Lucky Penny Business Plan
“Find a penny, pick it up and all day long you’ll have good luck!”
the Lucky Penny team
Alicia Gonzalez Owner
Jany Yang Company Manager
Alicia Gonzalez and Jany Yang were friends first before becoming business partners. They met while studying fashion marketing and management at the Savannah College of Art and Design. Alicia’s passion for owning her own business is where Lucky Penny’s concept began but with the help enlisted from Jany, the concept became reality. Their passion for finding beauty in used clothing is a gift they want to share with others. Alicia and Jany are dedicated to the Lucky Penny consignment business and are set out to receive a small business loan in order to execute their plan to its fullest potential.
our business concept
1. CONSIGN
2. SELL
3. DONATE
*50/50 consignment split *60 day consignment period
*It’s Lucky Penny’s discretion to price items as we see fit
*After 60 days, clothing will be donated unless consignor picks them up
the Lucky Penny mission
MISSION
Our business is based on honesty and communication. With our knowledge for fashion, we will provide every client with a professional and fair consigning experience.
the Lucky Penny vision
VISION
“To provide a customized shopping experience by hand selecting products exclusively with our customers’ wants in mind.”
the Lucky Penny values Value proposition
“Lucky Penny is a consignment boutique for fashion conscious women. We see our customers as invited guests to a party, and we are the hosts. Through our questionnaires and conversations, we exclusively hand select all of our products with our customers wants and styles in mind. Lucky Penny creates the ultimate customized shopping experience each time you visit.”
HONESTY
APPEARANCE
ADVENTURE
COMMUNITY
COMMUNICATION
TEAMWORK
BELONGING
AESTHETIC
FAIRNESS
KNOWLEDGE
legal issues
Registering a name:
Lucky Penny
Business Structure: LLC (single member) Owner: Alicia Gonzalez Company manager: Jany Yang Business License/Permit: Number of employees: Other things to consider:
Georgia State Tax ID # Must register w/ the Secretary of State Must file for a New Business Tax Return Form Business Liability Insurance 0 (Will hire 1 intern) Consignment Agreement
consignment agreement LUCKY PENNY CONSIGNMENT AGREEMENT Thank you for choosing to consign with Lucky Penny. We appreciate your business and vow to make your consigning experience fun and exciting! Here are few guidelines to assist you in your consignment experience: * We encourage you to take a look through our store to familiarize yourself with our price points. * Clothing will only be accepted if in excellent condition and on trend with the current styles. * When bringing in your items, please ensure that they are clean and free of any defects; it is not necessary to bring your items in on a hanger. * Please do not take offense if we do not accept certain pieces that you bring in. We work primarily on past and present experience on what sells, as well as what we already have in our inventory. to ensure the sale of your items. How it works: * When an item is sold, the consignor receives 50% of the selling price. * Payouts are done on the 15th of the month. * Consignors must contact us before the end of the pay period if they would like to receive their check via mail carrier. * Checks less than $30 can be cashed out at any time. become the property of Lucky Penny and will be donated. * If you wish to pick up your unsold items, it is your responsibility to do so, we will not call you. * We will do our best to protect your items but we are not responsible for loss or damage of any item * When you bring items in to consign, please wait for your receipt and your returns. If not, all returns will be donated after the second business day. I have read, understand and agree to the above terms. ____________________________________ Consigners Signature
___________________________ Date
____________________________________ Address
_________________ City/State
____________________________________ Phone Number
_________________ Email
______________________ Zip Code
-----------------------------------------------------------------------------------------------------------Address: 5521 Abercorn Street, Savannah, GA 31405 | Website: www.luckypenny.com | Phone: 912.996.6550 Email: info@luckypenny.com | Store Hours: Tuesday - Saturday 11am - 6pm, Sunday 12pm - 6pm, Closed Mondays
Covers: *Consignment terms *Guidelines *How to get paid for sold items *Time frame for picking up unsold items **Lucky Penny will keep a signed agreement from every consignor on file.
ethics
At Lucky Penny we believe in ethical business practices including assuring that the highest legal and moral standards are observed in our relationships with the people in our business community. This includes the most important person, our customer.
product selection *Women’s Clothing -Tops -Dresses -Bottoms -Skirts -Sweaters -Jackets -Outerwear *Women’s Shoes -Sandals -Heels -Boots *Women’s Accessories -Jewelry -Scarves -Handbags Pricing strategy: 60% off automatically at time of consignment. If item does not sell within the first 30 days, another markdown will be taken.
brands we love
Success lies in the product selection!
target market Who is she? Age: 30-65 years Income: $50,000/yr+ Location: Savannah, Ga Occupation: Corporate Business Position Vals: Experiencer Education: College Graduate (Bachelor’s) Family: Married or divorced w/ children Products: Enjoys finding pieces and changing them to fit her style. Appreciates the beauty of vintage and antique products. Personality: She appreciates the unconventional. She spends a high portion of her income on fashion, socializing, and entertainment. She enjoys turning a space into her own domain. Traits: Well traveled, well read, appreciates innovation, artfulness and good design taste.
meet Melissa Parker
Melissa Parker
-30 years old -$40,000 a year -Attorney -Married w/ no children -Enjoys consignment shopping for the value and the thrill of finding designer pieces -Favorite place to eat: Leoci’s Trattoria -Favorite place for beauty products: Nourish -Favorite place to splurge: Anthropologie
meet Jean Wright
Jean Wright
-40 years old -$55,000 a year -Hotel Coordinator for the Andaz Hotel -Married w/ children -Enjoys consignment shopping for the enjoyment of finding unique pieces -Favorite place to eat: The Mansion on Forsyth -Favorite local museum: Telfair Museum -Favorite place to splurge: Custard Boutique
meet Meredith Spencer
Meredith Spencer
-55 years old -Retired -Divorced -Enjoys consignment shopping for the excitement of finding vintage-like pieces -Favorite place to eat: The Olde Pink House -Favorite place in Savannah: Historic Savannah Theatre -Favorite place to splurge: Gaucho
location Savannah, GA population: 142,022 people / 52% female average income: $36,760 a year per capita income: $18,472 average age: 31 years old Address: 5521 Abercorn Street Savannah, GA 31405 Rent: $1633/month 980 square ft. / 36 month lease Near: Twelve Oaks Shopping Center and next to Abercorn Walk Nearby: Ann Taylor Loft, White House Black Market, BleuBelle Boutique Details: Includes 33 parking spaces and owner will build to suit
industry overview
Industry growth: The resale industry has experienced extreme growth within the past couple of years. Approx. 7% a year for the past two years. Revenue: The resale industry is a multi-billion dollar a year industry. An estimated $13 billion is generated a year in this industry alone. Attraction: Resale shopping attracts consumers from different economic levels. There is no typical resale shopper just like there is no typical resale shop. Fact: According to America’s Research Group, 12-15% of American’s will shop at a consignment store a year. Economic factors: With value-conscious consumers and America’s economic state, the resale market is blossoming.
competition within the area
Cherry Picked Consignments
Designers Consignment
402 West Brought St Savannah, Ga 31401 *Open since 2009 *Offers a 50% consignment *Utilizes Facebook
234 Eisenhower Dr Savannah, Ga 31406 *Open since 2012 *Offers a 40% consignment *Utilizes Facebook
branding
website design
Lucky Penny’s website will serve as a platform where customers can come to for information about our store and history. Our consignment process will be posted to the site as well as our consignment contract.
social media
Lucky Penny
Lucky Penny’s social media platforms will serve as our main instruments in connecting with our customers. We will utilize Facebook and Instagram as a way to connect with our customers and to keep them informed on the latest products available in-store.
shopping and garment bag
store front
marketing strategy Being involved
Knowledgeable about trends
Asking Questions!
SCAD Community
grand opening for Lucky Penny
March 6th, 2015 from 12pm - 4pm DJ: Balloons: Cupcakes: Champagne: Free Giveaways:
Phong Dang ($525) Two dozen ($25) Gigi’s Cupcakes ($178.75) - 5 dozen cupcakes Moet and Chandon ($1200) - 24 bottles Gift Certificates (4 for $50)
Invited guests: -All customers obtained up to this point -Savannah Morning News - Michelle Rubrecht -Savannah’s Women In Business Leaders -Local Radio Stations -South Magazine -Other local boutique owners -Important Personnel from SCAD
grand opening invitation
Lucky Penny Grand Opening!
Back
Lucky Penny Grand Opening! Front
When: March 6th, 2015 Where: 5521 Abercorn St Time: 12pm-4pm Contact: 912.996.1234 You’re cordially invited to Lucky Penny’s Grand Opening! Enjoy cupcakes, champagne, music and free giveaways. We look forward to your attendance!
Please join us!
financial projections Lucky Penny
Cash Flow: Jan $ -‐ $ -‐ $ -‐
Sales COGS (50%) Gross Profit Total units per month Total units per day
Feb $ 1,200 $ (600) $ 600 34 2
Mar $ 3,000 $ (1,500) $ 1,500 86 4
Apr $ 5,500 $ (2,750) $ 2,750 157 8
May $ 7,500 $ (3,750) $ 3,750 214 11
Jun $ 10,000 $ (5,000) $ 5,000 286 14
Jul $ 12,000 $ (6,000) $ 6,000 343 17
Aug $ 15,000 $ (7,500) $ 7,500 429 21
Sept $ 15,000 $ (7,500) $ 7,500 429 21
Oct $ 15,000 $ (7,500) $ 7,500 429 21
Nov $ 15,000 $ (7,500) $ 7,500 429 21
Dec 2015 $ 15,000 $ 114,200 $ (7,500) $ (57,100) $ 7,500 $ 57,100 429 21
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 1,800 $ 200
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 300 $ 1,280 $ 250 $ 500 $ 4,330
$ 1,800 $ 21,600 $ 200 $ 2,400 $ -‐ $ 300 $ 3,600 $ 1,280 $ 15,360 $ 250 $ 3,000 $ 500 $ 6,000 $ 4,330 $ 51,960
$ (4,330)
$ (3,730)
$ (2,830)
$ (1,580)
$ (580)
$ 670
$ 1,670
$ 3,170
$ 3,170
$ 3,170
$ 3,170
$ 3,170 $ 5,140
Monthly Expenses Rent (downtown Sav.) Business Insurance Biz Payment Utilities Wages Misc Supplies Advertising Total Net Income
est. 1400sq ft
$8/hr x 160 hrs
$ -‐
Start up costs: Rent Utilities Racking Signage Total
$ 1,800 $ 10,800 6 months $ 300 $ 1,800 6 months $ 2,500 $ 2,500 $ 17,600
Monetary considerations: Small business loan for $30,000 / 5-year loan
5%
Thank You For Considering Lucky Penny!