B Plan
B Plan
B Plan
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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, defines 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 finalized.
Finance
• Start-up costs include inventory for the first 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 first 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 profits 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 five 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.
1.1 Mission
• To provide women with a boutique that offers a comfortable and approachable environment
• To help women learn what clothing and styles go best with their unique personalities
• To generate buzz and sales through top-notch exclusive services
1.3 Objectives
• To turn inventory five times and generate $800 in sales per square foot
• To maintain profit 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
A Standard Business Plan Outline
by Tim Berry
What information needs to be in your business plan? What is the order of information
that will make the most sense to lenders and investors? You can answer these questions
with the business plan outlines provided below.
What are the standard elements of a business plan? If you do need a standard business
plan to seek funding — as opposed to a plan-as-you-go approach for running your
business, which I describe below — there are predictable contents of a standard business
plan outline.
For example, a business plan normally starts with an Executive Summary, which should
be concise and interesting. People almost always expect to see sections covering the
Company, the Market, the Product, the Management Team, Strategy, Implementation,
and Financial Analysis. The precise business plan format can vary.
Is the order important? If you have the main components, the order doesn’t matter that
much, but here’s the sequence I suggest for a business plan. I have provided two outlines,
one simple and the other more detailed.
Build your plan, then organize it. I don’t recommend developing the plan in the same
order you present it as a finished document. For example, although the Executive
Summary obviously comes as the first section of a business plan, I recommend writing it
after everything else is done. It will appear first, but you write it last.
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There are also some business tables and charts that are normally expected in a standard
business plan.
Cash flow is the single most important numerical analysis in a plan, and should never be
missing. Most plans will also have Sales Forecast and Profit and Loss statements. I
believe they should also have separate Personnel listings, projected Balance Sheet,
projected Business Ratios, and Market Analysis tables.
I also believe that every plan should include bar charts and pie charts to illustrate the
numbers.
Consider plan-as-you-go business planning. I’ve done a lot of work on this idea lately,
resulting in my new “Plan As You Go” business planning, which is a now a book
published by Entrepreneur Press, available through Amazon.com, Barnes and Noble, and
Borders, and bundled as an eBook with Business Plan Pro. I’ve also added a short video
here to the right, illustrating how the outline could be simpler with a new approach.