Executive Summary
New to the market, [Company Name] is an online boutique carrying only the finest in handpicked apparel, accessories, and decorative goods. Our mission is to meet the demands of today’s fashion-forward shoppers for high-quality products at prices they can afford.
Overview: Rebel Vine Boutique was born out of a desire to defy society’s beauty and fashion norms by offering ethically sourced items beneficial for you and the environment. We are aware that change takes time, but we can make sustainable beauty and fashion the norm. So we’re here for the rule-breakers as well as the rule-makers. We provide valuable items to you, the craftsman, and the environment. We take pleasure in choosing items that exhibit at least one of the following qualities: Fair Trade, Cruelty-Free, Handmade, Sustainable, and Organic are just a few of the terms that come to mind when thinking about this product. Many of our goods are designed to symbolize different components. We offer something for everyone, from classic clothing to clean and gentle skincare to handcrafted jewelry. Feel confidence in your ability to look good, feel fantastic, and add a lot of individuality.
Mission: Create a healthier lifestyle for both fashion and beauty product curators and consumers.
Vision: Rebel Vine, we believe, will alter society’s perception of the fashion and cosmetics industries. By delivering ethically and responsibly sourced goods, we will safeguard the environment and mankind.Industry Overview: Due to lower demand and increased government restrictions that have limited brick-and-mortar stores’ operational capacity, revenue for the Clothing Boutiques market is predicted to fall 35.7 percent in 2020. Due to a successful vaccination deployment and fewer limitations, demand has increased in 2021 and 2022. In 2020, the industry earnings saw a significant drop due to decreased demand and temporary shop closures. Supply chain constraints have caused inflationary pressures, raising industrial procurement prices since the COVID-19 (coronavirus) pandemic. The Cost Structure Benchmarks chapter has further information. Despite increased competition from online retailers, which has worsened during pandemic-related closures, the sector is not likely to reach pre-pandemic sales levels in the five years to 2027.
Financial Overview:
Financial Highlights:
| Liquidity | 2020A | 2021A | 2022F | 2023F | 2024F |
| Current ratio | 6 | 12 | 23 | 32 | 42 |
| Quick ratio | 6 | 11 | 22 | 31 | 40 |
| DSO | 8 | 8 | 8 | 8 | 8 |
| Solvency | |||||
| Interest coverage ratio | 8.2 | 11.1 | 14.2 | ||
| Debt to asset ratio | 0.01 | 0.01 | 0.2 | 0.18 | 0.16 |
| Profitability | |||||
| Gross profit margin | 51% | 51% | 53% | 53% | 53% |
| EBITDA margin | 12% | 14% | 21% | 22% | 22% |
| Return on asset | 5% | 6% | 13% | 14% | 14% |
| Return on equity | 5% | 6% | 16% | 17% | 17% |
FUND USAGE
Industry Analysis
Innovation is not uncommon in the fashion business. The fashion and clothing business has 13 of the top 20 DTC companies. The shortlist includes Skims, Allbirds, and Gymshark, demonstrating the online dominance of fashion businesses. The fashion business is undergoing seismic transformations due to digital innovation, increased globalization, and consumer buying patterns. The fashion industry is more unsure than ever before due to the coronavirus’s expedited retail apocalypse. The coronavirus epidemic has wreaked havoc on fashion eCommerce projections during the previous three years. When worldwide lockdowns were implemented in March 2020, 27% of US shoppers stated they intended to spend less on luxury and fashion products than they had budgeted.
According to Statista, the online fashion industry’s compound annual growth rate (CAGR) is expected to reach 14.2% between 2017 and 2025, with a worth of $672.71 billion by 2023. In 2021, clothes, footwear, and accessory sales soared to $180.5 billion in the United States alone. Consumers are expected to spend $204.9 billion on online fashion products, up 13% from the previous year. All apparel businesses can promote, sell, and fulfill orders internationally and automatically, thanks to lower digital barriers to entry. Consequently, revenue and revenue per user (ARPU) are expected to increase globally.
In 2021, the clothing and accessories sectors in the United States alone accounted for 29.5 percent of all internet sales. Each European consumer will spend $999 on fashion-related things by 2025. Clothing Boutiques are businesses with just one location specializing in high-end or specialty items. Clothing shops are especially vulnerable to macroeconomic volatility since they often sell high-priced. Increases in per capita disposable income, for example, usually boosts industrial revenue. Despite increases in the broader economy, industrial demand has weakened in the five years leading up to 2022, owing to foreign competition and the worldwide effect of the COVID-19 (coronavirus) pandemic, which began in 2020.
In 2018, the online fashion market was valued at $439 billion. By 2024, this astonishing sum is estimated to be more than quadruple ($953 billion), with a current forecast of $758 billion in 2021. Clothing, accessories, and footwear, which are predicted to account for 32.8 percent of fashion eCommerce sales by 2024, are driving this significant development. We anticipate witnessing a large growth in the penetration rate and channel share of the fashion market as the years go from 2021 to 2024, with increases in all three major sectors and fashion eCommerce in general.
By 2021, online channel sales are estimated to account for 22% of global fashion market revenues, with eCommerce penetration reaching 50%. There are no limits to the opportunities in the online fashion market, with development projected to continue for the foreseeable future. The fashion industry’s eCommerce sales are increasing globally, and this trend is projected to continue shortly. On the other hand, certain nations are growing exponentially, vastly outpacing others.
In 2020, China sold over $284 billion worth of goods, with the United States coming in second with just over $126 billion. Despite China’s considerably faster development in the industry than other countries, the expansion of the US and UK should not be overlooked. Many western countries and brands continue to play an essential role in pushing up worldwide sales, and this trend is predicted to continue, just as it has in China. It’s worth noting that many customers in western countries, such as the United States, spend more per user, suggesting that China’s rapid rise is partly due to the mere fact that it has a far greater population to target.
Resale is a fashion eCommerce trend that is coming back as the fashion industry works toward a more sustainable model as post-pandemic spending habits compel firms to be more responsible. The online and offline resale market, which is expected to expand at a 39 percent annual pace from $7 billion in 2019 to $36 billion by 2024, has a fresh lease of life in its drive to remain an inexpensive, sustainable method stay up with fashion. The resale market was on course to quadruple before the outbreak. This expansion might now accelerate. As the epidemic wreaks havoc on the economy, resale sites are reaping the benefits.
Resale revenue in the United States climbed by more than 50% from 2008 to 2016 after the Great Recession. Sales at department stores dropped by 25% due to the rise, and history seems to be repeating itself.
In 2019, resale was already expanding 25% faster than the whole retail industry, with about 20,000 used product outlets producing $17.5 billion in yearly sales throughout America, according to a survey published by First Research.
Marketing Plan:
Website: We have a user-friendly website with a variety of product alternatives. Our pricing and images are periodically verified and updated.
Email: We’ll send out emails on a regular basis with special product releases and other emails that will entice potential consumers to visit our site.
Social Media: Using engaging photographs and videos to boost our social media channel.
SEO: Our on-page material naturally utilizes our consumers’ language, making it easier for them to find.
Blogging: To encourage consumers, we will provide useful and entertaining material.
Organogram:
Financial Plan:
Earnings:
Break-Even Analysis:
Income Statement:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| ANNUAL REVENUE | |||||
| Item 1 | 9,217 | 59,117 | 175,410 | 415,277 | 781,357 |
| Item 2 | 34,701 | 222,558 | 660,368 | 1,563,394 | 2,941,580 |
| Item 3 | 4,067 | 19,561 | 46,432 | 78,519 | 114,905 |
| Total annual revenue | 47,985 | 301,236 | 882,211 | 2,057,189 | 3,837,842 |
| % increase | 528% | 193% | 133% | 87% | |
| COST of REVENUE | |||||
| Item 1 | 360 | 2,259 | 6,617 | 15,429 | 28,784 |
| Item 2 | 480 | 3,012 | 8,822 | 20,572 | 38,378 |
| Item 3 | 52,000 | 65,000 | 78,000 | 91,000 | 104,000 |
| Item 4 | 720 | 3,615 | 8,822 | 16,458 | 23,027 |
| Item 5 | 140,000 | 336,000 | 560,000 | 840,000 | 1,120,000 |
| Item 6 | 60,000 | 144,000 | 240,000 | 360,000 | 480,000 |
| Item 7 | 32,000 | 61,333 | 85,533 | 112,153 | 141,435 |
| Total Cost of Revenue | 285,560 | 615,220 | 987,794 | 1,455,612 | 1,935,625 |
| as % of revenue | 595% | 204% | 112% | 71% | 50% |
| Gross Profit | -237,575 | -313,984 | -105,583 | 601,578 | 1,902,218 |
| SELLING & ADMIN EXPENSES | |||||
| Item 1 | 28,000 | 96,800 | 154,880 | 175,692 | 193,261 |
| Item 2 | 75,000 | 105,000 | 120,000 | 120,000 | 120,000 |
| Item 3 | 36,000 | 96,000 | 108,000 | 120,000 | 120,000 |
| Item 4 | 8,000 | 12,000 | 12,000 | 12,000 | 12,000 |
| Item 5 | 3,839 | 18,074 | 44,111 | 61,716 | 115,135 |
| Item 6 | 3,359 | 12,049 | 26,466 | 41,144 | 76,757 |
| Item 7 | 5,600 | 10,000 | 12,904 | 15,034 | 17,376 |
| Item 8 | 6,667 | 14,000 | 22,067 | 30,940 | 40,701 |
| Total selling & admin expenses | 166,464 | 363,924 | 500,428 | 576,525 | 695,230 |
| as % of revenue | 347% | 121% | 57% | 28% | 18% |
| Net profit | -404,039 | -677,907 | -606,011 | 25,052 | 1,206,987 |
| Accumulated net profit | -404,039 | -1,081,947 | -1,687,957 | -1,662,905 | -455,918 |
Cash Flow Statement:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| CASH FLOW from OPERATING ACTIVITIES | |||||
| Net profit before tax | -$404,039 | -$677,907 | -$606,011 | $25,052 | $1,206,987 |
| Depreciation | $44,267 | $85,333 | $120,504 | $158,127 | $199,512 |
| Payables | |||||
| Item 1 | $4,333 | $5,417 | $6,500 | $7,583 | $8,667 |
| Item 2 | $11,667 | $28,000 | $46,667 | $70,000 | $93,333 |
| Item 3 | $6,250 | $8,750 | $10,000 | $10,000 | $10,000 |
| Item 4 | $3,000 | $8,000 | $9,000 | $10,000 | $10,000 |
| Item 5 | $667 | $1,000 | $1,000 | $1,000 | $1,000 |
| Total payables | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| change in payables | $25,917 | $25,250 | $22,000 | $25,417 | $24,417 |
| Receivables | |||||
| Item 1 | $320 | $1,506 | $3,676 | $5,143 | $9,595 |
| Item 2 | $360 | $1,807 | $4,411 | $8,229 | $11,514 |
| Total receivables | $680 | $3,314 | $8,087 | $13,372 | $21,108 |
| change in receivables | -$680 | -$2,634 | -$4,773 | -$5,285 | -$7,736 |
| Net cash flow from operating activities | -$334,536 | -$569,958 | -$468,280 | $203,311 | $1,423,180 |
| CASH FLOW from INVESTING ACTIVITIES | |||||
| Item 1 | $16,000 | $13,200 | $14,520 | $15,972 | $17,569 |
| Item 2 | $20,000 | $22,000 | $24,200 | $26,620 | $29,282 |
| Item 3 | $28,000 | $22,000 | $14,520 | $10,648 | $11,713 |
| Item 4 | $96,000 | $88,000 | $72,600 | $79,860 | $87,846 |
| Item 5 | $20,000 | $22,000 | $24,200 | $26,620 | $29,282 |
| Net cash flow/ (outflow) from investing activities | -$180,000 | -$167,200 | -$150,040 | -$159,720 | -$175,692 |
| CASH FLOW from FINANCING ACTIVITIES | |||||
| Equity | $400,000 | $440,000 | $484,000 | $532,400 | $585,640 |
| Net cash flow from financing activities | $400,000 | $440,000 | $484,000 | $532,400 | $585,640 |
| Net (decrease)/ increase in cash/ cash equivalents | -$114,536 | -$297,158 | -$134,320 | $575,991 | $1,833,128 |
| Cash and cash equivalents at the beginning of the year | – | -$114,536 | -$411,693 | -$546,014 | $29,978 |
| Cash & cash equivalents at the end of the year | -$114,536 | -$411,693 | -$546,014 | $29,978 | $1,863,105 |
Balance Sheet:
| 2020A | 2021A | 2022F | 2023F | 2024F | |
| NON-CURRENT ASSETS | |||||
| Item 1 | $16,000 | $29,200 | $43,720 | $59,692 | $77,261 |
| Item 2 | $20,000 | $42,000 | $66,200 | $92,820 | $122,102 |
| Item 3 | $28,000 | $50,000 | $64,520 | $75,168 | $86,881 |
| Item 4 | $96,000 | $184,000 | $256,600 | $336,460 | $424,306 |
| Item 5 | $20,000 | $42,000 | $66,200 | $92,820 | $122,102 |
| Total | $180,000 | $347,200 | $497,240 | $656,960 | $832,652 |
| Accumulated depreciation | $44,267 | $129,600 | $250,104 | $408,231 | $607,743 |
| Net non-current assets | $135,733 | $217,600 | $247,136 | $248,729 | $224,909 |
| CURRENT ASSETS | |||||
| Cash | -$114,536 | -$411,693 | -$546,014 | $29,978 | $1,863,105 |
| Accounts receivables | $680 | $3,314 | $8,087 | $13,372 | $21,108 |
| Total current assets | -$113,856 | -$408,380 | -$537,927 | $43,349 | $1,884,214 |
| Total Assets | $21,878 | -$190,780 | -$290,791 | $292,078 | $2,109,122 |
| LIABILITIES | |||||
| Account payables | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| Total liabilities | $25,917 | $51,167 | $73,167 | $98,583 | $123,000 |
| EQUITIES | |||||
| Owner’s equity | $400,000 | $840,000 | $1,324,000 | $1,856,400 | $2,442,040 |
| Accumulated net profit | -$404,039 | -$1,081,947 | -$1,687,957 | -$1,662,905 | -$455,918 |
| Total equities | -$4,039 | -$241,947 | -$363,957 | $193,495 | $1,986,122 |
| Total liabilities & equities | $21,878 | -$190,780 | -$290,791 | $292,078 | $2,109,122 |