Business Plan Eco Fashion (Essay Sample)

BUSINESS PLAN _ ECO FASHION
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Contents TOC \o "1-3" \h \z \u 1.Executive Summary PAGEREF _Toc421270503 \h 11.2.Vision PAGEREF _Toc421270504 \h 11.3.Mission: PAGEREF _Toc421270505 \h 11.4.Business slogan PAGEREF _Toc421270506 \h 11.5.Objectives PAGEREF _Toc421270507 \h 12.0. The Company and its team PAGEREF _Toc421270508 \h 22.1 The Company PAGEREF _Toc421270509 \h 22.2 Growth strategy PAGEREF _Toc421270510 \h 22.3. The Team PAGEREF _Toc421270511 \h 22.3.1. Chief Executive Officer and Managing Director PAGEREF _Toc421270512 \h 22.3.2. Company Secretary &Overall head of operations PAGEREF _Toc421270513 \h 22.3.3. Accountant/Cashier PAGEREF _Toc421270514 \h 23.0. Market needs analysis PAGEREF _Toc421270515 \h 33.1. Size of the Market PAGEREF _Toc421270516 \h 33.2. Trends/Key drivers PAGEREF _Toc421270517 \h 33.3. Key Success Factors PAGEREF _Toc421270518 \h 34.0. The Value Proposition PAGEREF _Toc421270519 \h 44.1. Uniqueness of the proposition PAGEREF _Toc421270520 \h 44.2. Appeal to society and consumers PAGEREF _Toc421270521 \h 45.0. Competition and availability of similar products/services PAGEREF _Toc421270522 \h 45.1. Key Competition PAGEREF _Toc421270523 \h 45.2. The Product/Service - Business Model PAGEREF _Toc421270524 \h 56.0. Marketing and Sales PAGEREF _Toc421270525 \h 56.1. Marketing PAGEREF _Toc421270526 \h 56.2. Sales PAGEREF _Toc421270527 \h 66.3. Sales Forecast PAGEREF _Toc421270528 \h 77.0. Supply chain and possible partners PAGEREF _Toc421270529 \h 77.1. Supply chain PAGEREF _Toc421270530 \h 77.2. Possible partners PAGEREF _Toc421270531 \h 78.0. Financial Plan and Financial Projections PAGEREF _Toc421270532 \h 88.1. Start-up Funding PAGEREF _Toc421270533 \h 88.2. Key Assumptions - Income Statement PAGEREF _Toc421270534 \h 108.3. Pro-Forma Financial Projections - First 12 Months PAGEREF _Toc421270535 \h 108.3.1. Projected profit and loss PAGEREF _Toc421270536 \h 108.3.2. Projected Cash Flow PAGEREF _Toc421270537 \h 118.3.3. Projected Balance Sheet PAGEREF _Toc421270538 \h 119.0 Legal and Environmental analyses PAGEREF _Toc421270539 \h 119.1. Legal Environment PAGEREF _Toc421270540 \h 119.2. Environmental analyses PAGEREF _Toc421270541 \h 119.2.1. SWOT analyses PAGEREF _Toc421270542 \h 119.2.2. PESTLE analyses PAGEREF _Toc421270543 \h 1210.0. Risk Assessment& Exit Strategy PAGEREF _Toc421270544 \h 1310.1. Risk Factors PAGEREF _Toc421270545 \h 1310.2. Exit Strategy PAGEREF _Toc421270546 \h 1311.0. Monitoring and review of the plan PAGEREF _Toc421270547 \h 1412.0 Appendices PAGEREF _Toc421270548 \h 1412.1. Sales Forecast PAGEREF _Toc421270549 \h 1412.1. Projected profit and loss PAGEREF _Toc421270550 \h 1512.2 Projected Cash Flow PAGEREF _Toc421270551 \h 1612.3. Projected Balance Sheet PAGEREF _Toc421270552 \h 17References PAGEREF _Toc421270553 \h 18
1 Executive Summary
Eco Fashion Ltd will be a Limited company housed at the Safeer Mall located along Mussafah Rd, Abu Dhabi, United Arab Emirates, and will focus on clothes recycling. The company will recycle unwanted clothing obtained from citizens using collection bins placed around residential areas and old season clothing obtained from retail stores with the purpose of reducing waste, saving environment, ensuring sustainability, as well as helping people with low incomes access to clothing (DIVITA, 1996). Mussafah road is strategic especially because it is a central location for the collection of the unwanted clothes from the residential areas where the collection bins will be placed and also close to the major textile retail stores from whom Eco fashions expects to source the old season garments.
The purpose of this business plan is to formulate a guideline towards the establishment of Eco Fashions by evaluating the availability of the market and the currently existing companies operating similar businesses, analysing the costs of starting up a new business and the financial projections there on. Furthermore the plan; evaluates the existing inherent risks and the legal environment requirements, tries to oversee available threats and weakness and also outlines Eco Fashions strengths that will enable it capitalize on the available opportunities and compete effectively.
1 Vision
To be the leader in provision of green, economical, eco-friendly, and sustainable fashion in the region by 2025.
2 Mission:
To help the environment through recycling garments and provide customers clean, green, quality and affordable fashion.
3 Business slogan
Wear Green.
4 Objectives
The objectives are to:
* Remodel a space to leased at the Safeer Mall and launch Eco Fashions by September 2015
* Achieve first year sales above AED.50,000 and AED.150,000 in the second year. Growth is projected to be at above 5% from the third year.
* Maintain an average gross margin of 40%.
* Develop a business model that is favorable to expansion.
* Establish five store in different towns by the end of the third year in different strategic locations
* Staff development and growth through sponsorship to preferred environmental conservation
2.0. The Company and its team
2.1 The Company
Eco Fashion will be a limited liability start-up company with Lindsay holding 25percent shares and Mr. Fox holding 75 percent of the total shares. It’s scheduled to start operation in September 2015 and will specialize in recycling of clothes. To realize its vision, the company will lease a large store on the 3rdfloor of the Safeer Mall.
2.2 Growth strategy
This business plan aims at estimating start-up capital and ongoing costs; identify revenue streams; and forecast net cash flow and profits. The Eco Fashions Venture will be funded partly through paid-in capital provided by the owner and a loan from Barclays Bank. The company will majorly employ cost effective advertising tools to market its products and hopes to open five stores by 2025 fully stocked with the company products.
2.3. The Team
2.3.1. Chief Executive Officer and Managing Director
The company CEO and Co-Founder will be Mr. Fox Loghan. Fox has ten years of experience as Marketing and strategic development director at Smart Textiles Ventures. Fox holds a Master’s degree in business administration and has extensive restaurant experience.
2.3.2. Company Secretary & Overall head of operations
Lindsay Denzel will be in charge of all the business operations and will co-ordinate the operations of different business wings. She will also be in charge of recruitment and staff trainings. Lindsay was nine years’ experience at Khan Textiles as a clothing designer.
2.3.3. Accountant/Cashier
The company's bookkeeping, payroll, tax, reporting will be run a qualified accountant. He will also be in charge of purchasing inputs for all the divisions.
3.0. Market needs analysis
3.1. Size of the Market
Eco Fashions intends to market its product to Abu Dhabi’s low income community of all ages; Families with children, teenagers, young adults and even business people. With such a broad target market, Eco Fashions can only hope that the entire city can join hands in conserving the environment through recycling of cloths
3.2. Trends/Key drivers
The global market has in recent times witnessed increased calls by governments to conserve the environment. The biophysical environment has for a long time been taken for granted leading to unwarranted degradation to very high levels. With the realization of the negative effects of biodegradation, the governments through academic institutions have insisted on the introduction of courses related to environmental studies and management (HORROCKS, 1996). 
The management of Eco Fashions, aware of the above findings, has summarized the industry as below;
* Recent emphasis and sensitization programs on environmental conservation in all societies especially positive press coverage’s on the benefits of conserving the environment will be key in boosting our entry into the market (AL ABED, 2001). 
* Most corporations are weary of the increased degradation of the environment and are contributing to the high demand experienced in this industry as they offer scholarships to needy students willing to study environmental sciences and also give donor aid to those establishing environmental conservation oriented investments (AL ABED, 2001). 
3.3. Key Success Factors
Keys to Success
¯ Accessible store where you always find something new that you want.
¯ Excellent vendor relationship that will facilitate quick shipment of orders placed.
¯ Establish an effective strategy for advertising to our target customers through digital marketing.
¯ Create a store image that our target customers see as both attractive and trendy.
* The Eco Fashions will be managed at minimal costs so as to maximize net profits. The business will be housed in a leased building where the initial renovations costs and operating expenses will be kept to a minimum, with cost of sales and margins reviewed on a monthly basis.
4.0. The Value Proposition
4.1. Uniqueness of the proposition
In order to attract, win and maintain more and clients, Eco Fashions will emphasize on the following concepts;
¯ Exceptional Service -Eco Fashions will focus on offering excellent customer service.
¯ Eco Fashions will employ qualified staffs in clothes and design to ensure that products are quality and trendy. A knowledgeable team will ensure that quality services and fashionable clothes are produced.
4.2. Appeal to society and consumers
* Employees will be trained on how to resolve any dispute arising in the course of their duty amicably.
* A customer feedback program will be established. Eco Fashions will strive continuously imp...