Retail Clothing Business Plan

1.0 EXECUTIVE SUMMARY

1.1 COMPANY

Booming Boutique is a start-up retail establishment that will sell fashionable clothing to women
of the Baby Boom generation. Booming Boutique will be located in downtown Pleatsville,
Florida, which is a popular retirement and tourist destination. While our initial goal is to open
one boutique, expansion plans include potentially franchising our retail store and/or building a
well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the
online retail market.

1.2 PRODUCTS & SERVICES

The fashion and retail industry tends to be overly youth focused. However, by closely following
generational fashion trends as well as our own customers' purchasing preferences, we will tailor
our inventory to meet the specific needs of our clientele. We will solely focus on the our styles,
colors and fits to flatter the lady Baby Boomer/ Meeting the needs of her figure will be our
specialty.

1.3 MARKET ANALYSIS

The total sales reported in the U.S. retail industry in 2007 (including food service and
automotive) exceeded $4 trillion. There are roughly 75 million Baby Boomers, half of which are
women. In Pleatsville, the current population is just fewer than 40,000. 54 percent of the total
population is women who have a median age of 48. The median income is $48,600. We will
initially seek customers locally, but will increase our reach as we build our brand and secure
our image.

1.4 STRATEGY & IMPLEMENTATION

Booming Boutique recognizes the importance of marketing. And to that end, we plan to
promote our retail business with an ambitious, targeted marketing campaign, which will
include a grand opening event, local media coverage, print advertising and a direct-mail
campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual
sales, and we will partner with local organizations such as the Chamber of Commerce and
Downtown Merchants Association as often as possible.

1.5 MANAGEMENT
Robin Mathews and Joanna Jensen are co-owners and will co-manage Booming Boutique.
Mathews has worked ten years in the retail industry, including four years as the manager of an
antique furniture shop. She earned a BA degree in finance from Britannica College in Tampa,
Florida.

Jensen’s experience lies in the fashion industry. She’s worked with designers, wholesalers and
retailers for roughly 20 years. Jensen holds a BA in fashion merchandising from Colliers Fashion
Institute in Miami, Florida.

1.6 FINANCIAL PLAN

Our company will earn revenue from our customers' purchases of our products. Booming
Boutique’s first-year income statement illustrates a profit margin of at least fifty-two percent,
with a net income of $44,075 per month - after taxes. Finally, we have determined our break-
even point will equal no less than $15,500 in total monthly sales. We project our annual profits
to reach $380,000 by year three.

Our company will generate revenue from the retail sale of clothing and other merchandise.
First year sales are projected at $285,000, and we expect sales to surpass $525,000 by the end
of year three. We will achieve month-to-month profitability within the first year.

1.7 SOURCES & USE OF FUNDS

Booming Boutique requires $282,000 to launch successfully. We’ve already raised $62,000
through personal investments and a small community grant.

We are currently seeking additional funding from outside angel investors and business loans.
Start-up funds will be used for renovations, inventory and operating expenses such as rent,
utilities and payroll. Further, our initial investment will also be used to purchase retail
equipment and inventory software - all of which will produce future benefits for the company.

2.0 COMPANY
2.1 COMPANY & INDUSTRY

Booming Boutique will be located in downtown Pleatsville, Florida. Our company is a retail
establishment selling fashionable women's clothing to up-and-coming Baby Boomer retirees.
Our business operates within the retail industry and is classified under NAICS code 448120 –
women's clothing stores.
2.2 LEGAL ENTITY & OWNERSHIP

Booming Boutique is a multi-member Limited Liability Corporation formally organized in

Florida. Robin Mathews and Joanna Jensen are the company's principle owners. We hold equal
shares of ownership in the company.

2.3 COMPANY HISTORY TO DATE

The Company is a new business aimed at providing women of the Baby Boom generation stylish
clothing options to buy and wear. As the company's founders and as Baby Boomers ourselves,
we found that Florida’s current boomer-wear market is missing the mark. In fact, most clothing
shops for the 55+ set are still selling clothes that our grandmothers would have worn. As our
local population ages and more Baby Boomers reach retirement-age and migrate to Florida, we
recognize the need for a shop that caters to the up-beat, fashion-forward Baby Boomer
generation.

2.4 FACILITIES

Presently, Booming Boutique does not have a bricks-and-mortar location. However, we have
identified an ideal spot in the downtown district of Pleatsville. The gorgeous area includes
numerous restaurants, an art gallery, coffee shop, candy store and a picturesque park in the
town square. We have signed a three-year lease for a 1,700 square foot building at $13 per
square foot. Comparable properties are renting for $12-18 SF/Year.

Working with the property owner and the City of Pleatsville Downtown Redevelopment
Committee, we have secured a $1,000 grant to beautify the façade of the building to include
painting, signage and a new awning. Only slight internal renovations will be required - such as
the installation of dressing rooms and decorative items.

When considering the addition of wall mounts for merchandise, multi-level clothing displays as
well as creative floor planning, this facility is large enough to support future growth.
Additionally, we will be able to conduct all aspects of our business from this location. This
includes deliveries and shipments, inventory management and administrative duties such as
finance, buying and marketing.

2.5 KEY ASSETS

Our key assets are our co-owners, Robin Mathews and Joanna Jensen, who bring tremendous
experience and relationships to this business.
Once Booming Boutique is launched, our primary asset will be our brand, which will convey
style, quality and a great shopping experience. In the long term, it is this brand that will
separate Booming Boutique from other retailers both locally and nationally.

3.0 PRODUCTS OR SERVICES

3.1 DESCRIPTION

Booming Boutique will sell a combination of widely recognized name brands as well as clothing
lines from select fashion designers. We will closely follow generational fashion trends as well as
our own customers' purchasing preferences. Moreover, we will tailor our inventory to meet the
needs of our “boomer” clientele. Solely focusing on the styles, colors and fits to flatter the
female Baby Boomer's figure will be our specialty. While apparel, such as business clothing,
casual wear, jeans and formal wear will be our main staple, we will also offer some accessories
such as belts, scarves, and hats.

Profits will be earned via the sale of our merchandise. Our pricing structure will remain
flexible, as we will implement suggested retail pricing on common brands as well as the
standard practice of keystoning prices. Additionally, we will utilize a value-based pricing
structure, which measures the value of our products to our customers such as easy access,
quality, customer service and styles flattering to our target consumer. End of season sales,
holiday and overstock sales, multi-buy savings and promotional coupons will be implemented at
strategic intervals.

3.2 FEATURES & BENEFITS

One key feature that separates Booming Boutique from all other local boutiques and chain
department stores in the area is our commitment to providing women of the Baby Boom
generation stylish, quality clothing options. Because our primary concern will be ensuring our
consumers are happy with the fit and style of their purchase, we will provide products tailored
to all shapes and sizes of women. In addition, we will make every effort to have petite and plus
size versions of our merchandise in stock. If they are not in stock, ordering them will be easy,
cheap and efficient.

Further, Booming Boutique will not just be a store that sells clothes. Our clientele will benefit
from an experienced, knowledgeable sales staff. Out of the gate, our goal is to implement a
superior customer service system. Beyond our friendly reception and an inviting atmosphere,
Booming Boutique will also offer customers fashion information and advice. Our trained
personnel will provide counsel that women simply cannot find at other clothing stores. The
service will be likened to a beautician who offers advice on what hair styles best complement
 his/her client’s face. Our hip and qualified fashion-industry expertise will ensure our customers
walk away with the perfect outfit.

3.3 COMPETITION

In Pleatsville, there are no direct competitors offering our unique services or targeting Baby
Boomers specifically. In the Downtown District, the shops most closely competing with Booming
Boutique are as follows:

• EcoWise Boutique, which targets a younger demographic and specializes in natural

fiber clothing. They also carry local art and jewelry.
• Caddy Corner Kids, which targets parents shopping for children, specializes in children's
clothing, accessories and toys.
• Kati Kouture, which targets younger women, specializes in offering industrial chic
clothing with "classic lines and a punk gothic edge."
• Marjorie Joe's Fashion & Gifts targets older women within our target demographic, but
specializes in the more homemade, old-fashioned style clothing.
• Petal Place Boutique targets women within our target demographic as well, but they
specialize in an affordable, folksy style of clothing with handmade shawls and embroidered
shirt sets.
• Second Time Around targets women and may overlap our target demographic slightly.
However, they specialize in consignment clothing.

There is one super-store within a 60-mile radius of Pleatsville. The store is similar to Wal-Mart
in that it sells lesser quality items at lower price. But there are two chain department stores.
They sell men's, women's and children's clothing along with home accents, electronics and
appliances. While familiarity is comforting, industry research indicates increasing frustration
with the inferior quality, sub par customer service and vastness of super-stores. Not to
mention, the inept sales staff and lack of selection often found at department stores.

3.4 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY

To date, our primary competitive advantage is the absence of any store like ours in the
Pleatsville area. In addition, company co-owner, Joanna Jensen, has worked in the fashion
industry for more than 20 years. Her experience includes working with apparel retailers,
clothing wholesalers, garment manufacturers, and fashion designers. She understands the
fashion industry and knows how to spot the latest trends.
While there is no guarantee a competitor will locate within our area, we have no doubt in our
fashion sense, outstanding customer service and quality products. In turn we will quickly
establish Booming Boutique as the place for lady Baby Boomers to shop.

Also, we would be the only niche fashion retail-store for hip, older women. While other stores
offer some style equivalents, they are not focused solely on the baby boomer generation. We
are, and therefore, have a distinct competitive advantage in our niche.

Our supplier relationships and exclusive product offerings will prevent future competitors from
entering the market as a competitor. Also, it takes time to build a retail store, and by the time
a competitor attempts to compete with us directly, we will have already established a strong
customer base.

3.5 DEVELOPMENT

As our company grows and our boutique earns a positive reputation, several opportunities will
open to us. And we are considering some options already. Should we choose to remain a small
local boutique, we will develop and grow our company by increasing existing clothing lines and
expanding our selection to include additional products such as swim wear, lingerie, or
sportswear. Within five years, we will assess the potential for franchising our stores in select
locations.

Additionally, as we build our business, we plan to simultaneously develop an online Booming

Boutique. The power and ease of an online storefront is obvious to us, and we plan to develop
one quickly and efficiently. We also see the potential for regional and/or national expansion at
some point.

4.0 MARKET ANALYSIS

4.1 TARGET CUSTOMER

Booming Boutique is a business-to-consumer retail company. Female Baby Boomers are our
clear target customers. However, we do realize that we will likely attract some younger
women with our peripheral products (handbags, scarves, etc.). Moreover, we expect a portion
of our products to catch on with the younger generations. It’s important that we do not offer
products that are exclusive to the older audience.

Having said that, there are currently about 75 million Baby Boomers living in the United States.
A boomer is better described as the generation born between the years 1946 and 1964. About
half of this population is women.
 While those born in the 1940's are still slightly more conservative, those born during the 1950's
and 60's were trailblazers and trendsetters. Specifically, these will be the women we target
vigorously with our marketing and offerings. These women range in age from their mid 40's to
late 50’s. They value uniqueness, convenience, service and quality. As they retire, price does
become a factor in decision-making. At the same time, they were always a generation of the
“buy now and pay later” philosophy.

4.2 MARKET SIZE

Pleatsville accommodates a robust retail market. While car dealerships, grocers and home
improvement retailers account for a sizable portion of the retail market, the main local
shopping district is downtown. With tree-lined streets and quaint shops and restaurants, the
downtown retail district is the social and shopping hub of the community. The current
population of Pleatsville is just fewer than 40,000. 54 percent are women who have a median
age of 48. Their median income is above the national average at $48,600. Moreover, according
to National News, Pleatsville is one of the 2008 Top 6 Towns to Retire for Baby Boomers. Many
of these retirees are looking to retire on the water in a cozy, yet thriving community.

In addition to local consumers, we will also benefit from tourist traffic. Pleatsville is located a
mere 30 miles from the sandy white beaches of St. Petersburg and Clearwater. It’s also within
close proximity to many Tampa and Orlando area attractions. Our town boasts a healthy and
recession-proof tourism industry. In addition, Pleatsville hosts several annual craft and golf
events, which bring several thousand of our target consumers into the area each year.

4.3 TRENDS

The retail fashion industry is a solid business with ever-changing styles and ever-present
consumer demand. While supercenters and megastores ruled the past two decades, more and
more consumers are looking for change. They’re searching for a more serene and customer-
friendly shopping experience. This is true especially for those nearing retirement age. In
reality, as the Baby Boomers numbers decrease, there will be fewer older Generation X-ers to
sell to. However, this market decrease will not occur for at least twenty years. Even then,
clothing will always be in high demand. The fashion industry in America has been thriving since
the advent of moving pictures.

4.4 SWOT ANALYSIS

Strengths

• Experience and understanding of the fashion industry

• Unique shopping experience with exceptional customer service
• Great downtown location
• Large and growing consumer base

Weaknesses

• Untested market in Pleatsville

• While market is large, it is a niche market (Baby Boomers)

Opportunities

• Outstanding shopping experience will lead to repeat business

• Growing online Booming Boutique
• Establish a Booming Boutique clothing line

Threats

• Cost and effectiveness of marketing to women “Baby Boomers”

• New retail shops that may or may not open in the future
5.0 STRATEGY & IMPLEMENTATION
5.1 PHILOSOPHY

Our company's core business strategy is to combine exceptional and knowledgeable customer
service with quality stylish merchandise. And n turn, we’ll provide an enjoyable shopping
experience for our customers. Booming Boutique's mission is to offer women of the Baby Boom
generation a wide selection of fashionable, figure-flattering clothing. Our aim is to establish
our company as a pioneer in this youth-obsessed industry and build a boutique brand name that
will be synonymous with the fashion industry revolution.

5.2 PRODUCT DEVELOPMENT

We are currently working with several apparel wholesalers, garment manufacturers and two
freelance fashion designers to assemble our inventory. We are also working with city economic-
development officials to secure all required permits and occupational licensees. Once financing
is secured, we will move ahead with the façade renovation, which will be paid for via the
PDRC, as well as purchasing inventory, retail displays, and office supplies. Prior to the grand
opening of Booming Boutique, we will schedule an event with the Chamber of Commerce and
commence with pre-publicity flyers, advertising and additional marketing activities.

5.3 INTERNET STRATEGY

As the Internet has become a staple of American life and retail merchandising, Booming
Boutique will have a viable Web site. We have secured the domain name BoomingBoutique.com
and will begin site development as funds become available. Further, we plan to hire an
established Web designer that will accept modest pay in exchange for future profit-sharing.
Foremost, we intend to showcase our brand, our clothing and provide customers with the
ability to purchase items online. As the site progresses, we will include features such as fashion
advice, designer interviews, newsletters, and Internet-only specials. Eventually, we hope to
establish and nurture an online social community where women can gather and discuss topics
of the day, network and share clothing secrets.

5.4 MARKETING STRATEGY

We both have strong marketing backgrounds and recognize the significance of effective
marketing. We expect our strategy to draw consumers into Booming Boutique from the very
beginning. Moreover we will hire a local PR firm to help us develop and implement a strategic
marketing plan and guide our publicity efforts in a cost-effective manner. Our marketing
message, logo and slogans will revolve around the idea of the Baby Boom generation as
revolutionaries and trend setters. Boomer women are in their prime and at their best, meaning
these women deserve to be recognized as a force within the fashion industry.

Our goal is to keep our marketing budget to no more than 5% of our gross annual sales. We will
partner with local organizations such as the Chamber of Commerce and Downtown Merchants
Association as often as possible. We already have connections in all the necessary places.
These strategic partnerships will allow us to piggyback on publicity for local events, as long as
they are within our targeted demographic. Booming Boutique's initial marketing efforts will
remain local as we establish a presence in our community. These will rely heavily on local print
and broadcast media coverage, traditional advertising, signage, a direct mail marketing
campaign and networking. A significant portion of our advertising budget will be allocated to
print and broadcast media.

Of course, we will build anticipation and excitement about the new boutique prior to its grand
opening. Working in conjunction with the Chamber of Commerce, we are already talking about
a grand opening soiree. This will include hors d'ouvres donated by the bistro across the street
and a silent auction of a local artist's painting collection. The collection is currently on display
in the Downtown Art League Gallery.

We will also hold a drawing for a $100 shopping spree and fashion consultation. Entry collection
will start at the grand opening and continue throughout the week. Names and contact
information will be utilized for follow up marketing initiatives. The Chamber of Commerce and
the Downtown Merchants Association will promote the event in local newspapers and radio
advertising. Comprehensive advertising and semi-annual direct mail marketing campaigns will
follow the grand opening. Low cost publicity activities will also be taken advantage of such as
posting sale flyers on community bulletin boards and online.

Finally, marketing opportunities will be continually utilized as we expand our business and our
consumer numbers grow.

5.5 SALES STRATEGY

Booming Boutique plans to generate sales via strategic marketing efforts. These concentrated
efforts will be targeting new and returning customers as well as single-visit tourist consumers.
We will also implement a referral program rewarding customers who refer new customers with
discount coupons. Following our grand opening, we will conduct a direct-mail campaign to
targeted consumers that we have signed up through our in-store mailing program. The direct
mailers will be comprised of 5,000 full-color postcard mailers. Each will include at 10% coupon.
We will offer promotional discounts and seasonal and clearance sales throughout the year.

Booming Boutique will accept cash and payment via major credit and debit cards. Cash layaway
plans will also be permitted. Returns and exchanges must take place within 30 days of purchase
and receipts are mandatory.

Our sales staff will include both co-owners and 2-3 part-times sales associates. Combined,
Jensen and Mathews have nearly 30 years experience in the fashion and retail industries.
Comprehensive training will be provided to each sales associate – to include selling
merchandise as well as how to provide fashion advice to customers. Our sales team will earn an
hourly rate, plus a generous percentage of commission from each sale.

5.6 STRATEGIC ALLIANCES

Booming Boutique plans to join the Pleatsville Chamber of Commerce as well as the Pleatsville
Downtown Merchants Association. These organizations are dedicated to promoting local
businesses within our community and sponsor several events downtown each year. As a member
of these organizations, Booming Boutique will gain exposure, make business contacts, and will
benefit from Chamber and Association advertising, Web site promotions and events.

5.7 OPERATIONS

As a retail establishment, Booming Boutique will conduct business seven days a week from 10
a.m. to 6 p.m. Monday through Thursday, from 10 a.m. to 8 p.m. Friday and Saturday, and 12
 p.m. to 6 p.m. on Sunday. During the holiday seasons and during special events, store hours
will be extended. At this point, the retail store will take require approximately 2/3 of the
building's available space. The remainder will be utilized for stock and administrative purposes.
In addition to the two full-time co-owners, three part-time employees will be hired to serve
customers.

Our company will secure merchandise from local manufacturers with showrooms in Orlando and
Miami. We’ll also have access to the Florida Apparel Market, which is the largest wholesale
merchandise warehouse in the state. Purchasing from FAM, buyers receive product displays and
promotional materials with purchase. Additionally, we will work closely with our regional sales
representative. We will also attend relevant pre-season fashion trade shows.

To control costs, track inventory and manage stock levels, an inventory control system will be
set in place. This will include the standard bar code with its related equipment and software.
Staff will conduct annual inventory audits and hire outside auditors when necessary. All
accounting and finances will be maintained using Peachtree software.

5.8 GOALS

The following is a list of business goals and milestones we wish to accomplish our first year of
operations.

• Complete renovating, stocking, hiring and initial marketing.

• Host a successful grand-opening event.
• Penetrate and raise awareness in 60 percent our targeted consumer market.
• Achieve a profit margin of 50 percent.
• Build a solid customer base and mailing list.
• Generate repeat and referral sales.
• Become a profitable business with expansion potential.
• Establish a solid reputation as quality retail establishment.

Our first major milestones will be securing funds and setting up our business. This is our major
focus right now. In five years, we hope to have established our retail business within the
community and within our industry. Furthermore, as co-owners, we would like to see the
growth of our store with an increase in product lines, further penetration of the national
market with online sales and, under the right set of circumstances, the opening of franchise
Booming Boutiques in strategic locations.

5.9 EXIT STRATEGY

The co-owners intend to launch and grow Booming Boutique for many years into the future. In
the event that our investors require repayment of their initial investments, plus a large return
on their investments, we will seek a partner to buyout the investors’ shares. Another
alternative is a management buyout, which will be agreed upon in advance.

In the long term, we will position Booming Boutique as a profitable business that will be an
appealing acquisition for any number of retail chains.

6.0 MANAGEMENT
6.1 ORGANIZATIONAL STRUCTURE

As a small business, we will have a small staff. Both co-owners will assume leadership roles
within the company and will be responsible for daily operations, overseeing marketing efforts,
buying merchandise and managing inventory and all other administrative duties. A small sales
staff will assist co-owners with securing sales, assisting customers and general maintenance of
stock on the floor.

6.2 LEADERSHIP

Robin Mathews and Joanna Jensen are co-owners and will co-manage Booming Boutique.
However, daily responsibilities will differ.

Robin Mathews will manage the day-to-day operations including supervising staff, maintaining
inventory and bookkeeping. Mathews worked ten years in the retail industry including four
years as a manager of an antique furniture shop. Mathews earned a BA degree in finance from
Britannica College in Tampa, Florida.

Joanna Jensen will oversee the merchandise buying for the store as well as maintain a keen
awareness of trends within the industry. She will also work with our public relations firm to
ensure superior marketing plans are in place and implemented. Jensen worked in the fashion
industry in various capacities working with designers, wholesalers and retailers for 20 years.
She earned a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.

6.3 STAFF MEMBERS

Booming Boutique will employ a sales staff of 3 part-time employees. These positions are yet
to be filled. However, we feel the labor pool is such that finding qualified employees will not
be an issue. Our sales associates will be paid an hourly wage, plus commission. Bonuses will be
provided with each year of service following an annual review to encourage employee
retention.

7.0 FINANCIAL PLAN

7.1 REQUIREMENTS

Booming Boutique will need $282,000 to get our business off the ground. We are currently
seeking funding from outside investors and business loans.

At this time we have raised $50,000 in equity capital and an additional $12,000 for a specific-
use grant. Both co-owners, Robin Mathews and Joanna Jensen, have invested $25,000 each into
Booming Boutique. We are seeking investors for an additional $170,000 in equity investment
and $50,000 in loans.

7.2 USE OF FUNDS

Funds will be used to pay for renovations, including the outside façade (to be paid for via PDRC
grant), construction of fitting rooms, sales counter, painting, carpeting, lighting, decor and
display fixtures. We will also purchase inventory, a cash register, computer equipment and an
inventory management system. The remainder of the start-up funds will be utilized to cover
operating expenses, such as rent, utilities, marketing costs and wages.

7.3 INCOME STATEMENT PROJECTIONS

Based on our marketing plans, location, store size and product offerings, we expect to collect
annual sales of $285,000 in year one, $375,000 in year two and $525,000 in year three.

Our average cost of goods sold will be 40%, which leaves us with a gross margin of 60%. Our
minimum monthly fixed costs are $15,500 per month, so we will need to generate sales of
$25,833 per month to break even. We will become profitable on a monthly basis before the end
of our first year.

In our third year, we will earn net income of $105,000. The accompanying income statement
demonstrates our company's profitability.

7.4 CASH FLOW PROJECTIONS

Our business will collect immediate payment from customers, so our cash flow statement will
be substantially similar to our income statement. Our cash flow statement clearly
demonstrates our ability to cover all bills.
7.5 BALANCE SHEET

Booming Boutique will launch with $220,000 in equity capital and $50,000 in loans. Credit
amounts and supplier terms for inventory will appear in our balance sheet as short-term
liabilities. Jewelry consignments from vendors will not be documented in our balance sheet and
will be expensed as these items are sold. Details are shown in our enclosed balance sheet.

7.6 ASSUMPTIONS

Our projections are based on the assumption that the economy, consumer spending habits and
population growth in Pleatsville will continue for the foreseeable future.

We must also assume that our present and future suppliers will continue to sell inventory to us
at prices that allow us to maintain our present margins. It is also important that we are able to
hire reliable employees at reasonable wages.

http://www.bplans.com

http://www.morebusiness.com

http://inventors.about.com/