Zara Business Plan

1
ZaraBusiness Plan

• Tracy Goehri, Nikki Scott, Sheri Sasaki, and
  Melissa Richardson

2
Organization

• Ownership will be a partnership.
• We are a Zaras franchise.
• We want to sell high quality, high fashion
  products, bringing a taste of Europe to the Puget
  Sound area.
• We want the customer to have a unique shopping
  experience with us that they wont find anywhere
  else.

3
Questions to ask before deciding to buy this
business

• How many square feet is the average Zara store?
• Where will the store be located?
• How much will rent be per month?
• How many people will we employ?
• What will the average salary be for our
  employees?
• What benefits will we offer?
• How much inventory should we start with?
• What kind of loan we will be needing?
• How much will technical material startup costs
  be?
• What kind of marketing approach will we take?
• What will our estimated debt and/or profit be
  over the first few years of our business?

4
Location, Size Rent

• Location
• Bellevue Square
• Size
• 1,500 SQ Ft
• 1 story

• Rent
• 52 Per Sq Ft
• Yearly rent
• 1,500 52 78,000
• Monthly rent 78,000/12 6,500

5
Inventory

• Zara products only.
• Womens apparel only.
• New shipments arrive twice a week, Mondays and
  Thursdays.
• Mark-up 200 from wholesale.
• Start off with around 1,000 units with new
  shipments bringing 300 units.

6
Marketing

• We will maintain the Zaras approach to
  marketing.
• Word of mouth marketing.
• Window displays will attract a lot of customers
  not familiar with the Zara brand.

7
Employees, Salaries Wages

• Staff of employees
• General Manager
• 1 GM
• Salary (52,000/year)
• Assistant Manager
• 2 AM
• Salary (43,680/year)
• Associates
• 10 associates
• Salary (12/hour)

• Only full-time employees to start out.
• Later we will take on part-time employees as
  well.
• Benefits will be offered to all employees up to
  40 of their yearly salary.

8
Start-Up CostsFor the first month of business
9
Start-Up Revenue

• 50,000 loan with the lowest APR possible.
• 50,000 from various private investors.
• Owners will contribute capital to cover various
  other costs.

10
Initial Debt/Revenue
11
Would We Buy This Business?

• Our overall profit at the end would count towards
  paying back loans and account for random loss or
  unsold goods.
• We feel that we would overcome our debt within
  3-5 years.
• We feel that this would be a very profitable and
  enjoyable business to run.