Business Idea: E Tailoring Services

This presentation introduces a business idea of offering E tailoring services to men and women. It includes details about the services provided, the target market, revenue projections, and profitability analysis. The initial investment required for the business idea is €50,000.

BUSINESS IDEA

INTRODUCTION
■ A business idea refers to providing a new product or service by converting idea into a business. It
is necessary to evaluate idea on basis of needs of people.
■ The idea might be related to new product development or service. Furthermore, return on
investment and profit analysis is to be done.
■ This provide insight on how much sales is generated within a specific time period. Also, whether
business idea is investable or not and how much funding is required. The initial investment of
business idea is €50,000.
■ The presentation will describe a business idea and what type of product or service is been offered.
Also, it includes some stats are included in it as well. Moreover, it is explained why idea is
investable and what investment is to be used.

Outline of product or service
■ Here, a new business FabDesign is been started where E tailoring services will be offered to people.
The business will offer all types of stitching services to people according to their needs. It will
include men and women.
■ For men stitching services are suits, blazer, formals, etc. and for women it will be designer suits,
western wear, etc. Alongside, dress material and accessories will also be offered as services to
people.
■ Moreover, designs of stitching for both men and women is included in it as well. In this the service
include online taking order and delivery of clothes.
■ For this an app will be developed where customer will have to enter their personal details and
requirements.
■ A preferred date and time is selected for representative (designer) to visit customer place. Here, a
designer booklet and dress material will be carried. The, after taking measurement and selecting
design, the details will be uploaded on app.
■ Then, within 7-10 days stitched cloths will be delivered to customer.

Cont..
■ Then, after feedback of customer is taken and if they require any modification or changes in
fittings of cloths then they have to follow similar process.
■ But here, they require to select modification option in App. So, this is overall service idea that is
executed. It is completely online based service.
■ At initial level, business will have 10 tailors and 10 designers. Also, short term goal is to generate
revenue of € 1 million within 1 year. However, in next 3 years FabDesign aims of create a
customer base of around 2500. The expected growth rate is to be 5% rise every year.

Statistical data
Rise in SME’s in UK

Cont..
Revenue by SME’s
Share of business in UK by
size

Why idea is investable
Business plan summary
■ It is analysed that the business idea is a unique and distinct one from others. In this E tailoring
services are offered to men and women.
■ As FabDesign target all people and provide basic services to them. This will enable in attracting
more customers and generating huge revenue.
■ However, customers will access services easily. So, at initial level customer can be satisfied and
their needs are fulfilled. It will lead to providing high return on investment. therefore, by doing
one time investment high profits can be generated.
■ There will be rise in sales. Customers will be retained easily.

Cont..
■ Return on investment
Particulars January February March April May June July August September October November December
Cash inflows
Opening cash inflow 200 300 400 500 300 700 800 900 1000 750 1100 1200
Sales revenue 1000 1500 2000 2500 3000 4000 5000 5500 6500 7500 9000 9500
Other income 500 1000 1300 1500 1200 1100 1000 1300 1400 1500 2000 2500
Total cash inflows 1700 2800 3700 4500 4500 5800 6800 7700 8900 9750 12100 13200
Cash outflows
Material 200 200 200 200 200 200 200 200 200 200 200 200
Labour 300 300 300 300 300 300 300 300 300 300 300 300
Other expenses 150 200 300 400 500 500 600 700 800 1000 1200 1300
Total cash outflows 650 700 800 900 1000 1000 1100 1200 1300 1500 1700 1800
Cash deficit / surplus or closing
cash balance 1050 2100 2900 3600 3500 4800 5700 6500 7600 8250 10400 11400

What investment should be used
Start up expenses Amount
Legal € 2500
Rent (office space) € 7500
Tools and equipment’s € 5000
Salary and wages
Tailor € 7500
Designer € 9500
Tax € 4500
Other expenditures
Technological expenses € 10000
Advertising and promotion € 1500
Inventory € 2000
Total cost € 50000

Cont..
Particulars Formula 2019 2020
Profitability ratio analysis
Gross Profit 5000 6000
Net profit 4500 5000
Sales revenue 9000 10000
Earnings before interest and tax or operating
profit
Capital employed
Net income
Average total assets
GP ratio Gross profit / sales * 100 56% 60%
NP ratio Net profit / sales * 100 50% 50%

CONCLUSION
■ It is summarised that FabDesign will provide E tailoring services to people.
■ In that many other services are provided such as stitching, dress material, accessories, etc. The
services are offered to both men and women.
■ There are 10 tailors and 10 designers are employed. The return on investment is growing in each
month. The initial investment is €50000.

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