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Clothing Boutique Business Plan Template [Updated for 2022]
- by Emily Polner
minute read
![Clothing Boutique Business Plan Template [Updated for 2022]](https://blog-assets.lightspeedhq.com/img/2021/09/ee9acfe0-blog_clothing-store-business-plan_1200x628.jpg "clothing retail business plan")
A business plan is a document that outlines its intended purpose and goals and helps serve as a reference to keep you on track after you open your doors. If you plan to raise capital, you can send your boutique business plan to friends, family and other potential investors so they have a clearer idea of what they’re investing in.
In this article, we outline what to include in your clothing store business plan, as well as a blank business plan template for you to use however you see fit. You can be as detailed as you like when writing your plan.
Here’s what you need to know and include to get started:
How to start a clothing store business in 2022
Executive summary, business description and mission statement.
- Product services and pricing
Competitor and market analysis
Clothing marketing strategies, business structure, clothing boutique startup costs and funding , growth forecast, clothing store boutique business plan template, global state of the retail industry report: omnichannel is do or die.
Get to know the state of the industry today as you open your clothing store boutique.
How much does it cost to open a clothing store?
The cost of opening a clothing store varies depending on the size and location of your store. Leasing a retail space costs more in certain geographic areas than others. The average initial cost of opening a store can be anywhere from $48,000 USD to $150,000 USD, and this figure doesn’t include an upfront payment of first month’s rent or utilities.
Having an accurate idea of your initial cost—and, as such, how much funding you need—is one of the key benefits of a thorough boutique business plan.
The costs and logistics involved in starting a clothing store business in 2022 are different than they were even 10 years ago.
You need a rock-solid niche for your business, so you can make a splash in a crowded market. You need a brand identity that stands out, too. Those pieces aren’t new, though creativity is more important than ever—you want your new boutique clothing store to stand out online, after all.
It’s the online aspect that really matters in 2022. Instead of picking between a brick-and-mortar or eCommerce store, your boutique business plan should take both into account. In an era of high-tech stores (even Amazon is getting in on the industry with its new Amazon Style ), customers have come to expect more from retailers.
Keep in mind the technology you need to start a clothing store today: that includes a POS system with an integrated eCom platform, inventory management software that syncs your online and offline stock in real time and loyalty programs to reward them for shopping. These costs, and the time required to manage multiple sales channels, should be built into your business plan.
How to write a clothing boutique business plan
Your business plan can be as long or as short as you’d like, but it needs to be clear to others, not just yourself. Remember, other people might read your plan in order to determine whether or not to invest, so each part needs to be understandable.
Here is an example of a business plan for a boutique clothing store that gets funders on board (and what you should be putting in each section).
The executive summary should be a summary of your entire business plan. It typically appears at the beginning of a business plan, but you should write this last so you can draw from the rest of the sections for a more accurate blurb.
Think of this as the elevator pitch for your boutique business plan. If this summary was all someone read, they’d come away with an idea of what you want to open and why; detailed enough that they get the big picture, but not so detailed that they get lost on the page.
An executive summary should be at most 10% of the entire document. For example, if your clothing store’s business plan is 15 pages long, the summary should be a page and a half at most; if your plan is five pages long, try for a half-page executive summary.
The next section should be a description of what your clothing business is and does. For example, are you a children’s clothing boutique? Are you selling in store, online or both? What kinds of styles are you going to cater to? For instance, do you sell basics like plain tee shirts or pieces with a more bohemian aesthetic?
This is also where you should define your mission and company values. Your mission should answer the questions: why are you starting your business and what will your new store bring to the table? Your company values are the characteristics your business aligns itself with and uses to make informed decisions. What values are most important to you and which qualities will you make a priority?
This is your opportunity to really sell potential funders on why your clothing store will succeed. What’s more compelling: describing yourself as a new apparel retailer, or as a new clothing boutique with a focus on personal styling for young professionals that carries local designers in a high-foot-traffic area in your city’s financial district?
Products, services and pricing
With your executive summary and business description having introduced potential funders to your vision, your boutique business plan should next move into the concrete details. Your products and services section should outline:
- What kinds of items you’ll be selling
- Any services you’ll be offering (i.e. tailoring or clothing rentals)
- The main benefits and features of what you’re selling
- How much each item will cost you vs. what you’ll be selling it for
- How each item will be created or sourced: which suppliers are you getting your inventory from, if any? Do you have existing relationships with suppliers or will you have to create them?
If you plan to offer more or different products later down the line, outline that in this section as well.
It’s important to look at what your competitors are doing to get a sense of which needs are being met and where the biggest gaps in the market lie. Make sure you explain how you’re positioning yourself and why you offer something different or better than what already exists. Include the following information:
- Competitor analysis: who are your competitors? What seems to be working for them and what doesn’t? How long have your competitors been in business? Are they growing? Make sure you categorize your competition into direct and indirect competitors in your boutique business plan. Direct competitors will be anyone who is targeting your exact niche, while indirect competitors will be big chain retailers and department stores who offer an alternative experience to what you’re building.
- Industry trends: talk about the current trends and future predictions for your industry. Is it popular or growing? How have these trends impacted your niche? Can you expect these trends to keep growing—and what proof do you have that the popularity of your chosen focus isn’t just a passing fad?
- SWOT analysis: a SWOT (strengths, weaknesses, opportunities and threats) analysis details exactly what it sounds like it does. Think about what your biggest strengths and opportunities are, as a business. On the flip side, is there anything that may be a potential threat to your success?
- Target customer: what kind of person you’re aiming to target. Who is going to shop at your store? Where do they live, how old are they and what are their main pain points? What are they looking to get out of a clothing store, and how will you serve their needs? Do you have any data about your particular target’s spending power and shopping habits?
As a new business, you’ll need to promote yourself to bring customers in the door. Use this section of your boutique business plan to explain to investors and your team how you intend to do that.
- Which marketing channels do you plan to use? Are you going to use email marketing, social media marketing , SEO blogging, PR or influencer marketing ?
- Do you plan to run paid advertisements or only market your business organically, or both? If you plan to pay for advertising, you’ll need to include this budget in your costs section.
- How will you measure the success of your marketing efforts? Which metrics will you examine to determine whether or not you met, exceeded or fell short of your goals?
- What sort of loyalty program will you use to ensure customers keep returning? How will you split your budget for marketing to new customers and reaching out to returning customers?
The structure of your business will have a big impact on how it’s taxed and managed. Define your plans for incorporating as well as your org chart:
- How is your business defined, legally ? Is it an LLC, an S-Corporation, a partnership or unincorporated?
- Who is running the clothing business? List the founders and what each person brings to the table in terms of skills and capital.
- What kinds of roles will you be hiring for? Who reports to whom? Create a preliminary organizational chart that includes the current hierarchy of your business and which roles will need to be filled.
There are many upfront purchases to be made as well as recurring expenses that come with starting a clothing store. This is where you’ll list what you need to buy and the funding you’ll need in order to make sure you get everything you need. Here are some examples of costs you might include:
One-time costs
- Lease, security deposit and other fees associated with signing a retail lease
- Furniture and façade costs
- Initial inventory
- Technology hardware, such as computers, tablets, phones, credit card readers
- Website design costs (if you’re not using an eCom platform with a built-in site builder)
- Grand opening costs for the store’s launch day
Recurring expenses
- Rent and utilities
- Employee wages
- Marketing and advertising
- Retail commerce platform subscription
- eCom platform subscription and web hosting costs
- Domain name registration
- Accounting services
In addition to listing expected expenses and funding needs, also add a projected profit and loss statement, cash flow and balance sheet, if you’re able to. This will help paint a more complete financial picture.
Growth forecast
In this section, list how much inventory you’ll have on to start and your initial assets. Plan how much cash you’ll have on hand for your grand opening.
Here is where you can predict how quickly you will grow and in what ways you intend to expand. How much revenue do you intend to generate after one year in operation? Do you plan to offer more products in the future? Are you envisioning outgrowing your first retail space? Do you intend to open more locations? Describe these plans to the best of your ability.
Now that you know what goes into a business plan, you’re ready to make one. Fill in this free template to set your future clothing store up for success.
Executive summary
Business name:
Founders and executive team:
Products and services:
Target demographic:
Marketing strategies:
Future plans and goals:
Company description
What does your business do?
What gap does it fill in the market?
Mission statement:
Core values:
Description of each product and service:
How you plan to price each item:
Supply chain details:
Competitor and market analysis
Competitor analysis:
Industry trends:
Market size:
SWOT analysis:
Target customer:
Marketing strategies
Which marketing channels you’ll be using:
Plans for paid vs. organic marketing:
Loyalty program outline:
Marketing goals:
Legal structure:
Business leaders:
Organizational chart:
Hiring plans:
Startup costs and funding
What you need to buy:
How much funding you need:
Profit and loss statement:
Balance sheet:
Assets:
Cash on hand:
Revenue (projected or actual):
Other growth plans or predictions:
Create your clothing business the way you envision it
A clothing store business plan can help you solidify your thoughts and ideas so that you can start your business the way you intend to. Taking time to ask yourself important questions like how and why you’re starting will serve you well in the long run.
Clothing retailers use Lightspeed’s commerce platform to take sales, manage inventory, create a website and so much more. If you’d like to learn about how Lightspeed can help you accomplish your business goals, watch a demo .
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Emily is a Content Specialist at Lightspeed, where she brings her passion, knowledge, and expertise to give you helpful tips on how to take your retail business to the next level. When she’s not behind the keyboard, Emily can be found thrifting, getting iced lattes at local cafes or endlessly scrolling through TikTok.
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Clothing Store Business Plan Template
Business Plan Outline
- Clothing Store Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
Start Your Clothing Store Plan Here
Clothing Store Business Plan
You’ve come to the right place to create your own business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their clothing stores.
Essential Components of a Business Plan
Below are links to each section of your business plan:
Next Section: Executive Summary >
Clothing Retail Business Plan FAQs
What is a clothing store business plan.
A business plan is a plan to start and/or grow your clothing store. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your plan using our Clothing Store Business Plan Template here .
What Are the Main Types of Clothing Stores?
Clothing stores are categorized by the kind of clothing that they sell. Those that sell expensive brands are considered high end or designer clothing stores. Stores that offer trendy or popular styles, that are similar to premium brands, but lower in quality are called fast fashion brands. The most common type of clothing stores are those that specialize in a specific kind of clothing like athletic apparel, lingerie, children’s clothing and plus size clothing.
What Are the Main Sources of Revenues and Expenses for a Clothing Store?
The primary source of revenue for a clothing retail business comes from clothing sales.
The key expenses for clothing stores are rent, salaries and wages, cost of goods sold, and marketing expenses.
How Do You Get Funding for Your Clothing Store?
Clothing stores are typically funded through small business loans, personal savings, credit card financing and/or angel investors.
What are the Steps To Start a Clothing Store Business?
Starting a clothing store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Clothing Store Business Plan - The first step in starting a business is to create a detailed clothing store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your clothing store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your clothing store business is in compliance with local laws.
3. Register Your Clothing Store Business - Once you have chosen a legal structure, the next step is to register your clothing store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your clothing store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Clothing Store Equipment & Supplies - In order to start your clothing store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your clothing store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful clothing store business:
- How to Start a Clothing Store Business
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© 2023 PlanBuildr.com
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Starting a clothing business requires a passion for clothing design and fashion. But in order to create a successful fashion line that lasts, you also need a business plan. If you’ve ever wanted to break into the fashion business, you may want to check out our clothing and fashion sample plans.
Shops, boutiques, clothing design, and eCommerce are all covered here to give you ideas and planning elements to successfully launch your own business.
Or to develop a more modern business plan, that fits your retail business perfectly we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance that helps you spend less time planning and more time designing the next big fashion trend.
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Free Clothing Retail Sample Business Plan
If you’re writing a business plan for your clothing retail business, it can be helpful to start by looking at a sample business plan to help you get a sense of what to include in each section. You’re in luck. Download Bplans’ free clothing retail sample business plan Word doc or PDF to help you create a business plan of your own.
Remember, finding a sample business plan that exactly matches your business isn’t necessary . The details your in your plan will be different based on whether you’re starting a high fashion boutique in a big city, or a neighborhood shop catering to weekend adventurers, for example. But either way, the bones of the plan will be the same, so you can use an example from any type of retail clothing business for inspiration.
Are you writing a business plan for your clothing shop because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company. Take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.
What should you include in a clothing retail business plan?
Your clothing retail business plan doesn’t need to be hundreds of pages—keep it as short and concise as possible. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products, market analysis, strategy and implementation plan, management team, financial plan, and appendix.
Here’s an example of a clothing retail business plan outline .
Download and edit this free clothing and retail sample business plan PDF or Word doc now, or visit Bplans’ gallery of more than 500 sample business plans if you’re looking for more options.
There are plenty of reasons retailers can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.
Kateri Kosta
Kateri is a leader in innovative brand and content marketing. She’s committed to putting the best words in the right order to deliver high quality, discoverable, and useful tools and resources at scale. She enjoys exploring the intersection of tech, words, and the people to who drive small business culture.
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- Business Plans Handbook
- Business Plans - Volume 09
- Retail Clothing Store Business Plan
Retail Clothing Store
BUSINESS PLAN BOSTON RAGS CLOTHING STORE
423 West Oaks Boulevard Hartford, Connecticut 06103
This plan outlines how Boston Rags, a start-up retail men's, women's, and children's clothing store, will provide the Hartford community with unique clothing they would normally purchase outside of the state.
EXECUTIVE SUMMARY
Company summary, market analysis summary, strategy & implementation summary, management summary, financial plan.
Boston Rags Clothing Store will be a start-up retail men's, women's, and children's clothing store specializing in unique clothing from other parts of the U.S. This business will be a casual urban wear traditional clothing store which will be run by the owners, Nancy Seymour and Joanne Arbor, as a Partnership. It will be located at 423 West Oaks Boulevard, near downtown Hartford, Connecticut. This store will also have a local market and will serve both youth and adults. Our intent is to provide the community with unique clothing they would normally purchase outside of the state.
The business will be financed with $18,299 of the owners' money plus $35,444 from a business loan. Starting costs are $53,743. Sales are estimated at $187, 500 per year by the first year. A positive cash flow will be produced at the end of the first year.
There are no other urban wear stores located within 20 miles of the location selected for this store. Hartford is in an urban city of approximately 104,000 people which is also a part of Hartford County area containing approximately 408,000 people.
Nancy Seymour receives a Veteran's pension (from her late husband) which is adequate for support without drawing from the business. Joanne Arbor is employed full-time by Central Connecticut State University, which is also adequate support without drawing from the business. Joanne has managerial experience and basic knowledge of accounting. She has at least 7 years of retail experience.
Boston Rags's main objectives are to:
- Establish a unique clothing retail business in the city of Hartford, Connecticut
- Create jobs
- Provide quality clothing and customer service at a reasonable price
- Achieve the largest market share in the city for urban wear
- Be an active and vocal member of the community, and to provide continual reinvestment through participation in community activities and financial contributions
- Achieve a profit within the first year
- Continually and consistantly increase total number of customers per year
- Increase average length of customer relationships and decrease customer turnover
Boston Rags Clothing Store is a retail clothing store specializing in unique clothing and accessories. We encourage customers to be experimental with new clothing styles. Our mission is to understand what our customers' needs and hopes are after buying urban wear clothing.
Boston Rags will maintain financial balance while delivering a quality product to our customers. We will make our clothing accessible throughout our community by way of establishing a retail location, fashion shows, and events. We will make a profit and generate cash. We will provide a rewarding work environment and fair compensation to our employees, ultimately provide excellent value to our customers, and a fair return to our owners.
Keys to Success
Boston Rags's keys to success include: implementing an effective cash flow plan, achieving efficiency, running our retail store professionally, and maintaining a serious business discipline to everything we do.
Boston Rags's cash flow plan is to:
- Maintain enough money on hand each month to pay the cash obligations the following month.
- Identify and eliminate deficiencies or surpluses in cash.
- Alter business financial plans to provide more cash if deficiencies are found.
- Invest any revealed excess cash in an accessible, interest bearing, low-risk account such as a savings account or short-term CD or T-bill.
- Eliminate credit and terms to customers (not credit card sales).
- Clearly understand the urban wear market, distribution costs and competition, and continually adjust accordingly.
- Keep enough cash, as needed cushion for security, on hand to cover expenses.
- Reduce accountant expenses by producing our own summary statistics and projections via accounting software.
The business will be named "Boston Rags Clothing Store." This is to identify the store with the city of Boston, Massachusetts, where most of the store's inventory will be purchased. The name is registered in Hartford County under an assumed name.
Boston Rags Clothing Store's primary goal is to find customers and keep them coming back.
Boston Rags is designed to help customers change their look without buying an entirely new wardrobe. We will cater to the person wanting to build a new wardrobe by purchasing clothing and accessory pieces to add to clothing they already have.
Customers will rely on the business they purchase pieces from to give them continuous help and personal opinions. Theirs is a business that repeats and it will be easy to establish a strong clientele.
Customers will save money from having to buy a complete outfit by just purchasing pieces. They will also enjoy shopping in stores that are well inventoried and serviced-minded, such as Boston Rags.
Boston Rags will set the pace for urban fashion for all seasons. Last year's outfit will be accessorized to be this year's outfit. People like to buy clothing pieces and accessories to continue wearing clothing that would be out-of-date otherwise.
Boston Rags will also cater to all types of customers and for all occasions other than routine shopping. Examples: Wives buying gifts for their husbands, friends buying gifts for their friends, etc. Boston Rags's store will be a source of wearable gifts.
Retail profits can be as high as 65-85 percent on clothing and accessory pieces. The sales and profit margins in a specialty clothing and accessory store are higher than the average retail store. We have the opportunity to profit successfully.
The urban clothing market is the most exciting, fastest growing market for consumers. They will always look for unique clothing pieces and they will not hesitate to buy them.
Company Ownership
The business will be retail sales of urban clothing and associated products. Nancy Seymour will hold 50 percent ownership and Joanne Arbor will also hold 50 percent ownership. It will be set up as a partnership at start-up and then phase into a Limited Liability Corporation by the second year.
Start-up Summary
Total start-up expense (including fixtures, equipment, and grand opening) is $53,743. Startup assets required $19,000 in inventory. With the owners' investment of $18,299, the amount of additional start-up funds needed are $35,444. The details are included in the following chart and table. It is planned to start the business in the month of December because this is the Christmas seasonal month in which retail store are known to have high sales. Once established, business volume may be somewhat cyclical for that reason.
Company Location and Facilities
Boston Rags Clothing Store will be located at 423 West Oaks Boulevard, Hartford, Connecticut. The store is approximately 2500 square feet. It contains two dressing rooms and a unisex restroom. Parking space is available in front of the store with additional spaces in the rear for overflow. The are a variety of businesses in the area that include Burger King, White Castle, and a flower shop along with Central Connecticut State University. This variety of businesses creates a constant flow of traffic during most business hours.
Business Operations
While a clothing retail store is not unique in itself, this business will have one-of-a-kind items and provide personal one-on-one attention to customers after hours when needed. Customers can buy sweaters, dress slacks, dress shirts, coats, jogging suits, jean outfits, childrens' items, catalog items, and more. The store hours will be 7 days a week. Store hours will be from 10 A.M. to 10 P.M., Monday through Saturday, and 11:00 A.M. to 8:00 P.M. on Sundays.
We will have two full-time employees. The wages for these employees will be $6.00 hour. We will not be offering benefits for the first couple of years. Employees will do the cleaning of the building.
The inventory will be purchased through several vendors that include: BRG Sportswear, Inc., White Sail, USA 66, Wonder, Inc., ABX, and Mark Zap Clothing, Inc. We estimate our inventory to turn over 8 times a year. Starting inventory will be $19,000 with the markup of up to 100 percent.
The following are our operation policies and will be posted throughout the store:
- 30-day layaway with 50 percent down, nonrefundable
- 30-day exchange policy, no cash refunds (this will be written on our receipts)
- $25 fee for check returns
- 2 items at a time in the dressing room
- Accepting credit cards, Visa, Mastercharge, Discover, and American Express
The owners have enlisted the professional services of Mitchell's Accounting and Investment Services to handle Boston Rags's business functions and needs. The following will be conducted by Mitchell's accounting firm:
- Weekly payroll
- Compliance with all Connecticut Sales Tax requirements
- Generate Profit and Loss Statements as required
- Consultation on an as-needed basis
- Generate all 941 requirements as required by Federal, State, and Local Taxes
- Generate all W-2s as required
- Filing all required personal tax returns will be at the current cost rates for Schedule C's and other business returns
This accounting firm will be phased out as we learn how to use the appropriate accounting software to manage our own books.
Ms. Arbor has combined managerial experience of 12 years and has also taken business management classes at Smith Community College and Hartford Business Institute. She is therefore technically qualified to handle the products the store will offer. Boston Rags will be aided in development by Ventures store out of Boston, Massachusetts, and Wonderkins Store out of New York, New York. Ventures and Wonderkins sell similar products to Boston Rags. The owners of Ventures are also close friends of Ms. Arbor. Boston Rags will also utilize the SBA Business Information Center for additional resources and business training.
The owners have referred to an attorney but will not retain an attorney until a later date. The attorney will be used for recommendations in respect to future incorporation as a Limited Liability Corporation. The attorney will also handle any future permit or certificate needs.
Urban wear has increased in popularity as the number of new musical hip-hop artists' popularity has increased over the past several years. Boston Rags will sell products similar to one hip-hop artist, Mark Zap, who has a store in New York. Like Mark's store, Boston Rags's line of clothing of more than 32 pieces, include denim, leather, twill and linen bottoms, linen and silk shirts, silk/cashmere sweater vests, T-shirts, and hats.
Boston Rags, like Mark Zap's, decided to carry a line of clothing that is a "more simple" but still gives off "a chameleon type of feel" in which "it can fit into any type of setting—not too bright or loud." According to Mark Zap this type of urban wear has projected sales in the range of $15 million to $18 million depending on store size. New growth developments in the urban wear industry have made obtaining the clothing much more simple and easy. This clothing can also be sold at festivals and fashion shows.
Boston Rags's inventory tracking system will tell Boston Rags's management what merchandise is in stock, what is on order, when it will arrive, and what was sold. With such a system Boston Rags can plan purchases more intelligently and quickly recognize the fast moving items we need to reorder and the slow moving items we should markdown or specially promote.
We will control inventory right at the cash register with our point-of-sale (POS) software and equipment. Our POS software records each sale when it happens, so inventory records are always up-to-date. We will get more information about the sale than we would gather with a manual system. By running reports based on this information, we will be able to make better decisions.
Our POS equipment includes electronic cash drawers, bar-code scanners, credit card readers, and receipt printers. Our POS software package includes integrated accounting modules, including general ledger, accounts receivable, accounts payable, purchasing, and inventory control systems. In essence, our POS system is an all-in-one way to keep track of our business cash flow. The reporting capabilities of our POS programs include sales, costs, and profits by salesperson or by category for the day, month, and year-to-date.
We will count our inventory once every two weeks (the count cycle). Processing paperwork and placing orders with our vendors will take two weeks (the order cycle). The order will take two weeks to get to us (delivery cycle). Therefore, we will need six weeks worth of inventory from the first day of the count cycle to stay in operation until our merchandise arrives. We will have on hand a six-week supply of inventory and turn it over 8 times a year. According to Retail in Detail by Ronald L. Bond, "estimating sales for a new retail store is very difficult, and loaded with uncertainties." Bond suggests the retailer start with a range from $75 to $200 per square foot per year. We will use the very conservative figure of $75 per square foot per year, similar to Ventures in Boston, Massachusetts.
For inventory valuation we will use the Last In, First Out (LIFO) method. We will sell the most recently purchased inventory first. This method will also help us pay less in taxes.
Our inventory control system will tell us when to buy replacement inventory, what to buy, what not to buy, and how much to buy.
Suppliers will be independent craftspeople, import sources, distributors, and manufacturers. We have established a list of possible suppliers and requested quotes, prices, available discounts, and delivery terms. We have also asked them for customer references. We will also try and establish accounts with these suppliers prior to opening our store.
Consumer expenditures for retail sales rose to $1,139,457 in Hartford, Connecticut, and to $5,842,488 in Hartford County in 1999.
The continuous formation of new musical groups that wear urban clothing helps fuel our business, as does our free music CD store giveaways.
Market Segmentation
According to the Hartford Chamber of Commerce, there are approximately 150,000 males and 165,000 females in Hartford County, totaling 315,000 people. Of those 315,000 people, 186,000 are between the ages of 18 and 54 years of age. Seventy-six percent of the 315, 000 people have a household income of more than $15,000. Boston Rags's target market is men and women between the ages of 18 and 54 with a household income of $15,000 or more.
Target Market and Program Strategies
Near the business thoroughfare is a new residential subdivision under development, where houses are priced at $100,000 and above. Also in the area is the campus of Central Connecticut State University, and downtown Hartford, all which serve Boston Rags's potential customers. Boston Rags's customers are employed men and women, between the ages of 18 to 54 years old with a household medium income of $32,000 and above.
We will use flyers and other literature to act as our representative. Here are some of our marketing programs and strategies:
Designing good ad copy to reach our customers.
- Choose the proper publication
- Have a goal for our advertisement
- Involve the audience
- Inform the buyer
- Headline and illustrations grab attention
- Give them something
- Always be specific
- Make our offer a good one
- Be creative in our media choices—such as unusual avenues like—fax newsletters, mall kiosks, fax-on-demand, publicity stunts, online marketing, anything unusual to reach our target market
- Small classified ads
- Track our results
- Keep all our customers/prospects in a database and stay in touch with them regularly
- Gradually increase the size of our ad and tract the results
- Advertise regularly and consistently
- Evaluate our efforts
Customer loyalty is much more important to Boston Rags than customer satisfaction. We will serve our customers so well they will brag about Boston Rags to others. This will keep them loyal, and also provide a continual flow of customers. We will maintain our customers' happiness by using our Self-Evaluation Program.
Self-Evaluation Program asks the following questions:
- Are Boston Rags's products the best they can be?
- Is the appearance of our cashiers, managers, business surroundings, and appearance of our store professional?
- Can we clearly describe our business in 25 words or less? Can our customers describe our business in 25 words or less?
- Do our customers know about all of our products and services?
- Do we have a well-developed marketing plan that we follow on a consistent basis?
- What if our marketing plans work? Will we be able to handle the increased volume of sales without harming our customers or the quality of our work product?
- Do we treat others with honesty and respect at all times?
Advertising and Promotional Strategy
Boston Rags will try out our promotion on a small portion of our target audience before we roll out the promotion to the rest of the target market. Our tests will include variation on our basic offer, on the text or composition of our message, and on our presentation. The benefits from testing will provide to us early feedback on the response rates and margins used in our break-even calculations for that particular promotion. Testing will also help us roll out successful ideas and omit the not-so-successful ones.
With our promotions we will compare results, analyze, track responses, and measure profitability to insure our promotions are profitable.
Our advertising budget will be equal to 2 or 3 percent of our projected gross sales which averages out to be $5,627 or $457 a month after initial start-up. The budget will be based on the cost method which theorizes that an advertiser can't afford to spend more than he or she has. We will increase this amount for our grand opening.
We have taken the following steps to insure our dollars will be wisely spent on advertising.
- Established our target market by asking ourselves who our customers are and therefore whom we want to reach with our advertising.
- Setting a rough budget for broadcast advertising.
- Contacted sales managers at TV and radio stations in our area and arrange to have a salesperson visit us.
- Talked to other business people in our area about their experiences with broadcast advertising.
- Asked about the "audience delivery" of the available spots.
- Inquired about the production of our commercial.
We then compared various proposals and looked at the cost per thousands and negotiated the most attractive deal based on which outlet offers the most cost-effective way of reaching our audience. We will also buy time well in advance to lower the cost.
Our direct mail campaign will begin by getting our name on as many mailing lists as possible. We will then take note of our reaction to each piece of mail we receive and save the ones that communicate most effectively, noticing the colors, key words, and types of inserts that can be adapted to our own mailer. To get the readers involved we will include stickers that say Yes or No to be pasted on the order form. We will continue to build our direct mailing program with the resources from the Direct Marketing Association (DMA).
We plan to target our advertising to focus as narrowly as possible to the media that will reach our customers. Our customers' location, age, income, interests, and other information will be used to guide us to the right media.
Our printed ads will attract attention through a truly arresting headline and visual element. It will appeal to the reader's self-interest or announce news. It will communicate our company's unique advantage and it will prove our advantage over our competitor. Finally, it will motivate readers to take action. Our printed ads will not be a "hard sell" but it will be an all-out attempt to attract, communicate with, and motivate the reader. All of our ads will answer the customer's number one question: "What is in it for me?"
Our radio and television ads will deliver our message to more customers than any other type of ad campaign. We have a clear understanding of our market so the money spent on broadcast advertising isn't wasted.
For television ads, we will stick to 30-second spots which are standard in the industry. We understand that generally rates vary widely during the first quarter of the year, and sometimes during the third quarter or late in the fourth quarter, which are traditionally slow seasons for many businesses. We will try to avoid paying full rates during the rest of the year or during popular shows or prime time. We will also stretch our dollar by bartering our products for air time.
Our other methods of marketing will include direct mail, encompassing a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters, and sales letters.
Point-of-Purchase (POP) advertising appears in various forms inside our retail store. It is designed to influence the buying behavior of our customers. POP advertising may take many forms in our store, each bearing a sales message. Here are a few examples:
- Counter cards and displays
- Window displays
- Floor stands and cutouts
- Animated displays run by electricity
- Pennants, banners, plaques, streamers
Industry Analysis and Trends
According to the 1994 U.S. Industrial Outlook stores selling mostly nondurables accounted for nearly 64 percent total retail sales, with 1993 revenues topping 1.3 trillion, up 5.7 percent over 1992. Sales of durable goods totaled 757 billion in current dollars, up more than seven percent from 1992 and accounted for 36 percent of the total.
According to The Guide to Retail Business Planning retail operations in the United States generated $2.34 trillion in sales from more than 1.5 million establishments in 1995. From 1994 to 1995 the sector as a whole grew at a rate of approximately 5 percent and represents the second-largest industry in our economy after the service industry.
Retailing has experienced more changes during the past decade than it did in the preceding generations. Although one can argue that retailing is still a domain of small businesses (that is, approximately 75 percent of all retail stores have annual sales of less than $1 million), in recent years slightly more than 80 percent of all sales were generated by stores with sales above $1 million. In addition, the growth of discount retailers has increased at a rate, some experts claim, three times that of the industry. This is due primarily to companies like Wal-Mart (which has been credited with creating one out of every 16 new jobs in the United States in 1994) and to an increase in wholesale membership clubs, such as Toys "R" Us and Circuit City.
Retail customers of the 1990s are significantly different from retail customers of a decade ago, and retail strategies need to be reassessed in view of the changing demographics and new buying patterns.
Competition and Buying Patterns
Boston Rags is located on a strip that includes a variety of businesses, but none of which create any competition. Traffic is moderate to heavy, especially near the lunch and dinner hours. The closest competing urban wear store is at least 20 miles away, located in the Hartford Valley Mall. There are no other urban wear stores in the direct vicinity of Boston Rags's location.
According to the Arbitron, Spring 2000, U.S. Dept. of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, 1998, Hartford County and surrounding areas spend in the following patterns:
Women's and Girls' Clothing
- $449.4 Thousand each Month
- $103.7 Thousand each Week
- $14.8 Thousand each Day
- $1,477 each Hour (ten-hour business day)
Men's and Boys' Clothing
- $323.4 Thousand each Month
- $74.6 Thousand each Week
- $10.6 Thousand each Day
- $1063 each Hour (ten-hour business day)
The Consumer Spending Patterns Report states that the average amount spent on clothing per household is:
Boston Rags uses a strategy of total market service. Our promise is in our location and the products we sell, the people we attract, and the atmosphere we create.
We will create an atmosphere that lures the "Hardcore" urban clothing fans.
Ultimately, we aren't selling either clothing or accessories. We are selling the look. We want to be part of the activity, part of the memory, part of the tradition of dressing in the latest fashions.
Strategic Assumptions:
- Every person is a potential customer and all potential markets experience growth.
- Marketing to one segment of the population will lead to an expansion in overall market growth.
Competitive Edge
Our location is a very important competitive edge. We are there, right at the point of entering or exiting downtown Hartford. The nearest competitor is at least 20 miles away.
The other competitive edge we have developed is the atmosphere and reputation. Boston Rags will bring a part of the Boston, Massachusetts, urban clothing experience to Hartford, Connecticut. That is why we are developing our fashion shows, musical guest appearances, etc. This advantage is important to us because our prices are slightly higher than other urban wear store locations in Connecticut. We will also offer more personal attention to our customers than the larger mall retail stores. We have direct connections to one of the top urban wear retailers in Boston, Massachusetts, called Ventures.
Sales Strategy
It is the intent to start the business selling the clothing people need to create a unique image of themselves. This includes various prints, colors, and styles. To increase sales and promote Boston Rags's store, special events will be held that please people, stimulate interest, pursue leisure, involve social participation, and occur within a specific, prescribed time frame. Some of our special events will include:
- Anniversaries
- Celebrations
- Conferences
- Conventions
- Fashion Shows
- Grand Openings
- Open Houses
- Sports Shows
- Testimonials
- Trade Shows
Special events give Boston Rags powerful vehicles to promote our image, products, merchandise, services, and to generate goodwill to the public.
Boston Rags will use these special events to attract customers, sell products, earn profits, make markets aware of new developments, and make communities aware of their policies, goals, and purposes.
We will not be offering credit to our customers. We will accept checks with the assistance of a check verification company. This check verification company offers check verification and check guarantees. So, if a check has been approved by this company and it turns out to be bad, the company will reimburse us for the value of the check, eliminating our risk of getting paid.
We will accept all major credit cards. Accepting credit cards will increase the probability, speed, and size of our customers' sales. It will give us the chance to increase sales by enabling customers to make impulse buys. It will improve our cash flow because we will receive the money within a few days. It also guarantees we will be paid. All potential sales will be attended to in a timely fashion and long-term salesperson/customer relationships will be a major goal of Boston Rags.
Sales Forecast
The peaks for this type of retail business are the months of August through December where sales rise as high as $34,472 for the month of December. The valleys for this type of business are January, June, and July where sales are down as far as $7,968 for the month of January. The remaining months have an average sales of about $13,000.
During the valley periods we will concentrate on a saturation of special events and sales. We will also do holiday specials.
Projected sales based on square footage ranges from $75 to $200. We used the more conservative rate of $75. The store is 2,500 square feet, multiplied by $75 to give us a Gross Sales of $187,500 the first year and maintaining that average through the second year. There will be some cycling, but it will take some experience to ascertain it. Summer months will probably be lower than winter. Computations are base on a 100 percent markup.
Strategic Alliances
Ms. Seymour and Ms. Arbor have begun to build strategic alliances to assist them with buisiness and inventory issues. Those alliances are:
- SBA Business Information Center
- Community Capital Development Corporation
- Hartford Area Investment Fund
- BRG Sportswear, Inc.
- Wonder, Inc.
- Mark Zap Clothing, Inc.
Retailers of nondurable merchandise face a dual challenge of a slow-growing market and changes in demographics and consumer buying habits that have spawned structural changes within the industry. Boston Rags will adjust our competitive strategies to these new realities and take advantage of new marketing techniques as electronic retailing, catalog marketing, a smaller store, and improved customer service. By completing these tasks we can succeed in improving our market position in the changing retailing era of the 1990s and beyond.
The owners are injecting $18,299 of the $53,743 capital needed to start the business. Therefore, 34 percent of the risk is with the owners' money. In the event of business failure it is estimated that the owners' assets and current income would produce the $35,444 needed to repay the loan.
Ms. Arbor has over seven years of experience in retail sales and over five years of managerial experience. She has held positions of responsibility which required meeting company objectives. She receives a sufficient salary from her current job to support her during the incubation period of her business. She will oversee the store on a daily basis. She, along with co-owner Ms. Seymour, will hire two staff persons to work full-time in the store. One person will be responsible for operating the cash register and loss prevention. The other person will be responsible for customer service and inventory control. Ms. Seymour will oversee day-today operations along with Ms. Arbor.
Both owners believe very strongly that relationships should be forthright, work should be structured with enough room for creativity, and pay should commensurate with the amount and quality of work completed. No person is better than another, except in ability, knowledge, and experience.
Personnel Plan
Boston Rags understands the impact hiring and managing our store's staff will have on our business success. Therefore, we have taken the time to make sure all those overseeing the store and those working directly in the store have the qualifications needed to help build our professional image.
It is the intent for the owners to be the key manpower in starting this business. They will be assisted by two full-time employees during certain hours. Employee resources include the local University and Career Alliance. Employee's age is not a factor unless they are under 18, they then would need a worker's permit.
The following two employees will be hired:
The Sales Clerk/Loss Prevention Manager will be Moira Rye. Moira has seven years of retail management experience in the area of cashier and loss prevention.
The Customer Service/Inventory Control Manager will be Rhonda Small. Rhonda has nine years of experience in the area of customer service and inventory control.
Both of these employees have an exceptionally high level of retail experience and professionalism needed to deliver excellent customer service for our customers and management of our store.
Our financial plan anticipates the following:
- Growth will be moderate, cash flows steady
- Marketing will remain below 15 percent of sales
- The company will invest residual profits into financial markets and not company expansion (unless absolutely necessary)
Important Assumptions
Our financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.
Some of the more important underlying assumptions are:
- We assume a strong economy, without major recession
- We assume, of course, that there are no unforeseen changes in the use of clothing which will make the need for clothing obsolete
General Assumptions
Break-even Analysis
A break-even analysis table has been completed on the basis of average costs/prices. With fixed costs of $7,059, $50 in an average sale, and $10 in average variable costs, we need $8,824 per month to break even.
Projected Profit and Loss
Boston Rags will have a profit-to-sales ratio of just over 27 percent. Normally, a start-up concern will operate with negative profits through the first two years. We will avoid that kind of operating loss by knowing our competitors and our target markets.
Projected Cash Flow
We are positioning ourselves in the market as a medium risk concern with steady cash flows. Accounts payable is paid at the end of each month while sales are in cash and credit cards, giving Boston Rags an excellent cash structure. Intelligent marketing will secure a cash balance of $ 77,443 by 2001.
Projected Balance Sheet
All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year 2002.
Business Ratios
The following table shows the projected ratios. We expect to maintain healthy ratios for profitability, risk and return.
Profit and Loss (Income Statement)
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Retail Clothing Line Business Plan
Sell the hottest trends and fashions with your own retail clothing store or fashion boutique. Use this free clothing line business plan to get your business started, including setting up an online clothing store.
Download this Clothing Business Plan free for easy editing in Google Docs or Microsoft Word:
Table of Contents
1.0 EXECUTIVE SUMMARY
1.1 company.
Booming Boutique is a start-up retail establishment that will sell fashionable clothing to women of the Baby Boom generation. We will locate Booming Boutique in downtown Pleasantville, Florida, which is a popular retirement and tourist destination. While our initial goal is to open one boutique, expansion plans include potentially franchising our retail store and/or building a well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the online retail market.
1.2 PRODUCTS & SERVICES
The fashion and retail industry tends to be overly youth focused. However, by closely following generational fashion trends as well as our own customers’ purchasing preferences, we will tailor our inventory to meet the specific needs of our clientele. We will solely focus on the our styles, colors and fits to flatter the lady Baby Boomer/ Meeting the needs of her figure will be our specialty.
1.3 MARKET ANALYSIS
The total sales reported in the U.S. retail industry in 2007 (including food service and automotive) exceeded $4 trillion. There are roughly 75 million Baby Boomers, half of which are women. In Pleasantville, the current population is just fewer than 40,000. 54 percent of the total population is women who have a median age of 48. The median income is $48,600. We will initially seek customers locally, but will increase our reach as we build our brand and secure our image.
1.4 STRATEGY & IMPLEMENTATION
Booming Boutique recognizes the importance of marketing. And to that end, we plan to promote our retail business with an ambitious, targeted marketing campaign, which will include a grand opening event, local media coverage, print advertising and a direct-mail campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales, and we will partner with local organizations such as the Chamber of Commerce and Downtown Merchants Association as often as possible.
1.5 MANAGEMENT
Robin Mathews and Joanna Jensen are co-owners and will co-manage Booming Boutique. Mathews has worked ten years in the retail industry, including four years as the manager of an antique furniture shop. She earned a BA degree in finance from Britannica College in Tampa, Florida.
Jensen’s experience lies in the fashion industry. She’s worked with designers, wholesalers and retailers for roughly 20 years. Jensen holds a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.
1.6 FINANCIAL PLAN
Our company will earn revenue from our customers’ purchases of our products. Booming Boutique’s first-year income statement illustrates a profit margin of at least fifty-two percent, with a net income of $44,075 per month – after taxes. Finally, we have determined our break-even point will equal no less than $15,500 in total monthly sales. We project our annual profits to reach $380,000 by year three.
Our company will generate revenue from the retail sale of clothing and other merchandise. First year sales are projected to be $285,000, and we expect sales to surpass $525,000 by the end of year three. We will achieve month-to-month profitability within the first year.
1.7 SOURCES & USE OF FUNDS
Booming Boutique requires $282,000 to launch successfully. We’ve already raised $62,000 through personal investments and a small community grant.
We are currently seeking additional funding from outside angel investors and business loans. Start-up funds will be used for renovations, inventory and operating expenses such as rent, utilities and payroll.
Further, most of our initial investment will also be used to purchase retail equipment and inventory software – all of which will produce future benefits for the company.
A small portion of our investment will be used to create an online clothing store. There are inexpensive e-commerce tools that provide a very easy way to create an online boutique store where we can sell our fashions all over the world.
2.0 COMPANY
2.1 company & industry.
Booming Boutique will be located in downtown Pleasantville, Florida. Our company is a retail establishment selling fashionable women’s clothing to up-and-coming Baby Boomer retirees. Our business operates within the retail industry and is classified under NAICS code 448120 – women’s clothing stores.
2.2 LEGAL ENTITY & OWNERSHIP
Booming Boutique is a multi-member Limited Liability Corporation formally organized in Florida. Robin Mathews and Joanna Jensen are the company’s principle owners. We hold equal shares of ownership in the company.
2.3 COMPANY HISTORY TO DATE
The Company is a new business aimed at providing women of the Baby Boom generation stylish clothing options to buy and wear. As the company’s founders and as Baby Boomers ourselves, we found that Florida’s current boomer-wear market is missing the mark.
In fact, most clothing shops for the 55+ set are still selling clothes that our grandmothers would have worn. As our local population ages and more Baby Boomers reach retirement-age and migrate to Florida, we recognize the need for a shop that caters to the up-beat, fashion-forward Baby Boomer generation who want to look and feel young.
2.4 FACILITIES
Presently, Booming Boutique does not have a bricks-and-mortar location. However, we have identified an ideal spot in the downtown district of Pleasantville. The gorgeous area includes numerous restaurants, an art gallery, coffee shop, candy store and a picturesque park in the town square. We have signed a three-year lease for a 1,700 square foot building at $18 per square foot. Comparable properties are renting for $17-24 SF/Year.
Working with the property owner and the City of Pleasantville Downtown Redevelopment Committee, we have secured a $2,000 grant to beautify the façade of the building to include painting, signage and a new awning. We will only need minimal internal renovations such as installing dressing rooms and decorative items.
When considering the addition of wall mounts for merchandise, multi-level clothing displays as well as creative floor planning, this facility is large enough to support future growth. Additionally, we will be able to conduct all aspects of our business from this location since it has access to a loading dock and a back office for managers. This includes deliveries and shipments, inventory management and administrative duties such as finance, buying and marketing.
2.5 KEY ASSETS
Our key assets are our co-owners, Robin Mathews and Joanna Jensen, who bring tremendous experience and relationships to this business.
Once we launch Booming Boutique, our primary asset will be our brand, which will convey style, quality and a great shopping experience. In the long-term, it is this brand that will separate Booming Boutique from other retailers both locally and nationally.
3.0 PRODUCTS AND SERVICES
3.1 description.
Booming Boutique will sell a combination of widely recognized name brands as well as clothing lines from select fashion designers. We will closely follow generational fashion trends as well as our own customers’ purchasing preferences. Moreover, we will tailor our inventory to meet the needs of our “boomer” clientele. Solely focusing on the styles, colors and fits to flatter the female Baby Boomer’s figure will be our specialty. While apparel, such as business clothing, casual wear, jeans and formal wear will be our main staple, we will also offer some accessories such as belts, scarves, and hats.
We will earn profits by selling our merchandise. Our pricing structure will remain flexible, as we will implement suggested retail pricing on common brands as well as the standard practice of keystoning prices. Additionally, we will use a value-based pricing structure, which measures the value of our products to our customers such as easy access, quality, customer service and styles flattering to our target consumer. We will implement end of season sales, holiday and overstock sales, multi-buy savings and promotional coupons at strategic intervals.
3.2 FEATURES & BENEFITS
One key feature that separates Booming Boutique from all other local boutiques and chain department stores in the area is our commitment to providing women of the Baby Boom generation stylish, quality clothing options. Because our primary concern will be ensuring our consumers are happy with the fit and style of their purchase, we will provide products tailored to all shapes and sizes of women. In addition, we will make every effort to have petite and plus size versions of our merchandise in stock. If they are not in stock, ordering them will be easy, cheap and efficient.
Further, Booming Boutique will not just be a store that sells clothes. Our clientele will benefit from an experienced, knowledgeable sales staff. Out of the gate, our goal is to implement a superior customer service system. Beyond our friendly reception and an inviting atmosphere, Booming Boutique will also offer customers fashion information and advice. Our trained personnel will provide counsel that women simply cannot find at other clothing stores. The service is like a beautician who offers advice on what hair styles best complement his/her client’s face. Our hip and qualified fashion-industry expertise will ensure our customers walk away with the perfect outfit.
3.3 COMPETITION
In Pleasantville, there are no direct competitors offering our unique services or targeting Baby Boomers specifically. In the Downtown District, the shops most closely competing with Booming Boutique are as follows:
- EcoWise Boutique, which targets a younger demographic and specializes in natural fiber clothing. They also carry local art and jewelry.
- Caddy Corner Kids, which targets parents shopping for children, specializes in children’s clothing, accessories and toys.
- Kati Kouture, which targets younger women, specializes in offering industrial chic clothing with “classic lines and a punk gothic edge.”
- Marjorie Joe’s Fashion & Gifts targets older women within our target demographic, but specializes in the more homemade, old-fashioned style clothing.
- Petal Place Boutique targets women within our target demographic as well, but they specialize in an affordable, folksy style of clothing with handmade shawls and embroidered shirt sets.
- Second Time Around targets women and may overlap our target demographic slightly. However, they specialize in consignment clothing.
There is one super-store within a 60-mile radius of Pleasantville. The store is similar to Walmart in that it sells lesser quality items at lower price. But there are two chain department stores. They sell men’s, women’s and children’s clothing along with home accents, electronics and appliances. While familiarity is comforting, industry research indicates increasing frustration with the inferior quality, sub par customer service and vastness of super-stores. Not to mention, the inept sales staff and lack of selection often found at department stores.
3.4 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY
To date, our primary competitive advantage is the absence of any store like ours in the Pleasantville area. In addition, company co-owner, Joanna Jensen, has worked in the fashion industry for more than 20 years. Her experience includes working with apparel retailers, clothing wholesalers, garment manufacturers, and fashion designers. She understands the fashion industry and knows how to spot the latest trends.
While there is no guarantee a competitor will locate within our area, we have no doubt in our fashion sense, outstanding customer service and quality products. In turn we will quickly establish Booming Boutique as the place for lady Baby Boomers to shop.
Also, we would be the only niche fashion retail-store for hip, older women. While other stores offer some style equivalents, they are not focused solely on the baby boomer generation. We are, and therefore, have a distinct competitive advantage in our niche.
Our supplier relationships and exclusive product offerings will prevent future competitors from entering the market as a competitor. Also, it takes time to build a retail store, and by the time a competitor attempts to compete with us directly, we will have already established a strong customer base.
3.5 DEVELOPMENT
As our company grows and our boutique earns a positive reputation, several opportunities will open to us. And we are considering some options already. Should we choose to remain a small local boutique, we will develop and grow our company by increasing existing clothing lines and expanding our selection to include additional products such as swim wear, lingerie, or sportswear. Within five years, we will assess the potential for franchising our stores in select locations.
Additionally, as we build our business, we plan to simultaneously develop an online clothing store for Booming Boutique. The power and ease of an online storefront is obvious to us, and we plan to develop one quickly and efficiently. We also see the potential for regional and/or national expansion at some point.
Our online clothing store will help to spread awareness of our product line and brand to a wider community.
4.0 MARKET ANALYSIS
4.1 target customer.
Booming Boutique is a business-to-consumer retail company. Female Baby Boomers are our clear target customers. However, we do realize that we will likely attract some younger women with our peripheral products (handbags, scarves, etc.). Moreover, we expect a portion of our products to catch on with the younger generations. It’s important that we do not offer products that are exclusive to the older audience.
Having said that, there are currently about 75 million Baby Boomers living in the United States. A boomer is better described as the generation born between the years 1946 and 1964. About half of this population is women.
While those born in the 1940’s are still slightly more conservative, those born during the 1950’s and 60’s were trailblazers and trendsetters. Specifically, these will be the women we target vigorously with our marketing and offerings. These women range in age from their mid 40’s to late 50’s. They value uniqueness, convenience, service and quality. As they retire, price does become a factor in decision-making. At the same time, they were always a generation of the “buy now and pay later” philosophy.
4.2 MARKET SIZE
Pleasantville accommodates a robust retail market. While car dealerships, grocers and home improvement retailers account for a sizable portion of the retail market, the main local shopping district is downtown. With tree-lined streets and quaint shops and restaurants, the downtown retail district is the social and shopping hub of the community. The current population of Pleasantville is just fewer than 40,000. 54 percent are women who have a median age of 48. Their median income is above the national average at $48,600. Moreover, according to National News, Pleasantville is one of the 2008 Top 6 Towns to Retire for Baby Boomers. Many of these retirees are looking to retire on the water in a cozy, yet thriving community.
In addition to local consumers, we will also benefit from tourist traffic. Pleasantville is located a mere 30 miles from the sandy white beaches of St. Petersburg and Clearwater. It’s also within close proximity to many Tampa and Orlando area attractions. Our town boasts a healthy and recession-proof tourism industry. In addition, Pleasantville hosts several annual craft and golf events, which bring several thousand of our target consumers into the area each year.
The retail fashion industry is a solid business with ever-changing styles and ever-present consumer demand. While supercenters and megastores ruled the past two decades, more and more consumers are looking for change. They’re searching for a more serene and customer-friendly shopping experience. This is true especially for those nearing retirement age. In reality, as the Baby Boomers numbers decrease, there will be fewer older Generation X-ers to sell to. However, this market decrease will not occur for at least twenty years. Even then, clothing will always be in high demand. The fashion industry in America has been thriving since the advent of moving pictures.
4.4 SWOT ANALYSIS
- Experience and understanding of the fashion industry
- Unique shopping experience with exceptional customer service
- Great downtown location
- Large and growing consumer base
- Untested market in Pleasantville
- While market is large, it is a niche market (Baby Boomers)
Opportunities
- Outstanding shopping experience will lead to repeat business
- Growing online clothing store Booming Boutique
- Establish a Booming Boutique clothing line
- Cost and effectiveness of marketing to women “Baby Boomers”
- New retail shops that may or may not open in the future
5.0 STRATEGY & IMPLEMENTATION
5.1 philosophy.
Our company’s core business strategy is to combine exceptional and knowledgeable customer service with quality stylish merchandise. And n turn, we’ll provide an enjoyable shopping experience for our customers. Booming Boutique’s mission is to offer women of the Baby Boom generation a wide selection of fashionable, figure-flattering clothing. Our aim is to establish our company as a pioneer in this youth-obsessed industry and build a boutique brand name that will be synonymous with the fashion industry revolution.
5.2 PRODUCT DEVELOPMENT
We are currently working with several apparel wholesalers, garment manufacturers and two freelance fashion designers to assemble our inventory. We are also working with city economic-development officials to secure all required permits and occupational licensees. Once we secure financing, we will move ahead with the façade renovation, which we will pay for via the PDRC. We will also use the financing to purchase inventory, retail displays, and office supplies.
Prior to the grand opening of Booming Boutique, we will schedule an event with the Chamber of Commerce and start our promotions with pre-publicity flyers, advertising and additional marketing activities.
5.3 INTERNET STRATEGY
As the Internet has become a staple of American life and retail merchandising, Booming Boutique will build a website on which we will sell our products, too. We have secured the domain name BoomingBoutique.com and will begin site development using Shopify or Wix . These platforms allow us to create an online storefront quickly and will manage all aspects of it including creating shipping labels, accepting payment, and monitoring inventory. Customers will also be able to create wish lists for items they want to purchase later.
Having this online presence will allow us to build our email marketing list and send regular promotions to customers with new product announcements, discounts, specials, birthday coupons, and fashion ideas.
Foremost, we intend to showcase our brand, our clothing and provide customers with the ability to purchase items online. As the site progresses, we will include features such as fashion advice, designer interviews, newsletters, and Internet-only specials. Eventually, we hope to establish and nurture an online social community where women can gather and discuss topics of the day, network and share clothing secrets.
5.4 MARKETING STRATEGY
We both have strong marketing backgrounds and recognize the significance of effective marketing. We expect our strategy to draw consumers into Booming Boutique from the very beginning. Moreover we will hire a local PR firm to help us develop and implement a strategic marketing plan and guide our publicity efforts in a cost-effective manner. Our marketing message, logo and slogans will revolve around the idea of the Baby Boom generation as revolutionaries and trend setters. Boomer women are in their prime and at their best. Our store will recognize them as a force within the fashion industry.
Our goal is to keep our marketing budget to no more than 5% of our gross annual sales. 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. Booming Boutique’s initial marketing efforts will remain local as we establish a presence in our community. These will rely heavily on local print and broadcast media coverage, traditional advertising, signage, a direct mail marketing campaign and networking. We will initially allocate a significant portion of our advertising budget to print and broadcast media to get the word out.
Of course, we will build anticipation and excitement about the new boutique prior to its grand opening. Working in conjunction with the Chamber of Commerce, we are already talking about a grand opening soiree. This will include hors d’oeuvres donated by the bistro across the street and a silent auction of a local artist’s painting collection. The collection is currently on display in the Downtown Art League Gallery.
We will also hold a drawing for a $100 shopping spree and fashion consultation. Entry collection will start at the grand opening and continue throughout the week. We will use these names and contact information for follow-up marketing initiatives. The Chamber of Commerce and the Downtown Merchants Association will promote the event in local newspapers and radio advertising. Comprehensive advertising and semi-annual direct mail marketing campaigns will follow the grand opening. We will also take advantage of low cost publicity activities such as posting sale flyers on community bulletin boards and online.
5.5 SALES STRATEGY
Booming Boutique plans to generate sales via strategic marketing efforts. These concentrated efforts will be targeting new and returning customers as well as single-visit tourist consumers. We will also implement a referral program rewarding customers who refer new customers with discount coupons. Following our grand opening, we will conduct a direct-mail campaign to targeted consumers that we have signed up through our in-store mailing program. The direct mailers will consist of 5,000 full-color postcard mailers. Each will include at 10% coupon. We will offer promotional discounts and seasonal and clearance sales throughout the year.
Booming Boutique will accept cash and payment via major credit and debit cards. Cash layaway plans will also be permitted. Returns and exchanges must take place within 30 days of purchase and receipts are mandatory.
Our sales staff will include both co-owners and 2-3 part-times sales associates. Combined, Jensen and Mathews have nearly 30 years experience in the fashion and retail industries. We will provide comprehensive training to each sales associate. This will include how to sell merchandise as well as how to provide fashion advice to customers. Our sales team will earn an hourly rate, plus a generous percentage of commission from each sale.
5.6 STRATEGIC ALLIANCES
Booming Boutique plans to join the Pleasantville Chamber of Commerce as well as the Pleasantville Downtown Merchants Association. These organizations are dedicated to promoting local businesses within our community and sponsor several events downtown each year. As a member of these organizations, Booming Boutique will gain exposure, make business contacts, and will benefit from Chamber and Association advertising, Web site promotions and events.
5.7 OPERATIONS
As a retail establishment, Booming Boutique will conduct business seven days a week from 10 a.m. to 6 p.m. Monday through Thursday, from 10 a.m. to 8 p.m. Friday and Saturday, and 12 p.m. to 6 p.m. on Sunday. During the holiday seasons and during special events, we will extend store hours. At this point, the retail store will take require approximately 2/3 of the building’s available space. We will use the remaining space for stock and administrative purposes. In addition to the two full-time co-owners, we will hire three part-time employees to serve customers.
Our company will secure merchandise from local manufacturers with showrooms in Orlando and Miami. We’ll also have access to the Florida Apparel Market, which is the largest wholesale merchandise warehouse in the state. Purchasing from FAM, buyers receive product displays and promotional materials with purchase. Additionally, we will work closely with our regional sales representative. We will also attend relevant pre-season fashion trade shows.
To control costs, track inventory and manage stock levels, we will put an inventory control system in place. This will include the standard bar code with its related equipment and software. Staff will conduct annual inventory audits and hire outside auditors when necessary. We will maintain all accounting and finances using Quickbooks online.
The following is a list of business goals and milestones we intend to accomplish our first year of operations.
- Complete renovating, stocking, hiring and initial marketing.
- Host a successful grand-opening event.
- Penetrate and raise awareness in 60 percent our targeted consumer market.
- Achieve a profit margin of 50 percent.
- Build a solid customer base and mailing list.
- Generate repeat and referral sales.
- Become a profitable business with expansion potential.
- Establish a solid reputation as quality retail establishment.
Our first major milestones will be securing funds and setting up our business. This is our major focus right now. In five years, we hope to have established our retail business within the community and within our industry. Furthermore, as co-owners, we would like to see the growth of our store with an increase in product lines, further penetration of the national market with online sales and, under the right set of circumstances, the opening of franchise Booming Boutiques in strategic locations.
5.9 EXIT STRATEGY
The co-owners intend to launch and grow Booming Boutique for many years into the future. In the event that our investors require repayment of their initial investments, plus a large return on their investments, we will seek a partner to buyout the investors’ shares. Another alternative is a management buyout, which will be agreed upon in advance.
In the long-term, we will position Booming Boutique as a profitable business that will be an appealing acquisition for any number of retail chains.
6.0 MANAGEMENT
6.1 organizational structure.
As a small business, we will have a small staff. Both co-owners will assume leadership roles within the company and will be responsible for daily operations, overseeing marketing efforts, buying merchandise and managing inventory and all other administrative duties. A small sales staff will assist co-owners with securing sales, assisting customers and general maintenance of stock on the floor.
6.2 LEADERSHIP
Co-owners, Robin Mathews and Joanna Jensen, created this boutique business plan. Both will co-manage Booming Boutique. However, daily responsibilities will differ.
Robin Mathews will manage the day-to-day operations including supervising staff, maintaining inventory and bookkeeping. Mathews worked ten years in the retail industry including four years as a manager of an antique furniture shop. Mathews earned a BA degree in finance from Britannica College in Tampa, Florida.
Joanna Jensen will oversee the merchandise buying for the store as well as maintain a keen awareness of trends within the industry. She will also work with our public relations firm to ensure superior marketing plans are in place and implemented. Jensen worked in the fashion industry in various capacities working with designers, wholesalers and retailers for 20 years. She earned a BA in fashion merchandising from Colliers Fashion Institute in Miami, Florida.
6.3 STAFF MEMBERS
Booming Boutique will employ a sales staff of 3 part-time employees. These positions are yet to be filled. However, we feel the labor pool is such that finding qualified employees will not be an issue. Our sales associates will be paid an hourly wage, plus commission. We will provide bonuses via sales incentives and conduct an annual review to encourage employee retention.
7.0 FINANCIAL PLAN
7.1 requirements.
Booming Boutique will need $282,000 to get our business off the ground. We are currently seeking funding from outside investors and business loans.
At this time we have raised $50,000 in equity capital and an additional $12,000 for a specific-use grant. Both co-owners, Robin Mathews and Joanna Jensen, have invested $25,000 each into Booming Boutique. We are seeking investors for an additional $170,000 in equity investment and $50,000 in loans.
7.2 USE OF FUNDS
We will use the funds we obtain from investment in this boutique business plan to pay for renovations, including the outside façade (to be paid for via PDRC grant), construction of fitting rooms, sales counter, painting, carpeting, lighting, decor and display fixtures. We will also purchase inventory, a cash register, computer equipment and an inventory management system. We will use the remainder of the start-up funds to cover operating expenses, such as rent, utilities, wages and marketing to increase retail sales .
7.3 INCOME STATEMENT PROJECTIONS
Based on our marketing plans , location, store size and product offerings, we expect to collect annual sales of $285,000 in year one, $375,000 in year two and $525,000 in year three.
Our average cost of goods sold will be 40%, which leaves us with a gross margin of 60%. Our minimum monthly fixed costs are $15,500 per month, so we will need to generate sales of $25,833 per month to break even. We will become profitable on a monthly basis before the end of our first year.
In our third year, we will earn net income of $105,000. The accompanying income statement demonstrates our company’s profitability.
7.4 CASH FLOW PROJECTIONS
Our business will collect immediate payment from customers, so our cash flow statement will be substantially similar to our income statement. Our cash flow statement clearly demonstrates our ability to cover all bills.
7.5 BALANCE SHEET
Booming Boutique will launch with $220,000 in equity capital and $50,000 in loans. Credit amounts and supplier terms for inventory will appear in our balance sheet as short-term liabilities. We will not document jewelry consignments from vendors in our balance sheet and will expense these items as we sell them. Details are shown in our enclosed balance sheet.
7.6 ASSUMPTIONS
We base our projections on the assumption that the economy, consumer spending habits and population growth in Pleasantville will continue for the foreseeable future.
We must also assume that our present and future suppliers will continue to sell inventory to us at prices that allow us to maintain our present margins. It is also important that we are able to hire reliable employees at reasonable wages.
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Clothing Store Business Plan
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 15,000 entrepreneurs and business owners create business plans to start and grow their clothing stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a clothing store business plan template step-by-step so you can create your plan today. It can be used to create a women’s clothing boutique business plan, or business plans for a men’s clothing store, family clothing store, children’s clothing store and more.
Download our Clothing Store Business Plan Template here
What Is a Business Plan?
A business plan provides a snapshot of your clothing store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a clothing store business or grow your existing clothing store you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your clothing store in order to improve your chances of success. Your clothing store business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Clothing Store Businesses
With regards to funding, the main sources of funding for a clothing store are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a clothing store is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.
Venture capitalists will not fund a clothing store business. They might consider funding a chain, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could rarely achieve such results.
Finish Your Business Plan Today!
Clothing store business plan template.
Your business plan should include 10 sections as follows:
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of clothing store you are operating and the status; for example, are you a startup, do you have a clothing store business that you would like to grow, or are you operating a chain of clothing stores.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the clothing store industry. Discuss the type of clothing store store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of clothing store business you are operating.
For example, you might operate a clothing store focused on:
- High-End Fashion
- Sports/Athletic Clothing
- Kids Clothing
- Wedding Dresses
- Hip Hop Clothing
In addition to explaining the type of clothing store business you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
In your industry analysis, you need to provide an overview of the clothing store business. While this may seem unnecessary, it serves multiple purposes.
First, researching the clothing store industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards local clothing store businesses with online counterparts, it would be helpful to ensure your plan calls for a significant online presence.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your clothing store business plan:
- How big is the clothing store business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in your local market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your clothing store. You can extrapolate such a figure by assessing the size of your niche’s market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section of your clothing store business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of clothing store business you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most clothing store businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other clothing store businesses. They are most likely local businesses who sell similar items to you.
Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. You most likely will have online competitors; companies that sell the same or similar items to you, but which operate online.
For each direct competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. Look at review websites to gain this information.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior products or services?
- Will you provide products that your competitors don’t?
- Will you make it easier or faster for customers to acquire your products?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a clothing store business plan, your marketing plan should include the following:
Product : in the product section you should reiterate the type of clothing store you documented in your Company Analysis. Then, detail the specific products you will be offering.
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.
Place : Place refers to the location of your clothing store business. Document your location and mention how the location will impact your success. For example, is your clothing store business located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate kiosks, detail the locations where the kiosks will be placed.
Promotions : the final part of your clothing store business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Making your storefront extra appealing to attract passing customers
- Social media marketing
- Search engine optimization
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Local radio advertising
- Banner ads at local venues
Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your clothing store business such as serving customers, procuring inventory, keeping the clothing store clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
Management Team
To demonstrate your clothing store business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the clothing store business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in clothing store businesses and/or successfully running clothing store and small businesses.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 25 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $200,000 on building out your clothing store business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, you may need to purchase inventories now that you can’t sell (and get paid for) for several months. During those months, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a clothing store business:
- Location build-out including design fees, construction, etc.
- Cost of fixtures
- Cost of initial inventory
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your clothing store’s design blueprint or location lease.
Clothing Store Business Plan Summary
Putting together a business plan for your clothing store business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the clothing store business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful clothing store store.
Download Our Clothing Store Business Plan PDF
You can download our clothing store business plan PDF here . This is a business plan template you can use in PDF format.
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Clothing Store Business Plan FAQs
What is the easiest way to complete my clothing store business plan.
Growthink's Ultimate Clothing Store Business Plan Template allows you to quickly and easily complete your Clothing Store Business Plan.
Where Can I Download a Free Clothing Store Business Plan PDF?
You can download our clothing store business plan PDF template here . This is a business plan template you can use in PDF format.
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Clothing Store Business Plan Template [Updated 2023]
Clothing store business plan template.
If you want to start a Clothing Store business or expand your current Clothing Store, you need a business plan.
The following Clothing Store business plan template gives you the key elements to include in a winning Clothing Store business plan. It can be used to create a women’s clothing boutique business plan, or business plans for a men’s clothing store, family clothing store, children’s clothing store and more.
You can download our Clothing Store business plan template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of your Clothing Store business plan:
I. Executive Summary
II. Company Overview
III. Industry Analysis
IV. Customer Analysis
V. Competitive Analysis
VI. Marketing Plan
VII. Operations Plan
VIII. Management Team
IX. Financial Plan
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Clothing Store Business Plan Outline
IMAGES
VIDEO
COMMENTS
Clothing boutique startup costs and funding · Lease, security deposit and other fees associated with signing a retail lease · Furniture and façade costs · Initial
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