Address what makes your products unique and appealing to the industry. Many banks require businesses seeking loans to provide detailed business plans. Draft a summary of your overall business plan, and include a description of your company and its goals.
Ideally, it should cover three years of activity, on a seasonal basis, and should include everything from how you communicate as a business and the staff you will hire, to the space you will need and the outside expertise you will require, in terms of marketing, communications or PR.
You also need to address discretionary items such as fashion models or high-end photographers. An income statement uses projections of how your business will grow at the top line, through sales and other revenues, and will also project the costs of delivering that growth.
Share By Imran Amed August 23, This section will help investors, and anyone else reading your business plan, understand what particular market need you are going after and what you will offer that is unique and differentiated. A business plan is an essential tool, not just for raising investment, but also for clarifying your goals and objectives, and communicating these to your wider team of employees, business partners and clients.
But it should also be general enough that it encourages the reader to delve into the full plan.
Hiring a top-rate model to showcase your designs, for example, could greatly increase your opportunities for profit, but could also be prohibitively expensive in the first few years. You might also advertise in fashion blogs, magazines and via social networking.
This should include any directors or owners, as well as managers, employees and contractors. Based on your research, estimate how much value these discretionary items can add to your business in addition to their costs.
Your financial plan shows how your business will grow in terms of both profit and revenue and what financing you will need to make it happen.
The cash flow statement shows the peaks and troughs of your cash situation on a monthly basis and identifies what funding you will need to finance growth. Your marketing strategy should be guided by your market research, including the preferences of your target market.
This is probably the most detailed section of your business plan, identifying the specific actions that your business will take to go after the market opportunity you have identified. Provide information on your target market -- including its demographics and preferences -- in the market research section of your business plan.
Develop a marketing plan based on your market research. Fashion designers frequently offer samples at celebrity events and to magazines. Address necessary costs, such as employee salaries and the costs of designing fashion mock-ups.
Itemize your marketing goals and the projected costs for the first year of business and for the next five years. What are you going to do that is different?
The summary should be specific and address the items you plan to design as well as your sales and profit opportunities. Estimate the costs of recruiting, hiring and retaining key players in your business, and include projections for how compensation might change if your business expands or contracts.
Discuss your specific line of products. You might, for example, target young people with affordable, trendy pieces or aim for a higher-end market with classic, well-tailored clothing.
How fast is it growing and what evidence do you have that this part of the market is a viable opportunity? You also need to identify who the competitors in the market are, whether they are growing and what their position is in the market. How big is the market?Without a business plan you really just have an idea about a business; the business plan is a strategic road map that will help you reach your goals.
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In Part Two of BoF’s Fashion Business Basics, Imran Amed explains the importance of a business plan and how to approach writing one. HOT OFF THE PRESS Top Ten Reviews and killarney10mile.com's Best Business Plan Company Award Winner - Professional Business Plans Delivered in 14 Days.
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A business plan will help you detail the structure of your business, who your ideal customers are and how you plan to make money.
To help you get started we’ve created an example business plan for a business in the fashion & clothing industry.Download