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Copy of fashion2

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by

lol man

on 1 July 2013

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Transcript of Copy of fashion2

Opportunity
Value
Competitive Advantage
Return on Investment
• Low initial investment
• Realistic business to invest in
• Aim for a 20% dividend payout
• Exit Strategy

• Practical and Smart
• High quality and service
• ''Stairway'' to designer dresses

Financial Plan
Investment
36.000 Euro
Loan request
• Request of 18,000 Euros
• Interest Rate of 10.26%
• Financial Institution: Banco de Espana
• Period of 36 months
Plus...
• Contribution of 18,000 Euros from investors
Goals
Year 1
Year 2
Year 3
• 1,500 rentals
• Revenue of 144,000
• Net Income of 10,000
• Less than 13,000 in debt
• Two Full Time Employees
• 20% dividend pay-out ratio
• 1,800 rentals
• Revenue of 172,000
• Net Income of 20,000
• Less than 7,000 in debt
• Add a part-time employee
• 20% dividend pay-out ratio
• 2,100 rentals
• Revenue of 207,000
• Net Income of 27,000
• Loan completely paid-out
• Add second part-time employee
• 20% dividend pay-out ratio
20% Growth
20% Growth
Revenues & Costs
Revenue
Cost of Good sold
Profit
Rentals
Average Rental Price 83
Number of Rentals per Dress 5
__________
Revenue from Rentals 417
Sales
Average Sale Price 63
Revenue per Dress
Total Revenue per Dress 479
Cleaning Cost
Cleaning Cost per Dress 10
Number of Rentals per Dress 5
__________
Cleaning Cost from Rentals 50
Market price
Average Market Price 208
Cost per dress
Total Cost per Dress 258
Profit Margin
46%
Cost per Sale
54%
Profit per dress
Total profit per Dress 221
Initial Investment = 36,000
Fixed Costs = 152,000
Variable Costs = 54%
Revenue Per Unit = 479
Breakeven
€408,000 in Revenues
3,407 rentals
Month 28
Contingency Plan & Exit Strategy
What if?
• 1,200 rentals the first year instead of 1,500
• Growth rate of 10% instead of 20%
• Net Income for the first year of 3,000€ or less
• Net Cash Flow for the first year of -4,500€ or less
Contingency Plan
If during the first year we do not reach our financial goals: Change Personnel Plan and keep only 2 employees
By doing this:
• Net Income for the first 3 Years of 24,000 EUR
• Break even point will be reached at the month 35
Exit Strategy
If contingency plan does not work, we will liquidate our business.
• Equity at Year3 = 25,000 EUR
Initial Investment
Goals
Revenues & Costs
Breakeven
Contingency & Exit Strategy
Forecast
NPV = 1,278
Ri = 10.99%
IRR = 25%
WACC = 8.4%
Market
Target
Positioning
Strategy
Purpose
Inventory Planning and Budgeting
Purchase of New Inventory
Inventory Control System
• MOST women have bought at least one dress that only has been worn once

• Renting awareness is low but many women are keen to try

• Fashion expertise is important

• Potential customer for the first year nearly 1,500
Pick your Look
Borrow it from our Closet
Wear it and Enjoy it
Return it to the Store
Organizational Structure
HR Strategy
HOW?
Procurement Process
Selection
Check-out
Renting Period
Return of Item
Rental Process
Suppliers
Customer Feedback
Employee Feedback
CM Data
UPC Barcode
Loss Prevention Tag
"Status Tag"
What is our MISSION?
Smart Shoppers
1,500 Customers
=
Product
Price
Place
Promotion
• Motivated employees is our key to success
• Happy employees = Happy customers
• Flat Organization
• Involvement
• Team Building

• Feedback: monthly meetings & KPI's
• On the job training
• Off the job training
• Autonomy, Mastery, and Purpose
• Monthly team and personal goals

Employee Profile:
• Fashion Expertise
• Enthusiasm
• Excellent Communication Skills
• Willingness to Help
• DISC

Designer Price: 200€
Rental Price: 80€
Designer Price: 125€
Rental Price: 50€
Designer Price: 300€
Rental Price: 120€
Facebook
Twitter
Gold
Silver
Bronze
Full transcript