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Trendy Trails

Executive Summary

Trendy Trails is a retail store for women’s wear with good quality and latest trends.
This business will cater to the needs of women’s from age 14 to 40. Location of the
business is assuming an actual location. Trendy trails is a woman-owned business
currently organized as a Sole Proprietorship. While our initial goal is to open one
boutique, expansion plans include potentially franchising our retail store and/or
building a well-recognized brand name. In turn, we would hope to penetrate a sizable
portion of the online retail market.

Slogan of the business is:

“That never fails”


• To provide women with a boutique that offers a comfortable and approachable

• To showcase quality, well-constructed fashions
• To help women learn what clothing and styles go best with their unique
• To generate buzz and sales through top-notch exclusive services

Keys to Success

1. Having good location near the residential area.

2. Quality product and good relationships with vendors
3. Outstanding customer service


• 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.

Business Description

General description of the business

The fashion and retail industry tends to be overly youth focused. However, by closely
following generational fashion trends as well as our own customers' purchasing
preferences, we will tailor our inventory to meet the specific needs of our clientele.
We will solely focus on the our styles, colors and fits to flatter the women’s of the
category we focus.

Industry background

Women's clothing stores were introduced in Europe in the late 1700s—slightly later
in the American colonies—at a time when productive capability, population, and
prosperity allowed clothing production to move out of the house and into the factory,
and clothes to move into retail stores. These garments of the latest fashion were for
those who could afford to hire out the work of stitching. Trading posts in the frontier
areas carried cloth and some ready-made apparel.

The invention of the sewing machine, the rise of mass production, and the
proliferation of retail stores by the late nineteenth century led people first to sample
and later to rely on ready-made clothing for sale as a reliable means of obtaining
fashionable clothing. In the 1890s, ready-to-wear clothing came into its own, and by
the turn of the century ready-made women's wear was available in abundance in the

United States. By the 1920s, it was considered more fashionable to buy clothing from
a store than to make it at home.

For many years, the department store and the downtown women's shop were the
mainstays of women's wear retailing. Department stores offering a vast selection of
goods and specialty stores catering to unique tastes dotted the urban landscape. For
those with enough money, shopping became a social event. Along with the growth of
women's clothing retailing came the increasing importance of fashion.

Uniqueness of product and service

Trendy Trails will provide services such as Style Assessments, alterations, personal
shopping, and special ordering to customers during store hours and by personal
appointments. Trendy trail's innovative Style Assessments and educational
emphasis in helping women develop their personal styles will enhance our reputation
as a truly unique boutique. The customers will also get the benefit of home delivery of
the purchases made by them within the negotiated time.


This business plan will be used for three purposes:

• To map out all the necessary components to create a successful and well-run
• To provide management with a blueprint to follow\
• To secure financing through private institutions and investors

The Start-up Table which follows details the Start-up Requirements, including Start-
up Inventory and Long-term Assets in the form of Fixtures and POS Equipment.
Start-up Funding will consist largely of owner investment and a long-term loan from
the Small Business Administration. The Start-up Period for this plan runs from
January through July. De Kliek will open on July 15, and we project real sales
beginning in August of Year 1.

Start-up Funding
Start-up Expenses to Fund 45108
Start-up Assets to Fund 87599
Total Funding Required 132707

Non-cash Assets from Start-up 80099
Cash Requirements from Start-up 7500
Additional Cash Raised 0
Cash Balance on Starting Date 7500
Total Assets 87599

Liabilities and Capital

Current Borrowing 0
Long-term Liabilities 90000
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 90000


Planned Investment
Owner Injection 41707
Investor 1000
Other 0
Additional Investment Requirement 0
Total Planned Investment 42707
Loss at Start-up (Start-up Expenses) -45108
Total Capital -2401
Total Capital and Liabilities 87599
Total Funding 132707



Start-up Expenses
Initial Deposit 0
Leasehold Improvements 20000
Rent for Mo. of Improvements 3000
Inventory Analyst 1800
Professional Fees 1050
Insurance 1008
General Startup Costs 6900
Marketing: Packaging, PR, Design 11350
Total Start-up Expenses 45108

Start-up Assets
Cash Required 7500
Start-up Inventory 55500
Other Current Assets 0
Long-term Assets 24599
Total Assets 87599

Total Requirements 132707


Research and analysis

1. Target Market identified

The target market for the women’s wear boutique is the women between age group of
14 to 40 years in Anand and nearby regions.

2. Marketing strategy

Trendy trails recognize the importance of marketing. And to that end, we plan to
promote our retail business with an ambitious, targeted marketing campaign, which
will include a grand opening event, local media coverage, print advertising and a
direct-mail campaign. Our goal is to keep our marketing budget to no more than 5%
of our gross annual sales.

3. Competition

The competitors of Trendy Trails are the existing local brand stores and the branded
showrooms operating in Anand and Vallabh vidhyanagar. The major competitors are
as follows:
• Shubhlaxmi store
• Ayushi
• Anmol
• Other Shops at Super market

4. Positioning Statement

Trendy Trails provides women with upscale clothing and exclusive personal services.
Our main competitive advantage is the unique Style Assessment and education
emphasis in helping women develop their personal style.


Organizational Structure

As a small business, we will have a small staff. Both co-owners will assume
leadership roles within the firm and will be responsible for daily operations,
overseeing marketing efforts, buying merchandise and managing inventory and all
other administrative duties. A small sales staff will assist co-owners with securing
sales, assisting customers and general maintenance of stock on the floor.


Miss. H.K. Solanki will manage Trendy Trails Boutique. She has earned a B.Com
degree from SEMCOM and An MBA degree from CHARUSAT.

Staff members

Trendy Trails will employ a sales staff of 3 part-time employees. These positions are
yet to be filled. However, we feel the labor pool is such that finding qualified
employees will not be an issue. Our sales associates will be paid an hourly wage, plus
commission. Bonuses will be provided with each year of service following an annual
review to encourage employee retention.



Trendy Trails will need Rs.282,000 to get our business off the ground. We are
currently seeking funding from outside investors and business loans.

At this time we have raised Rs.50,000 in equity capital and an additional Rs.12,000
for a specific-use grant. The owner has invested Rs.50,000 into Trendy Trails
Boutique. We are seeking investors for an additional Rs.170,000 in equity investment
and RS.50,000 in loans.

Use of Funds

Funds will be used to pay for renovations, including the outside façade, construction
of fitting rooms, sales counter, painting, carpeting, lighting, decor and display
fixtures. We will also purchase inventory, a cash register, computer equipment and an
inventory management system. The remainder of the start-up funds will be utilized to
cover operating expenses, such as rent, utilities, marketing costs and wages.


Based on our marketing plans, location, store size and product offerings, we expect to
collect annual sales of Rs.285,000 in year one, Rs.375,000 in year two and
Rs.525,000 in year three.

Our average cost of goods sold will be 40%, which leaves us with a gross margin of
60%. Our minimum monthly fixed costs are Rs.15,500 per month, so we will need to
generate sales of Rs.25,833 per month to break even. We will become profitable on a
monthly basis before the end of our first year.

In our third year, we will earn net income of Rs.105,000. The accompanying income
statement demonstrates our company's profitability.

Cashflow Projections

Our business will collect immediate payment from customers, so our cash flow
statement will be substantially similar to our income statement. Our cash flow
statement clearly demonstrates our ability to cover all bills.

Balance Sheet

Trendy Trails will launch with Rs.220,000 in equity capital and Rs.50,000 in loans.
Credit amounts and supplier terms for inventory will appear in our balance sheet as
short-term liabilities.


Our projections are based on the assumption that the economy, consumer spending
habits and population growth in Anand and Vallabh Vidhyanagar will continue for the
foreseeable future.

We must also assume that our present and future suppliers will continue to sell
inventory to us at prices that allow us to maintain our present margins. It is also
important that we are able to hire reliable employees at reasonable wages.