Business Plan: Modern Fashion Clothing (Essay Sample)

TASK: BUSINESS PLAN (MODERN FASHION CLOTHING)
EXECUTIVE SUMMARY
1 Introduction
Modern clothing wear is a new clothing store that will cater for African American wear in Runyenjes. As our name suggests, our focus is to provide all types of clothes including African American wear and position ourselves as the top clothing store in different markets.
2 Business description
The business will operate under the name “Modern Clothing Wear” and will be located at Runyenjes. It will operate as a sole proprietor with Denis as the proprietor. The proposed business address will be P.O. BOX 1923, Runyenjes, Embu. The main activity of the business will be selling all types of modern clothes.
3 Marketing plan.
The business potential customers will include the dwellers of Runyenjes and other various owners of businesses in Runyenjes shopping center. The business is going to face two competitors namely; Oasis clothing stores and Mutindwa clothing stores.
4 Organizational and Management plan
The business will be managed by various personnel in their various sections. The owner will be the overall boss assisted by the manager who will also check on the shortcomings of the business and give solutions in absence of the general manager. All the accounts will be under the accounting manager who will keep books of accounts and receive payments and information on behalf of the business.
5 Financing plan.
It is re-operational cost of estimation of working capital. Starting capital of Modern clothing wear is one million, whereby the owner will invest one million, the remaining amount which is one hundred thousand will be borrowed from KCB Bank, and the rest 70,000 will be contributed by friends.
CHAPTER TWO
BUSINESS BACKGROUND AND OBJECTIVES
2.1 Personal background
This business will be operated and managed by Denis who is currently a businessman in Runyenjes, Embu Kenya. The business will commence its operation in the September, 2021. This will be possible because the owner Denis will have accumulated enough capital and will also have acquired adequate entrepreneurial skills.
2.2 Products and services to be offered.
The business will offer all types of clothes for men, women and children. The clothes will be the best because; They will be available for all body sizes and styles as well as be made in a unique way. In addition the entire business staff will ensure that their customers get the best products and services at affordable prices and they will be offering individual attention to customers.
2.3 Business rules and regulations.
The business will have the following rules and regulations for effective customer relations:
* Treat each customer with loyalty.
* Always be positive and enthusiastic.
* Communication must be open, honest and prompt.
* Never overlook or underestimate the importance of customer relations.
2.4 Justification of the business.
The research carried out on the area justifies the suitability of the area for the intended type of business. This due to the following reasons:
* Market: There are customers and potential market in the area.
* Demand: There is increased demand of clothes due to high population in the area
* Availability of social amenities. e.g. hospital and schools.
* Good transport and communication network.
.
2.11 Mission
Our mission is offer quality, name brand western wear in an assortment of size and style to accommodate all varying body styles and shape.
CHAPTER THREE
MARKETING PLAN
3.1 Introduction.
Marketing is creating awareness of goods or services that already exist in the market, or being hoped to be put in the market soon that customer may be made aware of it.
3.2 Marketing area.
Marketing area will be selected according to the availability market targeted by the business. For example, since this store is a clothing store, the targeted market should be the availability of large population or where the population is growing rapidly.. At startup, the business will target customers from the surrounding towns starting with Runyenje town.
3.3 Customers
The targeted customers will be grouped according to their potentiality of buying. This grouping will depend on various factors like income, social class, economic activity in the area and traditional belief and practices.
3.4 Competition.
There are two main competitors who are really active and take 70% of the market shared and are located in Runyenjes, but since they opened (after four years of operation) they have never opened other branches.
CHAPTER FOUR
ORGANIZATIONAL STRUCTURE
Owner
Accounting manager marketing manager Operational Manager HR Manager
AdvertisingSales representative
Salary (remuneration) and incentives
This is the pay for work/ services rendered.
The table below shows how the employees will be paid. The salaries will be paid out in monthly basis
Title

Basic salary

Allowances

Total

Chief manager

35,000

7,000

42,000

Managers

30,000

6,000

36,000

Sales representative

16,000

1,100

17,100

Receptionist

10,000

2,000

12,000

Advertiser

10,000

1,500

11,500

Store keeper

7,000

5,000

12,000

Employees

15,000

3,000

18,000

Watchman

6,000

5,000

11,000

CHAPTER SIX
FINANCIAL PLAN
Introduction
Financial plan involves determining the course of action to achieve desired results. It ensures economic operations, improvement motivation, and facilitates control by reducing uncertainties.
The growth of Business will be moderate and the cash balance will always be positive. Being a retail environment we will not be selling on credit; we will accept cash, cheques and all major credit cards. Marketing and advertising will remain at or below 5% of sales. We will continue to re-invest residual profits into company expansion and personnel.
Pre-operational cost
Pre-operational cost refers to the estimated amount of money that is required at startup of the business activities earned out through the year so as to meet the business objectives.
Items

Cost (ksh)

Rent deposit

10,000

Insurance

40,000

Water Bills

4,000

Electricity Bill

1,000

Stock

90,500

Furniture & Fittings

6,600

Licenses

5,000

Machines& Equipment

20,000

Advertisement

4,000

Vehicle

200,000

TOTAL COST

381,000

Working capital
Items

Amount

Stock of goods

1,000,000

Stock of services

600,000

Debtors

340,000

Total capital

1,940,000

Modern fashion Wear Balance Sheet
As at opening January 2022 to December 2024
Assets

1st Jan 2022

31st Dec 20