Boutique owner salary: how much do they make?
Tue Mar 23 2021
Coffee & cornetto
Is fashion your passion? Do you love providing clothes that make people look and feel beautiful?
If you want to turn your passion into a career, consider owning a boutique store. But before you venture onto a new career path, you may be wondering how much money the average boutique owner makes each year.
Here’s what you can expect to earn as a boutique owner.
The sky is the limit
Owning your own boutique means that you are your own boss and that there’s no set salary. Your salary depends on all sorts of factors, including how much inventory you sell, your revenue, and how much you decide to pay yourself.
While it can be scary to not have a set salary, it’s freeing to have the ability to ultimately decide how much money goes into your pocket.
At the end of the day, owning a boutique is what you make of it. As with any type of small business, there’s a high potential for reward. But be aware that with high reward comes high risk.
Because you are your own boss, you decide what you’re worth and how much you should get paid. If your boutique is bringing in revenue and profit each month, your salary should be quite healthy. The opposite is also true: no profit, small salary.
Without a guaranteed salary or hourly rate, it’s even more important to put your heart and soul into your business. Create a business plan. Map out your finances, to include cash streams and taxes.
How much do boutique owners make?
It should come as no surprise that there’s a wide range for how much a boutique owner makes each year. According to Payscale, as of October 2021, the average retail store owner makes $50,244. However, the salary band ranges from $28,000 to $123,000.
So why is a boutique owner’s salary so varied? How much money a boutique owner makes depends on many different factors, including:
Expenses (ie. rent, managing inventory, etc.)
Number of sales
Time in business
A boutique located on a street with heavy foot traffic is likely to bring in more money than one on a quiet street in a small town. It’s also worth noting that all businesses ebb and flow. For example, if your boutique sells seasonal clothing, your sales volume will change based on the time of year.
Because profit margins are thin, boutique owners typically need to sell a high volume of merchandise to bring in profit. One way to improve your margins is to find low-cost wholesale vendors. Knowing how to find clothing vendors can have a positive impact on your profit margins.
Is owning a boutique profitable?
Yes! With enough hard work and dedication, owning a boutique can be profitable. Be aware that it may take a few years to see notable profits, but the key to owning any business is to be patient and persistent.
Money is just one part of the equation
Once you know how to start your own boutique, it’s all too easy to get stuck on the financial side of things. However, there’s a lot more to starting and running a boutique than just money.
Some people start their own boutique store because they have a deep love of fashion. Others do it because they want the freedom that comes with owning their own business and the entrepreneurial lifestyle.
Don’t just open a boutique for the sake of making money. It’s crucial that this type of career path is something that you have a love and passion for. When you feel deeply connected to your business, you’re more likely to stick it out through the good and bad.
When will my boutique start making money?
Be aware that it will take time for your boutique to start making money. In fact, most studies have found that it takes a business around 2-3 years before it’s profitable. This means that you shouldn’t expect to turn a profit for at least a year.
On the other hand, it’s possible that you open your boutique and business starts booming immediately. However, this doesn’t happen often, which is why it’s important to be patient.
Before opening a boutique, make sure that you’re in it for the right reasons. You need to be passionate about your industry and the idea of being an entrepreneur. It’s also important that you’re dedicated and willing to stick it out through the tough times.
If possible, continue to work your day job when you first open your boutique. This way you still have a reliable stream of income until your store starts to bring in money. Maintaining your current job makes the switch to entrepreneurship a lot less stressful.
At the end of the day, you’re in control of your boutique’s future. be patient, stay committed, and keep your eyes on the prize.
If you want to own a boutique, check out the many items we have on our site! They could make your store more attractive.