Opportunity
Problem
A boutique that caters exclusively to the busy female professional woman living in Los Angeles, with a household income of over $250K, is needed. She loves boutique fashions but needs a place she can get the services she requires. She is looking for a job that will allow her to make a living and dress well.
Solution
De Kliek provides services such as Style Assessments (alterations), personal shopping and special ordering to customers by appointment or during store hours.
Market
According to research, women tend to be stressed and have limited time to shop for clothes. They also want help choosing the right styles and clothes. There are certain to be mistakes when it comes to clothing choices.
Competition
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
- 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. Customers will have the opportunity to speak with Style Concierges, who have extensive experience in the image and fashion industry. De Kliek’s innovative Style Audits and emphasis on helping women find their own style will increase our boutique’s status as a unique boutique.
Expectations
Forecast
- The start-up costs include inventory for your first month and are estimated to be $117K. Financing including working capital is to include the owner with $40K, a family-member investor $45K, and an SBA loan for $90K.
- The company’s annual gross sales should increase by approximately 10%, from $650K+ in their first year to over $1M by the third. These Sales forecasts are approximately three-quarters the average of benchmarked Los Angeles boutiques. Net profits are expected to reach approximately 6% by 2007, with 5% of that going back into growth initiatives.
Financial Highlights Year-by-Year
Financing Required
We will need 175000 in order to begin. The owner will pay 45000, and the investor will give it 40,000. There will also be a SBA Loan of 99,000. The investor and owner will pay the loan back in 4 years.