3.  Total startup cash needed  Financial performance of similar business  Overall financial attractiveness of the proposed venture

4.  The startup costs include both capital investments and operating expenses that are needed in order for our boutique to make its first sale  At this stage, this number is an estimate, led by research and/or speaking with another business

5.  Property (renovations & construction › $4,000.00  Furniture & fixtures › $2,551.00  Computer Equipment › $59.00  Other Equipment › $1,069 Capital Investments$ Computer Equipment $ 59.00 Equipment and Machinery $ 1,000.00 Furniture and Fixtures $ 2,551.00 Price Gun $ 69.00 Vehicles none Building Improvements $ 4,000.00 Buildings none Land none TOTAL $ $7,679.00

6.  Legal, accounting, and professional services › $1,800.00  Advertising and promotions › $1,470.00  Deposits for utilities › $300.00  Licenses and permits › $600.00  Prepaid Insurance › $300.00  Lease Payment (deposit plus 1 st month rent) › $1,600.00

7.  Salary and Wages › $7,320.00  Payroll Taxes › $540.00  Travel (trade show) › $500.00  Signs › $800.00  Tools and Supplies › $867.00  Starting Inventory › $3,373.00

8.  Cash › $500.00  Training for employees › $500.00  Grand Opening Event › $400.00  Estimated Total Startup Cash › $28,549.00 Lease $ 1,600.00 Salary and wages $ 7,320.00 Payroll taxes $ 540.00 Travel $ 500.00 Signs $ 800.00 Tools and supplies $ 867.00 Starting inventory $ 3,373.00 Cash (working capital) $ 500.00 Other expense 1- training for employees $ 500.00 Other expense 2- Grand Opening event $ 400.00 Legal, accounting, and professional services $ 1,800.00 Advertising and promotions $ 1,470.00 Deposits for utilities $ 300.00 Licenses and permits $ 600.00 Prepaid insurance $ 300.00 Total 20,870.00

9. Estimate of Proposed Venture’sExplanation of How the Estimate Was Computed Annual Sales—Year 1 The national average sales for women's clothing boutiques is between $400 to $500 dollars per sq ft. In the first year we are estimating below the national average at $210,000 $350 times 600 sq ft. = $198,000 Estimate of Year 1 Sales Summary: How proposed annual sales, on average, compares to similar firms (circle one) Below Average Estimate of Year 2 Sales The national average sales for women's clothing boutiques $240,000 is between $400 to $500 dollars per sq ft. In the second year Summary: How proposed annual sales, on we are estimating the conservative side of the national average average, compares to similar firms (circle one) at $400 times 600 sq ft. = $240,000 Average Annual Sales

10. Net Income Estimate of Proposed Venture’sExplanation of How the Estimate was Computed Net Income—Year 1Sales of 210,000 less yearly expenses (see table below) $119,565, to equal $78,435. 78,435.00 Estimate of Year 1 Net Income Even though our estimated sales are below average, our Summary: How proposed net income, on expenses are pretty low for the average rent rate and average, compares to similar firms (circle one) staff expenses. Average Estimate of Year 2 Net Income Our annual sales will include to 240,000. We took this number less year 2 expenses (see table below) of 141,460.00 $141,460 to equal 141,460. Summary: How proposed net income, on average, compares to similar firms) Our estimated sales are average and our expenses are also pretty average for industry standards. Average

11. Year 1 and 2 Expenses Year 1 Expenses Less expenses startup 28,549.00 payroll 31,440.00 rent 8,800.00 Utilities 6,000.00 Inventory 40,476.00 Equipment/stati onary 1,000.00 Insurance 3,300.00 119,565.00 Year 2 Expenses Less expenses startup - payroll 31,440.00 rent 8,800.00 Utilities 6,000.00 Inventory 48,000.00 Equipment/stati onary 1,000.00 Insurance 3,300.00 98,540.00

12.  The following factors are important in regard to the overall financial attractiveness of the proposed business.

13.  Total Startup Cash needed › An estimate of total startup cash needed is $28.549.00 › We can keep our expenses low because we are not buying property and the rental space is cheap/small. › This is a feasible startup amount because all four owners will invest $8.000.00 of our own savings. › The $32,000.00 personal investments should cover all costs ($5,000.00 cushion for unforeseen expenses)  A majority of these costs calculated through research, actual quotes, or conversations with business owners.

14.  Financial Performance of similar business › Since we have not yet been able to obtain financial information from other Boutique’s in Buffalo, we based the similar business off U.S. averages in the women’s small boutique industry. › We are conservative with our estimates based off of these figures. › We took into consideration that Buffalo is growing in the retail sector and people are starting to spend more on clothing.

15.  Financial Feasibility - FEASIBLE › Since our personal investments cover almost all the initial startup costs, we are considering this venture feasible. › If need be, we can take out an additional small loan or apply for a grant for women in business to cover any additional costs we run in to.

16.  Suggestions for improving financial feasibility › The main focus now is to find out more information on similar boutiques in Buffalo. › If we can acquire information on startup costs and the first three year of revenue, we could more accurately determine if we are on the right path.

17.  As it stands now, comparing ourselves to national averages, the business is feasible with current estimates.  If additional funds are needed we are going to look into getting a small business loan through Start-UP NY.  Based on research of the retail industry in WNY, we are under the assumption that consumer spending habits and population growth in Buffalo will continue for the foreseeable future.

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