Texas is the second largest and second most populous state in the US. Spread over an area of 268,820 square miles, the state has a population of more than 26.9 million residents and is home to some of the largest cities in the country, including San Antonio, Houston, Austin, Dallas–Fort Worth, Greater Houston and El Paso.
While cattle is a thriving industry in Texas, the state also leads in several other industries, such as aerospace, agriculture, electronics, energy and computers. The US fashion industry is the largest in the world and is worth more than $311 billion (28% of the global total). As one of the largest states, Texas proves to be an ideal location for entrepreneurs to start a fashion shop.
The location of your business can play a huge role in its failure or success. Ideally, the property you choose should be located in a larger area and the surrounding businesses have to be somewhat related to what you are selling.
Texas is home to several major commercial districts, especially when it comes to Houston and Austin, where various financial institutions and multinational businesses are headquartered. The country’s second shopping mall is located in the Dallas–Fort Worth area, which houses several high-end fashion stores for both women and men.
Remember you should aim to be convenient to your customers, so that you can maximize customer traffic. Hence, spend time in areas you think could work for your fashion store. This will give you the opportunity to observe the number of people that shop in the area. Once you have found a location that interests you, investigate the space thoroughly before leasing or renting it.
Obtaining a Legal Status
The legal business structures in Texas are as follows:
- Sole Proprietorship
- Limited Liability Company
- General Partnership
- Registered Limited Liability Partnership
- Limited Partnership
While you would prefer operating your fashion shop as a partnership or sole proprietorship, you should consider a limited liability company or corporation instead as it protects you from personal liability. Running a fashion shop isn’t a dangerous business, but there is always the possibility of a person getting injured, or their property getting damaged on your premises. In this case, you would want the business, and not you, to take responsibility for the liabilities.
Although there is no state income tax levied in Texas, there are a number of business taxes that you will have to pay. These include:
- Federal Tax
- Employment Tax
- State Tax
- Sales Permit Tax
State & Municipal Licenses and Obligations
A general business license is not required by the state of Texas. However, a number of regulatory agencies have permitting and licensing requirements based on the products, or service associated with your business venture. To ensure that you meet all the permitting requirements, consider contacting the city and local county governments to determine if there are any additional requirements that need to be met.
It’s obvious that you will need to hire some front-line staff and sales persons to keep your fashion shop running smoothly and efficiently. Sales representatives earn an average of $43,126 annually, making Texas the highest-paying state for a sales job. Customer representatives, on the other hand, earn an average of around $43,000. Moreover, it’s important to note that minimum wage rate of Texas is $7.25 per hour, so make sure you don’t go below that threshold.
There are a number of laws in Texas that have an impact on the hiring procedures. It’s important that you keep these laws in mind while developing and implementing an effective hiring process, so that you don’t have to encounter any problems. Learn more about these laws here.
Popular Clothing Styles
Once you have managed to pass all these hurdles, it’s time to decide the kind of clothes you want to offer to your customers. While Texas is renowned for its cowboy image, it’s also very modern and up-to-date with the latest fashion trends and styles.
Inventory Ordering & Management
To ensure your fashion shop is well-stocked throughout its operating hours, it’s imperative that you have a proper inventory ordering and management system in place. Though this can be done manually, with the help of an inventory manager, you should consider getting advanced software to streamline this process.