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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. 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!

When designing the clothing, Mrs.

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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: One very special element of the product portfolio is the inclusion of a new material compound called D30 www.

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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.

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Using this particular material is still considered an important element of the product portfolio of [fashion business plan example] COMPANY. 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. In its first three years of operation the company will be producing in the USA and outsource manufacturing to dedicated service providers.

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. 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. 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. Additionally, [fashion business plan example] COMPANY will work closely with regional sales representative of motorcycle apparel buyers. 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 fashion and retail industry tends to be overly youth and small size focused.

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.

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.

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. 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.

The industry is highly fragmented and concentrated at the top. Most companies operate just one store, but 1, companies operate more than two. Demand for clothing is strongly influenced by the growth of the economy and personal income. 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. A very interesting trend in the American retail economy is the ever more frequent occurrence of e-commerce.

That represents a compound annual growth rate of 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 million U. But the bigger factor in driving e-commerce growth is that each shopper will spend more on average, the report says. 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 million women in the US in , about half of them are in the age and income group that would qualify them as target customers for [fashion business plan example] COMPANY. 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. In , there were 11 million motorcycles in the US.

Women owned 1,, of them. The majority of female motorcycle riders we surveyed were white, with black women following. 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 and top size above an XL. 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. Companies that recorded increased revenue include: Competition Competition in the fashion industry is always a big factor.

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. The danger of growing competition from incumbent firms is therefore very real.

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.

Internationally worth mention are Dainese www. While other stores offer some style equivalents, they are not focused solely on fashionable wear. 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. Female motorcycle riders ages are the target customers. The target customers are trailblazers and trendsetters.

They value uniqueness, convenience, service and quality. Motorcycle-enthusiastic women live in big cities, are financially independent and make household decisions. Research conducted by Mrs.

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.

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. After it is established amongst the motorcycle riding community, the brand shall have a cult following beyond motorcyclists i.

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.

Fashion Business Plan Example – Clothes Business Plan

It is thought that teaming with companies, riding instructors, motorcycle tour companies, bloggers, way finder applications i. 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. 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.

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. 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.

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. 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.

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.

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.

These consulting entities are, listed in order of acquaintance: 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 is likewise well known amongst some of the top grossing businesses worldwide and has been in the market for 9 years.

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. 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. 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. 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.

Executive Summary

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.

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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.

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