Individual Business Plan Report - Trendy Closet

This report provides a detailed analysis of the business plan of Trendy Closet, a startup that deals in a wide variety of products such as clothes, accessories, footwear, fragrances, and bags. It includes the mission, vision, objectives, and product description of the company, along with market/industry analysis, STP model, USP, competitor analysis, operations plan, and risk and contingency plans.

Individual Business
Plan Report

INTRODUCTION
Business plan contains all the goals and targets of business which they have to achieve in
future. It includes various aspects of business such as marketing objectives, operations, financial
projections, industry standings and business targets. This document plays important role for
internal and external audience of the company (Briones Macías, 2019). It attract financial
institutions and investors so that they can invest in the company for their further growth and
expansion. It provides roadmap and guide to the employees in order to initiate their projects for
the achievement of goals in particular direction. Employees can easily work on their short term
and long term goals with the assistance of business plan. This report will contain all the business
detail of a business along with the description of its location. The overall industry analysis is
carried out and product description is also mentioned in this report. This will also include USP of
business and their competitor analysis. Risk and contingency plans, finance and funding plans,
sales and marketing strategy are also described in this report.
MAIN BODY
Business details
Mission: Trendy closet wants to deliver products according to the current market trends
in order to satisfy the needs of their targeted customers.
Vision: To include innovation and new designs in their products along with maintaining
proper balance in the environment by adopting corporate social responsibilities.
Objectives: The main objectives of Trendy closet are:
 To focus on the preferences and demands of their audience.
 To use advanced technology for the upgradation of products and services.
Trendy closet deals in wide variety of products such as clothes, accessories, footwear,
fragrances and bags. It is a startup which wants to cover large area of market by catering the
needs and wants of customers in appropriate manner (Garon, 2018). They involve different
sections in their stores which provides convenience to their customers during shopping. They are
located in London, United Kingdom and established their store in the centre of city. The
selection of appropriate location plays major role in attracting customers as it should be easily
assessable. The main aim of Trendy closet is to include new trends and arrivals in their offerings

so that they can develop the interest of their customers. Online websites and applications are also
used by them so that they can increase reachability throughout the UK in appropriate manner.
Market/industry analysis
The analysis of overall industry is important for an organisation so that they can evaluate
future opportunities and threats from their respective market. The comprehensive understanding
of marketing is highly essential for marketers so that they can formulate plans and procedures
according to that. Trendy closet uses pestle analysis in order to analyse the external environment
of their retail industry. The pestle analysis is mentioned below:
Political factors: Rules and regulations driven or formulated by government of a country
is included in political factors. Free trade disputes, corporate taxation, fiscal policy initiatives and
other regulations of government affect the operations of business. The government of London
formulate policies which support the growth of retail sector. It provides various positive factors
to Trendy closet in order to run their business in profitable manner.
Economic factors: Financial nature of an industry should be analysed by company so
that they can set their prices of products according to that. It includes inflation, interest rates,
exchange rates, employment rates, etc (Gimeno Vidal, 2018). Trendy closet focus on the income
and wage rate of their targeted customers so that they can attract them. They also ensure that
their employees get all the essential benefits during their employment so that they can maintain
appropriate productivity. They provide wages and salaries to their employees according to the
policies of government related to employment wages.
Social factors: Factors such as lifestyle trends, working conditions, demographic
considerations and consumer beliefs classified under social factors. Trendy closet focus on the
demands and requirements of their targeted audience so that they can offer products which are
highly demanded in the market. They interact with customers on regular basis in order to
understand their buying behaviour so that they can contribute efforts in maintaining their prop[er
lifestyle.
Technological factors: Technological advancements are highly essential for businesses
as it helps in improvement of their services and products. Automation, technology infrastructure,
research and development, cyber security, etc. are adopted by Trendy closet. London includes
number of opportunities related to technology which help Trendy closet in expanding their
business.

Environmental factors: The changes related to environment affect the operations and
growth of an organisation. Climate change impact, extreme weather events, carbon footprint,
transition and physical risk are included in environmental factors. Trendy closet involves
recycling and reusing for their waste material so that they can maintain positive balance towards
environment.
Legal factors: It is important for organisations to focus on all the legal regulations such
as industry regulation, protection of intellectual property, permits and licenses and many more.
Trendy closet ensures that they fulfil all the legal requirements which are mandatory for retail
organisation. It help them in commencing smooth operations without any challenges and
problems.
Segmentation targeting and positioning (STP) model
This is a modern marketing approach which assist organisations in analysing the best
appropriate segments for them (Heo, Kang and Kim, 2018). Segmenting and targeting are
required in order to utilise resources in appropriate manner so that organisation can offer
products in appropriate manner. Stp can be discussed as follows:
Segmentation: It is the first step of this model which segments the society into different
sections so that organisation can understand whom to target. Trendy closet segment society on
the basis of geographical, behavioural, demographical, psycho-graphical segments. They have
segmented upper class and upper middle-class class of London in order to offer products and
services. It can be done on the basis of buying pattern of their customers so that segmentation
can be done in appropriate manner.
Targeting: This is the next step which suggest organisation have to target audience after
segmentation so that needs and wants can be fulfilled in appropriate manner. Trendy closet
targets most profitable segment of the society which includes customers of all age group. All the
men, women and children are targeted in order to provide trendy items. Their customers are
brand conscious who willingly pay higher prices for quality products.
Positioning: This is the last step which ensures organisation offer products which are
unique and different from competitors. Trendy closet focus on maintaining attractiveness in their
products so that customers can engage themselves in the products of an organisation. Positioning
of products can be done on various basis for gaining competitive edge such as experimental

positioning, functional positioning and symbolic positioning. These three factors should be taken
into consideration in order to create best positioning of a brand.
Product/Service description
Trendy closet is a fast fashion company which majorly focus on the trendy products.
They offer various fashionable clothing items along with accessories, bags, footwear and
fragrance (Kabrelyan, 2020). All the segments includes extensive research and development
before entering to the market so that it can serve the demands of customers. Trendy closet uses
marketing mix which increase the sale of their products and services in targeted market. The 4
P's of marketing mix are discussed below:
Product: This can be termed and referred as item which is offered by organisation in
order to satisfy the requirements of their targeted audience. Trendy closet deals in various
commodities such as footwear, bags, clothes and many more. They ensures the quality of
products should be appropriate so that customers can attracted towards organisation.
Price: The amount or value which customers pay against the items, commodities and
services which they avail from organisation. It is necessary for businesses to focus on the
establishment of appropriate prices as it is responsible for revenue generation. Trendy closet
maintains the quality and standard of their products which helps them in making their customers
willing to pay demanded prices. They also evaluate the prices of their competitors, location of
customers, terms of sale and other pricing related factors.
Place: The placement of product plays essential role in attracting customers towards
products and services (Khan, 2020). It is important to adopt appropriate distribution channels so
that organisation maintain effective reachability. Trendy closet established their store at the
locations which are easily reachable by the potential and targeted audience. They also uses
online applications to sell their products which are highly convenient for customers.
Promotion: This can be referred as marketing communication process which assist
organisation in increasing their brand awareness in targeted market. All the essential benefits and
features of products and goods can be easily conveyed to the audience with the help of
promotional strategies. Trendy closet uses personal selling and social media platforms such as
Facebook, Instagram and YouTube in order to promote their products. Advertisings are highly
effective in maintaining the brand image in the market.

USP and competitor analysis
Organisation have to use factors which help them in differentiating them for their
competitors in context to products and services. Trendy closet uses raw material which is high in
quality and standard so that they can offer finished products which are unique and attractive.
They focus on offering first-ever products to their targeted audience so that it can become their
unique selling proposition (Lapasanda an et.al., 2020). The features and quality of their products
are very different from their market competitors which assist in getting various competitive
advantages. In order to carry out competitor analysis, Trendy closet uses porter's five forces
model. The weakness and strengths of overall industry can be identified with the help of this
model. It can be described as follows:
Competition in the industry: The total number of competitors in respective industry cut
the power of organisation. Increment in the number of competitors in retail segment becomes
challenge for Trendy closet. This possess high power as Trendy closet is startup which have to
establish their brand image in market. In order to overcome this power they have to maintain
loyal customer base by offering higher quality valuable products.
Potential of new entrants: It can be analyse that there are large number of organisations
are entering to the market which have moderate power to cut down profitability of business. It
increased competition becomes challenge for new startup to cover the large market in
appropriate manner. Trendy closet can capture market easily as there USP can help them in
increasing their sale and profitability.
Power of suppliers: Suppliers play important role in maintaining the profitability of an
organisation because they provide raw material and equipments (Putra, 2018). Suppliers of
Trendy closet possess low power as they can switch to other suppliers if they offer material and
other input in higher prices. It is important to maintain healthy relationship with the suppliers so
that they can contribute positive factors in the growth and profitability of an organisation.
Power of customers: It suggests that customers have power to bargain with an
organisation regarding the adjustment of prices. In context to Trendy closet customers have low
bargaining power as they offer prices which justify the quality of their products. The unique
selling proposition of Trendy closet is one of the reasons which help them in maintaining loyal
customer base. It dependency of customers on organisation help them in achieving their targets
which results in higher profitability.

Threat of substitutes: The number of substitutes in the market which organisation
already selling to their customers possess high power. It can cut down the profitability of an
organisation to great extent as customers can switch to other brands and organisation in order to
get products and services. Trendy closet can add attractive and unique features in their products
which help them in differentiating from their competitors. It further help them in maintaining
trustworthy customer base which is positive factor contributing in enhancement of profits.
Operations Plan
This can be referred as a process of planning objectives and strategic goals so that overall
workforce can commence operations for their achievement (Ribeiro, 2018). All the regular
activities and tasks are included in the operational plans which as a guide for employees. Trendy
closet formulated their operational plan which is mentioned below:
Goals and objectives: Trendy closet have to cater the requirements of their customers by
involving unique ideas in their products. They have to include various corporate social
responsibilities by recycling and reusing waste material so that they can maintain positive
environment. Sustainable operations are their priority so that they can establish their positive
brand image.
SMART objectives
These are the guidance which sett better objectives so that organisation can achieve
positive results. Trendy closet have established their SMART objectives which are as follows:
Specific: Trendy closet have to increase their customer base by offering demanded
products. They have targeted upper middle-class and upper class of society who can afford
expensive products and items. They have to increase their profitability to 20% within 1 year.
Measurable: Organisation have successfully covered half of the targeted market which
can be measured by analysing the rate of revenue generation. Within 6 months, Trendy closet
have increased their profitability which is great achievement for them.
Achievable: Trendy closet focus on maintaining healthy relations with their customers
and other stakeholders who help them in achievement of their objectives. They have achieved
their half of the target within 6 months which shows their success in achievement prescribed
objectives in appropriate manner.
Relevant: This objective is highly relevant in the achievement of final goals and targets
of an organisation. Trendy closet can establish their brand image in market by focusing on their

objective. It will provide benefits to their customers, clients and suppliers in best possible
manner.
Time bound: Trendy closet have set their target that they have to achieve their objective
within 1 year. They have formulated plans and procedures for accomplishment of their goals and
targets.
Risk and Contingency plans
Risk is the constant factor which is involved in each and every business. Businesses have
to focus on the areas which involve risk so that they can formulate strategies in order to
overcome them (Roche, 2018). In the initial phases of Trendy closet, managers have prepared
contingency plans so that they can minimise risk factors. It will help them in enhancing their
revenue generation rate in best possible manner. Business contingency plans prevent
organisations from unexpected events so that they can commence smooth operations. It includes
all the backup plans which can save resources of an organisation like cost, time and efforts.
Evaluation of risk and development of plans against them proves highly beneficial for Trendy
closet which is mentioned below:
Consider major risk: This step focus on the evaluation of the risk factor which can
affect the operations of an organisation. Managers of Trendy closet involve research of the
overall market so that they can understand actual risk factors. Identification of problems assist
organisations in taking necessary actions. There are number of risks which can affect the
business environment such as unskilled staff, competition and inventory management. These risk
should be focused on prior basis so that further operations can be carried out in proper manner.
Prioritize risk: Out of all the risks, organisations have to select some which the risks
which affect profitability to great extent (Rotone and et.al. 2020). Actions and plans should be
formulated so that management can easily overcome from the risk and problems. Trendy closet
have to analyse business environment so that they can develop actions according to that.
Development of contingency plan: It is the final step which includes actual
development of contingency plans. Trendy closet can effectively eliminate and minimise risk
with the help of plans which are formulated. In this manner organisation can achieve their targets
and goals in appropriate manner.

Chances of
occurrence
Risk Impact Actions
1 Inventory management Lack of proper
management in
context to inventory,
organisation have to
face in the process of
productions and
offerings of products
(Shaikh, 2020). It
directly affect the
growth and
development of overall
organisation.
Organisation can use
best suitable supply
chain so that they do
not face challenges for
managing their
inventory. Trendy
closet can effectively
reach to their end users
which can maximise
their profitability in
effective manner.
2 Competition Increase of
competition rate lower
down the chances of
getting attractive
opportunities for an
organisation. It
becomes difficult for
Trendy closet to
capture the large
market share in
appropriate manner.
Organisations have to
develop plans and
policies which are best
appropriate to
minimise the challenge
(Suharno, 2018).
Trendy clothes involve
unique benefits in their
products which can
increase their sales and
profitability.
3 Unskilled staff The overall
productivity of an
organisation can b e
affected if employees
do not focus on the
Trendy closet can
provide training and
development sessions
to their employees so
that they can inherit

work. It increase the
chances of mistakes
and errors in the
operations.
required skills which
support their
operations.
Sales and marketing strategy
Sales: It is one of the most important functions of an organisation which ensures higher
sale of an organisation. The revenue generation and profitability of an organisation is based on
the rate of sales. Trendy closet focus on their targeted audience and influence them so that they
can buy products and services from them (Tjen, 2018). They offer products for men, women and
children of every age group which covers majority of the society. This helps organisation in
increasing their number of customers which is positive factor. Trendy closet uses their physical
stores and online stores for offering products. This will increase the rate of sales as customers
can select best appropriate medium according to them.
Marketing: This the action taken by organisations for selling and promoting their
products and services in the targeted market. It is important to carry out research for an
organisation so that they can use effective marketing technique for selling of their products.
Trendy closet allow their customers top get trial of their products so that they can select best
suitable product for them. It helps in influencing the mind of customers in order to avail services
and products. Social media platforms are also used by them which increase the brand awareness
in the targeted market. Different online platforms increase reachability and accessibility of an
organisation which results in achievement of goals and targets.
Finance and funding plans
Funding plays important role in commencing operations in business as it fulfils all the
financial requirements (Yahaya, 2020). Organisations have to analyse the actual requirements of
the financial resources so that they can arrange funds in appropriate manner. All the cost should
be calculated so that business can prepare plans and operations according to that. A financial
statement of Trendy closet is as follows:
Start-up expenses GBP (£)
Initial deposit £0.00
Marketing £11,350.00

Leasehold improvement £20,000.00
Inventory analyst £1,800.00
Insurance £1,008.00
Professional fees £1,050.00
General start-up cost £6,900.00
Rent for Mo. Of improvements £3,000.00
Total £45,108.00
The sources of funds which Trendy closet have used for establishing their business are:
Bank loan: Businesses can easily take loans from banks so that they can set up their
business. They have to pay fixed amount to banks as interest which is easy method for sourcing
funds.
Investors: These are the individuals who can invest in the business if they have any
interest into particular business plans. They get profits and returns in the form of dividend which
company gives according to their profitability.
Friends and family: During the set up business, owners can lend money from their
relatives and friends. It is highly flexible way of getting funds without any documentation and
interest.
Management team
Organisations have to focus on managing their teams so that they can maintain their
productivity. It is important to hire candidates who possess skills and talents according to the
requirements of the business operations. Trendy closet formulate proper regulations and plans for
selecting candidates and involves different rounds of interviews. In this manner they can develop
effective teams which can handle critical situation in appropriate manner. It is important to
manage teams so that employees can discuss and communicate with each other in proper
manner. Training and development sessions should involve relevant learnings so that employees
can understand how to carry out operations. Managers should analyse all the day to day activities
of their employees so that they can identify mistakes and errors from the operations. Queries and

doubts of employees should be resolved by managers so that they can maintain prop[er accuracy
in the operations. It results in achievement of positive outcomes which is beneficial for overall
organisation. Tasks and activities should be divided among employees according to their specific
eligibility so that targets can be achieved. Proper chain of command should be maintained in an
organisation which promotes peace and harmony and reduce chances of conflicts.
Employees Number of employees Working hours
Sales executives 10 9 hours a day
Billing executives 5 9 hours a day
Supporting Staff 2 5 hours a day
Management Team including
supervisors
5 9 hours a day
Marketing executives 2 9 hours a day
HR 1 9 hours a day

CONCLUSION
From the above report it can be concluded that organisations have to develop business
plans during initial stages so that they carry out required operations. It includes all the necessary
actions to be taken in future so that collective and individuals goals can be achieved. Business
startups get support from business plans which assist in offering their products and services.
Organisations should follow appropriate plans and procedures so that they can minimise errors
and mistakes. In order to identify risk and opportunities businesses have to analyse their internal
and external market. This report discussed about business details and different factors affecting
business. Competitors analysis and other aspects of business is discussed in this report.

REFERENCES:
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