Financial+model

Alex 12 March 2011

Input from lecturer based on the financial model: - Get local designer, focus on branding. charge higher. Take note also that for a $200 product, the designer can expect $150 fee - From second year onwards, look at bigger market (malaysia, indonesia), take scalable volumes. Need to change the number, because $3000 profit is not exciting - People buy online because of alternatives also, if cannot find offline - New feature: Made to order - Think Big (don't focus on Singapore only) - include accessories (shoes, scarf), everything we can buy, related to cloth - channel for local designer

**Francis' tips** How did we derive our prices? Are they cheaper than competitors? What is the thought process behind the figures? Break it down into months for YE00 - helps to plan how you execute your business Use financial ratios, like profit margin. How do we expect our business to grow? It grows because we market more, word of mouth spread, improve on apparel? Projecting into YE03 and YE04 Salaries - designer fees, shareholder dividends How do we pay sellers when we get 1 transaction? When will they deliver? When they receive the amount from us? We got to get an agreement with sellers that they'll hold the goods while it's on the website.

Bigger scale (larger volume) Designer fees = 150% markup Plus size retail price $50-100 Add whole gamut of women wear (accessories, shoes, belts...) 2nd year expand to region

Verena: as at 11 March 2011, added creditors and salaries

Alex 11 March 2011

Verena, the financial model looks nice.Thanks for preparing.

I try to see "Income fm own clothes" sheets, there are No. Of Items (50 qty / 3 months). So in theory it will be about 200 different items each year. And I believe unsold items will be keep displayed, so the number of items will be accumulating.

So most likely we will need to change the "Working" sheets "Plans "Get Going"" to another plans, called "Plans "Going Places"", which can accommodate up to 500 different items. The monthly cost will be US$25 (S$ 31).

For the presentation "Plus size.ppt", maybe we can add information saying that in Asia, the concept of plus size women is different with America, plus size in Asia can easily get normal size cloth in America. And also, doesn't we want to go to another things also? (not only cloth for woman). Do we need to add "Future Plan" in the presentation?

Thanks, Alex

Balance sheet is finally balanced. I forgot to clear our stock balance every year, so by the 3rd year, we'll have alot of stock. Will have SALE after every year to clear stock. This is what I plan to present briefly this Sat. Any other business elements do we need to add? Last few slides are empty because I intend to cut and paste some parts of the financial model in there.

Jami - Looks good. I thought it was only to present the finance model but the additional info is good.