edna'sbusiness plan

8/6/2019 Edna'sBusiness Plan

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THE ART INSTITUTE OF SEATTLE

Ednas

Business Plan

Ellen J .Cha

6/10/2011


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Executive Summary

Mission Statement

Product/service

Ednasis a specialty apparel boutique dedicated to providing customer satisfaction with excellent

merchandise, and an enjoyable atmosphere at an excellent price/value for every outfit.

There is an outfit for every occasion. Ednaswill be a place where women come to look and feel

beautiful; whether it is for a wedding reception, birthday party, or just because they had an

unpleasant day, we want to be there for all our shoppers fashion needs. We will not only outfit our

with the latest trends in dresses, skirts, tops, and accessories, but we will also include excellent

customer service with attentive and knowledgeable staff.

To achieve our objective of becoming a one stop shopping destination with excellent customer

service, we will put extra care in the marketing of our boutique. In addition to this, we will invest in

the training of our sales staff to be able to cater to the needs ofEdnasclients. This may include

increasing our budget to be able to meet this special attention to our employees, but we think it willbe an investment that will show results with loyal customers and constant customer referral. Ednas

firmly stands by the idea of having the right people (employees) on board resulting in delighted

customers.

Customers

Our customers will be women ages 18-30 who are fashion forward and enjoy dressing for every

occasion.

Location & Market

Location will be in Austin, Texas, a few blocks away from the UniversityOf Texas, Austin. The

majority of our clients will work or attend the university, which makes about 40% of our market.

Opening Date

May 5, 2012

Funding/Offering

Current Funding Sources

y 40% Personal fundsy 50% Bank of Americay 10% Relatives


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Executive Summary

Success Factors

y Geographic locationo Warm climate, great for dresses and trendy clotheso A few blocks from the University of Texas, Austin.o Competition in area, which will create foot traffico Store located with a larger amount of street parking on either side of the

Guadalupe street

o Austin, Texas, developing city Top 10 places to live

y Target Marketo Intended consumer widely available in the areao Texas culture of target market demands trendy apparelo Main target market will always be present as long as the University of Texas,

Austin is still in business

y Environmento Professional serviceo Relaxedo Merchandising set for appealing and easy shopping experience

y Staffo Willing and bright staffo Knowledgeable about producto Staff will be hand-picked by managers of high standards

Staff employment process will be largely about finding the right peoplefor the job

y Merchandisingo Unique and sought out merchandiseo Quick turnover in unique products results in more buying in and out of seasono TargetMarket abundantly in the area who seek for unique merchandise


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Executive Summary

Section Summaries

The Company Overview

y Ellen Cha owns and operates her sole proprietorship business in Austin, Texasy Ednas will be a specialty boutique with emphasis on quality and unique merchandise.y The overall strategy of the business will be to become known as a unique boutique with

exceptional merchandise at a great price

y The strategies we will use to gain presence will be through advertising mediums that willreach our demographic; such as twitter, facebook, linked in, etc.

y Our objectives will include short term and long term that will range from internetpresence to being a bigger part of our community though music festivals and parades;

such as the film festival, Christmas parade, and the reggae festival.

y Our contributions to these events may be funding through sale of merchandise at theEdnas boutique, or featured items as donations in the parade/festivals.

Market Analysis

y Identifies customer as a 18-30 year old who are fashion consciousy Target market located in Austin Texas where Ednas will be locatedy Competition Include:

o Urban Outfitters- W 24thSt & Guadalupeo AGACI -2901 SCapital of Texas Hwyo Forever 21- 2901 SCapital of Texas Hwyo BCBGMaxazria-2901 SCapital of Texas Hwy

y Indirect Competition: Long Horns-University of Texass Football teamy Marketing environment:

o Market size growth expected 33.9% during 2010-2020o Economy expected to come out of recessiono Leisure ofMarket in area

Theaters, Restaurants, Parades/Festivals/Holiday events,Marketing Strategy Plan

y Promotional plan detailed with categories of apparel and vendorso Product with push for greater margin

Unique products Affordable prices

y Tactical Plano Gantt Chart 12 month prior to opening (May 23, 2012)o Gantt Chart 12 month post opening

Advertisingy Facebook


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y Daily Texan, Austin Chronicles, etc.y Next season buying

o Traveling out of the country arrangementso OpeningDay:

May 23, 2012y Parasol and $35 promotional cards

y Pricing Plano Price range of $5.95-79.95

Markups: 400-500% Markdowns: 1.) 35% 2.)25% 3.) 15%

o Terms of payment 5/10 net 30y Distribution Plan

o Forms of payment Discover, AMEX, Visa, Mastercard, Checks, and Cash

o Shipping/Pricing

UPS in 3rd

year of business

Operations Plan

y InventoryControl states the ways in which all merchandise will be accounted fory Management functions will include the guideline to staff responsibilitiesy Human resources willy Facilities maintenance states the maintaining of smoother business operationsy Customer service identifies

Financial Plan

y Finance Includeo Best and worst case closing and opening balance sheetso Best and worst case project income statementso Graphs and charts of progress

Appendices

y Include 3 sections that contain the resume, citations of all research, and extended plansof going on the web and floor plans.


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Company Overview


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Company Overview

Owner and Organization

Basic Business Concept

Ellen Cha founded Ednas after obtaining a fashion merchandising and marketing degree at the

Art Institute of Seattle. Ednas is a fashion boutique that sells apparel, accessories, and footwear. The

location ofEdnas is Austin, Texas. Ednas fashion is fast, made of quality, and unique. This is why we

have chosen the location (Austin, Texas) with much consideration and research of the culture, developing

growth, and demographic. Aside from our geographic location, the location in Austin is on Guadalupe

Street and W 24th, which is just minutes away from the University of Texas, Austin. We will cater to the

higher education market, including colleges, universities and professionals.

We believe in the location and the product ofEdnas. The growth of Austin has been substantial

(Citation) and has been named as one of the top ten best places to live in the United States. The product

will stand for itself. Much of the merchandise imported and will take a substantial amount of time

planning to accommodate the cost of shipping as well as traveling for our buyers.

Legal form and ownership

Ednas is a sole proprietorship; which will be beneficial due to the flexibility it will allow the

business to change with the growing trends. This will also mean that we must be more diligent with our

trend forecasting and buying, to be able to keep up with what is current and popular


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Company Overview

Owner and Organization

OrganizationChart

Operations

Inventory

Customer

Facilities

Forecasting

Buying

Tracking

Quality

Complaints

Returns

Referrals

Maintenance

Security

Legal (Eric Kim)

Ellen Cha Owner Administrative

Office

Finance

Planning

Phone

Personnel

Billing

Government

Bookkeeping

Taxes Accounts

Payable Accounts

Receivable Payroll

Forecasting

Planning

Budgeting

Cost Control

Product Analysis

Marketing

Research

Promotion

Sales

Demographics

Psychographics

Forecasting

AdvertisingSales

Promotion

Sales Goals

Customer Service

Customer Education


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Company Overview

Overall Strategy

GanttChart 12 monthprior to Opening

We have made a Gantt chart to clearly identify the process before Ednaswill be opening up for the

public. Ednaswill set a time limit of 12 months to prepare for the debut of our first retail business. In our

Gantt chart we will identify the time it will take for our plans to be approved, loans, building lease agreement,

interior design, contacting vendors, ordering displays, hire associates, and advertising. We have estimated the

amount of time that each one of these projects will take and will assist us to stay on track.

June

y Finish plan and receiveapproval.

o Know the specifiedloan amount

o Have demographicand location set

July

y Plan completelyapproved

y Visit bank for loanconsultation

y Begin looking atleasing buildings in

Guadalupe Street

location

August

y Loans completely approvedy Location set and ready for

renovation

y Leasing of buildingo Begin paper worko Begin analysis of

store and what is

needed.

September

y Building lease approvedy Interior design ideas

formulated

y Interior design beginso Visit furniture storeso Consult with interior

designer/architect

on plans

October

y Continue interiordesigning

y Exterior designbegins

November

y Continue interiordesign/renovation

y Continue exteriordesign/renovation

y Contact vendors formerchandise

y Begin choosing merchandiseo In state buyingo Out of state buying

y Advertising begins


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December

y Finish interior designy Finish Exterior design

o Cover Exterior untilopen day.

Cover withwhite/black

with sign

telling of

Ednas

opening

day.

y Buy merchandiseo Order all

merchandise with

agreement of 5/10

net 30.

y Begin looking to hireo Post signs and put

onto craigslist.

y AdvertisingCont.o Austinian Timeso The Daily Texan

January

y Finish negotiationwith vendors

y Continuepurchasing

merchandise

o Inventorydelivery

begins

y Start hiringo Sales

associate

o Managerso Buyerso Cashiers

y AdvertisingCont.o Austin

Chronicles

o Austin isburning

February

y Finish all buying ofMerchandise

y Begin training employeesy Inventory deliveries

throughout month

y Advertising cont.o Facebooko Austin 360

March

y Finish Training employeeso Begin arranging

inventory

y Advertising cont.o The Daily Texan

y Inventorydeliveriesthroughout the month

April

y AdvertisingCont.o Facebooko TheDaily

Texan

May

y AdvertisingCont.y GRANDOPENING

o May 23, 2012


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Company Overview

Overall Strategy

Company Objective: ShortTerm (1year)

o Create a shopping environment that is comfortable and easy to shop in Hire staff with appropriate attitudes and willingness to help Buy merchandise that is trendy and appropriate for the target market Merchandise product through visuals and product displays efficiently

o Become better associated with the community Join events of the town such as Texas BookFestival, Austin CityLimitsMusic

Festival, Austin Film Festival, Keepin It Weird Festival

Attend meetings and give input for big holiday parades such as Chuys ChristmasParade and Austins Pride Festival

y Sponsor through donating apparel Attend different churches in the area and promote through donations in community

service

o Establish customer base and loyalty through advertising Facebook and twitter presence University of Austin, Texas flyers and newspaper Word of mouth through new employees receiving discounts from store

Company Objective: LongTerm (3-5 years)

o Internet Presence Online active shopping catalog

y Browse as well as purchase functions available Extended Facebook and Twitter to create more brand loyalty through the use of

advertising sales and exclusive events for members connected though these medians

Ednas boutique blog spoty Trends for the Ednas shoppersy updates on latest and upcoming trends that are seen in Ednas boutique


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o Expand advertising Advertising through newspapers around town such as Austin Chronicles, Austin

Business Journal, Austin 360, Austin Monthly, and the Daily Texan.

Advertising through Facebook, Twitter, and other networks Reciprocal linking of different boutiques through their website.

o Sponsoring of events Community service sponsoring

y Austin Community foundation1y Front steps- helping homeless children2y Dress for Success-Austin 3

Exclusive shopping events for clients who sign up to be a membery Private shopping before merchandise hits the floory Exclusive mailed coupons

o 20-30% off new season apparely Personal invitations to shop sales before public advertising

Festival, parades, and holiday event sponsoring such as Music Festival, FilmFestival, Reggae festival, and Buys Christmas Parade. At these events we will try to

accommodate people involved and exposed in the event with Edna attire.

1http://www.austincommunityfoundation.org/?nd=goals

2http://www.frontsteps.org/

3http://www.dressforsuccess.org/affiliate.aspx?pageid=1&sisid=95


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Company Overview

Company Resource

Management Structure

Our management team will be small during the first year ofEdnas. Ellen the Owner will hire

2 managers and 2 to 3 associates for the first year of operation. After a year we will continue the

hiring process and hire as needed. We want to make sure that our management team is reliable and

willing to commit working long hour days and little vacation days for the first year of operation. We

will compensate/reward those that commit to us after a year of operation.

Financial

y 40% personal fundsy 50% Bank of Americay 10% relatives

Basic Orientation

The productssold at Ednaswill be unique which will increase marginprofitability.Ednas is

surrounded by a few stores that sell to a similar demographic. Our location is a primary spot for our

demographic which is located on the main strip of the UniversityO

f Austin, Texas; this makes up80% of our business and will continue to bring on this niche market of students for years to come.

Ednas will be appealing to students mainly because of our price point of $12.95-79.95 and the

reputation of trendy apparel and accessories. Being located in a primary location will bring foot

traffic leading to sales and word of mouth advertising.


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Company Overview

Overall Strategy

Expected Problems

y Keeping up with technological advanceso Read and learn about new technologies through newspaper, magazine, and

current news broadcasting

o Keep store computers and other technologies updatedy Competition in a similar location

o Enhanced advertisingo Buying of versatile product to attract consumerso Thorough research of trends and continuing to update inventory

y Staff rehiring regularityo Stable and responsible managers (atleast 2)o Get an idea of trends of student employeeso Network through employees of younger students if current employees are about

to graduate

y High theft locationo Always have two people working during business hourso Count inventory once a month

y Difficulty keeping up with the trends because of business operationso Current events updater such as magazines, television, fashion blogso Limit Fashion city visits in slow months

Plan out trips for thorough research of trends

edna'sbusiness plan

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