Jessica nods, her red hair falling softly over her shoulder. “Well, you have a point there.”
Sean clears his throat and continues, “What I have envisioned for the Beauty Boutique is a four-pronged approach that will required a two million dollar minimum capitalization within the next ninety days. It will also require establishing a production facility outside the United States, and I have identified a possible site in Brazil. It will require some innovative benefits, and it will require allowing your designs to be sold outside of your privately owned boutiques at a slightly higher pricing premium than what can be expected in your facilities.” Sean notices Jessica becoming uneasy as she fidgets with her pen, so he pauses for a moment, compelling her to make eye contact, then says, “This outside distribution will be limited in both time and scope. The intent is to get the deeper market penetration via a much broader distribution channel with the strategic focus of replacing this distribution method with corporate-owned facilities after a primary market is established. So let me get a pulse check before I continue. Do you currently have two million dollars in liquidity you can access within ninety days?”
Jessica replies, “Not personally, but I believe I can get it in that time frame.”
Sean inclines his head, slightly surprised. “Very well then, let’s continue.”
Jessica interrupts. “Wait, why Brazil?”
“Well, there are several reasons. First, the government is actively soliciting U.S. companies to consider expanding into Brazil. It’s an emerging market with a desire, even a hunger, for products manufactured locally. Second, the labor force is better skilled than other emerging countries, and politically, the corruption is minimal in comparison to other Latin America governments. And third, Nike recently abandoned what appears to me to be a fairly well-equipped clothing facility forty-five minutes south of Mark and Bonnie’s villa. I would like to fly you to Brazil so you can tour the facility with me in two weeks at no cost to you. Mark has already offered us his villa while we are there. If the facility is a possible option, we can develop this strategy much further. If it isn’t, we will have to put our heads together and develop another one. Jessica, this is in no way a commitment on either of our parts to continue beyond the initial investigative phase, but in order for my first draft proposal to work, this factory must be a fit for your company. Since I know nothing about clothing manufacturing, I would like you to educate me, at least a little bit.”
Jessica says, “I’m not sure about the size of the expansion you’re proposing. What about my employees? I can’t relocate them.”
“Understood. I am not proposing you relocate all your employees. I see the initial production being completed in Brazil, then shipped to your facility here for quality control and finishing touches before distribution. Once you have the staff and management trained in Brazil, then, and only then, can orders be shipped directly to the markets.”
Jessica nods slowly, taking in Sean’s ideas. “You mentioned earlier distribution being outside of my own outlets. What did you have in mind?”
“I would like to see you partner with a footwear manufacturer or designer only to share retail space, then cross-train employees, yours and theirs, to sell each other’s line of products on a commission basis. In other words, you each pay your own employees as normal, but when one of your employees sell shoes with an outfit, they will receive a commission on the shoe sale and vice versa. It gives the employees of both designers incentive to cross-sell and match outfits under one roof. Then their customers can match outfits with shoe purchases, and your customers can purchase matching shoes for their clothing purchase,” Sean answers, pleased with his idea.
Jessica raises a single eyebrow and says, “I see where this type of arrangement might work. I’m just not sure it is the way I want to market my designs.”
“Well, we are just brainstorming right now, so please just keep an open mind. Don’t feel the need to accept or reject any suggestion at this point, as there will be plenty of time to study the merits and pitfalls of everything we have discussed here today. There are significant pros and cons to everything that needs to be considered. On that note, are you able to clear your calendar for a weekend to fly to Brazil, say, two weeks from now?”
“Yes, I can, but it’s a huge step to even consider this type of expansion…” Jess replies, sounding a little unsure and clicking her pen again.
“I know it is. But you told me you wanted to dominate the professional women’s clothing market, and I’m a firm believer that any type of domination requires significant risk and vision. Are you and Beauty Boutique Clothing ready for this type of bold move and strategy?” He pauses and gives her a quizzical look, then holds up a hand. “Don’t answer. Just ponder it, and if you decide it’s not for you, call me in a day or two and we’ll cancel our trip to Brazil. Otherwise, I’ll pick you up two weeks from Thursday at 8:00 p.m., and we’ll fly to Brazil. We will start work as soon as we land and clear customs. Fair enough?”
Jessica agrees, thanking Sean for his time and energy, and leaves his office. Her head is reeling from all the possibilities, and she decides she needs to talk to Nate, and then Bonnie.
CHAPTER 9
BUSINESS OR PLEASURE?
When Jessica arrives back at her office, everyone has left except Nate. He is waiting, not so patiently, for a blow-by-blow description of how Jessica’s meeting with Sean went. He has just started tapping his foot when she breezes through the door. She looks determined and happy at the same time, and as they make eye contact she says, “We have so much to discuss, but right now, I need to pee, and you need to make us both some very strong coffee. Call Phillip. Let him know it’s going to be a long evening for both of us. I’ll make it up to him by giving you another holiday soon.”
She turns in the direction of the restroom as Nate begins to smile, then says, “Honey, don’t worry about Phillip. He’s working late himself and totally understands what’s going on in our world right now.” She flashes him a grin over her shoulder, and he heads to the kitchen.
Jess is sitting at the conference room table with preliminary design improvements scattered all around in front of her when Nate comes in with the coffee and sits down daintily.
She looks up at him and reaches for her coffee. “All I can say is wow. Sean was a complete gentleman, he apologized for being an asshole, and he actually thanked me for the gifts I sent. He planned to take the time to have a proper meeting today, had lunch catered, and served the merlot I gave him, which I thought was a very classy touch, by the way. He asked seriously about what I expect for Beauty Boutique Clothing in the near future and we had a great discussion of where to go from here. He works at a pace that would send anyone’s head spinning. I found myself wondering what he was up to today… He had personally done an enormous amount of research into my industry and the outcomes look pretty favorable. He doesn’t like the idea of expanding into the Soviet Union, but he looked at a factory in Brazil that he wants me to go check out in two weeks to see if it would meet our needs. He’s talking a big expansion, Nate. I’m going to need two million dollars of capitalization to fund it, within ninety days. I told him I can raise the funds in that time frame.”
Jess pauses to take a breath, and Nate interrupts. “How in the hell do you plan to get that much money?”
She gives him a sly smile and says, “I haven’t a fucking clue at this point.”
Nate giggles. “Nice bluff. Did he believe you?”
She shrugs, tossing her hair over her shoulder and leaning back in her chair. “I don’t think it mattered much to him at that moment.”
“Well, are you going to Brazil? How much do we need to set aside for the trip?”
“Yes, I’m going, and nothing.” Jessica smiles and shakes her head, still amazed. “Sean is flying us down on his corporate jet at no expense to me, and we will be staying at Mark and Bonnie’s villa. Apparently, the factory is a forty-five minute drive from there.”
“And what if
the factory won’t work for us? Then what?”
Jessica sighs. “Well, Sean said we would have to regroup and devise a different strategy for any possible expansion.”
“So he has decided to take us on as a client then,” he pauses, realizing a change, and gives Jessica a knowing look. “And I can’t help but notice that it’s Sean now, and not Mr. Green. What’s up with that, sister?”
She waves her hand, brushing off the innuendo. “It’s not like that at all. Sean explained that he loathes formalities and will only work with his clients on a first-name basis, that’s all. He thinks it helps build trust and rapport.”
“Oh. Well, then it has to be Sean. I see.” He resists the urge to giggle again.
She rolls her eyes. “Wipe that cat-swallowed-the-canary look right off your face. This is strictly going to be a business relationship, nothing more! He wants me to have three or four seasons of designs ready by the time we undertake any type of expansion. Finally, we have an understanding that neither of us has made any type of commitment to solidify a working relationship. We’re each just exploring options at this point in time.” She pauses, gazing at a sketch and gracefully corrects a line, then looks up at Nate. “So what are your thoughts?”
“I believe you have a lot to think about and a lot of work to do just to keep Sean interested in pursuing expansion options with us. I also believe he has done his research and has concluded there is money to be made for both Beauty Boutique Clothing and SGM. If you pursue expansion plans with Sean, you will be stretched beyond anything you have ever experienced before and at an operational tempo you haven’t even imagined. Sean could be a great mentor, or he could be a vicious colleague. He obviously has great expectations for you and believes you have the ability to perform at the level of his expectations, or he wouldn’t invest his time or resources getting you to Brazil. Do you know what his expectations, especially financially, from the Beauty Boutique are? What are we going to end up paying for SGM representation during this expansion?”
“Well, that’s what has me concerned. When I tried to cover that subject, he blew it off and told me there will be time later to discuss such mundane topics. First, he wants to see if the factory in Brazil will ever work. He said if it does, we will go into much greater detail about finances.”
Nate cocks a dark eyebrow at her. “Well, darling, I suspect you should be prepared for a bill somewhere in the million dollar range for SGM’s representation.”
Jessica sighs. “Shit. You know we don’t have that kind of money. For the expansion maybe, but not for both…”
Nate nods practically. “Then I suggest you tell Sean fairly soon and see if he is interested in working out some type of arrangement. Because at this point, I see an expansion costing in the neighborhood of three million dollars and our gross receipts are currently sitting at one million, eight hundred, thirty-one thousand dollars and twenty-two cents.”
She cringes at the comparison of numbers, hugging her coffee mug closer. “I know, but couldn’t we assume a significant increase in revenue will accompany this type of expansion?” she asks, fishing hopefully for a good answer.
He shrugs. “Probably. But in what time frame, and will it be enough to make up the difference?”
“I just don’t know right now…” she says, plopping her cheek into one hand.
“Jess, I think it’s wonderful that SGM has gone this far with us, and God knows we need this expansion desperately. But before we get caught up in the possibilities of what could be, let’s bring our situation back down to earth and have a very frank discussion with Sean about our financial position. You have done a magnificent job with this company, but now that we are seriously talking about entering into the international realm of fashion design, we will be playing in the big leagues against the big names. I just want us to approach everything realistically, honestly, and cautiously so Beauty Boutique Clothing doesn’t become another statistic of promising fashion companies that expanded too rapidly and are no longer in existence.”
“So what are you suggesting?” she asks, looking slightly deflated.
“Well, what I’m saying is, let’s proceed full steam ahead but with due caution and circumspection, that’s all. This is an enormous step—the payoffs could be outrageous, and the pitfalls could be devastating. You’re a very intelligent businesswoman, so let’s continue to check and double-check the risks versus rewards ratio and make sure we can handle both appropriately for the sake of everyone involved in this expansion. You have a great team assembled. We all love you because you have always considered the impact that every decision you have made could have on everyone on the team. Let’s never lose sight of that quality of leadership.”
“Of course not. Without each of you, I wouldn’t be where I am today. I want to make sure, if we do expand, that everyone feels and receives the benefit of our increased profitability.”
“We all know you will do the right thing, and we all have confidence in you and the Beauty Boutique’s future. Everyone here is rooting for you. So go to Brazil with Sean, check out his plan and the facility, and we can regroup after you have a better idea of everything involved with such a bold move. In the meantime, I just need you to start finalizing this season’s fashions, then focus on finalizing the next three seasons, per Sean’s suggestion. Even if you decide not to expand, having those designs finalized that far in advance could never be a bad thing.”
Jessica smiles. “You’re right, as usual. Tomorrow let’s call a meeting with the design team and develop a scheduled time frame to make sure the new designs are accomplished in the next sixty days. We have a huge start in that direction already. I think sixty days is plenty of time to accomplish that goal without stressing everyone to the max. Do you agree?”
Nate nods. “Definitely. Now go home and get some rest. It sounds like the next couple of months are going to be brutal for us both.”
Jessica arrives home later than usual, thinks about going for a run, and decides against it. Instead, she plans to draw a hot bath, light some candles, and read a good murder mystery. As she is heading to the bathroom, her cellphone rings. She looks at the caller ID with every intention of ignoring it until she sees it is Bonnie. From much experience, she knows if she doesn’t answer, Bonnie will keep calling her until she picks up. With a huge sigh, she answers the phone. “What’s up, girl?”
Bonnie launches right in. “Did you meet with Sean today? Was he a dick to you like before?” Jess smiles to herself, “Yes, I did, and no, he wasn’t.”
She hears Bonnie gasp over the line. “Why did you leave a sister hanging all day long? I have been dying to hear all about it.”
Jess’s smile turns rueful as she watches her dreams of a bath dissipate. “I didn’t leave you hanging. I was just walking in the door when you called me.”
“Tell me all about it.”
With a huff, Jess plops into her favorite armchair and kicks her feet over the side. “Okay. I was actually pleasantly surprised. Sean was a complete gentleman. He was thoughtful in his approach and even apologized for being an ass. He has done a lot of research and wants me to go to Brazil with him in a couple of weeks. He said we would be staying at your villa, is that okay?”
“Of course it is, sweetie, even if I didn’t know anything about it.” Bonnie chuckles. “Is this trip for business or pleasure, my dear?”
Jessica snorts, picturing Bonnie wiggling her eyebrows. “It’s all business. He wants me to tour a factory south of your villa to see if it could be converted for the use of Beauty Boutique Clothing.”
“Oh, do you mean the old Nike factory?”
“That’s the one,”
“It’s a fabulous facility. You’ll love it. How did Sean find out about it?”
“Apparently when he was down there last month, he toured the factory with the Beauty Boutique in mind, and he has a preliminary strategy for our expansion if the facility works for us.” Jess finds herself smiling again and makes a face.
; “Honey, that’s amazing. So SGM is going to represent you?”
Jessica sighs again. “Not so fast, girl. All of our discussions are preliminary right now. Besides, I’m not sure I can afford SGM.”
“If Sean’s gone to that extent for preliminary discussions, he has something in mind, and he sees real potential in you and Beauty Boutique Clothing. Otherwise, he would have never gone to that extreme. I would bet you a million bucks that Sean smells money, and a lot of it, or he wouldn’t be going back with you, even on a preliminary basis. Unless, of course, he intends to fuck you at the villa.”
Jessica gasps. “Bonnie!”
“Well, why not? You’re a beautiful, sexy woman, and if I were male, I’d want my dick inside you.”
Jess shakes her head, chuckling a little. “You’re disgusting. Do you really think he would be plotting something like that?” she asks, a hint of concern tingeing her voice.
Bonnie chuckles. “You’d think you’d be used to me by now. And no, I have never known Sean to mix business and money with carnal pleasures. I’m just screwing around with you. The fact of the matter is that Sean probably sees an opportunity to make lots of cash, and that’s why he has done so much work before getting you signed as a client. He is also probably fully aware of where you stand financially, so he has something in mind there too, that he hasn’t revealed to anyone yet. But mark my words; he is interested in representing you. So when are you leaving for Brazil?”
“Two weeks from Thursday. Sean is picking me up at 8:00 p.m.”
“Very nice. Just remember, it’s a ten-and-a-half-hour flight in Sean’s jet, and there’s the time difference. Brazil is four hours ahead of us, so if you’re in the air by 9:00 p.m., you’ll arrive at 7:30 a.m. our time, and it will be almost noon in Brazil. You’ll need to sleep on the plane, and keep your toothbrush with you so you won’t have morning breath when you arrive.”
Uncontrolled Spin: The Power and Danger of Spin ( Un missable Series Book 1) Page 7