Overview
De Kliek Style Studio is an upscale women's clothing boutique that will open in July this year. De Kliek, which means "the clique" or "circle of friends" in Dutch, defines the boutique and its essence of inclusion. De Kliek's clothing selections and exclusive personal style services, which include a detailed Style Assessment, will ensure that our customers are well dressed. De Kliek is a woman-owned business currently organized as a Sole Proprietorship.
Clothing for stylish women
De Kliek will carry Ready-to-Wear (RTW) designer and casual/contemporary apparel & accessories for women, and will be the exclusive U.S. home of the German line, Herr Frau. In addition to the fabulous Herr Frau line, De Kliek will feature other choice selections by American and European designers such as Hocken, Weekend MaxMini, Tosca and Catherine the Great. The De Kliek customer is a busy professional woman who lives in Los Angeles with a household income over $100K. She enjoys the boutique fashions and wants a place where she can go to get services that meet her busy lifestyle.
Unique & innovative
De Kliek will provide services 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.
Getting the word out
De Kliek will generate awareness and sales by utilizing PR tactics and the referral networks of personal stylists. Additionally, De Kliek will meet our customers where they are, focusing on how women approach shopping by obtaining mentions and reviews in the top fashion publications, travel guides and local papers.
Management
With over 12 years experience in marketing and retail, owner Vrootje Magen has gathered the expertise to complement and grow the business. Our advisory team holds expertise in retail accounting, retail merchandising, legal contracts, fashion and design. A detailed project plan has been created and all tasks are on schedule. Buying for the Fall/Winter season was completed in April, and store design and marketing elements are currently being finalized.
Finance
- Start-up costs include inventory for the first month, and are estimated at $132,700 of which the owner will inject 31.4%. Current owner investments are documented at approximately $41,700, of which $12,700 is in savings and checking. An additional injection of approximately $8,700 will occur by July 15 of Year 1.
- Annual gross sales are projected to grow from $513,000 in the first year to over $600,000 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.
- De Kliek will hold Cost of Goods Sold at roughly 39% of sales revenues; we intend to maintain this approximately 61% markup throughout the next five years.
- Due to the demand for up-to-date fashions, inventory turns are projected at 5, which is higher than the industry average of 4.
1.1 Mission
- To provide women with a boutique that offers a comfortable and approachable environment
- To showcase quality, well-constructed fashions from prominent and cutting-edge designers
- To offer a variety of beautiful and high-end fashion accessories
- To help women learn what clothing and styles go best with their unique personalities
- To generate buzz and sales through top-notch exclusive services
1.2 Keys to Success
- Having a good location in a high-shopping area
- Quality product and good relationships with vendors
- Outstanding customer service
1.3 Objectives
- To turn inventory five times and generate $800 in sales per square foot
- To maintain profit margins at 15-20% through close attention to expenses and cost of goods sold
- To drive awareness and build sales through mentions in both local print and the nation's top fashion magazines
