Business Plan
Smart wear enterprise is a small business situated in London, United Kingdom. It was started in 1999 in a small town in London with sales amounting to 500 annually. This was quite a small number compared to the clothing industry player in the European and London market with an average sales of 1,000,000 units annually, (Han H., 2003). The company conducted immense marketing strategies in the next 5 years. As a result, the company sales skyrocketed to 300,000 units annually with some of its clothing products being sold in the United Kingdom.
In the year, 2003, the company merged with another small company called clothing designs. The company was a start off with a customer base of about 1,000 and 2 years’ experience into the market. However, capital injection was a favorable element in the merger and hence the money was invested in better production equipment, (Manlow, V., 2007)
The vision of the business is to be the best sorted after clothing liner in the London continent. The mission statement includes production of quality wear for customers, conducting quality analysis of the market needs, good projection of market activities, proper marketing strategies and increased sales over the next decade.
Value Proposition
The business brings along value to the community of London. This is so as it provides employment to about 100 locals. The wages for the company are very competitive hence; the employees are able to increase their living standards. This has led to an increase of middle-income earners of the past decade. In addition, Smart wear has conducted various development projects in the area such as road construction. This has led to the overall development of the small town.
Qualification and Job experiences
I represent the board of the company and hence the Chief Executive Officer. I have a degree in Fashion science from Oxford University and a master’s degree in Business Management from London University. Besides that, I have gained ample experience in the clothing industry having worked as a designer and later on as a management consultant in Ebony magazine. With my experience, I envision taking the company to greater heights.
PRODUCT PLAN
Features
The Smart wear enterprise plan to introduce a new product into the market. The product will be categorized into various brands. This will be an introduction of teenage wear into the European market. The new product will have various brands of different styles. These include; swimming wear, beach wear, school outfits and normal wear, (0Black, S, 2012)
Product Strategy
The strategy of the product is to avail to the market a wide range of products. This will attract consumers of all walks of life with different tastes. One can choose either of the products and have a good time tasting the flavor.
Benefits to the consumers
The benefits to the consumers include a wide array of products, new designs of products that will make them attractive.
Proprietary rights and Stage of Development
This endeavor will be registered as a trademark with the various authorities in London. The trade mark will stipulate the manufacture, production methods and production tools used in the manufacture of the products.
We are currently in the research stage of the development process. The various analysts that we have employed are conducting research on the market. This is to demystify the likelihood of products to sell. There is also research on the ingredients and mix of the ingredients in the products.
MARKET AND INDUSTRY ANALYSIS
The main objective of the business will be to ensure that all the customers’ needs are satisfied completely. In order to be able to justify its existence, and carry out the above objectives successively, the business will have one segment, (Barrow C, 2005). This segment will focus on individual customers. This will comprise of persons from the town and its surrounding who are interested in buying material either in small or large quantities. They mostly would buy for their own use or for resale.
Consumers
Our main consumers are the household consumers. However, there will be a bias in children and teenagers. This is so as young children are the most likely to buy the clothings. Young children constitute 60% of this fashion industry. In addition, teenagers follow with a 20% of the market share.
Industry Analysis
The confectionery industry is an industry with a lifelong presence of about two centuries. It is considered to have started in the 1800 in the United Kingdom. Later on, Ebony Magazine emerged in the early 1900 and became one of the largest fashion companies in the world. However, ebony company has in the recent past put much focus on its magazines that showcase fashion news and trends. Thereafter, there were the introduction of many companies in the industry.
The industry has in the past made simple clothing for upcoming middle class with a bias for people with jobs. However, this has changed. It is now evident that class has got the better part of the industry. The designers have produced clothes for complex needs within the market. The clothes are for people who love fashion and have an intriguing taste for the good things in life.
Opportunities
Smart wear has many opportunities in the clothing business. This is so as the products to be introduced are unique to the market. The products also tend to provide for clothing products to diverse consumers, (Wickham PA. 2006).
Threats
The threats involved are the emergence of competitive companies with the same product in the future. Health concerns by the local authorities are also a concern. However, this will be countered by proper installation of equipment with high notch cleanliness and employing cleaning measures in the factory.
In addition, issuance of business licenses by the local government authorities is a concern. Also, there is the concern of availability of skilled labor to start of the venture.
Strengths
Proper marketing strategies will be a plus to our venture. Our products have natural linens in them hence a benefit to the company image. The raw materials such as the linens and leather are from high quality sources. Smart wear has a good financial backing having secured loans from local financial institutions. This will aid in starting of the venture.
Weakness
Lack of skilled labor in the market proves to be a weakness to Smart Wear. In addition, this also brings about the lack of experiences workforce.
MARKETING PLAN
Consumer Research
Our researchers are conducting a study on the consumers. However, it is revealed that consumers have a liking for complex design with a mix of uniqueness.
Branding Strategy
The branding strategy involves having one product, which is children centered design with various brands under it. The brands will include popular brands from the most renowned designers in the fashion industry.
Pricing Strategy
Pricing is a significant strategic issue since it relates to the positioning of the product. In actual sense, pricing alters other marketing mix aspects such as product characteristics, channel decisions and promotion. While there is no single recipe to determine pricing, the following steps will be followed in developing the pricing of products.
1. Perform market analysis, positioning, targeting, segmentation.
2. Define the product, promotional tactics and distribution.
3. Analyze how the quantity demanded usually varies with the price. 4. Calculate cost including variable and fixed costs that are associated with the products.
5. Evaluate competitor actions likely to occur, understand legal constraints,
6. Set pricing objective using revenue maximization, profit maximization or price stabilization (status quo).
Promotion Strategy
The business has to create awareness of the availability of the commodity and this will be done through the following ways:
• Advertising uses posters• Advertising in the nation newspaper• Circulating free printed samples• Use of retailers, customers and employees to extend the word of the grand opening of the premises
• Participating in trade shows and exhibitions
OPERATION PLAN
The operation plan will help Smart Wear link manufacture and sale of commodity to find the right mix. It is through this that the company will find the right balance on the operation costs and revenue accrued to turn in a profit.
Operation stategy
The aim of the company is to keep its prices low and retain the current customers while acquiring new ones. Due to technology, one of the strategies is to reduce the inventory levels. This way, the company sells goods at a low price and replaces them with the latest goods once inventory is out.
Scope of operation
The operation of Smart Wear is limited to the production and distribution of wears. Currently, the main area of concentration for the company is in England where it was founded.
Research, development and engineering
The research and development team will be charged with identifying the most essential activities that the company is required to engage in. The company has a well equipped research team that has helped it grow from a small company to its current size.
Costs and expenditure
One of the main operating concerns is the expenditure incurred by the company. Through a thorough research, the organization identifies the best prices at which raw material will be bought. This will reduce the cost of material while getting the best quality.
DEVELOPMENT PLAN
Development Strategy
Smart wear envisions carrying out an innovative development strategy for the venture. This development plan involves employing the lean manufacturing method. The lean manufacturing method dictated the importance of lower costs in production processes. In doing so, the products are only manufactured when the need for them is seen. Hence, demand from the market has to be fit for production to take place, (Mullins and Komisar, 2010). One production halts, the products made are transported to nearby distribution centers for sale.
In addition, some production methods employed will be from a study of how Ebony companies conduct their production. In so doing, the production engineers will be taken for a benchmarking session to the ebony factories to be trained on best production methodologies.
Besides that, the development process follows the following steps:
- Market Research
- Product design
- Product development
- Product planning
- Marketing
- Project management
Management Team
The organization structure
Chief Executive Officer
A degree in business management, this will assist her to tackle all the problems concerning the management of fashion and design center. She will also have knowledge in bookkeeping. Duties and role in the business A manager employed will be planning, organizing and controlling the staff performance. The other roles will include: Set up policies, rules and regulation that will govern the operation of the business
- Take other daily management of the resources
- Put up yearly strategies and plans
- Represent the board of directors
- Inform the board of directors in change in operation
- Deliver financial statements to the board
- Seek government authority
- Approve major procurement
Approve the assignment of management personnelManagement Personnel Should have a degree in business management. In addition, a10 years’ experience in the education sector is mandatory. The responsibilities include;
- Decide on the daily operations
- Control operations
- Inform the Chief Executive Officers of any changes
- Manage employee activities
- Approve procurement
Communication on the qualifications and duties of the other positions is to be done during recruitment drive to fill in the positions.
Corporate Social Responsibilities
Smart wear has and will continue to engage in corporate social responsibilities. These activities include sponsorship of local citizens to universities across the country, development of schools, offering food to the poor and providing clothing to elderly homes and orphanages in the area.
FINANCIAL PLAN
Financing for the venture will come from investors, retained profits and loans from a financial institution in the given spread;
Investors: 500,000
Retained profits: 800,000
Loans: 700,000
Capital Expenditure $
Acquisition of fixed assets 400, 000
Purchase of stock 200, 000
Purchase of material for production 100, 000
Total 700, 000
Other expenses
Legal charges and license 200, 000
Rent (3months) 200,000
Advertisement 300, 000
Electricity bills (3months) 150,000
Water bills (3months) 150,000
Vehicle maintenance (3months) 16,000
Salaries (3months) 300,000
Total 1, 300,000
Grand Total 2,000, 000
NB: the financial statement will be prepared after one year that is the profit and loss account and balance sheet will give a report of 12 months. This is to say the financial year of Smart wear enterprises will comprise of 12 months of trading from January – December.
References
Allen K, (2006). Launching new ventures – an entrepreneurial approach, 4th edition, Houghton Mifflin, Boston MA and New York (VG lecturer support materials)
Analoui F and Karami A, (2003). Strategic Management in Small and Medium Enterprises, Thomson, London
Blackwell E, (2004). How to Prepare a Business Plan, 4th Edition, Kogan Page, London
Barrow C et al, (2005). The Business Plan Workbook, Sunday Times / Institute of directors
Butler D, (2000). Business Planning- A Guide to Business Start Up, Butterworth Heinemann, Oxford
Han, H. (2003). The Vault career guide to the fashion industry (2nd ed.). New York, NY: Vault Inc..
Manlow, V. (2007). Designing clothes: culture and organization of the fashion industry. New Brunswick: Transaction Publishers.
Black, S. (2012). Knitting: fashion, industry, craft. London: V&A Pub..
Mullins and Komisar, (2010). Getting to Plan B.
Pears, R. and Shields, G, (2008). Cite them right: the essential guide to referencing and plagiarism. Newcastle upon Tyne: Pear Tree Books.
Wickham PA, (2006). Strategic Entrepreneurship, 4th edition, FT Prentice Hall, Harlow
