Financing Starts and Growth - Heather Evans

Financing Starts and Growth – Heather Evans

 Ideas

To initially design high price and high quality dresses to fit the light-style and demand of formal professional women, and if successful, introduce other lines under the HE name to benefit from its reputation and customer franchise.

Clear segmentation with high MKT potential needs - large base, high spending and steady growth, and open channels that welcome new products. High financial potential for licensing and expansion into related markets.

 Risks

Easy entry to the market which makes it also easy for duplication.

Future unforeseen - Unclear acceptance of HE design by the market and no established customer relationships.

Lack of staff and should be open to accept outside guidance and direction

Heather herself is lack of business and people management experiences – being a financial analyst of a company is quite different from running a company. For the designing part, Heather is lack of technical training and experience in design - demonstrating dresses doesn't present the ability to make dresses, and the assistant designer Belinda, who used to work for moderate-price dress house, now works as part-time with possibility of quitting before funding is received. The pattern-maker is still in search.

 Financial Analysis

High margins (40% - 60%) and low working capital needed, which indicates less risk but relatively high return if the line is well accepted by fashion press and consumers. Tax consequences that generate cash benefits when operating losses in the early years should also be count into consideration.

Most of the conditions from individual investors are against HE's criteria when requiring