Ties are considered to be the one item in a man's wardrobe that can quickly perish--from food stains, skin oils, ink or wear and tear as the tie fabric rubs against a suit, desk or even a seat belt during the business commute. While there is less of a demand for ties in today's dressed-down society, men still wear bow ties and neckties for more formal occasions. If you are considering opening a bow tie and necktie business, here are some things to consider as you begin your venture.
Ascertain whether you have a marketable product before you invest time and money into beginning a bow tie and necktie business. While ties have been around since the 1600s, they are no longer a necessary requirement of business dress code in many companies. Look at the area in which you will be running the business; are you in a small town or metropolitan area with high traffic? Will you have a storefront or an Internet business? If a storefront, are lease rents reasonable or expensive in your area? Will you be selling specialty ties, or those with mainstream designs?
Write a business plan for a bow tie and necktie business. On paper, explain the company's purpose, what will be sold and why, and what type of customer you wish to reach; as well as how the business will be managed, financed and marketed. The object of a business plan is not only to give the bow tie and necktie business clarity, but to entice an investor into financing your plan.
Determine the structure of the business as either a sole proprietor; Limited Liability Corporation, or LLC (if more than one partner); or a corporation. Choose a name, and file the appropriate papers with the secretary of state's office, along with the required fees to legalize the business structure of your bow tie and necktie business.
Obtain financing for the bow tie and necktie business, ensuring you will have capital before you make any financial commitments. You will need to show the bank or investor the business plan previously drawn up, and clearly explain how you will meet financial obligations, as well as market the bow ties and neckties. Complete the required loan paperwork, and be prepared to provide documents such as several years' worth of tax returns, pay stubs for your current job, and proof of savings and assets.
Choose a business location, if you will have a retail store for your bow tie and necktie business. Drive to various business retail areas and inspect storefronts, compare rental rates, and talk to the surrounding businesses to get an idea of both foot and car traffic by the various locations before signing a lease.
Register for a federal tax identification number, and to pay state and local taxes. Contact your state's Department of Taxation to inquire what forms need to be completed, and verify the time frame in which this must be done so as to not incur any fees or penalties. If you are not working with an accountant, ask if the tax department has any publications that can be sent to you on small business taxes for self-education.
Complete a request for any local business permits that are required to open the bow tie and necktie business. The local Chamber of Commerce can answer questions on the permits as well as any zoning laws, which may be important if you are setting up the business out of your home.
Announce a grand opening date of the bow tie and necktie business. Write a news release and send it to the local newspapers, as well as radio and television stations. Distribute fliers in populated business areas. Send letters to any potential customers (family, friends or neighbors) to let them know when the business will be opening. Take out advertisements in the newspaper, and use free websites such as Craigslist.com, or local community websites, to advertise the grand opening.
If possible, keep a storefront lease to 1 year, no more than 2, for the bow tie and necktie business. This gives you time to establish the business, but does not tie up funds for years to honor a contract if the store does not make it.
Make sure you are not duplicating a service that is already available in your area, to avoid possible failure.
- neck tie image by Christopher Hall from Fotolia.com