Opportunity
Problem
There is a need for a fashion boutique that caters to the busy female professional woman who lives in Los Angeles with a household income over $250K. She loves boutique fashions and is looking for a place to shop for services that fit her busy lifestyle. She has money to spend and a job where it is impossible to look good without being successful.
Solution
De Kliek provides services such as Style Assessments (alterations), personal shopping and special ordering to customers by appointment or during store hours.
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.
Competition
Direct Competition
- Fish
- Fred Segal
- Girl and her dog
- Margaret O’Leary
- Dress
- Rabat
- Riki
- Susan of Burlingame
- Grocery Store
Direct Competition:
- Abigail Morgan
- Ambiance
- eLuxury.com
- Her
- The Designer’s club
- Yoya Boutique
- Other LA Boutique Retailers
Why Us
De Kliek provides unique services, including style assessments, alterations as well as personal shopping. Special ordering can be made for customers by appointment or during store hours. Customers can have style consultations with stylists who are professionals in the industry. The boutique’s unique style assessment and emphasis on education in helping women create their own styles will make it stand out.
Expectations
Forecast
- Start-up costs include inventory for the first month, and are estimated at $117K. Finance including working capital includes the owner’s $40K, family members $45K, an SBA loan for $90K and a family investor $45K.
- The annual gross sales are expected to increase from $650K+ the first year to more than $1M by year 3, with 10% coming from customer special orders. These forecasts represent three quarters of average sales for 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
Financing Required
We will need 175000 in order to begin. The owner will lend 45000, the investor will give it 15,000 and there will be a SBA loan of 90,000. The investor will get the loan, and the owner will return it in year 4.
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