Clothing Industry Is Looking For Capital &Nbsp For Fashion Products.

Shopping malls, such as battlefields, open shops and businesses, like soldiers in battle array, "soldiers will not move, food and grass first" is a common knowledge of military strategist, clothing store business should be the same, before opening a shop, first of all funds must be in place.

At the same time, shop operators also need to predict the future business benefits of clothing stores before opening stores, so as to keep their shops profitable.

How to raise more capital?

Opening a shop is actually a process of investment, and there will be output if there is input.

As a shop owner, we should raise more funds than the budget to prevent all kinds of unexpected situations.

To understand and solve the demand for financial expenses is the key to determine the success of the future business of shop operators. Therefore, shop operators must first know what costs the store needs in the course of operation.

Generally speaking, the cost of running a shop involves three major parts: first, infrastructure investment, including the cost of shop decoration and the purchase of necessary hardware facilities, such as hydropower infrastructure, air conditioning, shelves, cash registers and signboards, etc.; two is the daily management cost, including labor costs, store rents, daily management costs and publicity expenses, etc. three is the cost of goods.

To ensure that the above funds are in place, how should shop operators raise funds?

The main ways of raising money are in the following ways.

Personal financing should not blindly pursue scale.

If a person has strong financial resources, he can set up a clothing store by personal investment.

The advantage of personal investment is that it is flexible in operation, free from interference from others, can manage according to its own business philosophy, and profits are owned by individuals.

The disadvantage is that it is not easy to raise sufficient funds and no one shares the risk of investment. Once the operation fails, it will cause huge losses to individuals.

Therefore, if we adopt the way of personal investment, we should not invest all the funds accumulated by individuals, and do not blindly pursue the scale when we first open shop, so as not to cause too much investment, but business is sluggish, so that the capital chain is broken.

Those who are involved in the business should choose a relatively small shop according to the characteristics of their clothing brands and their business capabilities.

In this way, we can gradually adapt to the market and accumulate funds, and more importantly, we can gradually explore and accumulate experience in opening stores, and make preparations for future development in terms of capital, personnel and experience.

Partnership to invest in a good partner.

Partnership contribution refers to two or more than two people who co invest, share risks and share interests.

When the scale of operation is large and the contribution of individuals can not meet the needs of funds, this kind of financing method can be considered.

In this way of investment, it is easy for partners to generate financial and business disputes, so choosing a good partner is very important.

The most important criterion for choosing partners is that partners must share the same business philosophy with you, share your joys and sorrows, share risks, and communicate easily with each other.

In addition, the partners must sign a partnership agreement before they cooperate with the partners to clarify the rights and obligations of both parties.

Otherwise, with the development of the store business, it will be difficult to resolve the contradictions between the two sides.

Especially when there are difficulties in operation or large profits in operation, the conflicts between partners are the most likely.

The partnership agreement shall clearly stipulate the following terms:

The rights and obligations of partners;

The duration of partnership;

The proportion of each partner's investment and share.

Profit distribution plan;

? ways to absorb new partners;

The responsibilities of each partner and the punitive measures taken for irresponsible consequences.

Bank loans prepare related materials.

Whether it's a sole proprietorship or a partnership investment, it belongs to the founder's private investment and is mainly applicable to small clothing stores.

Some clothing stores are large in scale, and the demand for capital exceeds the ability of sole proprietorship or partnership investment. At this time, it is necessary to consider lending to banks.

Lending to banks is one of the main ways to raise funds for opening stores. It is simple, direct, convenient and effective.

According to the relevant regulations, banks will grant loans if they have the following conditions:

Hold the business license issued by the administrative department for Industry and Commerce and the documents approved by the relevant departments;

Abide by national policies and decrees and meet the approved business scope;

There are 30% to 50% free flowing funds.

It does have the solvency and financial security capabilities.

If the operator plans carefully, carries on the thorough market investigation and the technical analysis, and has the detailed feasibility report, can objectively carry on the appraisal and the forecast to the future difficulty, then the loan success hope will be very big.

Private lending should not exceed its ability to repay.

Sometimes, relatives and friends are ideal borrowers to set up clothing stores, especially small clothing stores.

It is worth noting that borrowing money in this way should not exceed its ability to repay, nor can it overestimate the profitability of the shops, because all kinds of situations may occur when shops are run.

In this way, loans must be written to relatives and friends, to make clear the return date and interest, so as to avoid future disputes.

How to estimate operational efficiency?

Good performance clothing stores are the cornucopia of enterprises or shop operators, and poor performance shops may become the bottomless pit of losses.

It is an important issue for all shop operators to keep their shops profitable.

It should be noted that shops with high turnover are not necessarily profitable. If the cost is too high, even if the business circle, site, products and personnel are first-class, it will not be profitable at the end of the month at the end of the month.

Before opening the store, we need to plan for the future business benefits of the clothing store besides the market, product, business circle, site and personnel.

It mainly includes two aspects: first, the prediction of turnover, such as the number of visitors, per capita consumption, maximum and minimum turnover, etc.

The two is the prediction of financial situation, such as profit and loss balance forecast, cost-benefit prediction, and investment return forecast.

Estimated turnover

Estimated turnover = estimated number of visitors * estimated per capita consumption.

It is estimated that the number of visitors and estimated per capita consumption can be used as reference for similar clothing stores in the same trade area or for different business areas with the same conditions.

Chain stores can be used as reference for other similar stores in the company.

Deducting the cost estimate and possible cost loss from the estimated value of the turnover, if the result is positive, it is higher than the profit and loss balance point, indicating that the shop has the possibility of long-term operation.

Cost estimate

The cost of clothing store opening includes decoration, equipment and management fees.

The cost of clothing store operation includes rents, personnel costs, tax and management fees, utilities, office supplies, interest on loans, and freight costs.

Calculate profit and loss balance point

Profit and loss balance point turnover = total operating cost, gross profit margin.

For example, a brand clothing store has a monthly operating cost of 160 thousand yuan, a gross profit margin of 32%, and its profit and loss balance point turnover: 160 thousand yuan, 32%=50 million yuan.

That is to say, the sales volume of the clothing store must reach 500 thousand yuan per month, which is just to break even.

Or the clothing store's monthly turnover is only 500 thousand yuan or more, otherwise it will lose money.