Executive summary.4
THE TEAM..4
MANAGEMENT TEAM PROFILE AND OWNERSHIP STRUCTURE4
ADVISORS.5
PROFESSIONAL SERVICES5
HUMAN RESOURCE REQUIREMENT.5-6
THE BUSINESS ENVIRONMENT6
BUSINESS SUMMARY AND HISTORY..6
INDUSTRY OVERVIEW6
Consumer trend 6
Seasonal factors6
POSITION IN THE INDUSTRY.6-7
Legal issues.7
Competition7
Use of technology7
THE MARKETING PLAN.7
TARGET MARKET7
The competition 7
SERVICES.8
PRICING STRATEGY8
SALES/DISTRIBUTION PLAN8
Credit term and guarantees..8
ADVERTISISNG/PROMOTIONS PLAN..8
Public relations.9
FINANCE.9
INCOME STATEMENT9
CASHFLOW STATEMENT.9-10
BALANCE SHEET10
RISKS AND CONCLUSIONS10-11
Introduction/Executive Summary
The new generation clothes line is an organization which started as a small business venture by providing quality materials to both genders men and women. The business venture began as a small clothes stall with limited stock in which customers were few and the revenue generated per month was about $ 500.
The enterprise is established in Canada in which the textile industry made $420 while Alberta experiences a revenue contribution of around $4. New generation started as a small business but it thrived in Alberta since the clothes which were sold were imported from Italy and clients loved them since they were cheap and quality.
I started the business in partnership basis but after one year it was dissolved, and I began a fresh as a sole proprietor. I have I Bachelor degree in commerce from Cambridge University in which I use the skills and techniques I acquired on marketing to promote the enterprise. The income projections which I have set are $425000.
The team
Management team profile and ownership structure
New generation cloth line is an enterprise incorporated in Albert, Canada
Robert Howard, Owner
Job description:
Amenable and accountable in ensuring the business sustains itself annually while controlling Assets and Liabilities in New Generation cloth line
Survey all aspects of purchasing and marketing textiles in the industry to ensure continuous cash flow and hence control deficits occurrences.
Qualifications
15 years with marketing department in Textiles Manufacturing Company
Began career as a marketing officer, Based on individual interests in commerce advanced to Entrepreneurship three years ago
Compensation
$50000 Annually.
Advisors
Johnathan Trooper, Accountant, Apparel Textile Sourcing Canada
Trooper is an accountant in Apparel Textiles one of the top ten wholesale textiles manufacturers in Canada. Johnathan is an expertise in the field of business management, and He assists in making decisions on how to allocate funds in New generation cloth line.
Adam Hood, Designer, Adam Textiles
Adam is an expertise in Fashion styles due to experience encountered in his small business Adam & Friends Textiles. The skill, Tips, and knowledge in cloth cuts is helpful to tailors in New Generation cloth line.Adam is lending helpful tactics hence improving New Generation products regarding modern fashion shapes.
Hilda Greg, Retired Consultant
Hilda has to be a senior consultant in the housing finance for fifty years, and her specialty in this field has been helpful in allocating funds for particular purchases and cash flow aspects of New Generation cloth line.
Professional services
I use the expertise knowledge of Job Franklin, who is my Account manager in New Generation fabric line concerning finance issues arising during the formal trades of the enterprise.
Lawyer Thompson Trump deals with all legal actions of the business voluntarily due to our long term friendship.
I perform all administration duties since am conversant with the employees with the help of Mary Yaitanes, the secretary.
Human resource requirements
Part-Time General assistants
General assistants are frequently large in numbers and perform tasks in duties; There responsibilities include duties such as bookkeeping and arranging records on purchases up to date.
Compensation
$10000 Annually.
The Business environment
Business summary and history
New Generation cloth line is a small enterprise manufacturing clothes for both genders as well as children outfits. The business initially started small due to the limited capital that was available for a start-up. New Generation Cloth line initially dealt with ladies wear for twenty months but the marvelous profit of $250 million generated that year enabled the enterprise to purchase more machines and employees and hence started manufacturing men's wear and children's outfit. The textile industry has contributed immensely to Canada's economy. The small enterprise provides 10% to industrial production. New Generation cloth line adds to12% of the country's foreign exchange
Industry Overview
New Generation Enterprise annually generates $400 million annual sales. The annual revenue of Alberta is approximate $4-$5 million. The sectors contribute about 4% to the Gross Domestic Product this estimate is absolute while excluding seasonal variations. The potential customers expected on an average day in New Generation cloth line are 5000 customers within the enterprises trading area.
Consumer Trends
New Generation cloth line sales are often affected by the ever changing styles and fashions of the customers especially the ladies wear. There is always a great loss when certain clothing's become obsolete, yet our enterprise has a huge stock of the same. New generation enterprises prevent such awful occurrences by constantly updating their closets to fashion ( Andrew, Gregson, 2008).
Seasonal factors
New generation cloth line is often affected by seasonal factors that influence our potential customers. This enterprise deals with cotton, silk, wool, man-made fibers and jute textiles. The potential clients and purchases of these various segments vary depending on seasons. During the summer months, the purchases of clothes in the section of wool fluctuate while during winter months the purchases under silk fluctuate while wool clothes and cotton increase.
Position in the industry
New generation cloth line is progressing rapidly due to the unique fashions it is supplying other retailers. The Enterprises has earned a brand name due to the friendly prices and fabulously fashioned outfits it supplies all over the western province of Alberta and abroad. The strategic positioning of New Generation cloth line earns it points as well. The enterprise is located in the heart of Alberta hence attracting customers at a wider scope.
Legal issues
New Generation cloth line is entirely incorporated therefore products from our industry can never be patented or trademarked.
Competition
New Generation cloth line is vulnerable to numerous direct competitors’. The enterprises are vulnerable to competitors such as Exacta Garments, and therefore, the only available useful tactic is to effectively make use of the strategic positioning and create loyal client bases. The barriers to entry are limited therefore to create one the enterprise is consistent with being loyal to the potential customers and attracting more customers.
Use of technology
Technology is very useful to this company at large, the use of technology reduces the initial operating cost of the Company. The number of employees required at various stages of production is progressing reducing due to a use of modern technology. New Generation cloth line also has sophisticated software's used to store credential information for the security of the Company against its competitors. The products of New Generation can hardly be copied considering the advanced technology the machines are operated.
Marketing plan
Target market
There are three primary targets in this New Generation Cloth line enterprise
Men
Ladies
Children
My targets are heterogeneous, and their interests vary the three target market groups are composed up of mostly the self-employed professionals. The sales or potential customers are of the estimate of approximately 3000 -5000 customers. The list of the target markets composed of the three entities each spends up to $150 annually on New Generation cloth line products. On average year despite the variations, the total initial market is normal $ 1000,000 and above. This value is expected to continue increasing in the upcoming years (Kotler, Philip and Gary Armstrong ,2008).
Competition
The main competitor to New Generation cloth line is Ipacta Garments, which is not so far from the central business center. Ipacta Garments does not offer delivery services to clients, and therefore, New Generation stands a very firm chance to build loyal customer base appropriately. New Generation Enterprise provides fast delivery to customers and considering its strategic positioning it is better placed to compete favorably with Ipacta garments. Our delivery services together with our favorable prices will offer real and substantial economies of scale hence saving both time and money to New generation cloth line potential customers.
Services
The services provided at New generation are paramount and enable a customer to come shopping again. The quality of fabric in this enterprise is of high quality and durable hence serving the customer to satisfaction.
Pricing strategy
New Generation cloth line prices are closely related to those of the competitors but different. The price tags of New generation depends on these segments; wool, silk, cotton, man-made fiber and Indian jute (Nagle, Thomas T and R K Holden ,2002).
Sales/distribution plan
New Generation cloth line is the only provider of its kind within a scope of four kilometers. This distance range enables new customers to try out our enterprise for the first time. New Generation, therefore, strives to maintain the client after this one time encounter. The initiative also offers pick-up and delivery services to clients throughout.
Credit terms and guarantees
New Generation cloth line offers credit to clients after going through their credit score and history over the recent years. Verified clients are offered a15 –day account terms whereby penalties also apply to delayed payments. The penalty to the overdue accounts is always 5%, New Generation also offers discounts to loyal customers.
Advertising and promotion plan
New Generation cloth line is always advertised in the local newspapers, direct mails, praises from encountered clients and frequent user program
Public relations
New Generation cloth line will continue offering quality products and auxiliary services to its clients to maintain a good profile and avoid negative wording.
Finance
Income statement
Cash flow statement
For the year ended June 2016
Balance sheet
Risks
New Generation cloth line is an enterprise facing various potential risks such as business risk, operational risk and marketing risk. The enterprise faces great operational risks when the tailoring and textile machines malfunction. Marketing risk occurs in this company when the budget is exhausted on expenses such as promotion on high volume and constant customers. New Generation textiles undergoes business risk when the company undergoes constant challenges during the production process and the contingency plan is insufficient. The above stated risks and uncertainties expose New Generation Company vulnerable.
Conclusion
It is the goal of New Generation Cloth line as a whole to expand its boundaries and become the most leading and reliable retail by reducing the $7667 liabilities and improves the annual returns to $500 over the next 2 years. The worthiness of New Generation is ought to increase to $6 million. The Company anticipates clearing the loan before the end of the year 2018.
References
Kotler, Philip and Gary Armstrong (2008). Principles of marketing. Pearson Education.
Nagle, Thomas T and R K Holden (2002). The strategy and tactics of pricing: A guide to profitable decision making. Upper Saddle River, N.J.: Prentice Hall.
Andrew, Gregson (2008). Pricing strategies for small business. Self-Counsel Press..
