University of Agriculture Business Plan: Handmade Accessories Startup

This business plan, submitted by students from the University of Agriculture, Faisalabad, outlines the strategy for launching Embragues Fashion Icon, an online retail store specializing in handmade accessories like clutches and jewelry. The plan includes an executive summary, company overview, competitive advantages, market analysis, SWOT analysis, sales projections, and operational and financial plans. The business aims to cater to the upper and middle classes in Pakistan, leveraging online platforms to sell unique, handcrafted products with personalized packaging. The plan details the competitive landscape, emphasizing the uniqueness of the products, low production costs, and customization options. It also includes sales forecasts for the first three years, feasibility analysis, and future expansion plans. The operational plan covers production capacity, labor, quality assurance, and distribution strategies. The financial projections detail investment costs, balance sheets, income statements, and cash flow statements, along with a financial analysis. The implementation plan outlines the steps for launching and growing the business, highlighting the potential for sustainability and growth in the online marketplace.

Business Plan
UNIVERSITY OF AGRICULTURE FAISALABAD
BUSINESS PLAN
Submitted To:
Dr. Abdul Ghafoor
Submitted By:
Arfa Jawaid 2013-ag-4909
Srhrish Maqbool 2019-ag-1499
Anum Manzoor 2019-ag-1496
Course Title:
BM-753 Innovation and Entrepreneurship
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Business Plan
Handmade Accessories
Contents
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Business Plan
Executive Summary.........................................................................................................................3
1. About Company:...............................................................................................................................4
1.1 Our Competitive Advantages...................................................................................................4
2. Market Opportunity and Justification:......................................................................................5
2. Our Solution............................................................................................................................5
3. Industry Analysis:...........................................................................................................................6
3.1 Key Derivers:...........................................................................................................................6
3.2 Challenges:..............................................................................................................................6
4. Market Segmentation:...................................................................................................................6
5. Competitors Analysis:....................................................................................................................7
6. SWOT Analysis:..............................................................................................................................7
7. Sales Projection:..............................................................................................................................8
8. Feasibility of Business:...................................................................................................................9
8.1 Future plans...........................................................................................................................10
9. Operational Plan:..........................................................................................................................10
9.1 Production Capacity...............................................................................................................10
9.2 Labor......................................................................................................................................10
9.3 Quality Assurance..................................................................................................................10
9.4 Location and facilities............................................................................................................11
9.5 Improvements:.......................................................................................................................11
9.6 Distribution and customer service:.........................................................................................11
10. Organizational Plan:................................................................................................................11
10.1 Business structure:.................................................................................................................11
10.2 Management..........................................................................................................................11
10.3 Personal plan:.........................................................................................................................12
10.4 Organizational Setup:.............................................................................................................13
10.5 Code of ethics:.......................................................................................................................13
10.6 Incentive schemes and benefits..............................................................................................13
11. Financial Projection:................................................................................................................14
11.1 Cost of Investment.................................................................................................................14
11.2 Projected Balance Sheet.........................................................................................................14
11.3 Projected Income statement...................................................................................................15
11.4 Cash Flow Statement:............................................................................................................16
11.5 Financial Analysis..................................................................................................................16
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Business Plan
12. Implementation Plan:...............................................................................................................17
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Business Plan
Executive Summary
Embragues fashion icon is a business idea to create a space in fashion industry of Pakistan by
offering high quality handmade accessories to communicate sense of differentiation in fashion
trends. In order to be successful, we must differentiate ouselves from competitors in order to
appeal to customers in the online marketplace. To do this, we will utilize its practice of
personalizing its product packaging which it currently offers in-store customers. Current
competitors do not currently provide any personalization of packaging. Customers will have the
privilege to personalize messages on or inside of product packaging, request specific color based
themes, or tailor packaging for special occasions or events. The benefits that the customers desire
from the product is not simply the features the product offers but also includes superior quality.
Our products are sold from throughout the country and maintain a reputation for superior quality.
The features displayed accurately and fully describes on the quality of the services that are
offered. This has made it easier to be read in addition to enabling the customers to identify where
they can obtain the products. While our business maintains a web site, it is hosting an
ecommerce platform for online sale of our business has a competitive advantage that we provide
online sales.
The financial projection of this business plane indicates slow rate of growth has but also provides
useful insights which indicate sustainability in business. One key factor for this slowing growth
rate is the shift in the marketplace to purchasing handmade clutches and jewelry online. The
handmade clutches and jewelry marketplace is healthy and shows a continued growth trajectory
over the next five years. Our business is in a position to capitalize on this online marketplace by
leveraging existing technologies, industry best practices, and an aggressive marketing and sales
campaign to ramp up the business growth projections for the foreseeable future.
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Business Plan
1. About Company:
Embragues Fashion Icon is a newly established online retail store that is aimed to most stylish,
innovative and affordable handmade accessories including clutches and jewelry items for
females of Pakistan. This store will cater to upper and middle class customers who are eager to
have a changed and most stylish look. Company business is based on general partnership of three
members. The main office will be located in Faisalabad where all the related operation will be
performed. After establishment and successful growth of business, we look to expand our
business activities towards physical outlets by offering expanded collection of product to
customers.
1.1 Our Competitive Advantages
I UNIQUENESS OF OUR PRODUCT:
We made our clutches and jewelry with hand made
 Dough flowers
 Pearls and stone work with metal wire
II SPECIAL FEATURES:
 Easy to carry due to very light weight
 Accessories will be usable for both formal and informal functions
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Business Plan
 Our product also have customized option to follow customer demands and
requirements.
III COST OF PRODUCTION
 low cost of productions that allows to design different product categories
2. Market Opportunity and Justification:
Fashion trends of customers are changing rapidly due to the several social, cultural and economic
factors. Hence demand for innovative crafts is increasing day by day as the the consumers
desires are revolutionizing. Fashion trends of females have a dynamic pattern in Pakistan. At
present era, demand of handmade luxury items is enhanced in all over the world. Handmade
clutches and jewelry items are more attractive and potable as compare to machine-made
accessories because these products are developed with pure and natural material without using
any harmful chemical. The present business plan is designed to fill the gap in fashion market of
pakistan by offering more attractive and reliable fashion accessories to females. In this hurry and
busy life, females wish to wear and hold fashion accessories which are light weighted and make
them feel more attractive and looking different from others. Hence, there is a great opportunity to
offer different clutches and jewelry items in market. The development of these items requires
dough, stones, fabric and mainly expertise and skills of workers to design innovative items.
Trend of fashion industry revealed that demand of such items among females is increased as
females are showing their great interest in different crafted products.
1. Problem
 High demand of hand made products especially online
 Alternative expensive handmade accessories
 Physical market don’t really serves this demand but they serve online
2. Our Solution
 we made proper website to sell our product
 Provide our handmade clutches on online, FB pages, instagram, Snapchat
 Promote more our product with promotion mix elements
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Business Plan
 We are capturing maximum market
 Increase the purchasing intention for handmade product
 Middle class ,upper class and alit class is also captured by providing different product
3. Industry Analysis
Handmade accessories business is gaining attraction in the emerging market due changing
lifestyle trends in terms of fashion dynamics. This industry has shown a robust growth at global
level as a well renowned company “Etsy” reported a remarkable success by achieving 35.4%
revenue growth at international market The key vendors of different handicrafts include Asian
countries among which Pakistan has a dominant status. Pakistan has a great potential to develop
its strong position as a regional hub of handmade accessories and jewelry manufacturing.
Developing this potential, will open the new door of employment, entrepreneurship, income
generation and export revenues that will contribute to strengthen the economic position of
country.
3.1 Key Derivers:
 Availability of skilled labor in form of women community
 Vocational institutions for training of various small business ventures
 Easy access to quality raw material
 High value added sector
3.2 Challenges:
 Lack of technical and technological improvements
 Nonprofessional business practices
 Lack of investment in product development, branding and marketing interventions
 Un explored export market
4. Market Segmentation
Customers have different needs and wants on the basis of their values and preferences. The
preferences of customers are diversified by following different trends in fashion industry.
Therefore, our basic aims to treat all consumers as individuals. Each segment contains groups of
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Business Plan
customers who are likely to respond in a particular way to marketing activities. Market
segmentation involves three elements.
These are:
a. Segmentation, in which the market is divided into segments:
 Gender: women and young girls
 Age: 15-35
 Class : all type of classes are included
b. Targeting, we target the women and girls of upper class and middle class by offering
products in form of clutches and jewelry items with creative style.
c. Positioning, we develop the mindset of our customers by offering them value based
products with premium quality.
5. Competitors Analysis:
5.1 Major Competitors:
 Mojari
 Ayesha’s-A handmade clutch boutique
 T-crafts
 Handmade accessories by Pari
5.2 Comparison with other products.
Our product is so unique and our initial market is Faisalabad and its surroundings so the dough
work we introduce not currently in FSD so that’s why our product is different from others
5.3 Brand value of the competing products.
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Business Plan
Obviously the brand value of other competing products have their worth because of offering
handmade things we also doing handmade work but slightly in different way so that’s why our
product have its own worth when introduce in the market
5.4 Pricing benefits to the customers.
Our pricing plan is feasible as we will charge reasonable for our products and this price is
affordable as compare to other brands whose price is very high and only allow the upper class of
society to purchase products.
5.5 Idea about the target market for our product.
Our target market is female community belonging to the middle and upper class after analyses of
the market
6. SWOT Analysis
a) Strengths
 Uniqueness of product
 Special features
 Low cost of production
 Expert and creative management
 Strong linkage with suppliers
b) Weaknesses
Currently our weakness is that our product is very new in market.
 Brand is new and at developing stage
 Owners have a new experience to start this online business
 Small setup and capacity to higher small number of employees
 Limited price flexibility
c) Opportunity
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Business Plan
 Increased demand and trends for digital marketing.
 Product has positive image among consumers
 we made proper website to sell our product
 developing the products by utilizing expertise of owners
 Increased demand and purchasing intention for handmade product
d) Threat
 Availability of substitute products
 Uncertainty of customers’ behavior towards handmade accessories
 Strong image of machine made accessories with renowned brands
7. Sales Projection:
Our business is considering a move to create and provide an online platform from which to sell
its existing product line. For the first three years, we have a plan to sale the products in Pakistan
by using online platform. On the basis of increased revenue and growth trends, sales plan could
be changed relatively.
Sales Forecast
Year 1
Items No. of Units Sales Price Revenue
Standard:
Clutches 150 700 105000
Jewelry 80 1000 80000
Customized:
Clutches 30 700 21000
Jewelry 50 1000 50000
Total Revenue 256000
Year 2
Items No. of Units Sales Price Revenue
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Business Plan
Standard:
Clutches 180 800 144000
Jewelry 100 1200 120000
Customized:
Clutches 30 800 24000
Jewelry 60 1200 72000
Total Revenue 360000
Year 3
Items No. of Units Sales Price Revenue
Standard:
Clutches 200 1000 200000
Jewelry 130 1500 195000
Customized:
Clutches 40 1000 40000
Jewelry 70 1500 105000
Total Revenue 540000
8. Feasibility of Business:
By exploring the market and identifying trends of business, we decided to start a business of
handmade accessories which will be spread and developed by using digital marketing in
Pakistan. Our financial and social aspects provide us a potential to start this business venture.
Our initial management team is based on three experts who will provide coordination to take this
endeavor. We have complete technical ability and strong contacts with suppliers of quality raw
material. There will be equal share of investment by all shareholders. According to our market
assessment this business venture may show a slow growth but has a potential of sustainability to
create its space in the market. Our product will be affordable and provide high value to
customers through its premium quality.
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