, differentiation from the market, strategic marketing and excellent customer service. The business goes through a variety of phases that are determined by the priorities of the owner.

Getting Starting

As a prospective boutique owner, you need to look into a variety of factors before setting up a boutique. One of the most important aspects of running this type of business is location; customers need to be able to easily access the shop and be comfortable spending time looking through and trying on the products. Therefore, you must determine a suitable location for the shop and ensure that you have saved up enough money to pay the security deposit, rent for at least two months, electricity and all the other overheads. You should also secure a reliable supplier of your products to avoid running out of stock once the business is up and running. You can identify reliable suppliers by asking other established boutique owners or by attending trade conferences to meet with supplier representatives. Then you can enter into a partnership contract with a manufacturer or distributor.

Market Share

The fashion and beauty market is dynamic and highly competitive, so you have to have a solid strategy for gaining market share. Fashion and beauty are constantly being redefined and you must stay updated on the latest trends to consistently provide the customers with what they want. This stage of the business also requires you to implement strategies that will help draw customers to the shop. Premium pricing is one of the ways in which you can narrow your target market and create an element of exclusivity for your customers. Hiring professional attendants and ensuring that customers always receive prompt assistance is another way to create a reputation for excellence and earn customer loyalty.


After the business has carved a niche for itself in the market, it needs to expand to have a greater reach and also to enhance the profit margins. Opening a second and even a third store will allow you to serve a greater number of customers. At this stage of the business, you should invest in marketing to attract more customers and also to raise the profile of the store. Marketing initiatives include participating in networking groups and using social media to create awareness about the boutique’s products; having a grand opening launch and inviting the media to create a buzz; or even joining trade associations and local business organizations to enhance your contact base. You could also plough back the profits to increase the range of products that you offer and to meet the needs of the growing customer base.

Competitive Edge

A boutique business will be sustainable in the long run if you identify what makes your store stand out in the market and maintain that competitive edge to ensure repeat business. The competition in the industry is high and there are many people involved in the business, both in physical retailing and also online. Therefore, you will need to distinguish yourself from the other businesses and give customers a reason to keep coming back to shop at your store. Offering after-sale services and a reasonable return policy, loyalty discounts and customer alerts on new stock are good ways to stay on top. Staying committed to offering high-quality personalized service is the way to maintain your brand so that you can continue to operate successfully in the long-term.

About the Author

Joseph Petrick has been a writer and editor since 2003. He writes career, business and education articles. His work has appeared in several online publications including Career Today. Petrick holds a Master of Arts in philosophy/economic anthropology from Pennsylvania State University.

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