A retail or wholesale clothing store requires careful planning prior to its inception. It is very crucial to learn how to write the best business plan.
How to Write a Business Plan for a Retail and Wholesale Clothing or Boutique
Executive Summary
Afrique Western Wear is a new wholesale and retail clothing store that takes care of the African-American fashionable lady in South West Houston. As the name proposes the focus of Afrique Wear is to deliver western wear clothes and accessories, and station ourselves as the leading retail store operating in this particular market and location.
We are the number one and only African-American run African retail and wholesale clothing store in the town of Houston. Our objectives are to achieve over 70% market share and be a central core of shopping action for the homegrown African-American women population as well as other people who love wearing African- inspired apparel.
Afrique Western Wear will be positioned at Almeda Rd. in Houston. Afrique Western Wear has integrated itself right in position to the suburban site and social events of our target market. It is our believe that this is important to our initial victory and long-term progress.
1.1 Objectives
1. To generate a great shopping environment that takes care of both the retail and wholesale clothing needs of the modern African American woman.
2. To get over 75% of the market share and grow to be the leading ethnic Afrofusion wear apparel shop in southwestern Houston, and attain name appreciation in the indigenous community.
3. To obtain a 50% proceeds margin in the first year.
4. To acquire a client base of more than 1,000 return customers by the time the first year ends.
5. To attain a net profit of $80,000 by the second year and $100,000 by the third year.
6. To be a dynamic and spoken member in the local community offering support to children, agricultural, and church events.
1.2 Mission
The mission of Afrique Western Wear is to offer excellent, trademark African-western wear in a variety of dimensions and styles to cater for all variable body styles and figures.
1.3 Keys to Success
For Afrique wear to achieve its objectives in this competitive industry, it must do the following:
· Convey a collection of sizes that will fit the more plentiful structures of the African-American prospective customer base.
· Offer customers with the best tailored customer provision in the environment of southern warmth.
· Publicize and promote in locations
· Constantly evaluate our sales and accounts and modify our levels of inventory accordingly.
Company Summary
Afrique Western Wear is a partnership business of three partners: Nancy Odongo, Mercy Joanne, and Doris Mutinda. The business will be located at Almeda Road in South West Houston, which is the focal point of the African-American community. The business will be open from Monday to Saturday from 9.00 a.m. – 8.oo p.m. On Sundays it will be open from 12.00 noon to 6.00 p.m. The hours, however, will vary according to the season. Christmas season and Houston Livestock Show will see the store open for longer hours. The apparel will be sold in accordance to the mission of the business, focusing on the difference sizes and height of the customers.
2.1Company Ownership
Afrique Western Wear will be partnership of three partners. Nancy Odongo will take of the accounting needs of the business, Doris Mutinda will be the Marker, while Mercy Joanne will oversee the day-to-day operations of the business.
2.2 Start-up Summary
Afrique Western Wear’s combination costs are as listed below. The business will begin with three months account on hand for clothing and accessories since this is the major generator of revenue. The most of the businesses’ assets will be vested in the account. The starting cash on hand balance will be $500.
This business plan is intended for us to acquire a $21,000 loan. This additional financing is obligatory to work on site groundwork, inventory, and operating expenses. Additional financing will comprise the partner’s investments of $7,000 and a short term rotating line of credit of $2,500 for replenishment of inventory in the course of the months of high profits.
Positive operations and acquiring a reliable client base will make Afrique Western Wear to be autonomous and profitable in the second year.
START-UP FUNDING
| Start-up Expenses to Fund | $8,400 |
| Start-up Assets to Fund | $14,200 |
| TOTAL FUNDING REQUIRED | $22,600 |
| Assets | |
| Non-cash Assets from Start-up | $13,700 |
| Cash Requirements from Start-up | $500 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $500 |
| TOTAL ASSETS | $14,200 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $15,700 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $3,000 |
| TOTAL LIABILITIES | $18,700 |
| Capital | |
| Planned Investment | |
| Owners Investment – Cash | $7,000 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $7,000 |
| Loss at Start-up (Start-up Expenses) | ($11,000) |
| TOTAL CAPITAL | ($4,000) |
| TOTAL CAPITAL AND LIABILITIES | $14,200 |
| Total Funding | $25,200 |
| START-UP | |
| Requirements | |
| Start-up Expenses | |
| Rent | $1,706 |
| Grand Opening Event | $500 |
| Telephone & Utilities (3 months) | $1,675 |
| Travel – Dallas Market Buying Trip | $650 |
| Business Insurance | $800 |
| Advertising & Promotion | $1,700 |
| Store Fixtures/Decorations | $1,500 |
| Computer/Cash Register | $1000 |
| Signage (Including Permits) | $400 |
| Organizational Dues & Subscriptions | $210 |
| Business/Office Supplies | $600 |
| Other | $759 |
| TOTAL START-UP EXPENSES | $11,000 |
| Start-up Assets | |
| Cash Required | $500 |
| Start-up Inventory | $13,700 |
| Other Current Assets | $0 |
| Long-term Assets | $0 |
| TOTAL ASSETS | $14,200 |
| Total Requirements | $25,200 |
Products
Afrique Western Wear will stock nationwide accepted African- American western wear varieties as described in the list below. Our stock will range from the nitty-gritties of Wrangler to the fashionable western elegance of Western Ethics. We will do our purchases through sales reps and manufacturers in a variability of colors, sizes, and styles to match our target market. The biggest percentage of the products will be in clothing, followed by all sorts of accessories, hats, and handouts. The management will count on feedback from customer, proposals, and sales information to bring in or do away with certain brands, styles, as well as sizes.
Some of the product labels that we will carry are:
Wrangler
Rocky Mountains
Lawman Jeans
Urgent Gear
Sunbody Hats
Silver Strike Buckles
Hat ‘N’ Band
Panhandle Slim
Western Ethics
Cowboy Hardware, etc.
3.1 Competitive Comparison
Afrique Western Wear has several advantages that will let us to shape the identity of our brand, add value to our stock and build a trustworthy client base while standing out from our competition.
· We will be the leading African-American-owned western wear clothing trader in Houston.
· The ‘Afrique Shopper Card’ will warrant clients to a 15% price cut after ten acquisitions (Buy 10 items get 15% discount).
· We will provide attires that will fit both slim and plus-size ladies and big and tall men.
· We will bring a culture sense and relationship with the public by proposing products that will bring together both the traditional African-American and modern fashionable lady cowboy cultures.
· Our business location is chief to our target shopper base.
· We will keep a comprehensive record on every customer, logging documents, their buying, size, and product for customer development and internal promotional drives.
3.2 Sales Literature
Afrique Western Wear will apply a directed promotion and sales platform to create P.R. and create a loyal customer base.
· More than 2,500 full-color card brochures with a 10% voucher will be dispersed all through southwest Houston region.
· 300 grand opening invitations will be dispatched to prospective new clients three weeks before the main opening in May, 2017. The invitations will likewise comprise a persuasive 10% voucher off a client’s first buying.
· More than 5,000 business cards with an Afrique Regular Shopper Card on the opposite side authorizing the client to a 15% price cut on the eleventh buying after ten purchases.
3.3 Sourcing
We will source our products from the below sources:
· We will make our weekly and monthly reorders with companies that have a local representative and outlet situated at the Dallas Market Center. For all the other products we will work in a straight line with the producer and employ product records and line sheets.
· In August every year, the Global Western Attire Tack & Accessories Show takes places, and the largest area show for western apparel and southwestern inspiration apparel highlighting the modern collections of all varieties with local agents.
· The Dallas Market Center presents to all listed customers, exceptional events, fashion displays, product exhibitions and demos, educational courses, conferences, new shopper’s kits and processes, exceptional buying plans and first Monday and Tuesday Design Occasions. Dallas Market Center will make it a major source for Afrique Western Wear especially in dealing with retail requirements.
· We will likewise work to reinforce our dealings with sales agents and merchants so that we may accomplish reduced cost of items. Our challengers, (both direct and ancillary) get their products from similar sources and we trust that through promotion plans and strategic associations we will start to attain a competitive advantage.
3.4 Technology
Afrique Western Wear will make use of Peachtree Accounting software which will take care of all monetary and accounting needs. For management of inventory and point of sale businesses we will apply Retail I.C.E. (Inventory Control Expert) software. This creation is a Windows-founded software that gives chance for the small, one store trader to take care of their point of sale and inventory purposes at the same time.
3.5 Future Products
As we accomplish and surpass our sales and viability objectives, Afrique Western Wear will enhance the stock by adding the latest boots to the merchandise line and our individual internal label of clothing that will comprise Afrique casual wear like t-shirts for ladies and shirts for men. We will multiply our line of varieties with those that have been frequently demanded by our clients. We will also create an e-commerce website that will increase our channels of distribution and enlarge our client base to a nationwide level.
Market Segmentation
The main target market of Afrique Western Wear will be the African-American ladies situated in the southern Houston. Since the business is situated in the focal point of their residential public we trust that they will compose the largest proportion of our client base.
The second target clients are the Hispanic population in the region. As the population Hispanics continues to expand promptly in the south dominant area we anticipate to get the support of Hispanics as they are known to be very dedicated to western clothing.
The last target client of Afrique is listed as “other”. As admiration regarding our store goes up we anticipate to see a variety of curiosity enquirers, and local inhabitants from the area as well as regular buyers during festival season.
| MARKET ANALYSIS | |||||||
| YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | |||
| Potential Customers | Growth | CAGR | |||||
| African-American Cowboys/Cowgirls | 10% | 18,347 | 19,881 | 21,979 | 23,858 | 26,234 | 9.50% |
| Hispanic Cowboys/Cowgirls | 15% | 9,782 | 11,034 | 12,904 | 14,625 | 16,834 | 15.00% |
| Other | 10% | 3,624 | 4,196 | 4,406 | 4,857 | 5,653 | 10.00% |
| Total | 11.33% | 31,753 | 35,121 | 39,289 | 43,540 | 48,621 | 11.33% |
4.1 Target Market Segment Strategy
The objective of Afrique Western Wear is to help the native African-American women community that struggle to find western wardrobes appropriate for their bigger frames. We will likewise assist the Hispanic community which inclines to have a slenderer but shorter body physique.
4.2 Trends in the Market
Millions of individuals across the world instantaneously are aware and classify with western apparel with an African touch. It is tantamount with America and is truly fashionable.
Western wear has lived for many eras. Ladies still wear the same attires of jeans that every other person wears. The future for western apparel will always be there. In the last few years both the African and western looks have made a rejoinder in the fashion trade. Afrique Western Wear anticipates to use its standing in the region to improve the wakefulness of the African-American culture in Houston, TX.
With the upsurge of contribution by proficient African-American women, more individuals are becoming conscious of the role and contribution of African-Americans in the whole community.
4.3 Analysis of the Industry
Retailers of African American wear clothing are made of numerous varieties of stores:
· Small Department Supplies: The mainstream of western wear attire is vended through small family-owned line supplies that are placed in or near vicinity societies. 85% of the buying indicators for western clothing is got from these localities.
· Huge Multi-run African-American Wear Vendors: These big stocks bulk market and sell to hardcore supporters in addition to the native visitors and those who buy only during festival season.
4.4 Main Competitors
Afrique Western Wear will face competition from four main stores: Festari for Men, Frankel’s Costume, Brooks Brothers, and dressbarn.
Marketing Strategy
The marketing strategy that we will employ will emphasize profoundly on sales advertising, positioning of niche in the market and consumer service with allegiance and preservation in sales.
· The budget set for marketing will not be more than 5% of our gross yearly transactions.
· · A statement kit will be sent to all main media channels in Houston, TX emphasizing the grand inauguration of the first African-American run Afro-fusion wear apparel vendor in the town. This kit will comprise a press release, images of the internal space, color postcard/leaflet, and a business card.
· 6,000 4×5 color leaflets/postcards will be circulated all through the town at the native halls and restaurants, trail rides and displays.
· Spot radio commercials on two native FM radio stations: KTSU 90.9, and HOT 95.7 KKHH.
Distribution Strategy
Our selling location will be the basis of constructing our client base. We will also have a direct mail package that will additionally revolve around and target the best 50% client base with exceptional internal sales and promotions.
Sales Strategy
· We will make use of Retail ICE POS software with each sales deal. With every buying the software will record and retain in its databank the client’s name, address and his/ her purchases. This data will be used with our direct posting package to put an emphasis on our top 50% of regulars.
· We will have a 14 working day exchange/ return policy to increase trust with our clients and preserve retention and allegiance.
5.3.1 Sales Forecast
We expect to start making good sales to start off conventionally and increase expansively during the Christmas break shopping time of year and throughout the months of The Houston Livestock Show.
Afrique Western Wear has projected for a growth rate of 15% for the initial years as we build a sturdy name credit and prestige in the community. In the second and third year we expect to see a rise of profits of 20% as we advance the percentage of the market share and rise our client base past the southwest area of the city.