Clothing Store Business Plan Template

Financial Plan

Key Revenue & Costs

The revenue drivers for Lisa Jade Fine Clothing will be the merchandise they carry and sell at their boutique store. They will carry clothing for young women, young men, tweens, and children. They will also carry accessories for young ladies such as purses, wallets, sunglasses, and socks and hose.

The cost drivers will be the cost of procuring their clothing from a local factory that will source the fabric and manufacture the clothing. The net cost will be 20% from what they will price these clothing items. Other cost drivers are the cost to procure accessories and select clothing from other warehouses and overhead expenses such as rent, utilities, and payroll costs.

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Funding Requirements and Use of Funds

Lisa Jade Fine Clothing is seeking $150,000 in debt financing to open its boutique retail location in New Haven, Connecticut. The funding will be dedicated for leasehold improvements, design, working capital, and opening inventory. The breakout of the funding is below:

  • Store design/build: $50,000
  • Opening inventory: $75,000
  • Working capital: $25,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Customers Per Day: 30
  • Average Item Cost: $20.50
  • Average Ticket per Customer: $47.50
  • Annual Lease: $30,000

Financial Projections

 

Income Statement

 FY 1FY 2FY 3FY 4FY 5
Revenue$1,080,000 $2,472,768 $2,830,825 $3,240,728 $3,709,986
Total Expenses$962,000 $1,539,107 $1,719,742 $1,901,321 $2,112,641
EBITDA$118,000 $933,661 $1,111,082 $1,339,407 $1,597,344
Depreciation$25,600 $25,600 $25,600 $25,600 $25,600
EBIT$92,400 $908,061 $1,085,482 $1,313,807 $1,571,744
Interest$29,946 $26,202 $22,459 $18,716 $14,973
PreTax Income$62,455 $881,858 $1,063,023 $1,295,091 $1,556,772
Income Tax Expense$21,859 $308,650 $372,058 $453,282 $544,870
Net Income$40,595 $573,208 $690,965 $841,809 $1,011,902

 

Balance Sheet

  FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$280,608$819,222$1,475,216$2,281,622$3,257,625
Accounts receivable$0$0$0$0$0
Inventory$90,000$103,032$117,951$135,030$154,583
Total Current Assets$370,608$922,254$1,593,167$2,416,652$3,412,208
Fixed assets$170,700$170,700$170,700$170,700$170,700
Depreciation$25,600$51,200$76,800$102,400 $128,000
Net fixed assets$145,100 $119,500 $93,900 $68,300 $42,700
TOTAL ASSETS$515,708$1,041,754$1,687,067$2,484,952$3,454,908
LIABILITIES & EQUITY
Debt$403,113$345,525$287,938$230,350 $172,763
Accounts payable$72,000$82,426$94,361$108,024 $123,666
Total Liability$475,113 $427,951 $382,298 $338,374 $296,429
Share Capital$0$0$0$0$0
Retained earnings$40,595 $613,803 $1,304,769 $2,146,578$3,158,479
Total Equity$40,595$613,803$1,304,769$2,146,578$3,158,479
TOTAL LIABILITIES & EQUITY$515,708$1,041,754$1,687,067$2,484,952$3,454,908

 

Cash Flow Statement

  FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$40,595 $573,208 $690,965 $841,809$1,011,902
Change in working capital($18,000)($2,606)($2,984)($3,416)($3,910)
Depreciation$25,600 $25,600 $25,600 $25,600 $25,600
Net Cash Flow from Operations$48,195 $596,202 $713,581 $863,993 $1,033,591
CASH FLOW FROM INVESTMENTS
Investment($170,700)$0$0$0$0
Net Cash Flow from Investments($170,700)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$403,113 ($57,588)($57,588)($57,588)($57,588)
Net Cash Flow from Financing$403,113 ($57,588)($57,588)($57,588)($57,588)
Net Cash Flow$280,608$538,614 $655,994 $806,406$976,004
Cash at Beginning of Period$0$280,608$819,222$1,475,216$2,281,622
Cash at End of Period$280,608$819,222$1,475,216$2,281,622$3,257,625