Classique Gifts Etc. is proposed to be a sole-proprietorship company operated by Brenda and Charles Gajdik and is a newly established retail store offering unique gifts and elegant collectible dolls.
Located in Lexington, Kentucky, we will cater to special consumers who are interested in finding unique items to supplement their doll collection or finding a gift that cannot be found in the national chain store in the very busy, very congested shopping mall.
We intend to expand our business by carefully building a repeat customer base and provide the products and merchandise they wish to purchase. We feel it is important to offer personal customer support and services to achieve our business philosophy.
Classique Gifts Etc. will begin operation as a sole-proprietorship. The company will be owned by Charles and Brenda Gajdik.
Total current and long-term assets will make up 78% of start-up requirements. Start-up expenses, which are detailed in the following start-up table comprise the remaining 22% at $20,058
As detailed in the start-up funding table, $90,000 with a $10,000 line of credit will be required to fund Classique Gifts Etc. This proposal is to be accomplished as follows:
Details of other start-up expenses include:
Buying trip expenses to Columbus, OH. $133 Buying trip expenses to Atlanta, GA. $430 Internet provider service paid in July, for the Year 1 $120 Total $683
Rent = $9.50/square foot $1425/mo. $17,100/yr. Common Area Maintenance (CAM) = $1.50/square foot $225/mo. $2700/yr. Total Rent and CAM
Slatwall Panels and Accessories 50 panels @ $50 each
Ceiling Tiles 1,400 sq ft @ $.50/sq ft
Carpet with Pad 1,400 sq ft @ 2.50/sq ft
Carpenter Estimate Display Risers and Counter
Newspaper $76/week for 26 weeks (Community Section on Wednesday)
TV Shopping with Santa in the Bluegrass
|Description of Asset||Brand||Quantity||Cost|
|Display Cases and Furniture||various|
|Phone System||Radio Shack||1|
|Office Furniture||Office Depot||desk, chair,cabinets|
|Additional SW and Services||Quickbooks|
|Storefront Channel Sign||Gabbard||1|
|*budgeted amounts||**including annual payroll service|
The most desirable location we have found is in Imperial Plaza Shopping Center located on Waller Avenue. The center will soon be renamed to Waller Center. The property manager estimates that 20,000 cars pass this center daily.
Imperial Plaza: This location has 1,800 sq. ft. and is priced at $9.50 per sq. ft. The CAM expense is $1.50 per sq. ft. and is adjustable and refundable at the end of the year. In other words, if the common area maintenance fund has not been fully used during the year, the remaining portion of the fund will be credited toward the tenant's lease payment.
Approximately 350 sq ft in the back room can be used as work space and storage. The sales counter is adequate but could use some paint. The drop-down ceiling panels need to be replaced. The floor needs carpet and the walls need to have the pegboard panels removed or covered with slatwall. The window display risers are adequate but could use some carpet.
Monthly rent is $1,425 and the Common Area Maintenance (CAM) is $225 for a total of $1,650 per month. However, the owner's representative said he would consider taking less. All appropriate insurance for liability and inventory is the tenant's responsibility. The owner appears to be very flexible and helpful. The start-up leasehold expenses have been based on this property.
Other potential sites we have looked at are as follows:
Southland Drive: The location has 2,000 sq. ft. at the very end of Southland Drive close to Lane Allen Rd. It was previously occupied by Southland Florists, which moved to a new location. The property has been available for about three years. The space is one of 4 or 5 spaces of the same size in a stand-alone building at the end of Southland Shopping Center.
The back room, which serves as a work and storage area, has a bathroom and will need remodeling. The floor will need new tile and some of the walls in back need repair.
There is an office area with a separate ceiling which should be removed for additional ventilation. An additional small room is adjacent to the office and should be removed to provide additional retail floor space.
The retail portion of the property needs the carpet replaced. The sales counter and the display window risers need to be replaced. The front door needs advertising material removed and the walls throughout the front and back need painting. The entire ceiling must be repaired.
The business sign must be flat against the outside surface. The existing sign with a new face can be utilized. However, the signs cannot be seen from Southland Drive because of three very large pine trees blocking the view. Parking is small but probably adequate for these shops.
The rent is $1,800 per month with the first month free for renovation. There is no common area maintenance (CAM) charge. The deposit is $1,800 and is due along with the first month's rent. The tenant must provide the appropriate insurance for liability and protection of his assets. The owner said he would repair the ceiling and walls. The tenant is responsible for all other leasehold improvements.
This space will need considerable leasehold improvements. An existing tenant next door is not happy with the owner or her current situation and has only been in the location for six months.
Chinoe Center: The location has 2,280 sq ft in an upscale strip center with a mix of office space and retail outlets anchored by Kroger Supermarket Grocery Store. The property is located next to Kroger and with the right sign will receive a tremendous amount of visual advertisement exposure with the Kroger traffic. However, there is no display window, which explains the relatively inexpensive rent and CAM expenses. We have not seen the inside space.
The door leading to the space is located between a carryout Pizza store and Kroger. The door leads to a hallway about 25 to 30 feet long into a space which turns into three separate oddly shaped rooms. The space was previously used as a modern dance studio.
The space is priced at $8 per sq ft and $1.65 per sq ft CAM fee. That is $1,833.50 per month. The tenant assumes full insurance responsibility for inventory and liability.