After years of searching for, and then developing a passion for, secondhand clothing for her children and herself, Stephanie Patzer decided it was time to leave her position as a pharmaceutical salesperson and open her own secondhand clothing store. She encountered major barriers to starting her business, including needing help with financing, store location, creating a business plan, and dealing with the overwhelming costs to hire an attorney and an accountant. Stephanie turned to the Iowa Western Small Business Development Center (SBDC) in Council Bluffs for help.
Stephanie attended an Iowa Western SBDC Smart Start class in November 2008 that was offered in Glenwood. The class gave her a good foundation on which to begin, and she put together a rough business plan and compiled start-up and operating cost estimates. With this information she met one-on-one with SBDC Counselor Rex Hardie. In that initial meeting Rex reviewed her business plan and discussed financing options, business location, building renovations, a POS system, debit/credit card processing, financial records, the potential for a low-interest woman-owned business loan from the State of Iowa, and resources that could help her with the legal and accounting aspects of her business. Rex also referred Stephanie to The Creighton University School of Law’s Community Economic Development Law Clinic; she used their no-cost services to create her Limited Liability Company (LLC) and set up her accounting system.
During the months that followed Stephanie and Rex met periodically to complete a sound business plan with projections that made sense. Stephanie secured a very desirable location for her business on the town square in Glenwood, Iowa. Everything was in place except for the needed $20,000 in financing, which she obtained from Glenwood State Bank.
Second Helpings Boutique had its soft opening on August 18, 2009 and its grand opening on August 27-29, 2009. The store sells high end, pre-loved clothing at a low cost, which is primarily children’s clothing and shoes for ages 0–12 years. Maternity clothing is also available upon request and the store includes a board for customers to post the need for, or desire to sell, strollers, cribs, etc. There is also a book trading area where children can bring in their books and trade them for different ones to take home. The store’s inventory comes from the purchase of gently used items from area residents. People bring used clothing to the store and are given 30% of what the retail price will be. They are paid immediately or, if Stephanie needs more time to examine the clothes, she will mail them a check.
The store also launched a blog/website (www.secondhelpingsboutique.blogspot.com) and uses it to communicate to new and returning customers, sharing its inventory purchase guidelines and promoting community events.
On September 30, 2009 the Council Bluffs newspaper, The Daily Nonpareil, featured a full page article about Second Helpings Boutique in its “Focus on Our Communities” section. There was also a mention of the store on the banner of the front page. Several pictures of the store were included in the newspaper article. The store was also featured in the Glenwood Chamber of Commerce’s membership newsletter at approximately the same time.
Sales for 2009 were over $9,000 and were nearly $31,000 in 2010; both were better than initially projected. Stephanie is very appreciative of the assistance she received from the Small Business Development Center and continues to work with Rex to further develop her marketing and business development efforts.
Stephanie says, “The Iowa Western Small Business Development Center provided the information that I needed to take my entrepreneurial dream to the next level. Without their guidance, I would never have had the resources necessary to start my business. They continue to follow up even a year and a half later, which is not necessary, but is extremely appreciated.”