When you hear a business referred to as a “boutique”, it immediately sets expectations. Those expectations may vary a bit from person to person, but in general, a boutique is usually a high-end, highly specialized business. A boutique might focus on one type of product or service or on serving a specific type of customer.
What Is a Boutique?
The term “boutique” has evolved over time. It originally referred to either a small specialized shop or a small shop within a larger store. That boutique definition still applies in many cases, but it has also expanded to a broader range of businesses including financial firms, advertising firms and hotels.
For example, a boutique financial firm might specialize in investing in a specific industry or certain types of transactions. A boutique advertising firm might focus on advertising within a particular sector, such as health care, or appealing to a specific market segment, such as women or millennials. A boutique hotel would offer a high-end, unique experience to its guests. It wouldn’t have the anonymous, mass-produced feel of a large hotel chain.
A retail boutique would also be specialized. For example, a boutique shop might specialize in little black dresses, organic cosmetics or high-end sleepwear. What sets a boutique apart is that it does not appeal to everyone. It is designed to appeal to consumers who don’t want to get lost in the aisles of a big-box store.
Why Consumers Choose Boutique Businesses
Boutique businesses appeal to consumers due to their level of specialization. Many consumers are burnt out on big-box stores and the lack of customer service that sometimes comes with larger stores and firms. Boutique businesses allow customers to seek out a store that specializes in exactly what they want, whether that is a little black dress or an advertising firm that specializes in their line of business.
Boutique businesses are also more likely to get to know consumers. Instead of being an anonymous face in a crowd, consumers can get personalized service. For example, a boutique clothing store might call a customer when an item comes in that she would like.
Why Entrepreneurs Open Boutique Businesses
The first reason entrepreneurs might open a boutique business is that it allows them to focus on their expertise. For example, a cosmetologist who is passionate about organic skin care might open a boutique that specializes in organic skin care products. A marketing executive with expertise in the IT industry might open a boutique advertising firm for managed service providers.
Another reason entrepreneurs might consider a boutique business is that it allows them to start small. You can open a retail boutique that specializes in vintage bags, and no one will expect the store or the inventory to be substantial. A boutique hotel might only have 10 or 20 rooms, and that would be perfectly reasonable. You can start small and gradually scale up.
Having a smaller inventory and less space also might lower startup costs. If you are specializing in high-end, luxury or hard-to-find items, though, you need to allow for higher costs. Keep these factors in mind if you are developing a business plan for a boutique business.
Boutique Industry Outlook
Since you can find boutiques across a variety of industries, there is no single outlook for all boutique businesses. Clothing boutiques are a distinct industry, though, and the industry saw a decrease of 1.8% from 2014 to 2019, according to IBISWorld.
This decline may be due to the increasing number of clothing boutiques and the growing availability of unique clothing online. If you have a clothing boutique or if you are thinking about opening one, having a stellar marketing plan and an online presence is essential to success.
Developing a Boutique Business Plan
Although a boutique business is unique, your business plan doesn’t have to be the same. You can follow the traditional business plan format, which includes:
- An executive summary. This is a brief overview of your boutique business, and it should include your product or service and high-level financial information.
- A company description. This should go into more detail about the products or services you plan to offer. It should also explain what sets you apart from your competition.
- A market analysis. This is critical for a boutique, as you are focused on a niche market. Explain why that niche needs your product and what the opportunities are within that niche. Show that you have done your research on why your boutique business will be a success.
- Your organization and management plan. While it might be tempting to take on everything in a small boutique business, that can also be exhausting. Who will assist you or partner with you to keep your business going and growing?
- Your service or products. This section should be as specific as possible. It should include an explanation as to how your product or service benefits or solves a problem for your customer.
- Your marketing and sales plan. How will you get the word out about your boutique? How will you get customers to come back for more?
- Your funding needs. Be specific about the kind of funding for which you are looking, your preferred terms for funding and how much funding you will need. Explain how you will use the funds.
- Your financial projections. How do you anticipate your boutique business growing over the next five years?
Be specific and include why your expertise will make your boutique business a success. You can also include an appendix, which might have pictures of your products, legal documents and other information to support your boutique business plan.
Marketing Your Boutique Business
Whether your boutique business is in the planning stages or it is already established, a good marketing plan is essential. Since boutiques are specialized, you may want to steer clear of mass-market advertising such as television advertisements or newspapers. Social media allows you to advertise to a specialized audience, but you need to use the right social media outlet for your customers.
For example, Facebook has a fairly large reach. You can advertise to your target market, and you can also develop a page for your boutique with shareable, must-read content and entertaining videos. For a clothing boutique, Instagram has a lot of appeal. It is highly visual, allowing you to show clients exactly what your clothing looks like in the real world. If you have a B2B business, LinkedIn would be a good focus for your marketing efforts.
Reaching out to social media influencers can be a successful marketing strategy. Make sure you have clear goals for your work with influencers, though, so you can track the success of your social media campaigns. For example, you might track new followers or sales generated by your influencer.
- Merriam-Webster: Boutique
- BusinessDictionary: Boutique
- Brick and Mortar Maven: 3 Things That Define Your Business As a Boutique
- Investopedia: Boutique
- Forbes: Five Reasons The Boutique Model Is Revolutionizing The Future Of Retail
- IBISWorld: Clothing Boutiques Industry in the US - Market Research Report
- U.S. Small Business Administration: Write Your Business Plan
- The Boutique Hub: Boutique Fashion Industry Shake Up: 2018 Business Predictions and Strategy Shifts
- Sprout Social: Social Media Demographics to Drive Your Brand's Online Presence