Women’s Clothing Boutique Business Plan

A fashion boutique is needed to cater to busy, professional women in Los Angeles with a household income over $250K. These women want boutique fashions and services that fit their busy lifestyles. They have the cash to spend and understand the importance of dressing the part to get ahead.

Solution

De Kliek will offer services like Style Assessments, alterations, personal shopping, and special ordering during store hours and by personal appointments.

Market

Research shows that women are stressed, lack time to shop, and want help in determining the right clothes and styles to wear. With over 61 million American women aged 25-54 spending $34 billion in apparel each year, there are bound to be mistakes in clothing choices.

Competition

Direct Competition:

• Fish
• Fred Segal
• Girl and Her Dog
• Margaret O’Leary
• Dress
• Rabat
• Riki
• Susan of Burlingame
• The Grocery Store

Indirect Competition:

• Abigail Morgan
• Ambiance
• eLuxury.com
• Her
• The Designer’s Club
• Yoya Boutique
• All other LA Boutique Retailers

Why Us?

De Kliek stands out by offering services such as style assessments, alterations, personal shopping, and special ordering. We have trained Style Concierges available to help customers on a daily basis. Our innovative Style Assessments and emphasis on helping women develop their personal styles set us apart as a truly unique boutique.

Expectations

Forecast

• Start-up costs, including inventory for the first month, are estimated at $117K. Financing, including working capital, will come from the owner ($40K), a family-member investor ($45K), and an SBA loan ($90K).

Financial Highlights by Year

Financing Needed

We need $175,000 to start. The owner will provide $45,000, an investor will contribute $40,000, and there will be an SBA loan of $90,000. The loan and investor will be repaid by year 4.

Opportunity

Problem & Solution

Problem Worth Solving

Professional women with fashion-forward needs often struggle to find clothing that suits their bodies. Many of these women work long hours and have little time to shop for themselves. Their job advancement and success depend on their appearance, making it crucial for them to dress well, but they are unsure of what to buy or how to develop their personal style.

Our Solution

De Kliek Style Studio is an upscale women’s clothing boutique that will open in Noe Valley in July. De Kliek carries beautiful designer labels for professional women, like the sophisticated silhouettes of Herr Frau and luxurious Jamin Puech handbags. Our clothing selections and exclusive personal style services, including a detailed Style Assessment that features nine different style personalities, will ensure that our customers are always well dressed.

Target Market

Market Size & Segments

Various economic forces affect apparel retailers. Consumer confidence is crucial; people don’t shop when they don’t feel good. Unemployment also has an impact, as fewer working women means less disposable income for high-quality clothing. However, the luxury goods market, including De Kliek, has remained recession-proof. Luxury firms forecast a strong 2017, particularly for accessories and footwear. The Los Angeles area has a high number of clothing boutiques, and women’s clothing stores in Los Angeles have a higher sales growth rate than the national average due to the affluence of the households in the region.

Market Segmentation

Market Needs
If you listen to women in a dressing room, they often comment on what they’ve tried on and question how to wear it or what to pair it with. Research shows that women are stressed, lack time to shop, and want help in determining the right clothes and styles to wear. With millions of US women spending billions on apparel each year, there are bound to be mistakes in clothing choices. Women’s confusion about what looks best on them is evident in popular television shows like "What Not to Wear" and "Fashion Emergency."

One gender that significantly influences the retail marketplace is women. They make up 51% of the US population and control or influence 81% of all household purchase decisions. Women are now earning more degrees than men, leading to more senior positions and higher pay. Balancing work and family is a top concern for women, and many struggle to find time to shop. Despite these challenges, women continue to prioritize their personal style and spend significant amounts on clothing each year.

Target Market Segment Strategy

De Kliek primarily targets professional women in Los Angeles with a household income over $100K. These women have specific characteristics and needs:

• Professional women aged 30-55
• Household income over $100,000
• College-educated
• Live in higher-income LA neighborhoods
• Look for bargains but invest in quality core items
• Seek help in understanding what clothing is right for them
• Want to look their best to make a good impression at work
• Are interested in arts, culture, and current events
• Enjoy dining out, pampering themselves, and traveling
• Spend over $2,500 on clothes each year
• Shop at boutiques and higher-end retailers
• Wear sizes 6, 8, or 10
• Look for classic, basic items with a few trendy pieces each season
• Value quality over quantity

Competition

Current Alternatives

Direct Competition:

• Fish
• Fred Segal
• Girl and Her Dog
• Margaret O’Leary
• Dress
• Rabat
• Riki
• Susan of Burlingame
• The Grocery Store

Indirect Competition:

• Abigail Morgan
• Ambiance
• eLuxury.com
• Her
• The Designer’s Club
• Yoya Boutique
• All other LA Boutique Retailers

Main Competition:
From a "look & feel" perspective, the main competition is Dish in Hayes Valley. However, De Kliek has a unique selling proposition with its integrated personal style services, such as Style Assessments, on-site alterations, and the expertise of our Style Concierges and advisors.

Keys to Success

Keys to Success

1. Being at the forefront and respected in the industry
2. Location in a high-shopping area
3. Offering quality products and maintaining good vendor relationships
4. Providing outstanding customer service

Execution

Marketing & Sales

Marketing Plan

Positioning Statement
De Kliek provides professional women with upscale designer clothing and exclusive personal services. Our unique selling proposition is the integrated concept of personal style services, including Style Assessments and education to help women develop their personal style.

Brand Positioning
De Kliek aims to be the leader in providing exceptional service and assistance for women’s fashion needs. Our brand personality is innovative, stylish, contemporary, modern, fresh, approachable, and elegant.

BRAND PERSONALITY

Innovative, Stylish, Contemporary, Modern, Fresh, Approachable, Elegant

Our brand personality reflects our dedication to fashion, customer orientation, innovation, freshness, style education, and enjoyment. We not only provide beautiful clothes but also help women learn about designers and have an enjoyable shopping experience. Our membership in the Association of Image Consultants International ensures that our Style Concierges learn from the best in the industry.

Promotion
Our promotional tactics include personal selling, word of mouth, a well-maintained Facebook page, unique storefront displays, PR efforts, Twitter engagement, direct mail, store events, a De Kliek website, and advertising in the Valley Voice newspaper.

Sales Plan

Effective inventory management is crucial for a successful clothing boutique. De Kliek will carry 15 merchandise classifications in addition to the Style Assessment. Sales forecasts and Open-to-Buy (OTB) plans will be reviewed monthly with the retail inventory service provider, RMSA, to make necessary adjustments. The inventory will aim to be 40-50% fresh at all times.

Operations

Locations & Facilities

De Kliek will be located in an upscale neighborhood in Los Angeles, where a significant portion of the target market resides. The retail store will be medium-sized, with the ability to provide specialized customer wardrobes within 24 hours. De Kliek will also establish a website for customers nationwide to learn about the boutique, Style Assessments, and make appointments.

Milestones & Metrics

Milestones Table

Launch a social media and radio spot PR campaign
Launch Party and Event
Grand Opening
Fall Fashion Show at AICI Meeting (300-500 people)
Style Assessment Workshop
Mother-Daughter Night; Style Assessment Workshop
Holiday Hair Workshop; Style Assessment Workshop

Key Metrics

Key metrics to measure our success include inventory turnover, sales per square foot, profit margins, engagement on Facebook and Twitter, website traffic and conversion rates, and overall customer satisfaction.

Company

Overview

Ownership & Structure

De Kliek is established as a simple LLC for ease of formation and simplicity in structure and tax record keeping. The company may consider transitioning to an S Corporation when opening another location.

Mission Statement

• To provide women with a boutique that offers a comfortable and approachable environment

Keys to Success

1. Location in a high-shopping area

Objectives

• Turn inventory five times and generate $800 in sales per square foot

Team

Management Team

Vrootje Magen – Owner
Vrootje Magen has 20 years of experience in retail sales, banking, and marketing, making her well-equipped to manage and operate a successful clothing boutique. Her skills in customer service, financial management, and marketing have been honed through her various roles in the industry. Vrootje’s passion for fashion and her training in image consulting add to her expertise.

Advisors

Team of Advisors

Lisa Bakke, Certified Image Professional
Lisa Bakke is a personal stylist with 15 years of experience. Her knowledge of clothing design and color paired with her understanding of individual needs makes her an invaluable advisor.

Rilke Szanku, Creative Director & Principal, Blue42
Rilke Szanku has 15 years of experience in design, specializing in print and web design. Her expertise helps De Kliek create visually striking marketing materials that meet business objectives.

Nicco Q. Smore, Architecture & Design
Nicco Smore brings architectural and design knowledge to the team. His experience in designing diverse project types, including residential and educational facilities, enhances De Kliek’s aesthetics.

Schulden F. Kopff, CPA
Schulden Kopff is a certified public accountant with over 10 years of experience. His expertise in accounting and tax will ensure De Kliek maintains financial stability.

Fanny Packer, J.D., M.B.A., C.P.A., is an attorney who provides business law counseling and transactional support to entrepreneurs and growing business organizations. Fanny has worked in the legal profession since 1998 and has extensive experience in corporate, contracts, intellectual property, and commercial real estate law.

Gordon Grido is a Merchandising Analyst with Retail Merchandising Service Automation (RMSA). With 17 years of experience, Gordon helps merchants make purchasing decisions and manage inventory to maintain a healthy cash flow and maximize profitability.

RMSA is the leading provider of inventory management and forecasting tools for retail businesses nationwide. Their service combines sales and inventory data with their retail database to help retailers forecast and improve their operations.

Hugh Enmity has over 20 years of experience in retail, working for leading department stores, off-price chains, and mall-based chain stores. His expertise is in menswear, including tailored clothing, shoes, sportswear, activewear, dress furnishings, and basic furnishings.

Astrix Komma is a copywriter and creative consultant with nearly 20 years of experience in direct response, advertising, and web marketing. Her creative work has won numerous industry awards, including a Clio and Communication Arts award.

In terms of personnel, the table below shows the salaries for different positions in the company:

2020 2021 2022

Owner $73,000 $96,000 $108,000

Assistant Manager $39,600 $60,000 $84,000

Style Concierge $19,000 $32,000 $46,000

Totals $131,600 $188,000 $238,000

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Andrew Brooks

Hello!

I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.

My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.

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