New business plan: Put it on wheels, and call it a party(Read article summary)
A couple of entrepreneurs adjust their business model for a weak economy by turning a boutique into a traveling shopping party.
Chris Weeks / AP / File
After developing their business model and forecasting expenses, many aspiring entrepreneurs are suffering from sticker shock. The thought of investing a large amount of money or going into debt is scaring many away from their startup dreams.
Aubree Phillips, who is graduating from the entrepreneurship program at Belmont University this spring, has dreamed of starting a clothing boutique since the day she arrived on campus. She gained experience by working in the campus-based clothing store called Feedback and worked on the plans for her store in every entrepreneurship course she took.
But with graduation looming this spring, the thought of spending more than $100,000 to open her store in a weak economy gave her cold feet. But she did not abandon her dream. Instead, she partnered with her friend Natalie Sawyer, a Lipscomb University alumna, to brainstorm about ways to meet shared goals by bootstrapping.
The biggest single financial commitment was the physical space to house their boutique. So Phillips and Sawyer decided to change their business model from a store to a "traveling boutique" called Fringe and Lace. Rather than setting up in a traditional storefront, they take the clothing directly to their customers' homes.
"We specialize in clothing, jewelry and accessories," Phillips said. "All items are trendy and under $100. Our customers find that shopping at home, surrounded by friends, is a fun and relaxing alternative way to shop."
They are able to keep staffing costs down since they do not need employees for a brick-and-mortar store. Phillips and Sawyer staff all of the parties. When the business grows beyond what they can handle, they plan to hire interns and part-time employees to help.