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Executive Summary
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, de nes 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.
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 nalized.
Finance
Start-up costs include inventory for the rst 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 rst 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 pro ts 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 ve 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.
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1.1 Mission
To provide women with a boutique that o ers a comfortable and approachable environment
To help women learn what clothing and styles go best with their unique personalities
1.3 Objectives
To turn inventory ve times and generate $800 in sales per square foot
To maintain pro t 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
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7 (management_summary_fc.php)
8 ( nancial_plan_fc.php)
9 (appendix_fc.php)
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