Fashion Business Plan Example – Clothes Business Plan

The founder is an experienced Fashioner herself and understands the

particular needs of female fellow Fashioners. She also has conducted a

survey of more than 130 women associated with Fashion

clubs/associations. She has worked as an art director for eight years

and has leadership experience, though not very much fashion design

experience yet.

The business plan also provides a brief overview of the market

situation, the location (1 Dougan Street) and competition as well as a

risk analysis. The business risk will be mitigated by the initially limited

product range (i.e. cloths, bags). It also gives information regarding

potential business partners, the marketing plan, venue organization and

financing.
 Table of Contents

Overview of this clothes/fashion business plan

Executive Summary

Products

Operational Procedures

Unique Selling Propositions

Company Vision and Strategy

Market Analysis

Competition

Target Group

Risk Analysis

SWOT Analysis

Location of Headquarters

Business Partners

Consulting

Marketing Plan

Price Strategy
Communication Strategy

Business Organization

The Founder and Director

Staff

FINANCIAL PLAN
Executive Summary

Annkay Enterprise and General Supplies is a start-up company that will

sell self-designed bags and clothing for female Fashioners, for women

to look stylish on their looks and off. The company will start off with a

collection of clothing and bags and will expand its product portfolio

successively to eventually become a well-known brand for Fashion

clothing for fashion-conscious women. Annkay Enterprise and General

Supplies will make it possible for women to pagent and be protected

without having to change their clothing, no matter where their

destination may be.

The company’s founder, Mrs. Ann-Marie Kamara, is a Fashioner herself

and currently doing her Master’s in Business Administration. She has

found that the current Fashion apparel market is missing the niche of

fashionable Fashion clothing. Most companies designing women’s

Fashion wear are focused on the traditional full covering looks, with

very few companies offering a tailored and professional style. Since

Mrs. Ann-Marie Kamara has little experience in the fashion-design

industry, she believes that by first launching the business with well-

designed cloth & bags comes with less risk and greater chance for

sustainable, successful market-entry.

Annkay Enterprise and General Supplies will develop its brand with a

clear goal in mind. It will create a uniform user experience and deploy a

great variety of modern internet-based marketing instruments. Close

cooperation with highly successful professional photographers that

Mrs. Ann-Marie Kamara knows personally will give the marketing

approach an edge offline and online and greatly impact the

presentation of the company to potential clients and partners. The

products will be messengers of the brand and proudly show off tough

Fashion girls’ sexyness and feminity. The accessories and later the

clothing will be cool and elegant, making a statement to be summarized

as follows: I live and think independently and I am a passionate, self-

conscious woman.
Annkay Enterprise and General Suppliesis established by Mrs Ann-

Marie Kamara. Mrs. Kamara is an experienced entrepreneur and has

worked as an art director for over 8 years. She has already designed

dozens of looks and as a designer will be able to create many marketing

resources herself and strike up business relationships in the creative

industry. She has experience in leadership and has conducted extensive

marketing research including an empirical internet survey of over 130

women, which she found by reaching out to Fashion associations and

clubs. She also already stands in contact with various potential clients,

business helpers and partners. Annkay Enterprise and General

Supplies’s home office will be located at 1 Dougan Street, Off Dillet

Street, Freetown. While the initial goal is to sell to retail stores,

expansion plans include potentially opening its own retail store.

The market research shows evidence that Annkay Enterprise and

General Supplies will operate in a very favorable environment. This

fact, combined with Mrs. Kamara very strong competence profile make

the business venture very likely to lead to a successful market entry.

Products

The company’s product portfolio is aimed at providing female

Fashioners stylish options of bags and clothing to buy and wear. As the

number of educated women who buy and wear Fashions increases, it

becomes clear that there is a market niche for providers that cater to

the woman who wants to ride her bike in high fashion- whether she is

riding to a party, to work or to a date.

The first 12-18 months of operation will be dedicated to starting a line

of bags, as this is a good way to gather experience, contacts and a

first following of consumers. The costs for starting a bag collection

are significantly lower and there is high demand in the market. The

types of bags Mrs. Annkay Enterprise and General SuppliesFOUNDER

thought of are medium-sized should-bags and sports bags as well as

hand bags and purses. They will be crafted in styles that appeal to

Fashion-enthusiastic women and will combine functionality and

robustness with clean, aesthetic design. The fabric will be mainly high-

tech artificial fabrics which are cut and rip-proof and can last for
decades. A certain proportion of the products or certain parts of some

products will also be made of leather.

Since designing apparel is the mid-term goal of the young enterprise, it

makes sense to elaborate the planned product portfolio already at this

point. Annkay Enterprise and General Supplieswill give special attention

to the styles, colors and fits to flatter the curvy woman. The niche

specialty will be fitting women sizes 6-14, although some clothing will

range in sizes 0-14. The products are modern Fashion wears, including

apparels, boots, helmets, bags and Fashion inspired accessories, such as

scarves. Since Annkay Enterprise and General Suppliescreates clothing

that people can wear on and off the bike, the clothes have removable

and/or very flexible padding. When designing the clothing, Mrs. Annkay

Enterprise and General SuppliesFOUNDER focuses on designs that are

able to unify function and beauty. All Jackets and any gear that is

meant to protect from abrasion and impact while riding a Fashion will

be tested and CE certified.

The goal is to create pieces that are exactly what an urban,

individualistic woman is looking for, something that she would wear even

if she is not going to ride a Fashion. Therefore the clothing has to be

serving two needs at the same time, just like for example Nautica that

caters to the needs of marine sports enthusiasts but has developed

such a cult that its clothing is worn in daily life (also Surface to Air

produces beautifully crafted riding jacket that might serve as an

inspiration for [fashion business plan example] COMPANY:

www.surfacetoair.com/store-us/?

pg=style&collection_id=52&style_id=58).

One very special element of the product portfolio is the inclusion of a

new material compound called D30 (www.youtube.com/watch?

v=vqDe0C4OKbM&feature=related). D30 is a lightweight and very

flexible high density plastic material that can be used for padding and

provides a lot of safety despite its being thin and lightweight. The

initial communication with the manufacturer that came up with this new

material has not yet had a positive outcome. Using this particular
material is still considered an important element of the product

portfolio of [fashion business plan example] COMPANY.

Operational Procedures

[fashion business plan example] COMPANY’s studio and office is

located within Mrs. Annkay Enterprise and General SuppliesFOUNDER’

home in uptown Manhattan. At the point that Annkay Enterprise and

General Suppliesrequires other employees to work in-house, a separate

live or work space might be necessary. Presently, Annkay Enterprise

and General Suppliesdoes not have a bricks-and-mortar retail location.

All prototype construction and manufacturing will be done off-site at a

seamstress’ shop and at the chosen manufacturing facility. Marketing

can be done in-house or at marketing consultant [fashion business plan

example] PARTNER Sielegar’s (see section about business partners)

office space.

In its first three years of operation the company will be producing in

the USA and outsource manufacturing to dedicated service providers.

Mrs. Annkay Enterprise and General SuppliesFOUNDER will do the

designing work herself and through her well-connected business

relationships, she will be able to take care of many of the firm’s vital

functions of marketing, such as public relations, marketing and other

communications-related activities.

The company will set up a professional supply chain management to be

able to cut costs and deliver flexibly and punctually at the same time.

Supply chain management is of prime importance for young fashion and

design firms. Good supply chain management entails close

communication with suppliers, warehouses, logistics firms and the

client. Diligent research and comparison of shipment options and

building relationships with key personnel within logistics providers’

facilities will help Annkay Enterprise and General Suppliesstay on top

of its supply chain management. Due to the small-scale nature in the

beginning of the business it will be relatively easy to coordinate the

inflow of fabric and outflow of product. Ground transportation with

UPS will be utilized in most cases. In the case that international

shipments are needed, air transportation will also be an element of the

logistics organization of [fashion business plan example] COMPANY. No

products will be shipped on consignment basis, consignment will be

avoided altogether, due to the risky nature of working on consignment.

Annkay Enterprise and General Supplieswill have a dedicated sales

representative who will search out potential buyers.

To control costs, track inventory and manage stock levels at the later

stages of business operation, an inventory control system will be set in

place. This will include the standard bar code with its related

equipment and software. Eventually, staff will conduct annual inventory

audits and hire outside auditors when necessary. All accounting and

finances will be maintained using in state-of-the-art software.

The company will secure showrooms in [fashion business plan example]

LOCATION City. Purchasing from [fashion business plan example]

COMPANY, buyers receive product displays and promotional materials

with purchase. Additionally, Annkay Enterprise and General Supplieswill

work closely with regional sales representative of Fashion apparel

buyers. Mrs. Annkay Enterprise and General SuppliesFOUNDER will

also attend relevant pre-season fashion trade shows and have all the

necessary equipment at her disposal.

Unique Selling Propositions

The company will have a set of unique features, which will differentiate

it from competition. The most important unique selling proposition of

Annkay Enterprise and General Suppliesis to be found in the

capabilities of the founder herself. The owner of [fashion business plan

example] COMPANY, Mrs. Annkay Enterprise and General

SuppliesFOUNDER, being very experienced in graphic design and

project management and maintaining impeccable contacts in the

Fashion world and fashion industry, will invest all of her personal time

and expertise into the startup.

The fashion and retail industry tends to be overly youth and small size

focused. Many female Fashion riders are forced to wear men’s clothing

which denies their femininity and makes them wardrobe-wary when

riding out for a social occasion. However, by closely following high

fashion trends as well as customers’ purchasing preferences, Annkay

Enterprise and General Supplieswill tailor styles to meet the specific

needs of the clientele. The key feature that separates Annkay

Enterprise and General Suppliesfrom all other competitors is its

commitment to providing women stylish, quality accessories and

clothing options. Because the primary concern is ensuring that

consumers are happy with the fit and style of their purchase, Annkay

Enterprise and General Supplieswill have a strong impact on the female

Fashioner community and earn strong word-of-mouth endorsements

from happy clients.

Customers will benefit from the experience and knowledge of the

company staff about Fashion gear and fashion. The goal is to implement

a superior customer service system. The well-trained personnel will

provide an edge in the competition and the brand will quickly become

acknowledged broadly. Protecting the brand and its good reputation will

become a key part of the strategy to ensure that the unique selling

propositions that come along with a recognized brand name are

maintained as long as possible.

Company Vision and Strategy

The vision pursued by the establishment of Annkay Enterprise and

General Suppliesis a high-end line of Fashion wear for women. It will be

protective, the highest quality, top style and comfortable to wear. The

brand Annkay Enterprise and General Supplieswill be recognized as

eco-conscious and as making a difference for its customers and for the

world. The brand will be the opposite of Harley brand clothing, truly

feminine, sexy and elegant.

Right from the start, it is planned to develop and make expert use of

an online presence. This is a very important part of the business

undertaking, as the web presence will enable Annkay Enterprise and

General Suppliesto showcase its products, establish the brand and

raise awareness in the industry. It is likewise thinkable that the first

customers of Annkay Enterprise and General Supplieswill actually buy

the product from an integrated webshop. From these early revenues

the company will be able to generate a higher cash flow, benefitting

from ways to make itself depend less solely on high volume contracts

with the retailers and wholesale clients.

In the long run, the potential for regional and/or national expansion will

be explored further. Some concrete goals, which must be attained

before an expansion can be considered, are to penetrate and raise

awareness in 30% of the targeted consumer market, build a customer

base and mailing list and become a profitable business with expansion

potential within a maximum of three years.

The first major milestones will be securing funds and setting up the

business. This is the main focus right now. In five years, Annkay

Enterprise and General Supplieswill have established itself within the

community and within the industry and set up overseas sourcing and

manufacturing operations (most likely in China or Vietnam). It will

become the leading brand in contemporary apparel of the perfect blend

between cutting edge, high-tech protective wear and femininity.

Annkay Enterprise and General Supplieswill make an impact globally

through initiatives built into the company structure, supporting

employees and communities around the world.

Go back up

Market Analysis

To get a good picture of the market environment, it is necessary to

first take a look at the American retail market, with a special a focus

on fashion. The next step is a close look at the market for Fashions and

Fashion wear and specific market data concerning the target group.

The sales reported in U.S. total retail sales in 2011 were $4.7 trillion,

which represents an 8% increase over 2010 total retail sales (including

food service and automotive). The US retail clothing industry includes

about 40,000 companies that operate 80,000 stores with combined

annual revenue of $130 billion. The industry is highly fragmented and

concentrated at the top. The 120 largest companies operate 40,000

stores and account for 65% of industry revenue. Most companies

operate just one store, but 1,000 companies operate more than two.

Demand for clothing is strongly influenced by the growth of the

economy and personal income. During the 2000-02 recession for

example, sales fell 20% at Abercrombie & Fitch and at The Gap, Inc.

The typical store has $1 million in annual sales and ten employees, but

3,000 stores have annual sales over $5 million. Within their specialty,

stores typically sell a full range of items including regular clothes,

outerwear, and underwear. Many stores also sell shoes, handbags,

jewelry, make-up, and perfumes. The clothing retail industry includes

stores specializing in women’s clothing (50%) or men’s clothing (20%).

Stores may also specialize in children’s clothing (nearly 10% of sales,

including infant wear) or accessories.

A very interesting trend in the American retail economy is the ever

more frequent occurrence of e-commerce. Online shoppers in the

United States are estimated to be spending $327 billion in 2016, up

62% from $202 billion in 2011, according to a projection released by

Forrester Research Inc. In 2016, e-retail will account for 9% of total

retail sales, up from 7% in both 2012 and 2011. That represents a

compound annual growth rate of 10.1% over the five-year forecast

period.

The report further points out that much of the growth comes from

online retailers improving their web sites and services. This appears to

be particularly true in the areas of apparel and jewelry, which have

integrated a web design selling tools such as zoom, color swatching, and

configurators. The steady growth in the number of web shoppers also

is helping to boost e-commerce sales. Forrester says that 192 million

U.S. consumers will shop online in 2016, up 15% from 167 million in

2012. But the bigger factor in driving e-commerce growth is that each

shopper will spend more on average, the report says. U.S. consumers in

2016 will each spend an average of $1,738 online, up 44% from $1,207

in 2012. The strongest reason for this form of sustained strong growth

are the variety of selling points in e-commerce, such as loyalty and

discount programs, low prices in general, this strong surge in mobile

Internet and the overall tendency of the consumer to shop for the

best deal.
There are roughly 157 million women in the US in 2011, about half of

them are in the age and income group that would qualify them as target

customers for [fashion business plan example] COMPANY. The median

income is $48,600. 20% of women surveyed in our market research

make between an $50k and $200k annually.  We will initially seek

customers locally, but will increase our reach throughout the United

States and abroad as we build our brand and secure our image.

The Fashion Industry Council reports that between 2003 and 2008,

the number of women who own their own Fashion has grown 52%. 1 in 9

Fashions are owned by women. In 2009, there were 11 million Fashions

in the US. Women owned 1,155,000 of them. 40% of female bikers are

married (marketing to their husbands/significant others). The majority

of female Fashion riders we surveyed were white, with black women

following. 79% of those women own their own home and 35% have a

college degree. 25% work in business or health care. They shop largely

at large department stores and national retail clothing chain stores as

well as online retailers. The majority of women surveyed have a pant

size of 12-16 and top size above an XL.

TO BE INCLUDED

Perhaps a few comments about the worldwide market situation of the

fashion industry will serve to illustrate the strong growth that the

sector is experiencing. The world clothing and textile industry,

encompassing clothing, textiles, footwear and luxury goods, reached

almost $2,560 trillion in 2010, according to the market intelligence

agency MarketLine. The apparel, luxury goods and accessories portion

of the market, which accounts for over 55% of the overall market, is

expected to generate $3,180 billion in 2015, with a yearly growth rate

in excess of 4%.

The world womenswear industry is expected to exceed $621 billion in

2014, according to MarketLine, representing over 12% yearly growth.

The leading market sub segment is clothing retailers, with over 64% of

total market value. The EU has a more than 37% stake in the world
market, which is relatively fragmented and highly competitive.

(AMERICA’S STAKE, ASIA’S STAKE?)

The world menswear industry is expected to exceed $402 billion in

2014, according to MarketLine, representing over 14% expansion in five

years. The leading market sub segment is clothing and footwear, with

over 58% of the market. The Americas have a 35% stake in the overall

market.

The world market for textiles made from organically grown cotton was

worth over $5 billion in 2010, according to Textiles Intelligence. US

and EU clothing imports and China’s exports grew in value in 2011.

Companies that recorded increased revenue include: Benetton, Levi

Strauss, H&M, Gap, Marks and Spencer, Gildan Activewear, TJX and

Perry Ellis. In the EU, the clothing market is predicted to show almost

5% yearly growth from 2010 to 2015.

Seniors spent 28% more on online luxury fashion bargain purchases in

2011 than in 2010, compared to 19% for millennials, 12% for gen Xers,

and 9% for boomers. Millennials spent 33% more on online luxury

fashion purchases in 2011 than in 2010. Members of generation X spent

23% more on online luxury fashion purchases in 2011 than in 2010.

[REST OF MARKET ANALYSIS REMOVED]

Competition

Competition in the fashion industry is always a big factor. Even though

Annkay Enterprise and General Suppliesis operating in a very tight

niche, there will be still a wide array of competitors, whose business

operations partially overlap the business model of [fashion business

plan example] COMPANY. To each brand of competitor Annkay

Enterprise and General Supplieswill have the right answer to

differentiate itself and perform well even in a very competitive

business environment.

The greatest competitive threat would be a re-focusing strategy of

incumbent specialized manufacturers. If suddenly these large and

experienced firms decided to produce exactly the kind of stylish,

multi-use Fashion apparel that Annkay Enterprise and General

Suppliesis planning to launch, they would contest the market share of

Annkay Enterprise and General Suppliessignificantly. Over the last few

years, Fashion manufactures like Harley–Davidson for example have

been catering more to the female crowd. More Fashions are being

created with women in mind. Lower seat heights, less weight, and easy

maneuverability make bikes like Harley’s Switchback a popular choice

for women riders. The danger of growing competition from incumbent

firms is therefore very real.

Annkay Enterprise and General Supplieswill differentiate itself with

the more exclusive and limited collection of clothes and will offer a

very feminine, elegant and sexy style which sets it apart from overall

brand image of companies like Harley-Davidson, Triumph, River Road or

Vanson Leathers. Small stores can often compete very effectively with

large ones by targeting their products at different customers, even

though they have less infrastructure at their disposal and can often

not undercut big competitors price-wise.

In addition to competition from traditional department stores, new

competition in recent years has come from discounters like Wal-Mart

and from catalog and Internet retailers, which offer irregular yet very

economic selection of Fashion apparel. The competition with these

firms will be strongly influenced by the higher quality and the greater

likability of [fashion business plan example] COMPANY. The strong

brand of Annkay Enterprise and General Suppliesand its more targeted

marketing approach will be sufficient to perform satisfactorily even

when large discounters try to tap into the Fashion clothing market with

special editions at cut rate prices.

In the US, a selection of lines most closely competing with Annkay

Enterprise and General Suppliesare for example Deth Killers Brooklyn

(dethkillers.com/), Belstaff (belstaff.com), Moncler

(www.moncler.com), Ragazza Gear (ragazzagear.com/), Motor Grrl

Brooklyn (motorgrrl.com), Ruby Helmets, Go Go Gear LA

(gogogearla.com), Bogner (www.Bogner.com), Outlier (outlier.cc), Vanson

Leathers (vansonleathers.com/), Alpine Stars alpinestars.com) and Ed

Hardy. Internationally worth mention are Dainese

(www.dainese.com/it_it), Spidi (spidi.com) and Diesel (www.diesel.com).

Annkay Enterprise and General Supplieswould be the only real niche

provider for hip, fashion-conscious female Fashioners. While other

stores offer some style equivalents, they are not focused solely on

fashionable wear. Annkay Enterprise and General Supplieswill

therefore have a distinct competitive advantage in its niche. Supplier

relationships and exclusive product offerings will prevent future

competitors from entering the market as a competitor. It takes time

to build a Fashion wear design and manufacturing company, and by the

time a competitor attempts to compete with Annkay Enterprise and

General Suppliesdirectly, the young firm will have already established a

strong customer base and following.

Target Group

Annkay Enterprise and General Suppliesis a business-to-consumer

retail company. Female Fashion riders ages 25-55 are the target

customers. The target customers are trailblazers and trendsetters.

They value uniqueness, convenience, service and quality. As they retire,

price becomes a factor in decision-making, though they are generally of

“buy now and pay later” consumption philosophy.

Fashion-enthusiastic women live in big cities, are financially

independent and make household decisions. They own and/or ride

Fashions, appreciate Fashion culture, and/or ride as a passenger with

someone else (many women cultivate an interest in Fashions this way).

Research conducted by Mrs. Annkay Enterprise and General

SuppliesFOUNDER has shown that many women who ride Fashions shop

at mid-range department stores like Macy’s and Dillards, or national

retail chains like Jcrew or Anthropologie. Their income lies at $50-

200,000 per year and they own homes. They ride for longer trips and

transportation. For this reason, it is important to market also in the

Fashion specific retailers across the US, as this clientele buy their

Fashion wears in specialty shops. Inspiration can be drawn from Go Go

Gear LA: On their website they have a long list of retailers, most of

them are speciality shops for Fashion riders.

To reach the target group, Annkay Enterprise and General Supplieswill

target the retailing chains, where the target customer usually buys.

Originally it was thought to sell to high-end retailers such as Barneys,

Henri Bendel, (also for example concept stores in Manhattan and

Brooklyn such as Opening Ceremony and American Two shots) etc., and

have a celebrity and wealthy clientele. After considering the target

customer properties and price point of [fashion business plan example]

COMPANY’s products, Mrs. Annkay Enterprise and General

SuppliesFOUNDER considers entering into the mid range retail

environment with stores such as [business plan example partner]. After

it is established amongst the Fashion riding community, the brand shall

have a cult following beyond Fashioners (i.e. Nautica is worn by people,

even if they do not own a boat; Ron Jon surf is the equivalent of this

for surf wear, etc.).

It is thought that teaming with companies, riding instructors, Fashion

tour companies, bloggers, way finder applications (i.e. Garmin, Waze,

Google Maps), workshops for women interested in learning about

Fashion repair, or starting a Fashion blog/club for women to ride and

share together are possible ways to connect with the target group.

[TABLE REMOVED]

Risk Analysis

As a young startup in the highly competitive fashion industry and

dealing with very high product development, manufacturing and

logistics costs, Annkay Enterprise and General Suppliesis confronted

with a large quantity of relevant risks. By starting out with a collection

bags, the startup-costs and risks are reduced. There will be more time

to forge business relationships and Mrs. Annkay Enterprise and General

SuppliesFOUNDER will be able to identify the best-priced raw material

suppliers, pattern-makers and other partners involved in the

realization of the business goal.

There are certain risks that the company will not be able to influence,

such as market risk. These systemic risks, which also include political

and currency exchange risks (these will become relevant as soon a

overseas suppliers or customers become involved), cannot be avoided

by anyone in the industry. A farsighted and liquidity-conscious

management should be able to maintain a reasonable degree of financial

flexibility to deal with any negative impacts from the overall economy.

The impact of currency exchange risks is considered to be quite low in

the first few years of operation as it is not planned to generate

substantial revenue through overseas sales. Likewise on the buying side

the currency exchange risks are not deemed overly significant, even

though it is considered to import certain amounts of fabric from China

and/or Europe and conduct overseas manufacturing at later stages.

The operational hazards that the company will be confronting are of a

very different nature. To begin with it is very unlikely that the

prototyping and manufacturing will be smooth and flawless from the

very beginning. A lot of scrap will be produced until the production

process is perfected, which will lead to high production costs. Other

unforeseen costs are going to be incurred at least in the first two

years of operation. Even though by the selection of experienced and

well-reputed partners some uncertainty might be eliminated, it would

be too optimistic to assume that everything will work right from the

beginning.

With the wrong partners in overseas manufacturing there is a very

high risk of designs being knocked off and copied, which reduces the

value of the brand and can in some cases even hurt sales. These risks

of theft of intellectual property can be minimized by the generous use

of contracts and NDAs, the diligent management of critical data,

choosing partners with great care and using certain copyright best

practices such as Pauper’s copyright on top of getting each season’s

designs protected by the US copyright office.

It is also advised that the high risk of damage to products during the

warehousing or transport as well as all other material risks (damage,

theft, etc.) concerning the office infrastructure and health risks of

the founder and eventually the staff team should be covered to

maximum extent by adequate insurance. Especially with a very tight

cash base, the impact of any mishap in the warehouse can be

devastating and lead to the ruin of the company, so maximum insurance

coverage will be purchased.

Go back up

SWOT Analysis

Strengths: Weaknesses:

●      Founder has experience as ●      Very tight niche

an entrepreneur and can do the ●      No academic business

graphic design and fashion design administration background of

in-house founder

●      Unique shopping experience ●      Founder has no practical

with exceptional customer experience in fashion design and

service manufacturing of fashion

●      [fashion business plan ●      The business is to be

example] LOCATION is a great established in economically

location for a design firm unstable times

●      Founder has experience  

working with a staff, both

nationally and internationally

Opportunities: Threats:

●      Outstanding service will ●      Cost and effectiveness of

lead to repeat business marketing to women Fashion

●      Business opportunities by riders and other consumer

growth of online e-commerce groups

●      Large and growing consumer ●      New competitors or

base due to upswing in the incumbent firms paying more

Fashion industry attention to the niche that

●      Many potential product Annkay Enterprise and General

lines for expansion Suppliesis focusing on

●      By starting out with ●      Very high startup costs,

accessories and postponing liquidity risks

apparel, Mrs. Annkay Enterprise ●      New economic crisis

and General SuppliesFOUNDER impacting on the US retail

increases the chances for market

sustainable market success ●      Inability to get the

 preferred padding materials
 
 
Location of Headquarters

The business is being founded in [fashion business plan example]

LOCATION City. [fashion business plan example] LOCATION City has

a long tradition of being a hub for fashion design and up-and-coming

innovative business model. Although it is an expensive headquarters

location both in daily operation costs and initial start-up costs, the

unique advantages that the location offers outweigh the disadvantage

of these elevated costs.

Very good infrastructure, numerous potential business partners, ease

of travel in and out of the city, high-quality materials available, a

variety of relevant industry events and an ample supply of highly

qualified labor were all factors which persuaded the choice towards

[fashion business plan example] LOCATION City. Also the founder is

personally bonded to the area as she has been living in [fashion

business plan example] LOCATION City for 3 years.

Business Partners

We will partner with local organizations such as the Chamber of

Commerce and Downtown Merchants Association as often as possible.

We already have connections in all the necessary places. These

strategic partnerships will allow us to piggyback on publicity for local

events, as long as they are within our targeted demographic.

These organizations are dedicated to promoting local businesses within

our community and sponsor several events downtown each year. As a

member of these organizations, Annkay Enterprise and General

Supplieswill gain exposure, make business contacts, and will benefit

from Chamber and Association advertising, Web site promotions and

events

[LIST REMOVED]

Consulting

Annkay Enterprise and General Supplieswill employ the services of the

various consulting firms and freelancers in its first few years of

business. The services that Annkay Enterprise and General Supplieswill

employ are to aid the founder to acquire important know how and

business acumen to help her achieve the ambitious goals she set for

the company. At this point, three different consulting entities have

been chosen for the future cooperation or are already working

together with Mrs. Annkay Enterprise and General SuppliesFOUNDER.

These consulting entities are, listed in order of acquaintance: [fashion

business plan example] PARTNER Marketing Consulting, [fashion

business plan example] PARTNER Small Business Consulting and

[fashion business plan example] PARTNER Entrepreneur Coaching.

[fashion business plan example] PARTNER (www.XXXX.com) will manage

the setting up of the brand, including a great variety of services such

as logo design, clothing label design, brand book, web design, market

intelligence gathering, marketing testing and copywriting among others.

[fashion business plan example] PARTNER is very well known in the

[fashion business plan example] LOCATION City area and overseas and
has been successful in the market for 7 years. Its list of clients

include firms such as [LIST REMOVED].

[fashion business plan example] PARTNER (www.XXXX.de) is a German

freelance business consultant and professional business writer with 6

years of experience. [fashion business plan example] PARTNER has

completed over 240 business and financial plans and dozens of other,

complex business writing and consulting projects. Due to extensive

training in marketing and sales techniques, [fashion business plan

example] PARTNER was able to add important skills such as Google

Adwords, email marketing, social media marketing and webinar

marketing to his abilities.

The [fashion business plan example] PARTNER Engine

(www.XXXXXX.com) is a coaching provider that helps ensure partners

concretize their business models and briefs them on what it means to

be successful in the competitive startup environment. The [fashion

business plan example] PARTNER Engine is likewise well known amongst

some of the top grossing businesses worldwide and has been in the

market for 9 years. Its list of clients includes [LIST REMOVED}.

Go back up

Marketing Plan

Price Strategy

Annkay Enterprise and General Supplieswill set prices that will

underscore the high quality of the products. With very high design and

production costs, the price must be set to ensure that the break even

can be reached in a reasonable time. Therefore Annkay Enterprise and

General Supplieswill also use its price strategy to stay true to its

target group focus, which is primly made up of educated women of the

upper two quartiles on the income scale.

Communication Strategy

Mrs. Annkay Enterprise and General SuppliesFOUNDER has a strong

marketing background and recognizes the significance of effective

marketing. Additionally, she will take the services of a marketing

consulting firm for the initial setting up of her branding (logo,

corporate colors, brand book, etc.). She will seek to implement a

variety of marketing measures including PR-Strategy and of course also

all the conventional methods such as print-ads, trade shows and

researching and contacting potential clients. In order to not

overstretch the tight resources available during the initial start-up

phase, the marketing budget for ongoing expenses is to be kept to no

more than 5% of gross annual sales.

The marketing message, logo and slogans will revolve around the idea of

women Fashion riders as beautiful trendsetters and feminine ground-

breakers. Women riders are in their prime and at their best, meaning

these women deserve to be recognized as a force within the fashion

consumer market. [fashion business plan example] COMPANY’s initial

marketing efforts will remain local until a presence in the female

Fashioner community is established. These initial efforts will rely

heavily on local print and broadcast media coverage, traditional

advertising, signage, a direct mail marketing campaign and networking.

A significant portion of the advertising budget will be allocated to

print and broadcast media.

In the wake of launching its business and for every new season, Annkay

Enterprise and General Supplieswill organize marketing events and

shows to create awareness. The Chamber of Commerce, merchant

associations and media contacts will help promote marketing events in

local newspapers and radio advertising. Comprehensive advertising and

semi-annual direct mail marketing campaigns will follow the grand

opening.

A very important focus is placed on [fashion business plan example]

COMPANY’s consistent presence at trade shows, industry networking

events and fairs for fashion designers. The US hosts more fashion

events than any other country in the world. The industry is well

supported by private financers that promote emerging designers and

host regional fashion shows. However, unlike other developed countries,

most of the large fashion events in the US were only launched in the

last few years, the surge is extraordinary. In 2008, the US hosted at

least 44 large-scale fashion events versus only 11 events in 2004.

France and Italy for example had fewer events (2 and 4 respectively in

both 2004 and 2008). The sponsors/financers in the fashion industry

act as key drivers by promoting designers and regional fashion events.

Therefore it will be very important for Annkay Enterprise and General

Suppliesto be present at all these events and continually build a

network in the industry.

Marketing opportunities will be continually utilized as Annkay

Enterprise and General Suppliesexpands its business and customer

numbers grow. Measures such as bonuses for recommendations will

increase sales as the effects of word of mouth propaganda become

more apparent. To this end the website of Annkay Enterprise and

General Supplieswill serve the multitude of different purposes. The

domain names [fashion business plan example] COMPANY.me and

[fashion business plan example] WEBSITE have been reserved and site

development will begin as funds become available.

Foremost, the website is to showcase the brand Annkay Enterprise and

General Suppliesand its accessories and clothing lines and provide

customers with the ability to purchase items online (and retailers to

order sample products). As the site progresses, features such as

fashion advice, a blog, designer interviews, newsletters, and Internet-

only specials will become available. Eventually, the internet activities

will establish and nurture an online social community where Fashion-

enthusiastic women can gather and discuss topics of the day, network

and share experiences.

Business Organization

LEGAL ENTITY & OWNERSHIP

Annkay Enterprise and General Supplieswill be a Limited Liability

Corporation formally organized in [fashion business plan example]

LOCATION State (have not filed yet). Mrs. Annkay Enterprise and

General SuppliesFOUNDER is the company’s principle owner. If an

appropriate partner is found, they will have a minority share.

The business operates within the fashion design industry and is

classified under NAICS code 541490 – fashion design services. All

Jackets and any gear that is meant to protect from abraision and

impact while riding a Fashion will be tested and CE certified.

EXIT STRATEGY

Mrs. Annkay Enterprise and General SuppliesFOUNDER intends to

launch and grow Annkay Enterprise and General Suppliesfor many years

into the future. In the event that investors require repayment of their

initial investments, plus a large return on their investments, we will

seek a partner to buyout the investors’ shares. Another alternative is a

management buyout, which will be agreed upon in advance.

In the long term, [fashion business plan example] COMPANY, as a

profitable business, will become an appealing acquisition for large retail

chains.

The Founder and Director

Mrs. Annkay Enterprise and General SuppliesFOUNDER is the owner,

creative director and spokesperson of [fashion business plan example]

COMPANY. She will be the most import and figure to convert the

market entry of Annkay Enterprise and General Suppliesto the real

success. Mrs. Annkay Enterprise and General SuppliesFOUNDER’ comes

from a graphic design background and has had experience as an

entrepreneur, managing an art gallery in Chicago and a graphic design

business in [fashion business plan example] LOCATION City.

Mrs. Annkay Enterprise and General SuppliesFOUNDER spectrum of

tasks of the day-to-day business include: Supervising staff, maintaining

inventory and general bookkeeping, oversee the merchandise purchase,

selling and shipping, maintain awareness of trends within the industry,

manage employees, interns and contractors work, work with public

relations/marketing firms to ensure superior marketing plans are in

place and being implemented. She will also attend industry events and

travel to find more suppliers and clients.

Mrs. Annkay Enterprise and General SuppliesFOUNDER is a native

english speaker and also speaks french. She is proficient in the

administration of office organization software and graphic design. Mrs.

Annkay Enterprise and General SuppliesFOUNDER is in possession of a

drivers license for both cars and Fashions and has a Fashion with which

she plans to utilize to communicate her brand.

Staff

Annkay Enterprise and General Supplieswill employ the following

positions:

[LIST REMOVED]

The following positions will be contracted out:

Marketing Director: [fashion business plan example] PARTNER Design

Factory/[fashion business plan example] PARTNER

There are several positions that are yet to be filled. However, we feel

[fashion business plan example] LOCATION City has enough budding

designers and hungry job applicants that finding qualified employees

will not be an issue. Our administrative assistant and manager will be

paid an hourly wage, plus commission. Bonuses will be provided with

each year of service following an annual review to encourage employee

retention.

Go back up

FINANCIAL PLAN

Our company will earn revenue from our customers’ purchases of our

products. [fashion business plan example] COMPANY’s first-year

income statement illustrates a profit margin of TK, with a net income

of $TK per month – after taxes. Finally, we have determined our

break-even point will equal no less than $TK in total monthly sales. We

project our annual profits to reach $TK by year three.

Our company will generate revenue from the sale of clothing and other

merchandise to retail stores. First year sales are projected at $TK,

and we expect sales to surpass $TK by the end of year three. We will

achieve month-to-month profitability within the first year.

 

SOURCES & USE OF FUNDS

Annkay Enterprise and General Suppliesrequires a minimum of

$XXX,XXX to launch successfully for the first three years until cash

flow becomes more than costs.

Funding will be sought in stages. Stage one will be calculated to include

start-up costs through prototyping and gaining initial orders. This

includes and is not limited to: material costs for prototypes,

patternmaking costs, shipping and taxes of materials, TKTK. Stage two

will be calculated to include all costs needed after orders are made.

These costs will be much higher as we will be now going into full

production. This includes and is not limited to: TKTK.

We are currently seeking additional funding from outside angel

investors and business loans. Start-up funds will be used for

manufacturing the line, materials to create the line, creating

prototypes of the next season and operating expenses such as rent,

utilities and payroll. Further, our initial investment will also be used to

purchase equipment and inventory software – all of which will produce

future benefits for the company.

Business plan contests, IndieGoGo and Kickstarter are also methods

that will be employed to gain capital for start up.

FINANCIAL PLAN

REQUIREMENTS

Annkay Enterprise and General Supplieswill need $XXX,000 to get our

business off the ground. We are currently seeking funding from

outside investors and business loans.

USE OF FUNDS

Funds will be used to pay for fabrics, materials, prototype

construction, shipping, warehouse, contractors, travel, TK. The

remainder of the start-up funds will be utilized to cover operating

expenses, such as rent, utilities, payroll, marketing costs and wages.

INCOME STATEMENT PROJECTIONS

Based on our marketing plans, location, store size and product

offerings, we expect to collect annual sales of $TK in year one, $TK in

year two and $TK in year three.

Our average cost of goods sold will be TK%, which leaves us with a

gross margin of TK%. Our minimum monthly fixed costs are $3,300 per

month (this doesn’t include rent, utilities, materials, payroll), so we will

need to generate sales of $TK per month to break even. We will

become profitable on a monthly basis before the end of our first year.

In our third year, we will earn net income of $TK. The accompanying

income statement demonstrates our company’s profitability.

CASH FLOW PROJECTIONS

Our business will not collect immediate payment from customers, so

our cash flow statement will be different from our income statement.

More about cash flow here.

BALANCE SHEET

Annkay Enterprise and General Supplieswill launch with $600,000 in

equity capital and $50,000 in loans (I don’t know if this is correct).

Details are shown in our enclosed balance sheet.

ASSUMPTIONS

Our projections are based on the assumption that the economy,

consumer spending habits and population growth in [fashion business

plan example] LOCATION will continue for the foreseeable future.

We must also assume that our future buyers will continue to buy

inventory from us at prices that allow us to maintain our present

margins. It is also important that we are able to hire reliable

employees at reasonable wages.