Rachel Davis
Rachel.Davis@Colorado.edu
CJ Manning
CJ.Manning@Colorado.edu
Darci Naftulin
Darci.Naftulin@Colorado.edu
Jon Whiteley
Jonathan.Whiteley@Colorado.edu
Table of Contents
I. Executive Summary
II. Introduction 3
i. Mission
ii. Business Structure and Strategy
iii. Competitive Advantage
iv. Target Market
III. Restaurant Location and Initial Capital/Lease Financing Plan
10
i. Location Specs
ii. Neighborhood
iii. Demographic
iv. Competition in Area
v. Inside store Photos
vi. Warehouse & Office Space
2
IV. Product Plan………………………………………………………...17
V. Supply Chain Plan
i. Potential Suppliers
ii. Chosen Suppliers
iii. Inventory Management Strategy
VI. Revenue and Product Variable Cost Analysis
i. Raw Materials Cost
ii. Product Pricing
iii. Three Year Forecast
iv. Revenue Analysis
v. Loan???
VII. Equipment
3
i. Receiving and Storage
ii. Retail Equipment
iii. POS Equipment
iv. Office Supplies
v. Designer Supplies
vi. Bathrooms
vii. Miscellaneous
viii. Total Equipment Cost
VIII. Floor Plan Layout
IX. Human Resources Staffing Plan
i. Staffing Plan
ii. Employee Values
iii. Hiring Process
4
iv. Cost Analysis for HR Staffing Plan
v. Employee Benefits (Cost to offer benefits)
X. Financial Analysis with Three-Year Forecast by Year (Jon)
i. Anticipated Income Statements
ii. Anticipated Balance Sheets
iii. Key Assumptions and Findings
XI. E-Commerce Plan…………………………………………………19
XII. Non-Human Resourcing Plan
XIII. SWOT Analysis
XIV. Process Maps
i. Flowcharts
ii. Cross-Functional Map
iii. Relationship Map
5
b.
XV. References……..……………………………………………...…..27
6
7
I. Executive Summary
II. Introduction
The goal of this proposal is to provide a detailed and compelling business plan
for the rising women’s apparel company, Empire Club, LLC. This proposal will serve
as a guide for investors in hopes of sparking an interest in becoming a part of a
ground-breaking and socially responsible company that is Empire Club. The following
pages describe every aspect relevant to the development and success of Empire Club.
Here at Empire Club, we have streamlined the entire shopping experience by
incorporating technology and professional fashion expertise into a revolutionary
service with a dynamic array of products. Consumers these days are looking for the
simplest and most personalized shopping experience. The hassle of dressing rooms
and a lack of customer service have led the public to resent the shopping process as a
whole, particularly women. Our purpose as a business is to provide customers with a
unique shopping experience that both minimizes hassle and maximizes shopping
efficiency. Empire Club provides an innovative way for female customers to shop.
Customers who are a part of the Empire Club not only receive monthly clothing
bundles tailored to their specific body type and style, but are also giving back to
impoverished women in need of professional guidance and clothing in order to get
back on their feet.
8
Mission:
Empire Club strives to provide tasteful and trendy business attire to young
female professionals in a convenient and socially responsible manner. Our mission is
to improve the shopping experience of busy professional women who simply do not
have the time to shop for the most stylish professional or business casual outfit every
weekend, as well as to better the surrounding community of unemployed women. In
today’s economy many women find themselves unprepared for jobs in the
professional business world simply because they do not have the funding to purchase
professional business attire or do not know what is business appropriate. Empire
Club aims to help young women prepare for professional jobs in the business world
through a 10% donation to Dress for Success on any given bundle purchase.
When a customer purchases one of our customized and fabulous fashion
bundles online or in-store, Empire Club donates 10% of that purchase to the Dress for
Success non-profit organization to provide necessary business clothing and guidance
to a woman in need. Our biggest goal in providing these donations is to inspire and
empower young women to claim their role in the professional workforce by granting
9
them the necessary clothing for job interviews. Dress for Success teaches young
women that success and prosperity can be achieved through hard work,
determination, and initiative. It’s time for all women to take their place in the
business world and stop at nothing to achieve the American Dream.
Business Structure and Strategy:
Empire Club is structured as an LLC, or limited liability company in order to
minimize our liability as owners and to negate double-corporate taxation. We plan to
achieve our mission through developing an intuitive online component as well as a
dynamic shopping experience at our retail location. The two will work in conjunction
with each other to contribute true value to our customers; the value of having more
time to spend on the important aspects of their busy life; the value of a trendy and
impressive professional wardrobe that gets them noticed for the right reasons.
Products and Services Provided:
Upon entering our website, customers will learn about how becoming a
member of the Empire Club works and then be prompted to create a free 5-step style
profile as seen on the following page.
10
5 Step Style Profilei ii:
11
12
The 5-step style profile lets women pick and choose their unique body shape,
what size top and bottom they normally wear (0-12), what styles of clothing they
prefer out of three provided examples, what colors they usually dress in (warm,
bold, or neutral), and whether they are looking for professional business attire,
simply a business casual outfit, or want both. We will then send them a fashion
bundle hand-picked by one of our stylists each month. Here’s how it works.
1 Sign up to meet your stylist:
Once you complete your style survey, we’ll connect you with a real personal
stylist in your area who is guaranteed to provide the best of service, and meet
your needs in your size, style, and preferences.
2 Preview your package before it ships:
Each month your stylist will handpick a selection of clothing from our wide
variety, send you a preview online via email. After you review the items,
approve, or remove the items that don't work and your package will be
shipped straight to your door.
3 Only pay for the clothes you keep:
Take 5 days to try everything on, and then keep what you like and send the
rest back. You will receive an email survey 24hrs after your package is
delivered, let us know what worked. If something doesn't fit right or you'd
13
prefer another color, let us know and we'll get that shipped right away.
Shipping is free both ways, and you can request new items any time
you'd like.
If any customer is looking for a more personal touch, the services that are
provided in store are a unique way for that particular woman to actually meet the
stylist in person, who can size and measure each individual and then offer their
assistance with providing current styles and fashion for that particular month. The
store component of our business will also carry over the easy-to-use online platform
by allowing each customer to come in and create a 5-step style profile on a number
of iPads at the front of the store. From there, a stylist can direct them to what they
would have chosen for the customer if the same profile was filled out online. The
style profile is key because it not only allows for a more personalized shopping
experience, but also allows Empire Club as a business to record their preferences for
easily accessible future suggestions.
Competitive Advantage and Two Main Differentiators:
We strive to provide a dynamic and intuitive shopping experience for the on-
the-go young female professional through both our personalized service and socially
responsible attitude. The utility provided by the e-commerce side of the operations
of Empire Club is especially unique and is one of our main competitive advantages.
Through our subscription based online component we deliver convenient and
customized style right to our customer’s doorstep. Women will be able to go online,
14
pick and choose their body type and what styles suit their taste, and order a look
online that will be shipped to them directly. Online subscription clothing companies
such as FiveFour and Trunk Club provide pricey casual and professional wear only
geared for men. Empire Club will be the first store of its kind to offer honorably
priced, superior quality, and fashionable work wear for women. Times are changing
and women are quickly becoming pillars of the corporate world, while needing to
maintain a professional wardrobe that is both fashionable and appropriate. Unlike
the simplicity of men’s professional wear, women enjoy various styles and types of
clothing that create versatility in their wardrobe.
Another huge differentiator of Empire Club is our socially responsible
component of our business. Unfortunately, many women in the US are unable to
afford the appropriate professional clothing necessary for job interviews, denying
them the opportunity to reach their full potential simply due to wardrobe
restrictions. Empire Club is partnered with Dress for Success, a non-profit
organization that provides women with the necessary resources and tools to go out
into the world, get a job, and prove their worth. Something as trivial as clothing
should not be a factor in whether or not someone has the ability to thrive in the
work world, but in our society dressing the part plays a large role in maintaining
authority. For each wardrobe bundle purchased online or in-store, Empire Club will
donate the 10% of the sale to Dress for Success, helping to style less fortunate
female professionals and give them the opportunity to succeed as a well-dressed
matriarch. This not only makes a difference in our surrounding community, but also
promotes Empire Club as a leader in ethically responsible business. This steadfast
15
example we plan to set is one we hope other businesses will follow to unite in
bettering the immediate community of women in need.
Emphasis on Corporate Social Responsibility
Empire Club Strives to service the community of young female business professionals
through our partnership with Dress for Success. Dress for Success is a nonprofit organization
that aims to prepare women for a professional career in the workforce through donations of
professional clothing, volunteer time, and patronage. Through customer subscriptions for
the monthly wardrobe bundles, Empire Club is able to donate 10% of each bundle purchase to
the Dress for Success foundation. Society has created unavoidable challenges for women to
rise to power in the workforce; programs such as Dress for Success provide tools to train
women for corporate job interviews so that women may claim their role in the
workplace. Since our shoppers are all young business professionals, they understand the
value that proper professional training provides to less fortunate women.
Not only will this raise awareness about a truly astounding organization, but also
customers will be more inclined to join the wardrobe subscription program knowing that
their money is going to a good cause. Monthly wardrobe bundles are our most expensive
retail strategy so any way that we can entice customers to subscribe means an influx in
revenue. Our partnership with Dress for Success creates goodwill for our company, as well
as benefits the community that directly impacts our target market. By helping women join
the professional workforce we are inadvertently creating a larger population of our target
market, and thus the success of women in the workplace correlates to the success of our
store. EDIT****
16
The Genius of the Style Profile and Bundle Subscription Service:
The ground-breaking customer service experience we provide here at Empire Club is made
possible by our 5-Step Style Profile. Upon completion of the 5-Step Style Profile, each new
customer’s unique style, body shape, color preferences, and top/bottom size are stored in
our style database on the cloud. Each wardrobe bundle will consist of anywhere from two to
four different products, each of which are awarded point values depending on how quality
the piece of clothing is. The total number of awarded points for each bundle is 8. Ultimately
the final outfit within each bundle is created based on discretion of the wardrobe stylist and
their analysis of the customer’s style profile. The profile allows our stylists at Empire Club
to craft a unique and elegant business outfit specifically for each customer and in the
process, build a long-term fruitful relationship.
We strive for total satisfaction and anticipate many customers to use our service long
after they receive that first wardrobe bundle. Of course the customer can cancel their
membership with Empire Club at any time or even ask us to simply skip a particular month’s
bundle. However we feel that by providing one professional or business casual outfit each
month, this is just the right amount of time for the customer to implement our Empire Club
look into their current wardrobe until they need another fresh option. By keeping up with
the changing trends and with the seasons, we anticipate that a large majority of our
customers will continue their Empire Club subscription year round and hold us as a valuable
shopping buddy they can recommend to friends and family. The subscription based service of
the monthly bundles also allows us to more easily forecast revenue, since every bundle will
cost $120 regardless of the contents.
Since we save and update each customer’s style profile after each month’s bundle is
sent out, we are able to better understand and craft each customer’s style. The style profile
adds value to the shopping experience by streamlining the entire process. Regardless of
which stylist is helping pick out the customer’s wardrobe bundle, they already have all the
17
sizing information and color preferences of that customer on-hand. Every online customer
that fills out the style profile will be prompted to put in their credit card information as
well; so next month’s bundle can be sent to them without them having to go through the
entire checkout process again. This leads to time saved for us, which is carried onto the
customer in order to allow them to focus on the more important aspects of their busy
professional lives.
Target Market Profile:
MEET Lisa profile
Empire Club aims to provide convenience for young female business
professionals, from the ages of 20-35 years old, by utilizing a customized approach to
shopping for trendy and professional business wear. These women we are looking to
appeal to have entered into the professional world and have established themselves
as members of the upper-middle class. We feel that this market in particular is
willing to spend more of their disposable income with Empire Club if they are gaining
additional utility and giving back to the community of fellow women with their
purchases. Many professional women lack the time to commit to a full-blown
professional attire shopping spree. The added stress of trying to constantly be
shopping for what is trendy in order to project a put-together image to co-workers is
something that professional women should not need to worry about. By sending a
personalized monthly wardrobe to our customers we are allowing them to focus their
time on accomplishing demanding tasks at work during the day and nurturing
18
personal relationships with children, friends, family, or spouses when they come
home.
Psychographic:
Our target market of younger professional women value independence and
security both in their jobs and in their lives outside the office. They seek the
security of knowing they look stylish and well put-together without having to be
forced to shop for a new business appropriate outfit every other weekend. Our target
market also possesses a confident, no-nonsense personality and knows what she
wants out of her career and out of her shopping experience. A significant portion of
these women are also young working moms who have plenty to deal with when they
come home from the office. The lifestyle of a professional woman who is also a fulltime mother is one that is not filled with much free time. We seek to provide
convenience, peace of mind, and freedom from the mundane process shopping has
become.
19
III. Physical location and financing plan
Retail Location:
Location #1 (Cherry Creek
Location #2 (Flatirons
North)
2727 E. 2nd Avenue, Denver
Crossing Mall)
1 West Flatiron Crossing,
Broomfield
Lease Term
5 Years
5 Years
Square Footage
1,971
2,104
Neighboring Stores
Kindness Yoga, Hand and
Stone Massage
Express, Ben Bridge Jewelers
Foot Traffic
High
High
Avg Household
$85,000+
$78,401+
Parking
On-site Parking Garage
Garage/Mall Parking Lots
Lease Price
$25,406/month
$32,822/month
Estimated
$7,500 (One Time)
$7,500 (One Time)
1st Month TOTAL:
$32,906
$40,322
1st Year Total:
$312,372
$401,364
Income of Area
Renovation/Start Up
Costs
We decided to open Empire Club’s first location in Cherry Creek North rather
than at the Flatirons Crossing Mall for a couple of reasons. The biggest factor was
cost. Cherry Creek North’s lease term was about $7,000 cheaper per month than
Flatirons. We felt that as a small business on the rise, we needed to remain as cost
20
conscious as possible with something as costly as rent. Another big factor to us was
location. The neighborhood of Cherry Creek had a higher average household income
and is home to many high end shops/restaurants in which our target market already
frequents. Proximity to competition was another factor we considered when deciding
on our location. The available space in Flatirons was directly next door to Express
and Ben Bridge Jewelers. The jewelry store was not as much of a concern as was
Express. Express also provides women with professional and chic clothing and is on
the moderate to high end of the pricing spectrum. Express would no doubt be selling
similar styles, would be able to offer more competitive pricing, as well as broader
product selection with the extensive brand image and supply chain they have at their
disposal. We felt that directly competing with Express as our next door neighbor in
the already competitive world of fashion would not be a smart business move for
Empire Club. Instead, we felt that the neighboring stores, Kindness Yoga & Hand and
Stone Massage, at the Cherry Creek North location would actually help generate
more business for Empire Club. Therefore we decided, after much careful
consideration and research, that Cherry Creek North would be the best candidate for
the home of our first Empire Club location.
Three-Year Lease Cost
Year
Per Sq Ft.
2015
2016
2017
Lease
$12.89
$312,372.00
$304,872.00
$304,872.00
Estimated NNN Total Property
Total Property
Expenses
Costs Per Year
Expense Per Month
$4.76
$9,382.20
$321,754.20
$26,812.85
$9,382.20
$314,254.20
$26,187.85
$9,382.20
$314,254.20
$26,187.85
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Three Year
Total
$922,116.00
$28,146.60
$950,262.60
Location Specs:
Empire Club, LLC. will be located at
2727 E. 2nd Avenue in Cherry Creek North in
Denver. This space previously housed a retail
space and therefore not much will need to be
done to renovate the space for our use. The
space will be leased for a five-year period
22
(with possibility of renewal for multi-year periods) using mostly cash raised from
the sale of bonds for $250,000 per year including basic renovation costs and capital
expenditures on long-term assets. The remainder of the leasing and renovation costs,
about $63,000 for the first year, will be funded through equity financing of an
outside investor. The building includes separate areas for fitting rooms, already has
a restroom installed, is one story in height, and is 1,971 square feet. 200 of the
square feet will be used for storage space for products not on the floor, 1,715 for
the actual floor space. Changing rooms will account for 56 square feet. We expect
our brick and mortar location to generate roughly 60% of our sales, where the
remaining percentage will be through our unique E-commerce division. Therefore we
will only need to hold around 65% of the inventory expected to be sold each month at
this location, with the other 35% being held in our warehouse to be sold/shipped via
online ordering.
Neighborhood:
As stated above, we believe that the Cherry Creek North location will be the
perfect space for our first Empire Club location. It is located in a booming upscale
neighborhood where a significant portion of our target market already shop and
dine. It is also located fairly close to our warehouse and fulfillment center, which is
15 minutes away in Aurora. Empire Club will be located at the intersection of 2nd
Avenue & Detroit Street. The building is conveniently located in Cherry Creek North,
an affluent and hip area of Denver surrounded by many other high end shops and
restaurants. There is also an excellent amount of foot traffic around the area and
23
the proximity to the very popular Cherry Creek Mall is a major plus. Cherry Creek
Mall is home to such major anchor stores as Neiman Marcus, Macy’s, and Nordstrom.
1st Avenue, which runs between Cherry Creek Mall and Cherry Creek North, has an
average traffic volume of 50-100,000 vehicles a day.
Demographic:
It is important to note that the average annual household income for this area
of Cherry Creek is upwards of $85,000 (Figure 1).
The normal clientele that many of Cherry Creek’s
shops cater to are quite wealthy and have a
significant portion of their disposable income to
spend on more expensive items, services, and food.
A significant portion of our target market is in this
income range and will be shopping in this area
anyway and therefore provides an excellent
Figure 1: Cherry Creek Avg Household
Income
opportunity for Empire Club to gain customers.
Within the neighborhood of Cherry Creek, the ratio
of males to female is 2,536 to 3,159 (Realtor.com). The higher ratio of women living
in Cherry Creek definitely swayed our decision when selecting our location. With all
these factors at play, Cherry Creek North makes for an outstanding location that will
allow Empire Club to be successful financially.
24
Competition in the Area:
As stated earlier, Empire Club will be a high-end fashion retailer catering to
busy, professional women. Neighboring shops in the same building complex include
Kindness Yoga as well as Hand and Stone Massage. Both of which serve predominantly
female customers, which plays to our advantage. Neither sells professional type
women’s clothing so we will not have to worry about close-by competition. However
there are a significant amount of high end women’s clothing stores in the Cherry
Creek Mall across the street like Nordstrom, Macy’s, and Express to name a few. We
feel none pose a major threat due to our unique business model that incorporates a
convenient online subscription-based clothing delivery service with a socially
responsible component that betters our surrounding community. None of these major
department stores are fulfilling the need that we strive to solve.
Store Layout
25
Figure 1 & 2: Empire Club Retail Store Layout
Our store’s set-up is intended to be simplistic and user friendly. We want our clothes
to be displayed in a manner that is organized and creates a natural flow throughout the
store. We will use strategic lighting in the store to highlight products and make them more
appealing for purchase. In the layout of the store shown below, the customer enters through
the bottom doorway. Immediately on the right-hand side, customers will visit the style
26
profile workstation and utilize one of the three iPads available to either take the 5-step
style survey or scan the barcode of their wardrobe subscription membership and their
information will load instantaneously. The customer will then be directed towards wherein
the store their looks are located and move towards the display tables, shelves, or clothing
racks to retrieve their pieces. Fitting rooms are conveniently located on both sides of the
clothing racks so customers can swiftly try on the necessary clothing items. After finding the
perfect size and style customers will head to the checkout workstation and use one of the
two iPad cash register stations to process payments for the items they purchase.
Office Location:
In order to best serve our customer base and create the most efficient customer buying
experience, Empire Club will purchase office space to house the Executive Team (Chief Operational
Officer, Chief Financial Officer, Chief Executive Officer, Chief Marketing/HR officer), as well as our IT
Director and Head Stylist. This office space will be located at the same address as our retail location,
2727 E. 2nd Ave. Denver, just located in the unit below. We feel this is the best way to maximize work
efficiency when it comes to facilitating day-to-day operations. If our whole company is located in one
central location, such things as communication, accountability, and creativity will all be at a high
level. However, by separating where the Executive Team, IT Director, and Head Stylist work from the
hustle-and-bustle of the retail store above by having a separate office space, Empire Club feels every
employee’s productivity and focus will be maximized as well. This office space will be in Unit 213 of
the building and is approximately 794 square feet. Although this is not a particularly large space, it
will serve our purposes perfectly. The cost of this additional unit will be around $10,235 per month.
We have approached the Buell & Company leasing agency in an effort to negotiate a better rate since
27
we will be leasing two of their units. There will be a total of six separate cubicles/work spaces to
accommodate the four members of the Executive Team, the IT Director, and the Head Stylist.
Within the office space, each of the four members of the Executive team, the IT
Director, and the Head Stylist will be provided their own desk, desktop computer, and all the
necessary office supplies for performing their day-to-day duties. The desktop computers will
also be backed up to an external hard drive to safeguard against losing important shipping
information and financials to computer malfunctions. Our IT Director will be able to monitor
all of our e-commerce operations and make design modifications to the website from the
office. By doing some of these tasks in-house the restaurant will save money on outside
consultants. Some items will need to be purchased in order to get this office running
initially, these items are examined below in table 5.3 and will cost a total of $8,289.28 for
the first quarter. After that initial investment the quarterly office expenses are forecasted
to stay at $250 per quarter, utilized to replenish the miscellaneous supplies used. These
costs may include things like purchasing more tape, ink, paper, post-it notes, and the dozens
of other minor expenses that will be encountered. In quarter one of the first year, there will
be an expense of $8,289.28 to cover the initial office supplies investment as well as the
quarterly miscellaneous supplies expense. The quarterly forecast is shown in table 5.2. The
equipment information and prices were gathered from Amazon.comiii.
Warehouse Location:
14100 E 35th Place, Aurora CO
80011
Sq Footage
15,000 sq ft.
28
Proximity to
customers
11 miles from retail location
Fulfillment
$1.25 per order .50 per item .10
per item per month storage plus
materials.
Warehouse/Fulfillment Center:
Empire Club will not be leasing our own warehouse space, but rather using an
existing facility for storing the majority of our monthly inventory, as well as for
fulfilling the online wardrobe bundle orders. The warehouse is located at 14100 E
35th Place in Aurora, CO. The warehouse is quite large, with the whole space
coming out to around 15,000 square feet. We feel that this is a decently central
location that has capabilities to ship a large amount of orders across Colorado and
the US. Our relationships with our suppliers and warehouse manager are crucial to
the success of our operation. Fulfillment pricing for the warehouse comes out to
$1.25 per order, .50 per item, .10 per item per month storage plus materials.
Why Leasing? Why mostly debt financing?:
We decided to lease the space in Cherry Creek North primarily because it is
less expensive in the short run and leaves us with more working capital to use
29
towards short-term expenses and necessary expenditures of the business during its
introductory phase. Such expenses may include payroll for employees, the purchase
of infrastructure for expanding shipping operations, as well as IT support to keep the
online component running smoothly. We plan to finance our business operations using
mostly debt financing in order to maintain control over decision-making processes in
the company. On the other hand we will be forced to repay the principal amount
along with a significant amount of interest after the first five years, putting direct
pressure on our business to meet sales goals and to make sound financial decisions in
a timely manner.
Location SWOT Analysis:
Strengths: Great proximity to our target market of upper-middle class,
professional women with busy lifestyles. The Cherry Creek North space is located in
high traffic area without many true competitors nearby.
Weaknesses: The location we chose has relatively expensive rent, and not an
especially large space square footage-wise since we are paying primarily for location
Opportunities: There is a growing need for convenience and a quick shopping
solution amongst our target market in an area where they are willing to pay for it.
Threats: Our business model is very dependent on keeping up to date with
current fashion trends both in professional dress and more business casual fashion. If
our designers cannot stay at the forefront of providing the most current fashion
products, we may get outmuscled by larger stores with significant R+D departments
who can; therefore losing customers/profits.
30
III. Data
 Survey and results
 Conclusions
 Data Sources – who was mentor
IV. Product Plan
Empire Club is a company that will sell a range of women’s clothing catering
to the busy young professional woman. We will specialize in providing trendy and
versatile business casual and business professional clothing that can be worn in many
different ways. In addition Empire Club offers accessories to add just the right touch
to every look and to take your style to the next level. All of which can be purchased
a la carte or customers can subscribe to become a member of the Empire Club where
we will send you a unique and customized fashion bundle each month. In terms of
sizing for women, Empire Club ranges from size 0-12, giving women of many
different shapes and sizes the opportunity to shop with us and build their empire of
a wardrobe.
We plan on adapting our styles of products with the seasons and making sure
we are securing long-term customers who will shop with us year-round. Our spring
line of tops entails a variety of three quarter sleeve blazers paired with flowy
lightweight blouses. Our line of bottoms will be a variety of fashionable skirts and
pants that can be paired accordingly with Colorado climate. The dresses that will be
featured will vary in material from chiffon to thicker materials such as wool, so that
we can ensure the warmth of our customers during colder months. Clothing intended
31
for winter weather includes layered outerwear such as peacoats, scarves, gloves, and
sweaters that can be worn in a professional environment. Summer and fall clothing
will be fairly similar because the weather during these times remains at a mild
climate. That being said, Colorado has a tendency to change climate rapidly so our
inventory will be stocked with many layers varying in thickness to keep our shoppers
comfortable in any and all conditions year-round. Empire Club seeks to be very
fashion forward and our designers pride themselves on working to stay ahead of the
trend.
Product Line
Clothing
Accessories
Sweaters/ Cardigans
Jewelry
Jackets / Coats
Bags/ Clutches/ Travel
Pants/Slacks
Scarves
Jeans
Belts
Shorts/Skirts
Eyewear
Dresses
Beauty/Fragrance
32
Blouses & Buttondowns
ii. Outfit Product Plan:
Season Line
Product
Supplier(s)
Hair Accessories
Description
Simple black wrap dress: Empire Club has chosen this dress
specifically because it not only is a classic black dress that women
can wear to work, but it is not too tight or short. The long sleeves
and longer length at the bottom of the dress add professionalism
to this look by making sure that the woman that is wearing this
dress is comfortable yet confident.
Winter
Professional
Nordstrom
Navy popover dress: We have chosen this dress because it is light
and it is easy to dress up. This outfit could go great with a blazer
to go over it while walking outside. This classic and elegant look
will be a breeze for our stylists to pair with a variety of options.
We chose darker colors for both outfits, both perfect for winter.
Winter
Professional
Winter
Business
Casual
Winter
Business
Casual
J. Crew
Cream drape neck-zip cardigan with a black top underneath and a
pair of stylish jeans: As you can see from the picture provided,
the jeans and black top are items that are very simple but by
adding the light and elegant cardigan on top of the outfit, it turns
the outfit from simple to elegant. Empire Club strives to make
clothing for young professional women easy yet impactful.
H&M, GAP
Zip pocket jacket with a light overlapping white and tan shirt to
go underneath and dark dress pants: The jacket that Empire Club
has chosen is a tan, black marble print. We have again chosen
darker colors for this time of year due to appeal to the clothing
choice women usually make for the colder months. This jacket
will be able to be worn with a variety of colors during this time of
year, such as tans, blacks, whites and even some dark grays.
Nordstrom
33
Oversize moto jacket, metallic racerback tank and pleated pants:
This look is for the women who are a little bit more on the edgy
side and show it through their clothing. For our Spring collection,
Empire Club strives to have pieces that are light and flowy but
don’t look cheap. The great thing about this particular outfit is
that it is very easy to dress it up with heels and a handbag for the
perfect touch.
Spring
Professional
Express,
H&M
Silk tunic ivory and black top with black cuff capri dress pants:
Empire Club’s second selection for our spring professional line is
cute and classy. We have constructed this outfit so it can be worn
with flat shoes or heels. Versatility and comfort is key.
Spring
Professional
Spring
Business
Casual
Spring
Business
Casual
Nordstrom
Dark shaul with cream pants: The top and shaul are darker in
coloring, but are light in a way that women should feel
comfortable wearing these clothing items both indoors and
outdoors. Along with with top and shaul, there are pants that are
also light and shimmery. The pants that we have chosen are a
light cream color, and are capris, both perfect for the spring
time.
J. Crew
Simple black dress pants with blazer and flowy cotton white shirt:
With the white shirt, we have decided to dress up this outfit by
adding a ivory sketch print jacket to go on top. We have decided
this outfit is best suited for the business casual look because the
rest of the outfit may come off as a little too casual for the work
scene without the jacket. The blazer definitely completes the
outfit.
Express, J.
Crew
Flowy yet elegant chalk colored top with a patterned long skirt:
This selection is for the women that strive to be on top and want
to look the best while doing it. The top shows a little shoulder
and this skirt has a slit on the side to show a tasteful bit of leg.
This style is oriented for younger women more but older
professional ladies could definitely wear this out to a classy
business dinner or banquet.
Summer
Professional
J. Crew
34
Cotton linen top with wrap lace midi skirt: Empire Club loves this
selection of clothing because the lace is what makes the ensemble
come off as a summer outfit. The skirt is long enough to be
considered professional and is able to be dressed up with heels
and a blazer as well.
Summer
Professional
Summer
Business
Casual
GAP
Pleated fit and flare dress: Our Summer selections are
professional and still a bit fun and flirty. Our first pattern is
called purple grid dot. The second pattern that we have chosen is
called pink floral. We have chose this as another pattern because
some women can pull off polka dots and other women can pull off
floral better. We chose two different colors because during this
time of year, skin complexion is everything when choosing outfit
colors.
H&M
Pleated fit and flare dress: (Same as above)
Summer
Business
Casual
H&M
Dark colored cardigan that goes over a light silky tank top with
pencil skirt: For Empire Club’s first selection of fall professional
wear, we have chosen an outfit that allows layers. As for the
skirt, we have chosen a long dark patterned pencil skirt. This
outfit is perfect for layering, and therefore great for the Fall
season!
Fall
Professional
Nordstrom,
J. Crew
Lace sleeve cardigan: Another selection of clothing that Empire
Club has chosen during the Fall season is something very simple
that is able to be worn with many different outfits. We have
chosen a lace sleeve cardigan that is able go with any type of
pants, and any type of shirt or blouse.
Fall
Professional
Express
35
Grey heather pullover: This provides a light option, yet it is able
to be worn on cooler days, or warmer days depending on what the
young woman would like to wear in addition. The sweater is able
to add warmth to the body, while the lacey bottom lets women
add whatever pants she prefers.
Fall Business
Casual
GAP
Fall Business
Casual
GAP,
Express
Cream open front cardigan with a simple light shirt and dark
pants: With this option we wanted women to be able to pair with
nice jeans that would go with this outfit. Along with that, women
will be able to pick out their favorite pair of heeled boots to dress
up this outfit to perfection.
V. Supply Chain and Inventory Management Plan
We plan to buy our clothing at special rates from clothing designers and then we mark
them up and sell to our customers. We understand it’s hard to find the perfect look
with one designer and it could get pricey. At Empire our team of personal style
consultants push to get each customer the best look for their budget. Working with a
variety of suppliers allows us to do so. We take into account that different clients of
ours have different style preferences and desired looks. We cater to those differences
and pride our selves on not turning any customer away because we can’t find look that
suits. We absolutely can and will. That’s what makes Empire Club different.
CJ’s Potential and Chosen Suppliers***
Chosen Clothing Suppliers



Zulily.com
Immediate resource
Pailloneastern.com
36
Store Equipment Suppliers:
Apple Inc. provides Empire Club with iPads
that we use with our point of sale process,
and our style consultants utilize them to help
customers generate that look. We use a
software on our iPads that allows us to create
customer profiles and put together looks that
we think would work for each customer based
on their interests and style preferences.
Square supplies us with our point of sale
equipment. It also allows us to keep track of
our sales and inventory. Once we process a
transaction we see money in our account the
next day. Square is the wave of the future as
far as this technology. Empire Club strives to
provide efficiency in all aspects of the buying
experience.
Ikea is a terrific supplier and we use their
inventory to furnish our store. They have a
lot of modern furniture that aligns with the
look and feel we strive for. It is also at an
affordable price.
Uline is the supplier of our clothing racks we
use to hold extra inventory that is not out on
the floor. They also provide Empire with
shopping bags and in store packing supplies.
Empire also gets store cleaning/upkeep
supplies from Uline.
Inventory Management Strategy
Inventory is our most vital asset. “Effective inventory management is critical to
managing costs, measuring shrinkage and improving the customer shopping experience”iv. We
plan on using a JIT inventory ordering process initially through the first year, until we get a
good grasp on the actual demand for the different types of products. This will allow us to
increase efficiency and cut down on wasted shelf space within the store especially.
37
Delivery Schedule
Ordering Process
Empire Club plans to order shipments of inventory each month employing a JIT
inventory ordering strategy from nine main suppliers. We plan on sending out three monthly
orders of inventory each quarter. Before the start of each quarter however, we will adapt
our product line for a new season’s looks and order totally new lines of inventory for each of
the months in that new quarter. This decision was based on the fact that each season Empire
38
Club plans to put out a new line of styles. If we start running low on a particularly popular
look or single items, we will execute a modified order for what we anticipate we will need
to sustain us through the rest of the month. Any leftover inventory from each quarter will be
moved to a special section of the warehouse to be sold off at the end of the year at reduced
prices. We plan to order the following month’s inventory around 15 days before the end of
the current month to ensure enough time for delivery. Once the order is sent to and
acknowledged by our suppliers overseas, the receiving process is entered. We plan on
constructing our outfits from a number of different brands and will thus have different
orders with each supplier each quarter.
We plan to provide our suppliers with specific packing instructions so that upon
delivery the clothing can be sorted and compiled into bundles more easily. The instructions
also provide specifications on how much space each order of clothing will take up in their
prospective boxes. This allows Empire Club to not only store, but also ship the products in
the most efficient and space saving manner. APPENDIX
Receiving Process
Our suppliers will ship directly to our warehouse in Aurora located at 14100 E 35th
Place. Once each shipment of the next season’s products is confirmed and received at the
warehouse, we plan to scan in all pieces of inventory using barcodes and an inventory
management software. This is so we can keep track of sold and unsold products as well as
returned products and products being sent back for return. By barcoding and putting our
entire inventory in the inventory management software system right when it comes into the
warehouse and is received, we achieve maximum tracking control. 40% of the total quantity
of each clothing item received will be transported to our retail location to be sold. Since our
retail location is not particularly large and does not have that spacious of a back room to
39
store excess inventory, the remaining 60% of each item’s total inventory will be stored at the
warehouse. Most of it will be awaiting transportation for online orders, however some will
be stored there until needed at the retail location.
Storing Process
Once inventory arrives from the warehouse at our retail location in Denver, lossprevention sensors will be attached before the products are placed on the floor to be sold.
To further ensure that we have maximum control and knowledge of how much inventory we
have on hand at any given time, a physical inventory count will be conducted once a month
by a member of the sales team (four times each quarter). At Empire Club’s retail location,
the inventory will be stored in the back room of the store and categorized by type of
clothing and size. At the warehouse, a similar method of storage and categorization will be
used except on a grander scale. Our warehouse inventory will be ready to be compiled into
wardrobe bundles once it is categorized and stored to our specifications. For the warehouse
location, this is the extent of the storage process and the inventory that will be ordered
online now moves into the transportation process.
Transportation process
To transport inventory to our retail
Figure 2: Free Shipping Graphic from
MarketingZeus.com
location from the warehouse, we will be using UPS Express Delivery that will cost around
$217.40 per pallet of inventoryv. When a wardrobe bundle is ordered online, a stylist
receives the customer’s unique style profile and uses this info to compile a wardrobe bundle.
Wardrobe bundles will be assembled at the warehouse by the warehouse coordinator based
40
on specifications from Empire Club’s stylists. Each customer’s design profile is analyzed by
our stylists working at the retail store and the
results of which are sent to the warehouse
coordinator using a inventory fulfillment
software. Before the customized outfit is all
packaged up to be shipped out, Empire Club
sends out a preview of what the customer’s
wardrobe bundle will contain. From this email,
the customer can remove clothing pieces they
don’t like and make any changes before it gets
shipped off. Shipping is on Empire Club both
ways.
The now-finished wardrobe bundle, complete with a customized note from the stylist
that picked the outfit out and a detailed receipt, is packaged at the warehouse and sent off
for delivery to the customer by UPS. The cost for shipping through UPS from the warehouse
to each online customer will depend on where in the country they are located, of course. We
plan to cover that shipping cost for the customer because we feel that absorbing this small
cost and offering free shipping will in turn result in more orders. The increased orders that
we would gain from offering free shipping would most likely result in more profits than the
costs incurred through covering the shipping costs. According to MarketingZeus.com, “90% of
consumers buy more when
offered free delivery”. The
more they buy in each
order, the better the
margins are for us. We also
Figure 3: Order Tracking System
41
plan to cover the return shipping costs if a customer for some reason isn’t excited with what
we sent them. Customers can print return labels, track their merchandise, and receive a
quick return of goods through UPSvi. Also by using UPS Return Shipping and Order Tracking,
we can see right when an item or items are mailed back and better adjust stock levels,
leading to more efficiency. Order tracking will help us monitor the current status and
accuracy of orders on their way to customers. We can view order accuracy by state, types of
products (wardrobe bundles or individual purchases), and how long it is taking to get the
product to the customervii. Value is created for the customer through each of these services
and impacts their willingness to buy from Empire Club again. Once the order is delivered to
the customer’s address, this concludes the transportation process and is the final stop in the
supply chain.
VI. Demand Forecast
Empire Club’s projected demand forecast by product and month is outlined in Table 3.
We anticipate that the best-selling products will be our sweaters and blouses since those
are usually changed every day, while pants, skirts, and jackets can be worn
interchangeably and need to be bought less. We expect that our retail store will generate
40% of sales. The other 60% of sales will be from our e-commerce site since it will have a
wider reach in that anyone in the mainland United States can order using our website.
Also we anticipate that the majority of our wardrobe bundles (our top seller) will be
purchased through our e-commerce site. On a product level, we anticipate that the
demand for these wardrobe bundles will generate around the same amount of sales as a
la carte items purchased at our retail location during the first year. However in years
42
following online bundle sales will make up a majority of our sales due to the reach of
scope of the online market across the United States.
Demand for clothing items such as over-coats, scarfs, and sweaters will be higher in
the colder months of September through January. Demand for more summer clothing
such as pencil skirts, flowy blouses, and blazers will peak in the months of AprilAugust. The demand for wardrobe bundles, especially those purchased online, will be
highest around the middle of the month (the 15th or so) since this is when the
customers who have subscribed to the monthly wardrobe bundles will be charged on
their account for that month’s bundle. We anticipate demand to be higher on weekends
from the hours of noon - 6pm at our retail location since this is when our target market
is off work and able to fit in time to shop. During weekdays, we anticipate demand to
be highest from 5pm – 8pm since this is again when our target market of busy
professional women are off work and have a small window of time to devote to
shopping.
Table 1: Year 1 Product Demand Forecast (Units)
Products
Sweaters
/Cardigan
s
Jackets /
Coats
Pants/Sla
cks
Shorts/Sk
irts
Dresses
Jan
Feb
Mar
Apr
May
June July Aug Sept
Oct
Nov
Dec
Grand
Total
240
255
275
316
364
418
481
553
636
732
841
967
6079
240
255
275
316
364
418
481
553
636
732
841
967
6079
480
510
555
638
734
844
971 1116
1284
1476
1698
1952
12259
200
230
260
299
344
395
455
523
601
692
795
915
5709
480
510
555
638
734
844
971 1116
1284
1476
1698
1952
12259
43
Blouses &
Buttondowns
Jewelry
Bags/
Clutches/
Travel
Scarves
Belts
Eyewear
Beauty/Fr
agrance
Hair
Accessori
es
Grand
Total
280
310
330
380
436
502
577
664
763
878
1009
1161
7290
300
330
300
345
397
456
525
603
694
798
918
1055
6721
300
330
300
345
397
456
525
603
694
798
918
1055
6721
450
480
450
518
595
684
787
905
1041
1197
1377
1583
10067
325
355
325
374
430
494
568
654
752
865
994
1143
7279
200
250
200
230
265
304
350
402
463
532
612
704
4511
200
250
200
230
265
304
350
402
463
532
612
704
4511
250
280
250
288
331
380
437
503
578
665
765
879
5606
4275 4916
5654
6501 7477 8599
9888
11372
13077
15039
95088
3945 4345
These numbers of our anticipated demand by month are based off of xxxxxxx
We anticipate that our customers who are members of Empire Club through our
eCommerce portion will be growing rapidly at a rate of 15% each month for the first
two years. We think that by Year 3, our growth rate for new customers will have
peaked and will drop down to 6% per month. We feel that these numbers are
representative of the excitement that will spread amongst our target market,
especially through utilizing incentive couponing when a current member gets a friend
to join as well.
44
VII. Revenue and Product Variable Cost Analysis
i.
Raw Materials Cost
One of the most critical aspects of Empire Club’s operations will be our
ability to forecast demand, and create rough estimates of future income.
Effectively doing so will result in less wasted storage space, a more efficient
ordering process of new products from our suppliers, a better idea of how
aggressive/conservative Empire Club should be with the future financial
decisions, and an overall more efficient business. We based our demand
schedule off that of our competitors with similar size stores and followed a
similar pricing strategy in order to stay competitive.
***Pricing Graphic with competition
We will be purchasing our inventory in bulk for wholesale prices each
month from a variety of suppliers. This total bulk cost will then be converted
to a per unit cost and added to the per unit costs of other products that will
be combined into a wardrobe bundle, giving us the total raw materials cost for
each compiled outfit. Each wardrobe bundle will consist of anywhere from two
to four different products, each of which are awarded point values depending
on how quality the piece of clothing is. The total number of awarded points
for each bundle is 8. Ultimately the final outfit within each bundle is created
based on discretion of the wardrobe stylist and their analysis of the
customer’s style profile. Our raw materials cost per wardrobe bundle will
therefore vary greatly, based on the number of products that make up the
outfit in the bundle and the quality of the products used. Below is the
breakdown for the first quarter, while the remainder of Year 1, Year 2, and
Year 3 is filed under Appendix:
45
Online Subscription Pricing Breakdown and Revenue Analysis
Year 1 - Spring/Summer
March
April
May
Revenue
Bundle #1
Bundle #2 Bundle #3
Unit Retail Price
$120.00
$120.00
$120.00
Shipping & Handling
$0.00
$0.00
$0.00
Total Order Revenue
Cost of Goods Sold
Wholesale Price
Inbound Freight
$120.00
$120.00
$120.00
$38.99
$3.00
$40.98
$3.00
$26.99
$3.00
$0.15
$1.25
$0.15
$1.25
$0.15
$1.25
Warehouse Storage Fee @ $0.10/mo at avg
of 45 days in inventory
Outbound Warehouse Fee
Outbound Shipping Cost @ $7.95 for UPS
Flat-Rate Boxes
Credit Card Processing Fee @ 2.5% of Retail
Price
TOTAL COGS
$7.95
$7.95
$7.95
$2.95
$54.29
$2.95
$56.28
$2.95
$42.29
Gross Profit
$65.71
$63.72
$77.71
55%
53%
65%
200
230
$24,000.00 $27,600.00
$10,858.00 $12,944.40
$13,142.00 $14,655.60
265
$31,740.00
$11,185.71
$20,554.30
Gross Margin
Orders per month
Total Revenue per month
Total Cost per month
Total Gross Profit per month
Year 1 Gross Profit:
$396,592.80
46
ii.
Retail Pricing
As a higher end clothing retailer we plan to price our products competitively with our
competition. We plan to charge a small percentage more than the retail price of a
number of our direct competitors, since we also provide the dynamic service and
shopping experience that form the cornerstone of Empire Club’s competitive
advantage. We feel we can justify charging slightly higher prices because our target
market is willing to spend a little more to ensure a hassle-free, efficient, and
customized shopping experience for professional ware. They also will be more
inclined to purchase from Empire Club when they learn of our social responsibility
component, where we donate 10% of every wardrobe bundle’s profits to Dress for
Success.
We plan to use a modified Keystone Markup pricing strategy based on the
retail industry norm of marking up inventory purchased at wholesale prices 100% to
the final selling priceviii. We plan on marking up a large majority of our products to a
final selling price 100% of the wholesale price. This allows us to cover the wholesale
purchase price of the product, and use the remaining percentage of the markup
revenue to cover overhead costs, employee salaries, and donation to Dress for
Success. We anticipate a gross margin of around 40-60% for our product lines, which
is the profit markup divided by the retail selling price. Each wardrobe bundle,
regardless of the wholesale cost, will cost $120 with shipping being free for the
customer, and will be charged monthly to their credit card on file.
iii.
Three Year Forecast
Appendix****
iv.
Revenue Analysis
47
Revenue Analysis
Quarter 1
Revenue from Retail
Store
Revenue from Online
Subscriptions
Cost of Goods Sold
Gross Profit
Quarter 2
Revenue from Retail
Store
Revenue from Online
Subscriptions
Cost of Goods Sold
Gross Profit
Quarter 3
Revenue from Retail
Store
Revenue from Online
Subscriptions
Cost of Goods Sold
Gross Profit
Quarter 4
Revenue from Retail
Store
Revenue from Online
Subscriptions
Cost of Goods Sold
Gross Profit
Year End Total
Gross Profit
Year Ending
Year Ending 2
Year Ending 3
12/31/15
12/31/16
12/31/17
$151,777.20
$178,473.00
$225,863.20
$83,340.00
$103,977.74
$131,139.46
$445,660.65
$262,181.14
$361,952.51
$2,015,050.71
$961,383.23
$1,279,530.67
$151,777.20
$178,473.00
$225,863.20
$126,749.72
$122,834.85
$155,692.07
$677,794.14
$386,937.02
$469,330.12
$2,399,957.63
$1,464,423.63
$1,161,397.20
$151,777.20
$178,473.00
$225,863.20
$192,770.48
$144,038.99
$200,508.69
$1,030,840.16
$525,913.69
$683,399.48
$2,858,387.94
$1,534,829.55
$1,549,421.59
$151,777.20
$178,473.00
$225,863.20
$293,179.81
$204,554.19
$240,402.82
$1,567,779.03
$755,145.01
$991,107.02
$3,404,385.77
$2,127,428.76
$1,502,820.21
$727,743.04
$2,505,789.13
$5,493,169.67
48
VIII. Capital Equipment Plan
Store Equipment/Furnitureix
What?
IKEA
Hangers
Quantity
32
Price
8-pack
for
$4.99*32=
159.68
IKEA
Worksta
tion
2
$369.00*2
= $738.00
49
IKEA
FullLength
White
Mirror
6
$89.00*6=
$534.00
IKEA
Large
Storage
Trunk
3
$79.99*3=
$239.97
IKEA
Spotligh
t Bar
4
$49.99*4=
$199.96
IKEA
Wall
Cabinet
4
$14.99*4=
$59.96
IKEA
Pendant
Lamp
4
$89.99*4=
$359.96
50
IKEA
Clothing
Inventor
y
Organize
r
2
$170.00*2
= $340.00
IKEA
Clothing
Rack
5
$9.99*5=
$49.95
Furnitur
e/Lighti
ng
TOTAL:
$2681.48
Point of Sales Equipment
With the use of iPads, we are using a Point of Sales (POS) System that enables our
employees to do everything electronically. This maximizes efficiency for both the employees
and the customers. Digitalized registers mean less paper waste as customers have the
opportunity to have receipts emailed rather than printed. Our high tech POS system comes
equipped with shop-keeping software that has pivotal programming for retail stores, such as
inventory maintenance. The simplicity of having all of this software readily available on our
iPads will make the in-store checkout process smooth and fast moving. The cost for our
store keeping software is only $49 per month, with included 24/7 tech support assistance.
Since most of our interaction with the customer will be done through online profiles as well
as style profiling in the store, the use of the iPad makes storing customer information
51
effortless. When customers realize that their profile information is stored in our system
they will be much more inclined to return to our store to make future purchases.
The biggest problem all customers face when shopping is a lack in speed and
efficiency; by creating style profiles on the iPads the entire shopping experience is
transformed for the consumer. For a woman in particular, shopping is always a hassle
broken up into three time-consuming parts: browsing for the right style/size, trying on the
garments to find a proper fit, and lastly checkout. With the introduction of the style
profile, women are immediately directed to the items in the store that fit their taste and
size, eliminating the time it takes to browse through various styles. And with the use of
iPads for POS equipment the checkout process is speedy and effective.
POS Software/ Equipment
What?
Square iPad
Compatible
Cash Register
Square iPad
Compatible
Cash Drawer
Quantit
y
3
Price
3
$120.00*3
= $360.00
$99.00*3=
$297.00
52
Square iPad
Compatible
Printer
3
$285.00*3
= $855.00
iPad Air 16GB
6
$399.00*6
=
$2394.00
ShopKeep
Inventory
Software
1
$588.00
Modem/Server
s
Shopping Bags
POS/ Equip
TOTAL
Included with Comcast Internet & Phone
Bundle
$0.00
50
cartons
of 100
bags
$68.00*25
=
$1700.00
$6194.00
In addition to POS equipment and general store interior pieces, we must consider
shipping and packing materials that we will use in sending out our products via ecommerce.
Necessary packing supplies include: boxes, packing paper, printed shipping labels, and tape.
The warehouse staff will be assembling the items purchased online and preparing them for
53
shipment and the cost of the packing materials is already paid through the fulfillment fee
we pay for each order through the warehouse.
Office Equipment
Table 2: Office Supplies
Equipment
Cost
$1,019.00
*6 units =
$6,114.00
Specifications
Apple iMac
MF883LL/A 21.5-Inch
Desktop, 1.4GHz
Intel Core i5, 500 GB
Serial ATA Drive, 8
GB 1600MHz DDR3
SDRAM
4TB External Hard
Drive
$139.00
All-in-One
Commercial
Printer
$479.00
Four Terabyte
Western Digital
external hard drive
backs up all digital
information. This
way it will not be
lost if the computer
crashes.
All-in-one, wireless
Brother printer,
copier, scanner, and
fax machine.
Commercial level
with wireless and
many other features.
Includes toner
Apple Desktop
Computer with
Monitor,
Keyboard, Mouse
Picture
54
Desk Chair
$54.99*6
units =
$329.94
Durable, leather,
adjustable desk
chair.
Polar Bear
Calendar
$14.99
National Geographic
polar bear calendar.
Allows Empire Club
to mark when
shipments of new
clothing are coming
in and plan ahead in
the month.
Shredder
$49.99
Destroy documents in
order to protect
Empire Club. 12sheet, cross-cut, also
does CDs and credit
cards.
Five Hanging File
Organizers (25 per
box)
($11.69*5
)= $58.45
Organize documents
in file cabinets.
Label Maker
$19.20
Handheld label
maker to label
supplies.
55
Desk Organizer
$24.99*6
units =
$149.94
Allows to organize
important
information on each
person’s desk cleanly
Office Phone with
Two Additional
Handsets
$87.78
Business phone with
two additional
headsets. Main phone
can be kept in the
office while the two
headsets are keep in
the retail store
upstairs.
Dry Erase Board
36x24 (2 Pack)
$62.99
Write important
information or
reminders;
collaborate between
departments on new
projects
Office Desks
$89.00*6
units =
$534.00
Ameriwood Office LShaped Desk with 2
Shelves
Misc. Office
Supplies
$250.00
Tape, paper, pens,
post-its, etc
Rachel’s additions****
1st Quarter Office
Supplies TOTAL
1st Year TOTAL
$8,289.2
8
$9,039.2
8
56
Bathroom/Miscellaneous
Rachel’s additions****
IX. Non-Human Resources Plan
Table 3: Annual Non-Human Resources Cost Analysis
Type of Expense
Utilities (Included in lease with rent)
Property Taxes
Property/Renters's Insurance
Projected Annual Maintenance Costs
Warehouse Storage ($0.10/item/month)
Operations disability insurance
Accounting setup (Quickbooks Online Subscription)
Association fees and directories*
Cost
$0.00
$61,431.60
$925.00
$1,250.00
$7,207.20
$864.00
$300.00
$250.00
Exterior sign and center pylon signs (two)*
Internet/Phone
Search Engine Optimization (thru Room 214)
eCommerce and Domain Registration Fees
POS Equipment*
Furniture/Lighting Equipment*
$1,500.00
$2,073.60
$1,249.99
$3,500.00
$6,194.00
$2,681.48
Office Supplies*
$9,039.28
TOTAL
$98,466.15
*Denotes one-time expenses only incurred during 1st year
Additional Leasing Expenses
In the lease we plan to sign for our retail location and office space with Buell & CO,
the terms follow a NNN leasing structure. This means that Empire Club as tenants will “pay
for net real estate taxes on the leased asset, net building insurance and net common area
maintenance”x. The annual expenses for property taxes, property/renter’s insurance, and
57
projected maintenance costs were $61,431.60, $925.00, and $1,250.00 respectively. Utilities
expenses covering water, heating, and electricity are included in the monthly rent payment
already. As you can see, property taxes represent a staggering portion of our Non-Human
Resource costs. However there isn’t anything we can do to change these, while some of the
other costs on this table can be lowered after we have established ourselves as a solid
business past the first year of operationxi.
Property/Renter’s Insurance
As a retail clothing business, we will face unique risks and need to make sure our
property is covered in case of unfortunate events. Bodily injury, property damage/loss, and
personal injury are covered in the property insurance quote from insurancebee.comxii.
Warehouse Storage
The cost to store our inventory at the warehouse located in Aurora is $0.10 per item,
each month. We plan to store around 60% of our inventory at this warehouse, while the
other 40% will be on display or in the backroom of our retail location. We anticipate ordering
just over 10,010 pieces of assorted inventory throughout our first year of operation. 60,060
of which we will actually have to pay for to store at the warehouse and that total comes out
to $7,207.20.
Operations Disability Insurance
This is an insurance policy that helps to replace a major portion of the income that an
executive or stylist may lose if they fall ill or are injured, and therefore unable to work. It is
a sort of “paycheck protection” and is a necessary thing to provide our employees. The quote
we received from Mutual of Omaha Insurance was $864.00 for our first year of operationxiii.
58
Internet/Phone
Empire Club will have high-speed Internet and two phone lines. High-speed internet is
essential in this day and age where the instantaneousness of information and communication
are indeed a competitive advantage for a business. Comcast will provide the services for
business. Comcast will also install and provide the modems and routers needed for the Wi-Fi.
The office and store location will each have two business phone lines. This allows Empire
Club to have one number designated for customers to call to inquire about our hours, what
styles are in stock, or check the status of a delivery. The other line would be specifically a
professional line so that the Executive Team can communicate with suppliers, the
warehouse, or other divisions of the business without tying up the line for customers.
Empire Club was quoted for a monthly Internet and phone bill of $172.80. This cost is
negotiated to remain fixed for three years. The yearly cost of the high-speed Internet and
two phone lines is $2073.60, shown in Table 3. Jim Le, a Business Consultant at the Comcast
office in Englewood, CO, provided the quote for Empire Clubxiv.
X. Human Resources Staffing Plan and Cost Analysis
Empire Club is a rapidly growing clothing company based in Denver, Colorado
servicing young professional women. We currently have a team of 14 amazing, skilled and
highly motivated individuals who are committed to serving the needs of each and every one
of our customers. We look forward to continued growth in the coming years. Empire will
have ten full-time staff at our two location split between the store and the office space. The
in store staff will be comprised of eight personal style consultants in addition to a head
stylist. The management team will be comprised of four senior leaders who also share in
ownership in Empire Club. Each senior manager will accept modest salaries within the first
59
year of business because we want to prioritize our customers and enhancing their shopping
experience.
Figure 4: Annual Wage Breakdown
Chief of
Marketing,
$50,000
Chief
Financial
Officer,
$50,000
Head Stylist,
$30,000
Chief
Operating
Officer,
$50,000
Chief Executive
Officer,
$50,000
Personal
Stylist,
$25,000
IT
Director
,
$32,000
Total Annual Wages Payable= $362,000.00
1. Head Stylist
Our head stylist is going to be in charge of each individual item that goes to the floor and
will approve all customized wardrobe bundles. He/She will be in charge of developing the
next season’s styles and seeking out brand new items from our supplies. The job of the head
stylist will be to constantly stay up to date with current trends and will require a lot of
dedication and creativity.
2. Personal Stylist
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Our personalized and service-oriented shopping experience enables women to get a closet
full of their favorite clothing and ongoing style advice without leaving the comfort of their
office or home. Fashion-savvy sales personnel will work at our retail location providing
expert style advice and assistance for the busy young professional woman. Not only will they
help select the outfits, but also can ring the customers up at the front counter. Empire Club
strives to hire only the most knowledgeable and friendly sales staff. These stylist are truly
the face of our company and are the ones that dictate Empire Club’s first impression on the
customer.
3. IT director/Warehouse Coordinator
Our IT director is responsible for making sure that all of the technical aspects of the business
are running up to par. This position will also handle any technical difficulties that happen
on a day-to-day basis with the in-store iPad software as well as the e-commerce portion. We
feel that it is important to have an IT director that will be able to handle any type of
technical problem since technology and efficiency are at the core of what sets Empire Club
apart from its competitors. Empire Club will require the IT director to manage the ecommerce portion of the business and to be constantly improving the website/online buying
experience. We are looking for a candidate well versed in HTML, CSS, iOS programs as well as
Adobe Photoshop and Premiere. In addition, the IT Director will also be expected to oversee
warehouse operations and make sure the fulfillment process through the warehouse runs
smoothly. He/she will act as a mediator between Empire Club and the warehouse fulfillment
center. He/she will ensure orders are arriving and that the warehouse staff is storing and
shipping our products to our specifications, thus providing a smoother transfer through the
supply chain.
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4. Chief Executive Officer
The CEO shall exercise overall control and supervision of all business activities of the
Company. Their responsibilities include being a director, a manager, and the ultimate
decision maker. This job requires a lot of high-level decision-making, while organizing
employees and figuring out what motivates them within our organization. The CEO is also
responsible for the concepts, designs and sources that are being used within Empire Club.
The CEO sees over everything that happens within our business and assists the other
members of management on a variety of projects.
5. Chief Operating Officer
The Chief Operating Officer establishes the performance goals, allocates resources, and
assesses policies for the company. Empire Club also wants the Chief Operating Officer to
demonstrate successful execution of business strategies for company products and services.
They will be charged with maintaining and creating supplier relationships in an effort to
secure the best quality products for the lowest price. Efficiency and cost-cutting are the
C.O.O.’s main goals.
6. Chief Financial Officer
Empire Club’s Chief Financial Officer maintains and monitors the financial well-being of the
organization by providing financial projections and accounting services; preparing growth
plans; as well as directing staff on projects. The Chief Financial Officer also develops
financial strategies by forecasting capital, facilities, and staff requirements; identifying
monetary resources; and works to develop new action plans. The C.F.O. will have a
62
significant responsibility making sure Empire Club stays frugal in its spending habits and
keeping an eye on our liabilities.
7. Chief of Marketing
For Empire Club’s Chief of Marketing, we want to have an employee that is able to shape the
company's public profile, alter it to reflect consumer-buying behavior, and build new market
capabilities. The Chief of Marketing should be a creative machine that has many new and
innovated ideas that will help our business grow in the community and grow as a whole. The
goal of this position is to also keep customers engaged and that will be accomplished through
the creative skills of the whole Empire Club team.
Weekly
Employee
Schedule
Hours
11-8
Job
Mon
Tues
Wed
Head Stylist
Personal Stylist
1
Personal
Stylist2
Personal Stylist
3
Personal Stylist
4
10 to 6
10 to 6
11 to 2
off
11 to
2
11 to
2
2 to 6
2 to 6
IT Director
C.E.O.
C.O.O.
10 to 6
9 to 5
9 to 5
11 to 2
Thur
Fri
10 to
6
off
10 to
6
11 to
2
11 to
2
off
11 to 2
off
10 to
6
9 to 5
9 to 5
11 to 2
off
10 to 6
9 to 5
9 to 5
Total
Hrs
Sat
Sun
off
off
11 to
2
11 to
2
10 to
6
11 to
2
11 to
2
off
2 to 6
2 to 6
2 to 6
19
off
10 to
6
9 to 5
9 to 5
2 to 6
10 to
6
9 to 5
9 to 5
2 to 6
2 to 6
19
off
off
off
off
off
off
40
40
40
off
40
15
15
63
C.F.O.
C.M.O.
9 to 5
9 to 5
9 to 5
9 to 5
9 to 5
9 to 5
9 to 5
9 to 5
9 to 5
9 to 5
off
off
off
off
40
40
Employee Values
1.
2.
3.
4.
5.
Enamor customers
Creativity in all aspects of business
Enthusiasm
Stay Humble, Stay Hungry
Dependability and Efficiency
Position
Head Stylist
Personal Stylists
IT Director/Warehouse
Coordinator
Chief Executive Officer
Chief Operating Officer
Chief Financial Officer
Chief Marketing Officer
Total Employees
Number of Staff required in 1st Year of
Operation
1
4
1
1
1
1
1
10
XI. Financial Analysis with Three-Year Forecast by Year
Anticipated Income Statements
Period Ending
Total Revenue
Retail Store Sales
Online Subscription Sales
Less Dress for Success Donation
Net Sales
Year Ending
31-Dec-15
$607,108.80
$696,040.02
$69,604.00
$1,233,544.82
Year Ending
31-Dec-16
$713,892.00
$3,722,073.99
$372,207.40
$4,063,758.59
Year Ending
31-Dec-17
$891,463.20
$10,677,782.04
$1,067,778.20
$10,513,456.64
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Cost of Goods Sold
Retail Store Clothing Cost of Goods Sold
Online Clothing Cost of Goods Sold
Net Cost of Goods Sold
Gross Profit
Operating Expenses
Store Equipment/Furniture Expense
Office Supplies Expense
Selling, General and Administrative
Warehouse Storage Costs
Other Operating Expenses
Total Operating Expenses
Payroll
Wages
Total Labor Expense
Occupancy Costs
Rent Expense
Utilities Expense
NNN Expenses (Property Tax, Insurance,
Repairs)
Total Occupancy Expense
Operating Income or Loss
Interest
Interest Expense
Income Before Tax
Taxes
Net Income
$275,958.56
$299,447.21
$575,405.77
$324,496.36
$1,605,680.49
$1,930,176.86
$405,266.40
$5,682,798.77
$6,088,065.17
$658,139.04
$2,133,581.73
$4,425,391.47
$15,607.48
$2,925.28
$10,044.59
$$250.00
$4,794.59
$$250.00
$4,794.59
$7,207.20
$7,207.20
$7,207.20
$1,250.00
$37,034.55
$1,250.00
$13,501.79
$1,250.00
$13,501.79
$362,000.00
$362,000.00
$362,000.00
$362,000.00
$362,000.00
$362,000.00
$312,372.00
$-
$304,872.00
$-
$304,872.00
$-
$70,813.80
$383,185.80
-$124,081.31
$70,813.80
$375,685.80
$1,382,394.14
$70,813.80
$375,685.80
$3,674,203.88
$40,985.22
-$165,066.53
$33,641.63
$1,348,752.51
$25,894.15
$3,648,309.73
$-$165,066.53
$$1,348,752.51
$$3,648,309.73
Anticipated Balance Sheets
Empire Club Balance Sheet
As of
Day 1 of
Operation
31-Dec-15
As of
As of
31-Dec-16
31-Dec-17
Assets
Current Assets
65
Cash and Cash Equivalents
Accounts Receivable
Inventory
Total Current Assets
$1,079,578.32
$1,285,913.60
$3,419,495.34
$7,844,886.80
$13,518.30
$44,534.34
$115,215.96
$575,405.77
$8,316.56
$572,796.23
$2,389,609.77
$1,654,984.09
$1,307,748.46
$4,036,825.91
$10,349,712.54
$15,607.48
$15,607.48
$14,256.85
$12,906.22
$1,350.63
$2,701.26
$4,051.90
$-
Non-Current Assets
Equipment
Accumulated Depreciation
$-
Net Furniture and Equipment
$15,607.48
$14,256.85
$12,906.22
$8,854.32
Total Non-Current Assets
$15,607.48
$14,256.85
$12,906.22
$8,854.32
$1,670,591.57
$1,322,005.31
$4,049,732.12
$10,358,566.86
$575,405.77
$575,405.77
$1,930,176.86
$6,088,065.17
Total Assets
Liabilities
Current Liabilities
Accounts Payable
Sales Tax Liability
Total Current Liabilities
$-
$-
$-
$-
$575,405.77
$575,405.77
$1,930,176.86
$6,088,065.17
Long Term Debt
$795,185.80
$611,666.07
$470,802.75
$322,191.95
Total Long Term Liabilities
$795,185.80
$611,666.07
$470,802.75
$322,191.95
$1,370,591.57
$1,187,071.84
$2,400,979.61
$6,410,257.13
$300,000.00
$300,000.00
$300,000.00
$300,000.00
-$165,066.53
$1,348,752.51
$3,648,309.73
$300,000.00
$134,933.47
$1,648,752.51
$3,948,309.73
$1,670,591.57
$1,322,005.31
$4,049,732.12
$10,358,566.85
$0.00
$0.00
$0.00
$0.00
Non Current Liabilities
Total Liabilities
Stockholders Equity
Paid in Capital
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Stockholder's
Equity
Balance Sheet Check
$-
66
Key Assumptions and Analysis Findings
i. REVENUE RECOGNITION
At Empire Club, we will recognize all revenues the day our clothing sales are made.
We will accept both cash and credit as payment from our patrons to ensure a quick, hassle
free transaction process, and credit sales will be exclusively accepted for our online
subscription sales. For cash sales in our retail store, we will simply record their payment as
revenue on the same day that they make the purchase. For credit sales however, we must
account for them differently, as major credit card companies have a four-day transfer period
to give us our receivables in cash.
We will still record the sale into our clothing revenue on the day of, but instead of
recording it as cash, it will be debited in accounts receivable until we are given the cash by
the credit companies. Because of this, on our balance sheet, our accounts receivable balance
is equivalent to four days of the year worth of sales. For the number to actually be this high,
we would need to have 100% credit sales in the 4 days preceding the filing date. This is
obviously an unrealistic estimate of our credit sales, but helps us plan for sales on credit
being a large portion of our revenue.
67
ii. With Empire Club’s financial statements, we record the percentage of sales
collected for sales tax differently than money directly collected from our customer’s
clothing purchases. The money collected for sales tax does not go into our revenue account.
In fact, we don’t let it hit the income statement at all. On each collection of sales tax, we
simply debit cash with the dollar amount of the tax, and balance that with a credit in the
sales tax liability account. Then, at the end of each quarter, (Last day of March, June,
September, and December), we will file a sales tax return to pay the collecting agency and
clear the sales tax liability account. This is an example of one of the benefits of operating on
a calendar tax year. Because we file sales tax on December 31st and clear one of our
liabilities accounts, our balance sheet each year will cleaner and stronger than if we had to
wait another month to file. So, only because our anticipated balance sheet aligns with the
end of our quarter, the sales tax liability is $0. This will not be the case in most other times
of the year.
INCOME TAX:
Empire Club’s income will flow back into the business as retained earnings will not be
taxed as we are registered as an LLC in the state of Colorado. If we as shareholder and
owners of the business were to take these retained earnings out as personal income, then it
would be taxed at the time we file our individual income tax returns. This cost savings is a
68
major advantage to being a Limited Liability Corporation. If we were to be a corporation,
our tax rate would be a whooping 34% since our income would be between $335,000 and $10
million in all years following our first year of business. As an LLC, we stand to save
$458,575,85 in taxes in Year 2 and even more in years following as our net income increases.
This allows us to use our hard-earned profits to better our business and continue to improve
the shopping experience for professional women across the United States.
INVENTORY:
Our current inventory levels will be monitored throughout the year through our
inventory management system. At the end of each month, we expect to have unsold
inventory in storage at our retail location totaling around 5 days worth of sales, and 75 extra
bundle’s worth of inventory in storage at our warehouse. This extra inventory will be a
result of returned merchandise and this padding of inventory will compensate for spikes in
demand in future months.
Selling, General, and Administrative Expenses:
The cost that make up SGA include:
-
Search Engine Optimization (thru Room 214)
-
Phone/Internet
-
eCommerce and Domain Registration Fees
Other Operating Expenses:
This expense category is to provide allowance for unexpected costs Empire Club may incur
over the year. These may include theft, customer refunds, unexpected maintenance or any
other costs not originally planned for.
69
Depreciation:
We used a straight-line depreciation method in order to account for the loss in value
of some of our long term assets. To do this we took the purchase price of each category of
assets and subtracted the minimum salvage value to get the depreciable amount. The
depreciable amount was then divided by the asset’s expected useful life to give us the
annual depreciation expense. As a retail clothing store, we wont necessarily have an
enormous amount of equipment to depreciate but will have some technological assets that
will lose its value over its useful life. The assets we were able to depreciate included the
iMac computers purchased for the office downstairs, the furniture and fixtures within the
retail store, and the iPads used in the style creation stations once you walk into Empire
Club’s store. The breakdown is as follows:
Depreciation Expense
Per Year
Original Cost
Useful Life (Years)
Depreciation Exp Per
Year
Computer/Office
Equipment
Furniture/Fixtures iPads
Total
$6,732.00
5
$2,681.48
15
$2,394.00
5
$11,807.48
$946.40
$45.43
$358.80
$1,350.63
Debt Financing Portion of Capital:
Empire Club plans to incorporate a capital structure comprising of around 73% debt
financing and a 27% equity offering. We plan to apply for a long-term loan from Wells Fargo
of $745,185.80 and is payable after 5 years. The interest rate on the loan will be 5.5%. This
loan is specific to small businesses and provided the best terms available, but does require
an initial down payment of $50,000. The four members of the executive team plan to cover
the cost of the down payment by each contributing an additional $12,500 to contributed
capital. The cash provided by the loan will allow Empire Club to cover our first year start-up
70
costs, purchase of equipment, and wages payable. With our need for working capital in the
first year and steady projected revenue stream, Empire Club feels comfortable taking on this
sizeable amount of debt in order to finance our operations.
Amortization Schedule
Date
Issuance
1/1/16
1/1/17
1/1/18
1/1/19
1/1/20
Payment
$50,000 (Down PMT)
$174,504.95
$174,504.95
$174,504.95
$174,504.95
$174,504.95
Interest
Expense
(5.5%)
$40,985.22
$33,641.63
$25,894.15
$17,720.56
$9,097.42
Principle
Carrying Value
$133,519.73
$140,863.32
$148,610.80
$156,784.39
$165,407.53
$745,185.80
$611,666.07
$470,802.75
$322,191.95
$165,407.56
$0.00
Additional Paid in Capital:
Each of us as co-owners of Empire Club, plan to use some of our own funds to contribute to
the business. We plan to each put in $25,000 to cover some start up cost as well as an
additional $12,500 each to cover the down payment for our long-term loan through Wells
Fargo, for a total of $150,000 and will be asking for an additional $150,000 in the form of an
equity offer to one lucky investor.
Capital Structure:
Our opening day capital structure will include $300,000 in equity and $795,185.80 in debt
financing.
Empire Club’s capital structure will evolve into being more and more equity heavy as our net
income increases and flows into retained earnings.
71
Empire Club
Initial Capital Structure
Debt Financing $795,185.80
27%
73%
Equity Financing $300,000
XII. E-commerce Plan
Electronic commerce is the process of buying and selling products through the
Internet. In this day and age, e-commerce is on the rise and the ability to buy and
sell clothing online and have it shipped right to your front door is a convenience
many customers expect from retailers. In the past there has been a concern with ecommerce as many online shoppers did not know if purchasing a product on line was
safe or not. The reason being is that customers are required to input their credit
card information and a shipping address. Businesses have gone a long way to ensure
that they are practicing safe and effective business through the Internet. Investing
capital in website protection to ensure costumers that their information is safe is an
important step in building our e-commerce portion. A large part of Empire Club’s
business model revolves around the convenience provided through a dynamic online
72
shopping experience. At Empire Club we strive to accommodate the busy, young
professional woman. Design and functionality of our website is key.
What?
Vendor
Price
Web Hosting
Shopify
www.shopify.com
Go Daddy
www.godaddy.com
Webolutions
www.webolutions.com
$179/month
Domain
Site Maintenance
$3.99
Quote being processed
Welcome! www.empireclub.com
Above is the Empire Club home screen with a navigation bar that allows
customers to browse and easily access information about our business, our personal
stylists, and our store, along with ways to contact us.
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Empire Club provides a unique service that allows customers to subscribe to a
monthly bundle where customers visit our website, input their style preferences, and
out comes suggested looks customers can choose from that we think would match
what they are looking for and satisfy they style preferences. Once a customer puts in
their information they are connected to an Empire Club personal stylist closest to
their location, determined by their zip code. Our personnel will be notified of a new
member and will contact them within 48 hours of membership sign up to further
discuss the customers clothing needs.
74
Empire Club again strives to make the online customer shopping experience
quick, easy, and memorable. Customers get the opportunity to see the suggested
looks and each piece of clothing that makes up that look. Empire Club’s clothing is
very versatile and can be worn early morning in the board meeting, or switched up,
dressed down, and worn to dinner before a movie. Before a customer subscribes or
purchases from our online store, they can get feedback from friends and family by
sharing the look on social media platforms such as, Facebook, Twitter, Pinterest,
Instagram, and Google+. If a customer who is a member of the Empire Club shares a
look and a friend or family member of that customer clicks the link and proceeds to
create an account, that customer would get a special gift from Empire Club.
Rewarding customers who promote our brand is an easy and effective strategy to
expand our online presence and overall business.
75
Functionality is key and the ability to navigate your way through an online
store enhances the shopping experience. Customers get the opportunity to purchase
single products online, and members get the same opportunity. However only
members would get a added discount as a way of Empire saying thank you for being
loyal. Customers with a membership log on to the website with their account and can
check out with the click of one button. Shipping is free for members who subscribe to
the monthly bundle. At the beginning of each month Empire Club stylist hand select
items from our inventory, package them, and send them off. Once we get
confirmation that the package has been delivered to the customer we send that
customers a survey to get feedback, and to see how everything fits. They get 5 days
to try on the clothes and send back what doesn’t work, and we charge them for what
they keep. If a customer would prefer a different size or a different color in the
same style we track that through the survey and send it out right away and an
additional 5 day would be granted for try on.
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Location map so customers that visit our website that want to visit our store
and know where to find us along with exact address, phone number, and hours of
operation.
77
Empire Club is constantly looking for ways to improve our business and we love
feedback from customers. What we do online is geared towards making the online
shopping experience easy and fun. If there are any suggestions on how we can do it
better, we want to know. On our contact page, visitors are able to leave us a
message with any comments or concerns and someone from the Empire team will
respond within 24-48 hours.
XIII. Social Media
CJ Accounts and paragraphs***
XIV. Business Intelligence and Utilizing Big Data
Empire Club plans to take full advantage of the immense amount of data that can be
collected about customers and turn this data into information that can improve the
customer buying experience and promote competitive advantage. Analyzing consumer’s
online browsing habits can help us craft our seasonal lines of professional clothing
78
better as well as tell us where are the most frequented sites by our target market.
Through proper analysis by our IT division, we can develop insight and turn this insight
into effective action in the form of revamped marketing campaigns. Measuring whether
our new actions actually impact change is the critical last step of this Business
Intelligence Cycle.
By using certain KPIs (Key Performance Indicators) such as forecasted demand by month,
Figure 3: Sales Growth KPI
year-to-year sales growth, and inventory turnover,
we can better measure/evaluate how we are
doing at the end of each quarter and decide
what changes need to be made. Our goal is for
our sales to grow at least 20% by our second
year of operationxv.
XV.
Things like which products we should
order more of and during which months we need to have more staff working to handle
increased demand are important to stay on top of and KPIs make that possible.
Empire Club also plans to use search engine optimization services from a small digital
agency located in Boulder, CO called Room 214. Room 214’s objective will be to make
sure Empire Club appears on the first page of Google search results when potential
customers type in key phrases such as “women’s professional clothes” or “professional
clothing for busy women”. Their services will also extend to helping us gather and
analyze data on social media opportunities and trends in customer buying habits. Their
services cost approximately $1249.99 per year but will be well worth it for the new
business we will be gainingxvi.
Empire Club will utilize cloud-based storage to house raw data and information on
customer’s style profiles. This eliminates the need to contract with data centers or
79
warehouses, and helps our business save space within our offices as well. Also if our IT
system were to malfunction and shut down, it would be extremely easy to recover all
of our records and customer information since they are stored on the cloud. Empire
Club also plans to use a ‘Google For Work’ based email, collaboration, and
communication system. We will utilize Google Drive, Google Docs, Gmail services, and
Google’s Cloud platform to keep our employees connected and at the cutting edge of
business technology.
XVI. Process Maps
Darci’s and paragraphs****
XVII. Business SWOT Analysis
XVIII. Final Summaries
80
VI. References

Cherry Creek North Marketplace Profile. (2008, January 1). Retrieved February
20, 2015, from
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The Detroit Building: Property for Lease. (n.d.). Retrieved February 20, 2015,
from http://www.buellco.com/2727 E 2nd/The Detroit Building 2727 E. 2nd
Ave. Brochure 01_2015.pdf

Flatirons Crossing - Market Profile. (2014, March 1). Retrieved February 18,
2015, from
http://assets2.macerichepicenter.com/FileManager//Property/LongTermLeasi
ng/FlatIronCrossing/MarketProfile/Flatiron 2014 Profile.pdf

http://www.forbes.com/sites/matthewcarroll/2012/02/22/how-fashionbrands-set-prices/2/

--------------------------------------------------------------------------------------------

Five Four Club. (n.d.). Retrieved March 19, 2015, from
https://www.fivefourclothing.com/new/










Women's Sportswear, Activewear & Workout Clothes | Fabletics. (n.d.). Retrieved
March 19, 2015, from http://www.fabletics.com
Welcome to IKEA.com - IKEA. (n.d.). Retrieved March 19, 2015, from
http://www.ikea.com
How to Do Inventory Management in a Small Retail Clothing Store. (n.d.). Retrieved
March 17, 2015, from http://smallbusiness.chron.com/inventory-managementsmall-retail-clothing-store-26214.html
UPS Freight Shipment Time and Cost. (n.d.). Retrieved March 17, 2015, from
https://wwwapps.ups.com/fctc/processLtlEntry?loc=en_US
Return Management: UPS Small Business Solutions. (n.d.). Retrieved March 17,
2015, from http://www.ups.com/content/us/en/bussol/browse/ups-smallbusiness/return-management.html?srch_pos=5&srch_phr=return shipping
81
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







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


Supply Chain KPI Examples. (n.d.). Retrieved March 17, 2015, from
http://www.klipfolio.com/resources/kpi-examples/supply-chain
The Detroit Building: Property for Lease. (n.d.). Retrieved February 20, 2015, from
http://www.buellco.com/2727 E 2nd/The Detroit Building 2727 E. 2nd Ave.
Brochure 01_2015.pdf
Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs &
more. (n.d.). Retrieved March 18, 2015, from http://www.amazon.com
Triple Net Lease Definition | Investopedia. (2003, November 24). Retrieved March
19, 2015, from http://www.investopedia.com/terms/n/netnetnet.asp
How to Do Inventory Management in a Small Retail Clothing Store. (n.d.). Retrieved
March 17, 2015, from http://smallbusiness.chron.com/inventory-managementsmall-retail-clothing-store-26214.html
General liability quotation. (n.d.). Retrieved March 16, 2015, from
https://www.insurancebee.com/ecomms/step-fourquote.aspx?v=32129506&q=80231225
Disability Insurance Quote. (n.d.). Retrieved March 16, 2015, from
http://www.mutualofomaha.com/disability-insurance/plan/quote.php?src=ltchome-plan

Le, J. (2015, March 13). [E-mail interview by the author]. Jim_Le@cable.comcast.com.

Sales KPI Examples. (n.d.). Retrieved March 18, 2015, from
http://www.klipfolio.com/resources/kpi-examples/sales










Lead Generation. (n.d.). Retrieved March 18, 2015, from http://room214.com/ourservices/lead-generation
----------unedited------http://www.allbusiness.com/can-you-survive-on-keystone-markups-in-retailtoday-15529809-1.html
http://www.nordstromsupplier.com/content/sc_manual/suppliercompliance%20
master.pdf
http://www.entrepreneur.com/article/76418
82
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
http://style.time.com/2013/01/28/can-a-stranger-dress-you-better-than-youdress-yourself/slide/five-four-club/
---Comment from woman user, asking if there are any sites that offer a
similar service for women
http://www.thedenverchannel.com/money/consumer/denver-ranked-no-3-cityfor-recent-college-graduates-by-forbes
Tax info:
http://www.denvergov.org/Portals/571/documents/Denver_Combined_Tax_Rates_
2015.pdf
http://www.smbiz.com/sbrl001.html
Loan info
https://practicefinance.wellsfargo.com/loan-calculator.html
Suppliers:
http://www.zulily.com/women-professionaldress?fromSearch=true&searchTerm=women+professional+dress
http://www.theimmediateresource.com/Dressy-Suits-s/100.htm
http://www.papilloneastern.com/fhquick14.cfm
Five Four Club. (n.d.). Retrieved March 19, 2015, from
https://www.fivefourclothing.com/new/
i
Women's Sportswear, Activewear & Workout Clothes | Fabletics. (n.d.). Retrieved March
19, 2015, from http://www.fabletics.com
ii
Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more.
(n.d.). Retrieved March 18, 2015, from http://www.amazon.com
iii
How to Do Inventory Management in a Small Retail Clothing Store. (n.d.). Retrieved
March 17, 2015, from http://smallbusiness.chron.com/inventory-management-smallretail-clothing-store-26214.html
iv
83
UPS Freight Shipment Time and Cost. (n.d.). Retrieved March 17, 2015, from
https://wwwapps.ups.com/fctc/processLtlEntry?loc=en_US
v
Return Management: UPS Small Business Solutions. (n.d.). Retrieved March 17, 2015,
from http://www.ups.com/content/us/en/bussol/browse/ups-small-business/returnmanagement.html?srch_pos=5&srch_phr=return shipping
vi
Supply Chain KPI Examples. (n.d.). Retrieved March 17, 2015, from
http://www.klipfolio.com/resources/kpi-examples/supply-chain
vii
http://www.allbusiness.com/can-you-survive-on-keystone-markups-in-retail-today15529809-1.html
viii
http://www.nordstromsupplier.com/content/sc_manual/suppliercompliance%20master.
pdf
http://www.entrepreneur.com/article/76418
http://style.time.com/2013/01/28/can-a-stranger-dress-you-better-than-you-dressyourself/slide/five-four-club/
---Comment from woman user, asking if there are any sites that offer a similar
service for women
http://www.thedenverchannel.com/money/consumer/denver-ranked-no-3-city-forrecent-college-graduates-by-forbes
Tax info:
http://www.denvergov.org/Portals/571/documents/Denver_Combined_Tax_Rates_2015.p
df
http://www.smbiz.com/sbrl001.html
Loan info
https://practicefinance.wellsfargo.com/loan-calculator.html
Suppliers:
http://www.zulily.com/women-professionaldress?fromSearch=true&searchTerm=women+professional+dress
http://www.theimmediateresource.com/Dressy-Suits-s/100.htm
84
http://www.papilloneastern.com/fhquick14.cfm
Welcome to IKEA.com - IKEA. (n.d.). Retrieved March 19, 2015, from
http://www.ikea.com
ix
Triple Net Lease Definition | Investopedia. (2003, November 24). Retrieved March 19,
2015, from http://www.investopedia.com/terms/n/netnetnet.asp
x
How to Do Inventory Management in a Small Retail Clothing Store. (n.d.). Retrieved
March 17, 2015, from http://smallbusiness.chron.com/inventory-management-smallretail-clothing-store-26214.html
xi
General liability quotation. (n.d.). Retrieved March 16, 2015, from
https://www.insurancebee.com/ecomms/step-fourquote.aspx?v=32129506&q=80231225
xii
Disability Insurance Quote. (n.d.). Retrieved March 16, 2015, from
http://www.mutualofomaha.com/disability-insurance/plan/quote.php?src=ltc-home-plan
xiii
xiv
Le, J. (2015, March 13). [E-mail interview by the author]. Jim_Le@cable.comcast.com.
Sales KPI Examples. (n.d.). Retrieved March 18, 2015, from
http://www.klipfolio.com/resources/kpi-examples/sales
xv
Lead Generation. (n.d.). Retrieved March 18, 2015, from http://room214.com/ourservices/lead-generation
xvi
----------unedited-------
85