Vintage Store Business Plan – Lean

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Proposition

541 Vintage excels in curating a carefully curated selection of vintage apparel that is available in-store as well as online. We offer clothing that isn’t commonly found in the fast-fashion industry. This allows people to express their individual style. This allows our customers to save money and reduce waste while still looking great.

The Problem

Eugene offers a few shopping options in the resale market, but many consumers complain about the overwhelming number of low-quality or overpriced options available. It can be difficult to navigate through the stores.

The Solution

Vintage clothing, accessories, belts and bags are all included in this carefully curated collection. Our aim is to provide unique and unusual items at affordable prices. We also offer superior customer service, which brings us consistent customers.

Target Market

The 541 Vintage’s primary market is young adults who are looking for unique and well-made clothing at a reasonable price. Common characteristics include:

1. 
   Interest in fashion, collection, and design.
   
2. 
   You want to stand out from all the others.
   
3. 
   Interested in vintage items for a bargain?
   
4. 
   We want to encourage resale, sustainable fashion.
   

A secondary target market are shoppers who enjoy hunting for treasures or bargains.

Competitors & Differentiation

Alternatives

• 
  A number of chain thrift stores (St Vincent de Paul’s Closets, Buffalo Exchange, Plato’s Closet),
  
• 
  A few locally owned vintage clothing stores (Eugene Jeans, N.E.S.T. )
  
• 
  High end vintage furniture/clothing thrift stores (Oak Street Vintage).
  
• 
  Vintage clothing thrift shops online (Mercari, Etsy and eBay)
  

Why Us?

With each passing year, clothing waste increases. Gleichzeitig, many people end up buying clothes that are:

1. 
   Seen from other people
   
2. 
   Made of lower quality and built cheaply
   
3. Contributes often to poor working conditions of marginalized communities across the world.

When you buy recycled items, it means that fast fashion pieces can stay out of the trash while you are wearing authentic vintage clothes. The 541 store has a large selection of carefully selected items, both online and in-store. Vintage has history, vintage has character, and vintage is synonymous with quality.

Financing Needs

For 700 square feet, the rent for the Willamette/East 7th target area is $14.61 SF/YR. Rent is calculated at $9900 per year and $825 monthly, including utilities and janitorial. Remodeling retail space will be funded with $5,000. The initial inventory price will be $15,000. The marketing expenses for the startup of the business amount to approximately $2,000. Initial operational costs for 1 Year, including bills, employee salaries, etc. amounts to $25,000.

It takes $56,900 to start.

Sales Channels

1. 
   Retail location
   

2. 
   Website
   
3. 
   Instagram
   
4. 
   Google Ads
   
5. 
   Facebook
   


Marketing Activities



1. 
   Google Ads
   
2. 
   Insta
   
3. 
   Facebook ads
   
4. 
   Affiliates/Influencers
   
5. 
   
   
6. 
   Blogs/Newspaper
   
7. 
   Flyers/Signage
   


Financial Plans




These expenses include employee salaries, taxes, advertising, utilities, and insurance. Maintaining a consistent flowing inventory will be a significant cost to keep the store running effectively. Advertising expenses, which include website maintenance and paid ads, will be a consistent expense.



Revenue:



• 
  2023: $65,000
  
• 
  2023: $74,000
  
• 
  2024: $87,000
  


Expenses/Costs:



• 
  2023: $56,900
  
• 
  2023: $60,000
  
• 
  2024: $70,000
  


Profit:



• 
  2023: $8,100
  
• 
  2023: $14,000
  
• 
  2024: $17,000
  


Milestones



• 
  Register for the required permits and licenses by August 1, 2023
  
• 
  Renovating — August 21st, 2023
  
• 
  Install racks or shelves for merchandise — August 25, 2020
  
• 
  Add initial stock to your store inventory August 27, 2023
  
• 
  Take professional pictures of the space — August 31, 20,23
  
• 
  Create website, social media, or google/yelp account — September 1, 2023
  
• 
  Interviews and initial hire of employees. September 5, 2023
  
• 
  Now Open — September 15, 2023
  
• 
  Google/Yelp forecast — November 1, 2023
  
• 
  Create a relationship tree with vintage clothing suppliers — December 15, 2023
  
• 
  Add a pop-up stand to the farmer’s markets — March 15, 2023
  


Team and Key Roles




Owner/Manager




Sales Associate/Cashier




Assists owner with vintage clothing purchases and identifying items for sale. Maintaining a clean and orderly sales floor by operating a POS system. You are responsible for creating and maintaining displays/tags for merchandise, stocking new inventory, and tracking it.



Partnerships & Resources




These partnerships will allow 541 Vintage to be more visible in the market they are targeting and increase its share of the local market for vintage items. This will enable 541 Vintage to continue expanding its inventory, which will ensure that it has a unique and top-quality collection of vintage items.


• Donation-based stores: Using Goodwill and Saint Vinnies as a resource to find quality vintage clothing to then resell.
• Estate sales: Establish relationships with local estate selling companies
• Student Organizations Find organizations with a strong desire to fashion and/or sustainability, and send flyers to them.
• University of Oregon Students Students with valid ID will receive a discount.
• Creation Of 541 Vintage Fashion Show Allows local fashion designers/artists show their works and have access to 541 Vintage stock.
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