How to Become a Clothing Reseller

by Owen E. Richason IV; Updated September 26, 2017
A clothing reseller is industry terminology for clothing retailer.

A clothing reseller is another term for clothing retailer. In the retail industry, regardless of the product sold, the outlet that sells goods to the public is "reselling" them after buying said goods wholesale from a manufacturer or from a supply vendor authorized to sell the manufacturer's goods. Most states require retailers to apply for a license to sell products to the general public.

Step 1

Select a concept. There are many types of apparel to sell. Select a specialty and cater to that demographic whether it be men's, women's, girls or boys apparel. According to Entrepreneur.com, even though the malls and strip malls are bursting at the seams with clothing stores, specialty apparel shops can thrive because they cater to a select group and build customer loyalty.

Step 2

Write a business plan. A business plan is necessary to obtain financing and give you a concise, reliable road map to open and operate your small retail clothing business. A business plan includes but is not limited to: business financing, advertising and marketing strategy, managerial and staff structure, manner in how business will be conducted and hours of operation.

Contact a local business broker or business plan writer to have him write a business plan for your clothing reseller business. You can also download software such as Plan Write and make one yourself.

Step 3

Get financing. Visit the Small Business Administration's website and navigate to the financial assistance page. Your business plan will tell you how much capital you will need. If under $35,000, you may qualify for a microloan. A microloan is under $35,000, payable over a period of six years and carries interest rates ranging from 8 percent to 13 percent. You should note that a microloan lender will require a personal guarantee signature and collateral from the borrower.

Step 4

Register your retail clothing store with appropriate government agencies. Go to an Internet legal documentation service such as LegalDocs.com or LegalZoom.com and have your articles of incorporation written. File your articles of incorporation with the state your business will be in and check with the state to ascertain if your business' fictitious name is registered with the state or at the county level.

Additionally, visit the IRS's website and apply for an Employer Identification Number or EIN.

Step 5

Find retail space and vendors. Locate retail space in a high-traffic area with clear store front visibility. Rather than looking in malls, search for a location in a strip mall or even a stand-alone building. You want to have enough room to receive merchandise and tag it, along with a small employee lounge and small office space.

Read through trade publications to find merchandise supply vendors. Visit trade shows to meet vendors. Once several have been identified, contact them and ask to be sent a new account package. In it, you will find how to order, quantity minimums and limits, suggested retail pricing as well as method and time of delivery.

About the Author

Owen Richason grew up working in his family's small contracting business. He later became an outplacement consultant, then a retail business consultant. Richason is a former personal finance and business writer for "Tampa Bay Business and Financier." He now writes for various publications, websites and blogs.

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