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Retail Clothes Store Business Plan Proposal Sample

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Executive Summary

Cheap Store is a retail store aiming to provide cheap bargains on clothes in the retail market. The merchandise will range from ladies clothes and kids, focusing mainly on the provision of unique clothing that matches the consumers’ needs. The shop is owned by a sole proprietor, and it is funded by private funding and, in this situation, the sole proprietor’s savings. A bank loan can be used where the company’s funding is insufficient, and this will help to ensure that the company’s operations are strengthened. A successful marketing strategy would aid in the company’s development as well as increased visibility of the store’s merchandise.

Retail  Clothes Store Business Plan Proposal Sample

Product

The business would market women’s and children’s apparel as well as accessories. The emphasis on these items is attributed to a rise in retail demand, implying that the store’s market reception would boost. The study of consumer income patterns aids in concentrating on a single target segment. This necessitates a stronger emphasis on the consumer base, who the business finds to be sensitive to the goods sold. The goods are of a good standard, which improves consumer loyalty. There is a need to analyze the perception of the products in the market as it is through this, there is the determination of the need to improve on the performance of the products.

Customers

The store’s target customers are ladies and children, and the products offered are geared towards attracting low-income earners. The store provides convenience for the shoppers and ensures that there is self-sufficiency in the customers’ products. In order to enhance the shopping experience, an overview of the population in the target market is important, as is an emphasis on the company’s development. The store’s reputation is based on promoting creativity and assisting consumers in getting the products they need at any given moment. Many of the company’s clients are on fixed wages, meaning that the store would tend to the desires of those who cannot afford to shop in high-end establishments.

What Drives Us

The organization is motivated by a premium on low-cost products, which aids in the company’s increased profitability. Per year, the earnings are analyzed, and it is through this that the company’s ties are continually improved. The focus on the company’s needs helps increase the productivity of the employees and the needs of the community. There is dedication towards the improvement of the environment, which helps in the analysis of the need to ensure that the consumers’ satisfaction is a priority in the store.

Company Description

Mission and Vision Statements

The mission of the company is the provision of a variety of products at affordable prices. The dedication to the consumers’ needs is essential in giving the best services that they expect. The employees are respectful to the customers, which helps ensure that the business environment is conducive to the achievement of the needs of the consumers.

The company’s vision is to become one of the best bargain stores that are focused on the provision of sustainability towards the needs of the consumers. There is an analysis of the requirements to make a difference in the market as the products offered are of quality. There is the consideration of the community’s economy. The analysis of the community’s needs ensures that there is a focus on the growth of the community and the enhancement of success.

At the start-up, there are 2.2 main members. (This portion would be expanded in Unit 7 to provide medium and long-term staffing arrangements for all team members, including line staff.)

Write the proposal, especially the segment on how to present each team member and explain their history and responsibilities. You’ll begin with the leaders and managers, then move on to other employees as required.

  • Accountant- The accountant will focus on preparing the company’s financial statements, helping in the improvement of the company’s efficiency.
  • Sales representative- The sales representative is in charge of the company’s sales, which involves making sure that the customer experience in their shopping improves.
  • Manager- The manager will ensure that there is an order in the company’s operations is focusing on the increase in profitability.
  • Cleaner- Responsible for cleaning of the premises, ensuring that the store is presentable at all times.

Use this spreadsheet to show the planning

Leaders/managers (unit 1)  When needed (number of months/years after opening)       Outside Services Needed
Key Functions
 Manager 1 month   Ensure that the operations of the store are in order,
 Sales Representative  Immediately  To help in driving of sales ensuring that the clients get the goods that they require.
 Accountant  Immediately
 Add line staff (Unit 7)
 Cleaner  Immediately  Ensure that the premise is clean throughout.

Legal Structure

The store is a sole proprietorship, which means that the owner has a liability to the business. They are responsible for any kind of losses and profits that the company makes.  The company’s obligation in terms of the payment of taxes helps in the analysis of the structure of the business and the licenses and the permits that the company needs.

Market Research

Industry (from SBA, Business Guides by Industry – https://www.sba.gov/managing-business/business-guides-industry, and Bureau of Labor Statistics –  https://www.bls.gov/iag/tgs/iag51.htm, )

  • Industry Description
  • Resources Used

Customers (from SBA site fill in worksheet, then use text for spreadsheets and follow-up explanations)

Add SBA part here

Then:

Fill in spreadsheet using this example from the text:

Housewife: Married Couple:
Age: 35–65 Age: 35–55
Income: Fixed Income: Medium to high
Sex: Female Sex: Male or Female
Family: Children living at home Family: 0 to 2 children
Geographic: Suburban Geographic: Suburban
Occupation: Housewife Occupation: Varies
Attitude: Security minded Attitude: Security minded, energy conscious
Older Couple: Elderly:
Age: 55–75 Age: 70+
Income: High or fixed Income: Fixed
Sex: Male or Female Sex: Male or Female
Family: Empty nest Family: Empty nest
Geographic: Suburban Geographic: Suburban
Occupation: White-collar or retired Occupation: Retired
Attitude: Security minded, energy conscious Attitude: Security minded, energy conscious

Beginning with the heading “Customers,” explain who you’re approaching and where they’re based. Fill in the blanks with the following information:

Information on the Market You’re Trying to Reach – Reduce the scale of the potential group to anything achievable. Often companies make the error of attempting to sell to a large number of potential audiences. The following facts regarding your competition should be researched and included:

What are the critical needs of your potential customers? Distinguishing qualities – What are the critical needs of your potential customers? Is it true that such requirements are being met? What are the group’s demographics, and where are they located? Are there any seasonal or cyclical buying patterns that could affect your company?

Scale of the main target market – What details would you provide on your market’s annual sales in your sector, in addition to its size? What is the market growth outlook for this group? See our market analysis guide for more detail, including tips and free government tools that can assist you in developing a market profile.

What percentage of the competition would you capture? – What proportion of the market share and amount of consumers do you hope to gain in a certain geographic area? Explain how you arrived at your decision.

Competitors (from SBA site fill in worksheet, then use text for spreadsheets and follow-up explanation)

Then:

Fill in spreadsheet using this example from the text:

Estimated Market Share Competition 60% Home Improvements Inc. 30%
Product Line 4 5
Quality 4 5
Technology 4 5
Advertising 2 5
Sales Force 3 5
Distribution 3 4
Price 4 4
Installation 4 5
Ease of Use 4 5
Appearance 3 5
Design 4 5
Useful Life 4 4
Responsiveness 3 5
Availability 1 5
Technical Expertise 4 5
Repair Service 3 5
Efficiency 3 5
Guarantee/Warranty 5 5
On Time Capability 4 5
Industry Reputation 3 5

Using the details from the spreadsheet, write an explanation of your results using the following guidelines:

  • Share of the market
  • Weaknesses and abilities
  • To your rivals, how relevant is your target market?
  • Are there any obstacles in the way when you reach the market?
  • When is the right moment for you to reach the market?
  • Are there any possible opponents that aren’t specifically dealing with you?
  • What industry hurdles remain (e.g., emerging technologies, high acquisition costs, a scarcity of skilled personnel)?

Competitive Advantage

Read: Sustainable competitive advantage or temporary competitive advantage: Improving understanding of an important strategy construct.

Regulation (use SBA site to fill in blanks, and use https://www.sba.gov/managing-business/business-law-regulations as a resource)

Product/Service Line

 

  • Product or Service
  • Pricing Structure
  • Product/Service Life Cycle
  • Intellectual Property Rights
  • Research & Development

Marketing and Sales

Plan for Development

  • A development plan, as well as a consumer expansion strategy. This strategy for growing your business could include an internal system such as how to increase your human resources, and acquisition strategy such as buying another company, a franchise strategy for branching out, a horizontal strategy where you will provide the same type of products to different users, or a vertical strategy where you would continue to offer the same products but instead of course.
  • Distribution channels plan Original equipment manufacturers (OEMs), internal sales forces, dealers, and stores are also options for delivery outlets.
  • A communication plan. How can you communicate with your customers? Promotions, ads, public relations, personal selling, and printed publications such as brochures, catalogues, and flyers are usually the most effective strategies.

It would help if you described your sales plan once you’ve established a detailed selling strategy. This section discusses how you plan to market your items.

Two key components should be used in the overall sales strategy:

  • A roadmap for a sales team. Do you want to utilize internal or outside sales agents if you have a sales force? How many salespeople are you planning to hire on the sales team? What kind of recruiting tactics would you employ? How are you going to train the sales team? What is the salespeople’s remuneration?
  • The promotional efforts. It is essential to break down the sales plan into practices while developing it. You must, for example, define the opportunities. When you’ve compiled a collection of candidates, you’ll need to prioritize them, choosing the leads with the best chance of being customers first. Next, figure out how many sales calls you’ll create in a certain amount of time. Then you’ll need to find out how many deals calls you’ll need to make each delivery, how much revenue you’ll make per sale, and how much money you’ll make per seller.

Communication Strategy 

  • Online strategy (from the text)
  • Calculating Return on Investment (ROI) from a website
  • Talk about how you’ll make sure the promotion and selling strategies are legal.

Financial Projections

Profit & Loss

Year 1 Year 2 Year 3
Sales
Costs/Goods Sold
GROSS PROFIT

 

OPERATING EXPENSES

Salary (Office & Overhead)
Payroll (taxes, etc.)
Outside Services
Supplies (Office & Operation)
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Accounting & Legal
Rent
Telephone
Utilities
Insurance
Taxes (Real Estate, etc.)
Interest
Depreciation
Other Expenses
TOTAL EXPENSES

 

NET PROFIT BEFORE TAXES
Income Taxes

NET PROFIT AFTER TAX
Owner Draw/Dividends
ADJUSTED TO RETAINED

Cash Flow Complete section 6.3 of your business plan outline

Pre-Startup

EST.

Year 1 Year 2 Year 3 Total Item

EST.

Cash on Hand
CASH RECEIPTS
Cash Sales
Collections from CR Accounts
Loan/Cash Injection
TOTAL CASH RECEIPTS
TOTAL CASH AVAILABLE

CASH PAID OUT
Purchases
Gross Wages
Outside Services
Supplies
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Accounting & Legal
Rent
Telephone
Utilities
Insurance
Taxes (Real Estate, etc.)
Interest
Other Expenses
SUBTOTAL
Loan Principal Payment
Capital Purchase
Other Startup Costs
Reserve and/or Escrow
Others Withdrawal
TOTAL CASH PAID OUT
CASH POSITION

Balance Sheet

Assets Start Date: End Date:

CURRENT ASSETS
Cash in Bank
Accounts Receivable
Inventory
Prepaid Expenses
Other Current Assets
TOTAL CURRENT ASSETS
 


FIXED ASSETS

Machinery & Equipment
Furniture & Fixtures
Leaseholder Improvements
Land & Buildings
Other Fixed Assets
TOTAL FIXED ASSETS

(net of depreciation)

 


OTHER ASSETS

Intangibles
Deposits
Other
TOTAL OTHER ASSETS
TOTAL ASSETS

 

Liabilities & Equity
CURRENT LIABILITIES
Accounts Payable
Interest Payable
Taxes Payable
Notes, Short Term (due in 12 months)
Current Part, Long-Term Debt
TOTAL CURRENT LIABILITIES
 


LONG TERM DEBT

Bank Loans Payable
Notes Payable to Stockholders
LESS: Short-Term Portion
Other Long-Term Debt
TOTAL LONG-TERM DEBT
TOTAL LIABILITIES
 

OWNER’S EQUITY

Invested Capital
Retained Earnings
TOTAL OWNERS EQUITY
 

 

TOTAL LIABILITIES & EQUITY Customers

Break-Even Analysis

DIRECT COSTS Fixed Costs ($) Variable Costs (%)
Cost of Goods Sold
Inventory
Raw Materials
Direct Labor
INDIRECT COSTS
Salaries
Supplies
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Rent
Telephone
Utilities
Insurance
Taxes
Interest
Depreciation
Other Costs
Total Fixed Costs
Total Variable Costs
BREAK-EVEN SALES LEVEL:

Financial Assumptions

  • Assumptions for Profit and Loss Projections
  • Assumptions for Cash Flow Analysis
  • Assumptions for Balance Sheet
  • Assumptions for Break-Even Analysis

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