April 2, 2007
Sole proprietor | A chat with Shane McGarvey, who co-founded Cream Apparel in Portland with his wife, Michelle.
Founded: July 2006
Employees: McGarvey, Michelle, who works part-time, and one other part-time worker
Startup costs: $60,000
Projected revenue, year one: $150,000
Projected revenue, year two: $200,000
Contact: 699-2940
87 Market St., Portland 04101
www.creamapparel.com
What do you sell here?
Limited edition sneakers are my primary focus. Because I'm a boutique, I have accounts with the major shoe companies to get boutique sneakers. The companies make separate lines of shoes for chain stores and for small, single-store boutiques ˆ more exclusive stuff, higher-end.
What's the appeal of a high-end sneaker?
Limited numbers. I bring in stuff in small quantities, so that if you buy it, you're not going to see everybody in town wearing it. I do the same thing with my apparel. I buy apparel from small companies that don't sell in the mall.
How do you find the clothing that you want to carry?
A lot of it is looking at stores that I like. That's how I started this business. I was looking at stores that I liked in Manhattan and Boston, L.A., San Francisco, and based my store on those stores.
What did you like in those stores?
Stuff that you can't get in Maine. I've lived here for seven years now and I found myself going to New York to buy shoes because the malls here weren't providing me with anything hot that I wanted to wear. And I realized, talking to people, that there's a demand for that here.
It takes a big commitment. To do a boutique, the larger companies will do store inspections. That is how they base whether they're going to give you an account. Your store has to have the right look ˆ the music, the DJs in the store, the artwork, the cleanliness.
How do you keep stuff exclusive but also meet demand?
I'm still learning how to do that, for sure. I try to get small amounts of stuff from a lot of companies. I rarely get more than three or four pieces from a label. It's hard to keep it exclusive in this city. These high school kids, they race to be the first kid to buy the stuff and that's why they're here every day.
How many pairs of shoes do you sell per day?
Per day, on a good day ˆ or an average, decent day, not in February ˆ six to 10 pairs.
How did you learn about running a business?
I've been raised in an entrepreneurial, retail family. My father ran a store, a video store and another store while I was growing up, my mother's always run a store, so we were raised around a retail environment. I got informal training.
What did you do before you opened the store?
I was a designer. Print design, Web design, video game design, logo work. All kinds of different things.
How did you get startup funding?
I incorporated and sold shares to several investors. I drew up terms, and then after a certain amount of time, they can stay with the business or they can get paid off. The legal fees were a huge, huge part of my startup costs. I wanted to do it right, to make sure everyone's personal assets were safe. I've started smaller business ventures in the past with friends and if you're not clear in writing in advance, it can ruin friendships.
How do you market the business?
My advertising budget is pretty much nonexistent. So what I do instead is get involved in sponsoring and throwing parties. I think it's a good way to get my name out because it associates me with a good time. That's more work on my end, but it doesn't cost me a lot, other than flyers and posters.
Do you usually initiate these parties?
Yeah. I'm trying to build the scene. It's also something I love to do. Getting out there and meeting people. The customer base in this town is very loyal, so they get to know you. These high school kids, they come here every Friday and spend most of their paycheck every Friday. As soon as school gets out, they're sitting on my couch, reading magazines and hanging out. And I love that, to have die-hard customers that won't shop in a mall because I'm here.
New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to kelson@mainebiz.biz.
Employees: McGarvey, Michelle, who works part-time, and one other part-time worker
Startup costs: $60,000
Projected revenue, year one: $150,000
Projected revenue, year two: $200,000
Contact: 699-2940
87 Market St., Portland 04101
www.creamapparel.com
What do you sell here?
Limited edition sneakers are my primary focus. Because I'm a boutique, I have accounts with the major shoe companies to get boutique sneakers. The companies make separate lines of shoes for chain stores and for small, single-store boutiques ˆ more exclusive stuff, higher-end.
What's the appeal of a high-end sneaker?
Limited numbers. I bring in stuff in small quantities, so that if you buy it, you're not going to see everybody in town wearing it. I do the same thing with my apparel. I buy apparel from small companies that don't sell in the mall.
How do you find the clothing that you want to carry?
A lot of it is looking at stores that I like. That's how I started this business. I was looking at stores that I liked in Manhattan and Boston, L.A., San Francisco, and based my store on those stores.
What did you like in those stores?
Stuff that you can't get in Maine. I've lived here for seven years now and I found myself going to New York to buy shoes because the malls here weren't providing me with anything hot that I wanted to wear. And I realized, talking to people, that there's a demand for that here.
It takes a big commitment. To do a boutique, the larger companies will do store inspections. That is how they base whether they're going to give you an account. Your store has to have the right look ˆ the music, the DJs in the store, the artwork, the cleanliness.
How do you keep stuff exclusive but also meet demand?
I'm still learning how to do that, for sure. I try to get small amounts of stuff from a lot of companies. I rarely get more than three or four pieces from a label. It's hard to keep it exclusive in this city. These high school kids, they race to be the first kid to buy the stuff and that's why they're here every day.
How many pairs of shoes do you sell per day?
Per day, on a good day ˆ or an average, decent day, not in February ˆ six to 10 pairs.
How did you learn about running a business?
I've been raised in an entrepreneurial, retail family. My father ran a store, a video store and another store while I was growing up, my mother's always run a store, so we were raised around a retail environment. I got informal training.
What did you do before you opened the store?
I was a designer. Print design, Web design, video game design, logo work. All kinds of different things.
How did you get startup funding?
I incorporated and sold shares to several investors. I drew up terms, and then after a certain amount of time, they can stay with the business or they can get paid off. The legal fees were a huge, huge part of my startup costs. I wanted to do it right, to make sure everyone's personal assets were safe. I've started smaller business ventures in the past with friends and if you're not clear in writing in advance, it can ruin friendships.
How do you market the business?
My advertising budget is pretty much nonexistent. So what I do instead is get involved in sponsoring and throwing parties. I think it's a good way to get my name out because it associates me with a good time. That's more work on my end, but it doesn't cost me a lot, other than flyers and posters.
Do you usually initiate these parties?
Yeah. I'm trying to build the scene. It's also something I love to do. Getting out there and meeting people. The customer base in this town is very loyal, so they get to know you. These high school kids, they come here every Friday and spend most of their paycheck every Friday. As soon as school gets out, they're sitting on my couch, reading magazines and hanging out. And I love that, to have die-hard customers that won't shop in a mall because I'm here.
New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to kelson@mainebiz.biz.
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