Free Uncontrolled Spin: The Power and Danger of Spin ("Un"missable Series Book 1) by Jerry Summers Page A

understand there will be a need to capitalize such a business expansion, but I’m not sure where and how it should be undertaken. I know my niche market very well. I’m between off-the-rack department store clothing and designer labels, and I want to stay there.” She looks up from her notes, directly into Sean’s eyes, captivating him yet again. “I want to dominate the professional women’s clothing market.”
    Sean asks, “What about lines other than clothing? Say, shoes or handbags or fragrances?”
    Jessica slightly shakes her head. “I’m a clothing designer. I’m good at it. I don’t know a thing about fragrances or handbags. In my estimation, the footwear market has too many significant players who design incredible products for me to compete with. A new company could be undercut in pricing from the start and forced out of the market before any real success is experienced. Beauty Boutique Clothing has a unique niche, and I’ve had tremendous success filling a need that high fashion designers aren’t interested in, and the department store clothing lacks in quality. I have established lower prices and extreme quality as the norm. I don’t think I could keep that promise in other categories. I also don’t believe I have the financial capability to expand into France, Italy, or Germany, so I have been looking at the former Soviet Union markets. I know there is a major pent-up demand, but I’m not sure about the consumer purchasing power quite yet.”
    Sean nods, satisfied with her answers, then says, “You also have to deal with a significant political environment that is unstable at best and completely corrupt at worst, without any real indication which force will prevail. Where do you see your sales in two years without any expansion? Where do you see them with expansion? What are your projections for any type of expansion you may consider? How do you see Beauty Boutique Clothing implementing your expansion strategy? Finally, what are your capitalization or financing needs and plans for this considered expansion?”
    Jessica pauses to think for a moment, and Sean can almost hear the wheels turning in her brain. He’s finding that he enjoys discussing business with her. “Well, let’s see if I can handle those questions in order. In two years, without expansion, I see the Beauty Boutique’s revenues leveling out right around two million dollars per annum and remaining stable with minor rises and declines in the ten percent range. With a proper expansion and choosing the right market, I see us doubling or tripling our sales revenue with perhaps a decline of profitability initially of five-to-ten percent due to higher distribution costs. Once our distribution systems, both vertically and horizontally, get the bugs worked out, profitability should increase by ten-to-fifteen perfect per unit sold. My projections are based primarily upon increased distribution costs, with manufacturing remaining in the United States and finding appropriate commercial space to showcase and sell our designs via our own outlets in whatever market or markets we choose to pursue. Our expansion strategy would be to continue what we are currently doing and marketing through our own stores. In this manner, I can maintain control of customer service and the high quality of the shopping experience we have successfully developed thus far—”
    Sean interrupts, “So, just to clarify, you intend to manufacture in the United States, increase production, and market through individually owned storefronts? Is that correct?”
    Jessica nods. “Yes, exactly. In this manner, the major costs are finding and securing appropriate commercial spaces for retail sales in the new market or markets. Finally, I plan to fund this expansion through savings and increased sales.”
    “I see,” Sean replies, considering her drive and strategies. There is a knock on the door, and Evelyn pokes her head in.
    “Lunch has arrived,” she tells