Print Art Clothing Co Business Strategies - Example

BUSINESS PLAN (Student Name) (Course No.) (Lecturer) (University) (Date) EXECUTIVE SUMMARY One of the rapidly growing industries regards the clothing industry. Several new investors have opted for this business, and this has seen a consequent rise in its spread across the global market. Despite the existing challenges especially faced by the new entrants, it has remained a vibrant investment. This paper focused on developing a business plan for a startup business seeking to venture in designing, branding and printing clothes. The proposed business intending to operate in Australia requires various resources, strategies, and procedures so as to begin its operation. The paper further detailed financial forecasts and projection of the business. Contents INTRODUCTION 4 The Business 5 MARKET FEASIBILITY 5 Size of the market 5 Growth rate of the industry 6 Market capacity 6 How customers get their products 7 Location of customers 7 How customers would get the products 8 External factors 8 TECHNICAL FEASIBILITY 9 Options for development and technology 9 Options for production 9 Options for sales and distribution 9 Resources required 10 Regulations governing the business 10 FINANCIAL FEASIBILITY 10 Projected Revenues 10 Sources of funding 11 Start Up costs required 11 Profit and Loss statement 11 HUMAN RESOURCE FEASIBILITY 11 Ownership structure 13 Manpower requirements 14 Growth strategy 14 CONCLUSION 14 References 15 Appendix I: Finance Required 18 Appendix II: P&L 19 INTRODUCTION The modern business industry has become one of the highly competitive industries in the world. There are new entrants on a daily basis and also improvements from the existing players within this industry. This has seen a rise in the competitive ability across the modern business world with many players seeking to remain viable and relevant. The Clothing and design industry has equally exemplified immense completion and growth in the past years. A lot of inventions have been seen in this market, and this has made it highly competitive (Jain & Haley 2009). Major markets such as the Australian and the Chinese markets indicate a great and significant change in the completion and innovation in these markets. The design of better and unique clothing attire is one of the ways through which players in the industry tend to gain a competitive edge and also out do others regarding gaining new market. A positive shift has also been witnessed in the recent past towards adopting unique designs which are tailor-made to meet the demands of the user (Peter & Donnelly 2011). This paper entails an individual business plan for a start-up coming called ‘Print Art Clothing Co’ which seeks to operate in the Australian clothing industry. The competition witnessed in the industry has compelled the need to come up with a design producer which simply tailor-makes the designs according to the preferences and order made by the customer. The business intends to engage in printing and designing of shirts, caps, T-shirts among any other clothing as recommended by the client. The business plan provides a blueprint upon which the business seeks to operate and also shows the various requirements for the success of the startup business in this highly competitive market. The Business The proposed business I this plan is referred to as ‘Print Art Clothing Co.’ This start-up intends to engage in designing artistic designs and printing them on clothes and caps. The proposed business seeks to capitalize on the opportunity which exists in this area within the industry. Several companies and businesses and even individuals require printed designs on their shirts, T-shirts or even their caps. A venture which can make the printing and also engage in the production of the clothes will automatically be able to occupy a central niche in the clothing industry. The proposed business, therefore, intends to engage in the printing of clothes and also designing the clothes from their prints and drawings. All these depend on the tastes and preferences fronted by the client seeking to have the printing done (Wood 2008). The business intends to operate within Canberra City, Australia which is a hub of business in the country. Canberra city is usually known for busy streets and high pollution of potential buyers, clothing industries operated in this region have been reporting positive returns, and they also enjoy a ready market for their products. Thus proposed business intends to benefit from the opportunities prevailing in his city and also the advantages accruing from inventing a complementary area in the business. MARKET FEASIBILITY Size of the market The proposed market for the business is the immediate location which is within Canberra City, Australia. This has been voted as the largest inland city in Australia with a population of about 381,488. The larger population in this city is one of the motivating factors and an opportunity for engaging in starting the business. The clothing market has been approximated to represent the existing population in the region. This is an approximation based on the fact that every person would require a cloth. However, the design of these clothes show a different estimation, and this is rated as about 65% of the people within the immediate market and beyond. Therefore, the clothing market in the immediate city within which the business is proposed to operate and beyond is approximated at a tune of 65% of the total population (Fui-Hoon Nah et al. 2001). Currently, there are many designers in the clothing industry. Some of them design and do not engage in printing while others engage in both. Growth rate of the industry Studies approximate the clothing design and printing market in Australia to grow by 5% in the next five years. The estimated has been made depending on the prevailing trends of growth and the consistency of many players penetrating in the market. As the demand increase, the investors also tend to increase so as to benefit from the expansion in the market (Sahlman 1997). The growth rate in the last four years has been registered to be 4.2%, and this is expected to rise. The number of users and clients seeking to have branded and design wares continent to rise on a daily basis. For example, large corporate advocate for the use of printed and branded clothes among their staff. Therefore, such a contract is usually given to a best designer and printing agency which can meet the preferences made by the customer. Besides, the number of companies and businesses engaging in this kind of business has also exponentially risen in the few years. This has created an overall growth in this market (Mason & Stark 2004). Market capacity Despite the rise in the number of new entrants and even the expansion of the existing payers in this market, the Australia clothing and design market has not reached its full potential or capacity. This is explained by the existing opportunities which are still available in the market and are sought by investors coming into the market on a daily basis. Besides, there have been great shift and movement by several investors seeking to benefit from the opportunities within the Australian market. This confirms that there are existing opportunities in this market and it has not reached its full potentials. How customers get their products Presently, there are alternative designers and producers both in the local and in the international market. For example, most of the branding, designing and printing agencies in this industry come from the Chinese market and they supply the local Australian industries with their products or even engage in the direct selling of the products (Honig & Karlsson 2004). The present customers of these products are therefore relying on the existing alternative designers who offer the designs. There are however few in the market. Many of those existing are provide the branding alone, printing alone or even engaging in designing alone. Very few have engaged in a combination of all these three activities under one umbrella. For example, it’s common to see clients order blank and new clothes from one company make the design in another company and after that engage in the printing of these clothes ion a different company. The proposed venture intends to offer all these three related services under one umbrella body, and this will highly have a great impact on the existing market (Gumpert 2003). Location of customers The customers are located both in the local and in the foreign market. There are many people in Australia who prefer the branded and the designed products according to their tastes and preferences. The local market has a higher projection regarding the clients who have a desire for the products. Besides, there is a large host of potential buyers in the foreign countries. He proposed business will, therefore, engaging in meeting the demands of the local market and also spreading its services to the foreign markets so as to benefit from an expanded market (Plan 2006). How customers would get the products Direct selling is one of the ways of marketing selling the products. The proposed businesses intend to engage in the direct selling of the products, and it approximates about 60% of the total buyers to directly buy from the premise. Others will meet the products through other retailers or other sales networks. However, the projection of having about 50 direct customers after every two weeks for the first three months will imply those who can buy directly from the premise of the business (Abrams 2003). External factors Several external factors influence the proposal and the initiative to engage in the businesses. Some of the factors pose as threats while others posed as opportunities. The prevailing government laws and regulation are motivating and supportive of the local industries. The Australian law on local ventures provides that the economy will rely entirely on promoting local businesses and allow importation when there is a need. Besides, the laws support the clothing industries in the country. The industry dynamics have also affected the clothing industry for the past few years (Dollinger 2008). There are seasons and changes in regards to the patterns of demands, fashion, and style as well as the preferences in the market. The economic index also plays a vital role in explaining the availability and the rate of expenditure made in the market by the consumers. Presently, the clothing industry is a free market with little or no barriers to entry. There are many players participating in this kind of business and all of them have been permitted by the prevailing legal infrastructure in the country. However, most of the small business may be limited by the intensive financial require t so as to start up such a business. For example, the proposed business seeks to start from a small scale and after that advance to a larger scale. The essence is the aspect of resource requirements which is usually prohibitive in the case of small businesses. TECHNICAL FEASIBILITY Options for development and technology The proposed business intends to rely on the self-design so as to produce the various products for customers. The will be a simple technology which only prints the designs on the clothes. Others, the designing, and the branding will be done by experts within the company who employ the use of various computer software to aid in their activities. The business intends to make all the resources as self-generated expect the need to get the plain clothes from the manufacturing companies since this is not part of the small business (Stutely 2012). Options for production The products will be produced through license offered by the Australian authority. There are specific designs and branding intended on the final products, and all these require clearance by way of licensing then activities of the business. After receiving the license, the business intends to commence its activities within its proposed rented premise in the city. Options for sales and distribution The sales and distribution intended for the proposed company are a majorly direct sale. During the initial stages of production, there is need to convince the clients on the products, need to own the designs and also need to personally gauge the response of the clients. Therefore, the business intends to rely on n the use of sales representatives so as to distribute the products across the market. One of the future goals is to have a combined approach of selling the products, and this is to include the use of sales networks among others (Pinson 2008). Resources required The business requires adequate skills on designing, branding, and printing of clothing materials. It requires financial resources for a start-up and also requires a consistent supply of manufactured clothes which are then printed for sale. The suppliers of other raw materials such as printing colors will also be required. All these are at the reach and are available for the business. Regulations governing the business Some of the laws regulating this business include the Environment liability law which requires conformity to environmental conservation and protection. The industry standards require that the products met the quality and price requirements and which prevail in the market. Lastly, the intellectual property law requires that the business do not violate the agent right of any other producer in its designs, artistic work and brandings (Chen et al. 2009). FINANCIAL FEASIBILITY Projected Revenues Product/Service Unit Price Volume Revenue Branding of a shirt, T-shirt or cap 100A$ 20 2000A$ Printing a cap 10A$ 100 1000A$ Printing a shirt 10A$ 100 1000A$ TOTAL 20 220 4400A$ The above projection represents what the business needs to be making on a monthly basis especially for the first three months. The amounts charged per unit represent the prevailing amounts in the market. Actually, these are slightly reduced so as to incorporate a market penetration strategy under which the business intends to operate. The first three months are also regarded as the penetration months and are always characterized by lower returns. These costs therefore represent what the business projects despite the starting condition of operation in the highly competitive market (Russell et al. 2008). Sources of funding The business intends to receive funding from personal saving, loan and grants from friends. The personal savings and the grants will occupy more than 60% of the intended start u costs. The deficit will be financed by a loan which is intended to be spread fro one year for purposes of flexible payments and settlement (Zimmerer et al. 2005). The process of starting p this business had an opportunity cost involved. The opportunity cost was starting an An African Design clothing agency which majorly specializes in importing African designs and also producing African designs targeting specific market deferments. This has to be forgone so as to save the idea and costs involved to the start up business. Start Up costs required It’s illustrated in Appendix 1 Profit and Loss statement It’s illustrated in Appendix II HUMAN RESOURCE FEASIBILITY The following are the various technical as well as management skills and experience required for the business Owners and their roles in the business Job Title Expected Experience Skills necessary Marketing Officer [2-3 years] Academic Qualification in Marketing Production Officer [2-3 years] Academic qualification in branding, design and printing of clothes IT Coordinator [2-3 years] Academic qualification in IT IS Sales Head [2-3 years] Academic qualification in Sales and Marketing Quality Control Officer [1 year] Academic Qualification in Quality Management Assurance on printing, design and branding of clothes Sales and Marketing Team members [1 year] Academic Qualification in Sales and marketing Ownership structure The following is the proposed ownership structure of the business The Sales/marketing officer is in charge of finding out potential market opportunities and advancing policies to meet such opportunities and address market threats. The production officer is in charge of ensuring proper production of printed and branded product. The IT coordinates help in linking the business with the outside market through IT infrastructure. The Quality Control Head is in charge of ensuring the quality of every product before they leave the business premise. Lastly, the production team includes the staff and him workers who are involved in direct designing, printing, and branding of the clothing items in the business (Der Foo et al. 2005). Manpower requirements The required manpower will be sourced from through advertisement of the job opportunity. Af6ter the interview, the right and the qualified will be picked. The manpower will be compensated for the kind of work performed in the business, every duty has a unique and specific task, and therefore the compensation will include all the requirements of every job. The employees will be motivated especially through promotional strategy and an increase of salary depending on their output and their contribution towards improvement in the business. Besides, the business intends to engage ion ongoing training procedure for the employees as a means of making them more productive and more aggressive in their work. Growth strategy The company intends to expand its activities and also broaden its services and production volumes. The quality is expected to grow steadily with improvements made on the employees through training. Besides, the business intends to incorporate other levels and in the structure after it has grown such as the office of the internal auditor. CONCLUSION This paper centered on developing a business plan for a proposed small business in Australia seeking to engage in branding, printing, and designing of clothing items, The plan include all the requirements intended for the business, financial projections and the employee requirements which is suitable for the job. The business plan also entails the various period within which the projects are expected to be achieved in the business. References Abrams, R. M. (2003). The successful business plan: secrets & strategies. The Planning Shop. Chen, X. P., Yao, X., & Kotha, S. (2009). Entrepreneur passion and preparedness in business plan presentations: a persuasion analysis of venture capitalists' funding decisions. Academy of Management journal, 52(1), 199-214. Der Foo, M., Wong, P. K., & Ong, A. (2005). Do others think you have a viable business idea? Team diversity and judges' evaluation of ideas in a business plan competition. Journal of Business Venturing, 20(3), 385-402. 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