HOW TO MAKE SMART PURCHASES FOR YOUR KIDS'S STORE: A STEP -BY-STEP GUIDE

The Power of Smart Purchases for Your Business

My father, a born entrepreneur, always used to say, *"Buy well, and you'll sell well."* Back then, it seemed like just a catchy phrase, but over the years, I’ve realized how valuable this concept is, especially because your business journey starts with that first purchase. If you prefer, you can also watch this content in video form.

The Importance of Buying Right

Knowing how to make the right purchases is crucial. Unfortunately, many entrepreneurs starting a business often lack the discipline and focus to buy exactly what was outlined in their business plan. The excitement of launching a new venture leads them to buy anything and everything, including items that don't align with their business's core proposal.

Recently, I advised a follower to avoid bulk buying and instead make her first purchase by selecting individual pieces based on style and size. When she arrived at the wholesale market, she got overwhelmed by the vast options and ended up purchasing unnecessary items for her business. The result? Unsold stock that would eventually need to be liquidated. I’m confident that my students wouldn’t make this mistake!

Key Qualitative Variables for a Healthy Inventory

A few qualitative variables influence the decision-making process when purchasing to create a balanced stock. Keep in mind that the goal is to meet your customers' needs. If this objective isn’t achieved, you won’t be able to generate the profits necessary to thrive in your children's store business.

Answer the three questions below with seriousness and focus, and start planning your first purchase:

1. FIRST VARIABLE - INVESTMENT

What is your investment amount? How much money will you allocate for your inventory?

Once you define the amount, set aside 30% of it for future opportunity purchases. Don’t invest the full 100%, as you’ll need to make replenishments later, and keeping this reserve ensures your cash flow remains intact. Set your initial investment value carefully, keeping in mind that this amount cannot be used for personal expenses, at least for the first year. This initial investment is the foundation from which you'll grow your inventory and multiply your earnings.

With the right purchasing strategy, my students are able to triple their investment in just 4 months using the techniques I teach in my course, *How to Start Your Children's Store from Scratch*.

2. SECOND VARIABLE - WHO AM I SELLING TO?

The *PRODUCT* determines the *PRICE*, which determines the *AUDIENCE*.

By defining your product, you’re also defining the subsequent variables: price and audience. It’s like a tripod, where these three elements are directly connected.

At this stage, define the product range and style for your children's store. The size range in the children’s segment typically goes from newborn (RN) to size 20, and your investment amount (Variable 1) will determine whether you should extend your size options.

If you choose to segment your size range, consider grouping by age: baby line (sizes XS, S, M, L, XL, XXL) and children’s line (ages 1 to 8). Your store’s style will complete its identity, aligning logically with the competitive advantages you want to bring to the market. The key? Sell what you love! Stick to it!

3. THIRD VARIABLE - HOW WILL I SELL?

How will I sell my children’s clothing inventory?

Think about how your sales operations will begin. Why? Because each *DISTRIBUTION CHANNEL* will directly influence your initial stock purchase.

Physical Store: You’ll need variety within your size range. Calculate a minimum of three pieces per size, and adjust your investment based on the range you plan to carry.

E-Commerce: For online sales, it's ideal to have depth within your range, meaning at least three pieces per size for each model. You can also vary the color, but limit it to a few options.

Delivery Bags or Boxes: For this format, variety is crucial. You’ll need at least 12 different pieces in the same size to make a well-rounded delivery package.

Conclusion: Start Smart, Grow Faster

By applying these concepts before making your initial stock purchase, you'll know exactly what to look for, whether it’s children's clothing manufacturers or wholesalers. With this approach, you'll be able to launch your children’s store on the right foot and build a strong foundation for success.

Kelly Galvão

Commercial Management Specialist - FGV