subject: Costs Estimation Should Form An Integral Part Of A Boutique Business Plan [print this page] Most lexicons define boutique as a small shopping outlet offering highly specialized services or products especially for an elite audience. A boutique can sell expensive and fashionable items like clothes, perfumes, watches, and jewelry. People have more disposable income today than their parents or grandparents ever did. This has given rise to a growing consumer culture where consumers are not averse to splurging on designer brands or one-of-a-kind items to enhance their stature in society.
A boutique business offers new vistas of opportunities for budding and enthusiastic entrepreneurs. But business by virtue of its catering to a niche audience will entail heavy initial expenditure and a business plan for a boutique should talk actively about this factor.
Points that need to be taken into account are:
Costs
A boutique will usually seek attention from consumers with high disposable income. Boutiques are usually found in ultra-luxury hotels or upscale markets frequented by rich and wealthy customers. Whether you will buy the property or lease it will depend upon your budget. Bear in mind that both options are expensive and need substantial cash input. Marketing costs will be on the higher side too.
Branding and imaging is of immense importance in such type of businesses: both require a lot of effort, money, and time. A business plan should be very specific about the methods you will employ to build a brand for your business and the promotions you will carry out to reach and entice your target clientele to convince them your business is elite and highly specialized.
Business Model
Your business plan will give a description about the products you will be selling and the model you will follow. You may have a boutique for watches, perfumes, clothing, or jewelry among other things. There has been this growing trend of concept stores that indulge in cross selling (sale of additional product or service to existing customers.) Some boutiques manufacture unique products or services while others just sell articles that are intentionally produced in low numbers to signify exclusivity and carry an unusually high price tag. You have to decide beforehand the model you will be subscribing to.
Production, Distribution, and Inventory Management
A business plan for a boutique should lay special emphasis on factors like sourcing of products, suppliers, quality control measures to be applied, sales promotion, and inventory management. Inventory management is of special importance given the fact that you will be selling expensive high-end products. Too much inventory will result in significant amount of tied capital which could be utilized more productively elsewhere.
A boutique is an expensive business proposition and the financiers must think that you have the wherewithal to make it happen. A business plan for boutique should carry honest facts with realistic risks and returns scenario. This involves a high degree of comprehensive financial as well as marketing planning and strategy.
