This is a business plan if you need one ,it cleary states the different aspects of the business in question and also has a budget needed to start the business.you can use it as a template to make your
BUSINESS PLAN ALPHA LUNA BOUTIQUEMISSION; TO PROVIDE HIGH QUALITY PRODUCTS AND OFFER TOPNOTCH CUSTOMER SERVICES TO SUSTAIN AND POSSIBLY SATISFY CUSTOMER NEEDS
VISION: TO ENSURE THE BUSINESS GROWS INTO A TOP-CLASS BOUTIQUE IN NAKURU AND ITS ENVIRONMENT.
EMAIL: [email protected]
Website: www.alphaluna.com
PREPARED BY: MACHOKA OCHOI EDWIN SIGNATURE .......………….
REG NO: 20/02545
DATE: 22/11/2021
CONTACTS: 0728760546
TABLE OF CONTENT
TABLE OF CONTENT 1
CHAPTER ONE 1
EXECUTIVE SUMMARY 1
CHAPTER TWO 2
BUSINESS DESCRIPTION 2
2.0 Owners Details 2
2.1The Business Venture 2
2.2 Products and Service 3
2.3 Entry plan 4
2.4 Growth plan 4
2.5 Industry 5
CHAPTER THREE 5
BUSINESS DESCRIPTION 5
3.0 Introduction 5
3.1 Potential customers 5
3.1Competition 6
3.2 Pricing 10
3.3 Sales tactics 11
3.4 Advertising and promotion 11
3.5Distribution 12
CHAPTER FOUR 12
ORGANIZATION PLAN 12
4.0 Organisation Structure of Alpha Luna Boutique 12
4.2 Key management personnel 13
4.3 Ordinary employees 14
4.3 Support system 17
CHAPTER FIVE 18
OPERATIONAL PLAN 18
5.0 Ground Plan of Luna Boutique 18
5.1 Production Facilities 18
5.2 Production cost 19
5.3 Production process 19
5.4 Complying with operational Requirements 19
CHAPTER SIX 20
FINANCIAL PLAN 20
6.1 Pre- operational Costs 20
6.2 Working Capital 20
6.3 Pro-forma Income Statement 21
6.4 BREAK –EVEN POINT 27
6.5 PROPOSED CAPITALIZATION 28
7.0 Introduction 29
7.1 Risks 29
7.2 Solutions 30
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CHAPTER ONE EXECUTIVE SUMMARYThe business will be a boutique which is known Alpha Luna Boutique will be located in Nakuru county, Nakuru town. The business targets the whole population in the county as well as the neighboring counties. Main customers are members of the society staying within the county geographic location and adjacent habitats extending to the neighboring counties. Potential competitors are other Boutiques in the region as well as clothes line in the town. The market affects both men and women in the fashion industry as well as entrepreneurs, teenagers, and university students. This form of market will allow us to serve a big number of people.
The business management team will consist of the partners who each will be the general manager, supervisor, cashier and a team of sales personnel, front desk, cleaners and security guard. The Profitability ratios have been used to measure and evaluate the ability of the boutique to generate its income and profits. Return on assets has been used to calculate the net income over the total assets to indicate the profit or loss made in each fiscal year. Return on investment has also been used to evaluate the efficiency of the company. It is a balance statement.
With transforming fashion industry, customers are increasingly becoming aware of the impact businesses have on the environment and its people hearts why instead of focusing on the article of clothing being sold the limelight is being shed in its sustainability. Is it made of renewable resources? Were the workers given fair condition to work? Such questions have challenged boutique owners to value sustainability as much as the quality of the product so that customers can be proud of what they purchase.
.As soon as the doors of a boutique open, customers expect their favorite clothing items to be available at all times. To meet their wishes one need to have enough clothes kept safe in their inventory, failure to do that will result in tons of dissatisfied customers who will leave the store as soon as they came. While it seems like only a matter of ordering the right products, it is tricky game of inventory management. Where one has to make sure they have enough capacity and utility to store and use the clothing items they buy without anything going to waste.
CHAPTER TWO BUSINESS DESCRIPTION 2.0 Owners DetailsThe business will be partnership of four individuals, three of them graduated from the Jomo Kenyatta University of Agriculture and Technology with a bachelor's degree in
Business Management and I pursuing a Bachelor’s Degree in Finance in KCA
University, the four of us have an idea on this type of business since while in pursuit of higher learning we were able to work in different boutiques as a side hustle, in fact the side hustle is what connected us.
AddressLuna Boutique
P.O Box 2105-00802
NAKURU
TEL:+254728760546Email:[email protected]
Website: www.lurnab21.com
2.1The Business VentureThe business will be located in Nakuru town. Since it is easy for travellers going to western and rift valley region to access as they pass and also the area has populated residential estates nearby with some light industries also located in the surrounding.
Business justificationBecause many Kenyans who sell clothes in the Western and Rift valley region pass through Nakuru all the way to Nairobi to source for clothes to sell, it will be of greater advantage to open a boutique nearer so that if we buy clothes in bulk from Nairobi and sell to them at wholesale price and retail price we will have saved them in terms of cost and time.
Form of ownershipThe business is partnership form of business. This partnership consists of three gentlemen and one lady. Being a partnership form of business the financial to start up the business is equally contributed by each of the four partners. The generated start-up capital is from everyone’s personal savings.
2.2 Products and ServiceThe business will stock a wide range of the products such as: ladies and gents fashion clothes, belts, wristwatches, caps, socks and stockings among others. Informative materials such as fashion banners and magazines will also be available to enhance dissemination of information to my clients. Luna boutique will stock a variety of beauty assortments ranging from clothing, earrings, necklaces, manicure and pedicure products which it considers to be fast moving amongst the youthful population. Besides these products, the boutique will offer free tailoring services to clients who will require resizing their clothing outfits, advice clients of clothing that suits their occasions such weddings, birthday parties and other social events. The benefits accruing from this boutique to the owner will be revenue that will help in meeting living expenses; it will also create employment both direct and indirectly to the surrounding since businesses are interdependent. To clients, it will save them time and money from travelling to the city centre of Nairobi to get such products stocked by Luna Boutique.
2.3 Entry planLuna boutique will seek to achieve growth with existing product in their current market. This will be achieved by selling more products to established customers. In order to effectively accomplish market entry, Luna boutique will reduce price of its products, increase promotion and have adequate stocks
2.4 Growth planIn terms of growth Luna Boutique will try its best to bring in new products and this will help it to extend its product range. In order to achieve this, the enterprise will carry out market research in order to determine the products most wanted in the market. For an effective diversity in the market, the business will try and bring in new products apart from clothing, Luna Boutique will add manicure and pedicure products in line of its stocks to continue being competitive in the market. Short term goals (Achievable within one year)
Set up a remote sales networking system.
Increase new customer reviews with a growth of 10 customers weekly.
Increase sales cold calls by 35 new clients every month.
Expand into new geographic market
Expand personnel and facilities
Broaden product and service offering
One long term goal (Achievable beyond five years)
Become a leading supplier of clothes in Western Region
Kenya has great potential to serve the global, domestic and regional markets from its pool of fashion designers and small tailors. The Textile and Clothing (T&C) sector has also been identified in Kenya’s Vision 2030 as a pathway to industrialization as it possesses incredible economic potential. While fast fashion has become a major trend shaping the global consumer landscape, it may not be the right route for Kenya to pursue. For starters, the distance between the U.S (Kenya’s main destination for exports) isn’t favorable for the turnover time required for fast fashions while on the other hand, the long-time taken at the Mombasa Port is also another factor that may slow down the morale of those intending to import fashions.
CHAPTER THREE BUSINESS DESCRIPTION 3.0 Introduction
This chapter covers potential customers, competition, pricing and distribution and as well as SWOT analysis of the business.
3.1 Potential customersTraders from the neighboring counties of Western and Nyanza will be our prime customers because Nakuru is strategically located as a convergent point. This type of concept allows for collaboration in the country for all types of businesses. The market affects both men and women in the fashion industry as well as entrepreneurs, children, teenagers, and university students. This form of market will allow us to serve a big number of people.
3.1CompetitionOur main competitors will include; Lady Beauty fashion, Jade exhibition and Pearl collections and Luna Boutique.
NAME OF THE BUSINESS | STRENGTH S | WEAKNES S | OPPORTUNI Y | THREAT S |
Lady Beauty Fashion
| They are longest in the market and therefore have a wide base of customers who have developed loyalty towards its products. | Lady Beauty Fashion uses old selling technique of cash and carry instead of adopting point of sale machine to ensure that all products are tilled before | Recent closure of its immediate competitor may give Lady Beauty Fashion Boutique greater height of gaining more customers | Recent opening of another boutique in the same building that houses Lady Beauty Fashion collection centre will |
| Its accessibility is not hampered during rainy season since it’s surrounded by tarmacked roads. | they leave the premises .Whenever a business uses outdated technologies; these slows down productivity and contribute to the business losing money hence slowing growth. | | rattle its customer base since competitio n will be stiff.
|
PEARL COLLECTIO N | They have a five capacity parking area for their customers. Its owner once worked in Dubai as sales person and therefore has great | High employee turnover rate at Pearl collection fashion centre forces it to concentrate more on hiring than focusing much on | It’s located strategically between two flats that are being constructed to be occupied by students of Egerton university town campus who are majority of | The business closes twice that’s Friday since the owner is a Muslim and Sunday to give his staff chance of |
| experience in sales. They have a direct link of importing their products from Dubai at a cheaper price | sales. These also lead to sales loss as the employees leave without notice hence interfering with business operation. Location of garbage behind it also prevents some customers from accessing its premise due to the odour smell especially during midday | customers are boutiques in this area. | that frequently served in most
| attending church services. This creates uncertainty amongst its customers about exact days of operation while at the same time gradually making them to lose some of the customers |
Jade exhibition | Having chosen the name of world known cloth line, most youths especially ladies flock there for | The business room is small hence pathways for mobility are much squished. This | They recently got connection with ladies attending a beauty contest hence realizing improved sales. These ladies | It faces risk of closure by the Kenya Revenue Authority after it was declared as | |
| shopping since the associate it with high quality. They have a strong marketing team to realize their targets. | discomforts customers during shopping. The squished Internal display also increases vulnerability of leverage. | also connect their friends to the Jade exhibition since they associate it with quality. | non-tax compliant. |
3.2 Pricing
Price refers not just to the monetary value of a product, but also to the amount of time or effort a client is prepared to put out to obtain it. This will be a significant component in determining the brand's revenue because it will affect profit, supply, and demand, as well as how many marketers should spend on a promotion or marketing campaign. This is why this letter ‘P' is one of the most significant. A product – and its brand – may fail if it is priced too high or too low. Luna Boutique will first adopt market penetration strategies in order to gain a good percentage of the market customer before supplementing this pricing method by others such as price skimming and bundle pricing. Pricing for market penetration is essentially the opposite of price skimming. Instead of starting high and slowly lowering prices, you take over a market by undercutting your competitors. Once you develop a reliable customer base, you raise prices. Many factors go into deciding on this strategy, like your business’s ability to potentially take losses up front to establish a strong footing in a market. It’s also crucial to develop a loyal customer base, which can require other marketing and branding strategy.
3.3 Sales tacticsGrowing commercial competitiveness, as well as cutting-edge marketing in the current market, has generated opportunities for manufacturers, who have begun to employ emotions as a sales technique. It has become vital for manufacturers of goods and services to tap into all prospective markets. Changes in marketing approaches and strategies have had a significant impact on the marketing environment. Border Stop combines direct selling strategies and social media marketing to address the challenge of customer acquisition and retention. One of the most popular and effective sorts of marketing methods is social media marketing.
3.4 Advertising and promotionAdvertising
Advertising is paramount in informing people about existence of new Boutique in the area, its services, and location and why it should be the place to be. This will certainly create curiosity among clients who will in turn be looking to satisfy their curiosity at our boutique.
Our Boutique will be carrying out its advertisement through:
Social Media ( Instagram, Facebook, Twitter e.t.c)
Radio adverts
Posters ( colored)
Promotion
The boutique plans to use clients’ referral incentive program. The customer referral incentive program is away to encourage current customers to refer new clients to our boutique. Discounts are some of the incentives to be used.
Branded promotion giftsLuna Boutique intends to put its cards on every counter and shelves, This is the gift to give the customers that they may use, which keep the boutique in an open market.
3.5DistributionThe boutique will mainly concentrate on selling its stocks in a store therefore distribution channels may not be considered in the short run.
CHAPTER FOUR ORGANIZATION PLAN 4.0 Organisation Structure of Alpha Luna Boutique
This is the hierarchy of arrangement and flow of power and authority from the top management to lowest at the boutique. The general managers will be the four of us who are the partners.
4.2 Key management personnelGeneral Manager
(a) Qualifications
The partner experience varies with the minimum has six years’ experience
All are grandaunts with a Bachelor Degree in Business.
Familiar with Fashion industry.
(b)Duties and Responsibilities
Planning periodic operations of the boutique.
Staffing roles of hiring and firing
Organizing and directing all activities of the boutique.
Coordinating and executing plans of the boutique
Qualifications
Degree/ Diploma Certificate
Three years’ experience
Good communication skills
Leadership qualities
Duties and responsibilities
Oversees the job to be done at boutique.
Training new hires
Ensure that the business runs smoothly without any issues.
Reporting to HR and senior management
Helping resolve employee issue
General managing of the boutique when the owners are not around.
4.3 Ordinary employeesSales personnel
(a) Qualifications
Diploma /certificate in sales
Good communication skills
Experience in sales and marketing
(b)Duties and Responsibility
Help customers to find items in the Boutique
Provide customers with information about items
Ring up purchases
Evaluate complaints to management
Keep track of inventory
(a) Qualifications
KCSE certificate
Hardworking
(b)Duties and responsibility
To ensure that Luna boutique is 24 hours tidy.
Qualifications
KCSE certificate
Good conduct
Duties and responsibility
Safeguarding the premises
Carrying out security checks on visitors
Monitoring surveillance cameras
Responding to alarms within the premises
Assisting the maintenance staff in securing an area during a maintenance emergency.
Recruitment will be done any time vacancy has surfaced. The Selection will be conducted by a panel of the four partners who will engage the application on their knowledge on beauty products to ensure the best get a chance among the applicants
Training
The Boutique will conduct training frequently so that employees will sharpen their skills and knowledge. Training will be conducted internally by the supervisor while promotion will be based on performance and long-term stay.
PromotionIt will be based on:
Hard work
Punctuality
Performance
Experience
Commitment
Appraisal will be done on semi-annually basis to ensure that all employees are update to rapidly changing trends in the beauty industry
REMUNERATION AND INCENTIVES RemunerationRemuneration table
Position | Number | Salary | Total |
Manager | 4 | 40,000 | 160,000 |
Sales personnel | 5 | 20,000 | 100,000 |
Security | 2 | 10,000 | 20,000 |
Cleaners | 3 | 7,000 | 21,000 |
This is the reward in terms of monetary that the employer gives his or her employees after a certain period of time based on job done.
The partners will increase employees increase the employees rewards based on boutiques profit and growth.
INCENTIVES Luncheons | Every end month |
4.3 Support system
Banking services
The partners will also offer banking support to ensure that all employees are paid through the bank for them to access other benefits of banking. Luna Boutique owners prefers Cooperative bank because of its wide branch coverage within and outside the city.
LicenceLuna Boutique intends to acquire a working license from Nakuru county government.
We will also acquire a legal permit for the business
Insurance servicesThis will be offered by Liberty life assurance company due to their their affordable and quality services offered to members.
CHAPTER FIVE OPERATIONAL PLAN
5.0 Ground Plan of Luna Boutique
5.1 Production Facilities
The boutique will lay down operational and facilities and capacities to be used by Luna boutique in order to achieve its goals and objectives. The boutique intends to maximum utilize the available facilities in a cost-effective manner to achieve best desired results.
5.2 Production cost TYPE OF COST | MONTHLY COST |
Computer | 40000 |
Transportation | 15000 |
Workers/labour | 20000 |
Overhead expenses | 14000 |
Cost per unit | 2500 |
The boutique will be involved in importing and storage of clothes and related assortment from Turkey, China and Hong Kong but there shall be no production of new items
5.4 Complying with operational Requirements
Operation expense and monthly bills
TYPE OF REQUIREMENT | COST |
Licenses | 8000 |
Taxes | 30000 |
Other approval | 5000 |
TOTAL COST | 43000 |
Allocations | Amount (Ksh) |
Rent | 25,000 |
Stock | 200,000 |
Computer | 40,000 |
Licence | 8,000 |
Transport | 30,000 |
Fixtures and fittings | 50,000 |
Advertising | 5,000 |
Internet connection | 2,000 |
Wages | 30,000 |
Emergency | 10,000 |
Grand total | 400,000 |
CHAPTER SIX FINANCIAL PLAN
6.0 Introduction
The chapter looks into on the financial plan of Luna boutique
6.1 Pre- operational Costs
| AMOUNT (KSH) |
Transport | 30000 |
Market research | 5000 |
Advertising | 5000 |
Rent | 25000 |
Internet connections | 2000 |
Installations | 15000 |
TOTAL COST | 82000 |
6.2 Working Capital
ITEM | AMOUNT |
Stock of materials | 50000 |
Work in progress | 50000 |
Stock of finished goods | 150000 |
Debtors | 12000 |
Cash | 25000 |
6.3 Pro-forma Income Statement
ITEM | AMOUNT (KSH) |
Stocks Cost of goods sold Gross profit Wages Rent Electricity Advertising Stationery Transport | 350000 80000 270000 43,000 15000 1200 2000 800 4000
|
Net profit before tax | 200,000 |
Tax | 40,000 |
NET PROFIT AFTER TAX | 160,000 |
Contribution margin
Sales for the YEARS
700,000
800,000
1,000,000
54,000 =180
3,000
Break-even point for 2022
700,000 =412
1,700
Break-even point for 2023800,000 =500
1,600
Net profit before tax=Gross profit-Total expenses
=900,000-600,000
=300,000
Net profit after tax (16%)=300,00(0.16)
=252,000
Net profit = profit before tax-profit after tax300,000-252,000
=78,000
Pro-forma Income statement for the third year of operation
Sales | 900,000 |
Less cost of sales |
|
Stock | (250,000) |
Gross profit | 650,000 |
Less expenses |
|
Rent | 35,000 |
Salaries | 150,000 |
Advertisement | 40,000 |
License | 10,000 |
Miscellaneous | 5,000 |
Total expense | 200,000 200,000 450,000 |
Profit before tax (PBT) Profit after tax
=Gross profit-Total expenses = 0.16(200,000)
=650,000-450,000 =168,000
=200,000
BALANCE SHEET ASSETSThese refers to resources that belongs to the boutique
Pro-forma Balance sheet for the first year
Fixed asset | Kshs | Long term liabilities | Kshs |
Furniture Machinery Tools and equipment’s Total | 40,000 100,000 50,000 190,000 | Capital Add net profit Less drawing Total | 500,000 700,000 (200,000) 1,000,000 |
Current assets |
| Short term liabilities |
|
Stock Cash at hand Cash at bank | 120,000 60,000 120,000 | Creditor | 100,000 |
Total | 900,000 | Total | 900,000 |
Pro-forma Balance sheet for the second year
Fixed asset | Kshs | Long term liabilities | Kshs |
Furniture Machinery Tools and equipment’s Total | 20,000 50,000 25,000 95,000 | Capital Add net profit Less drawing Total | 700,000 500,000
1,200,000 |
Current assets |
| Short term liabilities |
|
Stock Cash at hand Cash at bank | 200,000 70,000 3,500,000 | Creditor | 100,000 |
Total | 1,100,000 | Total | 1,100,000 |
Pro-forma Balance sheet for the third year
Fixed asset | | Kshs | Long term liabilities | Kshs |
Furniture Machinery Tools equipment’s Total | and | 150,000 90,000 50,000 290,000 | Capital Add net profit Less drawing Total | 2,000,000 500,000
2,500,000 |
Current assets | |
| Short term liabilities |
|
Stock Cash at hand Cash at bank | | 300,000 140,000 1,000,000 2,410,000 | Creditor | 200,000 |
Total | | 2,700,000 | Total | 2,700,000 |
CASH INFLOW 1st YEAR
| JA N | FE B | Ma r | Ap ril | MA Y | JU N | JUL Y | AU G | SEP | OC T | NO V | DE C |
Bal b/f | 150 000 | 178 000 | 200 000 | 500 000 | 120 000 0 | 175 000 0 | 135 500 0 | 127 000 0 | 210 500 0 | 195 000 0 | 189 000 0 | 195 000 0 |
Cash sale | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 | 150 000 |
Debt s | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 | 200 000 |
Total | 500 000 | 528 000 | 550 000 | 850 000 | 155 000 0 | 210 000 0 | 170 500 0 | 162 000 0 | 245 500 0 | 230 000 0 | 224 000 0 | 230 000 0 |
CASH OUTFLOW | ||||||||||||
Rent | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 | 150 00 |
Salar y | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 |
Wate r | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 | 150 0 |
Loan |
|
|
|
|
|
|
|
|
|
|
|
|
Repa ymen t | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 | 650 0 |
Stock | 150 000 | 150 000 | 160 000 | 185 000 | 120 000 | 105 000 | 185 000 | 140 000 | 160 000 | 120 000 | 150 000 | 200 000 |
Mis | 200 0 | 150 0 | 300 0 | 450 0 | 320 0 | 250 0 | 200 0 | 350 0 | 400 0 | 350 0 | 400 0 | 400 0 |
Adve rt | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 | 100 00 |
Credi tor | 250 00 | 200 00 | 210 00 | 210 00 | 200 00 | 110 00 | 150 00 | 220 00 | 150 0 | 100 00 | 115 00 | 150 00 |
Total | 220 000 | 214 500 | 227 000 | 253 500 | 186 200 | 161 500 | 245 000 | 208 500 | 208 500 | 176 500 | 208 500 | 262 000 |
Bal c/f | 280 000 | 313 500 | 323 000 | 596 500 | 136 380 0 | 193 850 0 | 146 000 0 | 141 150 0 | 224 650 0 | 212 350 0 | 203 150 0 | 203 800 0 |
6.4 BREAK –EVEN POINT
This is the point where the boutique does not make any profits or loses but able to meet the production cost
Production cost=variable cost=fixed cost
| 2022 | 2023 | 2024 |
Variable cost | Kshs |
|
|
Raw materials | 1,050,000 | 99,000 | 170,000 |
Labour | 300,000 | 350,000 | 450,000 |
Transport | 55,000 | 40,000 | 50,000 |
TOTAL V.C | 1,405,000 | 489,000 | 670,000 |
Fixed cost
| 2022 | 2023 | 2024 |
Fixed cost | Kshs |
|
|
Salaries | 800,000 | 750,000 | 900,000 |
Rent | 150,000 | 150,000 | 150,000 |
Water and electricity | 30,000 | 25,000 | 20,000 |
Advertisement | 60,000 | 55,000 | 50,000 |
TOTAL F.C | 1,040,000 | 980,000 | 1,120,000 |
6.5 PROPOSED CAPITALIZATION
This defines how the partners and bank will generate the money
ITEMS | KSHS |
Partners | 400000 |
Total desired financing | 40000 |
Profitability Ratios
These are financial data used by analysts and investors to measure and evaluate the ability of a business to generate income or profits.
• Return on Assets (ROA) =Net income/total assets
Net income = Ksh400000 400000 /419400 = 0.95
Total assets =Ksh419400
CHAPTER SEVEN 7.0 IntroductionThis chapter talks on the risk the partners are likely to face in this business and remedies to overcome these problems.
7.1 RisksClients ordering half of the stock and buy one item
Some clients tend to order a number of goods and end purchasing less of what they ordered or even not purchasing at all. It is advisable to discourage clients from trying on everything in the boutique. If a client wants even some pair of shoes only just two color variations if it’s a must.
Expectations of consumerismConsumers creates certain expectations that boutique stores often struggle to meet People are so used to going online and finding thousands of products or walking into a big retailer store that has new products every week, and they have those same expectations when walking into a boutique retail store, which leads to disappointment. Changes to High street spending
It will be a challenge for our business with the rise of online shopping, the way people spend money on the high street is changing. Instead of spending in retail business people are increasingly moving towards other business. Capturing the attention of customers in this area is very difficult.
Unqualified personnelIt may seem as nothing, but it is vital to ensure that the employees we hire have the required skills and knowledge to accomplish their jobs well and meet the expected goals. Clients do not expect a beauty center to employ uncertified stylists, technicians, and therapists. Employees that are inexperienced, on the other hand, may offer a bad dye job. However, as a result of this, your clients may experience burns, nerve damage, skin infections, and other issues.
7.2 SolutionsIt is advisable for the clients to be told to pay some commitment when they have ordered goods. This reduces the chances of the clients’ failure to purchase as per order and it also enables the business to identify serious and faithful customers.
To combat the expectations of consumerism it is best that we build a cohesive brand. As partners we should focus on ideas about quality and longevity instead of cheap mass produced goods and builds a core set of repeat customers instead of relaying on one time impulse purchase.
As boutique retailers we will focus heavily on direct marketing that encourages people to make a specific trip to come to their store.
.