Opportunity
Problem
A boutique that caters to professional women with more than $250K in household income is required. She likes boutique fashions, and she wants to be able to access services that suit her busy lifestyle. She is looking for a job that will allow her to make a living and dress well.
Solution
De Kliek offers services such as Style Assessments and personal shopping to customers in-store and via personal appointments.
Market
Research shows that women are busy, often have little time and don’t know what to buy and they need assistance in choosing clothes. With over 61 million U.S. women between the ages of 25-54 spending over $34 billion in apparel each year, there are sure to be some mistakes made in clothing choices.
Concurrence
Direct competition:
- Fish
- Fred Segal
- Girl and her dog
- Margaret O’Leary
- Dress
- Rabat
- Riki
- Susan of Burlingame
- Grocery Store
Indirect Competition:
- Abigail Morgan
- Ambiance
- eLuxury.com
- Her
- The Designer’s Club
- Yoya Boutique
- All other LA Boutique Retailers
Why Us?
De Kliek is different because it provides services the others don’t such as: style assessments, alterations, personal shopping, and special ordering to customers during store hours and by personal appointments. Style Concierges who are trained within the image industry will be available to customers on a daily basis. Our boutique’s reputation for being unique will be enhanced by De Kliek’s innovative Style Assessments. We also place a strong emphasis on helping women to develop their individual styles.
Expectations
Forecast
- The start-up costs include inventory for your first month and are estimated to be $117K. Finance including working capital includes the owner’s $40K, family members $45K, an SBA loan for $90K and a family investor $45K.
- With approximately 10% of customer special orders, annual gross sales will grow to $1M+ by Year 3. These Sales forecasts are approximately three-quarters the average of benchmarked Los Angeles boutiques. Net profits are expected in the range of 6% to 2007, with a maximum of 5% being reinvested for growth initiatives.
Financial Highlights Year-by-Year
Need to Finance
We will need 175000 in order to begin. The owner will give 45000, an investor will give it 40,000 and there will be an SBA loan of 90,000. The loan and the investor will be paid back by year 4
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