Académique Documents
Professionnel Documents
Culture Documents
EXECUTIVE SUMMARY
I'll Be Denim is an organic denim clothing line headquartered in Los Angeles that
currently focuses exclusively on locally producing a slim fit, straight fit, and
regular fit line of jeans for men and women. Founded by Elena Horowitz, a retail
industry veteran with experiences at JCrew, the Gap, and Levis, and James
Foster, a serial entrepreneur, the duo is out to bring socially conscious fashion to
the masses.
Currently selling online and through partnerships with a handful of
local boutiques in LA, the company is projecting to sell upwards of
$400,000 in year 1 and reaching $750,000 in 3 years. Plans for
expansion include setting up distribution and manufacturing
relationships in New York, another fashion centric goldmine where the
company aims to gain greater market penetration.
With an emphasis on environmentally responsible fashion, Ill Be Denim
will also be starting a jeans recycling program where consumers will be
able to ship or drop off old pairs of jeans and have them used in the
manufacturing process for new ones.
Industry research has found that US consumers own on average 7 pairs
of jeans and stick to one brand based one one important variable, fit.
Given that statistic the companys designs center around providing the
best fit, with a tagline of denim so good, youll never take your clothes
off. To further take advantage of this insight, Ill Be Denim will be
launching a custom tailor option where users will be able to request
custom fit jeans through an online portal.
Ill Be Denim is a denim clothing line based out of Los Angeles focused
on bringing the highest quality organic denim wear to North America.
Founded by reputable designer Elena Horowitz and business partner
James Foster in October, 2012 with the duo having gone from a small
basement operation in Elenas home to successfully launching their
online store and scaling their operations.
After both founders worked for several years in the retail and fashion
industries respectively, one thing became increasingly clear to both of
them, the industry is in the midst of a deep moral and ethical crisis.
With cheap labour being continuously exploited with abysmal working
condition overseas and traditionally manufactured cotton using
upwards of 25 percent of the worlds entire agrochemicals consisting of
unimaginable amounts of insecticides and pesticides, Elena and James
decided enough is enough.
The duos vision for Ill Be Denim is simple, fashionable denim wear
made with organic materials thats manufactured locally and created
with the intent to make the fit so comfortable that youll never want to
take their clothes off. To achieve such a grand vision, the company is
committed to providing the best in class customer service in addition
to working with only the most detail oriented local manufacturers and
promoting eco-friendly fashion to the mainstream.
The guiding values and principles for the company are guilt-free
fashion (letting customers purchase high-quality apparel without
shutting out their conscious), the denim is in the details (working
with only the best local production factories), and eco is not a fad, but
our last chance (sourcing organic denim from certified suppliers).
CURRENT COMPANY STATUS
local manufacturers in LA. The company has had its revenues double
every two months.
ILL BE DENIM OBJECTIVES
Ill Be Denim is currently selling denim jeans online through its Shopify
ecommerce store shipping primarily within Southern California with
market penetration in New York, another in addition to sporadic orders
north of the border to Canada in Toronto and Montreal. It also currently
partners with two local fashion boutique stores focused on selling ecofriendly apparel that looks and feels good. The company is laserfocused on growing its sales and operations as broken down in the two
phases listed below:
PHASE I (NEXT 6 MONTHS)
pay more for them. Such trends are driving global brands like Gucci,
Timberland, and others to focus on making their products and supply
chain more environmentally friendly.
Pair all those facts together and you get a winning combination
championed by Ill Be Denim, provide consumers with organic denim
manufactured locally with an emphasis on designing for fit while also
offering custom fit solutions.
COMPETITION
its goal of launching an organic denim jeans collection in 2012 and has
both online and brick-and-mortar locations. They also have a wide
assortment of sustainable efforts ranging from providing a fair living
wage to everyone involved in the manufacturing process and recycling
jeans.
BRAND DIFFERENTIATION AND VALUE PROPOSITION
Though there are more than a handful of organic denim startups, at Ill
Be Denim, we firmly believe that with the founders combined
experience, industry partnerships, and focus on providing the quality
denim jeans produced with sustainability in mind from cradle to grave,
the brand can stand out. Our plan is to leverage our American heritage
7
and love for the fabric and use a marketing strategy that is closely
aligned with building personal relationships with our target market. In
addition, with fit being the biggest variable in jean purchase decisions,
our custom fit program in addition to our slim, straight, and regular fit
jeans will help us delight our customers who in turn will spread the
word.
TARGET MARKET
With our initial line of slim fit, straight fit, and regular fit denim jeans,
were looking to target the following consumer segment:
AGE: 17-35
Facebook status while waiting in line, and tweet every traffic disruption
they experience.
clothes were manufactured unethically or are aware of the ecofootprint they have by consuming clothes made with regular cotton
York, however, with the ability to shop online, well heavily promote
ourselves throughout southern California
MARKETING PLAN
For our day to day operations, Ill Be Denim has established several key
partnerships that ensure long-term durability and the ability to scale
alongside demand for our goods.
We will source the best organic cotton from two suppliers, one located
in Turkey and the other in Japan which means that their supplies were
produced without the use of any pesticides and was dyed in indigo
using a natural means. Once the shipment arrives in the US, itll be
routed to our production and shipping partner, DenimsRUs located in
9
the outskirts of LA who the company will work closely with to ensure
quality through regular checks and audits. It is also where the products
will ship out of through an integrated backend system and order
processing mechanism.
The Ill Be Denim office is located on 2029 Century Park East where the
two co-founders in addition to two admin and one sales and marketing
support staff will work out of handling all online order processing and
ensuring the purchase to delivery of their denim products runs
smoothly. Its also where all requests for refunds will be handled in
addition to the future launch of the jean recycling program.
FINANCIAL PLAN
PRO FORMA INCOME STATEMENT
YEAR 1
YEAR 2
YEAR 3
SALES
$395650
$610000
$750000
$50370
$82000
$105000
$50370
$82000
$105000
$100740
$164000
$210000
Gross Margin
$294910
$446000
$540000
Gross Margin %
74.54%
73.11%
72%
$177600
$192600
$212000
$0
$130000
$150000
EXPENSES
Payroll
Sales and Marketing and Other
Expenses
10
Depreciation
$7140
$7140
$7140
Leased Equipment
$0
$0
$0
Utilities
$6000
$6000
$6000
Insurance
$6000
$6000
$6000
Rent
$24000
$24000
$24000
Payroll Taxes
$26640
$28890
$31800
Other
$0
$0
$0
$247380
$394630
$436940
$47530
$51370
$103060
EBITDA
$54670
$58510
$110200
Interest Expense
$13830
$12750
$12570
Taxes Incurred
$10110
$11586
$27147
NET PROFIT
$23590
$27034
$63343
NET PROFIT/SALES
5.96%
4.43%
8.45%
YEAR 1
YEAR 2
YEAR 3
CASH RECEIVED
11
$61000
$75000
Cash Sales
$395650
$610000
$750000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$395650
$610000
$750000
EXPENDITURES
YEAR 1
YEAR 2
YEAR 3
$17760
$19260
$21200
$10395
$36497
$46354
Cash Spending
Bill Payments
12
$281557
$557575
$675540
$0
$0
$0
Borrowing
$0
$0
$0
$0
$0
$0
Repayment
$21600
$1800
$1800
$19800
$19800
$19800
$0
$0
$0
Dividends
$0
$0
$0
$322957
$579175
$697140
$72693
$30825
$52860
CASH BALANCE
$137293
$168118
$220978
YEAR 1
YEAR 2
YEAR 3
13
ASSETS
Current Assets
Cash
$137293
$168118
$220978
Inventory
$6270
$10207
$13070
$19800
$39600
$59400
$163363
$217926
$293448
Long-term Assets
$50000
$50000
$50000
Accumulated Depreciation
$7140
$14280
$21420
$42860
$35720
$28580
TOTAL ASSETS
$206223
$253646
$322028
YEAR 1
YEAR 2
YEAR 3
Accounts Payable
$9633
$31822
$38661
Current Borrowing
$0
$0
$0
$0
$0
$0
$9633
$31822
$38661
Long-term Liabilities
$128400
$126600
$124800
TOTAL LIABILITIES
$138033
$158422
$163461
Long-term Assets
Current Liabilities
14
Paid-in Capital
$200000
$200000
$200000
Retained Earnings
$155400
$131810
$104776
Earnings
$23590
$27034
$63343
TOTAL CAPITAL
$68190
$95224
$158567
$206223
$253646
$322028
NET WORTH
$68190
$95224
$158567
15