BUSINESS PLAN - storage.googleapis.com€¦ · BUSINESS PLAN Published January 2015 Just My Luxe, LLC Darla G. Wilton [email protected] (832)758-0525 2321 Soaring Star Lane, Frisco,

BUSINESS PLAN

Published January 2015

Just My Luxe, LLC

Darla G. Wilton

[email protected]

(832)758-0525

2321 Soaring Star Lane, Frisco, TX 75034

Just My Luxe, providing the ultimate in business attire for women, with

access to an exquisite portfolio of the most refined and elegant luxury

designer fashions and accessories from around the world.

Investor Information

2 Just My Luxe, LLC [email protected] 832 758 0525 www.justmyluxe.com

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Table of Contents 1.0 Executive Summary ............................................................................................... 3

1.1 Our Objectives ........................................................................................................................ 4

1.2 Mission Statement ................................................................................................................. 4

1.3 Keys to Success ....................................................................................................................... 4

1.4 Investor Return & Financial Overview .............................................................................. 5

2.0 Company Summary ............................................................................................... 6

2.1 Company Ownership ............................................................................................................. 6

2.2 Pre-Operating Source & Use of Funds ............................................................................. 6

3.0 Market Needs ....................................................................................................... 7

3.1 Products and Services ........................................................................................................... 7

4.0 Market Analysis .................................................................................................... 9

4.1 Market Segmentation ......................................................................................................... 10

4.2 Competitive Landscape ...................................................................................................... 11

4.3 Industry Summary ................................................................................................................ 12

4.4 Industry Analysis .................................................................................................................. 13

5.0 Marketing Strategy/Implementation ................................................................................. 15

5.1 Web Summary ...................................................................................................................... 16

5.2 SWOT Analysis ...................................................................................................................... 17

5.3 Our Milestones ..................................................................................................................... 17

5.4 Strategic Model .................................................................................................................... 18

6.0 Management Summary ....................................................................................... 19

6.1 Management Gaps .............................................................................................................. 19

7.0 Financial Summary .............................................................................................. 21

7.1 Revenue Forecast ................................................................................................................. 21

7.2 Personnel Forecast ............................................................................................................... 23

7.3 Income Statement................................................................................................................ 24

7.4 Statement of Cash Flow ..................................................................................................... 26

7.5 Balance Sheet ........................................................................................................................ 28

7.6 Break-Even Analysis............................................................................................................. 29

7.7 Best & Worst Case ............................................................................................................... 30

Appendix A – Year 1 Financials ................................................................................. 31


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1.0 Executive Summary

The women’s apparel market is by far the leader of the overall apparel market in the United States – accounting

for over 50% of sales. Women’s apparel sales reached more than $116 billion in 2013. This is up from $112

billion in 2012 and $108 billion in 2011. Market research firm NPD Group attributes the growing sales to a

“frugal fatigue” experienced during the recession as well as a reviving economy and enhanced selections.

Specialty stores have been the best performers in recent years and had 2013 sales of $42 billion. In addition,

online apparel and accessories generated nearly $45 billion in 2013 and will reach an estimated $86 billion by

2018. A new concept in recent years – and one that has the potential to fundamentally change the industry – is

online high-end apparel rental. Brands such as Rent the Runway (which earned an estimated $51 million in 2014)

and Bag Borrow or Steal have pioneered the couture rental market. However, no company currently targets the

vast market of women’s business attire.

Just My Luxe, LLC (“the Company”) is a new business attire rental firm that will operate a full-service e-

commerce website as well as brick-and-mortar boutiques in select markets. The mission of Just My Luxe is to

provide exquisite luxury business attire by high-end luxury designers from all over the world to middle-income

and mass-affluent women. This target market has the financial means to frequently rent high-end business attire

but cannot afford or does not want to purchase luxury business attire that can often cost $3,000 or more. In

addition, all too often the typical shopping experience results in a letdown: the clothes don’t fit right, limited time

to shop, are too expensive, and styles quickly change. Just My Luxe can fill this gap by providing the most

unique experience, with the latest designer business attire that the consumer can continually acquire for minimal

expense (typically 15-20% of the retail purchase price).

Just My Luxe is a technology-focused company that will merge the best online and mobile technology with the

sensibility of a personal stylist with the expertise in professional attire for today’s on-the-go consumer. At

JustMyLuxe.com, members will have access to state-of-the-art technology to match the perfect attire for the

perfect occasion, and the right fit for their specific body type. Members will also have real-time access through

online chat and video to assist with all style questions. Clothing is rented for 4-8 days, and overnight shipping

and a pre-addressed return container included. Just My Luxe will also have showrooms in major markets like

New York City, Dallas, and a number of other cities for trying on before renting. This two-pronged strategy will

help reach a large segment of the millions of women who will benefit from the Company’s high-end business

attire rentals.

Just My Luxe is led by founder and CEO Darla Wilton, a strategy-driven financial service executive with broad-

based business transformation and development experience acquired in dealing with financial institutions,

turnarounds and start-ups. She has an MBA and a proven track record of exceptional strategic planning, results

execution, and world-class talent management. Ms. Wilton is currently Vice President & Chief Administrative

Officer at Ameritas Investment Corp., where she oversees the business operations with over $150 million in sales.

Ms. Wilton has extensive insight and first-hand knowledge of the needs of today’s busy businesswoman, which

will influence Just My Luxe operations from top to bottom. She will be joined by a highly experienced and

professional team that will position Just My Luxe as a leading women’s apparel and accessories rental company.

To launch Just My Luxe, the Company is seeking seed investment of $1,500,000. Funding will be used to

develop the website and technology infrastructure, acquire inventory, marketing, and hiring staff.

“A girl should be two things: classy and fabulous.”- Coco Chanel


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1.1 OUR OBJECTIVES

Secure funding, assemble advisory board, engage marketing strategy and technology architects,

finalize business and logistical details, and launch site in mid-2015

Employ a multichannel marketing approach that incorporates strong technology and traditional

media.

Drive consumers online and to stores to gain more information and to order products

Implement cutting-edge technology to round out the marketing approach, with an integrated

platform to provide a seamless experience across all channels, and to reflect and relay the brand

image of Just My Luxe as a high-end, luxury business attire rental boutique.

Provide the most unique experience, with the latest designer business attire that the consumer can

continually acquire for minimal expense.

Launch retail boutiques.

To provide the ultimate in business attire for women, with access to an exquisite portfolio of the most refined

and elegant luxury designer fashions and accessories from around the world. Just My Luxe seeks to

illuminate the power, confidence, and beauty of a woman through impeccable style.

Just My Luxe must follow these principles in order to achieve success in the marketplace:

Deliver the most exclusive, prestigious, and sought-after brands of business attire and accessories.

Maintain luxury standards for its customers and continuously monitor this quality.

Preserve the attire in optimal condition to extend the rental life.

Maintain excellence in the skill of luxury service through hiring, training, and staff expertise.

Listen carefully to customer needs and respond with personalized products and services, whether in

person, over the phone, or through digital interactions.

1.2 MISSION STATEMENT

1.3 KEYS TO SUCCESS


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5

InvestmentYears

Invested

Investment

Multiple

5th Year

Value

Company

Share

Initial $1,500,000 5 2.5 $3,750,000 35.9%

Total $1,500,000 2.5 $3,750,000 35.9%

5th Year

Multiple

Company 6.0

IRR

Normal Case 14.9%

Best Case 24.0%

Worst Case 5.1%

Investor Return

5th Year Company

Earnings5th Year Company Value

$1,741,369 $10,448,215

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Revenue $1,606,221 $2,420,062 $3,067,797 $3,742,882 $4,566,523

Gross Profit $1,114,242 $1,678,806 $2,128,142 $2,596,451 $3,167,814

Operating Profit $174,442 $599,846 $934,385 $1,303,010 $1,769,598

Earning Before Interest &

Taxes $151,213 $575,367 $908,656 $1,276,031 $1,741,369

Earnings $151,213 $575,367 $908,656 $1,276,031 $1,741,369

Gross Margin Percentage 69.4% 69.4% 69.4% 69.4% 69.4%

Operating Profit Percentage 10.9% 24.8% 30.5% 34.8% 38.8%

EBIT Percentage 9.4% 23.8% 29.6% 34.1% 38.1%

Earnings Percentage 9.4% 23.8% 29.6% 34.1% 38.1%

Net Cash Flow $25,498 $484,820 $829,438 $1,177,170 $1,618,266

Cash Balance $520,498 $1,005,318 $1,834,756 $3,011,925 $4,630,191

Financial Overview

The Investor Return section details the investor(s) initial investment, investment multiple, investment fifth year

value, investor(s) share of the Company, the value of the Company in the fifth year, and internal rate of return for

3 different cases.

FINANCIAL OVERVIEW

$

1.4 INVESTOR RETURN & FINANCIAL OVERVIEW

INVESTOR RETURN


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2.1 COMPANY OWNERSHIP

Just My Luxe, LLC was incorporated in the state of Texas in August 2014, headquartered in Frisco, TX.

Just My Luxe, LLC is wholly owned by Darla G. Wilton.

The Pre-Operating Source & Use of Funds section details the Expenses, Assets, Inventory, Investment and

Debt needed to facilitate the Company’s business objectives. The Pre-Operating expenses and funding

occur before the Company receives revenue.

Total Source of Funds $1,550,000

Total Use of Funds $1,055,000

Month 1 Starting Cash $495,000

Total Source & Use of Funds

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Investment Debt Expenses Assets Cash

$1,550,000

$0

$120,000

$935,000

$495,000

Total Source & Use of Funds

Expenses

Marketing & Advertising $75,000

Travel & Entertainment $25,000

Legal & Accounting $10,000

Contractors $10,000

Total Expenses $120,000

Assets

Inventory $750,000

Property $0

Equipment $185,000

Other Long-Term Assets $0

Total Assets $935,000

Total Use of Funds $1,055,000

Pre-Operating Use of Funds

Investment

Ow ner $50,000

Investor $1,500,000

Total Investment $1,550,000

Debt

Current Debt $0

Long-Term Debt $0

Total Debt $0

Total Source of Funds $1,550,000

Pre-Operating Source of Funds

2.0 Company Summary

2.2 PRE-OPERATING SOURCE & USE OF FUNDS

PRE-OPERATING USE OF FUNDS PRE-OPERATING SOURCE OF FUNDS

TOTAL SOURCE & USE OF FUNDS


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3.0 Market Needs There are numerous factors that have precipitated growth in the upscale women’s apparel rental market. Perhaps

the most obvious is that it is cheaper to rent than buy, especially for special-occasion attire that is often very

expensive and may only be used once or twice. However, the middle-market and mass-affluent woman is starved for

time. They are “in information-search mode” when they purchase today. Value remains a top priority among these

consumers, and although they will search for information, they don’t want to do that much hard work. Therefore, it is

essential that the experience and value make the difference in delivering the right information, for the right product, at

the right time, and at the right price.

Attributes of this market segment also indicate that these women continue to be concerned about the economy, even

as it improves. The mass-affluent status is not a synonym for “free-spender.” She will spend if it is important to her,

but wants to be sure she’s getting her money’s worth. With that said, this attitude trickles to various verticals, where

she is willing to spend extra for certain items like designer clothing if it means they get more style, comfort, service or

a higher-quality product. This is the market need that Just My Luxe Business Attire Rentals will solve: that of a high-

end yet affordable alternative to purchasing and a fast, convenient method for obtaining these items.

There are also many other reasons for which a one-time rental is a better option that buying. Among these are

special occasions or an important meeting or event, in addition to times of transition of the body, including

pregnancy, weight gain or weight loss.

Just My Luxe will allow for all of these consumer groups to have the latest and most sought-after designer business

and special-occasion attire and accessories to take woman from the boardroom to dinner in haute couture style, and

for a fraction of the cost of purchasing at retail pricing.

3.1 PRODUCTS & SERVICES

Just My Luxe will provide high-end business attire rentals from a variety of luxury designers across the world, and in a

variety of sizes and styles to accommodate any individual style and occasion. The Company will use an intelligent

approach to affordable and accessible business luxury wear, with an online and boutique concept that will provide a

truly unique luxe experience with access to both online and brick-and-mortar shopping.

Just My Luxe will offer the following products and services online:

o High-end designer business attire from around the world

o Luxury attire suitable for day to evening events

o Stylists on demand via chat or video app to assist with style

questions, fit, and occasion, etc.

o Luxe Case – luxury, high-end samples of cosmetics and

skincare

o Reserve attire for particular date

o Rent for 4 to 8 days, with a premium for 8 day rental

o Shipped overnight to arrive by specified date

o Return shipping container with pre-addressed label for

easy return

o Insurance purchase option

o Clothing professional cleaned and repaired before each rental

o Sale of retired designer attire


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Just My Luxe, through brick-and-mortar boutiques will offer:

o The ability to try on high-end designer business attire from around the world

o A large selection of in-stock luxury attire suitable for day to evening events, as well as ability to order

from Just My Luxe’s extensive warehouse

o Personal design consultants on demand to assist with style questions, fit, occasion

o Luxe Case – luxury, high-end samples of cosmetics and skincare

o Reserved attire for a particular date, or select and carry out

o Rent for 4 to 8 days, with a premium for 8 day rental

o Shipped overnight to arrive by specified date, or same-delivery in boutique cities

o Return shipping container with pre-addressed label for easy return

o Sale of retired designer attire

The customers will rent products directly from JustMyLuxe.com through the secure server, and the Company will ship

all ordered products from a central warehouse. Just My Luxe will also generate sales through boutique stores to be

located in large metropolitan cities. All telephone orders will be taken at the central store through a single (800)

line. All debits and credits, order transactions, charge backs, and price discounts will be processed through the

accounting management system. A state-of-the-art proprietary CRM system will handle all front- and back-office

operations for JustMyLuxe.com. A mobile app will also allow for on-the-go ordering, consultations, and order

tracking.

Brick-and-mortar stores will be launched in year two. The Company’s home market of the Dallas-Fort Worth metro

area will be a likely initial location with other select markets like New York, Los Angeles, San Francisco, San Diego,

Houston, Phoenix, Chicago, Washington DC, and Boston soon to follow. After initial roll-out and evaluation of

results, the Company will expand its marketing to additional market areas in the Northeast, Southeast, Midwest and

the West Coast, in addition to jewelry and other business-related accessories. Each store will be properly outfitted

with several amenities the Company believes will be appreciated by its members and new clients. They will also be

able to host parties and will feature a champagne/wine bar for relaxing and socializing while shopping.


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4.0 Market Analysis In 2013, total women’s apparel sales reached $116.4 billion, up 4% from $112.3 billion in 2012, after 3% growth from

$108 billion in 2011. According to the latest full-year report from research firm NPD Group, specialty stores accounted

for $42 billion of sales. Growth has been fueled by a revived economy and pent up sales demand. NPD chief

industry analyst Marshal Cohen states that, “I think this also goes back to the ‘Frugal Fatigue’ phenomenon we have

been watching.” Sales by retail channel are outlined below.1

Total U.S. online apparel and accessories sales were estimated at $44.7 billion in 2013, up from $38 billion in 2012.

Online sales were projected to reach $52 billion in 2014, and by 2018 projections are estimated to reach $86

billion.2 Wall Street analysts expect growth “to continue at a high-teens growth rate for at least the intermediate

term.” According to Barclays Capital analyst Matthew McClintock, online operating profit margin are 15 percentage

points higher physical stores, though online can also drive in-store sales. Mr. McClintock notes that “specialty

apparel chains’ control and distribution of their own brand also has shielded them from competition from

Amazon.com.”3

The rapid expansion of online sales is in line with consumer trends of being comfortable buying nearly anything over

the internet, including items that people need to try on first. From eyewear to custom-tailored clothing, recent startups

have changed the business models of the industry in which they operate. The same is now true for online clothing

rental boutiques. Companies such as Rent The Runway and Bag Borrow or Steal are allowing consumers to

inexpensively rent high-end items they might not otherwise be able to afford. This model “presents a real threat to

the market share of department stores,” according to Business Insider. Their success “can be attributed to the fact

that it’s more consumer-friendly: Consumers get a better product at a cheaper price, and get to return it like they

wanted to all along.” For example, prom dresses, which are a $4 billion annual market, have in the past often been

purchased and then returned the next day. In response, department stores implemented a no-returns policy,

eliminating the“rental” of these dresses. Similarly, one-time big events mean shelling out hundreds of dollars for

attire. Companies like Rent the Runway (and now Just My Luxe) can offer the same attire and accessories that are

1 NPD Group. “U.S. Women’s Apparel Market Grew 4 percent in 2013.” April 2014. https://www.npd.com/wps/portal/npd/us/news/press-

releases/the-npd-group-reports-us-womens-apparel-market-grew-4-percent-in-2013/ 2 eMarketer. “US Retail Ecommerce Sales Highest for Computers, Consumer Electronics.” April 11,, 2014.

http://www.emarketer.com/Article/US-Retail-Ecommerce-Sales-Highest-Computers-Consumer-Electronics/1010759 3 Market Watch. “Online, international expansion seen as biggest growth drivers.” April. 2, 2013. http://www.marketwatch.com/story/despite-

headwinds-apparel-retailers-a-buy-2013-04-02

2013 U.S. WOMEN’S APPAREL BY CHANNEL


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carried in stores like Nordstrom, Saks, Neiman Marcus and even higher-end stores for an affordable rental

charge.4

The market for formal wear rental in the U.S. is estimated at $973 million. There are 1,400 establishments

nationwide, according to IBISWorld. In addition to men’s tuxedo rentals, the market also includes women’s formal

wear rental and accessories and sale of ex-rental items.5

Just My Luxe customers are a cross section of women. From fashionistas, trendsetters, influential, and professional

consumers who love shopping to women to prefer to dress more traditional, the Company can meet their rental

needs. They are typically ages 18-65. They will range from affluent luxury consumers to up-and-comers and

general fashion consumers who crave the latest high-end styles and trends.

According to luxury lifestyle market research firm Unity Marketing, “Out of the nation’s 117.5 million households,

there are 23.5 million affluent households at the top 20 percent of the market. Luxury marketers future depends

upon engaging these ‘heavy lifters’ in the consumer economy who together account for more than 50 percent of all

income and earnings and more than 40 percent of all consumer spending…there are really only two income

segments that really matter in the current luxury market:”6

HENRYs (a term coined by Fortune writer Shawn Tully which stands for High Earners Not Rich Yet, incomes

between $100,000 and $249,999);

Ultra-Affluents - The top two percent of households with incomes of $250,000 and above.

“There are 10 HENRY households for even one ultra-affluent household,” according to Unity’s Pam Danziger. “And

while the typical ultra-affluent household typically spends three-to-four times more than a HENRY on luxury goods

and services, targeting only the ultra-affluent will never make up the shortfall of ignoring the still affluent and high-

spending HENRYs.”

In addition, everyday women, especially younger consumers in “middle market” households, a group comprising

an estimated 47 million households, will be able to afford the fashionable and reasonably priced goods at Just My

Luxe. The Company will also be targeting the U.S. clothing boutique market. The market in the U.S. for clothing

boutiques is $25 billion annually, according to market research firm IBISWorld. There are nearly 37,500 businesses

in this market, employing 181,000 people. The market saw positive though small growth for the past five years,

coming out of the recession staring in 2010 and having strong year-over-year growth, including estimated growth

of 2% in 2013. IBISWorld states that, “The Clothing Boutiques industry typically caters to high-end or niche markets

and is reliant on strong conditions for consumers…Over the next five years, retail conditions are expected to improve

as per capita disposable income rises and consumer confidence recovers.”7

4 Business Insider. “Rent The Runway poses a threat to department stores.” March 13, 2013. http://www.businessinsider.com/rent-the-

runway-hints-at-ipo-2013-3 5 IBISWorld. “Formal Wear & Costume Rental in the U.S.” May 2014. http://www.ibisworld.com/industry/default.aspx?indid=1369 6 Unity Marketing. http://www.unitymarketingonline.com/cms/Home/Luxury_Press_Releases/mass_affluent_henrys_2-18-2014.php 7 IBISWorld. “Clothing Boutiques in the U.S.” Dec. 2013. http://www.ibisworld.com/industry/clothing-boutiques.html

4.1 MARKET SEGMENTATION


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When measuring head-to-head, direct competitors, the Company has found that there are none that specifically

offer the products and services to the business professional as Just My Luxe. The Company will be the first high-

end designer rental company that serves the needs of business professionals. However, there is still competition

from a few other retailers that rent special occasion dresses, handbags and accessories as follows:

Rent the Runway: RTR, the national leader of rental designer special occasion dresses, had revenues in

fiscal year 2014 estimated at $51 million (source: PrivCo - 01/07/15). That is an increase of nearly 100%

over fiscal year 2013. RTR currently has approximately 5.5MM members and has raised $116MM in

venture capital funding since launching their operations on 11/09/09. According to RTR CEO Jenn

Hyman, the company is intending to use the $60 million in funding it received in December 2014 to open

retail outlets in 15 markets where consumers can try on outfits, and establish a west coast distribution

center.8

Lending Luxury: Lending Luxury (aka Wear Today, Gone Tomorrow) also rents designer special occasion

dresses. There is no information on venture capital funding for Lending Luxury. This company was

founded in 2009 and revenues are estimated at $1.5 million for 2014 (source: PrivCo – 01/06/15).

Bag Borrow or Steal: Bag Borrow or Steal (aka Avelle) rents luxury designer handbags and accessories

for a variety of occasions, and had revenues in fiscal year 2013 of approximately $17 million (source:

PrivCo – 01/07/15). Their revenues have remained consistently between $16 - $17 million each year

since 2009. Research shows as of 2013 BBoS has raised approximately $41MM in venture capital

funding. This company was founded in 2004.

The major strengths of these competitors are their size and length of time in business. They are very well known

and accepted with a large client base. Bag Borrow or Steal, for instance, was featured in the 2008 film version

of “Sex and the City,” bringing it widespread fame.

However, in all comparisons, Just My Luxe’s business model and products provide more features for

businesswomen, and the Company intends to have superior performance via its online customer service and

fitting help, along with brick-and-mortar boutiques. At Just My Luxe, the Company thinks outside of the box and

will stay as current as possible with the latest fashion trend while catering to the business professional as well.

8 Fortune. “Rent The Runway raises 60 million.” Dec. 19, 2014. http://fortune.com/2014/12/19/rent-the-runway-raises-60-million/

4.2 COMPETATIVE LANDSCAPE


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The Company will operate in this distinct industry; Formal Wear and Clothing Rental (NAICS 53222). Information

provided is gathered from the U.S. Census.

Sales Volume Number of Businesses

Unknow n 0.00%

Less Than $500k 64.47%

$500k to $1mil 12.04%

$1 to $2.5mil 18.40%

$2.5 to $5mil 4.46%

$5 to $10mil 0.38%

$10 to $20mil 0.09%

$20 to $50mil 0.12%

$50 to $100mil 0.02%

$100 to $500mil 0.02%

$500mil to $1bil 0.00%

Over $1bil 0.00%

USA Formal Wear & Clothing Rental

Employee Size Number of Businesses

Unknow n 0.00%

1 to 4 61.86%

5 to 9 16.83%

10 to 19 18.07%

20 to 49 2.59%

50 to 99 0.37%

100 to 249 0.23%

250 to 499 0.05%

500 to 999 0.00%

1,000 to 4,999 0.00%

5,000 to 9,999 0.00%

10,000+ 0.00%

USA Formal Wear & Clothing Rental

4.3 INDUSTRY SUMMARY


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The map below shows sales per capita for Formal Wear and Clothing Rental.

The map below shows sales in millions $ for Formal Wear and Clothing Rental.

4.4 INDUSTRY ANALYSIS


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This industry comprises establishments primarily engaged in renting clothing, such as formal wear, costumes (e.g.,

theatrical), or other clothing (except laundered uniforms and work apparel).

FORMAL WEAR AND CLOTHING RENTAL

Establishments Total Sales Annual Payroll Paid Employees

1,997 $975,859,000 $188,004,000 10,535

$17,846 $92,630

Employees per Establishment Payroll as a Percent of Sales

USA Formal Wear and Clothing Rental

Sales per Establishment Payroll per Establishment

$488,662 $94,143

5.3 19.3%

Annual Payroll per Employee Sales Per Employee

Establishments Total Sales Annual Payroll Paid Employees

160 $47,975,000 $10,960,000 598

$18,328 $80,226

Annual Payroll per Employee Sales Per Employee

3.7 22.8%

Employees per Establishment Payroll as a Percent of Sales

$299,844 $68,500

Texas Formal Wear and Clothing Rental

Sales per Establishment Payroll per Establishment


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The Just My Luxe overall advertising and promotional objectives are to position the brand as a leader in the market.

The Company intends to make a splash in the market. The Company expects to engage an extremely capable

advertising agency and public relations firm. Just My Luxe wants to be a catalyst to help women reflect the image of

themselves they want the world to see. The Just My Luxe strategic marketing intent aims to make a connection and

bring the business attire to life through a rich and dynamic website, Facebook page, Twitter page, Blog, YouTube

videos, and a Social/community site that promotes style, fashion and beauty inspiration for the professional and

career-minded woman.

The following purchasing triggers will be the premise of the marketing strategy:

Emotion: The foremost reason we buy -- gaining weight, losing weight, passion, joy, excitement can all

lead to purchasing decisions.

Value: Another strong reason to buy -- quality, craftsmanship, prestige, exclusivity, and designer label can

excite and incent the consumer to purchase.

Referral: Recognizing someone the consumer knows or respects has used Just My Luxe.

Expectation: Based on the end result of the product or service, and building anticipation and excitement for

receiving a new delivery for a particular occasion. They are purchasing beauty, confidence, and

empowerment to make a fashion statement or to create a memorable experience.

Need: This is one of the most rudimentary buying triggers that we will capitalize upon, especially in business

settings such as important meetings, presentations, job interviews, community service etc.

Internet marketing

Among the most important marketing will be online, as this is vitally important for broad-based marketing, as well as

generating sales in the coming years. As such, Just My Luxe will allot portions of its marketing budget for strategic

Internet marketing, and employ proven Internet-based marketing methods for its website, JustMyLuxe.com,

including:

SEO: The Company’s business lends itself very well to search engine optimization (SEO) because its

clothing and apparel are constantly being researched by potential customers online. SEO involves

organically improving the quality and volume of traffic to its website through search engines. Search engine

optimization can also target different kinds of searches, including image, local, and industry-specific. When

someone searches “women’s business suits,” “women’s clothing rental” or for specific brands carried by

Just My Luxe, a link to the website will ideally appear within the first pages of results.

5.0 Marketing Strategy/

Implementation


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PPC/CPM: The Company will employ a pay-per-click (PPC) and CPM (cost-per-thousand impressions)

campaign when feasible that advertises Just My Luxe along the sidebars of search engines and on relevant

websites with text and banner ads.

E-mail marketing: Just My Luxe will acquire and assemble an extensive list of leads and past potential

customer leads. This list will be continually growing and used for targeting early adopters, influential

consumers, and interested strategic partners such as luxury lines of skincare, makeup and fragrance.

Public Relations

Just My Luxe’s strong early efforts will gain multiplying effects from viral marketing and social media. Public

relations then will be used to gain editorial coverage, which is often the best means of getting the brand more

established and credible. A PR firm will be hired and will target fashion, women’s, and general consumer

magazines and websites.

Direct Mail

In addition to using direct mail to distribute its products, the Company will exercise direct customer communications

through email blasts, online ordering and promotional discounts and new season advertising through mailings.

Sales Support Collateral Materials

Just My Luxe will also develop a variety of collateral materials to support sales efforts. These items are intended to

sell products, attract and support distributors, and help retail partners sell its products. These items include elegant

presentation binders and brochures.

Trade Shows

Just My Luxe will attend select trade shows that are deemed beneficial to the Company’s growth. These will be

shows geared to high-end women’s clothing buyers and general fashion, technology, and/or business-oriented

shows.

Word of mouth

The Just My Luxe adherence to offering a quality product line of rental attire paired with superior, industry-leading

customer assistance will garner a solid and positive reputation within the women’s apparel market. The

Company’s clients will return time and again for additional rentals, while also spreading the word to their friends,

family, and colleagues. Just My Luxe intends to become recognized as the premier provider of women’s business

attire rental, enhanced through public relations and social media, etc., which in turn enhances word of mouth.

The website is in the concept design stage, and will be live after funding at www.justmyluxe.com. The RFP process

is currently under way to identify a marketing firm to help design the site, marketing concept, and packaging. The

website is expected to be extensive in the design and presentation of inventory, and the ability to reserve selections

made by customers. It will also be powered by the latest cutting-edge technology in e-commerce and interactivity.

5.1 WEB SUMMARY

http://www.justmyluxe.com/


17

17

The following is a summary of the Company’s strengths, weaknesses, opportunities, and threats.

Internal

Factors

External

Factors

Positive Negative

Vastly experienced ow ner

Strengths WeaknessesFlexibility and affordable pricing

Superior products delivered quickly

Appeals to w ide range of professionals

to lead the market

Threats

successful in their niches

Using cutting-edge technology

Other f irms have proven

lines and distribution

and affect market share

Expanding into multiple retail stores

Copy-cat brands could enter market

Some online shops offer similar products

Large companies w ith established

online ordering process

and management team

OpportunitiesOverall clothing market is grow ing

Consumers are familiar w ith

Signif icant funding needed for inventory,

technology build, and marketing strategy

Key personnel not on board at this time

During this period, we will

accomplish the following:

Assemble advisory board

Engage marketing firm

Engage technology

architect

Identify warehouse space

OUR GOALS

JAN-MAY JUN-SEP OCT-JAN



Determine reservation

management and

fulfillment needs

Determine packaging

requirements

Post/hire key personnel

Secure funding

OUR GOALS



Create brand excitement

Hire key personnel

Purchase inventory

Launch full site

Create plan to begin

boutique launch 2016

OUR GOALS

5.3 OUR MILESTONES

5.2 SWOT ANALYSIS


18

5.4 STRATEGIC MODEL

Sales/Revenue

Net Profit

Revenue per customer

Cost per customer

Net Promoter Score

MEASURES

“A” Team with

a Passion for

Luxury

Fashion

A member’s only

luxury experience

Deliver a

“WOW”

experience and

surprise them

Keep them

coming back

and sending

referrals

Deliver an elevated high-end luxury experience with

personalized accompanying services to exceed the

customer’s expectations, and at an affordable price point.

Membership and loyalty programs

Luxe Case of high-end cosmetic and skin-care samples

Community and social luxury fashion events (multi-

channel), including JML custom designs and accessories

Women Mean Business – consult on attire, accessories,

hair, and makeup for specific events (office, evening,

cruise, resort etc.)

Strategic vendor partnerships/exclusive offerings

Signature ensemble designs and advice

Define service expectations by touch point (customer

journey mapping)

Engage high-end dry cleaner and tailor of luxury

clothing

Bring the experience to life in strategically located

boutiques

On demand style consultations via on demand app

STRATEGIC MOVE

PROGRAMS

PROJECTS

Voice of the

Customer

Luxury on the

customer’s terms

TALENT BUSINESS PROCESS CUSTOMERS FINANCIAL


19

19

Darla G. Wilton, President & CEO

Darla is a highly skilled, entrepreneurial-minded leader who is an accomplished business professional with a track

record of results-driven success in building her career. She brings with her exceptional business acumen, coupled

with an in-depth knowledge and understanding of finance, management, business development. Darla is

currently Vice President & Chief Administrative Officer of Lincoln, NE-based Ameritas Investment Corp. She was

recruited to lead all aspects of the strategic transformation of this organization with over $150M in revenues, and

1,300 financial advisors. She is responsible for the overall administration of business operations to include the

strategic management office, PMO/VMO, technology infrastructure, management reporting, and board and

other stakeholder relations. She reports to the President & CEO.

Darla is also the founder and principal of COO Incite, her Dallas-based boutique business consulting firm that

provides interim COO/CAO solutions to independent Broker/Dealers/RIAs, small businesses, and non-profit

organizations. Previously, she was Director and Senior Business Consultant for RIA Customized Solutions at

Blackrock, Inc., the world’s largest asset manager. Prior positions included:

Senior Vice President and Director of Advisor Services – Williams Financial Group

Vice President of Field Development – AIG Retirement

President and Chief Compliance Officer – Interfinancial Partners, Inc.

Vice President & Branch Manager; Regional Staffing Manager, Charles Schwab & Co.

Darla holds an MBA degree in Leadership and Executive Management from the University of Texas, San Antonio,

and her undergraduate studies were conducted at Our Lady of the Lake University, in addition to possessing

numerous professional licenses and continuing education certificates.

Head Luxury Fashion Buyer

Initially, Just My Luxe will outsource this function to Lambert & Associates, a Paris based global luxury consulting

firm of retail experts specializing in the luxury market. They have a 40 year history and unsurpassed knowledge of

the industry, long-established relationships with fashion houses and designers, and strong contacts with both

suppliers and distributors.

A Head Luxury Fashion Buyer will eventually be hired by the President & CEO. Responsibilities include but are not

limited to:

Analyze market trends, consumer preferences , sell through, seasonal demands etc. to formulate a buying

practice in line with consumer/store demands

Understand designer and fashion trends in the marketplace and that of the business professional

Responsible for inventory tracking, turn rates, and merchandise display

Build and strengthen relationships with designers and suppliers

Attend trade shows and events

Negotiate vendor contracts

Assists in the sales planning process

6.0 Management Summary

6.1 MANAGEMENT GAPS


20

Marketing & Brand Management

Initially, Just My Luxe will outsource this function to Graphic Machine, a digitally focused marketing and brand

management firm based in Kansas City, MO.

The Marketing & Brand Management professional will eventually be hired by the President & CEO. Responsibilities

include but are not limited to:

All aspects of marketing activities including establish the marketing budget with the President & CEO;

create and implement marketing strategy; develop marketing materials; advertising placement; develop

direct mail and social media marketing plans

Develop and innovate all aspects of the company’s acquisition strategy including SEM, Display Media,

Retargeting, Affiliate, Direct Mail, and Email

Oversee the gathering of all customer data and lead segmentation to personalize marketing and create the

highest possible level of consumer engagement

Create and manage Customer Lifetime Value economics and ROI of all marketing channels

Oversee promotional strategy and contact strategy across the company

Identify and create brand-appropriate performance-based online marketing partnerships

Develop performance metrics and report results regularly to the executive team

Identify blue sky opportunities for member acquisition and loyalty

Publication and distribution of the quarterly newsletter or professional attire blog

Website maintenance

Chief Technology Officer

Initially, the CTO duties will be outsourced along with the platform functionality. A CTO will be hired by the

President & CEO as the operation becomes profitable and sustainable. Responsibilities include but are not limited

to:

Oversee technology strategy, budgeting and the fusion of IT and business processes

Determine how the technology is integrated to achieve business strategy

Maintain and run the technology infrastructure, network operations, applications development and

maintenance, and security

Vendor management

Professional Style Consultant

The Professional Style Consultant will be hired by the President & CEO. Responsibilities include but are not limited

to:

Act as the face of Just My Luxe by providing exceptional customer service with impeccable style

Enjoy meeting and interacting with customers

Provide customers with expert styling assistance in business attire and accessories

Manage communication with clients pre and post appointment

Demonstrate knowledge of the luxury market, products and services, how to apply in a professional

environment, and using this knowledge to build sales

Aim to achieve high personal sales goals

Establish rapport with actual and/or potential customers


21

21

The Revenue Forecast section details the revenue that the Company will receive. This section also details the direct

costs. The following graphs illustrate the amount of revenue each line item contributes.


Units

Attire Rental 5,949 8,963 11,362 13,863 16,913

Attire Sales 238 359 454 555 677

Total Units 6,187 9,322 11,817 14,417 17,590

Unit Price

Attire Rental $250.00 $250.00 $250.00 $250.00 $250.00

Attire Sales $500.00 $500.00 $500.00 $500.00 $500.00

Revenue

Attire Rental $1,487,242 $2,240,798 $2,840,553 $3,465,632 $4,228,262

Attire Sales $118,979 $179,264 $227,244 $277,251 $338,261

Gross Revenue $1,606,221 $2,420,062 $3,067,797 $3,742,882 $4,566,523

Unit Cost

Attire Rental $80.00 $80.00 $80.00 $80.00 $80.00

Attire Sales $0.00 $0.00 $0.00 $0.00 $0.00

Direct Costs

Attire Rental $475,917 $717,055 $908,977 $1,109,002 $1,353,044

Attire Sales $0 $0 $0 $0 $0

Direct Cost of Revenue $475,917 $717,055 $908,977 $1,109,002 $1,353,044

Yearly Revenue

7.0 Financial Summary

7.1 REVENUE FORECAST


22

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Mo

nth

1

Mo

nth

2

Mo

nth

3

Mo

nth

4

Mo

nth

5

Mo

nth

6

Mo

nth

7

Mo

nth

8

Mo

nth

9

Month

10

Mo

nth

11

Mo

nth

12

$93,750 $98,383 $103,245

$108,348 $113,703

$119,322 $125,219

$131,408 $137,902

$144,717 $151,869

$159,375

$7,500 $7,871

$8,260 $8,668

$9,096 $9,546

$10,018

$10,513

$11,032

$11,577

$12,150

$12,750

Attire Rental Attire Sales

YEARLY REVENUE PROJECTIONS

YEAR 1 REVENUE PROJECTIONS


23

23

The Personnel section breaks down the payroll expense line on the Income Statement. It provides total headcount,

average salary per category and total pay per category.


Headcount

Executives 4 4 4 4 4

Support Staff 0 1 2 3 4

Total Headcount 4 5 6 7 8

Compensation

Executives $118,000 $121,540 $125,186 $128,942 $132,810

Support Staff $40,000 $41,200 $42,436 $43,709 $45,020

Payroll

Executives $472,000 $486,160 $500,745 $515,767 $531,240

Support Staff $0 $41,200 $84,872 $131,127 $180,081

Total Payroll $472,000 $527,360 $585,617 $646,894 $711,322

Yearly Personnel

7.2 PERSONNEL FORECAST


24

The Income Statement is also known as a Profit & Loss Statement. This table breaks down Revenue, Cost of Revenue,

Operating Expenses, Depreciation, Interest, Taxes, and bottom line Earnings for the first five years.

.


Gross Revenue $1,606,221 $2,420,062 $3,067,797 $3,742,882 $4,566,523

Direct Cost of Revenue $475,917 $717,055 $908,977 $1,109,002 $1,353,044

Merchant Fees $16,062 $24,201 $30,678 $37,429 $45,665

Total Cost of Revenue $491,980 $741,256 $939,655 $1,146,431 $1,398,709

Gross Profit $1,114,242 $1,678,806 $2,128,142 $2,596,451 $3,167,814


Operating Expenses

Marketing & Advertising $75,000 $90,000 $99,000 $103,950 $109,148

Travel & Entertainment $96,000 $115,200 $126,720 $133,056 $139,709

Rent $60,000 $72,000 $79,200 $83,160 $87,318

Utilities $12,000 $14,400 $15,840 $16,632 $17,464

Insurance $12,000 $14,400 $15,840 $16,632 $17,464

Contractors $9,600 $11,520 $12,672 $13,306 $13,971

Legal/Accounting $9,600 $11,520 $12,672 $13,306 $13,971

Professional Fees $9,600 $11,520 $12,672 $13,306 $13,971

Office Supplies $6,000 $7,200 $7,920 $8,316 $8,732

Dues & Subscriptions $6,000 $7,200 $7,920 $8,316 $8,732

Cleaning & Janitorial $6,000 $7,200 $7,920 $8,316 $8,732

Web Hosting/Internet $12,000 $14,400 $15,840 $16,632 $17,464

Leased Equipment $24,000 $28,800 $31,680 $33,264 $34,927

Repair & Maintenance $6,000 $7,200 $7,920 $8,316 $8,732

Telephones $6,000 $7,200 $7,920 $8,316 $8,732

Total Payroll $472,000 $527,360 $585,617 $646,894 $711,322

Payroll Taxes $70,800 $79,104 $87,843 $97,034 $106,698

Payroll Benefits $47,200 $52,736 $58,562 $64,689 $71,132

Total Operating Expenses $939,800 $1,078,960 $1,193,757 $1,293,441 $1,398,216



Depreciation $23,229 $24,479 $25,729 $26,979 $28,229

Earning Before Interest & Taxes $151,213 $575,367 $908,656 $1,276,031 $1,741,369

EBIT Percentage 9.4% 23.8% 29.6% 34.1% 38.1%

Interest Expense $0 $0 $0 $0 $0

Taxes Accrued $0 $0 $0 $0 $0

Earnings $151,213 $575,367 $908,656 $1,276,031 $1,741,369


Yearly Income Statement

7.3 INCOME STATEMENT

7.3 INCOME STATEMENT


25

25

($20,000)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

Year 1 Income Statement

Gross Revenue

Gross Profit

Operating Profit

Earning BeforeInterest & Taxes

Earnings

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000


Yearly Income Statement

Gross Revenue

Gross Profit

Operating Profit

Earning Before Interest& Taxes

Earnings


26

The Statement of Cash Flow illustrates the Company’s cash received and cash spent for the five year period. The

table is broken down into three main categories; Operating, Investing, and Financing. The Operating Activities

report the Company’s business operations. Investing Activities detail the Company’s property, plant, and equipment

transactions. Financing Activities account for the Company’s paid-in capital and debt.


Operating Activities

Cash Received

Gross Revenue $1,606,221 $2,420,062 $3,067,797 $3,742,882 $4,566,523

Total Cash Received $1,606,221 $2,420,062 $3,067,797 $3,742,882 $4,566,523

Cash Used

Cost of Revenue $491,980 $741,256 $939,655 $1,146,431 $1,398,709

Payroll/Taxes/Benefits $590,000 $659,200 $732,021 $808,618 $889,152

Other Operating Expenses $349,800 $419,760 $461,736 $484,823 $509,064

Additional Inventory $138,944 $105,026 $94,947 $115,841 $141,332



Total Cash Used $1,570,724 $1,925,242 $2,228,359 $2,555,713 $2,938,257

Net Cash From/(Used By) Operating $35,498 $494,820 $839,438 $1,187,170 $1,628,266

Investing Activities

Cash Received

Proceeds from Property/Land $0 $0 $0 $0 $0

Proceeds from Equipment $0 $0 $0 $0 $0

Total Cash Received $0 $0 $0 $0 $0

Cash Used

Purchase of Property/Land $0 $0 $0 $0 $0

Purchase of Equipment $10,000 $10,000 $10,000 $10,000 $10,000

Total Cash Used $10,000 $10,000 $10,000 $10,000 $10,000

Net Cash From/(Used By) Investing ($10,000) ($10,000) ($10,000) ($10,000) ($10,000)

Financing Activities

Cash Received

Proceeds from Investors $0 $0 $0 $0 $0

Proceeds from Long-Term Debt $0 $0 $0 $0 $0

Total Cash Received $0 $0 $0 $0 $0

Cash Used

Dividends Paid $0 $0 $0 $0 $0

Repayment of Long-Term Debt $0 $0 $0 $0 $0

Total Cash Used $0 $0 $0 $0 $0

Net Cash From/(Used By) Financing $0 $0 $0 $0 $0

Net Cash Flow $25,498 $484,820 $829,438 $1,177,170 $1,618,266

Cash Balance $520,498 $1,005,318 $1,834,756 $3,011,925 $4,630,191

Yearly Statement of Cash Flow

7.4 STATEMENT OF CASH FLOW


27

27

($500,000)

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

Q1 Y

1

Q2 Y

1

Q3 Y

1

Q4 Y

1

Q1 Y

2

Q2 Y

2

Q3 Y

2

Q4 Y

2

Q1 Y

3

Q2 Y

3

Q3 Y

3

Q4 Y

3

Q1 Y

4

Q2 Y

4

Q3 Y

4

Q4 Y

4

Q1 Y

5

Q2 Y

5

Q3 Y

5

Q4 Y

5

Quarterly Statement of Cash Flow

Net Cash Flow Cash Balance

($100,000)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Mo

nth

1

Mo

nth

2

Mo

nth

3

Mo

nth

4

Mo

nth

5

Mo

nth

6

Mo

nth

7

Mo

nth

8

Mo

nth

9

Mo

nth

10

Mo

nth

11

Mo

nth

12

Year 1 Statement of Cash Flow

Net Cash Flow Cash Balance


28

The Balance Sheet shows the Company’s Assets, Liabilities, and Shareholders’ Equity for a given time period.


Assets

Current Assets

Cash $520,498 $1,005,318 $1,834,756 $3,011,925 $4,630,191

Inventory $888,944 $993,970 $1,088,917 $1,204,758 $1,346,090

Other Current Assets $0 $0 $0 $0 $0

Total Current Assets $1,409,442 $1,999,287 $2,923,673 $4,216,683 $5,976,281

Long-Term Assets

Property $0 $0 $0 $0 $0

Equipment $195,000 $205,000 $215,000 $225,000 $235,000

Other Long-Term Assets $0 $0 $0 $0 $0

Accumulated Depreciation ($23,229) ($47,708) ($73,438) ($100,417) ($128,646)

Total Long-Term Assets $171,771 $157,292 $141,563 $124,583 $106,354

Total Assets $1,581,213 $2,156,579 $3,065,235 $4,341,266 $6,082,635

Liabilities

Current Liabilities

Current Debt $0 $0 $0 $0 $0

Total Current Liabilities $0 $0 $0 $0 $0

Long-Term Liabilities

Long-Term Debt $0 $0 $0 $0 $0

Total Long-Term Liabilities $0 $0 $0 $0 $0

Total Liabilities $0 $0 $0 $0 $0

Shareholders' Equity

Paid-in Capital

Ow ner $50,000 $50,000 $50,000 $50,000 $50,000

Investor $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000

Total Paid-in Capital $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000

Retained Earnings

Previous Retained Earnings ($120,000) $31,213 $606,579 $1,515,235 $2,791,266

Current Earnings $151,213 $575,367 $908,656 $1,276,031 $1,741,369

Total Retained Earnings $31,213 $606,579 $1,515,235 $2,791,266 $4,532,635

Total Shareholders' Equity $1,581,213 $2,156,579 $3,065,235 $4,341,266 $6,082,635

Total Liabilities & Equity $1,581,213 $2,156,579 $3,065,235 $4,341,266 $6,082,635

Yearly Balance Sheet

7.5 BALANCE SHEET


29

29

The Break-Even Analysis details two different break-even points. The Operating Break-Even accounts for the

Company’s revenue and expenses on the Income Statement. The Investment Cash Flow Break-Even takes the

Operating Break-Even one step further by including the inflow and outflows of the Cash Flow. The Investment Cash

Flow Break-Even looks at all transfers of money except investments.

Analysis Month

Operating Break-Even 11

Investment Cash Flow Break-Even 33

Break-Even

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

Month

Operating Break-Even

Accumulated Revenue Accumulated Expenses

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

Month

Investment Cash Flow Break-Even

Accumulated Cash Received Accumulated Cash Used

7.6 BREAK-EVEN ANALYSIS


30

The Best and Worst Case analysis illustrates what the Company’s financial statements might look like with an

increase or decrease in Revenue.

10%


Gross Revenue $1,445,599 $2,178,056 $2,761,017 $3,368,594 $4,109,871

Total Cost of Revenue $442,782 $667,130 $845,689 $1,031,788 $1,258,838

Gross Profit $1,002,818 $1,510,925 $1,915,328 $2,336,806 $2,851,033





Earning Before Interest & Taxes $39,788 $407,486 $695,842 $1,016,386 $1,424,588

EBIT Percentage 2.8% 18.7% 25.2% 30.2% 34.7%



Earnings $39,788 $407,486 $695,842 $1,016,386 $1,424,588


Net Cash Flow ($85,926) $316,939 $616,624 $917,524 $1,301,485

Cash Balance $409,074 $726,013 $1,342,637 $2,260,161 $3,561,646

Worst Case -- Revenue Decrease By:

10%


Gross Revenue $1,766,843 $2,662,068 $3,374,577 $4,117,170 $5,023,176

Total Cost of Revenue $541,178 $815,382 $1,033,620 $1,261,074 $1,538,580

Gross Profit $1,225,666 $1,846,686 $2,340,956 $2,856,096 $3,484,596



Operating Profit $285,866 $767,726 $1,147,199 $1,562,656 $2,086,380


Earning Before Interest & Taxes $262,637 $743,247 $1,121,470 $1,535,676 $2,058,151

EBIT Percentage 14.9% 27.9% 33.2% 37.3% 41.0%



Earnings $262,637 $743,247 $1,121,470 $1,535,676 $2,058,151


Net Cash Flow $136,922 $652,701 $1,042,252 $1,436,815 $1,935,047

Cash Balance $631,922 $1,284,622 $2,326,875 $3,763,689 $5,698,737

Best Case -- Revenue Increase By:

7.7 BEST & WORST CASE

7.7 BEST & WORST CASE


31

31

Year 1 Monthly Forecast illustrates the Company’s first 12 months after the Pre-Operating stage.

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Units

Attire Rental 375 394 413 433 455 477 501 526 552 579 607 638

Attire Sales 15 16 17 17 18 19 20 21 22 23 24 26

T o tal Units 390 409 430 451 473 496 521 547 574 602 632 663

Unit P rice

Attire Rental $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00 $250.00

Attire Sales $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00

R evenue

Attire Rental $93,750 $98,383 $103,245 $108,348 $113,703 $119,322 $125,219 $131,408 $137,902 $144,717 $151,869 $159,375

Attire Sales $7,500 $7,871 $8,260 $8,668 $9,096 $9,546 $10,018 $10,513 $11,032 $11,577 $12,150 $12,750

Gro ss R evenue $ 101,250 $ 106,254 $ 111,505 $ 117,016 $ 122,799 $ 128,868 $ 135,237 $ 141,920 $ 148,934 $ 156,295 $ 164,019 $ 172,125

Unit C o st

Attire Rental $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00

Attire Sales $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

D irect C o sts

Attire Rental $30,000 $31,483 $33,039 $34,671 $36,385 $38,183 $40,070 $42,050 $44,129 $46,310 $48,598 $51,000

Attire Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

D irect C o st o f R evenue $ 30,000 $ 31,483 $ 33,039 $ 34,671 $ 36,385 $ 38,183 $ 40,070 $ 42,050 $ 44,129 $ 46,310 $ 48,598 $ 51,000

Year 1 Revenue

APPENDIX A – YEAR 1 FINANCIALS


32

M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12

H eadco unt

Executives 4 4 4 4 4 4 4 4 4 4 4 4

Support Staff 0 0 0 0 0 0 0 0 0 0 0 0

T o tal H eadco unt 4 4 4 4 4 4 4 4 4 4 4 4

C o mpensatio n

Executives $9,833 $9,833 $9,833 $9,833 $9,833 $9,833 $9,833 $9,833 $9,833 $9,833 $9,833 $9,833

Support Staff $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333

P ayro ll

Executives $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333

Support Staff $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal P ayro ll $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333 $ 39,333

Year 1 Personnel


33

33


Gro ss R evenue $ 101,250 $ 106,254 $ 111,505 $ 117,016 $ 122,799 $ 128,868 $ 135,237 $ 141,920 $ 148,934 $ 156,295 $ 164,019 $ 172,125

Direct Cost o f Revenue $30,000 $31,483 $33,039 $34,671 $36,385 $38,183 $40,070 $42,050 $44,129 $46,310 $48,598 $51,000

M erchant Fees $1,013 $1,063 $1,115 $1,170 $1,228 $1,289 $1,352 $1,419 $1,489 $1,563 $1,640 $1,721

T o tal C o st o f R evenue $ 31,013 $ 32,545 $ 34,154 $ 35,842 $ 37,613 $ 39,472 $ 41,422 $ 43,470 $ 45,618 $ 47,872 $ 50,238 $ 52,721

Gro ss P ro f it $ 70,238 $ 73,709 $ 77,352 $ 81,174 $ 85,186 $ 89,396 $ 93,814 $ 98,451 $ 103,316 $ 108,422 $ 113,781 $ 119,404

Gross M argin Percentage 69.4% 69.4% 69.4% 69.4% 69.4% 69.4% 69.4% 69.4% 69.4% 69.4% 69.4% 69.4%

Operat ing Expenses

M arketing & Advertising $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

Travel & Entertainment $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

Rent $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Utilities $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Contractors $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Legal/Accounting $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Professional Fees $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Office Supplies $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Dues & Subscriptions $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Cleaning & Janitorial $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Web Hosting/Internet $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Leased Equipment $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Repair & M aintenance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Telephones $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Total Payro ll $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333 $39,333

Payro ll Taxes $5,900 $5,900 $5,900 $5,900 $5,900 $5,900 $5,900 $5,900 $5,900 $5,900 $5,900 $5,900

Payro ll Benefits $3,933 $3,933 $3,933 $3,933 $3,933 $3,933 $3,933 $3,933 $3,933 $3,933 $3,933 $3,933

T o tal Operat ing Expenses $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317 $ 78,317

Operat ing P ro f it ($ 8,079) ($ 4,608) ($ 965) $ 2,858 $ 6,869 $ 11,079 $ 15,498 $ 20,134 $ 24,999 $ 30,106 $ 35,464 $ 41,087

Operating Profit Percentage -8.0% -4.3% -0.9% 2.4% 5.6% 8.6% 11.5% 14.2% 16.8% 19.3% 21.6% 23.9%

Depreciation $1,927 $1,927 $1,927 $1,927 $1,927 $1,927 $1,927 $1,927 $1,927 $1,927 $1,927 $2,031

Earning B efo re Interest & T axes ($ 10,006) ($ 6,535) ($ 2,892) $ 931 $ 4,942 $ 9,152 $ 13,570 $ 18,207 $ 23,072 $ 28,178 $ 33,537 $ 39,056

EBIT Percentage -9.9% -6.2% -2.6% 0.8% 4.0% 7.1% 10.0% 12.8% 15.5% 18.0% 20.4% 22.7%

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Accrued $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earnings ($ 10,006) ($ 6,535) ($ 2,892) $ 931 $ 4,942 $ 9,152 $ 13,570 $ 18,207 $ 23,072 $ 28,178 $ 33,537 $ 39,056

Earnings Percentage -9.9% -6.2% -2.6% 0.8% 4.0% 7.1% 10.0% 12.8% 15.5% 18.0% 20.4% 22.7%

Year 1 Income Statement


34


Operat ing A ct ivit ies

C ash R eceived

Gross Revenue $101,250 $106,254 $111,505 $117,016 $122,799 $128,868 $135,237 $141,920 $148,934 $156,295 $164,019 $172,125

T o tal C ash R eceived $ 101,250 $ 106,254 $ 111,505 $ 117,016 $ 122,799 $ 128,868 $ 135,237 $ 141,920 $ 148,934 $ 156,295 $ 164,019 $ 172,125

C ash Used

Cost o f Revenue $31,013 $32,545 $34,154 $35,842 $37,613 $39,472 $41,422 $43,470 $45,618 $47,872 $50,238 $52,721

Payro ll/Taxes/Benefits $49,167 $49,167 $49,167 $49,167 $49,167 $49,167 $49,167 $49,167 $49,167 $49,167 $49,167 $49,167

Other Operating Expenses $29,150 $29,150 $29,150 $29,150 $29,150 $29,150 $29,150 $29,150 $29,150 $29,150 $29,150 $29,150

Additional Inventory $9,267 $9,724 $10,205 $10,709 $11,239 $11,794 $12,377 $12,989 $13,631 $14,304 $15,011 $7,694

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Accrued $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash Used $ 118,596 $ 120,586 $ 122,675 $ 124,868 $ 127,168 $ 129,583 $ 132,116 $ 134,775 $ 137,565 $ 140,493 $ 143,566 $ 138,732

N et C ash F ro m/ (Used B y) Operat ing ($ 17,346) ($ 14,332) ($ 11,170) ($ 7,852) ($ 4,369) ($ 715) $ 3,121 $ 7,145 $ 11,369 $ 15,801 $ 20,453 $ 33,393

Invest ing A ct ivit ies

C ash R eceived

Proceeds from Property/Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Proceeds from Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash R eceived $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

C ash Used

Purchase of Property/Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase of Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,000

T o tal C ash Used $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 10,000

N et C ash F ro m/ (Used B y) Invest ing $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 ($ 10,000)

F inancing A ct ivit ies

C ash R eceived

Proceeds from Investors $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Proceeds from Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash R eceived $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

C ash Used

Dividends Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Repayment of Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash Used $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

N et C ash F ro m/ (Used B y) F inancing $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

N et C ash F lo w ($ 17,346) ($ 14,332) ($ 11,170) ($ 7,852) ($ 4,369) ($ 715) $ 3,121 $ 7,145 $ 11,369 $ 15,801 $ 20,453 $ 23,393

C ash B alance $ 477,654 $ 463,322 $ 452,152 $ 444,300 $ 439,931 $ 439,216 $ 442,337 $ 449,482 $ 460,851 $ 476,652 $ 497,105 $ 520,498

Year 1 Statement of Cash Flow


35

35


A ssets

Current Assets

Cash $477,654 $463,322 $452,152 $444,300 $439,931 $439,216 $442,337 $449,482 $460,851 $476,652 $497,105 $520,498

Inventory $759,267 $768,991 $779,196 $789,905 $801,144 $812,938 $825,315 $838,304 $851,935 $866,239 $881,250 $888,944

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $1,236,921 $1,232,313 $1,231,348 $1,234,205 $1,241,075 $1,252,154 $1,267,652 $1,287,786 $1,312,785 $1,342,891 $1,378,355 $1,409,442

Long-Term Assets

Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Equipment $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $195,000

Other Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation ($1,927) ($3,854) ($5,781) ($7,708) ($9,635) ($11,563) ($13,490) ($15,417) ($17,344) ($19,271) ($21,198) ($23,229)

Total Long-Term Assets $183,073 $181,146 $179,219 $177,292 $175,365 $173,438 $171,510 $169,583 $167,656 $165,729 $163,802 $171,771

T o tal A ssets $1,419,994 $1,413,459 $1,410,567 $1,411,497 $1,416,439 $1,425,592 $1,439,162 $1,457,369 $1,480,441 $1,508,620 $1,542,157 $1,581,213

Liabilit ies

Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Current Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-Term Liabilities

Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-Term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal Liabilit ies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Shareho lders' Equity

Paid-in Capital

Owner $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

Investor $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000

Total Paid-in Capital $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000 $1,550,000

Retained Earnings

Previous Retained Earnings ($120,000) ($130,006) ($136,541) ($139,433) ($138,503) ($133,561) ($124,408) ($110,838) ($92,631) ($69,559) ($41,380) ($7,843)

Current Earnings ($10,006) ($6,535) ($2,892) $931 $4,942 $9,152 $13,570 $18,207 $23,072 $28,178 $33,537 $39,056

Total Retained Earnings ($130,006) ($136,541) ($139,433) ($138,503) ($133,561) ($124,408) ($110,838) ($92,631) ($69,559) ($41,380) ($7,843) $31,213

T o tal Shareho lders' Equity $1,419,994 $1,413,459 $1,410,567 $1,411,497 $1,416,439 $1,425,592 $1,439,162 $1,457,369 $1,480,441 $1,508,620 $1,542,157 $1,581,213

T o tal Liabilit ies & Equity $1,419,994 $1,413,459 $1,410,567 $1,411,497 $1,416,439 $1,425,592 $1,439,162 $1,457,369 $1,480,441 $1,508,620 $1,542,157 $1,581,213

Year 1 Balance Sheet

36 MUMN Corporation

Just My Luxe, LLC, a Texas [limited liability company] (the “Company”), has prepared this Business Plan (this “Plan”) solely for the purpose of providing an introduction to the Company to assist

interested parties in evaluating whether to proceed with an investment in the Company. The information contained in this Plan is not to be used for any other purpose or made available to

anyone not directly concerned with the decision regarding such transaction. This Plan and the information contained herein shall be kept confidential pursuant to the terms of the Confidentiality

Agreement entered into between the Company and the recipient. By accepting this Plan, the recipient agrees it will not copy or distribute this Plan, in whole or in part, at any time to any party

that is not subject fully to the terms of the Confidentiality Agreement without the Company’s prior written consent. Informa tion contained herein has been obtained from management of the

Company and other sources which are deemed reliable, but no representations or warranties are made by the Company or any of its affiliates as to the accuracy of such information.

This includes forward-looking statements, which are based on our current expectations and projections about future events. All statements other than statements of historical fact included in this

Plan including, without limitation, statements regarding our future, financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans

and objectives for future operations, may be deemed to be forward-looking statements. Words such as “believe,” “ expect,” “anticipate,” “may,” “assume,” “plan,” “intend,” “will,” “should,”

“estimate,” “risk” and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known

and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of

future performance. You should not place undue reliance on these forward-looking statements. In addition, any forward-looking statements are made only as of the date of this Plan and we do

not intend, and do not assume any obligation, to update forward-looking statements set forth in this Plan.

The Company expressly disclaims any and all liability for inaccuracy or incompleteness of any information contained herein, or in any other written or oral communication transmitted or made

available to interested parties. The Company reserves the right to require the return of this Plan at any time. All inquiries with respect to this Plan or requests for additional information should be

directed to:

Just My Luxe, LLC

Darla G. Wilton

[email protected]

(832) 758-0525

2321 Soaring Star Lane, Frisco, Texas 75034

Documents

BUSINESS PLAN - storage.googleapis.com€¦ · BUSINESS PLAN Published January 2015 Just My Luxe, LLC Darla G. Wilton [email protected] (832)758-0525 2321 Soaring Star Lane, Frisco,