Stella Shirman, founder of Estell Boutique in LA
Stella Shirman was born in Ukraine, grew up in Columbus, Ohio and relocated to Los Angeles in 2008 with a dream to work in the fashion industry.
“I always had a good eye for style and helped my friends dress appropriately for their body types,” she told Timely Visit. “I always had a passion for fashion.”
But despite her strong ambitions of becoming a fashion designer, Stella’s parents insisted that she get a business degree first. Then and only then could she do whatever she wanted to.
She ended up with two business degrees a BSBA in Marketing and an MBA.
However, once Stella was done with school, she unfortunately didn't have much luck finding her dream job in fashion in Columbus, Ohio and ended up having to settle for work in other industries but was never truly satisfied with what she was doing.
“I wasn't happy professionally. I was an entrepreneur in heart,” she shared.
Literally waking to entrepreneurship
Then one day, in the middle of the night, Stella woke up and told her husband that she really wanted to open her own boutique and import merchandise from Europe. Fortunately, he was very supportive and even gave her suggestions on where to source products for her business.
So with an MBA and an opportunity to pursue a great 9-5 career right in front of her, Stella abandoned the corporate world and decided to chase her dream as an entrepreneur.
She did her research on the location and found Montana Ave in Santa Monica to be the most appropriate location for her boutique. Meanwhile, she also put together a business plan and managed to secure a few loans through SBA.
With a limited budget and experience in the field, Stella was able to open a store in one of the most prestigious locations in Los Angeles, build her clientele, establish proper supplier channels from Europe and build her business which she started in 2009, during the economic recession.
“It was a miracle that I pulled it off,”
she said.
“I survived because I believed in myself and my product. Also, failing was not option!”
Estell Boutique has been in business for four and a half years now.
What gap in the market is Estell Boutique filling?
Stella was always inspired by European fashion and dreamt of bringing it to the American market. She found amazing designers and wholesale companies in Europe at a good price, imported the product to the US and delivered unique, quality merchandise at a reasonable price.
“Most of my competitors are priced much higher or don't have the same quality as my merchandise,” she told Timely Visit. “Since most of my competitors shop from LA's California Market Center, their styles and merchandise is very similar to each other. However, my fashions are very different and ahead of American style in most cases.”
Furthermore, Stella provides more than just clothes – she offers a consulting service to her customers along with her merchandise, helping them dress for their body type and put together a wardrobe appropriate for the season.
She revealed that back in the day when she was just a little girl in Ukraine, she managed to teach herself how to sew clothing for her dolls.
“When I got my first Barbie from the US, I was so inspired to make the entire wardrobe for the doll,” she shared. “Today, I carry on my tradition, but dress real life women every day.”
Stella further revealed that many of her customers feel comfortable stopping by her boutique for fashion advice or for general advice about their wardrobes – she often helps them solve problems with matching certain items.
“Most of my customers shop from me not only because they like my clothing, but also because they trust my taste,” Stella said. “Building a strong customer relationship is a key in the retail business. People shop from people they like. It's a fact.”
What challenges has Stella faced?
The first challenge Stella faced was understanding her customers’ needs and taste.
“I recognized my customers like to dress comfortably, simple, but with a style. They don't like bright colors or crazy sequences. I also found a niche with a plus size customer and now offer a small collection for plus size ladies,” she said.
She also had to find the right suppliers. In the beginning, she worked with many companies but eventually learned which brands work best for her market. She started to consolidate her suppliers and work with fewer companies.
“For example, I discovered a supplier that has the best fitting pants for women size 2-16. The pants are modern, with a nice waste line and stretch.”
Stella also faced the challenge of high rent.
“My location is great, but the rent is very high,” she remarked.
Stella got around this by partnering with another business, Pure Sense by Paula and subleasing a portion of her space. Pure Sense by Paula specializes in great natural home, body and bath products. Paula, the founder, was facing the same challenge of high rent just like Stella, so they decided to join efforts and share space.
This arrangement has turned out to be perfectly symbiotic and is working out great for both of them - their products complement one another so they are able to drive more traffic to one location.
Estell Boutique has been growing by 15 to 20 per cent yearly in sales since inception and now, Stella dreams of expanding it into new neighborhoods and growing it into a chain. She disclosed to Timely Visit that their next location will be in Orange County (Laguna Beach).
Stella has three brief lessons to share with those aspiring to pursue entrepreneurship like her.
- Know your numbers and make sure you don't run out of cash. It is important to understand your cash flow in any business and have available credit because you will need it.
- Believe in yourself and your product or service. If you don't, your clients won’t either.
- Understand your market.