Jules & Riley Creative Co

Target Market and Industry Trends

Jules & Riley Creative Co target market  includes:

1. Vintage and Eclectic Style Enthusiasts: Individuals who appreciate unique, vintage, and upcycled items that reflect a distinctive and eclectic aesthetic.

2. Budget-Conscious Shoppers: People who are looking for stylish and high-quality items at various price points, making it accessible to a wide range of income levels.

3. Local Community Supporters: Residents of Albuquerque, NM, who prefer to support local businesses and enjoy the micro boutique experience.

4. Creative and Artistic Individuals: Those who value creativity and originality in their jewelry and home goods, including items that are upcycled and have a unique story.

5. Working Parents and Busy Professionals: Similar to the founder, individuals who balance work and family life and appreciate the convenience of shopping locally and supporting a business with a relatable backstory. 

Target market values: inclusivity, affordability, and unique style, aligning well with the company's mission and offerings.

Micro-Boutique Structure & Benefits

Benefits to Jules & Riley (J&R):

1. Cost Savings: No need to operate a brick-and-mortar location, reducing overhead costs.
2. Tax Simplification: Sales tax is managed by the local business, simplifying J&R’s tax responsibilities.
3. Customer Insights: Ability to gauge specific customer requests and curate items based on demand and sales trends.
4. Increased Visibility: Utilizes existing local business spaces, increasing brand visibility without additional infrastructure.

Benefits to Local Partners (Coffee Shops and small businesses):

1. Revenue Share: Earn 30% of total sales generated by J&R, providing an additional revenue stream.
2. Increased Foot Traffic: Attracts more customers to the coffee shop, boosting overall sales.
3. Cross Promotion: Opportunities for cross-promotion and customer crossover, enhancing customer loyalty and engagement.
4. Enhanced Offerings: Provides customers with a convenient one-stop shop for coffee and gifts, enhancing the overall customer experience.

Additional Points to Consider:

• Community Engagement: Highlight the positive impact on the local economy and community by encouraging local spending.
• Sustainability: Emphasize any eco-friendly practices or products to attract environmentally conscious consumers.
• Customer Loyalty Programs: Implement joint loyalty programs with local partners to further incentivize repeat business.
• Marketing Collaboration: Develop joint marketing campaigns to maximize reach and effectiveness.

Implementation Timeline

Breakdown Implementation Timeline for Expanding J&R’s Micro-Boutique Structure

This timeline provides a structured approach to expanding J&R’s micro-boutique presence while ensuring both J&R and local partners benefit from the collaboration. 

Phase 1: Planning and Preparation (1-2 months)

1. Market Research (2 weeks):
   • Identify potential local partners. At this time Napoli Coffee is a current partner and there is potential partnership in one additional local space that has been identified for the near future.
   • Analyze customer demographics and preferences.
2. Partnership Agreements (2 weeks):
   • Negotiate terms and finalize agreements with selected local businesses.
   • Draft and sign contracts if needed.

Phase 2: Setup and Integration (2-3 months)

1. Logistics and Inventory (1 month):
   • Source and prepare inventory based on market research.
   • Develop a logistics plan for inventory management and distribution. (J&R)
2. Space Setup (1 Week):
   • Design and set up display areas within partner businesses.
   • Ensure branding consistency and visibility.
3. Training and Onboarding (Local Partners):
   • Train local partners on J&R products and sales.
   • Implement a system for tracking sales and inventory.

Phase 3: Marketing (Ongoing Grassroots approach)

1. Marketing Campaign (1 month):
   • Develop and execute a joint marketing campaign with local partners. Grassroots approach using Social Media
   • Utilize social media  and in-store promotions/seasonal sales and offerings.

Phase 4: Full Launch and Monitoring (Ongoing)

1. Full Launch (1 month):
   • Officially launch the micro-boutiques in all partner locations.
   • Host launch events and promotions to attract customers.
2. Monitoring and Optimization (Ongoing):
   • Continuously monitor sales and customer feedback.
   • Adjust inventory and marketing strategies based on performance data.

Additional Considerations:

• Community Engagement: Plan events or promotions that engage the local community and highlight the benefits of supporting local businesses.
• Sustainability Practices: Incorporate eco-friendly practices to attract environmentally conscious consumers.
• Customer Loyalty Programs: Develop joint loyalty programs with local partners to encourage repeat business. J&R offers 10% discounts on all items to partner employees as an appreciation for their work. 

Revenue

Revenue Model for J&R’s Micro-Boutique Project in Albuquerque, NM (2 Local Partner Projections):

Revenue Streams:

1. Product Sales: Revenue generated from the sale of J&R products within partner businesses.
2. Revenue Sharing: Local partners receive 30% of total sales generated by J&R products.

Revenue Projections:

• Initial Phase (First 6 months):
  • Number of Partner Locations: 2 local partners
  • Ideal Average Monthly Sales per Location: $2,000
  • Total Monthly Sales: $4,000
  • Revenue to J&R (70%): $2,800
  • Revenue to Partners (30%): $1,200
• Expansion Phase (6-12 months):
  • Number of Partner Locations: 2 coffee shops
  • Average Monthly Sales per Location: $2,000
  • Total Monthly Sales: $4,000
  • Revenue to J&R (70%): $2,800
  • Revenue to Partners (30%): $1,200

Cost Structure:

• Inventory Costs: Cost of goods sold, including sourcing and logistics. (J&R)
• Marketing Expenses: Joint marketing campaigns with local partners. (Grassroots/Free using Social Media)
• Operational Costs: Training, setup, and ongoing support for partner locations. (Display setups/tables etc. J&R).

Profitability Analysis:

• Gross Profit Margin: Calculated as (Revenue - Cost of Goods Sold) / Revenue.
• Net Profit Margin: Calculated as (Revenue - Total Expenses) / Revenue.

Break-Even Analysis:

• Break-Even Point: The point at which total revenue equals total costs, resulting in no net loss or gain.
• Break-Even Sales Volume: The number of units that must be sold to cover all fixed and variable costs.

Financial Projections:

• Year 1:
  • Total Revenue: $48,000
  • Total Costs: $32,000
  • Net Profit: $16,000
• Year 2:
  • Total Revenue: $48,000
  • Total Costs: $32,000
  • Net Profit: $16,000

Key Assumptions:

• Consistent average monthly sales per location.
• Effective cost management and marketing strategies.

This adjusted revenue model reflects a more focused approach with J&R operating in only 2 local partner businesses, each generating $2,000 per month. 

Adjusted Revenue Model for J&R’s Micro-Boutique Project in Albuquerque, NM (Expansion to 3-4 Coffee Shops)

This adjusted revenue model reflects the financial outlook for J&R’s micro-boutique project with an expansion to 3-4 local businesses in Albuquerque, NM. 

Revenue Streams:

1. Product Sales: Revenue generated from the sale of J&R products within partner shops.
2. Revenue Sharing: Local coffee shop partners receive 30% of total sales generated by J&R products.

Revenue Projections:

Initial Phase (First 6 months):

• Number of Partner Locations: 3 local businesses
• Average Monthly Sales per Location: $2,000
• Total Monthly Sales: $6,000
• Revenue to J&R (70%): $4,200
• Revenue to Partners (30%): $1,800

Expansion Phase (6-12 months):

• Number of Partner Locations: 4 local businesses
• Average Monthly Sales per Location: $2,000
• Total Monthly Sales: $8,000
• Revenue to J&R (70%): $5,600
• Revenue to Partners (30%): $2,400

Cost Structure:

• Inventory Costs: Cost of goods sold, including sourcing and logistics.
• Marketing Expenses: Joint marketing campaigns with local partners.
• Operational Costs: Training, setup, and ongoing support for partner locations.

Profitability Analysis:

• Gross Profit Margin: Calculated as (Revenue - Cost of Goods Sold) / Revenue.
• Net Profit Margin: Calculated as (Revenue - Total Expenses) / Revenue.

Break-Even Analysis:

• Break-Even Point: The point at which total revenue equals total costs, resulting in no net loss or gain.
• Break-Even Sales Volume: The number of units that must be sold to cover all fixed and variable costs.

Financial Projections:

Year 1:

• Total Revenue: $72,000 (assuming 3 local partners for the first 6 months and 4 for the next 6 months)
• Total Costs: $48,000
• Net Profit: $24,000

Year 2:

• Total Revenue: $96,000 (assuming 4 local partners throughout the year)
• Total Costs: $64,000
• Net Profit: $32,000

Key Assumptions:

• Consistent average monthly sales per location.
• Effective cost management and marketing strategies.

Funding Request

Funding Request for J&R’s Micro-Boutique Project

Executive Summary: Jules & Riley (J&R) is seeking funding to expand its successful micro-boutique model, currently operating in one coffee shop, to 3-4 additional local businesses in Albuquerque, NM. This expansion aims to leverage existing local business spaces to increase visibility, drive sales, and support the local economy.

Business Overview: J&R specializes in offering curated gifts and items within local businesses, providing a convenient shopping experience for customers. By partnering with local business owners, J&R benefits from reduced overhead costs and increased customer traffic, while coffee shops gain an additional revenue stream and enhanced customer offerings.

Funding Requirements: J&R is requesting $35,000 in funding to support the expansion to 3-4 additional coffee shops over the next 12 months. 

The funds will be used for the following purposes:

1. Inventory Procurement: $20,000
2. Space Setup and Display: $10,000
3. Operational Expenses: $5,000

Financial Projections:

• Initial Phase (First 6 months):
  • Number of Partner Locations: 3 businesses
  • Average Monthly Sales per Location: $2,000
  • Total Monthly Sales: $6,000
  • Revenue to J&R (70%): $4,200
  • Revenue to Partners (30%): $1,800

• Expansion Phase (6-12 months):
  • Number of Partner Locations: 4 businesses
  • Average Monthly Sales per Location: $2,000
  • Total Monthly Sales: $8,000
  • Revenue to J&R (70%): $5,600
  • Revenue to Partners (30%): $2,400

Year 1 Financial Projections:

• Total Revenue: $72,000
• Total Costs: $48,000
• Net Profit: $24,000

Year 2 Financial Projections:

• Total Revenue: $96,000
• Total Costs: $64,000
• Net Profit: $32,000

Use of Funds: The requested funds will be allocated as follows:

1. Inventory Procurement: To stock a diverse range of products tailored to customer preferences.
2. Space Setup and Display: To design and set up attractive display areas within partner coffee shops.
3. Operational Expenses: To cover ongoing operational costs, including logistics and support.

Conclusion: The expansion of J&R’s micro-boutique model presents a unique opportunity to enhance local business collaboration, drive sales, and support the local economy. With the requested funding, J&R aims to replicate its success in additional local businesses, providing mutual benefits for both J&R and its local partners.

Lindsey Dominguez

Owner

I currently run all aspects of J&R. I create and curate items, set up displays, manage purchasing as well as community partnerships and grassroots promotions via Social Media platforms. 

EMPLOYEE 

New Hire (Upon Expansion in 1-2 years)

Ideally I would like to expand and hire one additional person to assist with operations.