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De Kliek Style Studio

Executive Summary

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 enjoys the boutique fashions and wants a place where she can go to get services that meet her busy lifestyle. She has cash to burn and a job where she can’t get ahead without dressing the part. 

Solution

De Kliek will provide services such as Style Assessments, alterations, personal shopping, and special ordering to customers during store hours and by personal appointments. 

Market

Research has shown that women are stressed, have little time to shop, and would generally like help in determining the right clothes and styles to wear. 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
  • The 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. De Kliek’s innovative Style Assessments and educational emphasis in helping women develop their personal styles will enhance our reputation as a truly unique boutique.

Expectations

Forecast

  • Start-up costs include inventory for the first month, and are estimated at $117K. Financing including working capital is to include the owner with $40K, a family-member investor $45K, and an SBA loan for $90K.  
  • Annual gross sales are projected to grow from $650K+ in the first year to over $1M by Year 3, with approximately 10% from customer special orders. These Sales forecasts are approximately three-quarters the average of benchmarked Los Angeles boutiques. Net profits are expected at approximately 6% through 2007, with reinvestment of 5% for growth initiatives.

Financial Highlights by Year

Chart visualizing the data for Financial Highlights by Year

Financing Needed

We need 175000 to start. 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