Fashion (Clothing) Business Plan

Executive Summary

In elementary school, we were taught that the three basic needs of every human being are food, shelter and clothing. And indeed, these are things that every normal human being must have whether they like it or not! No one likes to run around naked. You may be able to do that on the beach but I can bet my last penny that a normal person with all screws tightly knotted would definitely want to wear clothes around town- to business meetings, on a shopping spree or wherever. In Nigeria of over 170 million people, with a huge youthful population base a clothing brand business line is an industry still yet untapped. 

This fashion designing business plan, is a candid disclosure of the Etimate Couture Fashion House business proposal - our intent is to set realistic business expectations, open doors as to manifold opportunities that the fashion industries are witnessing in Nigeria, ensure we dig out the nitty gritty facts about what some of the big names in the industry are doing today to create a serious marketing niche that make them a brand, open wide some hidden fashion industry markets that only few are tapping  and eliminate any questions about the profitability of this business venture. 

Entrepreneurs have a tendency to paint the Fashion designing industry business plan with a very optimistic brush, highlighting strengths and camouflaging the risks. We, as business owners, have a vested stake and financial commitment in the success of this Fashion Design. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to validate our business and financial models, focusing on realistic projections. We have accomplished this as follows:  

1. Our financial model is rooted in industry facts, not optimism. We have based costs on our vast industry and practical experience with similar ventures, validation against big fashion making industry cost averages, and analysis against local Nigeria market averages. We have taken a collective look at all figures to make solid business estimates. 

2. Our business concept was derived from detailed Market Analyses. Instead of building a business around a preconceived concept, we analyzed the market findings and built a concept around our consumers. In other words, our business is built to service an unmet consumer 'want'.  

3. A buffered financial plan that ensures adequate capitalization. A contingency buffer is included in the start-up cost to ensure the business is not under- financed, as well as giving the business adequate funding to sustain it in the first six months of start-up. Our industry experience confirms a longer ramp-up stage for over other retail/manufacturing businesses. A common mistake for new entrepreneurs, but fully addressed in this business plan.   

4. A solid Risk Mitigation Plan. We have evaluated traditional and non-traditional risks associated with Fashion design failure and accounted for them directly in the business plan. Instead of dismissing the risks, we have identified valid mitigation strategies for each.  

5. Deep Management Experience. Our management team has 10 years combined experience, involved marketing, and deep involvement with the Lagos city Fashion industry market.  

Table of Contents

1. Executive Summary

   1. Mission

   2. Keys to Success

   3. Objectives

2. Company Summary

   1. The Management

   2. Start-up Summary

3. Product Description

   1. Competitive Comparison

4. Market Analysis

   1. Market Segmentation

   2. Industry Analysis

   3. Distribution Strategy

5. Competition and Buying Pattern

   1. Competitive Edge

6. Strategy and Implementation Summary

   1. Sales Strategy

7. Management Summary

   1. Organisational Structure

   2. Management Team 

   3. Personnel Plan

8. Financial Projection

   1. Risk Assessment

   2. Contingency Plans

9. Financial Plan

   1. Important Assumptions

   2. Break-even Analysis

   3. Table:Break-even Analysis 

   4. Projected Profit and Loss

      1. Table: Profit and Loss

      2. Table: Profit and Loss first year

      3. Table: Profit and Loss second year

      4. Table:Profit and Loss third year

   5. Projected Cash flow

      1. Table: Cash flow

      2. Table: Cash flow year two

      3. Table: Cash flow year three

   6. Projected Balance Sheet

      1. Table: Balance Sheet year one

      2. Table: Balance Sheet year two

      3. Table: Balance Sheet year three

      4. Table: Fixed Operating Expenses

Frequently Asked Questions About Fashion Business

How to Write a Fashion Business Plan

See the above table of content for what should be in your Fashion business plan. 

How to Start a Fashion Business: For Beginners?

First, ensure you acquire very good fashion design skills. Next, create your Fashion business plan. Follow fashion trends. Build your brand. Design and develop your own clothing line. Have reliable sources for quality fabrics. Setup or outsource production/manufacturing for your clothes. 

How to Make My Fashion Business Successful?

To succeed with your fashion business here are some tips; 

• Create a distinct brand identity

• Opt for quality service to your clients everytime, this helps to build your brand reputation

• Have a plan for sales and marketing

• Design your production process to ensure you meet up with customer expectations

• Ensure good people relations and communication