Clothing Store Business Plan

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I.- Clothing Store Executive Summary

Business Overview

[Company Name], located in [insert location here] is a new clothing store focused on upscale children’s fashions. We have created a business plan for a clothing store that seeks to offer a wide variety of girls’ and boys’ clothing that reflect the latest trends. [Company Name] will offer infant, toddler, and preschool-aged children. Fashions will change with the season as well as with specific holidays and events (Christmas, Fourth of July, Back to School, etc). A gift-wrapping service will be provided and gift certificates will be sold.

Services

Based on [Company Name]’s clothing store business plan, we will differentiate ourselves through our product offerings that include onesies, bodysuits, tops, bottoms, sleepwear, swimwear, accessories, shoes, sweaters, jeans, dresses, and outerwear.

Customer Focus

[Company Name] has created a retail clothing store business plan that will primarily serve the residents who live within a 10-mile radius of our store. The demographics of these customers include the 27,827 residents, 1,750 workers who are not residents, a median age of 34, and an average income of $54,700. Additionally, 49.6% of our target demographic is in management or holds a professional occupation.

Management Team

[Company Name] is led by [Founder’s Name] who has been in the retail clothing business for 20 years and has since created the clothing store business plan for [Company Name]. Though [Founder] has never run a retail store himself, he was assistant manager at another clothing store previously and has gained the necessary, in-depth knowledge of the retail clothing business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.) to launch his clothing store business plan.

Success Factors

[Company Name] is uniquely qualified to succeed in launching its business plan for clothing stores because there are currently no high-end children’s clothing stores in the community. After surveying the local population, we are confident in our ability to see a successful launch as we received extremely positive feedback saying that they explicitly want to frequent our business when launched. Additionally, our location is in a high-volume area that will be convenient to passersby, our management team has a successful track record, and the children’s clothing business is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] has created a clothing store financial plan that his determined $330,000 in financing is necessary to launch the business. $165,000 will be used for store design and buildout while $165,000 will pay for marketing, salaries, and land costs until [Company Name] reaches break-even.

II.- Clothing Store Business Overview

Who is [Company Name]?

[Company Name] is a new clothing store focused on upscale children’s fashions and has created a clothing store business plan to reflect the unique value our business can offer our clients. Our products are fashionable and desired by parents who want to dress their children in the latest trends. [Company Name] will offer infant, toddler, and preschool-age children’s clothing, and featured fashions will change with the season as well as with specific holidays and events. gift-wrapping services will be provided and gift certificates will be sold.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has a history within the clothing industry, it was in [month, date] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL where he frequented an independently-owned children’s clothing store that enjoyed tremendous success. After several discussions with the owner of the store, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

After due diligence was performed it was noticed how the customer demographics and competitive situations in the Fort Lauderdale location and in [insert location here] were so similar that he was confident in the company’s successful opportunity; after surveying the local population, this theory was proven.

[Company Name]’s History

Upon returning from Fort Lauderdale and surveying the local customer base, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation], created a clothing store business plan, and organized the necessary information required for starting a clothing store business plan.

[Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the best location for the store.
Since incorporation, [Founder] has developed the company’s name, logo and website, determined the list of products to be offered, determined the necessary equipment and inventory requirements, and identified 20 potential suppliers and received preliminary interest from them.
The company website can be visited at [hyperlink].

[Company Name]’s Products/Services

Below are [Company Name]’s initial product offerings.

• Onesies
• Bodysuits
• Tops (long sleeve and short sleeve)
• Bottoms (pants, skirts, skorts, shorts)
• Sleepwear
• Swimwear
• Accessories
• Shoes
• Sweaters
• Jeans
• Dresses
• Outerwear

The store will offer free gift-wrapping service and sell gift certificates. Transactions will be completed by skilled salespeople, who will offer a high level of customer service and develop ongoing relationships with customers.

Design

[Company Name] will develop a 5,000 square foot store that includes the following:

• Main Showroom


• Storage Room


• Check-Out Counter


• Restrooms


• Stroller Locker Area

The retail location has 20 dedicated parking spots, which should suffice even in peak hours.

[Company Name] plans to be open 7 days a week, from 10 AM to 7 PM. As demand dictates, we may extend or reduce our hours.

III.- Clothing Store Industry Analysis

[Company Name] directly or indirectly competes with all children’s clothing providers nearby our store. It has been highlighted in our clothing store business plan how the competition will come from department stores, specialty children’s stores, and discount mass retail stores. The direct competition will come from companies offering high-end children’s clothing similar to [Company Name].

What you Get in Your Clothing Store Business Plan Package

Industry Statistics & Trends

According to IBISWorld’s industry report, the U.S. children’s clothing market is estimated at $10.4 billion with just over 13,000 establishments. This translates to roughly $800,000 in average revenue per establishment. The report says that key competitors in the industry include Toys ‘R’ Us, The Children’s Place, Gymboree, Tween Brands Inc., and Carter’s

Additionally, population growth is set to be strongest among children aged 5 to 9 years, women are delaying childbearing until they are older and wealthier, and infant and toddler wear will continue to claim the largest share of the market. It should also be noted that Research and Markets notes “The quixotic nature of the market, where high-end items are desired, but the same consumers shop at Target.” Research and Markets also notes “the proliferation of specialty “baby boutiques” and similar stores that cater to upscale and specialty niches. Based on these market trends we believe our clothing store financial plan should anticipate a positive launch.

IV.- Clothing Store Customer Analysis

Profile of Target Market

[Company Name] has created a business plan for a clothing store that will seek to serve the residents of [company location] and the immediately surrounding areas.
The area residents we serve are affluent and are expected to spend more on children’s clothing per capita than the national averages.

Demographics

The precise demographics of the town in which our retail location resides are as follows:

Customer Segmentation

[Company Names]’s clothing store business plan will primarily target wealthy parents who are looking to dress their children fashionably, twenty and thirty-somethings who have children, or who are purchasing gifts for friends and family members who are having children. Lastly, we will target grandparents who are seeking out high fashions for their grandchildren at [Company Name].

V.- Clothing Store Competitive Analysis

Direct & Indirect Competitors

10-mile Joey’s Clothing, Macy’s, and Gymboree are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for our clothing store business plan.
Joey’s Clothing describes its business with a “selection that can’t be beaten” and has been in business for 32 years. Joey’s offers a wide variety of children’s clothing for ages up to tweens and focuses on national and regional manufacturers that sell a wide variety of products. Joe’s offers low and medium-priced options for each type of clothing and does not sell at least 75% of the high-end products that [Company Name] plans to carry. Joey’s is also located on the outskirts of town and lacks foot traffic to its store.

Macy’s is in the mall in a neighboring town and carries a variety of children’s clothing. With national advertising and a high volume of sales overall, due to the many departments within Macy’s, Macy’s is well-known in the community as a source for children’s clothing.
However, Macy’s is not seen as a place to shop for gifts for children as the clothing within seems uninteresting and relatively low fashion. Most shoppers within the Macy’s children’s department are price-conscious mothers who shop based on sales and discounts offered. Others dislike Macy’s for the long waits at checkout within the store.

Finally, Gymboree markets itself by stating “Gymboree carries high-quality children’s clothing and accessories in sizes newborn to age 12.” Gymboree opened a location five miles away from [Company location] one year ago. Gymboree has been successful, selling fashionable clothing that is still rugged enough to allow children to play.
[Company Name] has several advantages over Gymboree including offering more clothing options, a convenient location, and gift-wrapping services offered within the store.
We expect that Gymboree will continue to thrive based on excitement about a recognizable chain among some townspeople. However, we expect that more and more customers will frequent [Company Name] based on the location and the fact that we are independently owned and operated.

What you Get in Your Clothing Store Business Plan Package

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include a focus on 5 and under, management, and relationships. Our clothing store business plan has found the 5 and under age group is the fastest-growing market segment by revenue. By focusing on younger children, we can carry a wider variety of high-end brands for these children. Additionally, our management team has several years of experience within the industry that allows our business to sell to and serve customers in a much more sophisticated manner than our competitors. Lastly, [Founder’s Name] knows all of the local leaders and newspapers, as well as clothing suppliers after living in the community for 25 years. Thanks to these advantages, it will be easy for [Company Name] to build a successful brand.

VI.- Clothing Store Marketing Plan

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] Brand

The [Company Name] has created a business plan for a clothing store that will focus on the Company’s unique value proposition within the industry. Our company will offer high-quality, fashionable clothing for children up to age 5, rotating clothing to stay current, and excellent customer service.

Promotions Strategy

[Company Name] has created a retail clothing store business plan with a target market of individuals living within a 10-mile radius of its store. The Company’s promotional strategy to reach these individuals includes direct mail, public relations, advertising, ongoing customer communications, and pre-opening events.

[Company Name] will send out direct mail pieces that will blanket neighborhoods surrounding [Company Name] has created a retail clothing store business plan with a target market of individuals living within a 10-mile radius of its store. The Company’s promotional strategy to reach these individuals includes direct mail, public relations, advertising, ongoing customer communications, and pre-opening events.

[Company Name] will send out direct mail pieces that will blanket neighborhoods surrounding its locations. These pieces will offer discounts and/or provide other inducements for people to visit the store.
We will also contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name]. Additionally, [Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.

Ongoing customer communication efforts for [Company Name] will include maintaining a website and publishing a monthly email newsletter to tell customers about new events, products, and more.
Finally, pre-opening events will be designed for local merchants and press contacts to create buzz and awareness for [Company Name].

Pricing Strategy

[Company Name] has created a clothing store financial plan that has determined pricing will be appropriate for the high quality and level of service associated with the store. Pricing will be on par with Gymboree, and higher (though better quality) than Joey’s and Macy’s. The pricing model will allow for a positive cash flow once the business is up and running.

VII.- Clothing Store Operations Plan

To execute [Company Name]’s clothing store business plan, administrative and retail functions will need to be performed. Administrative functions will include legal, marketing, bookkeeping, etc., sourcing suppliers and managing supplier relations, and hiring and training staff. Further, retail functions will require hiring for customer service and check-out, gift-wrapping, gift certificate program management, display rotation and design, and janitor personnel to keep the store clean.

What you Get in Your Clothing Store Business Plan Package

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

VIII.- Clothing Store Management Team

[Company Name]is led by [Founder’s Name] who has been in the retail clothing business for 20 years. While [Founder] has never run a retail store himself, he was assistant manager at another clothing store previously. As such [Founder] has an in-depth knowledge of the children’s clothing business including:

• Store operations and management
• Floor sales
• Display design
• Retail marketing
• Hiring and training workers
• Children’s clothing fashions and trends

[Founder] has personal relationships with salespeople at a variety of high-end children’s clothing suppliers.

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Founder] will serve as the store manager. To launch the store, we need to hire an assistant manager who will handle much of the store operations and manage the store on [Founder]’s days off, 3 check-out and floor staff, and a part-time bookkeeper who will manage accounts payable, create statements, and execute other administrative functions.

IX.- Clothing Store Financial Plan

[Company Name]’s has determined its revenues will come from the sale of children’s clothing to customers; this has been highlighted in the clothing store's financial plan.
The major costs for the company will be the cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] has determined, based on its clothing store financial plan, that funding of $330,000 to launch its store is necessary. The capital will be used for funding capital expenditures, manpower costs, marketing expenses, and working capital. $165,000 will be used for store design while $165,000 will be used to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even.

Clothing Store Financial Plan Sources And Uses Report

Key Assumptions

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

Clothing Store Financial Plan Core Inputs

Clothing Store Financial Plan Top Revenues Report

Clothing Store Financial Plan Top Expenses Report

Clothing Store Financial Plan Income Statement

Clothing Store Financial Plan Cash Flow Statement

Clothing Store Financial Plan Balance Sheet Statement