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Bonne Chère BridalFinal Project: Business Plan

Nina Stockman (with Alex Alan)Entrepreneurship • Columbia College Chicago • May 5, 2013

Nina Stockman • [email protected] • Columbia College Chicago

mailto:[email protected]

mailto:[email protected]

Bonne Chère BridalFinal Project: Business Plan

GENERAL COMPANY AND PRODUCT DESCRIPTION • CUSTOMERS • MARKET RESEARCH AND COMPETITION • MARKETING • PRICING • SALES AND DISTRIBUTION • OPERATIONS • FINANCIALS • PROJECT TIMELINE

This business plan outlines a joint venture between myself and my good friend,

Alex Alan. The date of implementation is yet to be determined, as we do not intend to

begin this business for several years. We expect to proceed with this idea after graduating

from Columbia College, as well as continuing into business and law school. Furthermore,

we would both prefer to earn experience within our respective industries before

attempting to start our own business. As such, we do not plan to begin our

entrepreneurial venture until 2024 at the earliest. Many aspects of this business plan are

subject to change between conception and implementation. For the time being, it is to

act as a reference and guide during these early stages.

General Company and Product Description Bonne Chère Bridal is a joint wedding consultation firm and bridal boutique,

positioned within both the Women’s Retail and Other Personal Services sectors.

Unlike the average wedding business that focuses solely on one aspect of the

industry, Bonne Chère Bridal separates itself from the competition by offering multiple

services. Not only do we offer wedding planning and consultation, but we also are a

source for bridal fashion, wedding stationary, legal counseling, pre-nuptial ceremonies,

and an ordained minister on staff available for ceremonial vows.

Nina Stockman • Bonne Chère Bridal 1

MISSION STATEMENT

“Bonne Chère Bridal offers a unique and intimate bridal

experience where a bride’s every wish can be granted in

one location.”

The boutique will be located in Elk Grove, California. This location provides

many opportunities, the primary ones being the high population and the predominantly

good weather. A large population maintains higher marriage rates, creating a larger base

of potential customers. The 2007-2011 estimations from the American Community

Survey indicate that the average marriage rate in Elk Grove is 30% of the population,

which is higher than the national average of 27% (“Elk Grove”). California, being known

as the sunshine state, has a year-round wedding season, as opposed to states within the

Northeast, Midwest, or Central United States, where the wedding season is reduced to

five or six months and can be consistently compromised by inclement weather.

Finally, being involved with the wedding industry itself is an opportunity, as it is

an industry with continuous upward trends. According to the statistical study conducted

by Brides Magazine in 2011, the wedding industry’s annual economic size is estimated to

be worth $40 billion (Jaeger). Furthermore, revenue for 2012 was expected to be equal

to or greater than the figures in 2011 (Hurley), showing consistent growth despite

economic challenges. The wedding industry is one that will never disappear entirely; no

matter what is happening with the economy, people will always be getting married.

While their ceremonies may not always be as extravagant during tough times as they are

during times of prosperity, marriage is one of the few things that will remain a consistent

element in our culture.

As mentioned, products offered include bridal fashions and invitations, whereas

services range from wedding planning, consultation, pre-nuptials, legal counseling, and


the ability to higher an ordained minister to perform the wedding ceremony itself. Our

price points will be competitive with that of surrounding bridal businesses within Elk

Grove.

TARGET MARKET

Considering that we offer multiple services, we also target a wide range of female

demographics. This includes young women, young girls, and older women; specifically,

brides, bridesmaids, flower girls, and mother of the bride and groom.

Customers The majority of our customers will be female within the age range of 21 to 26

years of age. According to the United States 2010 Census, the racial composition of our

clientele will be Caucasian, Hispanic, and African American. Our price points will

primarily attract those within the middle class to upper-middle class.

Taking this into consideration, our primary methods of communication with our

customer base will be through social media marketing and traditional sign advertising.

We will also utilize networking with other local wedding businesses to promote ourselves

within the community.

Market Research and Competition According to the Elk Grove Demographics Survey, 13.01% of the female

population has never been married. Granted, this likely includes those who are not of

marital age yet, but it still provides a relatively generous target market for our

operations.

The number of bridal businesses within the state of California is relatively high,

as it is an extremely popular place to conduct a wedding, but Elk Grove lacks the high


volume of bridal businesses seen in other southern California cities such as Burbank and

Santa Barbara. Of the 1,508 businesses located within Elk Grove, none are related to

event planning or bridal, creating a market demand (“Elk Grove”). However, there is a

handful of wedding business located between Elk Grove and Sacramento; while not

within the Elk Grove city limits, they certainly cater to the city’s population.

Business Name # of Employees Year Established Annual Sales Volume

Love Jones Events 5 2009 $120,000

Empyyre Entertainment &

Events

3 2012 $120,000

Mimi’s Bridal & Prom

2 2003 $120,000

Lilli’s Bridal Shop 2 1976 $160,000

Evangeline Bridal Boutique

2 2006 $110,000

Bridal Express Wedding Packages

1 1997 $46,000

Love Jones Events: Offers both chocolate catering and event planning. Targets an African American demographic. Website is unprofessional (i.e. grammatical errors, poor color scheme, automatic music). Facebook page has 65 Likes, is not maintained on a frequent basis. Won a “Best of Sacramento 2011” award.

Empyyre Entertainment & Events: Has no online presence other than an incomplete Facebook page with 0 Likes.

Mimi’s Bridal & Prom: Unprofessional-looking webpage; no navigation; does not own their domain name. Carries a “wide range” of designers including Mary’s Bridal, wide price ranges, and plus sizes. Offers bridal, bridesmaids, prom, and chair covers. No Facebook page.

Lilli’s Bridal Shop: Decent website; does not own their domain name. Offers bridal, bridesmaids, quinceanera, homecoming, prom, and alterations. Ability to purchase gowns online; convenient, but makes it seem “cheap.” Carries the name Mary’s Bridal line that Mimi’s Bridal & Prom carries. Link to Facebook Page does not work due


to HTML error. Facebook Page only has 4 Likes and is not updated frequently. Storefront appears cheap and immature.

Source: Lilli’s Bridal Facebook Page

Evangeline Bridal Boutique: No online presence. Difficult to find

information on due to business name inconsistencies.

Bridal Express Wedding Packages: Has a website but the server is

inaccessible. Has a 1-star rating on Yelp. Offers makeup, flowers, and photography.

Presumably have very poor service and customer relations as described by Yelp reviews.

Taking this information into consideration, we feel that our main source of

competition will be Lilli’s Bridal Shop, if only because it has an established reputation

within the larger Sacramento community.

However, Elk Grove still lacks a bridal boutique within its city borders, making it

a prime location for our type of business. Other than providing consulting services to the

local area, we will also be introducing several bridal lines that are not currently featured

there, such as Casablanca and Ellis Bridal.


Marketing Our primary marketing will be via signage and advertising done within the local

community, as they will be our main clients. We will use flyers posted within other

businesses, newspaper ads, and potentially billboards in the far future of the business.

Radio commercials are certainly an option as well, but a television commercial is not,

due to the high expense and the fact that it would not be particularly effective for our

type of business. However, if down the line we are presented with the chance to do a

television commercial at a lower cost, it would be worth exploring if it was within our

budget.

Our secondary marketing will be done using optimized, professional, and

branded social media. The online wedding community in extremely active due to the

simple fact that soon-to-be-brides are constantly looking for tips and inspiration for their

upcoming weddings. The internet has become their main source for findings these

things, and social networks are especially popular for this purpose. Therefore, it will be

necessary for us to have a presence on all of the major social networks, specifically

Facebook, Pinterest, and Instagram, as those are the ones that tailor towards the bridal

business. We will also have our own website for our business, which will additionally

feature a blog detailing an inside-look to our boutique, giving customers insight and

fostering a more personal connection between them and ourselves.

WEBSITE

Our website will be easily accessible and navigable for our customers. It will

provide information on our business, such as our history, biographies for the owners and

main sales team (if applicable), and our blog. Online purchasing will not be available, but

a gallery will be available that will contain photos of all merchandise for sale in the

boutique.


FACEBOOK

Our Facebook page will act as a way for us to connect directly with our customers.

We will use it to announce promotions, special events, sales, and incoming merchandise.

Our Page will also be used to feature our clients’ weddings, with their permission.

PINTEREST

Our Pinterest profile will contain inspiration boards based on the merchandise

we carry within the store and vendors we work with. There will also be boards devoted

towards our own wedding inspiration to show examples of what we are interested in

designing for weddings we are hired to plan. Additionally, we will run Pinterest-based

contests, i.e. “repin and enter to win.”

Most importantly, we will focus on promoting ourselves, not only our business.

We aim to attach ourselves to our brand and become both lifestyle role models and

industry experts. With that sort of reputation, it is likely that we could be interviewed on

talk shows and within industry magazines and websites, which will act as further

promotion for Bonne Chère Bridal. More than anything, we want our name and brand to

be recognizable within the bridal industry.

Pricing Our pricing is based on industry standards. The majority of it is mid-range and

determined by the incomes of the population in which we are located. Our prices are

competitive with surrounding bridal businesses, and moreover, we offer discounts for

clients who use more than one of our services. (For example, those who hire us for

wedding consulting will receive discounts on any bridal fashion purchases.)


This approach makes it more likely for customers to use us as their “one-stop

shop” as opposed to working with several different businesses, thus preventing our

competition and/or other surrounding companies from stealing business from us.

CONSULTING SERVICES

Day-Of Package $900 - $1,200

Collaboration Package $2,900 - $3,300

Full-Service Package $3,000 - $5,000

Day-Of Package: The couple hires us for the day of their wedding only. This

service does not include design styling or planning; we are hired specifically to

coordinate the activities of their wedding day, as well as any rehearsal activities on the

day before or follow-up the next day if they choose. We ensure that caterers and other

vendors the couple has selected are operating efficiently and adhering to the schedule,

and we handle the act of delivering their payments from the couple. This design package

includes extended discounts towards stationary (10-15% off).

Collaboration Package: The couple hires us to work together in planning their

wedding. We offer design advice and provide references for vendors at discounted prices.

The focus is on working with the couple to design their wedding, combining both our

input and theirs in order to create something that truly reflects who they are. The couple

still retains control over their selection of vendors and whatever design elements they

choose to handle on their own, such as DIY projects. Finally, as part of the package, we

also coordinate their wedding to make sure that everything goes as planned. This design

package includes extended discounts towards bridal fashion (5-10% off) and stationary

(10-15% off).


Full-Service Package: The couple hires us to plan and execute their wedding

for them with little effort required on their behalf, other than agreeing to and paying for

any vendors or design elements we select. This design package includes both the

ceremony and reception, day-of coordination services, and extended discounts towards

bridal fashion (15% off) and stationary (20% off).

BRIDAL GOWNS

Maggie Sottero $900 - $1,500

Casablanca $1,000 - $2,000

Ellis Bridal $1,500 - $3,000

Designer Showcase $500 - $1,000

Designer Showcase: Gowns that have been discontinued or lines we no longer

carry will be offered directly off the rack as-is at steep discounts.

Brides who pay in full at the time of purchase will receive a guaranteed 10%

discount on their dress. If the bride is also receiving a discount from hiring our

consulting services, this discount will be reduced to 5%.

BRIDESMAIDS DRESSES

Andrew Adela $65 - $200

Bill Levkoff $100 - $300

Brides who purchase their wedding gown from us will receive a 10% discount on

bridesmaids dresses for their bridal parties.

FLOWER GIRLS

Andrew Adela: Jessica Lynn $70 - $200



flower girl dresses.

MOTHERS OF THE BRIDE & GROOM

Andrew Adela: Ambiance $150 - $300

VM Collection $400 - $700

Mothers whose brides have purchased their wedding gown from us will receive a

10% discount on their dresses.

ACCESSORIES & VEILS

Richard Designs $100 - $300

Symphony Bridal $50 - $200

Meg Jewelry $20 - $300


veils and a 15% discount on jewelry.

INVITATIONS & STATIONARY

Invitations and miscellaneous wedding stationary such as place cards, programs,

and thank-you notes will be offered both as DIY kits as well as hired design services.

DIY Kits $30 - $70

Design Services $55 - $200

DIY Kits: Necessary supplies to prepare the selected stationary is included, but

the customer handles all of the preparation and assembly on their own. Priced based on

complexity and quality of supplies, as well as quantity.


Design Services: The customer hires us to design their wedding stationary

based either on their requests or personal ideas, or our own design preferences. Services

range from simply assembling a personalized kit for them to complete on their own, or

for a higher cost, we will complete the stationary for them. Prices are based on

complexity, quality, and quantity.

Couples who hire our consulting services will receive discounts on stationary

ranging from 10-20% off. If the bride has only purchased a gown from us, the discount

towards stationary purchases will be 5-10%.

Sales and Distribution Our sales will occur within our boutique.

THE BOUTIQUE

The boutique will be divided into three sections. The first section will be the

bridal shop; the second section will be the consulting office. Lastly, the third section will

be our lobby which will double as a waiting parlor.

The bridal shop will contain the dress gallery, fitting rooms, viewing runway, and

the veils/accessories showcase. Seating will be available for parties. The area will be

further divided between bridal and bridesmaids/flower girls/moms in order to avoid

congestion in either area.

The wedding consulting office will offer comfortable seating, example books of

prior work or potential designs, reference books for caterers and other vendors, and the

invitation and stationary showcase. This office will also be the site for any legal processes

to occur, such as pre-nuptials.


SALES FORCE

At the start of this business, we will not require a large sales force. Ideally, we

would like to restrict it to only ourselves until we attract enough business that we require

additional help in the form of Bridal Consultants. When that time comes, we will utilize

the following hiring and compensation practices. This plan is for the position of Bridal

Consultant and refers to both full- and part-time employees.

COMPENSATION PHILOSOPHY

Belle Chère Bridal believes firmly in a payment system that fairly rewards our team members for their work. We have designed our compensation plan to be reflect

this, as well as our commitment to providing flexible work positions for those who require less-structured schedules while still receiving some form of benefits.

General Principles

1. Compensation is based in the form of hourly wages, rather than annual

salaries, in order to create a more flexible pay system.2. There are no exceptions in terms of the application of our compensation

plans; it is structured specifically around an employee’s contributions to the workplace (i.e. hours worked) to avoid any sort of favoritism or other form of discrimination.

3. Promotions and raises are based on individual sales performance or reflect an increase in job responsibilities or individual skill(s).

Mission Statement

Belle Chère Bridal compensation plans are designed with realistic expectations of its employees and the economy in which we operate. We strive to offer positions and wages that may adapt with employees’ lives without negatively

impacting business operations. While compensation is naturally influenced by industry standards, an employee’s wage is determined solely by her or his

performance and capability.


BASE PAY

• Both full-time and part-time consultants begin with starting wages of $9/hr. Promotions for full-time employees are in $1.25 increments, while part-time

employees’ wages increase by $0.75 increments.

• Overtime begins at 40 hours for full-time employees, and 20 hours for part-time. The overtime wage rate is 1.5 times the employee’s hourly wage.

BENEFITS

• All consultants receive paid vacation time and paid sick days, although the total number of both differs between full- and part-time statuses.

• This paid time-off is generously allotted in recognition of familial obligations that are required of many of our employees.

INCENTIVES

• All employees will receive end-of-season bonuses in May.

• Full-time consultants are eligible to receive up to 5% commission on gown transactions, as determined by the Owner and Manager on an individual basis.

COMPENSATION & BENEFITS CHART: BRIDAL CONSULTANTLast updated May 4, 2013.

EMPLOYEE STATUS Full-Time Part-Time

STARTING HOURLY WAGE $9.00 $9.00

PAY RAISE INCREMENTS $1.25 $0.75

MINIMUM HOURS / WEEK 30 hours 15 hours

OVERTIME THRESHOLD 40 hours 20 hours

OVERTIME WAGE RATE Hourly Wage x 1.5 Hourly Wage x 1.5

PAID VACATION TIME Yes (5 days, assuming basic 8 hour shifts)

Yes (3 days, assuming basic 6 hour shifts)

PAID SICK DAYS Yes (4 days, assuming basic 8 hour shifts)

Yes (2 days, assuming basic 6 hour shifts)

BONUSES Yes (given in May) Yes (given in May)

COMMISSION Yes (up to 5% on gown sales)

No


APPLICANT SELECTION PROCESS

Appropriate applicants for the Bridal Consultant position (both full- and part-time) will be determined using an interview process that will potentially extend into a

working interview.

During the initial interview, the Candidate will sit down with the Owner, who

will review his or her resumé and prior experience (if any) in the industry. The Owner will present situations in which the Candidate must describe what he or she would do,

or how he or she would respond. Potential examples include:

• A bride who has a wedding in three months demands to order a dress from

a manufacturer who will not be able to ship the dress in time for her wear date. How do you handle her request in a way that will satisfy both parties?

• A bridesmaid refuses to be measured by our consultants and provides her own measurements. You order the dress based on those measurements, and

when it comes in, it does not fit the bridesmaid. She blames you for the error. How do you respond?

• We are about to close for the day when a bride comes in during the last fifteen minutes. She has never shopped for her gown before and she

explains that she is extremely picky. It is likely that this appointment will last for several hours, requiring you to stay overtime by a significant

amount. What do you do?

Based on the Candidate’s responses to these and/or similar questions, the Manager will be called in to continue the interview.

In the case that both the Owner and Manager are satisfied with the

Candidate’s performance during the interview process, he or she will be invited to do a working interview, which will last for approximately 10 days. This will be a paid working interview. At the end of the 10 days, the Owner and Manager will review the

Candidate’s performance and determine whether or not to offer him or her a full position on the consultant team. This will be done using a clinical selection approach

in order to ensure new hires are the most appropriate of the applicants for the job.


Operations Dresses and other bridal merchandise are purchased from designers and

design companies who produce and manufacture the merchandise. Our boutique acts

solely as the retailer and distributor. The dresses are produced either in China or in the

United Kingdom. Our bridal fashion lines are Maggie Sottero, Casablanca, Ellis Bridal,

Andrew Adela, Bill Levkoff, VM Collection, Richard Designs, Symphony Bridal, and Meg

Jewelry.

Our invitation and stationary materials are purchased from wholesalers. As

previously described, we either assemble it into DIY packages or do the design work

ourselves.

The decor for our boutique is compiled using pieces from Home Goods, Pier

One, and similar furniture stores. Any displays or DIY elements are done using materials

purchased from Michaels, JoAnn’s, or other craft stores. We act as our own interior

designers, rather than hiring one.

Our approach to working with our customers is focused on creating a

unique, personalized experience. We get to know them on an individual basis; that way,

we are able to ensure that their wedding, their dress, their invitations, or any service that

they have come to us for is reflective of who they truly are and meets all of their desires.

We emphasize that the customer always comes first. They become our friends,

not just our clients. We aim to make their wedding dreams come true, no matter what it

takes.


Financials Due to the fact that this is a plan for a future business, all of the financial

forecasting is simply guessing. These numbers and expenses are estimations and are

more than likely to change when the time to implement this venture arrives.

START-UP EXPENSES

Initial Inventory Legal Applications

3-Month Rent Advertising/Announcements

Business License Equipment for Bridal Gallery

When we first begin this business venture, it will begin as the consulting service

only, with invitations offered on the side, as described in the timeline that follows within

the next section. As such, the only materials necessary would be furniture and decor,

which we estimate to be $10,000.

Upon expanding to include the bridal gallery, we would require the purchase

order of initial stock inventory as well as equipment such as mirrors, curtains, and dress

racks, which will approximately cost $25,000.

For a space of 1,200 square feet in Elk Grove, rent is approximately $1,800 per

month (“Retail for Lease”). Monthly utilities are expected to be $500.

Source: CityFeet.com


We will start the business with only ourselves as the employees. As we will still

retain our previous jobs for some time, we will not need to include ourselves on the

payroll. As the business expands we will hire sales associates for the bridal gallery, as

previously discussed.

In terms of funding, we will be taking out a bank loan in addition to using our

personal savings and receiving investments from our mothers, who have agreed to fund

an entrepreneurial venture should we choose to pursue one.

SALES & PROFITS

During the first phase of our business in which we offer only consulting and

invitations, these are our monthly goals in terms of sales.

✦ 2 full-service weddings

✦ 2 collaborative weddings

✦ 3 day-of weddings

✦ 10 invitation packages per month, either DIY or hired design

BREAK-EVEN ANALYSIS

The following outline covers our predicted break-even points during the first

phase of our business. The figures are based on median prices. Logically, we only need to

be hired for one full-service wedding consultation to reach our break-even point, but

ideally we would like to overcome that by more than a few hundred dollars.


Monthly Expenses: $1,800 rent + $500 utilities + $2,000 overhead = $4,300

2-full service weddings = $8,000

2 collaborative weddings = $6,200

3 day-of weddings = $2,100

10 invitations = $500

Revenue: $16,800

Net Profit: $12,500

Project Timeline Any deadlines are prospective and will most likely be adjusted at the time of

implementation. Provided deadlines are estimated using 2024 as a projected start date.

Phase One: Save money for initial start-up, apply for loans and business licenses. Rent building. Start consulting business. (Deadline: 2024-2025)

Phase Two: Establish reputation as consulting business within local wedding community. Expand outreach to the county and state. Save profits not associated towards operational costs for future expansion. Begin speaking with bridal designers and building reputations with sales representatives. (Deadline: 2028)

Phase Three: Once our reputation is established and enough money has been saved, expand business into the joint bridal boutique. This may involve moving to a new building with more space. Place stock orders with bridal companies. Advertise and market the expansion and potential change of address. Hire sales associates. (Deadline: 2029)

Phase Four: Begin operation of bridal boutique in conjunction with consulting service. Work to establish reputation as a “one-stop shop.” (Deadline: n/a)


WORKS CITED

"American Community Survey 2007-2011: Selected Social Characteristics." American FactFinder.

N.p., n.d. Web. 05 May 2013.

"Elk Grove Demographics Survey." CLRsearch. N.p., n.d. Web. 5 May 2013.

"Establishment Numbers Within Elk Grove, CA | Census Tracts." Map. SimplyMap. N.p., n.d.

Web. 5 May 2013.

Hurley, Lisa. "Bright Outlook for 2012, Special Events' Advisory Board Says." SpecialEvents.com.

6 July 2011. Web. 29 Apr. 2013.

Jaeger, Chris. "Wedding Industry Statistics 2011 American Wedding Study Brides Magazine."

Web log post. Wedding Industry Statistics. 5 July 2011. Web. 29 Apr. 2013.

"Retail for Lease: 9257 Laguna Springs Drive." Cityfeet.com. N.p., n.d. Web. 05 May 2013.

"United States 2010 Census Demographic Pro!le Data for Elk Grove, CA." American FactFinder.

N.p., n.d. Web. 05 May 2013.


APPENDICES

LOGO

EXAMPLE OF PROMOTIONAL ADVERTISEMENT (SALE)


APPENDICES

FLYER


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