Looking for a bridal gown shop business plan? You're in the right place.
A designer gown shop spends its money before it earns it. How much does the sample floor cost? How much of each deposit is already owed to a designer? How long until the first gown is picked up and the first alteration billed? A generic retail template won't show what a sensible answer looks like.
In this article we'll walk through a complete sample business plan for a designer bridal boutique in Portland, Oregon, section by section, so you can write your own with confidence. We'll cover the executive summary, the SWOT analysis and, in particular, all of the financials.
Here's what you'll take away:
- The executive summary: put the whole shop on one page, with the funding, the first three years and the risk, so a lender or investor sees the ask in a minute
- The appointment-to-order funnel: see how appointments, close rate and average ticket build the revenue line, so your forecast starts from the diary and not a guess
- The start-up budget: find out what a sample floor and a workroom cost before the first sale, so you raise enough
- The deposit and pickup timing: learn how customer deposits, designer payments and a seven-month lead time move cash, and what a bank will ask about it
- The alterations line: see how attach rate and bench hours turn a gown sale into a second revenue stream
- The five-year profit, cash flow and balance sheet: follow how each hire, price and hour shows up in the numbers
- The downside case: have an answer ready for "what if appointments are 20% short?", with the steps the owner takes
If you're opening a bridal shop, read this before you write your own. The shop is fictional, so take what fits and change the rest.
In this plan
If you need a bridal gown shop business plan template for your own plan, start it in the Toolkit.
Executive Summary
Pearl & Thread is a designer bridal boutique that opens in northwest Portland, Oregon, on 1 January 2027. It sells gowns from five independent design houses by appointment only, alters every gown in its own workroom, and sells veils and accessories to match. Founder Claire Whitlock owns 60% of the shop and one outside investor owns 40%.
The shop needs $380,000: $140,000 of Claire's savings, $120,000 from the investor and a $120,000 bank term loan. Of that, $108,000 buys the sample gowns and accessories stock, $66,000 builds out the showroom and workroom, $18,000 pays three months of rent before opening, $8,000 pays for legal work and licenses, $16,000 funds the launch campaign and $164,000 is held as a cash reserve.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue (cash received) | $608,588 | $1,215,270 | $1,529,313 |
| Net income after start-up costs | ($121,850) | $19,537 | $106,334 |
| Closing cash | $87,397 | $102,488 | $204,402 |
Revenue is cash received: a deposit counts when the bride pays it and the balance when she picks up the gown. On an accrual basis, with deposits held as a liability until pickup, the Year 1 loss is $181,595 before start-up costs and $223,595 after them, and closing equity is $36,405 on $260,000 paid in. The financial plan shows the cash and accrual figures side by side. Year 2 revenue is double Year 1's because only 107 of Year 1's 240 gown orders are picked up by December.
Year 1 books 686 bridal appointments and about 240 gown orders at an average of $3,000. A standard gown takes seven months to arrive. Operating profit is negative from January to July and positive from August to December.
The plan also tests itself. If appointments and orders run 20% short and Claire delays hires, drops two roles, cuts her own pay and pays no distributions, the shop stays cash-positive in every year of the model. A close rate five points lower in every year, with no response, does not.
Pearl & Thread at a Glance
Legal name: Pearl & Thread Bridal, LLC, an Oregon limited liability company. Owners: Claire Whitlock, 60%, and one private investor, 40%. Showroom and workroom: 1,900 square feet of leased retail space in northwest Portland. Opening: 1 January 2027, with the appointment diary open from the first week. Stage: pre-opening. The lease is signed for October 2026, the sample order with the five houses is placed in August 2026 and the floor arrives through the fall, ahead of opening.
Purpose
Give brides a private, unhurried appointment with a stylist who knows the collection, then see the gown through to its final fitting under one roof.
Goals for the first three years
- 686 appointments and about 240 gown orders in 2027.
- 1,000 appointments, 40% closing and revenue of $1.5 million by 2029.
- Cash above the balances owed to designers by the end of 2029, then owner distributions.
What the shop sells
| Line | How it is priced | Year 1 share of receipts |
|---|---|---|
| Designer gowns, ordered to size | $1,700 to $5,000; $3,000 average order | 85.5% |
| Alterations | $720 average per gown | 9.7% |
| Veils and accessories | $240 average per bride | 2.5% |
| Worn sample gowns | $1,350, one sale in 2027 and two a year after | 2.2% |
What the shop answers to
Oregon charges no general sales tax on retail sales, so the ticket price is what the bride pays; confirm current rules with the Oregon Department of Revenue. The shop registers with the City of Portland and Multnomah County for the business income taxes that apply to it. Each design house sets its own terms, and Claire has the five agreements reviewed by a lawyer before the sample order is paid.
Bridal Demand in Portland
How many brides there are
The CDC counted 2,065,905 marriages across the United States in 2022, a rate of 6.2 per 1,000 people, back at pre-pandemic levels. This plan does not count Portland weddings or the boutiques that compete for them. It sizes the shop from capacity instead: a stylist can run about 12 appointments a week, and the shop plans for 686 appointments in the first year and 1,060 by the fifth.
Who else sells a wedding gown
| Alternative | What it offers | Its strength | Where Pearl & Thread differs |
|---|---|---|---|
| Other independent bridal boutiques in the Portland area | Designer gowns by appointment | Established relationships with designers and past brides | Five houses at one price band, with alterations in the same building |
| Department-store and national chain bridal salons | Wide range, often off the rack | Lower price points, convenience | Private 90-minute appointments and gowns ordered to the bride's size |
| Online-first gown sellers | Direct-to-bride ordering | Low prices, no appointment | A bride can try the gown on and have it fitted in person |
| Rental and pre-owned gown sellers | A gown for less money | Lowest cost | New designer gowns made to order, with fittings |
The table describes what each category offers and how the shop positions itself, not a ranking. Individual shops are not named, because their prices and lines change and are not quoted here.
Strengths and risks
| Strengths | Weaknesses |
|---|---|
| Founder with eleven years in Portland bridal retail | Claire is the only stylist until month 6 |
| In-house seamstress, so the shop controls the fit | Seven months of losses before pickups begin |
| Deposit terms written into every order | A $94,000 sample floor is stock that can date |
| Opportunities | Threats |
|---|---|
| Referrals from venues, planners and photographers | A designer discontinuing a line mid-season |
| Alterations and accessories sold to every bride | Late deliveries that push gowns past a wedding date |
| Bridesmaid and mother-of-the-bride fittings as a later line | Online gown sellers pulling brides away at the browsing stage |
The Bride and Her Party
The engaged bride, 12 to 24 months before the wedding
The customer is a bride who has a venue and a date, and a gown budget she chose before the first appointment. She comes with one to three guests. Her wedding date sets the deadline for the order.
How she looks today
She has browsed designers online, saved pictures and read reviews. Some brides try on at a chain salon first and visit a boutique second, and some come on a friend's recommendation.
What makes her choose one boutique
A calm appointment where someone listens to her, a gown she can see on herself, a price she understands before she leaves, and confidence the gown will arrive in time and fit. Fit and delivery date matter more to her than a discount.
What she worries about
Paying a deposit to a shop that might close. Receiving a gown in the wrong size. A gown arriving after the date. The plan answers the first with written deposit terms and the other two with a measured order and a pickup date set two months before the wedding.
The party around her
Mothers, bridesmaids and friends often attend and shape the decision. Their comfort in the room is part of the sale.
From First Appointment to Signed Order
The path to an order
The bride books online. Claire or a stylist confirms by email, and the 90-minute appointment follows: a short conversation, a first selection from the sample floor, three to five try-ons, a price discussion. The bride who orders pays a 50% deposit that day, is measured, and gets a written order with the designer, size, price and a pickup window.
The funnel in numbers
| Year 1 | Year 2 | Year 3 | Year 5 | |
|---|---|---|---|---|
| Bridal appointments | 686 | 860 | 1,000 | 1,060 |
| Close rate | 35% | 37% | 40% | 41% |
| Gown orders | 240 | 318 | 400 | 434 |
| Average order | $3,000 | $3,090 | $3,180 | $3,380 |
| Gown pickups | 107 | 301 | 363 | 432 |
Orders in a year are not the same as pickups. The gap, 133 orders at the end of Year 1, is the shop's open order book and is why deposit timing needs its own table in the financial plan.
Pricing and deposits
Gowns are priced from the design houses' recommended retail tags, with no discounts on new gowns. The bride pays 50% at order and the balance at pickup, before the first fitting. Alterations are quoted at the pickup appointment. Sample gowns are sold at $1,350, about 55% below the retail tag of an average gown: once in the first year, in October, and twice a year after.
Lead times
A standard order, 70% of the total, takes seven months from order to pickup. A rush order, 30%, takes four. The model adds no rush fee, though design houses may charge one.
Alterations
Alterations attach to 85% of gowns, average $720 and take about 9 bench hours. Half is billed at the first fitting and half at the final one. A gown nearly always needs a hem and a bustle and often a bodice fit.
Referrals and repeat business
Past brides refer friends and sisters, and bridesmaids who attend appointments later book their own. The plan counts 80 appointments from Claire's own network in Year 1 and expects past-bride referrals to grow as a share of appointments from Year 2.
Where Appointments Come From
What marketing costs per appointment and per order
Year 1 marketing is $64,000: $16,000 of launch spend funded from the start-up capital and $48,000 of running costs. That is $93 per appointment and $267 per gown order, about 9% of the average ticket. The cost per order falls to about $176 in Year 2 and $155 in Year 3 as referrals take over.
| Source | Year 1 appointments | Year 1 spend | Notes |
|---|---|---|---|
| Referral partners (venues, planners, photographers) | 175 | $6,000 | Styled-shoot gown loans, thank-you gifts and a partner lookbook |
| Claire's own network and past clients | 80 | $0 | Introductions and recommendations |
| Instagram and Pinterest | 175 | $12,000 | Monthly content, creator partnerships and two styled shoots |
| Google search and local ads | 140 | $13,000 | Searches such as "designer wedding dress Portland" |
| Wedding directories | 65 | $6,000 | Listings with reviews |
| Bridal shows and events | 51 | $5,000 | Two shows a year |
| Email, CRM and printed lookbook | – | $3,500 | Follow-up after every appointment |
| Content and photography | – | $2,500 | Gown and showroom imagery |
| Launch: brand, website, photography, opening event | – | $16,000 | Paid from start-up capital |
The Year 1 sources add to 686 appointments. Running marketing is 8% of Year 1 receipts and 4% by Year 3.
Booking targets through 2027
- January: showroom open, 33 appointments in the diary.
- April: 59 appointments in the month and the first referral partners sending brides.
- September: the fall peak, 75 appointments and the first full month of gown pickups.
- December: about 240 gown orders for the year.
Running the Showroom and Workroom
The showroom and the lease
1,900 square feet in northwest Portland at about $38 a square foot a year, all in, $72,200 in Year 1 with 3% annual steps. The lease runs five years with one five-year renewal option. The shop builds out the space itself with no landlord allowance, and Claire gives a personal guarantee in place of a deposit. The space holds three fitting suites, a podium, a 64-gown sample floor and an accessories wall, with the workroom in the back third.
The sample floor
Sixty-four gowns from five houses, bought at wholesale for $94,000, an average of $1,469 each. Once in 2027 and twice a year after, the shop sells the most worn samples at $1,350 and replaces them with the new season's. The floor stays at 64 gowns.
Designer terms
Each house is paid half of wholesale when the order is placed and the rest, with freight and duty, before the gown ships. The plan's terms with the houses give no credit line, require a minimum opening order of about $18,800 per house, allow no returns on special orders and do not let orders be canceled once placed. These are the plan's figures; each real house sets its own.
If a house fails
Customer deposits are the shop's largest obligation. If a house closes or stops shipping, the shop moves the order to another house at the same price or refunds the bride in full. At the end of Year 1, a quarter of the open book is about $50,000 of customer deposits and about $24,000 of designer deposits paid, which would be lost. The shop holds no separate refund fund.
From order to the final fitting
The shop places each order with the design house within two days. It checks every gown on arrival against the order, measures it again, and calls the bride for pickup. She pays the balance, takes the gown to her first fitting and returns for a final fitting two to three weeks before the wedding.
Alterations capacity
A full-time seamstress has about 1,600 bench hours a year. Alterations need about 820 hours in Year 1, 2,310 in Year 2 and 3,310 in Year 5, so the first seamstress starts in month 6, the second in month 17 and a part-time assistant in month 40.
Software and records
Scheduling and reminders, a point-of-sale and order system that holds the deposit ledger, accounting software and a client file for every bride's measurements and fittings. Software costs $11,000 in Year 1 and $15,500 in Year 5.
Registrations and insurance
- Oregon and City of Portland business registrations, and the Multnomah County business income tax account.
- General liability, property and stock cover and cyber cover, budgeted at $7,500 in Year 1. Workers' compensation sits in the payroll on-cost.
- Written order contracts with deposit, cancellation and pickup terms, reviewed by a lawyer.
The Team
Claire Whitlock, founder, owner and lead stylist
Claire has eleven years in Portland bridal retail. She started as a seamstress in a bridal salon, became a stylist in her third year and has run the floor for the last five. She knows the five houses the shop buys from. Her $140,000 investment is eleven years of savings and her pay of $70,000 is in the costs from month 1.
Gaps Claire is covering
Claire has not run a lease, a loan or a full payroll before. The shop is thin on stylists until month 6 and on admin until month 13. The plan covers this with a part-time coordinator who owns the order and deposit ledger, an accountant who reviews the deposit position every month and a lawyer who has reviewed the order contract and the designer agreements.
Hiring
| Month | Role | Why then |
|---|---|---|
| 6 | Lead seamstress | The first rush pickups arrive in May and the first large batch in August |
| 6 | Bridal stylist | Appointments pass what Claire can run alone |
| 13 | Studio coordinator and second stylist (both part time) | The order book and the spring peak both grow |
| 17 | Second seamstress | Alterations pass what one seamstress can bench |
| 38 | Studio manager, who also styles | Peak months pass 105 appointments |
| 40 | Alterations assistant (part time) | Bench hours pass 3,000 a year |
Cover for Claire's absence
The first stylist runs the diary and the seamstress runs the workroom. Key-person cover is a life and disability policy on Claire, included in the insurance budget.
Who holds the equity and the debt
Claire holds 60% of the shop and the investor 40%, both in ordinary shares with distributions in proportion to ownership and no preferred return. The investor must consent to new borrowing above $150,000, a sale of the shop and the issue of new shares, and has tag-along rights if Claire sells. The loan is secured on the equipment and stock, with Claire's personal guarantee, and requires quarterly accounts. The investor gives no guarantee.
Financial Plan: Deposits, Pickups and the Season
The model runs five years: month by month for 2027, then year by year. Every table is generated from the inputs. Revenue here is cash received, so a deposit counts the month it is paid and the balance the month the bride picks up the gown. Three headline figures need that context. On an accrual basis, where deposits sit as a liability until pickup, the Year 1 loss is $181,595 before start-up costs and $223,595 after them, against the $79,850 and $121,850 the cash tables show, and Year 1 closing equity is $36,405 against $138,150. Year 2 revenue is double Year 1 because only 107 of Year 1's 240 orders are picked up by December. The blended gross margin of about 55% sits above the 48% a gown earns because alterations and sample sales carry little direct cost.
Sample floor, workroom and launch funding
| Use of funds | Amount |
|---|---|
| Sample collection: 64 gowns from five designer houses, at wholesale | $94,000 |
| Opening accessories stock: veils, headpieces, belts, jewelry | $14,000 |
| Showroom build-out: fitting suites, podium, mirrors, lighting, racking | $52,000 |
| Alterations workroom: industrial machines, press, dress forms | $14,000 |
| Portland and Oregon registrations, business licenses | $1,500 |
| Legal: entity, lease review, designer agreements, deposit terms | $6,500 |
| Launch: brand, website, photography, opening event | $16,000 |
| Pre-opening rent, October to December 2026 (three months) | $18,000 |
| Cash reserve for the first season | $164,000 |
| Total uses | $380,000 |
| Source of funds | Amount |
|---|---|
| Claire Whitlock's savings | $140,000 |
| Private investor (40% stake) | $120,000 |
| Bank term loan | $120,000 |
| Total sources | $380,000 |
Claire puts in $140,000 of savings and a private investor puts in $120,000 for 40% of the shop, so equity is $260,000, 68% of the $380,000 raised. A bank lends $120,000 over seven years at 10.5%, interest-only for the first six months. The rate is a planning figure and not a quoted rate. The bank takes a personal guarantee from Claire and a lien on the equipment and stock. The sample order is placed in August 2026, the floor is delivered in the fall and three months of rent are paid before opening; the tables show all of it as spent at opening. The $164,000 reserve is the largest line, and it is sized to the lowest month of the first year. Operating profit before interest is negative every month from January to July, $104,780 in total, and turns positive in August. With designer balances paid a month before each pickup, the lowest month-end cash is about $32,700 in August; the downside case, on the same footing, bottoms at about $22,800 in September.
Operating figures behind the model
- The shop is open by appointment, Tuesday to Saturday, in 90-minute slots. Year 1 books 686 bridal appointments, ramping from 33 in January to a peak of 75 in September and October. Later years book 860, 1,000, 1,040 and 1,060.
- Close rate, meaning gown orders per appointment, is 35% in Year 1, 37% in Year 2, 40% in Year 3 and 41% in Years 4 and 5, which gives about 240, 318, 400, 428 and 434 orders. A bride who has booked a slot with a stylist is a different prospect from a walk-in, which is why the rate sits above ordinary retail conversion.
- The average gown order is $3,000 in Year 1 and rises 3% a year, to $3,380 in Year 5. The lines the shop carries retail between about $1,700 and $5,000. The average is a planning figure; no Portland price survey was found. Oregon charges no general sales tax, so the ticket is the whole price; confirm current rules with the Oregon Department of Revenue.
- The bride pays 50% at order and 50% at pickup. Revenue is booked when money is received, the cash method many small shops use. A standard order (70% of orders) takes seven months from order to pickup and a rush order (30%) takes four. The model charges no rush fee, which understates revenue slightly. About 107 gowns are picked up in Year 1 against about 240 ordered.
- Designer houses are paid half of wholesale at order and the rest, plus freight and duty, before the gown ships. Wholesale is 49% of the ticket and freight, duty and transit insurance add 3%. The plan's terms with the houses: no credit line, so every order is paid in two halves; a minimum opening order of about $18,800 per house; no returns on special orders; and orders cannot be canceled once placed. The deposit stream therefore carries a 49% direct cost and the balance stream 55%. A gown earns 48% before card fees. The model charges the 55% in the pickup month. In practice the cash goes out about a month earlier, which lowers month-end cash by $12,000 to $17,500 from July of Year 1, and lowers each year-end cash balance by the designer payments for the following January's pickups: about $17,400, $20,600, $26,400 and $29,300 at the ends of Years 1 to 4.
- Alterations attach to 85% of gowns picked up. The average bill is $720 in Year 1, rising 3% a year, half billed at the first fitting and half at the final one. A gown takes about 9 bench hours, so an altered gown brings in about $80 an hour. A full-time seamstress is paid for about 2,080 hours and has about 1,600 bench hours, which puts her cost at about $46 an hour. Supplies are 6% of alterations revenue. Bench hours needed are about 820 in Year 1, 2,310 in Year 2, 2,780 in Year 3, 3,170 in Year 4 and 3,310 in Year 5, against capacity of about 930, 2,670, 3,200, 3,800 and 4,000.
- Veils and accessories are bought by 60% of brides at pickup, averaging $240 in Year 1, at a 50% cost. The shop sells worn sample gowns at $1,350, about 55% below the retail tag of an average gown and 8% below wholesale: one sale in October of Year 1 (10 gowns) and two a year after (22 to 26 gowns a year). Each sample sold is replaced at $1,470 in Year 1, so the floor stays at 64 gowns, held at its $94,000 cost, an average of $1,469 each. Accessories stock is held at $14,000.
- A full-time stylist runs about 12 appointments a week. Claire runs up to 14 a week alone until the first stylist starts in month 6, then about 8, and a part-time stylist runs 6. Peak months need 75 appointments in Year 1, 90 in Year 2, 105 in Year 3, 109 in Year 4 and 111 in Year 5, against roster capacity of about 87 from month 6, 113 from month 13 and about 148 once the studio manager starts styling in month 38. Peak months in Years 2 and 3 run at 80% and 93% of capacity.
- Payroll adds 27% to wages for payroll taxes, health cover, workers' compensation and a retirement match, and 15% for part-time staff. The insurance line excludes workers' compensation for that reason. Wages in the personnel table are launch rates; 3% pay raises are charged as a separate line from Year 2. Stylists earn a $48,000 base plus a commission of 2.5% of gown order value. The commission line applies the rate to all orders, including those Claire writes, as a cautious figure.
- Rent is 1,900 square feet in northwest Portland at about $38 a square foot a year, all in, which is $72,200 in Year 1 and rises 3% a year. The lease runs five years with one five-year renewal option, the tenant builds out the space with no landlord allowance, and Claire guarantees it. The rate is a planning figure and no listing data supports it. The Year 1 start-up costs include three months of pre-opening rent. No security deposit is paid, because the guarantee replaces it. Card fees run at 2.6% of receipts, since most deposits and balances are paid by card or card-funded financing.
- The build-out is depreciated over five years to match the lease term, and the workroom equipment over five. Tax is charged at the 21% federal corporate rate plus 11.2% for Oregon and Portland: 6.6% Oregon excise on the first $1 million of taxable income, 2.6% Portland business license tax and 2.0% Multnomah County business income tax. These rates are as published in 2025 materials and may change, and the model applies none of the deductions, so confirm them with a tax adviser. The Year 1 loss is carried forward. An S corporation election would move this tax to the owners' returns.
- No distribution is paid until cash exceeds the balances the shop still owes designers on open orders. That test is met at the end of Year 3, so the first distribution, $30,000, is paid in Year 4, followed by $40,000 in Year 5.
Revenue by receipt type
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Gown deposits taken at order | $360,000 | $491,310 | $636,000 | $701,920 | $733,460 |
| Gown balances paid at pickup | $160,500 | $459,680 | $570,123 | $670,932 | $720,587 |
| Alterations | $59,180 | $188,982 | $233,390 | $276,444 | $297,357 |
| Veils and accessories | $15,408 | $44,706 | $55,426 | $65,270 | $70,063 |
| Sample-gown sales | $13,500 | $30,592 | $34,374 | $35,404 | $39,506 |
| Total revenue | $608,588 | $1,215,270 | $1,529,313 | $1,749,970 | $1,860,973 |
| Growth on prior year | – | 100% | 26% | 14% | 6% |
The revenue lines are receipts, not sales. Deposits are 59% of Year 1 revenue and 39% of Year 5; balances paid at pickup rise from 26% to 39%, and alterations from 10% to 16%. Alterations are the line a gown-only competitor cannot copy quickly: they depend on a skilled seamstress, and they bring the bride back to the shop for fittings. Accessories and sample sales together are between 4% and 6% of revenue in every year.
The opening year, month by month
| Month | Gown deposits taken at order | Gown balances paid at pickup | Alterations | Veils and accessories | Sample-gown sales | Total revenue | EBITDA |
|---|---|---|---|---|---|---|---|
| Jan 2027 | $18,000 | $0 | $0 | $0 | $0 | $18,000 | ($22,399) |
| Feb 2027 | $24,000 | $0 | $0 | $0 | $0 | $24,000 | ($19,119) |
| Mar 2027 | $30,000 | $0 | $0 | $0 | $0 | $30,000 | ($15,839) |
| Apr 2027 | $31,500 | $0 | $0 | $0 | $0 | $31,500 | ($15,019) |
| May 2027 | $30,000 | $5,400 | $1,102 | $518 | $0 | $37,020 | ($12,002) |
| Jun 2027 | $28,500 | $7,200 | $2,570 | $691 | $0 | $38,961 | ($10,941) |
| Jul 2027 | $28,500 | $9,000 | $3,305 | $864 | $0 | $41,669 | ($9,461) |
| Aug 2027 | $33,000 | $22,050 | $6,334 | $2,117 | $0 | $63,501 | $2,472 |
| Sep 2027 | $39,000 | $25,800 | $9,761 | $2,477 | $0 | $77,038 | $9,872 |
| Oct 2027 | $39,000 | $29,550 | $11,291 | $2,837 | $13,500 | $96,178 | $20,334 |
| Nov 2027 | $30,000 | $30,600 | $12,271 | $2,938 | $0 | $75,809 | $9,200 |
| Dec 2027 | $28,500 | $30,900 | $12,546 | $2,966 | $0 | $74,912 | $8,710 |
Deposits start in January, but nothing is picked up until May and most standard orders only come back from August. That gap drives the shape of the year. Operating profit before interest is negative from January to July, positive from August to December, and peaks at $20,334 in October, when the first large batch of balances, alterations and the fall sample sale land together. The lowest month-end cash in the table is in Aug, about $47,000, after allowing for the two days card payments take to settle. Paying designers a month ahead lowers that to about $32,700.
Stylists, seamstresses and support
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder, owner and lead stylist | $70,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Lead seamstress | $58,000 | Month 6 | 1 | 1 | 1 | 1 | 1 |
| Bridal stylist | $48,000 | Month 6 | 1 | 1 | 1 | 1 | 1 |
| Studio coordinator (part time, 25 hours a week) | $27,000 | Month 13 | – | 0.5 | 0.5 | 0.5 | 0.5 |
| Second seamstress | $52,000 | Month 17 | – | 1 | 1 | 1 | 1 |
| Second stylist (part time, 20 hours a week) | $27,000 | Month 13 | – | 0.5 | 0.5 | 0.5 | 0.5 |
| Alterations assistant (part time, 20 hours a week) | $24,000 | Month 40 | – | – | – | 0.5 | 0.5 |
| Studio manager (also styles 8 appointments a week) | $52,000 | Month 38 | – | – | – | 1 | 1 |
| Total payroll incl. on-costs | $167,428 | $329,647 | $351,660 | $432,897 | $445,300 |
Claire is the only stylist until month 6. The lead seamstress and the first full-time stylist both start in month 6, before the first large batch of standard-lead-time gowns arrives and after the first rush pickups in May. A part-time studio coordinator tracks designer orders and the deposit ledger from month 13, and a part-time second stylist starts the same month, as the second spring season arrives. A second seamstress starts in month 17, a studio manager who also styles about 8 appointments a week in month 38, and a part-time alterations assistant in month 40. Each hire follows a limit reached in appointments or bench hours. The $27,000 and $24,000 figures are part-time salaries. Claire's $70,000 is in the costs from month 1, so the profit lines are after her pay.
Profit and loss
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $608,588 | $1,215,270 | $1,529,313 | $1,749,970 | $1,860,973 |
| Direct costs (designer payments, freight, workroom supplies) | ($275,930) | ($550,995) | ($693,380) | ($793,425) | ($843,753) |
| Gross profit | $332,658 | $664,275 | $835,933 | $956,545 | $1,017,220 |
| Payroll incl. on-costs | ($167,428) | ($329,647) | ($351,660) | ($432,897) | ($445,300) |
| Rent | ($72,200) | ($74,400) | ($76,600) | ($78,900) | ($81,300) |
| Utilities | ($5,200) | ($5,400) | ($5,600) | ($5,800) | ($6,000) |
| Marketing | ($48,000) | ($56,000) | ($62,000) | ($66,000) | ($70,000) |
| Insurance | ($7,500) | ($8,300) | ($9,100) | ($9,700) | ($10,200) |
| Professional fees | ($8,000) | ($8,000) | ($8,500) | ($9,000) | ($9,500) |
| Software subscriptions | ($11,000) | ($12,500) | ($13,500) | ($14,500) | ($15,500) |
| Card processing and financing fees (about 2.6% of receipts) | ($15,823) | ($31,597) | ($39,762) | ($45,499) | ($48,385) |
| Stylist commission (2.5% of gown order value) | ($18,000) | ($24,566) | ($31,800) | ($35,096) | ($36,673) |
| Replacement sample gowns bought to restock the floor | ($14,700) | ($33,310) | ($37,429) | ($38,551) | ($43,017) |
| Market trips, trunk shows and designer appointments | ($8,000) | ($9,000) | ($9,500) | ($10,000) | ($10,500) |
| Garment care, bags, packaging and fitting-room supplies | ($3,500) | ($5,000) | ($5,800) | ($6,300) | ($6,600) |
| Phones, licenses and office supplies | ($4,500) | ($5,200) | ($5,800) | ($6,200) | ($6,600) |
| Cancellations, refunds and bad debt | ($3,000) | ($4,500) | ($5,200) | ($5,600) | ($5,900) |
| Equipment replacement and new-hire kit | $0 | ($3,000) | ($3,500) | ($6,000) | ($4,000) |
| Annual pay raises (3% a year) | $0 | ($9,889) | ($21,416) | ($40,141) | ($55,889) |
| EBITDA | ($54,193) | $43,966 | $148,766 | $146,361 | $161,856 |
| Depreciation | ($13,200) | ($13,200) | ($13,200) | ($13,200) | ($13,200) |
| Interest | ($12,457) | ($11,229) | ($9,651) | ($7,898) | ($5,953) |
| Income tax | $0 | $0 | ($19,581) | ($37,389) | ($42,594) |
| Net income before start-up costs | ($79,850) | $19,537 | $106,334 | $87,875 | $100,109 |
| Start-up costs expensed at opening (legal, licensing, launch marketing) | ($42,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($121,850) | $19,537 | $106,334 | $87,875 | $100,109 |
Year 1 loses $79,850 before start-up costs and $121,850 after them, and the loss comes from the seven months before pickups begin. Year 2 is the first profitable year on a cash basis, at $19,537; on an accrual basis it would be about $3,400, because the open order book grows. EBITDA margin is 9.7% in Year 3 and settles near 8.5% after, which fits a shop with direct costs of 45% of revenue and payroll of 24% to 28%. Income tax is nil in Year 2 because the Year 1 loss is carried forward. Oregon's Corporate Activity Tax applies to receipts over $1 million, which this shop passes in Year 2. It is left out of the model and comes to under about $5,000 a year before the subtractions the tax allows; confirm the figure with the Oregon Department of Revenue.
Cash movements and the deposit position
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($219,985) | $29,413 | $117,813 | $99,865 | $112,701 |
| Showroom build-out and workroom equipment | ($66,000) | $0 | $0 | $0 | $0 |
| Funding received | $380,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | ($6,618) | ($14,321) | ($15,900) | ($17,652) | ($19,597) |
| Owner distributions | $0 | $0 | $0 | ($30,000) | ($40,000) |
| Net change in cash | $87,397 | $15,091 | $101,914 | $52,214 | $53,104 |
| Closing cash | $87,397 | $102,488 | $204,402 | $256,615 | $309,719 |
Closing cash stays positive at every year end and rises each year. Year 1 operating cash is negative by $219,985 because it includes $108,000 spent on the sample floor and accessories. The balance sheet leaves out two items an accrual accountant would show: the deposits customers have paid on gowns not yet picked up, a deferred-deposit liability, and the deposits the shop has paid designers for those orders, which are prepaid. The memo table below shows both at each year end. The difference is cash the shop holds but has not yet earned. It is $101,745 at the end of Year 1, which is why the accrual loss is so much larger than the cash loss.
| Open orders at year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Orders paid for, not yet picked up | 133 | 150 | 187 | 200 | 202 |
| Customer deposits held (deferred-deposit liability) | $199,500 | $231,132 | $297,012 | $328,000 | $340,873 |
| Deposits already paid to designers (prepaid) | $97,755 | $113,255 | $145,536 | $160,720 | $167,028 |
| Net cash held for open orders | $101,745 | $117,877 | $151,476 | $167,280 | $173,845 |
| Equity on an accrual basis | $36,405 | $39,810 | $112,545 | $154,616 | $208,160 |
| Designer balances still to pay | $109,725 | $127,123 | $163,357 | $180,400 | $187,480 |
| Closing cash as a share of designer balances still to pay | 80% | 81% | 125% | 142% | 165% |
The shop sets one rule: distributions wait until cash is above the designer balances owed, which is met at the end of Year 3. In Years 1 and 2 cash is below the balances owed, and the gap is covered by the balances customers pay at pickup, which are larger than the designer payments they fund. If pickups stalled, the shop could not return every deposit from cash on hand. If one house closed or stopped shipping, the shop would move the order to another house at the same price or refund the bride in full. Customers' deposits on one house, at a quarter of the open book, would be about $50,000 at the end of Year 1, and the designer deposits paid to it, about $24,000, would be lost. The order contract states the deposit terms, and the shop pays each designer on the schedule that matches the order.
Balance sheet with the sample floor
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $87,397 | $102,488 | $204,402 | $256,615 | $309,719 |
| Accounts receivable | $3,335 | $6,659 | $8,380 | $9,589 | $10,197 |
| Inventory (sample gowns and accessories) | $108,000 | $108,000 | $108,000 | $108,000 | $108,000 |
| Showroom build-out and workroom equipment (net) | $52,800 | $39,600 | $26,400 | $13,200 | $0 |
| Total assets | $251,532 | $256,747 | $347,182 | $387,404 | $427,916 |
| Bank term loan | $113,382 | $99,060 | $83,160 | $65,509 | $45,911 |
| Paid-in capital | $260,000 | $260,000 | $260,000 | $260,000 | $260,000 |
| Retained earnings | ($121,850) | ($102,313) | $4,021 | $61,896 | $122,005 |
| Total liabilities and equity | $251,532 | $256,747 | $347,182 | $387,404 | $427,916 |
Margins, break-even and cover
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -8.9% | 3.6% | 9.7% | 8.4% | 8.7% |
| Net margin (before start-up costs) | -13.1% | 1.6% | 7.0% | 5.0% | 5.4% |
| Payroll incl. pay raises as share of revenue | 28% | 28% | 24% | 27% | 27% |
| Revenue per full-time equivalent at year end | $202,863 | $243,054 | $305,863 | $269,226 | $286,304 |
| Average monthly revenue | $50,716 | $101,273 | $127,443 | $145,831 | $155,081 |
| Monthly revenue needed to cover operating costs | $58,978 | $94,570 | $104,763 | $123,517 | $130,405 |
| Debt service cover (EBITDA / interest + principal) | -2.8x | 1.7x | 5.8x | 5.7x | 6.3x |
Year 1 averages $50,716 of revenue a month against $58,978 needed to cover operating costs, so it loses money. Year 2 averages $101,273 against $94,570. Debt service cover is negative in Year 1, 1.7x in Year 2 and between 5.7x and 6.3x from Year 3. Revenue per full-time equivalent is $202,863 in Year 1 and between $243,000 and $306,000 after, which is high for a shop because about half of every gown dollar passes through to the designer.
Appointments and orders 20% short
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $486,870 | $972,216 | $1,223,450 | $1,399,976 | $1,488,778 |
| Net income before start-up costs | ($118,896) | $4,872 | $32,330 | $89,185 | $66,080 |
| Net income after start-up costs | ($160,896) | $4,872 | $32,330 | $89,185 | $66,080 |
| Closing cash | $49,017 | $50,109 | $78,363 | $162,129 | $221,325 |
This case cuts appointments and orders by 20% in every year, which cuts every revenue line by 20%. Card fees, commission and sample restocking fall with sales. Marketing is held at the base budget, because a shortfall in appointments is the problem marketing has to fix. The response: hires from month 13 start six months later, the part-time second stylist and the studio manager are dropped, Claire takes a 20% pay cut and no distributions are paid. On those terms the shop ends every year with cash in the bank, at no less than $49,017, and is profitable from Year 2, though only by $4,872 that year. The lowest month-end cash in Year 1 is $34,951 in August, or about $22,800 in September if designers are paid a month before pickup. Equity ends Year 1 at $99,104 on the shop's cash basis. Year 3 profit of $32,330 is held down because payroll rises $70,558 as the delayed hires reach a full year. Year 4 jumps to $89,185 because payroll rises only $6,900 while gross profit rises about $97,000, so it shows the response working and does not forecast a better year.
Two other stresses, run on the base plan without any response, test the timing and the close rate. Lengthening the standard lead time from seven to nine months leaves cash positive at every year end, with the lowest month-end cash about $21,200 in September of Year 1 once designers are paid early, and cuts Year 2 net income before start-up costs to $5,189. Lowering the close rate by five points in every year, to 30%, 32%, 35%, 36% and 36%, takes net income before start-up costs to ($118,923), ($56,048), $36,413, $17,487 and $31,038 and closing cash below zero in Year 2 (($11,324)) and Year 5 (($13,072)). The shop would need the response above, or more capital, to survive a close rate that low.
Sources
Figures retrieved in 2026.
- Centers for Disease Control and Prevention, National Center for Health Statistics, Marriages in the U.S. in 2022 returned to pre-pandemic levels, March 2024.
- Oregon Legislative Revenue Office, Oregon tax structure document, 2025 regular session: corporate excise rates of 6.6% and 7.6% and the Corporate Activity Tax, as of that 2025 document. Confirm current figures with the Oregon Department of Revenue.
- City of Portland Revenue Division, Business tax and 2025 return forms: Business License Tax at 2.6% and Multnomah County Business Income Tax at 2%, as of the 2025 forms.
- Gown prices, wages, rent, lead times, designer terms, close rates and alterations fees are planning figures for this example. No published Portland source was used for them.
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