Triangle Exchange

Triangle Exchange Business Plan

MDS, Owner/Founder 773.123.0123 MDS@triangleexchange.com 1510 W. Fullerton Ave Chicago, IL 60612

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Table of Contents Executive Summary Company Overview Mission Statement Vision Statement Product and Service Store Location Marketing and Sales Plan Demographics and Psychographics Triple Bottom Line Competition Partnerships Company Organization and Management Structure Operation’s Manual Job Descriptions Organizational Flow Chart Accounting and Financial Information Reports 3-year Financial Projection Investing Risks Incentives Works Cited

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Executive Summary Have you effectively demonstrated the purpose of your business plan in a 1 page narrative executive summary (max)? (10%)

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Company Overview Mission Statement We strive to support our community by: ● ● ●

providing affordable, environmentally-friendly and non-gendered apparel to a diverse audience, especially LGBT, hiring previously incarcerated people (non-violent offenders) and students from the Chicagoland area and providing a living wage and benefits, offering free support services to community members and donating transitional products to those who cannot afford them.

Vision Statement We imagine a Chicago where marginalized people are supported environmentally, socially and culturally through innovative and conscious businesses.

Product and Service We will provide cultivated secondhand clothing and accessories in as many styles, sizes and types as we can find. We will also provide used vinyls, a popular and growing market.1 To help our transgender customers, we will sell new chest binders from gc2b which will include a free sizing service and a donation service for used binders for those who cannot afford them.

Have you explained the appropriate legal structure for your business? (5%) LLC

Store Location The store will be located at Fullerton Lofts, 1510 W Fullerton Avenue, in the heart of the DePaul Neighborhood. We will be renting the space from Group Fox Management for $3,466/month, which includes property tax. The space has many amenities including parking, heating and cooling, a fireplace, laundry use, close access to the Red, Brown and Purple ‘L’ lines, high ceilings, natural light, and an open layout with hardwood flooring.

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​Rosenblatt, Bill. “Vinyl is bigger than we thought, Much bigger.”​ Forbes.com​, Forbes, 18 Sept.

2018.

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Marketing and Sales Plan Demographics and Psychographics Chicago is a great city for a business with a target audience of 15 to 35. The age chart of Chicago spikes at 25-29, with more than 10 percent of the total population falling in between these ages.2 It is a very accessible city with regards to public transportation (meaning everyone has access to our location) so I will not be focusing on the demographics of the specific neighborhood. About 28% of the population takes public transportation everyday to get to work, school, or home, which allows for a large market of people with access. The overall goal will be that customers will be coming from all over the city. I am aiming for all of the products to be $50 or less, with the average price per item landing at about $5-$15, which works well for a city whose median yearly income is about $55,000, which is solidly middle-class. Chicago and Cook County are solidly liberal and blue, with more than 60% of Cook County residents voting democratic in the most recent presidential election.3 There is an estimated 146,000 adults who identify as LGBT living in Chicago, though the real number is likely much larger, especially if you consider people under eighteen years old, who are more likely to identify in the LGBT community. A large amount of audience will be based in LGBT people, but I will also be focusing on allies due to the left-leaning population of Chicago. 4 Our brand will be focusing on the affordable and wide-reaching ad campaigns of the CTA (Chicago Transit Authority). According to the 2010 CTA market research, the majority of consistent CTA riders are younger, with 28% of riders falling in between sixteen and thirty years old, and more than 54% live within the city.

5 We will also be taking advantage of the free platform of social media, focusing specifically on Instagram and recruiting brand ambassadors through the app. Brand ambassadors will receive free products once a month and will post pictures of the apparel with the company’s account tagged to increase awareness of the brand.

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​Bebo, Victor. “Chicago, IL.” ​Data USA,​ Data Wheel.

​Bentle, Kyle. “In Illinois, Chicago-Area Clinton Votes Overtook Rest of State.”

Chicagotribune.com​, The Chicago Tribune, 9 Nov. 2016.

4 ​“Race and Ethnicity in Chicago, Illinois (City).” ​The Demographic Statistical Atlas of the United States - Statistical Atlas​, US Census Bureau.

5 ​O’Malley, Tara. “CTA Rider and Non-Rider Behavior and Attitudes Survey.” Chicago Transit Authority, Abt SRBI, 1 Sept. 2010.

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5 They will be recruited using our account and will be compensated in product.

Triangle Exchange Example Ad (​shutterstock​, C ​ hristina S​ and MDS) 2019.

Triple Bottom Line As a company, we are committed to following the three principles of the Triple Bottom Line concept; people, planet and profit: People: We will be paying our workers a living wage, starting at $13/hour, and increasing with inflation and possible promotions or bonuses. We are committed to supporting our local community by hosting events such as open mics, hosting bands or singers, and by becoming a go-to place in the neighborhood where LGBT people, especially young adults, feel safe and comfortable to be.

Planet: The clothing industry in a large contributor to the world’s pollution. About 20% of the world’s water pollution stems from apparel making, and the amount of water used to make one cotton shirt (2,700 liters) is enough drinking water to sustain someone for two and a half years.6 By only selling second-hand and responsibly-sourced apparel, we will be cutting down on the stress to the environment, if even in our own little way.

Profit: The resale and secondhand clothing markets are quickly growing. In 2018, 56 million women bought second-hand products, up from an estimated 44 million women in 2017.7 As shoppers become more environmentally and socially conscious, they become more open to seeking out shops and stores that provide products that benefit both the earth and the community, leading this to be a open and willing market.

Competition ● ●

Ragstock ○ A secondhand and new apparel shop that has three locations in Chicago.

Buffalo Exchange

Partnerships ●

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Out of the Closet ○ A non-for-profit thrift shop that uses proceeds to offer free HIV and STD testing for LGBT people around the country, with one location in Chicago.

The Center on Halsted ○ gc2b ○ A trans-owned and designed chest binder company

​Drew, Deborah, and Genevieve Yehounme. “The Apparel Industry's Environmental Impact in 6 Graphics.” ​WRI.org​, World Resources Institute.

7 ​Reinhart, James. “2019 Fashion Resale Market and Trend Report.” ​ThredUP.com,​ ThreadUp. 6

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Company Organization and Management Structure Job Descriptions Leader: Someone who is in charge of long-term company health and growth. This position will include the duties of: ● ● ● ●

Contacting potential partners Marketing and spreading word about events, sales, etc.

Hiring other positions such as Managers and Sales Associates Contacting outside contractors (Accountant)

Manager: Someone who is in charge of say-to-day operations and is well-versed in company policy and is the lead contact between the Leader and the Sales Associates. This position will include the duties of: ● ● ● ● ●

Assigning daily tasks for Sales Associates and making sure that they are completed Communicating with customers if there are any conflicts Contacting the Leader if there are any issues or concerns from staff Being a source for information about company policies and protocol Pricing new items and paying for apparel

Sales Associate: Someone who is in charge of contact with customers and keeping the store in order day-to-day. This position will include the duties of: ● ● ● ● ●

Opening/Closing the store Helping customers around the store (finding products, giving recommendations, etc.)

Sizing customers for transitional wear Organizing new products and keeping shelves/racks in order Checking customers out

Accountant/Human Resources: An outside contractor who will be hired to: ● ● ●

Complete taxes each year Keep payroll for all employees Write staff contracts

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Organizational Flow Chart

Operation’s Manual For a Sales Associate, this a portion of what their daily routine would look like.

Opening Routine 1.

2.

3.

4.

Unlock front and back doors, turn on master lights and shelf lights.

Check for any packages, and/or phone messages.

Turn store sign to ‘Open’.

Put on name badge, go behind cashier desk and organize if needed.

When a Customer comes in: 1.

2.

3.

4.

5.

6.

Say with a smile: “Welcome to Triangle Exchange, my name is _______, let me know if you need any help!

When a customer checks out, ask if they would like to donate a dollar to the Center on Halsted.

Ask if they have a rewards punch card. If they don’t: a. Ask if they would like one, and remind them that a rewards card means a 15% discount on every fifth purchase. b. If they ask for one, ask for their email and record it in the company computer.

Ask if they would like to purchase a paper bag for 7¢ Place the receipt and any event/promotional flyers into the bag or hand them to the customer with the folded and organized products.

Hand the bag to the customer, smile and say: “Thank you for coming today, see you again.”

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Accounting and Financial Information Reporting Financial reports will be sent out to the public semi-quarterly, and to stakeholders each quarter.

As a social entrepreneur, I want to make sure that the public can be involved in the company as much or as little as they would like to be, and that anyone reading the reports can understand them. Doing so increases trust in the business, and makes it possible for new investors to get involved with less effort.

3 year Financial Projection Spreadsheet

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Investing We are asking for an overall investment of $40,000. This investment will be used to: ● ● ● ●

Purchase starting product and pay employees Furnish the store and redecorate to fit the brand Pay for rent, taxes and utility Purchase a store sign and a business license

Risk Because apparel and merchandise can be acquired with little-to-no investment, this business is very low-risk. According to SmallBusiness.com, a thrift or second-hand store is essentially a recession proof business.8 When the economy is bad, people are more likely to shop at thrift shops. When the economy is good, people are much more likely to donate items to second-hand stores.

Incentives As an investor, you will receive 25 percent of the profits for each profitable quarter, and be fully paid off in an estimate of 3 years and one quarter. Other benefits will include a 50% discount on any merchandise,

As an investor, you will receive a 25 percent share of the company.

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​Swanston, Brenna. "Thrift Stores & Average Income." Small Business - Chron.com. April 9 2019.

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Works Cited