business plan of a fashion designer

Example of a Business Plan for a Fashion Designer

Whether you've graduated from Parsons School of Design or a smaller fashion school, you can't begin to create your fashion empire without first creating a business plan. Running a fashion business is challenging and time-consuming, but the results can fulfill your dreams – if you are committed to sticking to your plan. A business plan for opening your own fashion studio must include an executive summary, company vision, market and competitive analysis, and the ways your company will position itself to take advantage of your targeted market.

The Executive Summary

The executive summary of your fashion business plan is the equivalent of an elevator pitch that boils everything down to two paragraphs. It should include the name of your fashion business, the area where you want to operate, the type of clothes and accessories you plan to create, and your target market.

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For example, if you were designing high-end, haute couture dresses, your summary could include, "XYZ Haute Couture will cater to wealthy women from 40 to 55 in San Francisco. Our location in the heart of Union Square will help us attract the wealthiest shoppers in the city who are looking for designer-quality clothing at less-than-market prices."

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This section helps prospective investors understand the type of clothes and accessories you're going to offer in your fashion business and the market that you want to attract. For example, if you're going to make hip-hop street wear, you must explain how that street wear will meet the wants, needs and tastes of your targeted market. More importantly, you must also express a unique selling proposition, which is the thing you believe will set your clothes apart from anyone else in the industry. For instance, if your hip-hop street wear is made using sustainable fabrics, it can help differentiate and brand your fashion business.

Create Your Market Analysis

Defining your target market is essential to helping prospective investors understand how they will get a return on their investment. The biggest mistake fashion designers make is to define their market too broadly. For example, if you're designing comfortable beachwear and you write that your target market is "women between 30 and 45 who love spending time at the beach," you've failed the target market test, because your market is too broad and undefined.

To make it more specific and targeted, you would write that your target market is, "active women between 30 and 45 who earn $50,000 or more per year and spend an average of $2,000 per year on casual clothing and accessories." Your market analysis must also explain how your business will capitalize on existing fashion trends, how your pricing structure compares to that of your main competitors, and how your business will fulfill an untapped niche in the market.

Explain Your Manufacturing Process

Designing fashion is one thing, but manufacturing clothes and accessories for a product line requires a detailed plan. Questions you must answer in this section of your plan include: Where will you manufacture your clothes? Have you obtained estimates with several manufacturing companies? If you're using an overseas manufacturing company, how does the pricing structure change when converted into American dollars?

Explain Your Distribution Process

After you've made plans to design and manufacture your clothes and accessories, you have to explain your distribution plan. You may want to hire a distributor to help you gain access to retail stores in the area as well as big trade shows where you can showcase your designs and secure orders from independent fashion retailers.

Include Your Financial Plan

Your fashion company's financial plan must include financial statements that show the relative health of the business and provide investors and lenders with vital company data. An income statement shows how much revenue the designer expects to generate, as well as the costs the designer expects to encounter as the clothing line develops. The financial plan should also include a break-even analysis that tells investors the threshold of profitability.

For example, you could write, "XYZ Streetwear will adopt a moderate growth plan, with the goal of always having a positive cash balance. Our payment options will include major credit cards, cash and checks. The break-even analysis based on average costs and prices has been completed. With fixed costs of $6,000 and $50 in average sales, and $25 in average variable costs, the business requires $12,500 per month in sales to break even."

• Memphis Fashion Group: Your USP Is More Important Than Your Design

Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social media outreach. He has written primarily for the EHow brand of Demand Studios as well as business strategy sites such as Digital Authority.

Fashion Designer Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Fashion & Style

Are you about starting a fashion designing business? If YES, here is a complete sample fashion designer business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a fashion designing business. We also took it further by analyzing and drafting a sample fashion designing business marketing plan template backed up by actionable guerrilla marketing ideas for fashion designers. So let’s proceed to the business planning section .

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Why Start a Fashion Designer Business?

Look around you and you will notice that everything screams fashion. It would therefore not be out of place to start a fashion business.

Starting a fashion designer business is of course one of the many businesses that can be started in any part of the world and the owner of the business can still penetrate the world market once the design is good and it meets a need in the fashion market.

The bottom line is that there is always a ready market for fashion. The basic thing a fashion designer needs to do is to ensure that he or she carves a niche for his business and works hard to build their brand name to be accepted beyond his/her city of operation.

Fashion designing just like most businesses thrives on creativity, branding and good business skills. Any aspiring entrepreneur can start a fashion design business as long as they are creative, can get people to promote their brand and they have good business skills.

In the fashion industry, your signature is your style. Another important factor that counts in this line of business is the brand name and perhaps the logo of the fashion company. If you look at the leaders in the industry, you will realize that they deliberately choose a unique name and logo to match their fashion line.

Below is a sample fashion designer business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Fashion Designer Business Plan Template

1. industry overview.

The fashion designer industry is made up of businesses that provide professional design services for such products and segments as fashion, clothing, shoes, textiles, fur, jewelry, costumes, lighting and floats.

These services occasionally represent the design branch of a large retail chain, but they more often represent smaller design houses that provide fashion products to several different sellers. This industry does not include in-house design services.

In the actual sense, a fashion designer provides professional design services to a variety of clients in the fashion, apparel, shoe, jewelry and costume industries. When it comes to fashion, many consumers desire an optimal balance between value, quality and style. In past decades, it took extended amounts of time before runway styles carried over to department stores.

Fashion-savvy shoppers had to pay high premiums for trendy designer outfits. Even as incomes increased during the economic recovery, consumers still demanded stylish pieces but were intimidated by high prices. Over the past five years, designers and retailers have started closing the gap between style and value to appeal to massive amounts of consumers.

Fashion designers and retailers have started closing the gap between style and value in order to appeal to massive amounts of consumers. As a result, demand for fashion and other specialized design services increased during the period.

Industry revenue will benefit from rising per capita disposable income and increased consumer confidence; it will also be aided by downstream apparel-manufacturing industries. As consumers demand trendier yet reasonably priced items, department stores will continue collaborating with designers to create product lines with mass appeal.

The Fashion Designers industry is indeed a thriving and viable business in most countries of the world. Statistics have it that in the united states of America alone, the Fashion industry generates over $2 billion annually from more than 19,481 registered and licensed big fashion companies scattered all around the United States of America.

The industry is responsible for the employment of over 26,425 people. No single establishment can boast of having a lion share of the available market in this industry.

It is worthy to mention that the fashion industry is growing and there are opportunities for entrepreneurs to launch their own fashion design business from the scratch and still become a globally recognized brand. The advent of computer and computer software brought leverage in the industry.

Designing clothes, shoes, and other fashion accessories can be conveniently done with the aid of software, and a designer can reach out to the world market by putting up his products for sale online; Instagram, YouTube et al are good platforms to promote this type of business.

2. Executive Summary

Dennis Hatcher™ Fashion Designers, Inc. is an international fashion designer company that will be located in Westchester County – New York.

We have been able to secure a large warehouse in a strategic part of town that will be converted to our fashion designing factory. We were able to out rightly buy over the facility with the help of our bank and support from family and friends.

Dennis Hatcher™ Fashion Designers, Inc. will be involved in fashion clothing design, footwear design, jewelry and accessory design, textile design and other design services. Our business goal is to become one of the leading fashion designer companies in the United States and we will make sure that every of our designs can favorable compete with the best brands in the industry.

Our workers are going to be selected from a pool of talented fashion designers in and around Westchester County – New York and also from any part of the world as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading fashion companies in the United States and throughout the globe.

We have put plans in place to build a state of the art factory in Westchester County – New York, which is why we entered into agreement with some manufacturers of sewing machines to produce customized sewing machines for us that will give us the quality of clothes, shoes and other fashion accessories that we want to be known for. Our factory will be well equipped and we will ensure that we follow the trend in the industry.

Dennis Hatcher™ Fashion Designers, Inc. will design fashion wears for both high – end customers and low income earners; we want to become the people’s choice wherever our designs are put up for sale. Apart from mass production of clothes, shoes and other fashion accessories, we will also be engaged in customized design for customers based on their demands.

Dennis Hatcher™ Fashion Designers, Inc. is a private registered business that is owned by Ian Dennis Hatcher and his immediate family members. Dennis Hatcher is an American fashion enthusiast with over two decades of experience in the fashion industry. He will occupy the position of the chief executive officer (CEO)/President of the organization.

Dennis Hatcher has a Degree in Fashion Designing from New York School of Fashion and also an MBA from Harvard. He is a well – respected figure in the fashion industry, and prior to starting Dennis Hatcher™ Fashion Designers, Inc. he was the creative director in one of the world’s leading fashion label that is based in New York.

3. Our Products and Services

Dennis Hatcher™ Fashion Designers, Inc. is in the fashion industry to design a wide range of fashion wears. We are set to service a wide range of clientele not just in the United States of America, but in all parts of the world and of course to make profits, which is why we will ensure we go all the way to give our clients options.

Our product offerings are listed below;

• Clothing design services
• Costume design services
• Fashion design services
• Float design services
• Jewelry design services
• Shoe design services
• Textile design services

4. Our Mission and Vision Statement

• Our vision is to establish a fashion designer company whose designs will not only be accepted in the United States of America, but also in other parts of the world.
• Our mission is to establish a fashion company that will design and produce high quality official and casual clothes, shoes, and other fashion accessories for male, female, young adults and children; a fashion design label that will compete favorably with international fashion designers all across the world.

Our Business Structure

Dennis Hatcher™ Fashion Designers, Inc. intends to start small in Westchester County – New York, but looks to grow big in order to compete favorably with leading fashion designer companies both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the kind of world class fashion business we want to own.

At Dennis Hatcher™ Fashion Designers, Inc., we will ensure that we hire people that are qualified, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner), General Manager, Human Resources and Admin Manager, Sales and Marketing Executive, Accountant, Fashion Designers, Customer Care Officer and Cleaners

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Upturns management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• In charge of signing checks and documents on behalf of the company
• Appraises the success of the organization

General Manager:

• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Contributes to team effort by accomplishing related results as needed.
• Ensures that the organization operates within stipulated budget.

Human Resources and Admin Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Defines job positions for recruitment and managing interviewing process.
• Carrying out induction for new team members.
• Responsible for training, evaluation and assessment of employees.
• Responsible for arranging travel, meetings and appointments.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Fashion Designers

• Responsible for designing corporate and casual clothes to meet the latest trend, costume design services, fashion design services, float design services, jewelry design services, shoe design services and textile design services.
• Stays abreast with the dynamics of the fashion industry with key interest in corporate and casual clothes.
• Researches and advises the organization on style, size and other trendy fashion statements.

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
• Finds out the customer’s needs, recommend, select and help locate the design, describe a product’s features and benefits.
• Responsible for cleaning the facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Dennis Hatcher™ Fashion Designers, Inc. intends to build a world class fashion designer business that will design both corporate and casual clothes, shoes and other fashion accessories for men, women, young adults and children. We will be based in Westchester County – New York, but we will not restrict our fashion design services to the U.S market alone as we will sell our designs in other parts of the world.

In other to achieve this in a highly competitive industry like the fashion industry, we must ensure that we critically look through our strength, our weaknesses, the opportunities available in the industry and the threats that we will are likely going to face.

Because of the nature of the business we are involved in and the brand we want to build, we were able to hire the services of a Business consultant with bias in fashion and retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Dennis Hatcher™ Fashion Designers, Inc.;

Our strengths are easy adoption of a commercial focus, attractive product presentation, the quality of our employees and the latest machines and equipment that we have in our factory. Our chief executive officer, Mr. Dennis Hatcher will be bringing his vast wealth of experience to the table and that is indeed a huge positive for Dennis Hatcher™ Fashion Designers, Inc.

A major weakness that may count against us is the fact that we are a new fashion company and we don’t have the financial capacity to compete with multi – billion dollar fashion designing labels like Ralph Lauren, Tommy Hilfiger, Hugo Boss, Gap, Lacoste, Nike, Levi Straus, Adidas, Diesel, Nautical, Puma, Prada, Rebel et al when it comes to controlling the market or detecting the trend.

• Opportunities:

The opportunities available to fashion designers in the United States and all across the globe are massive considering the fact that fashion is dynamic and the trends will continue to change. As a matter of fact, the increasing visibility and accessibility of fashion will bode well for industry participants.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new fashion company in same location where our target market exists who may want to adopt same business model like us.

7. MARKET ANALYSIS

• Market Trends

A close study of the fashion industry shows that the industry does not just cater for the demand of younger generations but it is all encompassing, it carters for people of all ages. Fashion designers design clothes for every occasion from wedding to parties, conferences and even funerals.

As a matter of fact, fashion designers do not just look after the interest of their high profile clients like celebrities but they also cover the middle class segment. In recent time, people from middle class follow fashion closely and this has led to the tremendous progress of the fashion industry.

The fashion designer industry is known for its creativity and leaders in the industry are known for their crazy ideas, rapidly changing styles, and cut throat competition. Most industries never experience that kind of volatility.

Fashion designers now leverage on the runway – fashion expos to promote and attract market for their designs. Any fashion designer who is recognized in Paris, Milan, New York City, or London can comfortably become a globally recognized label.

8. Our Target Market

When it comes to fashion designing services, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in the locations where we intend opening our company.

Despite the fact that Dennis Hatcher™ Fashion Designers, Inc. will start operation from a single factory in Westchester County – New York, we have a holistic view of the kind of business we want to build; we want to grow to the level where we will build factories in Thailand and China.

Our clothes, shoes and other fashion accessories are going to be specifically designed to penetrate not just the United States market, but also the world’s fashion industry.

We want people of all walks of life across the globe to someday put on our clothes, shoes and other fashion accessories; we want to see our clothes, shoes and other fashion accessories being worn in Paris, London, Tokyo, Lagos, Madrid, Johannesburg, Bueno Aries, Sao Paulo, Port Elizabeth, Dubai and all over the world.

We are in business to retail our designs to the following groups of people;

• Clothe manufacturing factories
• Celebrities
• Security Outfits
• Businesses and Corporate Organizations that make use of uniforms
• Every adult that resides within the locations where our clothes will be retailed

Our Competitive Advantage

A close study of the fashion industry will reveal that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other fashion companies both in the United States of America and other parts of the world.

Dennis Hatcher™ Fashion Designers, Inc. is launching a standard fashion designer company that will indeed become the preferred choice for cloth dealers and end users in and around Westchester County – New York and other cities all across the world.

Another competitive advantage for Dennis Hatcher™ Fashion Designers, Inc. is the quality and robust wealth of experience of its management team.

The management team comprises of professionals who have worked with some of the leading international brand in the fashion industry. Our latest machines and equipment also count towards our advantage especially when it comes to competing with other fashion companies within the same category that we operate.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Dennis Hatcher™ Fashion Designers, Inc. is in business to retail a wide range of fashion both in the United States and other countries of the world. We are in the fashion industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

We will generate income by offering the following design services;

10. Sales Forecast

One thing is certain when it comes to the fashion business, if you go into the designing of a wide range of clothes, shoes and other fashion accessories, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in and around Westchester County – New York and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the fashion industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Westchester County – New York.

Below are the sales projections for Dennis Hatcher™ Fashion Designers, Inc., it is based on the location of our business and other factors as it relates to fashion startups in the United States;

• First Fiscal Year: $450,000
• Second Fiscal Year: $750,000
• Third Fiscal Year: $1.5 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services within same location.

• Marketing Strategy and Sales Strategy

Before choosing a location for Dennis Hatcher™ Fashion Designers, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in Westchester County – New York. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.

We hired experts who have good understanding of the fashion industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in New York. In summary, Ian Rosen™ Clothes, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our fashion designer company in a grand style with a party for all.
• Introduce our fashion designer label by sending introductory letters to fashion designer companies, celebrities and other key stakeholders in and around New York.
• Attend fashion expos in the U.S and other parts of the world
• Organize our own fashion show; in order for us to display our designs
• Advertise our fashion design label in newspapers, TV and radio stations
• Canvass celebrities to wear and help us promote our clothing label, shoes and other fashion accessories
• List our business on yellow pages ads / local directories
• Leverage on the internet to promote our business
• Engage in direct marketing
• Leverage on word of mouth marketing (referrals).

11. Publicity and Advertising Strategy

Publicity and advertising as it relates to the fashion industry involves being in touch with the organization’s target market and being very creative and proactive. Beyond every reasonable doubt, the media plays a very big role when it comes to helping a designer label gain international significance.

The social media also plays an important role in modern day fashion publicity and advertisement; it gives fashion labels the ability to reach out to a wide range of customers all over the world within a short period of time and of course at a very cheaper price when compared to other publicity and advertising platforms.

Any player in the fashion industry that wants to take on the market must be deliberate when it comes to building brand awareness and credibility. Most often than not, big – time labels ensure that they create great hype whenever they are about to release any unique design from their stable.

Social media such as blogs, micro blogs, podcasts, photo and video sharing sites are some of the tools fashion designers leverage on to promote their labels. Here are the platforms we intend leveraging on to promote and advertise Dennis Hatcher™ Fashion Designers, Inc.;

• Place adverts on both print (newspapers and fashion magazines) and electronic (radio and TV) media platforms
• Sponsor relevant community programs like school fashion shows et al
• Leverage on the internet and social media platforms like Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites to promote our brand
• Attend local and intentional fashion expos
• Organize our own fashion shows
• Promote our clothing label on our official websites and online fashion community
• Build relationship with celebrities especially in the entertainment and sports industry

12. Our Pricing Strategy

Dennis Hatcher™ Fashion Designers, Inc. will make sure that we design and manufacture corporate and casual clothes, shoes and other fashion accessories that will meet the financial capacity of different classes of people in different parts of the world.

The prices of all our corporate and casual clothes, shoes and other fashion accessories will be affordable and at the same time competitive with what is obtainable in the fashion industry.

• Payment Options

The payment policy adopted by Dennis Hatcher™ Fashion Designers, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Dennis Hatcher™ Fashion Designers, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our designs without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to purchase our products.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for achieving our aim of establishing a standard and world class fashion designer company and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Dennis Hatcher™ Fashion Designers, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The total cost for hiring business consultant – $2,500.
• The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of lease for our factory for 24 months – $350,000
• Factory remodeling (construction of racks and shelves) – $20,000
• The amount required for the purchase of industrial sewing machines and clothes making tools – $200,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $250,000
• The cost for start-up inventory (stocking with a wide range of fabrics (textiles), sewing accessories and other related merchandize) – $100,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• The cost for our opening party – $5,000
• Miscellaneous – $5,000

We would need an estimate of $1.5 million to successfully set up our fashion designer factory in Westchester County – New York.

Generating Startup Capital for Dennis Hatcher™ Fashion Designers, Inc.

Dennis Hatcher™ Fashion Designers, Inc. is a family business that is solely owned and financed by Dennis Hatcher and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $500,000 ( Personal savings $400,000 and soft loan from family members $100,000 ) and we are at the final stages of obtaining a loan facility of $1 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Dennis Hatcher™ Fashion Designers, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wares a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Dennis Hatcher™ Fashion Designers, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Application for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of industrial sewing machines and sewing equipment/tools: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Establishing business relationship with vendors – suppliers of textile (fabrics), sewing accessories and related merchandize, clothes wholesalers and other stake holders: In Progress