In 1913 she opened up her first milinary store. There she diversified into selling a range of fashionable raincoats and jackets too. The store, which was situated in the heart of Paris, went out of bussiness soon afterwards and she was asked to surrender to properties.
However this setback did not deter Chanel. If anything it made her more determined.
Just before the World War I she met a former friend of Balsan, Arthur "Boy" Capel, an English industrialist, and started a relationship with him. It was him who loaned her the money and assisted her to open up her second milinary shop in Britanny . . The two men, Balsan and Capal helped her find customers among the women of society. Her hats were worn by popular french actresses of the day, which helped to establish her business In 1913 she opened another store in Deauville from where she launched women's sport wear. Countess de Gounaut-Biron was her first aristocratic client. By this time the war has started. During this time the notion of dressing for themselves and not their men started spreading among men.During the World War I she served as a nurse for a short period. Capel died in an automobile accident in late 1919, which is said to be the most devastating event of Chanel's life.