Where Fashion Equals Budget

By

Chhavi Gupta

TABLE OF CONTENTS

I.

EXECUTIVE SUMMARY .................................................................................................1

II.

DESCRIPTION OF PROPOSED BUSINESS

The Industry ........................................................................................................................2
The Company ......................................................................................................................2
The Products or Services .....................................................................................................2

III.

OBJECTIVES OF THE BUSINESS

Mission Statement ...............................................................................................................3
Vision Statement ..................................................................................................................3

IV.

PROPOSED BUSINESS STRATEGIES

Location ...............................................................................................................................3
Facilities and Improvement..................................................................................................3
Strategies and Plans .............................................................................................................3
Timeline ..............................................................................................................................4
Growth Plan .........................................................................................................................4

V.

PRODUCT(S) AND/OR SERVICE(S) TO BE PROVIDED .............................................4

VI.

MANAGEMENT AND OWNERSHIP OF THE BUSINESS

Organization .........................................................................................................................5
Key Personnel ......................................................................................................................5
Management Compensation and Ownership .......................................................................5

VII.

MARKET ANALYSIS
Target Market.......................................................................................................................5
Market Size, Makeup and Trends ........................................................................................5
Competition..........................................................................................................................5
Pricing ....................................................................................................................................
Advertising and Promotion ..................................................................................................5

VIII.

FINANCIAL ANALYSIS
Expenses ..............................................................................................................................6
Sources of Funds ..................................................................................................................6

APPENDICES
Statement of Originality......................................................................................................A
Time Line ............................................................................................................................ B
Floor Plan ............................................................................................................................ C
Partnership Agreement........................................................................................................D
Budget Forecast .................................................................................................................. E
Loan Amortization Schedule .............................................................................................. F

IMAGE Boutique
Page 1

Business Plan
Part IExecutive Summary
IMAGE Boutique is a startup company which will have clothing, shoes, bags, and
jewelry. The Boutique will offer the customers a wide range of fashion styles. At the Boutique
we will carry ready-to-wear designer and casual clothes. The boutique has designed an
organized method that will identify and trace IMAGE Boutiques customers, making them feel
valued and informed. We will provide a service such as personal shopping, special ordering, and
alterations. The Boutique will help the customers develop their personal style. In our Boutique
there is a lot of variety of clothes, handbags, shoes, jewelry, and many other things that you can
find.
We will satisfy our customers by having the best quality jewelry. Our business is a
business that will guarantee quality products. This will hopefully attract many customers to our
business. We will also have casual clothing for those who like to be fashionable and comfortable.
The products that we have will be one of the best there. Many of the products that we will have
will be a variety of many types of clothes because we know that each one of us have different
styles and personalities. One of the things our company has will be the latest fashion trends. Also
we will have a variety of shoes and bags.
IMAGE Boutique will be one of a kind business because our boutique will have a variety
of different clothing to suit the needs of our customers. Some of products will have exotic and
casual designs on them.
IMAGE Boutique will give three young ladies to advertise our fashion of cloth. The
reason for this is to attract more customers to come to the IMAGE Boutique. So when this three
young ladies model the fashion they receive from us at school or work they are advertising so we
get more interested costumers. This way they dont have to travel long ways to find the fashion
design they desire.
The clothing styles are coming from Europe and Africa. This is a very different style of
clothes because they are not used in the United States many of the products here are imported
from China, Indonesia, and some other countries. Also, the styles are very different than the ones
from China and Indonesia.
Our vision is to satisfy our customers with the style of our clothing to fashion. We will
get our profit from the clothes that our customers buy or order online. Our Mission is to be
market leading business that meets our customers need by offering them reliable and consistent
value.
We will get our loan from the First State Bank. We will pay the loan with the profit
money we have every month. We have 10 years to pay the loan. We will barrow 500,000
dollars from the bank and we will pay about 2,677.68 a month to the bank.

IMAGE Boutique
Page 2

Part IIDescription of Proposed Business

We are opening a new boutique in Delhi. The reason we are opening a fashionable
boutique is that there are a lot of young ladies. As a result of their increasing in numbers their
needs is also increasing too. This cause a lot of people to travel a long distance to find
fashionable clothes like to Minneapolis and Sioux Falls. So our target is to save these young
ladies their moving such a long distance and helping our self as productive and qualitative
business makers.
Before we think about our business, we try to talk to different class of people how they
feel about fashionable clothes availability in Worthington. A lot of people say they are not
satisfied with the clothes in Worthington because their clothing is not satisfactory. Consequently
we feel that ladies are the most fashionable class. However, when we think to open a business,
still we will be in challenge by the competitors like Vanity, Maurices, JcPenny, The Stag, and
more.
We will lead the business over other direct and indirect competitors. Since we have good
feedback on how to make business, we would have customers feedback relationship at store and
will mail it to the customers back their feedback. After we get the feedback we will know the
different direct and indirect compotators, the direct competitors essential question to our
business. The indirect competitors are competitors who sell clothes for ladies, but they do not
provide the same as ours. The direct competitors are the business companies who sell the same
products of ours.
When we think how to lead the above mentioned competitors, we are going to put plans.
By changing the attention of young ladies toward fashion dressing and making many people
know about our business through different promotion methods. Like giving some new and
attraction clothes for few young ladies who work, many people will visit, and also student like
high school and college to use it and make commercial for our business.
The outlook on our business is looking good. We hope that our customers are satisfied
with our clothing and merchandise that we have. In the beginning we are looking at a slow profit
but as the time passes we are hoping to see a rise in our profit. Most of our clothing is done by
using raw materials that come from Europe and Africa.
We will keep the business going by satisfying our customers and also buy giving them
advice in fashion when they need it and by pleasing them with our products. That is one of the
many things we are doing so we can help our customers. Another favor we are doing them is by
saving them the trip of going to someplace else to shop at when they can just shop at our
boutique for a better quality from the rest of the stores; by doing that we hope that our business
will be our customers favorite boutique to buy from.
And our clothes are unique because we will order the clothing in Europe and Africa.
Most young ladies dont pay attention to European and African style. Europe and African styles
of clothes are getting to the models work. So for this reason we will make them available here in
Worthington in order to make future bright for most young ladies.
2

IMAGE Boutique
Page 3

Part IIIObjectives of the Business

IMAGE Boutiques vision is to be the best satisfying store to our customers at all means.
Being the best to us means providing our customers with the best service they have ever had in
any store. We value our customers and we will make them feel comfortable and be friendly so
that they leave our store with a satisfying smile in their faces. We would like our customers to
have an excellent experience shopping. We want them to leave happy and satisfied with the
clothing and our service.
So far our Boutique has some competition, but as our business does begin to get better we
will get some competition. Some of our competitions will be JcPenny, Vanity, Maurices,
Peebles, and some downtown stores.
We are going to make our profit by selling our clothing to the many of the young ladies
there are in town and around this area. Also be making our customers happy by bringing clothes
that they like and by that we are also benefiting from it because it helps us maintain our business
so we can keep it open for business. It will help us pay off our loan and pay other bills such as
public utilities and so on.
Our mission statement is we want to sell the best quality product that is on the market
today. We want things that will last and remain in style for our customers. We aim to retail
with market leading business that meets our customers need by offering them reliable and
consistent value.
Part IVProposed Business Strategies
Our goal is to be successful in with our boutique. Our plan to do this is by providing the
best service that our customer could have. We are also providing good quality products and
clothing.
The location of our Boutique is on the corner of Oxford and Humiston in Worthington,
Minnesota. We plan to rent a building. The building will need to be renovated so it looks
appealing to the eye.
The owners/ managers will do most of the work around the Boutique. The customer can
call the Boutique if there are any problems. The owners/ managers will try to work things out
with the customers and also make sure the customers are satisfied. Both the owners/ managers
will be responsible for the problems.
The things that need to be done are putting clothes on the racks, jewelries on the display
case, and handbags hanging on the walls and set on racks. We will have the storages organized
by types. Our supplies will come in by a common carrier or UPS. The supplies will be shipped
straight to our Boutique.
If our customers order online, our shipping will be done by UPS or Federal Express. We
would have to package it for shipping and the work will be done in the store. They get their
3

IMAGE Boutique
Page 4

entire product they ordered on time and in a good shape. With their delivery we will include a
survey on how well we serviced our customers. We will have charges on shipping and handling
if ordered.
We will have a survey to determine how satisfied our customers are about the quality of
our product. We will have an agreement with our product suppliers to refund any defected
product. If our customers have a defected product that they bought from us we will refund their
money. They will be satisfied and will probably come again.
First we will rent a building and we will get financing for the building and products. We
will make plans for renovation of the building order supplies for the store including lights, racks,
hangers, shelves, display case, cash register, computers, security, and toiletries.
We will order online for our materials/ products and take samples before ordering our
final products. After our products arrive we will price them and self them. We will advertise for
the grand opening of the IMAGE Boutique. The IMAGE Boutique will be opened in June 28,
2010.
We choose the way we are selling so people in Worthington have an exclusive store with
fashionable clothes. The customers who order online will also have the special experience in
ordering our clothes.
The customers should select our clothing Boutique for the quality of our product and the
unique way we sell our product. Since no one has the style of fashion we will sell in
Worthington.
Part VProduct(s) and/or Service(s) to be Provided
The clothing and products that we will have are going to be affordable. Our target for
customers will be for young ladies around Worthington. We want to give our customers
something unique and different.
Our customers would like our products because we will provide a variety of different
clothing styles. Our products will be of the best of quality name brands. The hand bags that we
will have are going to have unique patterns and colors there will also be casual bags and all
different styles and shapes. The shoes that we will have will be a variety ranging from different
sizes, different types of heels, and color.
We will provide service for our customers. The services we will have are giving them
advices when they need help with the fashion, because sometimes we need some advice on how
to wear our clothing and with what to match it with.

IMAGE Boutique
Page 5

Part VIManagement and Ownership of the Business

Owners

Computer Expert
Employees

=
Online sale person

The owners will be paid in salary and at the end of the quarter each partner will receive
twenty-five percent of profit with the fifty percent going in to build the business.
We will be paying our part time employees $7.25 and our full time employees $8.25 at
the beginning and as then as the boutique progresses we will be giving raises for our employees.
Our first priority is our boutique. We plan on paying all the bills first before we do anything
else.
Part VIIMarketing Analysis
Our target market would be the young ladies from the age of fourteen to thirty. Our
boutique will give these young ladies lots of style of fashion. We will attract the young ladies
with style of fashion that no one has in Worthington. Our business will sell clothes, handbags,
shoes, jewelry, and many other you can find in the Boutique.
Our competitors are Vanity, Peebles, Maurices, JcPenny, The Stag, and other stores at
downtown. Our competitors clothes are made in South East Asia, China, and the United States.
Their clothing is lower quality. Our clothing will be high quality and are made in Europe and
Africa.
The owners of IMAGE Boutique will be the sales force till the business takes off. After
the Business takes off we will hire four employees. We want two employees to work full time
and the other two employees to work part time. We will have an expert working for us to sell
clothes online worldwide. We will have the expert design our website that will be spectacular.
The pricing policy of our products, we will mark everything up to thirty-five percent. We
will keep our sales to a minimum. It allows us to always receive at least twenty-five percent
markup.
Part VIIIFinancial Analysis
We will get our financial needs from sponsors who have offered to help with our new
Boutique. Also, we will be getting a loan of $500,000 from the First State Bank. We will then
pay off our loan with the profit that we will make.

IMAGE Boutique
Page 6

The money will be deposited each night in the Boutique account at the bank. We will use
an accountant, who pays our bills and pays our employees. The accountant will keep track of
what is selling the best and what is not selling the best.

IMAGE Boutique
Page A

IMAGE Boutique
Page B

Floor Plan

Cashier

IMAGE Boutique
Page C

Time line

Legal procedures filing papers of incorporation, partnership, etc.

Finding office or manufacturing space

Expectations for research and development

Product development

Getting all necessary licenses and permits

Purchase or lease of equipment

Hiring of personnel-family members

Purchase of materials February 1, 2010

The starting date for marketing activities May 20,2010

Our opening date for business is June 28, 2010

IMAGE Boutique
Page D

Floor Plan
Doors
Cash Register

Restrooms

Jewelry

Clothes

Dressing
Rooms

Shoes

And

Purses

Office

Cash register
Storage Area

IMAGE Boutique
Page E

Partner Ship Agreement

1.
IMAGE Boutique
Leah Perez and Tarik Amare now form a partnership under the name of IMAGE Boutique. The
location of this business will be at 1589 Oxford Street, Worthington Minnesota.
2.
This partnership will begin on 11-15-2009 until terminated
3.
The Capitol of the partnership will be distributed in cash

Each partner will have their own business account

None of the partners will withdraw any money from the account

The accounts of the partners will be maintained in the proportions in which the partners
share profits and losses in the partnership
4.
The net profits that are lost in the partnership will be divided between the partners. Each
partner will have a separate income account. If a partner doesnt have enough credit in their
income account it will be taken out of their capital account.
5.
Neither partner will receive a salary for services to the partnership. Either partner from
time to time can withdraw their credit balance in their income account.
6.
During the initial contributions to the capital of the partnership or to any contributions to
the capital no interest will be paid.
7.
Each partner will have the same amount of right to the management of the business.
Without the presence of a partner the other partner cannot do any of the fallowing: barrow or
lend money, accept any commercial papers, make deliveries, or execute any mortgage, lease, or
security agreement, or purchase or contract to purchase, or sell or contract to sell any property of
the partnership other than the property that was bought and sold in the regular course of the
business
8.
The funds of the partnerships will be deposited in its name in the checking account or the
accounts that shall be designated by the partners. Any withdrawals are made from check and
signed by either partner.
9.
The books of the partnerships will be stored in the main office of the business. The books
will be kept in a fiscal year basis and will be closed and balanced at the end of each fiscal year.
10.
If any of the partners chooses to close the business down it would be possible with an
agreement from both partners. The partnership name would be sold along with other assets of the
business. The assets of the partnership agreement business will also be distributed on the
fallowing conditions:
a.
All the payments of the partnership business would have to be made between the partners
b.
The income accounts will have to be equally the same between the partners
c.
We also have to equalize the capitol between the partners
d.
The capitol accounts would have to be discharged
11.
If either one of the partners shall die the other partner does have the option to either
terminate the business or to buy the other half of the partners place.
___________________________________________
Leah Perez

_______________________________________
Tarik Amare