Are you writing an online boutique business plan? If YES, here is a sample clothing store business plan financial projection, cost, budget & forecast suitable for investors. When it comes to starting a clothing store business the major areas that you look towards spending the bulk of your cash is in of course renting or leasing a standard store facility.
Aside from that, you are not expected to spend much except for paying of your employees and the stocking of your store. This is the key areas where we will spend our start – up capital;
Startup Expenditure (Budget)
- The Total Fee for Registering the Business in California – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Mary & Mack Clothing Store™ in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for Shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – $2,500.
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory (stocking with a wide range of both locally and imported quality clothes and fashion accessories from different manufacturing brands) – $70,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $7,000
- Miscellaneous – $10,000
TOTAL EXPENSES: $312,980
We would need an estimate of $500,000 to successfully set up a standard and well stocked clothing store in Los Angeles – California. Please note that this amount includes the salaries of all the staff for the first month of operation.
Financial Projection
Sources of Income
Mary & Mack Clothing Store™ is established with the aim of maximizing profits in the clothing store (boutique) industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of clothes and fashion accessories from a wide range of fashion labels to a wide range of customers.
Mary & Mack Clothing Store™ will generate income by retailing the following items;
- Women’s clothing
- Men’s clothing
- Children’s clothing
- Newborn clothing
- Maternity Clothing
- Footwear (Shoes, Canvas, Sandals and Slippers et al)
- Other fashion accessories (belt, handbags, sun shades, caps, hats and wristwatches et al)
Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with clothing store business, the larger a clothing store (including varieties of quality clothes and fashion accessories at affordable prices), the larger the numbers of customers that will patronize them.
Although we may not be as large as the biggest clothing stores or retailers in the united states. But we will ensure that within our capacity we make available a wide range of clothes and fashion accessories et al from different brands both local and foreign manufacturers in our store. Below are the sales projections that we were able to come up with for the first three years of operations;
- First Year-: $75,000
- Second Year-: $250,000
- Third Year-: $700,000
INCOME for First Year:
Women’s cloth : selling women’s jean at the rate of $22
- 1,000 pairs of jean sold will cost $22,000
Men’s cloth : selling men’s trouser at the rate of $28
- 1,000 pairs of trouser sold will cost $28,000
Selling shorts at the rate of $25
- 1,000 pairs of shorts sold will cost $25,000
TOTAL INCOME : $75,000
ON-GOING OPERATIONAL EXPENSES:
- Operational cost for second quarter of the year (salaries of employees, payments of bills et al) – $60,000
- Operational cost for third quarter of the year (salaries of employees, payments of bills et al) – $65,000
- Operational cost for last quarter of the year (salaries of employees, payments of bills et al) – $70,000
- Other miscellaneous expenses – $14,000
- Office supplies (printer, stationaries et al) – $10,000
- Credit card processing fees – $1,000
TOTAL $220,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.