sample business plan on fashion

Clothing & Fashion Business Plans

Written by Dave Lavinsky

Explore our collection of business plan examples for the clothing and fashion industry, meticulously crafted for designers, retailers, and fashion entrepreneurs. Whether you are a fashion startup or expanding your retail clothing venture, each plan is designed to address the unique challenges and opportunities in the fashion sector, from launching a new label to expanding an established brand. These examples are essential for anyone in the fashion industry seeking to build a robust business model, attract investment, and achieve long-term growth in a highly competitive and ever-evolving market.

Clothing & Fashion Business Plan Templates

Boutique Business Plan Template

Clothing Line Business Plan Template

Clothing Store Business Plan Template

Embroidery Business Plan Template

T-shirt Business Plan Template

Shoe Store Business Plan Template

Natural Hair Care Business Plan Template

How to Write a Fashion Business Plan in 10 Easy Steps

• Published: May 28, 2023
• By: Yellowbrick

Have you ever dreamed of making a splash in the world of fashion? Do you possess the creative flair and keen business sense needed to dress the world in your unique vision? If you’re nodding your head, it’s time to strut your stuff and create a fashion business plan  that’ll make investors sit up and take notice.

Fear not, we’re here to help with this 10-step guide that will assist you in crafting a blueprint tailor-made for success . So grab a cup of coffee, and let’s dive in together, preparing you to take the fashion industry by storm!

Find Your Fashion Niche

First things first,  what’s your style , darling ? Are you all about haute couture or do you fancy yourself as the next streetwear sensation? Identifying your niche is crucial to setting the foundation of your business plan. Ask yourself: who’s your target audience? What makes your brand unique? Answering these questions will help you carve out your place in the fashion world.

Executive Summary: Give ‘Em the Runway Rundown

Think of your executive summary as the teaser trailer for your business plan. It should be concise , snappy , and give your readers a taste of what’s to come . Summarize your company’s mission, its unique selling points, and your strategy for growth. Remember, first impressions count, so make it fabulous!

Company Description: Flaunt Your Brand’s Personality

Here’s where you  spill the beans about your company . What’s the story behind your brand? How will it make a difference in the fashion industry? Describe your company’s history, structure, and culture. Don’t forget to mention any milestones or achievements that make you stand out from the crowd.

Market Analysis: Study Your Style Scene

You’ll need to  do some legwork to get the lowdown on your target market . Analyze trends, competitors, and your audience’s buying habits. Who are the big players in your niche? What are the gaps in the market? Uncover the secrets to your competitors’ success and learn how to make your brand shine even brighter.

Product Line: Show Off Your Fashion Forwardness

Here’s your chance to strut your stuff and flaunt your designs . Detail your product line, including sketches, materials, and price points. How will your collection evolve over time? What’s your plan for future collections? Give readers a sneak peek into your fashion-forward world and leave them wanting more.

Marketing and Sales Strategy: Work That Catwalk!

Now that you’ve got your fabulous designs, how do you plan to spread the word ? Outline your marketing strategy, touching on advertising, social media, influencers, and PR. Describe your sales channels and how you’ll reach your target audience. Remember, in the fashion world, you’ve got to work to make it!

Operational Plan: Behind the Seams

In this section, delve into the nitty-gritty of your day-to-day operations . Discuss your production process, suppliers, and inventory management. How will you ensure quality control? What’s your plan for scaling up as your business grows? Give readers a behind-the-scenes look at the nuts and bolts of your fashion empire.

Management and Organization: Assemble Your Style Squad

No one can run a fashion empire alone.  Introduce your readers to your team , highlighting their experience and expertise . How will your organizational structure support your business’s growth? Be sure to discuss any advisors or mentors who’ll help guide you on your journey to the top.

Financial Projections: Crunching the Couture Numbers

Fashion may be all about glamor and glitz, but at the end of the day, it’s still a business. In this section, lay out your financial projections ,  including revenue , expenses , and profit . Create a comprehensive budget and cash flow statement to demonstrate your financial savvy. Don’t forget to address any potential risks and how you’ll mitigate them. After all, a solid financial plan is your ticket to fashion stardom.

Appendices: The Cherry on Top

Wrap up your fashion business plan with any additional information or documentation that supports your case. This might include market research data, design patents, or even letters of intent from potential buyers. Think of the appendices as the finishing touches to your plan – the cherry on top that ties everything together.

A Runway-Ready Business Plan

And there you have it – a 10-step guide to crafting a fashion business plan that’s equal parts style and substance. With your runway-worthy blueprint in hand, you’re now ready to take the fashion world by storm . So go on, dazzle investors, and watch your designs light up the catwalks. After all, the sky’s the limit when you’ve got a plan that’s dressed to impress!

But wait, before you dive headfirst into the world of fashion business, remember that it’s essential to keep learning and expanding your knowledge . To help you achieve even greater success, consider enrolling in the Fashion Industry Essentials Course  offered by Yellowbrick.

Taught by esteemed faculty from the prestigious Parsons School of Fashion  and leading industry insiders, this course covers essential aspects of the business side of fashion, including:

• Visual style
• Portfolio design
• Fashion production
• Marketing & PR

Featuring five enthralling online modules and a range of skill-building activities, you can progress at your own pace, tailoring the learning experience to suit your needs. Each module typically takes between 3 to 5 hours to complete.

And the cherry on top? You’ll have the extraordinary opportunity to learn from industry powerhouses  like Elaine Welteroth, Brandon Maxwell, and Rebecca Minkoff. Upon completing the course, you’ll be awarded a  non-credit certificate of completion from Parsons , showcasing your commitment to the fashion industry.

So, are you ready to strut your stuff? Don’t hesitate! Begin crafting your fashion business plan and enroll in the Fashion Industry Essentials Course  today to stay ahead of the curve. Empower yourself with the knowledge and skills to make your mark on the fashion world!

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Clothing Line Business Plan

Want to transform your passion for fashion and garments into a profitable business venture?

Well, it takes a lot more than a few sketches, threads, and sewing machines to start your clothing store.

The trillion-dollar clothing industry is growing rapidly and the competition is severe to get your brand recognized.

But hey, the odds of you creating a successful clothing business can be increased substantially, just by planning through it thoroughly.

A well-crafted realistic clothing line business plan accounts for every minute detail that goes into establishing a business. Right from market research to financial forecasting and everything in between, it contains details that will help you lay clear future plans for your clothing line.

This is the ultimate business planning guide for anyone who wants to venture into a fashion business and taste the sweet nectar of success.

Let’s power you with all the right resources to write a business plan.

Let’s get started.

Key Takeaways

• Identify your company’s mission, vision, core values, and business objectives and determine your position in the market.
• Identify the latest trends in the fashion industry and how the business will adapt to those trends.
• Prepare for the casualties and mitigate the business risks with a forward-thinking business plan.
• Create a well-structured cohesive business plan with enriching visual reports.

Benefits of having a clothing line business plan

From fashion designers to small businesses and large retail stores, every clothing business requires a clothing line business plan. Wondering why?

Let’s unravel the benefits of having a business plan:

• A business plan accounts for all sorts of emergencies and unknown variables. It prepares you to mitigate business challenges strategically.
• A business plan helps quantify the goals and important business strategies. It gives strategic direction to your business’s core objectives.
• A business plan allows you to review the financial aspects of owning a clothing store. You have a chance to modify the structure, core offerings, and strategies while the idea is still on the paper.
• A business plan adds structure to your everyday operational processes. We all know how seamless operations play a key role in reducing business expenses and costs.
• It helps establish the viability of your business model in the long term and helps make it profitable.
• Last but not least, it helps you acquire investor funding for your dream project.

Convinced, right? Now, let’s understand the basics of creating a clothing line business plan that will help accomplish future plans for your business.

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Key components of a clothing business plan

Wondering what goes into making a clothing line business plan? Well, here are the key components you would not want to miss adding to your plan.

Executive Summary:

Company overview:, market analysis:, products & services:.

A line down of your core products and services, their benefits, and unique features that will help you make a profitable business.

Marketing and Sales Strategy:

Organizational structure:, supply chain & operations plan:, financial projections:.

Let’s move forward and understand the detailed process of writing a business plan.

A step-by-step guide to creating a clothing line business plan

You are already aware of the key components that go into making a solid business plan. Now, let’s get you a breakthrough in the fashion industry with a detailed guide on creating a fashion brand business plan.

1. Get a business plan template

Before you start writing a business plan for your clothing brand, do yourself a favor and pick a business plan template to simplify this entire process.

This is because writing a business plan from scratch is challenging. It includes too many components and addressing each of them with utmost clarity gets taxing.

A template offers a structural framework to your plan and helps maintain clarity in the way you present the information. It streamlines the entire process and makes it easy for you to update and modify the plan as needed.

Now, don’t look elsewhere searching for the perfect template. The Upmetrics intuitive and relevant business plan templates are available for free download and easy edits.

Whether yours is a startup clothing line or a clothing boutique, Upmetrics has plenty of fashion industry business plans to choose from.

Need Assistance Writing a Clothing Line Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

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2. Write an executive summary

It is a concise and well-structured summary of your entire business plan that compels potential investors to know more about your clothing brand.

Avoid the fluff and be catchy with the business description here.

The executive summary must contain details like the location of your clothing business, products you sell, market opportunities, business strategy, and anything that makes your fashion business a huge sell.

Also, don’t forget to add a relevant CTA for the readers. Let them know what you wish to achieve with this business plan.

Adopt a storytelling approach and find the hook to capture anyone reading your business plan.

For example:

Seine is an online apparel retail brand that brings ethically sourced fashion to the market. We are focusing on a target demographic of women in their twenties and thirties who want to build a basic capsule wardrobe with sustainable timeless pieces. After generating a million-dollar business through our online clothing store, we now plan to launch our physical clothing stores in three different locations: New York, London, and Delhi. We are looking for funding to expand our operations and grow our prominence through offline stores.

Now, an executive summary is the first and most important part of your business plan. However, we recommend writing it towards the end once you are done with your financial projections.

3. Prepare a company overview section

Company overview is a brief business description of your fashion brand. It is your chance to describe your own clothing business in the most compelling and natural way possible.

Describe what kind of clothing business you are planning to open, i.e. retail store, a chain of fashion brands, clothing boutiques, clothing department stores, or some unique fashion business. Mention the owner of this clothing brand and their prior experience in the fashion industry.

Also, mention the legal structure of retail stores. Mention if it will be a limited liability company or a partnership firm.

This section should be insightful for potential investors and must include your mission statement, business goals, and company values.

Here’s what these key indicators should include:

Mission statement: A brief statement describing the reason you are starting this clothing brand. It must explain the reason for a clothing brand’s existence and its purpose.

Business Goals: What are the aspirations and vision for your fashion brand? It can include quantitative goals like, the number of retail stores, revenue goals, ranking, number of cities, etc.

It can also include qualitative details like being the most recognized ethical fashion brand.

Company values: Think of core values that define your clothing brand and influence the decisions.

Core values are what separates your brand from different apparel brands.

4. Conduct a fashion industry market analysis

A market analysis is essential to distinguish your business from competing clothing lines.

This part of a business plan includes a detailed understanding of the target market, competitors, market size, future growth potential, emerging market trends, and much more.

Dedicate a section of the market overview to outline your target demographic. Create a buyer persona taking into consideration the age, gender, income, shopping habits, values, and spending patterns of your target audience. This will help you create ideal products for your audience and devise marketing strategies to reach them.

Identify your direct competitors and analyze the fashion brands and apparel brands working in a similar segment like you. Also, consider the indirect competitors like clothing retailers that offer products at cheaper rates to your target audience.

Further, highlight the scope of growth potential for your clothing business. Enrich this section with statistical data, graphs, and qualitative analysis wherever possible.

Lastly, discuss the emerging trends in your segment. We all know how trends shift in the fashion world. Suggest how your business will address these trends to stay relevant. Also, identify the challenges in current business and suggest a feasible plan to overcome those challenges.

5. Describe your core product line

Now that your mission statement and market analysis are in place, it’s time to introduce your products and services to potential investors.

In this section of a business plan, offer a brief rundown of all the products and services that will be sold by your clothing business.  Mention the features and benefits that make your products desirable.

Take this opportunity to highlight the product USP’s that separates your clothing line from other clothing lines.

Draft this section from an investor’s point of view. Consider the questions they might have regarding the product and write accordingly.

For instance,

• Will you sell cloth semi-finished garments or readymade garments?
• Will you manufacture the garment or sell it through a retail business?
• Are there any special features of your product: Sustainably grown, ethically sourced, single thread sewing, water repellent fabric, etc..
• Is the customization option available on your products?

Overall, this section should convince the investors of the viability of your product.

6. Propose marketing and sales strategies

Now that you have finalized the products and services, how do you propose to sell them?

Sales is at the root of business success and marketing is what fuels the sales. So, now you need appropriate strategies in place to achieve your business goals.

Consider answering the following questions to help you form a sales strategy:

• What is your annual sales goal?
• How do you intend to bring sales: online clothing store, retail store, or through a mix channel?
• What is your pricing strategy for products?
• How much annual revenue do you plan to generate?
• How much money do you need to invest to generate sales?

Once your sales strategy is in place, you start working on your marketing strategy.

Keep in mind that the fashion industry is huge. A different marketing plan is required for different types of fashion businesses.

Conduct market research into your target demographic and determine your marketing strategy. Identify rewarding marketing channels and allocate your budget for each of them.

A marketing plan can include a mix of paid and organic marketing strategies. Consider adding print advertising, social media marketing, Email marketing, Google ads, content marketing, and other marketing strategies to your clothing business plan.

7. Introduce leadership or management team

In this part of the business plan, introduce the key personnel who will manage your clothing line. This can be CEOs, owners, key managers, business leaders, or consultants who will shape the business with their expertise.

Include a brief biography of key members and mention their relevant experience in the industry. Also, highlight the hierarchy of these key members in your organization and their roles and responsibilities.

Lastly, mention the cost of acquiring, training, and retaining your management team.

Overall, this section of a business plan should focus on proving the asset-worthiness of these members.

8. Outline your operational plan

How do you plan to run a clothing store once you acquire the funding? Have you given a thought about everyday challenges, operations, and processes?

In this section of a business plan, you will explain the business operations of your clothing store in great detail.

Include the following brief details while outlining your operational plan:

• Manufacturing or Retailing : Will your clothing store have its own manufacturing or perform as a retail store? If you manufacture your own garments, will you have your own production units or get them manufactured by a third party?
• Online selling : Will the clothing store sell online? If so, will you use your own website or a seller’s platform? Highlight the entire online ordering process starting from inquiry management to sales and after-sales.
• Inventory management : Where will you store the goods? Who will be responsible for managing the inventory? What software and tools you will use to track the goods?
• Vendor management : Who will be your vendors? Do you have any agreements with them?
• Logistics : Who will be your logistics partner? What will be your shipping policy? What will be the delivery methods and charges?

Include every little detail you can think of. Whenever confusion regarding business processes arises, this operations plan should serve as a roadmap.

9. Create a financial plan

If you are looking for investor funding, the financial plan is where the investors’ interest lies. It is usually demonstrated in figures, graphs, charts, and Excel sheets.

A financial plan must include different financial statements for your clothing line business. For example, income statements, cash flow statements balance sheets, break-even analysis, and investment statements.

Follow this step-by-step guideline to write this section effectively:

• Identify the costs of starting a clothing line business . Consider various one-time expenses and recurring expenses and get precise estimates.
• Assess your current monetary position and determine how much funding is essential to get started. Pick a suitable funding strategy by identifying different funding sources, i.e. bank loans, angel investors, SBA loans, personal loans, etc.
• Make pre-assumptions based on market research and analysis. It is time to make financial projections and form pricing strategies, sales forecasts, and overhead budgets for your clothing business.
• Using the projections made earlier, form key financial statements of your business for the next 3-5 years.
• Test assumptions for different scenarios and use methods like sensitivity analysis to make your projections more relevant.
• Mention the monitoring and review methods you will use to review the finances of your business.

Now, doing all these from scratch will take months.  And still, there will be higher chances of errors in your calculations.

A financial forecasting tool can be of utmost help here. Simply enter the sales and cost figures and it will make all essential calculations for monthly, quarterly, and yearly reports. Creating a financial plan in Snap is truly possible.

The financial plan is a snapshot of your clothing business. Make sure you draft it with clarity.

10. Include informative graphics and visuals to present data

We have discussed the key fundamentals of a business plan by now. But do you feel that your clothing line business plan is lacking character? It’s possibly because it’s all pages and pages of text in there.

A business plan must be enriched with derivative graphs, visuals, and infographics to make it interactive and appealing. Moreover, the figures and data are easily digestible when they are presented in the form of visual reports.

If you have been writing a business plan using Upmetrics, the tool already made a visual report when you complete writing the financial plan. Don’t believe us? Go and check your dashboard.

Here’s a glimpse into the Upmetrics dashboard.

Now, if you wish you can add more elements of visuals to your plan. Identify different opportunities where you can present the information visually.

And that’s pretty much it. By the end of these steps, you will have your fashion brand business plan ready.

Clothing Line Industry Highlights 2023

Trends in the fashion world are changing faster than seasons. You sure want to keep up with these latest trends ruling the fashion world in 2023.

• Propelling growth in the luxury fashion market : The 27.15 Billion dollar luxury fashion market in the US is expected to grow between 5-10% in 2023.
• Sustainable fashion is on the rise : The sustainable fashion industry is worth 6.5 Billion dollars. According to a survey, products marketed as sustainable are expected to grow 5.6 times faster than other products.
• Core issues : Inflation, geopolitical instability, and supply chain disruptions are the top risks for fashion businesses in 2023.
• MCommerce leads the marke t: 73% of the total E-commerce sales are generated through mobile devices.
• The growing trend of fluid fashion : Genderless fashion is gaining tremendous popularity. 1 in 2 Gen Z consumers have purchased garments outside their gender identity in 2023.
• Global economy outlook : The Middle East and North America are expected to be the regions with the highest growth potential in 2023.
• Economic effects : 75% of Gen Z and millennials have restricted their budget on apparel and fashion to manage their finances.

From greenwashing to the environmental impacts of the fashion world, dive further into the market research and understand the state of the fashion industry in 2023.

Refine and present a Clothing Line Business Plan

After writing the first draft of your clothing line business plan, keep it aside for a few days. This will make editing more effective.

Now, proofread the entire document. Read, re-read, and edit till you find the contents to be an exact representation of your business.

It is also advisable to edit your business plans for different audiences. This will improve the efficacy of your plan and increase its relevancy amongst different stakeholders.

For example,

If you are planning to procure funding from investors, keep the format professional and focus on presenting financial data for growth, profitability, and ROI. However, your business plan should focus on partnership details and collaboration benefits when presented to retailers and suppliers.

Ensure that important data is represented through graphs, visuals, and appealing charts. Incorporate a storytelling approach to make the content interesting.

Before sending it across, ask a friend, relative, or professional colleague to review it critically and make essential changes.

Once you are confident about the presentation, share it with the potential stakeholders.

Download a Sample Clothing Line Business Plan

Need help planning the contents of your business plan? We have a perfect resource for you. Download our free clothing line business plan pdf and get step-by-step instructions with all the industry-relevant examples.

Upmetrics intuitive templates are specifically designed for business enthusiasts and entrepreneurs who are ready to kickstart their business planning. Simply import the data into the editor and start planning.

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Write Your Business Plan With Upmetrics

Streamline your business planning process with Upmetrics. With more than 400+ customizable sample business plans , Upmetrics offers AI assistance and step-by-step guidance to write a cohesive business plan.

Whether you are expanding your current business or setting up a start-up, Upmetrics resources will help you create an actionable and forward-thinking business plan in easy steps.

Let’s bring your clothing line dream into reality.

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Frequently asked questions, what permits and licenses are required for running a clothing line.

A clothing business is moderately regulated when it comes to licenses and permits it requires. Here are a few licenses you must consider depending on the nature of your clothing business:

• Business License
• Sales tax permit
• Import/Export license
• Occupancy permit
• Health department permit
• Environmental permits

Can I start a clothing line without a business plan?

Yes, you can. Having a business plan is not mandatory. However, you will require it, if you are looking for funding options. Moreover, it is advisable to have a business plan to help you plan, manage, and mitigate the challenges that will arise when you start the business.

What challenges should I anticipate in the clothing industry?

Amongst the various challenges that encircle the clothing industry, inflation, geopolitical instability, and supply chain disruptions stands at the top. Apart from these, you can expect challenges with inventory management, supply chain disruptions, increasing production costs, brand building, and global trade management.

How should I price my clothing items in my plan?

The pricing you choose should reflect the brand’s positioning, quality, customer spending patterns, and revenue goals. If you are positioning yourself as a luxury brand, the prices should reflect that. Similarly, if you are positioning yourself as an affordable fast fashion brand, you cannot keep the price range excessively high.

How do I determine my target market for my clothing line?

Understand who would be interested in wearing your products. Now, create an ideal buyer persona for your clothing taking into consideration the age, gender, demographic, spending patterns, shopping patterns, and a variety of such factors. This will help you determine the ideal target market for your clothing business.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Whether you’ve graduated from Parsons School of Design or a smaller fashion school, you can’t begin to create your fashion empire without first creating a business plan. Running a fashion business is challenging and time-consuming, but the results can fulfill your dreams – if you are committed to sticking to your plan. A business plan for opening your own fashion studio must include an executive summary, company vision, market and competitive analysis, and the ways your company will position itself to take advantage of your targeted market.

The Executive Summary

The executive summary of your fashion business plan is the equivalent of an elevator pitch that boils everything down to two paragraphs. It should include the name of your fashion business, the area where you want to operate, the type of clothes and accessories you plan to create, and your target market.

For example, if you were designing high-end, haute couture dresses, your summary could include, “XYZ Haute Couture will cater to wealthy women from 40 to 55 in San Francisco. Our location in the heart of Union Square will help us attract the wealthiest shoppers in the city who are looking for designer-quality clothing at less-than-market prices.”

Express Your Vision and Selling Proposition

This section helps prospective investors understand the type of clothes and accessories you’re going to offer in your fashion business and the market that you want to attract. For example, if you’re going to make hip-hop street wear, you must explain how that street wear will meet the wants, needs and tastes of your targeted market. More importantly, you must also express a unique selling proposition, which is the thing you believe will set your clothes apart from anyone else in the industry. For instance, if your hip-hop street wear is made using sustainable fabrics, it can help differentiate and brand your fashion business.

Create Your Market Analysis

Defining your target market is essential to helping prospective investors understand how they will get a return on their investment. The biggest mistake fashion designers make is to define their market too broadly. For example, if you’re designing comfortable beachwear and you write that your target market is “women between 30 and 45 who love spending time at the beach,” you’ve failed the target market test, because your market is too broad and undefined.

To make it more specific and targeted, you would write that your target market is, “active women between 30 and 45 who earn $50,000 or more per year and spend an average of $2,000 per year on casual clothing and accessories.” Your market analysis must also explain how your business will capitalize on existing fashion trends, how your pricing structure compares to that of your main competitors, and how your business will fulfill an untapped niche in the market.

Explain Your Manufacturing Process

Designing fashion is one thing, but manufacturing clothes and accessories for a product line requires a detailed plan. Questions you must answer in this section of your plan include: Where will you manufacture your clothes? Have you obtained estimates with several manufacturing companies? If you’re using an overseas manufacturing company, how does the pricing structure change when converted into American dollars?

Explain Your Distribution Process

After you’ve made plans to design and manufacture your clothes and accessories, you have to explain your distribution plan. You may want to hire a distributor to help you gain access to retail stores in the area as well as big trade shows where you can showcase your designs and secure orders from independent fashion retailers.

Include Your Financial Plan

Your fashion company’s financial plan must include financial statements that show the relative health of the business and provide investors and lenders with vital company data. An income statement shows how much revenue the designer expects to generate, as well as the costs the designer expects to encounter as the clothing line develops. The financial plan should also include a break-even analysis that tells investors the threshold of profitability.

For example, you could write, “XYZ Streetwear will adopt a moderate growth plan, with the goal of always having a positive cash balance. Our payment options will include major credit cards, cash and checks. The break-even analysis based on average costs and prices has been completed. With fixed costs of $6,000 and $50 in average sales, and $25 in average variable costs, the business requires $12,500 per month in sales to break even.”

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• 1 How to Design a Fashion Business Strategy
• 2 How to Open an Apparel Boutique
• 3 How to Write a Business Plan in Fashion Design
• 4 Business Plan for a Start-Up Clothing Store

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Fashion Business Plan Template

AUG.16, 2013

Fashion Industry business plan for starting your own agency

One of the best ways to live your dream life is to have a business of your own, a setup where you are the boss, and you can make all the money that you need to fulfill all your dreams. If you want to start your business today, this business plan for fashion can help you achieve your dreams. We will tell you in detail how to write a fashion business plan. In this detailed business plan template for fashion industry, we will cover everything involved in starting the business from start tom finish. This can be used as a guide to start the business or as a investment group business plan .

Executive Summary

2.1 the business.

Apple Fashion will be a fashion industry located in Paris, France. This business plan for fashion industry will walk you through all the steps needed to start the business and run it in a profitable manner. We are writing a fashion business plan based on this example so that you can easily start your own business.

2.2 Management of Fashion Industry

The first thing you need to have for starting a fashion business plan is a well-defined management structure for the business. Without that, you cannot effectively start and profitably run the business. Go to any of the top business plan companies and the first thing they’ll discuss will be the management structure of the business you want to start.

Just like we did in the clothing retail business plan , the business will be headed by the owner and they will hire managers to run various aspects of the business. They key to the success of this business is appointing the right person on the right position.

2.3 Customers of Fashion Industry

Like any other business, it is important to decide the customers that you will be dealing as a part of the business. If you do not have a clear idea of the customers, you will be dealing, the business can never be profitable. The customers of the fashion industry will be the following:

• People who want custom-made designer clothing and accessories.
• Movie crews who need costumes for a movie.
• Retail stores who want to market premium clothing and accessories.
• People looking for wedding and party dresses.

2.4 Business Target

The target of the business is to make designer clothes available and affordable for everyone. With this business, we hope to decrease the prices of premium clothing. Other than that, making profit is also a target of this business.

Moreover, we also want to expand to other cities and start a franchise business model for expanding the reach of our products. The ultimate goal is global domination and competing with the likes of Louis Vuitton, Gucci, and Parada.

Company Summary

3.1 company owner.

Sarah Carnegie is the person who will be the owner of the business. She is a veteran fashion designer from America holding many awards and accolades. She also happens to be quite rich and generating the funds for the business will not be an issue for her. All that makes Sarah the best candidate for this business plan fashion industry.

3.2 Why the Fashion Industry is being started?

The next thing that we need to talk about is why the fashion startup business plan is being started. There are a number of reasons for that. First and foremost, Sarah always wanted to start a luxury clothing and accessories line of herself and now is the time for her to do it. Secondly, Sarah has recently been fired from her job and she no longer wants to be the employee, she wants to be the boss. With the hundreds of millions of dollars burning a hole in her account, she can do whatever she wants.

3.3 How the Fashion Industry will be started?

One of the most important things to discuss in any start up fashion business plan is how the business will be started. Thankfully, this fashion business plan template free includes that too.

Step1: Market Need Analysis

The first thing needed to be done before starting the business is market need analysis. This will tell us whether or not there is a need for the services we are going to provide. Just like a lingerie boutique business plan , the business cannot be successful without it.

Step2: Developing a Brand

This is the single most important part in this whole business. Luxury goods are only as good as the brand name printed on them. We need to establish Apple Fashion as a brand that people can trust if we want to see any measure of success in the business.

Step3: Opening an Outlet   

The first outlet of the business will be opened right in the front of Eiffel Tower in Paris. That must be expensive but remember the hundreds of millions of dollars burning a hole in Ms. Carnegie’s account? She’ll use them.

Step4: Establishing an Online Presence  

Having an online presence is perhaps even more important than having an outlet in front of the Eiffel Tower. Thankfully though, it is not as expensive as that. So Sarah will hire a web designer to make a website for her brand to make the brand known to the public.

Step5: Promotion and Marketing

Next up, collaboration will be done with prominent celebrities to endorse and promote the products from Sarah’s brand. This is also very important because people follow these people and we can use that as leverage to create sales.

The next important thing is finalizing the services that the business will offer. There can be a million services that an example of a fashion business plan can have, However, obviously, we cannot start providing every single one of the services. That will not be a smart move. We are a bunch of smart people and we need to make a really smart move in the fashion business plan samples that we create.

The services included in this fashion business plan pdf will be:

Costume Design

The main service of the fashion industry will be to design costumes for movies and TV.

Wedding Dress Design

People who want designer dresses for their wedding can also hire our services to get the dresses designed.

Theme Dress Design

Dress designing for theme parties will also be one of the services.

Custom-Made Accessories

We will also design, manufacture, and commission custom-made fashion accessories for our customers.

Marketing Analysis of Fashion Industry

The single most important part of any fashion business plan examples is the marketing analysis of the business. It is in this step that we have a look at what the market needs and how we can make a name in the market. This step is also a part of the streetwear brand business plan , but it is even more important here because the fashion industry is a congested one and the only way to make a profit is by careful marketing analysis.

Market trends and marketing segmentation are some of the most important parts of any fashion business plan presentation. Let’s have a look at them.

5.1 Market Trends

Having a look at the market trends is very important for writing a fashion company business plan. If we have a look at the market trends of the industry over the last decade, people have moved towards economically priced fashion accessories and products. If we are in for starting a fashion label business plan, the best way is to offer premium goods at a discounted price. By doing that, we can get a lot of customers and make a lot of profit.

5.2 Marketing Segmentation

No fashion marketing plan example can be complete without the proper marketing segmentation. Here’s the marketing segmentation that faces our business:

5.2.1 Showbiz

The biggest market segment for the business will be the showbiz industry.

5.2.2 Private Customers

People who want custom-made dresses and accessories will also be a main market segment for us.

5.2.3 Small Businesses

Small businesses that show an interest in our business can sell our product and will make a market segment for us.

5.2.4 Retail Customers

The standard clothing and accessories made by the business will be sold through our own outlets to the retail customers.

5.3 Business Target

• To become the most esteemed fashion goods producer in the world.
• To make luxury fashion goods accessible for everyone.
• To gain fame and recognition.

5.4 Product Pricing

The products of Apple Fashion will be priced below what the competition asks for their products. This will be done to make sure that we get business and the goal of making fashion products affordable for everyone can be realized.

Marketing Strategy

Just like a sewing business plan , we need to have a solid marketing strategy to make the business a success. This sample fashion business plan does contain that and will guide you how to use it. While making a marketing strategy for business plan examples fashion, the things that you need to focus on include the competitive analysis and sales strategy. Once you complete that, you can easily start the business and make it a success.

6.1 Competitive Analysis

Here’s the competitive analysis for this fashion business proposal:

• We have better designer than any of the competing brands in Europe.
• Our prices are lower than all of the competitors.
• We have a better sales strategy than any of the other companies in the sector.

6.2 Sales Strategy

If you want to know how to write a fashion article, you’ll need to be able to make sales strategy for the business. Here’s the sales strategy:

• We will hire the services of celebs to promote and endorse the product.
• Discounted rates will be offered to the buyers at the start.
• We will offer better value for money compared with any other of the competitors.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Just like we discussed in the thrift store business plan , it all comes down to the people that will run the fashion business plan sample pdf and will make it a commercial success. It is also in the objectives of a fashion business to make sure that we create employment for people. The company will be run by the following people.

7.1 Company Staff

• Sarah Carnegie will be the owner and CEO of the business.
• 2 managers for operations, external relations marketing.
• 6 Fashion designers.
• 2 Brand Ambassadors.
• 2 Social media promoters.
• 2 Web developers.
• 1 Retail shopkeeper.
• 1 reception clerk.
• 1 telephone operator.

7.2 Average Salary of Employees

Financial plan.

Before we wrap up the  fashion business plan template pdf, it is important to have a look at the money involved in starting the business. This business will cost more money to start than the embroidery business plan . We will need money for:

• The cost of setting up the store.
• Setting up the production facility.
• The salaries of employees for the time before we start making profit.
• The cost of marketing and promoting the business.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Fashion Business Plan Sample in pdf

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Fashion business plan sample and complete guide

They say looking good is good business and fashion design is certainly one of the best. Anyone who wants to excel in the fashion industry needs to plan properly and be creative. Since fashion is broad, you need a business plan to narrow your focus. You can also take a look at top 10 profitable fashion business ideas to help you narrow down the type of fashion business you want to do. A fashion design business plan answers the what, why, whom and where. 

What We Covered In This Article

Overview of fashion business

Every day, Nigerians search for styles to sew and for fashion designers that can meet their expectations. The fashion business is about inventing styles, making clothes, and marketing these services to a specific target audience. To be a successful fashion designer in Nigeria, one must have a sense of style, good designing skills, a high level of creativity and business skills.

Requirements needed to Start fashion business

To start a fashion business in Nigeria, you will require the following:

• Fashion training
• A fashion business plan
• Business registration
• Capital of at least 100,000 naira
• A business page on social media
• Sewing shop or sewing space
• Sewing machines and other types of machines needed
• Facilities and furniture
• Generator set (because of the constant electricity)
• Electric iron
• Other sewing materials like needles, measurement tape, scissors, etc

Is the fashion business profitable?

Some fashion designers in Nigeria earn 500k and above weekly, while beginners can earn between 50k to 100k weekly. This depends on the business location and the number of employees assisting the designer.

How much does it cost to start a fashion business?

The cost of starting a fashion business ranges from 100k for a small scale fashion business to above 500k for a large scale fashion business. Prospective fashion designers can start small and save up to expand later.

If you are a beginner with low funds, you can start your fashion business at home. All you need to do is to get your sewing equipment and everything else you need. You can offer to sew for your family, friends and neighbours for a small token.

If your work is outstanding and they like it, they’ll recommend you to their friends.

Types of fashion business

Below is a list of the types of fashion business in Nigeria:

Fashion retail is a type of fashion business where the retail owners either make their items or buy them wholesale.

The fashion retailer searches for a wholesaler or a manufacturer that they can purchase clothes from for an affordable price. It is a win-win situation for both parties because manufacturers rarely want to search for buyers, so they are receptive to retailers who approach them for business.

Fashion Design Business

Fashion designing is famous because most people prefer custom made outfits to those in retail shops. Fashion designing involves creating designs, cutting, and sewing items of clothing for clients.

Clients approach fashion designers with a variety of styles and they pay for it according to the complexity of the styles.

Clothing Import and Export

Clothing import and export is a fashion business done between manufacturers, wholesalers, and retailers. The retailers buy items of clothing from manufacturers in another country who only sell in bulk. These manufacturers produce these clothes in large quantities and supply them to retailers all over the world.

The clothing import and export business requires a large capital to start either as a manufacturer or as a retailer because manufacturers need a lot of money to mass-produce these outfits while retailers need a huge amount of money to purchase these outfits in bulk. 

Fashion school

A fashion school is a school that trains people to become fashion designers. There they can get first hand and intensive training from experienced fashion designers and tutors. Most fashion designers who have had a few years of experience under their belt decide to open a fashion school. While it promises to be lucrative, it requires a huge startup capital to get a building for the school, the furnishings, sewing machines and other tools to facilitate the students’ learning.

How to start a fashion business

Anyone who wants to start a fashion business in Nigeria should follow the outlined steps below;

Pick a Niche

Picking a niche is deciding your area of specialization in the fashion business. To know which niche you should go into, do research based on your location and your competition.

If most fashion designers in your environment specialise in ladies’ wear, then you can consider going into either men’s wear, children’s wear, street outfit or fashion accessories, which are also profitable.

Apply to a Fashion school

A fashion institute is the best place to receive training before you start your fashion design business. Regardless of your level, either beginner, intermediate or advanced, most fashion schools have moulded their training to suit all learners.

Another good thing about fashion schools is that after teaching you the basics of fashion designing, they train you in your area of specialisation.

This training period is usually between six to twelve months.

The cost of fashion institutes in Nigeria is high, with the least being around 200,000 to a million naira for a specified duration.

Because of this high cost, most people decide to go for an apprenticeship, which can be around 50,000 naira  to 100,000 naira for a year or more.

You can ask around in your area to find a suitable and affordable fashion designer. 

Another way to get fashion design training is through the Internet. Many fashion designers offered online fashion training at affordable prices. This method of training has gained popularity in Nigeria since the start of the pandemic.

Although it is not as efficient as physical training, it is more affordable and less time-consuming, so you can learn at your own time and pace.

Whichever of the above methods you choose, get reviews from others who have either attended the school or apprenticed under a fashion designer before you apply. So you will be certain of the designer’s skills.

Write a business plan

A fashion business plan is like a map that helps you to find the best way of arriving at your destination and, in this case, the objectives and goals of your fashion business. It outlines your target market, your competition, your advertising and promotion strategy, and more.

Writing out a fashion business plan will help you have a realization of how much you need to start a fashion business in Nigeria because it will take into consideration all the expenses that you will incur from one milestone to the next one.

In the latter part of this article, you will find a guide on how to draft your fashion business plan and a fashion business plan sample.

Source for capital

After writing a fashion business plan, you should have a reasonable idea of how much you need to start your fashion business.

Your capital will decide if you will go small scale or large scale if you will rent a shop or you will operate your fashion business from home. 

Register your fashion business

Any prospective fashion designer who plans to go deep into the fashion business will have to register it under the Corporate Affairs Commission (CAC) . To do this, you can go to the CAC website to contact them and to get their address.

Rent a Space

When you want to rent a space for your business, you need to look for a suitable location where your fashion design business will thrive, somewhere close to your target audience.

Ensure you rent a space that will be large enough to accommodate your sewing machines and your furniture. The size of this depends on how large scale you want your fashion business to be and the funds you have set aside for this need.

If you plan to use your house, ensure there is enough space for sewing machines and a private area for your customers’ fitting.

Buy furniture and sewing equipment

After you get a location for your fashion business, the next thing to do is furnish the shop and buy the sewing equipment you need. Below are some equipment needed for a fashion design business:

• Sewing machine: A sewing machine is used to sew clothes. There are various types of sewing machines, so you have to research the kind that is suitable for your business.
• Weaving machine: This machine is used to ensure the edges of the clothes are neat after sewing.
• Scissors; Scissors are used to cut fabrics.
• Measuring tape: This is a rule that is used to measure clients and fabrics.
• Needles and Pins: There are different needles used for sewing. Some are for the sewing machine while others are for hand sewing.

Advertise on Social Media

Social media is one of the best places to advertise your fashion design business and to promote it to meet more people.

You can learn to be social media savvy t post your designs, customers’ reviews and expose your business to the world.

Fashion business plan in Nigeria

A business plan consists of the sections outlined below:

Executive Summary

The executive summary defines your business by describing its focus, the service you plan to offer, the leadership structure, employees, location, and your business plan in summary.

Company Description

This part of your business plan should give an understanding of the important areas of the business. It should contain the physical description of your business, like the name, address, history, and nature of your business. This section should help the reader understand the why of your business and what makes it unique.

This section focuses on the team that will manage the business. Who are they? What are their credentials? What experience do they have that makes them qualified to be part of the team? This section shows investors that your team can manage the business and make it a success.

SWOT Analysis

The SWOT analysis of the business plan is an abbreviation of the words strength, weakness, opportunity, and threat.

This section analyses your business strengths, what makes it unique, its weaknesses, the opportunities open to it and the threats it faces. This section highlights all the factors affecting your business, both good and bad.

Market Analysis

Market Analysis is an important section of your business plan as it outlines the target audience for your business. It gives a description of who they are, where they are, what they do, their pain points, their needs, how they satisfy those needs currently, and how your business can satisfy it too. This section shows that you have an in-depth understanding of prospective customers, which will help make predictions about them in the future.

Financial Analysis

Financial analysis in a business plan is a detailed outline of your business’s financial information and expenses. It contains your budget and helps investors see how much you will spend in the business from the start to the foreseeable future.

Marketing Strategies

The marketing strategy is a spinoff of the market analysis section. It describes your strategy to attract customers, get them to patronise your business and keep coming back for more. It discusses your methods to get to your target audience and the pricing scheme you have set to meet with their financial capability.

Competitive Analysis

The competitive analysis section shows that you have an in-depth knowledge of your business’ competition.

It outlines all their important details like how they operate, how they promote and distribute, their strengths and weaknesses and how you will take advantage of these weaknesses and combat the barriers their strengths will pose for your business.

The appendix is a section of the business plan that contains data and documents that investors might request or that will give the reader additional information about your business or a specific part of it.

It can contain charts, product illustration, legal documents, management team resume, reference letters and more. These will enable the reader to understand your business better.

Fashion Business Plan Template Free (PDF)

Fashion Business Plan Sample Free (Doc)

Most common FAQs

Do you have fashion business plan free template

Yes. You can download and edit the fashion business plan template for free and edit it to suit your business

Does the fashion business plan comes with a business plan sample

The business plan provided contains all the information you need to be able to craft your business plan.

Can you help me with a business plan

Yes, for a fee our business consultants can work with you to craft your business plan. Contact us via calls and WhatsApp on 08073090253

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Fashion and Clothing Business: Example Business Plan

Are you starting a company that deals with fashion, jewellery accessories or handicrafts? We’ve created an example business plan to help you get the ball rolling!

Do your friends and family constantly encourage you to start a business to sell your handmade jewellery or clothing? You’ve clearly got talent so now it’s time to plan for your business. A business plan will help you detail the structure of your business, who your ideal customers are and how you plan to make money.

To help you get started we’ve created an example business plan for a business in the fashion & clothing industry. Our example focuses on a jewellery business, but it will work as a framework for a wide variety of businesses in the creative sector. Click the ‘Download Resource’ button to gain access to the word document.

You can also find the same example in the Business Plan Writer , our free online tool that guides you through the process of starting your business. Just select “fashion/clothing design” as your industry when you register.

Good luck and happy writing!

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3+ SAMPLE Fashion Business Plan in PDF | MS Word

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Fashion Business Plan Example – Clothes Business Plan

• 2. April 2016
• BrainHive Know-How Base @en , Business Plan Samples EN

This is an example business plan for a start-up clothes business selling a collection of self-designed bags and will expand the product portfolio to apparel for female motorcyclists – the goal is to establish itself as a well-known brand for motorcycle clothing for fashion-conscious women by combining functionality (protection) and style.

The founder is an experienced motorcyclist herself and understands the particular needs of female fellow motorcyclists. She also has conducted a survey of more than 130 women associated with motorcycle clubs/associations. By currently working in sales and merchandising at Ducati Triumph she could gain insight the motorcycle industry. She has worked as an art director for eight years and has leadership experience, though not very much fashion design experience yet.

Click this image if you want to order our super useful fashion business plan template package for next to no money! ($14,99 US)

Interested in having a selection of full real-life fashion business plan templates in MS Word (alongside their respective financials in Excel) for your project? Order our super useful template package directly from us  for a mere $14,99 US!

About the Free Fashion Business Plan Template in this Article:

The product (fashionable motorcycle bags and clothing) is supposed to fill a niche in the motorcycle apparel market, which makes the emphasis on fashion also a part of the company’s USP in contrast to the usual sports racing/Americana look that is traditionally produced by competitors.

The business plan also provides a brief overview of the market situation, the location (Soho, close to the fashion district) and competition as well as a risk analysis. The business risk will be mitigated by the initially limited product range (i.e. bags). It also gives information regarding potential business partners, the marketing plan, venue organization and financing.

Please note: A good way to get started quickly, efficiently and professionally is to hire experienced business plan consultants to write your business plan. At BrainHive, we offer professional business plan consulting packages. If you want to know the business plan consulting fees , we can also help you out, being one of the most affordable and yet professional business plan consulting firms in the market. Don’t hesitate to talk to us anytime if you want to learn more about us or get an individual quote for your business plan project. We can also give you business plan help , as well as prepare just the the finance plan portion of your business plan . This way, you can rest assured that you will receive a custom business plan service that fits your exact need.

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

[fashion business plan example] COMPANY is a start-up company that will sell self-designed bags and clothing for female motorcyclists, for women to look stylish on their bike and off. The company will start off with a collection of bags and will expand its product portfolio successively to eventually become a well-known brand for motorcycle clothing for fashion-conscious women. [fashion business plan example] COMPANY will make it possible for women to ride and be protected without having to change their clothing, no matter where their destination may be.

The company’s founder, Mrs. [fashion business plan example] COMPANY FOUNDER, is a motorcycle rider herself and currently working in sales and merchandising at Ducati Triumph [fashion business plan example] LOCATION in Soho. She has found that the current motorcycle apparel market is missing the niche of fashionable motorcycle clothing. Most companies designing women’s motorcycle gear are focused on the traditional Harley Davidson/Americana or the sports racing look, with very few companies offering a tailored and professional style. Since Mrs. [fashion business plan example] COMPANY FOUNDER has little experience in the fashion-design industry, she believes that by first launching the business with well-designed bags comes with less risk and greater chance for sustainable, successful market-entry.

[fashion business plan example] COMPANY 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. [fashion business plan example] COMPANY FOUNDER 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 motorcyclist 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.

[fashion business plan example] COMPANY is established by Mrs. [fashion business plan example] COMPANY FOUNDER. Mrs. [fashion business plan example] COMPANY FOUNDER 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 motorcycle associations and clubs. She also already stands in contact with various potential clients, business helpers and partners. [fashion business plan example] COMPANY’s home office will be located in [fashion business plan example] LOCATION City, close to the fashion district. 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 [fashion business plan example] COMPANY will operate in a very favorable environment. This fact, combined with Mrs. [fashion business plan example] COMPANY FOUNDER’s very strong competence profile make the business venture very likely to lead to a successful market entry.

The company’s product portfolio is aimed at providing female motorcycle riders stylish options of bags and clothing to buy and wear. As the number of educated women who buy and ride motorcycles 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. [fashion business plan example] COMPANY FOUNDER 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 motorcycle-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. [fashion business plan example] COMPANY will 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 motorcycle wears, including apparels, boots, helmets, bags and motorcycle inspired accessories, such as scarves. Since [fashion business plan example] COMPANY creates clothing that people can wear on and off the bike, the clothes have removable and/or very flexible padding. When designing the clothing, Mrs. [fashion business plan example] COMPANY FOUNDER 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 motorcycle 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 motorcycle. 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 = vqDe 0 C 4 OKbM & 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. [fashion business plan example] COMPANY FOUNDER’ home in uptown Manhattan. At the point that [fashion business plan example] COMPANY requires other employees to work in-house, a separate live or work space might be necessary. Presently, [fashion business plan example] COMPANY does 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. [fashion business plan example] COMPANY FOUNDER 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 [fashion business plan example] COMPANY stay 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. [fashion business plan example] COMPANY will 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, [fashion business plan example] COMPANY will work closely with regional sales representative of motorcycle apparel buyers. Mrs. [fashion business plan example] COMPANY FOUNDER 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 [fashion business plan example] COMPANY is to be found in the capabilities of the founder herself. The owner of [fashion business plan example] COMPANY, Mrs. [fashion business plan example] COMPANY FOUNDER, being very experienced in graphic design and project management and maintaining impeccable contacts in the motorcycle 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 motorcycle 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, [fashion business plan example] COMPANY will tailor styles to meet the specific needs of the clientele. The key feature that separates [fashion business plan example] COMPANY from 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, [fashion business plan example] COMPANY will have a strong impact on the female motorcyclist community and earn strong word-of-mouth endorsements from happy clients.

Customers will benefit from the experience and knowledge of the company staff about motorcycle 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 [fashion business plan example] COMPANY is a high-end line of motorcycle wear for women. It will be protective, the highest quality, top style and comfortable to wear. The brand [fashion business plan example] COMPANY will 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 [fashion business plan example] COMPANY to showcase its products, establish the brand and raise awareness in the industry. It is likewise thinkable that the first customers of [fashion business plan example] COMPANY will 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, [fashion business plan example] COMPANY will 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. [fashion business plan example] COMPANY will make an impact globally through initiatives built into the company structure, supporting employees and communities around the world.

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 motorcycles and motorcycle 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 Motorcycle Industry Council reports that between 2003 and 2008, the number of women who own their own motorcycle has grown 52%. 1 in 9 motorcycles are owned by women. In 2009, there were 11 million motorcycles 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 motorcycle 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 [fashion business plan example] COMPANY is 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 [fashion business plan example] COMPANY will 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 motorcycle apparel that [fashion business plan example] COMPANY is planning to launch, they would contest the market share of [fashion business plan example] COMPANY significantly. Over the last few years, motorcycle manufactures like Harley – Davidson for example have been catering more to the female crowd. More motorcycles 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.

[fashion business plan example] COMPANY will 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 motorcycle 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 [fashion business plan example] COMPANY and its more targeted marketing approach will be sufficient to perform satisfactorily even when large discounters try to tap into the motorcycle clothing market with special editions at cut rate prices.

In the US, a selection of lines most closely competing with [fashion business plan example] COMPANY are 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 ).

[fashion business plan example] COMPANY would be the only real niche provider for hip, fashion-conscious female motorcyclists. While other stores offer some style equivalents, they are not focused solely on fashionable wear. [fashion business plan example] COMPANY will 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 motorcycle wear design and manufacturing company, and by the time a competitor attempts to compete with [fashion business plan example] COMPANY directly, the young firm will have already established a strong customer base and following.

Target Group [fashion business plan example] COMPANY is a business-to-consumer retail company. Female motorcycle 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.

Motorcycle-enthusiastic women live in big cities, are financially independent and make household decisions. They own and/or ride motorcycles, appreciate motorcycle culture, and/or ride as a passenger with someone else (many women cultivate an interest in motorcycles this way). Research conducted by Mrs. [fashion business plan example] COMPANY FOUNDER has shown that many women who ride motorcycles 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 motorcycle specific retailers across the US, as this clientele buy their motorcycle 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 motorcycle riders.

To reach the target group, [fashion business plan example] COMPANY will 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. [fashion business plan example] COMPANY FOUNDER considers entering into the mid range retail environment with stores such as [business plan example partner]. After it is established amongst the motorcycle riding community, the brand shall have a cult following beyond motorcyclists (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, motorcycle tour companies, bloggers, way finder applications (i.e. Garmin, Waze, Google Maps), workshops for women interested in learning about motorcycle repair, or starting a motorcycle blog/club for women to ride and share together are possible ways to connect with the target group.

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Risk Analysis As a young startup in the highly competitive fashion industry and dealing with very high product development, manufacturing and logistics costs, [fashion business plan example] COMPANY is 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. [fashion business plan example] COMPANY FOUNDER 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

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, [fashion business plan example] COMPANY will gain exposure, make business contacts, and will benefit from Chamber and Association advertising, Web site promotions and events

[LIST REMOVED]

[fashion business plan example] COMPANY will employ the services of the various consulting firms and freelancers in its first few years of business. The services that [fashion business plan example] COMPANY will 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. [fashion business plan example] COMPANY FOUNDER. 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}.

Marketing Plan

Price Strategy [fashion business plan example] COMPANY will 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 [fashion business plan example] COMPANY will 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. [fashion business plan example] COMPANY FOUNDER 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 motorcycle 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 motorcyclist 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, [fashion business plan example] COMPANY will 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 [fashion business plan example] COMPANY to be present at all these events and continually build a network in the industry.

Marketing opportunities will be continually utilized as [fashion business plan example] COMPANY expands 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 [fashion business plan example] COMPANY will 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 [fashion business plan example] COMPANY and 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 motorcycle-enthusiastic women can gather and discuss topics of the day, network and share experiences.

Business Organization

LEGAL ENTITY & OWNERSHIP

[fashion business plan example] COMPANY will be a Limited Liability Corporation formally organized in [fashion business plan example] LOCATION State (have not filed yet). Mrs. [fashion business plan example] COMPANY FOUNDER 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 motorcycle will be tested and CE certified.

EXIT STRATEGY

Mrs. [fashion business plan example] COMPANY FOUNDER intends to launch and grow [fashion business plan example] COMPANY for 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. [fashion business plan example] COMPANY FOUNDER 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 [fashion business plan example] COMPANY to the real success. Mrs. [fashion business plan example] COMPANY FOUNDER’ 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. [fashion business plan example] COMPANY FOUNDER 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. [fashion business plan example] COMPANY FOUNDER is a native english speaker and also speaks french. She is proficient in the administration of office organization software and graphic design. Mrs. [fashion business plan example] COMPANY FOUNDER is in possession of a drivers license for both cars and motorcycles and has a motorcycle with which she plans to utilize to communicate her brand.

Staff [fashion business plan example] COMPANY will employ the following positions:

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.

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

[fashion business plan example] COMPANY requires 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.

REQUIREMENTS

[fashion business plan example] COMPANY will 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

[fashion business plan example] COMPANY will 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.

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Armani 'Doesn’t Rule Out' Merger or IPO In Succession Plan

Three months before his 90th birthday, Giorgio Armani is hinting at possible big changes for his Italian fashion empire once he’s no longer in charge.

After fighting for years to keep Giorgio Armani SpA independent amid the mergers and acquisitions that reshaped the luxury sector, the billionaire design virtuoso now says he won’t rule out his firm someday combining with a bigger rival or listing on an exchange.

“Independence from large groups could still be a driving value for the Armani Group in the future, but I don’t feel I can rule anything out,” Armani said in a written interview. “What has always characterised the success of my work is an ability to adapt to changing times.”

It’s a striking shift in tone for Armani, who rose from Milan window dresser to creator of one of the world’s most prominent luxury houses, keeping tight control along the way and dropping few hints about what would happen once he exited the scene.

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The future plans of Armani, who rarely gives interviews and has to date been reticent about discussing succession, have long been a hot topic in the industry. Milan-based investment bankers have also fanned the flames, drawing up countless scenarios for the company over the years and pitching proposals that have never produced any deals.

But the designer now appears more open to new ideas for the future, though it will be up to his heirs to evaluate them, he said.

“I don’t currently envisage a takeover by a large luxury conglomerate,” Armani wrote in a series of responses to questions from Bloomberg, a format he preferred to a direct interview. “But as I said, I don’t want to exclude anything a priori because that would be an ‘unentrepreneurial’ course of action.”

Armani, who controls virtually all of Giorgio Armani SpA and has a net worth of $6.6 billion according to the Bloomberg Billionaires Index, is also now leaving the door open to an eventual initial public offering.

“Listing is something we have not yet discussed, but it is an option that may be considered, hopefully in the distant future,” Armani said.

Uncertainty about the future is common in the Italian luxury industry, where many companies are still independent and family-controlled — including Salvatore Ferragamo SpA, Prada SpA, Moncler SpA and Ermenegildo Zegna NV — and all lack the scale of powerful, acquisitive French rivals LVMH Moet Hennessy Louis Vuitton SE and Kering SA.

Over the last 20 years a handful of Italian luxury firms have opted to sell to the French. Bernard Arnault, the LVMH controlling shareholder who built his massive fortune by amassing some 75 labels, has snapped up a number of Italian brands including Fendi, Loro Piana and jeweler Bulgari. Rival Kering owns Gucci and has a 30% stake in Maison Valentino with an option to buy the rest.

What Bloomberg Intelligence Says:

An €8 billion to €10 billion price tag for Giorgio Armani on takeover or spinoff may be seen as reasonable, assuming an EV/Ebitda of up to 17x on 2024 estimates calculated around normalised market growth of 5% to 6% in 2024, and against its mix of aspirational and luxury design which we estimate to hold potential of a 24 percent mid-term Ebitda margin.

The gap of over €2 billion between direct brand revenue including licenses, to net revenue (based on 2022) confirms that Armani is heavily license-dependent, so cash could be partly used to switch more licenses in-house, reducing risk to the supply chain and strengthening brand identity.

— BI analysts Deborah Aitken and Andrea Ferdinando Leggieri

Armani pointedly warned in the interview about larger luxury groups who “increasingly have the historic brands in their sights.” That could deliver growth on one hand, he said, “but on the other it entails an inevitable shift in values and substantial upheaval, style included.”

Still, size matters in the industry, and Armani posted about €2.4 billion ($2.6 billion) in sales for 2022, the most recent figure available, dwarfed by LVMH’s nearly €80 billion for that year, which includes wine, spirits and distribution revenue.

Succession Outcome

For Armani, the best outcome to the succession dilemma could see the founder’s family remaining at the helm with the support of license partners, said Stefania Saviolo, a lecturer on fashion and luxury management at Milan’s Bocconi University.

The Armani business model “is very unique compared to other fashion companies, including the French ones,” Saviolo said, pointing to Giorgio Armani’s unique position as “a designer with a strong identity who is also an entrepreneur and owns a complex portfolio of business lines and factories.”

Armani confirmed in the interview that he’d like to leave his company in the hands of a group of close confidantes. The designer has no children, though several relatives serve on the company’s board, and he has long suggested that an extended family of advisers would steer the group in the future.

“When it comes to succession, I think the best solution would be a pool of trusted people close to me and chosen by me,” Armani said, pointing to the leadership of his company’s foundation, particularly Leo Dell’Orco, who’s supported the designer in managing the company for years, and his nieces Silvana and Roberta Armani and nephew Andrea Camerana.

“The foundation will decide and govern the future of the Armani group,” the founder said, “because the people closest to me are at the helm.” Armani also said he doesn’t see any single individual taking his place at the head of the firm.

“I started out alone with a small company and have transformed it, piece by piece, into a group of international relevance,” Armani said. But today’s fashion industry is “very different to when I started, so I imagine multiple coordinated functions for those who come after me.”

Finally, the designer said he hopes his native Italy can maintain a central role in the global luxury industry, even as it morphs into something quite different than what it was some 50 years ago, when he began building his company.

“My hope is always that Italian fashion remains a symbol not only of image but also of industriousness and craftsmanship,” Armani said. “If there is one characteristic that defines us as Italians, it is an ability to adapt.”

By Daniele Lepido, Flavia Rotondi and Angelina Rascouet

Learn more:

Giorgio Armani: Lion in Winter

Fashion’s most successful designer is finally in touch with his tender side after a career driven by perpetual dissatisfaction. In an exclusive interview, he looks back on his life and addresses the mysteries of his succession plan.

• Giorgio Armani

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The Prada Exception: How the Trend-Setting Group Bucked Luxury’s Uneven Slowdown

This week, Prada and Miu Miu reported strong sales as LVMH slowed and Kering retreated sharply. In fashion’s so-called “quiet luxury” moment, consumers may care less about whether products have logos and more about what those logos stand for.

Chanel CEO Says Price Hikes Driven by Inflation, Craftsmanship

The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.

Hermès Defies Luxury Slowdown With Sales Jump in China

Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.

Miu Miu Sales Jump 89 Percent, Boosting Prada Group

The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.

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How to Write an Online Boutique Clothing Store Business Plan + Example Templates

Elon Glucklich

7 min. read

Updated October 27, 2023

In 2022, U.S. consumers spent over $1 of every $5 in online shopping on apparel .

From rare, vintage fashion to contemporary clothes for all shapes and sizes, shoppers have increasingly turned to the eCommerce market to stock their wardrobes in recent years. But with that opportunity comes fierce competition. 

Anyone looking to start an online clothing business will need to have an unequaled knowledge of both their target market and competitors. This makes writing a detailed, flexible business plan an essential first step to successfully launch and sustain your online clothing business.

• Why You Need a Business Plan for Your Online Boutique Clothing Store

A business plan will help you determine the startup costs you’ll need to buy inventory, set up an order fulfillment process and establish your online presence. It will also help you set realistic sales expectations and ensure that the revenue you bring in will be enough to cover costs and generate some profit.

In this guide, we’ll show you how to tailor your business plan to meet the needs of the fast-paced online fashion landscape – you can even download a free online boutique clothing store business plan template to help get you started.

• Understand your niche in the online clothing marketplace

The surge in online shopping presents a major opportunity for fashion-minded entrepreneurs looking to enter the online clothing space. But you’ll need to show a firm understanding of the industry, your target market, and the consumers you intend to serve if you hope to carve out a niche online.

As you begin writing your business plan, you should be prepared to go beyond the basics like your company description, focus and management team. While those are certainly important, the business plan gives you an opportunity to describe your store’s unique selling proposition and how you intend to set it apart from competitors.

How will you stand out from the competition?

You’ll definitely be asked what makes your business unique if you hope to secure any outside investment. So take the initiative and start detailing your store’s value proposition here. Maybe it’s that you sell popular clothing styles of old that most shoppers can’t find in stores these days. Or it could be that you emphasize sustainable sourcing and environmentally friendly packaging. The sooner you start thinking about your strategic advantages, the better prepared you will be to defend it to an investor or bank.

You will also need to conduct extensive Research into your target customers, including their demographics (age range, gender, income level and location) and psychographics (values, lifestyles, interests and personality traits).

Create a customer persona

One way you can do this is by creating what’s known as a Target Customer Persona. Basically, you’re creating a representation of your target market in the form of one ideal customer. To do this effectively, you will need to investigate their current online clothes shopping habits, pain points and customer experience expectations.

Then, realistically assess how your product offerings and brand values align with your ideal customer’s needs and desires. Adding this information to your business plan will provide a clear understanding of who you’re aiming to serve.

• Develop a Unique Brand and Product Offerings

In your business plan, document how you will create a unique brand identity that sets your online boutique apart from competitors. This includes developing a memorable brand name, logo, and tagline, as well as defining your brand’s values, voice, and visual style. 

Many stores offer customer retention incentives like loyalty programs. If you are considering strategies like reward programs or discounts for returning customers, use your business plan to determine which strategies make the most sense for your online store. It’s also an opportunity to consider the brand-building initiatives you might undertake to capitalize on these programs, such as personalized email marketing campaigns.

Consider your sales channel

Another consideration for your brand – and your business plan – is whether to host your online clothing store on an eCommerce platform or sell through a standalone website. Platforms like Shopify and BigCommerce streamline many aspects of the online shopping process, but have costs of their own that can grow as you try to scale your business.

In your business plan, consider the costs of choosing a platform versus the boost you can receive using a host like Shopify to let it handle logistics like order processing. Then, outline the platform you’ve chosen and the reasons for your decision.

• Create an Online Marketing Strategy

Your business plan is the place to detail your plan for effectively capturing the attention of your target audience and converting them into loyal customers. In your business plan, detail your marketing budget, reintroduce your target customer traits from earlier, and detail the channels you’ll use to reach them. In a space with as much competition as online clothing, you will likely need to use a combination of tactics to reach your target audience. These might include:

Social media

Platforms like Instagram, Facebook and Pinterest are powerful tools for reaching and engaging your target audience. Explain how you’ll develop a consistent posting schedule, tailor content for each platform and leverage paid advertising to reach a wider audience.

Email Marketing

In your business plan, explain how you’ll nurture relationships with customers and promote new products through email marketing. Discuss your plans to create engaging email content like newsletters, promotional offers and new product announcements. Consider how you will measure the success of your email campaigns through metrics like open rates, click-through rates and conversions.

Search Engine Optimization

While it may seem difficult to find the time to create high-quality, engaging content for your audience while running your business, it can be a valuable tool for attracting customers. Whether it’s blog posts, videos or podcast episodes, targeting certain Google search keywords that resonate with your audience will make your website more visible to them as they shop online. Be sure to discuss in your business plan how you will measure the success of your content marketing efforts through metrics like traffic, engagement, and conversions.

Partnerships

Do you know anyone who loves your style? If so, they could be your next influencer. While people tend to think of big-name celebrities when they think of influencers, establishing partnerships with customers who resemble your target audience can help generate exposure and build credibility for your brand. In your business plan, discuss how you might offer giveaways, collaborate on content or produce sponsored posts to showcase your products and build social proof.

• Plan for inventory management and fulfillment

No matter how popular a brand you develop, you will need to carefully manage processes like inventory management and order fulfillment to avoid disasters like running out of stock or facing delivery delays.

In your business plan, describe all of the logistical aspects of your business and the systems you will put in place to manage them. These include: inventory sourcing channels, whether they are wholesale suppliers or local artisans; inventory management methods, such as dropshipping, holding inventory in a warehouse or using a third-party fulfillment center; packaging and shipping methods; and return policies.

In addition, describe your contingency plans for how you will manage orders in case something goes wrong with one of your third-party suppliers or other partners.

• Set financial projections and funding requirements, then be ready to change them

A key component of any business plan is a detailed financial analysis. Financials can be intimidating for any business owner, but you will need to demonstrate in your business plan that your online boutique clothing store can be both profitable and financially stable. Proving that you have at least thought through the long-term vision for your business could be the difference between securing a loan or investment, or not.

Base your financial projections – ideally a 3-5 year forecast –  on market research and up-to-date industry data. You may also want to consider different scenarios such as best-case, worst-case, and most likely outcomes to account for potential fluctuations.

Prepare for changing customer preferences

Of course, trends evolve quickly, and what’s fashionable at the beginning of your forecast may be passé by the next season. So staying ahead of fashion trends and understanding the competitive landscape will help with your forecast as you go.

As you research trends in the fashion industry, respond to the changing needs of your customers, and identify gaps in the market that your online boutique can fill. As you do so, you may need to change where you source your clothing, or your marketing strategy, or your distribution channels. All of those will affect your financial forecasts. But that’s a perfectly normal part of the business planning process..

• Download a free online boutique clothing store business plan template and example

To help get your business started, check out our free online boutique clothing business plan template . You can download this document in Word form and use it as a foundation for your own business plan.

In addition to these resources, you may want to brush up on how to write specific sections of a traditional business plan. If so, take a look at our step-by-step guide on how to write a business plan .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Superdry landlord M&G eyes challenge to rescue plan

The owner of superdry's flagship oxford street store has drafted in lawyers to scrutinise proposals aimed at keeping the fashion chain afloat, sky news learns..

By Mark Kleinman, City editor @MarkKleinmanSky

Friday 26 April 2024 15:52, UK

The owner of Superdry's flagship store in central London is weighing a challenge to a rescue plan that would impose steep haircuts on the struggling chain's landlords.

Sky News has learnt that M&G, the London-listed asset manager, has engaged lawyers from Hogan Lovells to scrutinise a restructuring plan launched by Superdry earlier this month.

The move by M&G, which owns the fashion retailer's 32,000 square foot Oxford Street store, will not necessarily result in a formal legal challenge.

However, property industry sources said on Friday that such a move was a possibility.

Other Superdry landlords, including Landsec, are understood to be monitoring the situation ahead of the disclosure of detailed proposals next month.

The property groups are believed to have been alarmed by the absence of their participation in a mechanism to allow creditors to benefit from any future recovery in the retailer's performance.

The restructuring plan will not entail immediate shop closures but will impose sizeable rent cuts on landlords of dozens of Superdry outlets.

In a statement, a spokesman for the retailer said: "The Restructuring Plan is a process designed to secure the long-term future of our business.

"We hope our landlords will support us as we embark on putting in place our new target operating model."

M&G declined to comment.

Read more from business: British cars flow into states neighbouring Russia Trade war brewing over electric cars NatWest profits fall

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Alongside the rent cuts, Superdry plans to raise funding underwritten by founder Julian Dunkerton and delist from the London Stock Exchange.

The Cheltenham-headquartered company's survival bid, which will require the approval of its creditors, has been launched after weeks of talks about a takeover by Julian Dunkerton, its founder, were aborted.

Shares in Superdry have been under relentless pressure in recent months as the scale of its financial challenges has been exposed.

On Friday, they were trading at around 7.4p, giving the indebted company a market capitalisation of less than £8m.

It recently agreed increased borrowing capacity with Hilco Capital, one of its existing lenders, while it also owes tens of millions of pounds to Bantry Bay.

Mr Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares.

In recent months, Superdry has raised cash by offloading its brand in regions including India and Asia-Pacific.