Table of Content

    Boutique Business Plan to Create New Trend

    Do you have that habit of recycling the clothes in a new trend and wearing them, so your friends going to jealous of your clothes and ask you where you buy clothes? Yes, you’ll not be going to spill it out until they offer you something. The cloth lover people can only think about the Boutique Business Plan to Set a New Trend on the market.

    People are mostly searching for fashionistas who suggest some suitable clothes for parties, weddings, and professional meetings, casual and so on. Nowadays, people love to buy trendy clothes and show it off on their social media platforms. People check out Facebook, Instagram, and Pinterest for the latest clothing trends.

    Before starting the business, it is also necessary to know about the audience. When it comes to clothing, people have different tastes for clothes. The boutique business will help you out to show your ideas to other people and set up a new trend on the market. People are always attracted to new things, and when it comes to clothes, they’re still going to attract. The boutique business will never fail if you properly execute a perfect boutique business plan.

    Executive Summary

    The boutique business will tide everyone in a single rope and makes them closer. There are very few things that connect people. Every country, city, state, and village have their clothing identity, which they don’t want to change in any way. So at this place, you can open the fashion boutique for the people so they can try something new and show to their friends.

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    How to Start Boutique Store?

    Well, it is the most challenging part because the person who is launching the business never knows about the future. The plan will work or not; it will always be a prospect due to which many people sacred. Do most people ask that how to start a boutique store? So here is the answer, you need to identify the requirements of people. You must have to check on the latest clothing trends and what people like to wear? It is essential to know about the customer’s requirements and what is going on in the market.

    Boutique Business Plan - Startup Cost

    Start-up Expenses
    Initial Deposit $ 0
    Leasehold Improvements $ 20,000
    Rent for Mo. of Improvements $ 3,000
    Inventory Analyst $ 1,800
    Professional Fees $ 1,050
    Insurance $ 1,008
    General Startup Costs $ 6,900
    Marketing: Packaging, PR, Design $ 11,350
    TOTAL START-UP EXPENSES $ 45,108
    Planned Investment
    Owner Injection $ 41,707
    Investor $ 1,000
    Other $ 0
    Additional Investment Requirement $ 0
    TOTAL PLANNED INVESTMENT $ 42,707
    Start-up Assets
    Cash Required $ 7,500
    Start-up Inventory $ 55,500
    Other Current Assets $ 0
    Long-term Assets $ 24,599
    TOTAL ASSETS $ 87,599
    Total Requirements $ 132,707

    You must check out all the brands they are offering to the customers and what new things you can bring in your clothes. It needs in-depth research on clothes. Apart from this, for the online boutiques business plans, it is also necessary to adjust the funds. Check out the property to open the boutique store. It is also required to choose the proper location so people can identify your store and buy something from it. If the place is not right, then the business will die.

    How much it cost in the boutique business?

    Well, the amount depends on many factors. What kind of clothes are you providing the customers and who is going to buy the clothes. If you’re opening the boutique for rich people, then the area you need to choose will be reached, and the property lease/rent will be going to touch the sky. If you open the boutique on the local market, then also property expense came. You have to maintain the property and your items so that people can buy it.

    How to Manage Staff?

    The business will become successful if you’ve trusting staff members. It is essential to manage your staff in the right way. Every business owner must talk with their staff members as much as possible. Communication will always help business owners and staff members to come closer and share their ideas. It will not only grow the business, but your employee can also see their personal growth in the company and work harder for you.

    Business Target

    Our primary target is to satisfy our customers and to establish our business in the location. So people can know about us and our clothing style. Our business plan for fashion boutique is to get more customers as much as possible and to expand our clothing line to many other countries. Profit is the secondary thing, but the primary concern is our customers and their satisfaction from our boutique.

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    Company Summary

    Planning a Business

    When it comes to start boutique clothing store is not an easy task. We are looking forward to the funds. We have investors and also looking for a bank loan. It is also necessary to think about the staff members that you’re going to hire in your new members. Every new business owner has to invest more, and they will not be able to see any profits in a year. It takes time for planning a boutique business.

    Define Brand

    Well, the new business always has to face such difficulties in establishing a brand name on the customer’s head. We treat our customers very well and also take care of their requirements and suggestions. We also made tailor-made plans for the customers. We provide the best outfits from our boutique so people can get compliments from other people. We also discuss with our team that what are the requirements of the customer and how we can match it.

    How to promote or Market Business

    Nowadays, people are mostly spending their time on social media, so it is the best way to promote clothing products on social media. Well, boards, pamphlets are old fashioned, and people don’t like to look it on anyway. Instagram is the most popular social media platform for boutiques and beauty. You can prepare a description of a boutiques business plans, take some photos of the clothes, and put it on various social media platforms.

    You can also hire some fashion influencers who try your cloth and put it on their accounts so people can quickly look at the photo, and don’t forget to mention the website link on the bio — the same thing you can do on Facebook and Pinterest as well.

    Web Presence

    When it comes to clothing, it is essential to present online for followers. Nowadays, people don’t have so much time, so they prefer to buy online. To create a perfect website portal for the boutique business and update everything from clothing photos, payment options, and, if possible, then home delivery too. You can check out another example of a business plan for a boutique and create the website.

    Company Owner

    Well, our company owner knows to clothe and also worked on many clothing stores to get more experience. He also worked on the clothing store, so they know more about the people’s clothing choices. He also visited many different places to know more about clothing and their religious beliefs of older adults. Now, this knowledge is helping our owner, and he is building a strong empire that will never be going to fall.

    Why the owner started this business?

    Our owner loves to wear new and trendy clothes, but they also feel that if they can share their ideas with others. They learn about clothing designing and now going to propose a retail business plan boutique so people can also get benefits from their store. Clothing is never going to be out of fashion, and it is changing daily. Our owner has researched the clothing line and what type of clothes people like to wear according to the season, function, and events.

    How Business Started?

    Well, the owner comes from the family where their family members are handling their own business. So now it is his time to shine on the stars and do something much better than their previous family members. Thus far, the owner provides their clothing products online to their customers and the retail store so people can visit and choose the product.

    You can check out the below chart that explains all our journeys of our investments, funds, and profits. This graph always helps us to achieve new goals and move further.

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    Products

    We provide all types of fashionable outfits, stylish accessories, apparel lines, designer clothes, branded outfits, trendy jeans, weekend vibes, and so on.

    Clothes from various trusted brands at a reasonable price for men and women.

    1. Fashion accessories for men and women.
    2. Latest outfits with stylish designs for men and women.
    3. Jeans
    4. Night wears
    5. Occasional  outfits
    6. Wedding outfits
    7. Weekend outfits
    8. Formal clothing
    9. Kids clothing
    10. Latest accessories
    11. Branded outfits
    12. Designer clothing

    Marketing Analysis of Clothing Boutique

    Market Trends

    As you can see above in the numbers, the fashion industry grows immensely. They are still going on, and it never comes to an end. The fashion industry is one of the most significant industry in all over the world. According to many experts, the fashion industry grows up to 21% more than the past three years, and it is still growing.

    Note

    It is good news for the new startups. In such an environment, owning your boutique business plan is not a bad idea, but it can help you out to get more benefits.

    Marketing Segmentation

    The most efficient marketing business strategy comes from knowing about the customers. People are very much divided when it comes to fashion. It is much better to share the people as per their requirements and what is trending on the market. This will help you out to fulfill the customer requirement in a natural way. It also helps to grow the business and establishes it shortly.

    Boutique Business Plan - Market Segmentation

    Market Analysis
    Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 Year 5 CAGR
    High-Income Women, 30+, in this area 5% 2,400 2,520 2,646 2,778 2,917 5.00%
    Personal Stylist Customers 30% 10 13 17 22 29 30.50%
    Total 5.15% 2,410 2,533 2,663 2,800 2,946 5.15%

    Business Target

    Our target customers are fashion shows, where we can explore our designs. Various celebrities who try our outfits, so people get know about it. We are also looking for social media influencers who can also promote our outfits and fashion experts who can give more information about our clothing line.

    Boutique Business Plan - 3 Years Profit Forecast

    Pricing

    Our prices are very minimal so that middle-class people can also wear such outfits and get the charm. So our target is to cover all types of people who love to follow fashion.

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    What is the Key Target Market?

    We have a business plan template for online boutiques and our targeted areas are local people, e-commerce, and social media influencer who can also promote the boutique items differently.

    How to Keep Customers Coming Back?

    There are only two ways to get the customers back to your store or website. 1. Provide the best service to them, give them personal suggestions if they came to the store. 2. Provide discounts and coupons for further shopping. It is the general human behavior that people like to visit such shops where they get treated well, or they get more discounts. We also plan the lucky draw prizes in which the customer gets a little bit more discount. We can also like to provide online discounts, and cashback offers on the website. It will also attract customers. While starting a boutique store, it is challenging to give refunds, but we can treat the customers well.

    Any questions? Get in Touch

    Before providing any discounts, it is really to understand how to write a business plan for an online boutique, so it will work well and get more profits.

    What will be the average receipt of the business?

    Well, the receipt of the business depends on the products that customer is purchasing on the bulk. We can count on that provide some discount if the customer buys bulk products. For the average receipt, the boutique business concepts must be clear and understandable. It is not an easy task to open a boutique store in the market and made it worth it.

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    Marketing Strategy

    To create a successful marketing plan for boutique business; it is necessary to know about the competitors. The fashion industry always has competitors, and it is hard to cover them up all. The first step was to identify competitor positions on the internet.

    After that, we prepare the list of keywords that we want to rank on the internet. We also create Facebook and Instagram ads so more people can easily connect with us. We also provide the best discount offers on our website so customers can directly buy it from the site and even think of giving cashback offers and free delivery.

    Competitive Analysis

    For the best clothing boutiques business plans outline, it is necessary to know about the competitor’s marketing strategy, and it is not just online but in the real world too. To become a player in the market; it is compulsory to know about competitor products and their prices. After that, you can make your own plans and work on it.

    Sales Strategy

    Our primary sales strategy is to provide the best product to our customers and, if possible, then occasional discounts and cash backs too. We also think of running social media ads due to which people can easily connect and make the website mobile friendly so people can easily order products from their phones.

    Sales Monthly

    Well, here below is the chart where you can find out the monthly sales.

    Boutique Business Plan - Sales Monthly

    Sales Yearly

    We are also analyzing the market and its sales. Well, the fashion industry is doing good that here below you can check out in the chart.

    Boutique Business Plan - Sales Yearly

    Sales Forecast

    During our first 12 months, we tried to make profits, but it is necessary to establish the business, so we have these things in the graph.

    Boutique Business Plan - Unit Sales

    Sales Forecast      
    Casual Tops Year 1 Year 2 Year 3
    Blouses $ 127,337 $ 133,704 $ 140,389
    Sweaters $ 38,150 $ 50,139 $ 52,646
    Knits $ 31,200 $ 32,760 $ 34,398
    Pants $ 47,751 $ 50,139 $ 52,646
    Skirts $ 33,839 $ 39,904 $ 40,703
    Dresses $ 26,110 $ 30,710 $ 31,017
    Fashion Designers $ 18,680 $ 21,466 $ 21,681
    Others $ 11,990 $ 14,155 $ 14,296
    Total Sales $ 335,057 $ 372,977 $ 387,776
    2017 2018 2019
    Casual Tops $ 20,588 $ 23,774 $ 24,012
    Blouses $ 17,370 $ 20,176 $ 20,378
    Sweaters $ 15,684 $ 18,272 $ 18,455
    Knits $ 16,447 $ 18,973 $ 19,163
    Pants $ 17,483 $ 20,288 $ 20,491
    Skirts $ 13,874 $ 16,200 $ 16,362
    Dresses $ 9,922 $ 11,670 $ 11,787
    Fashion Designers $ 11,990 $ 14,155 $ 14,296
    Others $ 8,010 $ 9,436 $ 9,531
    Subtotal Direct Cost of Sales $ 131,368 $ 152,944 $ 154,475

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    Personal Plan

    Company Staff

    Personal Plan just not includes the staff members but our digital team as well. Yes, while writing a business plan for a clothing boutique, we found that our staff is much more than a store. Because we are holding two stores, a real store and a digital store, so we have a huge amount of staff members.

    For Boutique Business we will need employee

    • Sweepers to clean the shop and godown
    • Sales team who handle the customers
    • Accounting team handles the finance and daily transaction
    • The digital team who manage the digital store from discount to social media ads
    • The delivery boy who delivers the product to home for e-commerce
    • Loading staff
    • Store manager
    • Security guard

    Average Salary of Staff

    Well, it is the most crucial process for beginners. But in the below chart we mentioned all the details about the salary.

     Personnel Plan      
    Year 1 Year 2 Year 3
    Sweepers to clean the shop and godown $ 11,000 $ 13,000 $ 15,000
    Sales team who handle the customers $ 39,600 $ 42,000 $ 43,500
    Accounting team handles the finance and daily transaction $ 18,400 $ 24,000 $ 34,000
    Digital team $ 16,000 $ 18,000 $ 20,000
    Delivery boy $ 14,000 $ 18,000 $ 21,000
    Loading staff $ 17,000 $ 19,000 $ 23,000
    Store manager $ 25,000 $ 27,000 $ 29,000
    Security guard $ 9,000 $ 11,000 $ 13,000
    TOTAL PEOPLE 8 8 8
    Total Payroll $ 150,000 $ 172,000 $ 198,500

    Charges for Opening Store

    When you’re opening the store, expenses will increase, and profits cannot be seen earlier. It includes property rent/lease, electricity, food, water, telephone bills, internet bills/charges, stock cost, staffing cost, business rates, and so on.

    Financial Plan

    Well, we have a budget plan for our shop. We create a boutique business plans shop that works for a long time instead of a short period. We plan the three year budget for our boutique shop, and we hope it will work like that unless in case of any emergency.

    Important Assumptions

    As per our assumptions, we will follow this plan that will naturally increase our business. In the case of any natural calamities, we are controlling the things on our human conditions. You can check out the graph.

    General Assumptions
    YEAR 1 YEAR 2 YEAR 3
    Plan Month 1 2 3
    Current Interest Rate 7.96% 10.26% 7.96%
    Long-term Interest Rate 8.00% 8.00% 8.00%
    Tax Rate 30.00% 30.00% 30.00%
    Other 0 0 0

    Break-Even Analysis

    We plan to break our analysis and reach up to the level in a one-year only.

    Boutique Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Revenue Break-even $ 34,501
    Assumptions:
    Average Percent Variable Cost 40%
    Estimated Monthly Fixed Cost  $      20,740.00

    Projected Profit and Loss

    As our boutique, shop is working well but we don’t cover up the monthly budget, so we try to cover it up in the next four months.

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $ 311,900 $ 343,090 $ 377,399
    Direct Cost of Sales $ 56,473 $ 59,498 $ 62,473
    Other Costs of Goods $ 0 $ 0 $ 0
    Total Cost of Sales $ 56,473 $ 59,498 $ 62,473
    Gross Margin $ 255,427 $ 283,592 $ 314,926
    Gross Margin % 76.90% 77.69% 77.69%
    Expenses
    Payroll $ 150,000 $ 172,000 $ 198,500
    Marketing/Promotion $ 5,400 $ 5,400 $ 5,400
    Depreciation $ 204 $ 220 $ 220
    Rent $ 21,000 $ 21,000 $ 21,000
    Utilities $ 4,488 $ 4,488 $ 4,488
    Insurance $ 996 $ 996 $ 996
    Payroll Taxes $ 16,073 $ 20,131 $ 0
    Merchant Account Fees $ 1,800 $ 2,000 $ 2,000
    Moving Expenses $ 2,300 $ 0 $ 0
    Redecorating New Location $ 3,000 $ 0 $ 0
    Total Operating Expenses $ 205,261 $ 226,235 $ 232,604
    Profit Before Interest and Taxes $ 50,166 $ 57,357 $ 82,322
    EBITDA $ 50,370 $ 57,577 $ 82,542
    Interest Expense $ 128 $ 0 $ 0
    Taxes Incurred $ 10,562 $ 5,640 $ 12,460
    Net Profit $ 39,476 $ 51,717 $ 69,862
    Net Profit/Sales 12.66% 15.07% 18.51%

    Profit Monthly

    As we are not profiting as per our assumptions, but we are trying to make more sales.

    Boutique Business Plan - Profit Monthly

    Profit Yearly

    Right now, we are very far from our yearly profit, but we are working hard to cross the barriers.

    Boutique Business Plan - Profit Yearly

    Gross Margin Monthly

    The margin lines are now growing thick slowly, and we hope it remains thick.

    Boutique Business Plan - Gross Margin Monthly

    Gross Margin Yearly

    As we can see, the slow, thick lines. We’ll cover-up in this year.

    Boutique Business Plan - Gross Margin Yearly

    Projected Cash Flow

    Boutique Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    YEAR 1 YEAR 2 YEAR 3
    Cash Received
    Cash from Operations
    Cash Sales $ 513,503 $ 599,403 $ 609,402
    SUBTOTAL CASH FROM OPERATIONS $ 513,503 $ 599,403 $ 609,402
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $ 0 $ 0 $ 0
    New Current Borrowing $ 0 $ 0 $ 0
    New Other Liabilities (interest-free) $ 0 $ 0 $ 0
    New Long-term Liabilities $ 0 $ 0 $ 0
    Sales of Other Current Assets $ 0 $ 0 $ 0
    Sales of Long-term Assets $ 0 $ 0 $ 0
    New Investment Received $ 0 $ 0 $ 0
    SUBTOTAL CASH RECEIVED $ 513,503 $ 599,403 $ 609,402
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $ 131,000 $ 122,000 $ 137,500
    Bill Payments $ 275,075 $ 404,006 $ 400,156
    SUBTOTAL SPENT ON OPERATIONS $ 406,075 $ 526,006 $ 537,656
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $ 0 $ 0 $ 0
    Principal Repayment of Current Borrowing $ 0 $ 0 $ 0
    Other Liabilities Principal Repayment $ 0 $ 0 $ 0
    Long-term Liabilities Principal Repayment $ 10,308 $ 10,308 $ 10,308
    Purchase Other Current Assets $ 0 $ 0 $ 0
    Purchase Long-term Assets $ 0 $ 0 $ 0
    Dividends $ 1,000 $ 1,000 $ 1,500
    SUBTOTAL CASH SPENT $ 417,383 $ 537,314 $ 549,464
    Net Cash Flow $ 96,120 $ 62,089 $ 59,938
    Cash Balance $ 103,620 $ 165,709 $ 225,647

    Right now, we are on them idle face where we are not free from the credit, but we can see the profits too.

    Projected Balance Sheet

    Management will monitor the balance sheet monthly, and if found anything improvement, we will discuss it.

     Pro Forma Balance Sheet      
    YEAR 1 YEAR 2 YEAR 3
    Assets
    Current Assets
    Cash $ 103,620 $ 165,709 $ 225,647
    Inventory $ 24,003 $ 27,835 $ 28,113
    Other Current Assets $ 0 $ 0 $ 0
    TOTAL CURRENT ASSETS $ 127,622 $ 193,544 $ 253,760
    Long-term Assets
    Long-term Assets $ 24,599 $ 24,599 $ 24,599
    Accumulated Depreciation $ 4,889 $ 9,778 $ 14,667
    TOTAL LONG-TERM ASSETS $ 19,710 $ 14,821 $ 9,932
    TOTAL ASSETS $ 147,332 $ 208,364 $ 263,692
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $ 33,904 $ 33,143 $ 32,867
    Current Borrowing $ 0 $ 0 $ 0
    Other Current Liabilities $ 0 $ 0 $ 0
    SUBTOTAL CURRENT LIABILITIES $ 33,904 $ 33,143 $ 32,867
    Long-term Liabilities $ 79,692 $ 69,384 $ 59,076
    TOTAL LIABILITIES $ 113,596 $ 102,527 $ 91,943
    Paid-in Capital $ 42,707 $ 42,707 $ 42,707
    Retained Earnings $ -46,108 $ -9,971 $ 61,630
    Earnings $ 37,137 $ 73,101 $ 67,412
    TOTAL CAPITAL $ 33,736 $ 105,837 $ 171,749
    TOTAL LIABILITIES AND CAPITAL $ 147,332 $ 208,364 $ 263,692
    Net Worth $ 33,736 $ 105,837 $ 171,749

    Business Ratio

    The business ratio can be seen shortly.

     Ratio Analysis        
    YEAR 1 YEAR 2 YEAR 3 INDUSTRY PROFILE
    Sales Growth 0.00% 16.73% 1.67% 2.95%
    Percent of Total Assets
    Inventory 16.29% 13.36% 10.66% 55.38%
    Other Current Assets 0.00% 0.00% 0.00% 25.29%
    Total Current Assets 86.62% 92.89% 96.23% 88.70%
    Long-term Assets 13.38% 7.11% 3.77% 11.30%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 23.01% 15.91% 12.46% 24.77%
    Long-term Liabilities 54.09% 33.30% 22.40% 5.35%
    Total Liabilities 77.10% 49.21% 34.87% 30.12%
    NET WORTH 22.90% 50.79% 65.13% 69.88%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 60.11% 60.37% 60.63% 41.89%
    Selling, General & Administrative Expenses 40.82% 41.05% 41.07% 21.02%
    Advertising Expenses 0.00% 0.00% 0.00% 3.78%
    Profit Before Interest and Taxes 11.65% 18.42% 16.65% 3.15%
    Main Ratios
    Current 3.76 5.84 7.72 3.37
    Quick 3.06 5 6.87 0.87
    Total Debt to Total Assets 77.10% 49.21% 34.87% 40.19%
    Pre-tax Return on Net Worth 157.26% 98.67% 56.07% 7.14%
    Pre-tax Return on Assets 36.01% 50.12% 36.52% 11.93%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 7.23% 12.20% 11.06% n.a
    Return on Equity 110.08% 69.07% 39.25% n.a
    Activity Ratios
    Inventory Turnover 7.93 9.16 8.58 400.00%
    Accounts Payable Turnover 9.11 12.17 12.17 n.a
    Payment Days 27 30 30 n.a
    Total Asset Turnover 3.49 2.88 2.31 n.a
    Debt Ratios
    Debt to Net Worth 3.37 0.97 0.54 100.00%
    Current Liab. to Liab. 0.3 0.32 0.36 n.a
    Liquidity Ratios
    Net Working Capital $ 93,718 $ 160,400 $ 220,893 n.a
    Interest Coverage 8.86 18.51 19.74 n.a
    Additional Ratios
    Assets to Sales 0.29 0.35 0.43 n.a
    Current Debt/Total Assets 23% 16% 12% n.a
    Acid Test 3.06 5 6.87 n.a
    Sales/Net Worth 15.22 5.66 3.55 n.a
    Dividend Payout 0.03 0.01 0.02 n.a

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