Clothing & Fashion Business Plans
Did you know each of these plans was created in LivePlan? Learn More
Boutique Business Plans
- Bridal Shop Business Plan
- Lingerie Shop Business Plan
- Maternity Clothing Business Plan
- Womens Clothing Boutique Business Plan
Clothing & Fashion Design Business Plans
- Clothing Manufacturer Business Plan
- Custom Printed T-Shirts Business Plan
- Outdoor Gear Designer Business Plan
- Surf Clothing and Sportswear Business Plan
Clothing Ecommerce Business Plans
- Clothing E-Commerce Site Business Plan
- Ecommerce Fabric Store Business Plan
- Maternity Clothing Online Business Plan
Clothing Retail Business Plans
- Clothing Retail Business Plan
- Family Clothing Business Plan
- Kid's Clothing Store Business Plan
- Lingerie Retail Clothing Store Business Plan
- Specialty Clothing Retail Business Plan
- Sports Clothing Retail Shop Business Plan
Shoes Business Plans
- Athletic Shoe Store Franchise Business Plan
- Skateboard Gear Retail Business Plan
- Women's Boutique Shoe Store Business Plan
- Women's Shoe Store Business Plan
Starting a clothing business requires a passion for clothing design and fashion. But in order to create a successful fashion line that lasts, you also need a business plan. If you’ve ever wanted to break into the fashion business, you may want to check out our clothing and fashion sample plans.
Shops, boutiques, clothing design, and eCommerce are all covered here to give you ideas and planning elements to successfully launch your own business.
Or to develop a more modern business plan, that fits your retail business perfectly we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance that helps you spend less time planning and more time designing the next big fashion trend.
Plan, fund, and grow.
Easily write a business plan, secure funding, and gain insights.
Achieve your business funding goals with a proven plan format.
Fashion Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their fashion businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a fashion business plan template step-by-step so you can create your plan today.
Download our Fashion Business Plan Template here
What Is a Business Plan?
A business plan provides a snapshot of your fashion business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a fashion business or grow your existing fashion business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your fashion business in order to improve your chances of success. Your fashion business plan is a living document that should be updated annually as your company grows and changes.
Source of Funding for Fashion Businesses
With regards to funding, the main sources of funding for a fashion business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a fashion business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a fashion business.
Finish Your Business Plan Today!
How to write a business plan for a fashion business.
Your business plan should include 10 sections as follows:
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of fashion business you are operating and the status; for example, are you a startup, do you have a fashion business that you would like to grow, or are you operating a chain of fashion businesses.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the fashion business industry. Discuss the type of fashion business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of fashion business you are operating.
For example, you might operate one of the following types:
- Fast Fashion : this type of fashion business identifies current fashion trends and brings them to market quickly.
- Haute Couture : this type of fashion business offers high end fashion.
- Bespoke Tailoring : clothing designed for the customer as the result of a consultation.
In addition to explaining the type of fashion business you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
In your industry analysis, you need to provide an overview of the fashion business. While this may seem unnecessary, it serves multiple purposes.
First, researching the fashion business industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards street fashion, it would be helpful to ensure your plan calls for a line of urban clothing.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your fashion business plan:
- How big is the fashion business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your fashion business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section of your fashion business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of fashion business you operate. Clearly baby boomers want different fashion items than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other fashion businesses. Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes non-fashion oriented apparel and used apparel among others.
With regards to direct competition, you want to detail the other fashion businesses with which you compete.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior products?
- Will you provide products that your competitors don’t offer?
- Will you make it easier or faster for customers to acquire your products?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a fashion business plan, your marketing plan should include the following:
Product : in the product section, you should reiterate the type of fashion business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to clothing, will you offer items such as accessories, shoes, bags, etc.?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.
Place : Place refers to the location of your fashion business and your distribution method. Document whether you will sell your fashion items yourself through a storefront and/or website. Likewise, document if you will sell your products via distributors and who you expect they will be.
Promotions : the final part of your fashion business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Making your fashion business’s storefront (if applicable) extra appealing to attract passing customers
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Social media advertising
Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your fashion business such as serving customers, procuring inventory, keeping the store clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
Management Team
To demonstrate your fashion business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in the fashion business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in fashion businesses and/or successfully running retail and small businesses.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your fashion business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a distributor approached you with a $100,000 order, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a fashion business:
- Location build-out including design fees, construction, etc.
- Cost of equipment like furniture, sewing machines, etc.
- Cost of maintaining an adequate supplies and inventory
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.
Fashion Business Plan Summary
Putting together a business plan for your fashion business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the fashion business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful fashion business.
Download Our Fashion Business Plan PDF
You can download our fashion business plan PDF here . This is a business plan template you can use in PDF format.
Finish Your Fashion Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your fashion business plan?
With Growthink’s Ultimate Fashion Business Plan Template you can finish your plan in just 8 hours or less!
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success.
Click here to see how our business plan consulting for small businesses can create your business plan for you.
Fashion Business Plan FAQs
What is the easiest way to complete my fashion business plan.
Growthink's Ultimate Fashion Business Plan Template allows you to quickly and easily complete your Fashion Business Plan.
Where Can I Download a Free Fashion Business Plan PDF?
You can download our fashion business plan PDF template here . This is a business plan template you can use in PDF format.
Other Helpful Business Plan Articles & Templates
- Become a client
Stay updated with our newsletter, including job alerts, career advice and event invites. You can unsubscribe at any time.
How to write a fashion business plan
A successful plan will lay the groundwork for transforming an idea into a functional business, and help get investors on board.
What do fashion giants on Fifth Avenue and budding designers working in basements have in common? Before they started manufacturing dresses and hiring app developers, they all had a business plan. Perhaps you want to turn your creative vision into a fashion label. Or you’re ready to disrupt the old guard with a game-changing startup. But you have to start with a plan.
“The business plan should come before your designs,” says Hillary France, founder and chief executive of Brand Assembly , an organisation that helps emerging designers build their businesses. For fashion startups with resource constraints, a plan helps crystallise what, how and to whom you’re selling; establishes what makes you unique; identifies your competitors; and most importantly, shows that you can make money.
Research the market
For creative types, writing a business plan can feel a little overwhelming. But business courses and access to market research and competitive analysis are available. Aspiring fashion executives based in New York, for example, can apply for one of the 25 spots in the FIT Design Entrepreneurs annual programme. Market research firms like Euromonitor and NPD also regularly release reports about market trends and growth rates. While these can cost over $1,000, excerpts are readily available.
It can also be helpful to consult blogs written by venture capitalists like Fred Wilson and Brad Feld for advice on writing a business plan, says Sutian Dong, a partner at Female Founders Fund , which has invested in Rent The Runway and Eloquii . Not only do these provide general advice, but they’re also a window into how successful investors think.
But not all research can be done behind a screen. “It’s about doing the legwork,” says Haeni Kim, founder of direct-to-consumer womenswear label Kitri . Kim thought she had a niche as a “bridge between high street and contemporary”, so she visited bricks-and-mortar shops to gather data and experiences from sales associates to confirm her hypothesis. Kaelen Haworth, the designer behind direct-to-consumer womenswear brand Second Sight , cold-emailed designers who found success in a similar space for advice and found that they were happy to help.
Use family and friends
When raising funds for a business, don’t forget that everyone consumes fashion. “Using people around you is very helpful and very eye-opening,” says Kim, who polled her friends and family via Survey Monkey to develop her deck of consumer insights.
That’s also the case when doing the actual work of plugging numbers into a business plan. Haworth suggests recruiting a friendly MBA student, either as a favour or for a minimal fee, to help create financial spreadsheets. “I’m much more visual, so for me to plug in a number — like, ‘I make 25 of this, what happens to my potential for profit?’ — is hugely helpful,” she explains.
But fashion is ultimately a visual business, and the plan could then lead to a prettier, summarised “pitch deck”, which is used to present the business plan to investors when asking for funding . The pitch deck can also be used to solicit advisory board members, who can use their experience to test a design vision against reality. J eanette Nostra , executive-in-residence at FIT’s Design Entrepreneurs programme, suggests pulling together an advisory board, which could consist of designer mentors, past professors and friends and contacts with experience in law and finance.
All of this requires patience. Kim and Haworth both estimate that putting their numbers and business plans together took around a year before launching their brands. Here’s a template, which should be organic and fit your business.
Executive summary
This section covers the “elevator pitch” for your unique idea as well as a one-sentence mission statement. Summarise your brand and explain what differentiates it. Also, quickly outline your target market, target revenue goals and timeframe. The executive summary should be written last — after all the numbers have been run. It should be no longer than two paragraphs.
Company overview
Here is where a brand presents its founders’ relevant experience: education, past jobs and unique skills. Also include the form of business entity , based on your location, and list any appropriate partners. Detail your product specifications and manufacturing process. Plus, include how often you will fulfil orders and where/how you plan on distributing and selling. Finally, list the significant challenges you anticipate facing.
Market analysis
This is a chance to show off meticulous market research: identify and detail the opportunity and size of your specific market, your competitors and your target customers.
Manufacturing process and operations
Determine and identify manufacturers and suppliers required to produce your line and detail the costs. Remember to include the costs of samples and account for currency fluctuation if suppliers and manufacturers are based overseas.
Marketing and distribution
Lay out what channels (wholesale, department stores, boutiques, direct-to-consumer) you will use to sell your product while detailing the launch timeline and marketing efforts. If you plan on hiring a showroom or distributor, explain that relationship and costs. Also, how will you scale the brand?
Whether calculated via Excel, Quickbooks or another number-crunching format, this section is crowned by the income statement, which lays out your revenues, expenses and profits and losses over a specific period. Also, present your three-year sales projection to illustrate annual growth plans and a cash flow statement to break down liquidity and assess funding needs for the future. Lastly, include a sheet detailing initial startup costs.
Further reading
Fashion Business Manual by Fashionary: A visual, step-by-step guide to launching and scaling a fashion label.
Blue Ocean Strategy by W. Chan Kim and Renée A. Mauborgne: Instead of battling your competitors, the authors describe how to identify and tap whole new areas for growth.
Employees First, Customers Second by Vineet Nayar: As a creative, Rokh designer Rok Hwang says this book was “essential” for understanding how to build and manage his business.
Lead image by Sandra Semburg.
To search curated roles and be informed about new opportunities, register here .
Comments, questions or feedback? Email us at [email protected] .
Vogue Business 06 Jan 2022
Vogue Business 02 Dec 2021
Vogue Business 19 Nov 2021
Vogue Business 04 Nov 2021
get the super secret industry document that will cut your sourcing time in half
- DONE WITH YOU COACHING
- PRIVATE CONSULTING
- FREE SOURCING DOC
- SUSTAINABLE FABRICS 101
- FASHION STARTUP BLOG
- WHO I WORK WITH
- GET TO KNOW ME
How To Create A Clothing Line Business Plan - w/ Template
Published: May 06, 2020 Updated: February 27, 2023 19 min read 37 Comments
Before you can get started on your business plan… Have you set up your clothing line budget ? If not, check out this article. Once your budget is set, come back to here and get to work on your clothing line business plan.
But, before we get started.
Have you heard about the super secret document that everyone in the fashion industry uses, but no one is talking about? Probably not. That is because you can't find it on Google or Instagram (believe me, I've tried).
It's a form I have used for over 13 years at every job I have ever had. Literally everyone from brands to fabric suppliers use it, but you can't find it anywhere publicly.
The best part? It can cut your sourcing time in half, and save you tons of money in product development ! This is the kind of info consultants charge the big bucks for. And, I'm giving it away for free until the end of the month.
So, get ready to make fashion startup life a whole lot easier, and GRAB YOUR FREE DOWNLOAD OF THE NOT SO SECRET SOURCING DOC HERE
What this article will cover:
- Executive summary
- Company overview
- Product/services
- Marketing strategies
- Sales strategy
- Competitive analysis
- Production plan
- Operation plan
- Financial analysis and projections
Now, Don't Skip This Step
A clothing line business plan is a crucial (and often forgotten step) that is needed for creating a clothing line. The plan will help you define and streamline both your long term and short term goals. It will also help you set a path to reach those goals. Not only does a business plan help you by setting a road map, but it also shows suppliers, investors, and other businesses that you are serious about your company by having a profitable plan of action.
As a bonus to this guide, I use my brand, virtue + vice, to give step by step examples, and show you how it's done. And, there's more, I have a free downloadable template to help you get started!
A Business Plan Is A Living Document
One of the most common mistakes I see founders making is that they will write their business plan, launch their product, and then never look at it again. Please don't do this. A clothing line business plan is a living document. You should use it to check in with yourself and make sure that you are meeting your goals. You can also make changes to it as your business changes.
As we all know, we can plan, and plan, and plan, but we can not plan for the chaos of life happening. So, as situations change, go back, update your plan, and re-strategize.
Keeping your business plan handy even after your launch will set you up for accountability and success.
Lastly, before we get started I am going to warn you. Making a clothing line is a lot of fun. But, it's also a lot of work, and (unfortunately) writing this business plan is the work portion of the job.
How To Write A Clothing Line Business Plan
Some business plans for fashion brands are extremely long, repetitive, and in my opinion kind of convoluted. They are a lot of words, that sound fancy and business-like, but are kind of just saying the same thing over and over. That is why I am keeping this short and brief. I have heard of people spending 6 months to a year working on a business plan. That is far too long. A month is enough - just keep it simple and don't get carried away with jargon and corporate speak.
So, let's get started.
Sections 1 + 2: Executive Summary and Company Overview
An executive summary and company overview are basically a recap of your overall business plan. While they are the first section of your clothing line business plan, you actually want to write them last. So, we will circle back at the end this guide.
But, what you can do is work on your companies mission, vission, and values.
Clothing Brand Mission Statement
Why are you starting this company? How will your company change the market place, or even the world?
Vision Statement
Vision statements for fashion companies ask the question - What does success look like to you? Is it money? Or, is it positively impacting people's lives? How will you measure your success in the world?
Core Values
What are your companies guiding principles. What values are at your core that determine and influence your business decisions?
Mission, Vision, Values Workbook Page
Section 3: product and services.
This section should include…
- A description of the product/ service
- Features and benefits
Development
What is the product or service.
So, what is it that you are actually selling? And, how will you make money? In this section, you want to be clear about the type of product or service you are offering and how that will lead to profits.
My Service Offering For virtue + vice
virtue + vice is a consulting agency dedicated to helping companies clean up their supply chains. Target partnerships are existing and established brands with strong supply chains that need help creating transparency or sourcing ethical and sustainable components, as well as, startups who are focused on creating conscious products.
virtue + vice profits through consultancy fees paid by the customer. virtue + vice specializes in the following - sourcing, product development, production management, sustainable design, supply chain transparency, and ethical and sustainable storytelling.
To Recap Products + Services...
See, it's quick and easy. What am I selling? My consultancy services. How am I making money? Through consultancy fees.
What Are The Features + Benefits?
What are you offering that makes your company unique or special?
virtue + vice features and benefits
One key feature that separates virtue + vice from other consultancy firms is our sliding scale for pricing. Because we believe in our mission, virtue + vice pricing structure is on a sliding scale based on a companies profits. We choose to operate like this as a way to give back to small businesses, which we believe in, who might not have the finances to pay our full rates that larger corporations can afford.
Secondly, virtue + vice operates transparently with our customers. Our supplier is your supplier. Many consultancy firms keep their supplier contacts close to the vest and do not share, we welcome our clients to come and visit our partner factories in China and India, and work directly with them
To recap...
Again, super quick and easy. What makes us different. One, we offer sliding scale prices to help small businesses (we aren't only about corporate life). Two, we work transparently without supply chain secretes like many other sourcing agents.
This section answers what happens when your company grows. Or how business people like to ask "how do you plan to scale".
How does virtue + vice plan to scale?
At about 20 clients, that is manageable for me as a solo-preneur. But what happens when I have 100 clients or more? How does my company grow?
As my company grows I plan on hiring support staff in three key areas. Product development, production, and storytelling. Product development employees will assist in taking our client's projects from initial inception, all the way through sourcing and sample development up until production. The product team member will be responsible for production, and shipping logistics of that production order. And, the storytelling team will assist our clients in telling the story of their products through photos and video for social media, copy, look books, line sheets, website design, etc.
I am actually excited to soon been announcing my first hire on the product development team (but more on that on the about us page.)
So, here I have made a plan for the future. What happens when it gets to be all too much for me alone? Who do I hire to help? I have chosen to separate tasks into three main categories that make the most natural sense for my business model.
Section 4: Marketing Strategy For Clothing Business
- Market analysis
- Target customer analysis
- And, your unique selling proposition that makes your product and business different from everyone else's
Market Analysis
Do you understand the market that you are getting into? Like, do you really understand it?
This section of your clothing line business plan starts to get into proving that there is a need for your product or service. Even if something sounds great to you, if there are no customers that want it, then there won't be sales, and you won't have a successful clothing brand.
Here is how I break down my market analysis for virtue + vice
Sustainable and ethical fashion is a trend that has been growing year over year. In this article from Sourcing Journal they reported: "Overall, searches including sustainability-related keywords increased 75 percent year-on-year, amounting to 27,000 searches for sustainable fashion every month, according to the report."
This means that there is currently a sizable market share, that is growing rapidly for brands selling sustainable products to customers. And, those brands need help changing their traditional supply chain models to tap into the growing trend of sustainable fashion.
So, to recap.
What's the market doing, and how does my business play a part in that? Sustainable fashion is a proven growing trend, here is a little industry data to back that up. And, this is how my business plans to be part of that. Instead of choosing to sell direct to consumers, we are choosing to help brands that do.
Target Customer Analysis
Who is your target customer, who would want to buy your brand?
Here is who I target
virtue + vice plans to approach brands and companies that founder Melanie DiSalvo has been working with for the past decade. Because she already knows the ins and outs of their supply chains, she hopes to offer valuable changes and suggestions on targeted areas to help them become more ethical and sustainable.
Now, I understand that everyone does not have a built-in customer base like me. One of the most beneficial pieces of advice I can give is that you should go niche, and not broad.
To simply say "we are targeting people interested in making more sustainable and ethical purchases". Well, every big brand from H&M with their conscious collection to Walmart with their recycled t-shirts is doing that.
What makes you special? Pick something, one thing that makes your customers different. Maybe they are really into composting, so all of your materials are compostable. Maybe they are really into clean water, so your entire supply chain is dedicated to conserving water resources.
Again, I am saying this again, because it is so, so, so important. You can't be everything to everyone. Choose something laser-focused, and then as your brand grows you can expand into other areas.
How Are You Unique?
Did you see what I did there? By choosing a very niche target customer, you have already made yourself unique, and you stand out from the crowd.
How is virtue + vice unique?
virtue + vice is unique because of founder Melanie DiSalvo's extensive time spent living and working in countries like China, India, Taiwan, the Philippines, and the Dominican Republic. She has spent over 1/2 of her career working overseas and that offers her a unique and detailed first-hand perspective on how the fashion industry really works and the best ways to implement change quickly and effectively.
My tips for this section.
Don't be afraid to get a little braggy. Why does your customer want to buy from you? What makes your product so great that it's better than what is already out there on the market. Don't hold back.
Section 5: Sales Strategy
This section should include...
Sales Goals
Price strategy.
- Investments into sales
What are your sales goals per quarter? For the year? The next 2-5 years? What is your pricing strategy? How will you sell? Do you have an online clothing store? Do you have plans to hire support staff for sales, as a showroom, salesperson, or go to trade shows? Will you open a boutique? Will there be promotional campaigns to support sales like partnerships, advertising, fashion shows, and events, etc.
How much, and how often do you need to sell to turn a profit? At what rate do you plan to grow?
This is what I have in place for virtue + vice
I am uncomfortable sharing that. Here is what I will tell you. My consultancy business is strong enough that I am able to offer all of this information that some other companies charge hundreds or even thousands of dollars for, for free.
My business is healthy enough that I am able to give back to the fashion community at this time.
Are you going to try and sell tons of product at a low price, or fewer units at a higher price? Do you plan to drive sales through special discount promotions?
As I mentioned earlier virtue + vice works on a sliding scale so we are able to help smaller brands build their businesses.
How Will You Sell?
Are you direct to consumers, selling online? Are you business to business? Will you wholesale, will you have a distributor? What is your plan and break down?
At the moment virtue + vice relies mostly on word of mouth and referrals.
Do you need to hire support staff? What does that staff need to do their job? Can you sell on your own, or do you need help from a pro? For example, if you hire a showroom, not only will you have the monthly cost of the showroom, plus a cut of sales that the sales agent will take. But, you will also have fees to be in the showrooms booth at trade shows. Maybe at the tradeshows, you will need some special promotional items like look books, line sheets, or even a giveaway so buyers remember you.
It Costs Money To Make Money
All of the costs associated with sales, need to go back into your price strategy. Price strategy is like a balancing act. You need to invest in it, but you need to make sure that your sales are more than the investment so that you can be profitable.
This is the hard part
This part of your clothing line business plan should probably take the most time, Really research what everything costs, what your product will cost to make, etc and come up with a well-researched plan.
How I invest in my sales
At virtue + vice I do everything myself. But, people reading this that want to sell a service like me, it's important to remember that your own personal time costs something. While it's not a salary, or an actual expense, the hours that you devote to generating sales for your company should be compensated for.
Section 6: Competitive Analysis
- SWOT analysis
How Do You Compare To The Competition?
This is where you get a little stalkerish. In this section, you need to identify your competition and then the advantages and disadvantages of your competitors. You will need to research things like how long they have been in business, their annual sales (if they are public). How they market themselves. Then compare your price, quality, and general vibe to theirs. Maybe you are selling the exact same thing but have a totally different target customer and vibe you are putting out.
One of the best ways to get you started is through a SWOT analysis.
Ok, so let's get to it with virtue + vice
Who is my main competition?
I just did a quick google search of keywords that I thought my compeators would rank for. And, let's call my top three competitors A, B, and C. Luckily I do not know any of these companies or people personally. So, I don't have to hold back in this analysis.
Before we dive into the SWOT analysis, here is a little info about each company.
Focuses on scaling small businesses.
The website was launched in August of 2018.
And, the founder just so happens to have no information about her experience. But a quick google and Linkedin search shows her background is in marketing for telecommunication companies. Good for them with SEO, but they don't have any real experience in the industry.
Dubs themselves as a strategic advisory for fashion and apparel brands. Offering a full range of different services.
The founder started her sustainable and ethical fashion consultancy business over 8 years ago with 20 years of fashion industry experience. And, has worked with many small, yet well known sustainable fashion brands.
A many different hats consultant that can help brands with things from marketing, so supply chain, to design.
The founder has over 20 years of design experience working with some seriously well known household names that do not have a focus on sustainability.
Competition is a good thing
A lot of times when people start their SWOT analysis they see other people doing what they want to do and they give up.
Don't do that. Competition is good.
Two of these ladies have been in the clothing business for over 10 years working in sustainable fashion consulting. That means it's a good market to be in. They have been making living out of sustainable consulting for a decade. So, business must be good!
Think about fashion in general. There are so many brands, like super successful American Eagle, which was basically just a knock of Abercrombie back in 2003. Don't' let competition discourage you.
The point of SWOT is to figure out your advantages and how to position your brand in the market.
I am working on writing a full SWOT and fashion business competition analysis post, that will be coming soon. For now, I will just quickly go through one example. For this article, I have chosen Company B because their business most closely resembles mine.
How To SWOT
SWOT stands for strengths, opportunities, weaknesses, threats.
Like I mentioned, a lot goes into a SWOT analysis. I am just doing a quick one here to give you a brief idea about what it is.
What advantages does your brand have?
virtue + vice is located in NYC, one of the fashion capitals of the world. Comapny B in New Zeland, has a much smaller fashion scene, and the geographical distance makes networking and partnerships more difficult.
I spend 1/2 the year in India. This keeps me close to my supply chains on the ground, and able to help clients with content about how their products are made as well as live updates. It also offers an added layer of authenticity.
Opportunities
Opportunity is a natural progression from strengths. How can you use your strengths to become even stronger?
My geographic strength of being in NYC leads to more networking opportunities and the ability to attend more fashion events. My life in India allows me to be on the ground working directly with factories so I am first in the know with the latest news.
Company B has been at this longer than me. Almost exactly twice as long as me. Also, one of the things that I thought made me unique - my long history working with well-established brands is also a strength of Jacinta's. We have even worked with some of the same brands!
Threats, analyze what obstacles you face because of your weaknesses. For me one of virtue + vices threads is authority. The fact that Company B has been in business for twice as long, gives them more authority in this space.
Now there are tons more strengths, opportunities, weaknesses, and threats that I could add. And I would recommend doing this exercise for at least 3-5 competitive brands. Again if you want to learn more I will be putting out a full competitive analysis guide with a lot more details and info on how to do a proper SWOT. But for now, I think you get the idea.
Section 7: Production Plan
- Company development, sales, production, and delivery calendar
The Importance of Timelines
This is basically a development and inventory calendar. How many seasons a year will you produce? When will you develop them? Sell them? When will you produce them? And, when will they sell in stores, and even be discounted?
virtue + vice follows our customer's timelines. So, what I am working on for them, depends on their business model. Some of our customers are seasonal, and only put out one main collection per year. Some two seasons, and some up to seven. And, our clients are all over the world. So our southern hemisphere clients are working on a totally different season than brands in the North.
For example, I am working on everything from Summer 2020 (happening like now!) for quick deliveries to Fall 2021, that's not this fall coming up but the fall after it (18 months from now).
How To Set Up Your Calendar
As a brand, I would recommend setting up your calendar around industry tradeshows to start out. The below break down is for America's sales season.
There are 6 major fashion seasons. They are spring, summer, fall, winter, holiday, and resort.
And, there are 4 main dates you need to keep track of for each season. They are development dates, sell dates, and production dates, and delivery dates.
development dates
Are the times you will be developing your product for the next season. You are going to want to plan for 3 months of development time before your sell dates.
Are the dates there will be trade shows and other sales opportunities for that season.
production dates
Are when you need to start producing the goods, and when they need to be finished by.
delivery dates
Are when the goods need to be delivered to your customer. Remember it can take over a month to ship goods from a factory if you are shipping by sea, so factor that in.
the fashion calendar
SPRING Development Dates - May - August Sell Dates - August - October Production Dates - October-January Delivery Dates - January - March
SUMMER Development Dates - July - September Sell Dates - October - January Production Dates - December - February Delivery Dates - March - May
FALL Development Dates - October - December Sell Dates - January - March Production Dates - April - June Delivery Dates - July - August
WINTER Development Dates - December - January Sell Dates - March - April Production Dates - June Delivery Dates - September
HOLIDAY Development Dates - February - March Sell Dates - May - June Production Dates - July Delivery Dates - October
RESORT Development Dates - March - May Sell Dates - June - August Production Dates - July - September Delivery Dates - November - January
Get Detailed
But, this section needs to go even more in-depth than just a timeline.
To understand what goes into product development, production, and sales and marketing schedule I am working on writing full courses on all of those coming soon!
Section 8: Operation Plan
- Your company budget
What Do You Need To Keep Your Business Running On A Daily basis?
Remember that budgeting guide I wrote ? This is where all that info goes. Filling out this part of your clothing line business plan should be easy if the budget was done correctly.
virtue + vice operatin plan
I work from home, so that saves me a lot of money. I don't have full-time employees, so that also requires me to have less capital for salaries. Where I personally spend most of my money is on travel.
And, no it's not the glamorous kind of travel. It's me booking a ticket at 6 am for a flight to India at 9 pm that same day so I can go straighten out some sort of supply chain issue we are having in person.
Do I have to travel? Well, that's 50/50. A lot can be done remotely. But, there is always a special touch that comes when you do business in person. You will find that almost any time in business when you are face to face the dynamic is different. Even just taking a conversation off of email and onto the phone can makes huge difference.
Necessary recurring monthly costs for me are the website domain, hosting for the website, apps, and programs I use like Grammarly, Adobe, and quick books.
Basically you can take your budgeting template and use it for this section. Yay! The work is already done for you.
Section 9: Financial Analysis + Projections
Again, this is where budgeting is going to come in handy. You might even want to hire a professional bookkeeper or accountant for help with this.
- The money you need to get started
- How you will use that money
- The income you hope to make off of your products
- And, balance sheet
Financials make most peoples heads spin, that is why I definitely recommend talking to a pro for this part.
At virtue + vice I have a full-time bookkeeper and an accountant. I am uncomfortable sharing my companies finances publicly. But, if you need help with this section, that's why I suggested at the start of this article to help get your financial plan for fashion business in order before even starting the business plan.
Back to Sections 1 +2: Executive Summary + Company Overview
Now back to the top. Remember, we skipped the executive summary and company overview. Now that we have mapped out our entire business plan we need to recap everything by writing these two summaries.
Executive Summary
This is where you can hook potential investors. It's the first section anyone reads of your plan, so make it clear and quick.
Here is mine for virtue + vice
virtue + vice is a consultancy firm dedicated to helping companies clean up their supply chains. We are located between NYC and Goa, India. Our dual locations allow us access to the world's fashion capital, while our time spent in India allows for close monitoring of our supply chains.
Our goal for virtue + vice is to assist companies who are realizing that sustainable and ethical fashion is not a trend that is going away anytime soon, and want to be the process of cleaning up their supply chain. We offer support across all product life cycle steps including - conscious design, sourcing, product development, production, marketing and branding, retail and sales, storytelling, and content.
Key things to include in your executive summary
What you do. Where you are located. Benefits of your location. What you are selling. Why what you are selling is a great idea. Again, it's ok to get a little braggy here.
Company Overview
You can use this part to dive a little deeper into you and why you are starting your brand. Who are you? Why this product? How are you qualified to do this, etc? Why are you designing the type of products you are designing (hint, hint, market research). Etc...
this is my company overview for virtue +vice
virtue + vice was founded by Melanie DiSalvo. In her own words
"After working in fast fashion for 7 years I left my position as Director of Product Development with the goal of helping brands clean up their supply chains.
At the time I had a great salary, was working my way up the corporate ladder, under 30 and already had a director's title, and was traveling the world to developed and produce products for brands like Walmart, Target, Ralph Lauren, and Levi's to name a few.
The problem was that I saw and learned too much about how our clothes are really made in dark corners of the world.
So, I made it my goal to expose the industry by educating curious customers and help brands choose better supply chain partners. I have been featured in publications like WWD, VOX, Sourcing Journal, and more. And, was a speaker at SXSW."
virtue + vice aims to target clients from the fashion industry with well-established brands as well as startups to aid them in supply chain transparency and creating conscious products for this growing market share. virtue + vice will work with each client individually to meet their seasonal needs.
We believe our strength is our 10 years experience in this industry and the supply chain partners we have developed relationships along the way. Our plan. is to operate out of NYC and India for the foreseeable future where our founder has homes, and hopefully to expand to a third location in China in the next 5 years.
We believe that our dedication to quality and transparency, along with a sliding consultancy rate, will keep us profitable in years to come.
company overview recap...
See what I did here? I spoke more about myself and created a little background story. Then I hit all the other points of the business plan quickly - marketing, sales, competition, production, operation, financial.
And, We're Done!
And there you have it. A clothing line business plan. I hope this helps. After coming across so many generic business plan templates online, I was inspired to write something a little more intimate. I really wanted to show you what goes into making a business plan, and in the spirit of transparency open up about how my business works.
Remember, business planning is a lot of hard work. But, when clothing brands put in the effort at the start of their business, they have a much higher chance of success and growth.
37 Responses
Sandeep Kaur
January 30, 2023
Thank you so much for the wonderful information regarding a valuable business plan and it’s different stages. Thanks again
October 18, 2022
Thank you so much for the advise I would like a guide on my business plan Thanks
Opeyemi Kadri
This piece is so helpful. Thanks for sharing. God bless
August 02, 2022
Very detailed and understanding
mena cashback
June 17, 2022
You are so awesome! I do not believe I’ve read through something like that before. So wonderful to discover somebody with original thoughts on this subject matter. Really.. thank you for starting this up.
Adeola Olatokun
June 12, 2022
This is quite detailed and straight forward
May 10, 2022
I’m more motivated now having an overview of what to begin with and move forward in my business thank you so much
Ochiaka Amaka
April 29, 2022
Your advice is simple and legendary
Ikotun Deborah
April 26, 2022
Thanks so much, the business plan guide is super simple and straight forward.
Narcisse Tuyizere
Thanks so much for your amazing advice as well your ideas support in Fashion industry
April 25, 2022
I need help
March 28, 2022
Hi Patrick! To work with me check out the 6-month coaching program – https://launch-my-conscious-line.mykajabi.com/
Morning Thank you for your advices and make it easier for us whom wanna start a business.
I would highly appreciate your services via finance part..I am into sneakers, starting my own sneaker brand because. I am a footwear designer.
Looking forward to hearing from you
Abegunrin margaret oluwabusayomi
March 22, 2022
This is a nice one This information is very useful
Momoh Alpha
March 18, 2022
I am so much pleased to have come across this wanderful write up of yours which helps me greatly to set up my business plan.
Fredy Ngbanzo
thank you looking forward to work with you in the future.
Hilda Chimanayi
January 10, 2022
This is very helpful I am starting my clothing line soon for my company so I needed ideas of writing the plan, I found it here
January 07, 2022
Thanks this really helped me,I had no idea on how to start the bussiness plan but now Im ready to go!!
Josh Rasmussen
December 13, 2021
Thanks for this body of work. Much appreciated.
Oyinkule Omemu
December 12, 2021
I am completely blown away. So glad I saw this. Great Work.
Itumeleng Mathosa
December 10, 2021
This is really helpful thank you so much
November 25, 2021
Thanks for this I leean alot
November 16, 2021
I just learned some of important things, thank you so much
Tebogo Ngobeni
November 12, 2021
Wow this came in handy I think after reading the whole thing I am even more fuelled up. Thank you very much.
November 08, 2021
Very interesting
November 06, 2021
Thank you so much for your training, I have understood well hope am going to be the best seller clothing in my country thaxs so much
November 03, 2021
this really helped me .Am 20 and really trying to start my own brand was stuck a lil bit but now i guess am ready to do it .thankyou
ella peters
October 26, 2021
amazing, super useful content!! thank you very very much!!
Saratu Asuku
October 13, 2021
This is real good. Thanks
September 13, 2021
Thank you so much for this content, it is exactly what i needed.🙌🏼
September 11, 2021
THANK YOU SO MUCH for creating such a detailed overview of a clothing line business plan. Phenomenal and incredibly helpful information.
Ebere Agwu Ifiala
This is so helpful and informative. I really do appreciate this leverage.
Snegugu Mdladla
July 31, 2021
Thank you so much Melanie. This is so helpful and thoroughly informing. Appreciate this!
Olubanji Motunrayo
June 24, 2021
Thanks so much for the tip, more wisdom
Melanie DiSalvo
March 21, 2021
Pamela, have you checked out the Free Course? There is lots of information about budgeting in there.
https://shopvirtueandvice.com/pages/start-a-clothing-line-free-course
Pamela Bouable
Hi my name is Pamela Bouable, I would please like guidance regarding my cash flow for my upcoming business. I have difficulties completing this section. I look forward to hearing back from you soon. Thank you very much
March 17, 2021
Thank you very much for enlightening me through this business plan. I pray you grow higher. Thanks again.
Leave a comment
Comments will be approved before showing up.
Example of a Business Plan for a Fashion Designer
- Small Business
- Business Planning & Strategy
- Business Plans
- ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
- ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
- ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">
How to Sell Candles Wholesale
How to start your own gift basket business at home, starting a small business boutique.
- How to Sell a Shoe Line to a Company
- How to Start Your Own Children's Wear Fashion Business
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.”
- Memphis Fashion Group: Your USP Is More Important Than Your Design
Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social media outreach. He has written primarily for the EHow brand of Demand Studios as well as business strategy sites such as Digital Authority.
Related Articles
How to design a fashion business strategy, how to open an apparel boutique, how to write a business plan in fashion design, business plan for a start-up clothing store, how to write a small retail business plan, what does a beauty supply business plan consist of, how to buy fashion for your retail store, how to write a successful cigar business plan, how to write a clothing boutique business plan, most popular.
- 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
Fashion Business Plan Template
Fashion business plan.
You’ve come to the right place to create your Fashion business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their fashion companies.
Below is a template to help you create each section of your Fashion business plan.
Executive Summary
Business overview.
Chic & Timeless is a startup fashion company based in Los Angeles, California. The company is founded by Elizabeth Miller, an experienced fashion designer who has gained a reputation for creating elegant, timeless pieces for celebrity clients. For the past ten years, Elizabeth has worked as a designer for a local boutique, learning the ropes in regards to client communication and business management. Now that Elizabeth has gained experience and a presence in the industry, she is ready to start her own company, Chic & Timeless. Elizabeth is confident that her fashion design experience combined with her organization and communication skills, will enable her to run a profitable fashion company of her own. Elizabeth is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a fashion boutique business – sales and marketing, budgeting and financial reporting, customer service, production, distribution, and quality control.
Chic & Timeless will provide clients with high-end, timeless fashion pieces that can be worn for years to come. Chic & Timeless will operate a brick-and-mortar boutique in Los Angeles for clients who prefer to shop in-store to receive tailored, personalized service. The Company will also run an online shop where customers from around the world can purchase pieces to be shipped to their homes.
Product Offering
The following are the types of products that Chic & Timeless will sell:
- Shirts & Blouses
- Pants & Skirts
- Shoes & Accessories
- Dress Shirts
Customer Focus
Chic & Timeless will target men and women in the Los Angeles area with disposable incomes. The Company will target individuals who are looking for quality made, wear for life pieces that never go out of style. No matter the customer, Chic & Timeless will deliver the best communication, service, and accessible fashion.
Management Team
Chic & Timeless will be owned and operated by Elizabeth Miller. Elizabeth is a graduate of California University with a degree in Fashion Design. She has over ten years of experience working as a fashion designer for another local boutique. Elizabeth will be the Company’s Chief Executive Officer and Lead Designer. She will oversee the design process from sourcing materials to ensuring finished goods are of the best quality possible.
Elizabeth has recruited a former colleague, Ashley Garcia, to be the Company’s Chief Operating Officer and help oversee Chic & Timeless’ business operations. Ashley has a Master’s degree in Business Administration and several years of experience managing a fashion boutique. Ashley will handle the day-to-day store operations managing the sales team, finances, and client relationships.
Elizabeth and Ashley have recruited an experienced marketing director, William Martin, to become a member of the Chic & Timeless management team. William is a graduate of the University of Minnesota with a Master’s degree in Marketing. Elizabeth and Ashley rely on William’s expertise to execute the Company’s marketing plan and advertising strategies.
Success Factors
Chic & Timeless will be able to achieve success by offering the following competitive advantages:
- Skilled team of fashion designers and customer experience experts who will ensure each piece is of excellent quality and each client is satisfied with their purchase and shopping experience.
- Chic & Timeless gives customers multiple ways to shop by maintaining an exclusive brick-and-mortar boutique and an online store that will reach a wider audience.
- The Company offers one of a kind pieces with simple, chic designs and materials that can be worn for life.
Financial Highlights
Chic & Timeless is seeking $800,000 in debt financing to launch its fashion business. The funding will be dedicated towards securing the boutique and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:
- Boutique build-out: $340,000
- Equipment, supplies, and materials: $280,000
- Three months of overhead expenses (payroll, utilities): $160,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Chic & Timeless.
Company Overview
Who is chic & timeless.
Chic & Timeless is a newly established fashion company in Los Angeles, California. Chic & Timeless will be the first choice for quality made, timeless fashion pieces that can be worn for years to come. Chic & Timeless will operate a brick-and-mortar boutique in Los Angeles for clients who prefer to shop in-store to receive tailored, personalized service. The Company will also run an online shop where customers from around the world can purchase pieces to be shipped to their homes.
Chic & Timeless will be able to guarantee the quality and longevity of its pieces thanks to the latest and most innovative fashion design and manufacturing technology and a stringent quality control process. Chic & Timeless only uses high quality, sustainable materials and fabrics for its pieces. The Company’s team of highly qualified professionals experienced in fashion design and customer service will ensure all clients have a great shopping experience and receive only the highest quality apparel.
Chic & Timeless History
Chic & Timeless is owned and operated by Elizabeth Miller, an experienced fashion designer who has gained a reputation for creating elegant, timeless pieces for celebrity clients. For the past ten years, Elizabeth has worked as a designer for a local boutique, learning the ropes in regards to client communication and business management. Now that Elizabeth has gained experience and a presence in the industry, she is ready to start her own company, Chic & Timeless. Elizabeth is confident that her fashion design experience combined with her organization and communication skills, will enable her to run a profitable fashion company of her own. Elizabeth is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a fashion business – sales and marketing, budgeting and financial reporting, customer service, production, distribution, and quality control.
Since incorporation, Chic & Timeless has achieved the following milestones:
- Registered Chic & Timeless, LLC to transact business in the state of California.
- Has identified three potential retail spaces for rent on Rodeo Drive.
- Reached out to numerous contacts to include fashion designers, celebrity clients, friends, and family members to help spread the word about the new company.
- Began recruiting a staff of accountants, fashion designers, and sales personnel to work at Chic & Timeless.
Chic & Timeless Services
Industry analysis.
The global fashion industry is a $1.7 trillion market and the United States fashion industry is an estimated $370 billion market. According to industry statistics, the United States is the country that spends the most on fashion worldwide. The average amount spent on clothing per capita is $819 per year. Last year, people in the U.S. purchased an estimated 17 billion pieces of apparel. China is the next biggest fashion consumer after the U.S. China’s per capita apparel spending is equivalent to USD $257 per year.
The fashion industry can be broken down into segments by gender. The global womenswear segment is valued at $800 billion and is expected to grow by 5% over the next five years. The global menswear segment is valued at $483 million.
One of the biggest challenges and opportunities for the fashion industry is the impact fast fashion has on the environment. The fashion industry is responsible for about 10% of the world’s carbon emissions. Additionally, synthetic materials are responsible for over 35% of the plastic microfibers in the oceans. Industry operators who use sustainable materials and processes are more likely to enjoy success long term versus the fast fashion operators as consumers’ preferences are increasingly favoring eco-friendly brands.
Customer Analysis
Demographic profile of target market.
Chic & Timeless will primarily target men and women in the Los Angeles area with disposable incomes. A secondary target will be fashionable consumers worldwide. The Company will target individuals who are looking for quality made, wear for life pieces that never go out of style. No matter the customer, Chic & Timeless will deliver the best communication, service, and accessible fashion.
The precise demographics for Los Angeles, California are:
{Bridget will provide}
Customer Segmentation
Chic & Timeless will primarily target the following customer profiles:
- High income earners between the ages of 21-65
- Men and women who prefer premium, wear for life pieces
- Customers who prefer apparel made from sustainably sourced materials
Competitive Analysis
Direct and indirect competitors.
Chic & Timeless will face competition from other companies with similar business profiles. A description of each competitor company is below.
Statements & Staples
Statements & Staples is one of the fastest growing sustainable fashion companies in the area with multiple boutique stores in California. The company is owned and operated by Susan Smith, an accomplished clothing designer who has been creating high end apparel for celebrities for over two decades. Statements & Staples is the go-to shop for one of a kind clothing and a tailored shopping experience. The company specializes in formal wear and couture pieces made by hand. Each design is produced in extremely limited quantities to ensure exclusivity.
Trending Now Fashion
Trending Now Fashion is a small fashion boutique located in Los Angeles, California. The company was founded in 2013 by Megan Johnson, a fashion design student at the University of California. Megan operates one boutique in LA and maintains an online shop where she sells her designs to customers around the world. Trending Now Fashion focuses on using only sustainably sourced materials and creating eco-friendly apparel in the latest trends and styles. The company targets Gen Z and millennials who want to stay on top of fashion trends while also making purchase choices that will have a positive impact on the environment.
Tiffanie’s Fashion Boutique
Tiffanie’s Fashion Boutique is a new fashion company with a retail shop on Rodeo Drive. Tiffanie’s sells high-end fashion and accessories in limited quantities. The company specializes in wear for life apparel that is expertly tailored. Clients come to Tiffanie’s for a personalized shopping experience and one of a kind pieces. Tiffanie also takes custom orders where clients can have something specially made just for them. The company only uses sustainable materials and ethical production operations.
Competitive Advantage
Chic & Timeless will be able to offer the following advantages over their competition:
- Skilled team of designers will ensure the highest quality products. Expertly trained customer experience representatives will ensure all clients receive personalized customer service that will exceed their expectations.
- Chic & Timeless provides multiple ways to shop. Customers can come into the boutique or they can shop online and have clothing shipped to them.
- The Company’s sustainable materials are expertly constructed to ensure wear for life quality in every piece.
Marketing Plan
Brand & value proposition.
Chic & Timeless will offer the unique value proposition to its clientele:
- Chic & Timeless provides wear for life pieces that never go out of style.
- The Company creates limited quantities of one of a kind pieces that can’t be found anywhere else.
Promotions Strategy
The promotions strategy for Chic & Timeless is as follows:
Social Media Marketing
The Company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Chic & Timeless maintains an active social media presence with regular updates and fun content to get customers excited about new designs.
Professional Associations and Networking
Chic & Timeless will become a member of professional associations such as the Fashion Association, American Fashion Designers Society, and the California Sustainable Fashion Association. The leadership team will focus their networking efforts on expanding the Company’s sustainable supplier and client network.
Print Advertising
Chic & Timeless will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also invest in professionally designed ads to include in industry magazines and local publications.
Website/SEO Marketing
Chic & Timeless will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and display the Company’s current collections. The website will also list information on the Company’s events and promotions.
The marketing director will also manage Chic & Timeless’ website presence with SEO marketing tactics so that when someone types in a search engine “Los Angeles sustainable fashion” or “fashion boutique near me”, Chic & Timeless will be listed at the top of the search results.
The pricing of Chic & Timeless will be high-end due to the quality of the materials used and the nature of the sustainable production process. Clients will feel they receive great value for their money with one of a kind, wear for life pieces.
Operations Plan
The following will be the operations plan for Chic & Timeless.
Operation Functions:
- Elizabeth Miller will be the CEO and Lead Fashion Designer. She will oversee the design and production process. Elizabeth has spent the past year recruiting the following staff:
- Ashley Garcia – Chief Operating Officer who will manage the day-to-day store operations including overseeing the sales staff and customer relationship management.
- Susan Smith – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
- William Martin – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.
- Jennifer Jones – Quality Control Manager who will oversee all inspections of products to ensure quality standards are met.
Milestones:
Chic & Timeless will have the following milestones complete in the next six months.
12/1/2022 – Finalize lease to rent the boutique space.
12/15/2022 – Finalize personnel and staff employment contracts for the Chic & Timeless management team.
1/1/2023 – Begin build-out of the boutique, purchase equipment, and start design and production operations.
1/15/2023 – Begin networking at industry events and implement the marketing plan.
2/15/2023 – Finalize contracts for suppliers and distribution partners.
3/15/2023 – Chic & Timeless officially opens for business.
Financial Plan
Key revenue & costs.
The revenue drivers for Chic & Timeless are the fees charged to customers in exchange for the Company’s products. When it comes to pricing, the Company will charge high-end prices in line with the industry average and based on the cost of goods.
The cost drivers will be the overhead costs required in order to staff a fashion business. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.
Funding Requirements and Use of Funds
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Average number of pieces sold per month: 150
- Average fees per month: $30,000
- Overhead costs per year: $640,000
Financial Projections
Income statement, balance sheet, cash flow statement, fashion company business plan faqs, what is a fashion company business plan.
A fashion company business plan is a plan to start and/or grow your fashion company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your fashion company business plan using our Fashion Business Plan Template here .
What are the Main Types of Fashion Companies?
There are a number of different kinds of fashion companies , some examples include: Fast Fashion, Haute Couture, and Bespoke Tailoring.
How Do You Get Funding for Your Fashion Company Business Plan?
Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
© 2023 PlanBuildr.com
The World's Leading Business Plan Template Directory
Fashion Business Plan Template [Updated 2023]
Fashion business plan template.
If you want to start a Fashion business or expand your current Fashion business, you need a business plan.
The following Fashion business plan template gives you the key elements to include in a winning Fashion business plan.
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of your Fashion business plan:
I. Executive Summary
II. Company Overview
III. Industry Analysis
IV. Customer Analysis
V. Competitive Analysis
VI. Marketing Plan
VII. Operations Plan
VIII. Management Team
IX. Financial Plan
Comments are closed.
Fashion Business Plan Outline
- About Our Business Plan Service
- Cost of Our Business Plans
- Business Plan Checklist
- Business Plan Cost Calculator
- Hiring a Business Plan Writer
- Business Plan Help
- Our Guarantees
- Common Questions (FAQ)
- Business Plan Outsourcing
- Business Plan for Free (BrainHive Charity Program)
- Business Coach & SME Coach
- Startup Coach & Lean Coach
- Business Plan Coach
- Finance Coach
- Manager & Corporate Coaching
- Success & Life Coach
- Coaching Cost Calculator
- Financial Planning
- Pitch Deck Creation
- Business Prospectus
- Grant Writing
- Feasibility Study
- Business Development Planning
- Pitch Video Creation
- Business Ghostwriting
- Coworking / Coliving / Startup Retreat
- Our Company
- Code of Conduct
- Competences / References
- Volunteering and Internships
- Business Plan Samples
- How To Write a Executive Summary
- How to Write a Market Analysis
- Market Entry Strategy / Marketing Plan
- Auto Repair Shop
- Cleaning Business
- Beauty Salon
- Fashion Label
- Fitness Studio
- Interior Design
- Café / Internet Café
- Online Shop
- Photography
- Physical Therapy
- Restaurant / Bar
- School Business Plan
- Spa Business Plan
- Tech Startup
- Web Design Agency
- United Kingdom
- Personality of Successful Founders
- 23 Tips Advice For Your Loan Interview
- IT-Services Buyers Guide for Founders
- Imprint & Disclaimer
- Terms and Conditions
- Privacy Policy
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.
[TABLE REMOVED]
Risk Analysis As a young startup in the highly competitive fashion industry and dealing with very high product development, manufacturing and logistics costs, [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.
What Our Clients Have to Say
- Markus Delfs Inventor "...would anytime this provider." recommend
- Anya Chistyakova Manager "...unmatched and speed." efficiency
- Klaus Albrecht Merchant "...at any time and willingness to explain." easy accessibility
- Rose Mae Turner Fashion Designer "...They did Job." a superb
- Harald Wolf Merchant "...very fast, extremely high." quality of texts
- Matthew Jiovanni Inventor "...service was penny." worth every
- Tom Hilgardner Coach "...helpful advice my business." on how to grow
- Jürgen Siebert Merchant "...high motivation, good knowledge." transparent processes,
- Stefan Willautzkat Programmer "...everything great!" went
- Bernd Brencher Merchant "...100% convinced BrainHive." of the value
- Patrick Riehl Real Estate Agent "...simply results." brilliant
- Holger Martens IT-Entrepreneur "...quickly understood of my industry." the challenges
- Tom Richter Coach "...great to have to rely on." such competence
- Reinhold Weber Factory owner "...honest, young people." diligent
- Thomas Jung Tech-Startup "...at any given time that we are in good hands." we had the feeling
BrainHive: Worldwide #1 in Business Plan Pricing
Brainhive: essence of business planning, contact us today.
Joachim Jacob Görbert, Director
Reach us 24/7 via
US & International: +1 (844) 434 96 92
Europe & Germany: +49 (0) 6192-703 41 53
Contact Form
Fast & easy: Have us directly calculate an offer for your business plan.
Calculate Offer
Publications
Download Premium Publication
BrainHive is known through our publications in:
BrainHive Consulting is a registered vendor with Unidos, the intelligence and resource sourcing hub of the United Nations.
Frequently Asked Questions
- Information required?
- Documents required?
- Duration?
Here you will find answers for the most common questions concerning our business plan service.
More from our blog
Eco event planning: how rainbow gatherings are organized, brainhive on quora: giving free advice to the community, update: brainhive’s social impact work in guatemala, eco village business plan | intentional living community, grant writing for ngo: sample grant, brainhive coworking in guatemala finally open, business plan cost uk, i need a business plan – now what should i do.
Pingback: Business Mbb Casual Plan 30Gb – 2 partners
Pingback: Business Mbb Casual Plan 80Gb – 2 partners
- 24. April 2019
BrainHive Makes you a winner. Good job guys word alone cannot express how greatful I am. The service was way supper cool compare to the charges. They make sure you win. Highly recommend. I will come back for more and will definitely tell friends about this great company. Cheers
- Katerine Job Fashionline
I actually thought it’s only from an online freelance website one could get great business plan not until someone recommended BrainHive for me. Am still regretting why I did wasted lots of my time and money while this company existing without my notice. BrainHive go beyond just business plan writing service to coach and mentor me on how to present my idea real quick to get approval. Great job guys. I highly recommend there services for anyone seeking there assistance.
- Teila Simbey
BrainHive got me rescued… great business plan guys. I will keep patronizing you and sharing the good work. Dear readers, BrainHive should be your next go to if you are looking for a great business plan. They are experienced, Good and nice turn around delivery time. Great work guys will surly come back for more business. Thank you
- Jennifah Comely
Brainhive thank you for your great work my Fashion idea has been chosen among the selected few to the next level. I strongly believe am going to qualify for the Grant because all what you guys thought me was actually helpful and they were thrilled and ready to support my Fashion idea. Thank you once again… Guys Brainhive is your next go to in terms of Business Plan writing service. Cheers
- Mr. John Maxwel
Dear fellow Readers, if you are looking for a company to help you with business plan writing services, I strongly suggest you look no more stay with Brain Hive they are knowledgeable, experienced and good. They don’t just write they also educate you on how to peach your idea to secure seed for your start-up… Thank you BrainHive my Courier Service Proposal was successfully granted… I don’t know how to express my feelings right now…. Thank you once again… Coming back for more and I will keep recommending your good service to family and friends… Regards Mr. John Maxwel Technomediapro
Recent Posts
- Eco Event Planning: How Rainbow Gatherings are Organized 5. April 2019
- BrainHive on Quora: Giving Free Advice to the Community 21. January 2019
- Update: BrainHive’s Social Impact Work in Guatemala 8. January 2019
Leave a Comment cancel
Save my name, email, and website in this browser for the next time I comment.
Type above and press Enter to search. Press Esc to cancel.
Clothing Boutique Business Plan Template [Updated for 2022]
- by Emily Polner
minute read
![Clothing Boutique Business Plan Template [Updated for 2022]](https://blog-assets.lightspeedhq.com/img/2021/09/ee9acfe0-blog_clothing-store-business-plan_1200x628.jpg "business plan format fashion")
A business plan is a document that outlines its intended purpose and goals and helps serve as a reference to keep you on track after you open your doors. If you plan to raise capital, you can send your boutique business plan to friends, family and other potential investors so they have a clearer idea of what they’re investing in.
In this article, we outline what to include in your clothing store business plan, as well as a blank business plan template for you to use however you see fit. You can be as detailed as you like when writing your plan.
Here’s what you need to know and include to get started:
How to start a clothing store business in 2022
Executive summary, business description and mission statement.
- Product services and pricing
Competitor and market analysis
Clothing marketing strategies, business structure, clothing boutique startup costs and funding , growth forecast, clothing store boutique business plan template, global state of the retail industry report: omnichannel is do or die.
Get to know the state of the industry today as you open your clothing store boutique.
How much does it cost to open a clothing store?
The cost of opening a clothing store varies depending on the size and location of your store. Leasing a retail space costs more in certain geographic areas than others. The average initial cost of opening a store can be anywhere from $48,000 USD to $150,000 USD, and this figure doesn’t include an upfront payment of first month’s rent or utilities.
Having an accurate idea of your initial cost—and, as such, how much funding you need—is one of the key benefits of a thorough boutique business plan.
The costs and logistics involved in starting a clothing store business in 2022 are different than they were even 10 years ago.
You need a rock-solid niche for your business, so you can make a splash in a crowded market. You need a brand identity that stands out, too. Those pieces aren’t new, though creativity is more important than ever—you want your new boutique clothing store to stand out online, after all.
It’s the online aspect that really matters in 2022. Instead of picking between a brick-and-mortar or eCommerce store, your boutique business plan should take both into account. In an era of high-tech stores (even Amazon is getting in on the industry with its new Amazon Style ), customers have come to expect more from retailers.
Keep in mind the technology you need to start a clothing store today: that includes a POS system with an integrated eCom platform, inventory management software that syncs your online and offline stock in real time and loyalty programs to reward them for shopping. These costs, and the time required to manage multiple sales channels, should be built into your business plan.
How to write a clothing boutique business plan
Your business plan can be as long or as short as you’d like, but it needs to be clear to others, not just yourself. Remember, other people might read your plan in order to determine whether or not to invest, so each part needs to be understandable.
Here is an example of a business plan for a boutique clothing store that gets funders on board (and what you should be putting in each section).
The executive summary should be a summary of your entire business plan. It typically appears at the beginning of a business plan, but you should write this last so you can draw from the rest of the sections for a more accurate blurb.
Think of this as the elevator pitch for your boutique business plan. If this summary was all someone read, they’d come away with an idea of what you want to open and why; detailed enough that they get the big picture, but not so detailed that they get lost on the page.
An executive summary should be at most 10% of the entire document. For example, if your clothing store’s business plan is 15 pages long, the summary should be a page and a half at most; if your plan is five pages long, try for a half-page executive summary.
The next section should be a description of what your clothing business is and does. For example, are you a children’s clothing boutique? Are you selling in store, online or both? What kinds of styles are you going to cater to? For instance, do you sell basics like plain tee shirts or pieces with a more bohemian aesthetic?
This is also where you should define your mission and company values. Your mission should answer the questions: why are you starting your business and what will your new store bring to the table? Your company values are the characteristics your business aligns itself with and uses to make informed decisions. What values are most important to you and which qualities will you make a priority?
This is your opportunity to really sell potential funders on why your clothing store will succeed. What’s more compelling: describing yourself as a new apparel retailer, or as a new clothing boutique with a focus on personal styling for young professionals that carries local designers in a high-foot-traffic area in your city’s financial district?
Products, services and pricing
With your executive summary and business description having introduced potential funders to your vision, your boutique business plan should next move into the concrete details. Your products and services section should outline:
- What kinds of items you’ll be selling
- Any services you’ll be offering (i.e. tailoring or clothing rentals)
- The main benefits and features of what you’re selling
- How much each item will cost you vs. what you’ll be selling it for
- How each item will be created or sourced: which suppliers are you getting your inventory from, if any? Do you have existing relationships with suppliers or will you have to create them?
If you plan to offer more or different products later down the line, outline that in this section as well.
It’s important to look at what your competitors are doing to get a sense of which needs are being met and where the biggest gaps in the market lie. Make sure you explain how you’re positioning yourself and why you offer something different or better than what already exists. Include the following information:
- Competitor analysis: who are your competitors? What seems to be working for them and what doesn’t? How long have your competitors been in business? Are they growing? Make sure you categorize your competition into direct and indirect competitors in your boutique business plan. Direct competitors will be anyone who is targeting your exact niche, while indirect competitors will be big chain retailers and department stores who offer an alternative experience to what you’re building.
- Industry trends: talk about the current trends and future predictions for your industry. Is it popular or growing? How have these trends impacted your niche? Can you expect these trends to keep growing—and what proof do you have that the popularity of your chosen focus isn’t just a passing fad?
- SWOT analysis: a SWOT (strengths, weaknesses, opportunities and threats) analysis details exactly what it sounds like it does. Think about what your biggest strengths and opportunities are, as a business. On the flip side, is there anything that may be a potential threat to your success?
- Target customer: what kind of person you’re aiming to target. Who is going to shop at your store? Where do they live, how old are they and what are their main pain points? What are they looking to get out of a clothing store, and how will you serve their needs? Do you have any data about your particular target’s spending power and shopping habits?
As a new business, you’ll need to promote yourself to bring customers in the door. Use this section of your boutique business plan to explain to investors and your team how you intend to do that.
- Which marketing channels do you plan to use? Are you going to use email marketing, social media marketing , SEO blogging, PR or influencer marketing ?
- Do you plan to run paid advertisements or only market your business organically, or both? If you plan to pay for advertising, you’ll need to include this budget in your costs section.
- How will you measure the success of your marketing efforts? Which metrics will you examine to determine whether or not you met, exceeded or fell short of your goals?
- What sort of loyalty program will you use to ensure customers keep returning? How will you split your budget for marketing to new customers and reaching out to returning customers?
The structure of your business will have a big impact on how it’s taxed and managed. Define your plans for incorporating as well as your org chart:
- How is your business defined, legally ? Is it an LLC, an S-Corporation, a partnership or unincorporated?
- Who is running the clothing business? List the founders and what each person brings to the table in terms of skills and capital.
- What kinds of roles will you be hiring for? Who reports to whom? Create a preliminary organizational chart that includes the current hierarchy of your business and which roles will need to be filled.
There are many upfront purchases to be made as well as recurring expenses that come with starting a clothing store. This is where you’ll list what you need to buy and the funding you’ll need in order to make sure you get everything you need. Here are some examples of costs you might include:
One-time costs
- Lease, security deposit and other fees associated with signing a retail lease
- Furniture and façade costs
- Initial inventory
- Technology hardware, such as computers, tablets, phones, credit card readers
- Website design costs (if you’re not using an eCom platform with a built-in site builder)
- Grand opening costs for the store’s launch day
Recurring expenses
- Rent and utilities
- Employee wages
- Marketing and advertising
- Retail commerce platform subscription
- eCom platform subscription and web hosting costs
- Domain name registration
- Accounting services
In addition to listing expected expenses and funding needs, also add a projected profit and loss statement, cash flow and balance sheet, if you’re able to. This will help paint a more complete financial picture.
Growth forecast
In this section, list how much inventory you’ll have on to start and your initial assets. Plan how much cash you’ll have on hand for your grand opening.
Here is where you can predict how quickly you will grow and in what ways you intend to expand. How much revenue do you intend to generate after one year in operation? Do you plan to offer more products in the future? Are you envisioning outgrowing your first retail space? Do you intend to open more locations? Describe these plans to the best of your ability.
Now that you know what goes into a business plan, you’re ready to make one. Fill in this free template to set your future clothing store up for success.
Executive summary
Business name:
Founders and executive team:
Products and services:
Target demographic:
Marketing strategies:
Future plans and goals:
Company description
What does your business do?
What gap does it fill in the market?
Mission statement:
Core values:
Description of each product and service:
How you plan to price each item:
Supply chain details:
Competitor and market analysis
Competitor analysis:
Industry trends:
Market size:
SWOT analysis:
Target customer:
Marketing strategies
Which marketing channels you’ll be using:
Plans for paid vs. organic marketing:
Loyalty program outline:
Marketing goals:
Legal structure:
Business leaders:
Organizational chart:
Hiring plans:
Startup costs and funding
What you need to buy:
How much funding you need:
Profit and loss statement:
Balance sheet:
Assets:
Cash on hand:
Revenue (projected or actual):
Other growth plans or predictions:
Create your clothing business the way you envision it
A clothing store business plan can help you solidify your thoughts and ideas so that you can start your business the way you intend to. Taking time to ask yourself important questions like how and why you’re starting will serve you well in the long run.
Clothing retailers use Lightspeed’s commerce platform to take sales, manage inventory, create a website and so much more. If you’d like to learn about how Lightspeed can help you accomplish your business goals, watch a demo .
News you care about. Tips you can use.
Everything your business needs to grow, delivered straight to your inbox.
Sorry, there was an error with your submission.
Success! You are now signed up to our blog content updates.
Emily is a Content Specialist at Lightspeed, where she brings her passion, knowledge, and expertise to give you helpful tips on how to take your retail business to the next level. When she’s not behind the keyboard, Emily can be found thrifting, getting iced lattes at local cafes or endlessly scrolling through TikTok.
Related articles
How to Use a Touchscreen Cash Register (Six-Minute Guide)
- by Lightspeed
Your Guide to Google Ads: How to Get Started
- by Francesca Nicasio
How Businesses can Prepare for Tax Season 2023
- by Alix Fraser
Browse more topics
IMAGES
VIDEO
COMMENTS
Explore our library of Clothing & Fashion Business Plan Templates and find ... business, you may want to check out our clothing and fashion sample plans.
Discuss the type of fashion business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your
Summarise your brand and explain what differentiates it. Also, quickly outline your target market, target revenue goals and timeframe. The
A clothing line business plan is a crucial (and often forgotten step) that is needed for creating a clothing line. The plan will help you define
Example of a Business Plan for a Fashion Designer · The Executive Summary · Express Your Vision and Selling Proposition · Create Your Market Analysis · Explain Your
Below is a template to help you create each section of your Fashion business plan. Executive Summary. Business Overview. Chic & Timeless is a startup fashion
Use this free fashion business plan template to quickly & easily create a great business plan to start, grow and/or raise funding for your
10 steps to creating a clothing line business plan · 1. Review business plan templates and examples for inspiration · 2. Write an executive
About the Free Fashion Business Plan Template in this Article: The product (fashionable motorcycle bags and clothing) is supposed to fill a
How to write a clothing boutique business plan · Executive summary · Business description and mission statement · Products, services and pricing · Competitor and