Our intent is to provide the community with unique clothing they would normally purchase outside of the state.
The business will be financed with $18,299 of the owners' money plus $35,444 from a business loan. Sales are estimated at $187, 500 per year by the first year.
Total start-up expense (including fixtures, equipment, and grand opening) is $53,743. With the owners' investment of $18,299, the amount of additional start-up funds needed are $35,444. We estimate our inventory to turn over 8 times a year.
The details are included in the following chart and table. Starting inventory will be $19,000 with the markup of up to 100 percent.
The name is registered in Hartford County under an assumed name.
Boston Rags Clothing Store's primary goal is to find customers and keep them coming back.
Retail profits can be as high as 65-85 percent on clothing and accessory pieces.
The sales and profit margins in a specialty clothing and accessory store are higher than the average retail store. The urban clothing market is the most exciting, fastest growing market for consumers.
Nancy Seymour will hold 50 percent ownership and Joanne Arbor will also hold 50 percent ownership.
It will be set up as a partnership at start-up and then phase into a Limited Liability Corporation by the second year. We will not be offering benefits for the first couple of years. The inventory will be purchased through several vendors that include: BRG Sportswear, Inc., White Sail, USA 66, Wonder, Inc., ABX, and Mark Zap Clothing, Inc.