Import Boutique Business Plan
BELLISIMO IMPORTS, INC.
891 HenriettaJacksonville, MI 48009
May 3, 1993
Bellisimo Imports is a unique place for shoppers seeking imported Mexican handcrafts, including furniture, decorations, and other home accessories. This plan will provide details on how to approach the design of an import boutique.
- STATEMENT OF PURPOSE
- DESCRIPTION OF THE BUSINESS
- DESCRIPTION OF THE MARKET
- DESCRIPTION OF LOCATION
- DESCRIPTION OF THE COMPETITION
- DESCRIPTION OF MANAGEMENT
- DESCRIPTION OF PERSONNEL
- APPLICATION AND ANTICIPATED EFFECT OF LOAN
- VALUE OF COLLATERAL
STATEMENT OF PURPOSE
Bellisimo Imports, Inc. seeks loans totalling $75,000. The proceeds from this loan will be used to purchase equipment and inventory, obtain store space in Jacksonville, Michigan, perform necessary renovations and improvements, and maintain adequate working capital cash reserves needed to open a Mexican Import retail store. The owner and operator of Bellisimo Imports, Inc., Diane Smith, has pledged as collateral $90,000 of assets in the form of personal stocks, bonds and savings.
DESCRIPTION OF THE BUSINESS
Bellisimo Imports, Inc., is a furniture and accessory store specializing in selling unique Mexican Imports to Jacksonville-area retail customers. At the onset, 100 percent of the store's sales will be retail. Bellisimo Imports, Inc. plans to pursue the interior design community working on a cost plus basis to specifiers in the future. Although margins are lower selling to the design trade, profits are higher due to lower personnel costs and faster inventory turnover.
Bellisimo Imports, Inc., plans to open for business during July, 1993. The store will be open Monday, Tuesday, Wednesday, and Saturday from 10:00 a.m. to 6:00 p.m. and Thursday and Friday from 10:00 a.m. to 8:00 p.m. and occasional Sundays during special events in downtown Jacksonville.
The retail demand for home furnishings and accessories is seasonal and business in Jacksonville fluctuates according to the weather. I feel that Bellisimo Imports, Inc. would atttract business during seasonally slow months due to the uniqueness of the products and competitive pricing. There is no direct competition in the area. I feel that Bellisimo will offer products that will be well-received by the market.
DESCRIPTION OF THE MARKET
Bellisimo Imports, Inc., will provide imported Mexican products not yet available from a single source in the metro area. Our goal is to sell interesting furniture and accessories through a knowledgeable and professional sales staff. Our inviting atmosphere will make customers want to return to the store.
Customers will be attracted by:
- Our convenient downtown location where ample parking is available.
- A local newspaper and magazine campaign.
- Word of mouth advertising from local designers and past customers.
DESCRIPTION OF LOCATION
Bellisimo Imports, Inc., intends to lease 800 square feet of retail space in a two story, brick building located at 327 Maplewood Ave., in Jacksonville, Michigan. The monthly rental cost of this leased space will be $1,400. Included in the lease is approximately 500 square feet of furnished office and storage space along with two bathrooms in the basement. The space adjacent to Bellisimo has been occupied for six years by All the Comforts of Home, are putable home furnishing store. Bellisimo intends to perform minor leasehold improvements, such the installation of pine board flooring, a sales counter, and window signage. These leasehold improvements are currently being negotiated into the lease.
DESCRIPTION OF THE COMPETITION
Americana Antiques A creative retail store specializing in one-of-a-kind antique furnishings. It's showroom is inviting and similar in size to Bellisimo Imports, Inc. It is located on Chicago Ave. in the art gallery district of Jacksonville.
Exclamations A large franchise furniture showroom specializing in upholstered furniture located downtown. Exclamations is well-financed and uses an extensive advertizing campaign. The Exclamations shopper is primarily looking for larger household items that have to be custom ordered. However, it offers a large array of mass produced accessories for sale from it's retail floor.
Arte Latino Americana Located in downtown Birch City, Arte Latino Americana specializes in Latin American handcrafts. The store has been in business several years and it's staff is friendly and knowledgeable. There will be some duplication of items between our stores, but Arte Latino Americana only carries smaller ticket items.
There are several stores that attract shoppers to the downtown area for home furnishings. All of them, however, specialize in European and American antiques.
DESCRIPTION OF MANAGEMENT
Diane Smith was born in Jacksonville, Michigan and has lived in the area all of her life, with the exception of her college years. While studying for a degree in Interior Design she had the opportunity to study abroad on two different occasions and has traveled extensively throughout Europe and Mexico. Since graduating from Michigan State University in 1988, she successfully utilized her interior design and selling skills as an account executive/design consultant in both residential and commercial furniture sales. She currently lives in Jacksonville, Michigan and is unmarried.
Ms. Smith is young and energetic. She believes that her determination along with product knowledge and selling skills will help make Bellisimo a success. Ms. Smith knows several designers in the area and is an active member of the community. Ms. Smith will be responsible for all major operating duties of the store.
Ms. Smith's salary will be $27,000 during the first year of the store's operations to enable the business to pay off start-up costs. She currently rents a two bedroom flat with a roommate and has the opportunity to move into her parents' home should her personal expenditures become overly burdensome. During the store's second year of operation, Ms. Smith will be paid a salary of $30,000, with any profits returned to the business.
In order to augment her skills, Ms. Smith has enlisted the assistance of Shawn Doran (J.D., C.P.A.), Paul Timmons of Timmons, Clancy (J.D.), and Dr. T.A. Armstrong to help in making business decisions.
DESCRIPTION OF PERSONNEL
Bellisimo Imports, Inc., will hire one part-time employee in approximately five months to work with retail customers and to re-stock the showroom. He or she will be paid $6.50/hr. to start for evening and weekend hours; no fringe benefits or overtime are anticipated. During the second year of the store's operations, one full-time employee will be hired on a salary plus commission basis.
APPLICATON AND ANTICIPATED EFFECT OF BUSINESS LOAN
The $75,000 loan will be used as follows:
|Deposit on Maplewood store||$2,800|
|Graphics Package, Paper Produucts||$600|
|Phone Install/Security Deposit||$310|
|Utility hook up||$20|
The inventory will be purchased initially by the truckload to lower the cost of importing and to maintain a well-stocked showroom.
The renovations will involve: installation of natural pine flooring in the retail showroom and application of a faux paint finish to the walls and ceiling to provide a Mexican ambience to the store.
The equipment to be purchased will enable the store to operate efficiently on a daily basis.
The working capital will enable Bellisimo Imports, Inc. to meet current expenses, offset negative cash flows in the beginning (as shown in the Income Projection sheet), and to insure growth of the business.
Royal Crest Bank will hold the reserve line of credit that will be used to take advantage of special opportunities and to meet emergency needs.
Bellisimo Imports, Inc. is a retail store in Jacksonville, Michigan specializing in furniture and accessories made in Mexico. Diane Smith, the owner and operator, will borrow $75,000 to lease space at 327 Maplewood Ave., perform necessary renovations and improvements to the space, maintain a cash reserve, and provide adequate working capital for anticipated expansion of the business. This amouunt will be sufficient to Bellisimo throughout the start-up phase so that the business can operate on a professional and successful level.
VALUE OF COLLATERAL
|Ford Motor Company||$1,036|
|Prudential Growth Fund||$12,509|
|Standard Federal and other Savings Accounts||$93|