FashionDrape Business Plan and Cash Flow Analysis

This assignment provides a detailed business plan for FashionDrape, including its industry, location, target customers, and business model. The company selects a revenue-based business model and outlines its sources of revenue. Additionally, it emphasizes compliance with equality and diversity laws by treating all employees equally, regardless of age, gender, or sex. Furthermore, the assignment includes an analysis of FashionDrape's assets, liabilities, expenses, and gains, as well as potential cash flow problems and solutions.

CONTEMPORARY
THEMES

TABLE OF CONTENTS
INTRODUCTION..............................................................................................................1
TASK 1.............................................................................................................................1
Summarising the business plan...................................................................................1
TASK 2.............................................................................................................................2
Market research of FashionDrape................................................................................2
TASK 3.............................................................................................................................3
Justification to resolve the ethical dilemma faced bye FashionDrape..........................3
TASK 4.............................................................................................................................4
Compliance with Equality and diversity law while selecting applicants.......................4
Rights of new employees hired on the basis of Zero- hour contract ...........................4
TASK 5.............................................................................................................................5
Assets , liabilities, expense and gains for Fashion Drape...........................................5
Methods to solve cash flow problems.........................................................................5
CONCLUSION................................................................................................................. 6
REFERENCES..............................................................................................................................7

INTRODUCTION
This case study will provide understanding of the business plan for the clothing sector
and will also include the market research for identifying the trend and demands of the products
and services. Moreover, it will include about the ethical dilemma faced by the business.
Furthermore, this study will contain about the assets, liabilities, gains and expenses for the
business.
TASK 1
Summarising the business plan
Industry
The small business which is going to start will be involved in retail industry which
provide will provide different fashion styles for the customers according to their requirement and
the trends of industry are focused on providing customized clothing to satisfy demands of
buyers. Retail industry is growing day by day and have more scope in this industry to grow the
business.
Location
The business will be situated in the shopping centre in London, UK as there is an
increase in the demands for the different styles of clothing in that city. The location is selected
after the research for the demands for this business at that place. The location of the small
business will be the place of attraction in London which will help the business to attract more
customers.
Target customers
The target customers for the business will be the people from all age group as the
clothing available at the store will be for all people which will consist of women, men, kids, etc.
The business will mainly focus on women as there is high demand for the women clothing at
that place. The business will provide customized clothing for every person where everyone can
place order according to their requirement.
Business model
The business model which will adopted by the small firm will be revenue model which is
a framework for generating revenue which helps in identifying which source of revenue is
profitable for the company. This model will assist the organisation in identifying product or
service value, revenue generation techniques, revenue sources and target consumer to which
the product is offered.
Name of business
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The business will provide the customers with different styles of clothing according to
their requirement as it will provide customized clothing and normal clothing to fulfil demands of
buyers. The name selected for the business is “ FashionDrape” which will provide customers
with clothing according to their demands.
Visual identity
The logo of FashionDrape is designed in attractive way to gain customers attraction
towards the brand. The store for promoting the business will use the celebrity face to increase
the sale of the store. The logo of the store will consist of name of the brand and, contact number
of the seller, etc. The interior and exterior of store will be designed in unique way to gain the
attraction of customers.
Value of the business
The business will be based on some values which will regulated activities of
FashionDrape The value created for the store includes equal treatment of the employees or
staff of the store to motivate them to work at the store. Also, the values will include fair treatment
for all the staff members without discrimination on the basis of age, gender, religion etc. which is
required for maintaining equality and diversity. Also, the business will include some social
concerns like donation, charity etc. from the part of profit to contribute for the growth of society.
TASK 2
Market research of FashionDrape
Primary research by FashionDrape
The primary research which will be conducted by the store which will be focused on
survey that will consist of question relating to trend of the fashion which will help the business to
identify about the demand for customers and their taste and preferences to customized products
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according to their requirement (Brace, 2018). The primary research will provide understanding
to the owner about the products and services which are offered by them will be profitable or not.
This research will be conducted by the FashionDrape in order to identify the taste and
preferences of the potential customers.
Secondary research by FashionDrape
The secondary research will be conducted by the FashionDrape will include information
about the trend and demands of the customers by various sources that consist of books,
journals, articles, etc. to know about taste and preference of customers (Sarstedt and Mooi,
2019). The research will help to identify response of buyers on the basis of past information
gathered from different sources like fashion magazine, articles, and media updates. This will
help the organisation in predicting future demand of the products and services offered by the
business. For example, tesco is using this research method for identifying information about
their customers demand using various websites and social media sites.
Quantitative research
This research includes use of mathematical and statistical tools to obtain the information
regarding the demands of the products and services offered by the store. The information will
be gathered through the samples of the population of interest (Martin and et.al., 2017). This
research provides numerical data to measure the trend existing in market. The data is collected
through online questionnaire, telephone interviews, etc. It will include the open and close ended
questionnaire to answer the questions provided by the organisation. This type of research is
used by fashion Drape in order to identify the demands on the basis of statistical and
mathematical figures.
Qualitative research
This research is conducted to identify the thought and opinion of the group of people
about the trend prevailing in the market. This research includes thoughts and opinions of the
people which are not measured in numerical form(Hinsley Verissimo and Roberts, 2015).
FashionDrape by conducting this research will identify the profitability and changes in demand
by identifying the opinions of different people. This research will include identifying the thoughts
and opinions of the people about the products and services offered by firm. This will help
fashion drape in identifying the wants of the customers to satisfy their customers by providing
them products according to their requirement.
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TASK 3
Justification to resolve the ethical dilemma faced by FashionDrape
The FashionDrape is having an opportunity to promote its products and services through
a popular website at a discounted rate but the that company is facing various accusation
relating to treating its employees badly and also there are reports on the discrimination,
harassment etc (Barnham, 2015). The ethical dilemma faced by FashionDrape is that to accept
the opportunity or not but after the evaluation the decision was made that the store will not
accept the opportunity as it will hamper the brand image of the store and will demotivate its
employees.
It was identified that if FashionDrape accepts the opportunity then it will be against its
business values which were created by the business that provide understanding about the equal
treatment of the staff members without discrimination on the basis of age, gender, religion etc.
Also, to resolve this dilemma the store has identified various information about that website and
identified that promotion through this website will affect the brand image of fashion drape.
The accusation faced by that website that it is treating its employees badly due to which
the staff members of the FashionDrape are worried as it may affect them in future if the store
accepts that opportunity of being promoted through that website.
This accusation on website will affect the business brand image and will reduce the
demand of the products and services offered by Fashiondrape which will affect the profitability
and market share of the store. The opportunity will be rejected by the fashion drape to protect
interests and motivation to the staff members to work effectively and efficiently to increase the
probability of the store. For example, BBC faced the same dilemma which affected its brand
image to the great extent.
TASK 4
Compliance with Equality and diversity law while selecting applicants
The FashionDrape is focused on selecting the two staff members on Zero – hour
contract which is relating to selecting applicant without any obligation to work for particular
hours. The applicant while selection must be treated equally and provided with equal
opportunity to show their skills and knowledge . Also, when selecting the applicant for particular
job role must be selected without discrimination on the basis of age, gender, Religion, etc. The
staff members selected must be based on highest score in the interview. According to the
equality law all the people must be treated equally without any discrimination to provide them
equal chance to show their ability and knowledge which is required by the organisation to grow
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the business and achieve success (Equality and diversity in recruitment and selection, 2016).
The fashion drape for complying with the equality and diversity law will ensure that the staff
members is selected on the basis of their ability and knowledge and must not be discriminated
on the basis of age , gender, religion etc. The employees selected will be on zero- hour contract
in which the there will be no obligation on the employees to work for the specific hours and in
specific conditions. For example, Fashion drape have to provide equal wages to the workers
according to their job role and not on the basis of age, gender, religion etc.
Rights of new employees hired on the basis of Zero- hour contract
The following rights will be provided to the staff members hired on the basis of zero – hour
contract:
 The employees hired on the basis of Zero- hour contract will be provided statutory sick
pay for the leave due to the unwellness or any other cause of disease.
 The staff members will have the rights to request for flexible working hours.
 The staff members will have the rights to protect against the unfair dismissal (Zero-hour
contract rights, 2017).
 The zero – hour contract workers working at Fashion Drape will be provide with
Statutory maternity and paternity leave and will be paid for those leaves.
 The staff members will be provided with time off for the emergencies which involve the
dependents of the employees.
 The zero – hour workers will be provided with protection against unlawful deductions
from their wages.
 Also, they will be provided with statutory minimum rest breaks to provide them
relaxation.
TASK 5
Assets, liabilities, expense and gains for Fashion Drape
Assets and liabilities for the fashion drape will consist of the following:
Assets
 Stock
 building
 cash and cash equivalent
 furniture
 Trail room
 Sewing machine
Liabilities
 Accounts payable
 Loans
 creditors
 capital
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Assets for FashionDrape are the items of balance sheet which are easily convertible into
cash and these items are required to run the operating activities of the firm. It helps the
business in identifying its position in the market. Liabilities of FashionDrape are those items
which are required by the organisation to pay them future point of time and are the responsibility
of the business. Gains are the incomes for the FashionDrape and helps in identifying the
profitability of the firm and it includes sales revenue, etc.
Expenses are the cost which are incurred by the business to provide those products and
services. It includes rent, salary, interest paid, advertising expenses, etc. These gains and
expense are considered in fashion Drape to identify the profitability of the business by providing
their various products and services to customers.
Methods to solve cash flow problems
The below table shows the budget for the fashion Drape for the amount of £20000
Particulars January
Cash inflows
Opening cash inflow 20000
Sales revenue 10000
Other income 3000
Total cash inflows 33000
Cash outflows
rent paid 2500
salary paid 3000
advertising expenses 2000
Administration expenses 4000
Other expenses 3000
Total cash outflows 11500
Cash deficit / surplus or closing cash balance 21500
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There are various problems which can affect the cash flow of the FashionDrape and to
solve those problems the enterprise has to use various methods to avoid those situations which
increase cash outflow and reduce cash inflow (Cash Flow Problems and Solutions, 2018). The
business can reduce cash flow problems by reducing their expenses by making cash budget
which helps in identifying the future requirement of the cash and the expenses are estimated
through which the expenses can be reduced. Also, the cash flow problems can be solved by
keeping track of the payments made by the firm. Furthermore, it can be avoided by making the
track of stock of the clothes to reduce the problems which leads to cash deficit.
CONCLUSION
From the above case study, it has been concluded about the business plan for clothing
business which has included about the industry, location, target customers and business model.
Revenue business model is selected by the business to identify the different sources of
revenue. It has also provided with name of the business as “FashionDrape” which will be
started in London, UK. Moreover, this case study has provided with compliance of equality and
diversity law by FashionDrape that has provided that all the employees of Zero-hour contract
are treated equally without any diversification on the basis of age, gender, etc. Thus, the study
outlined about assets, liabilities, expenses and gain of FashionDrape.
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REFERENCES
Books and Journals
Barnham, C., 2015. Quantitative and qualitative research: Perceptual foundations. International
Journal of Market Research. 57(6). pp.837-854.
Brace, I., 2018. Questionnaire design: How to plan, structure and write survey material for
effective market research. Kogan Page Publishers.
Hinsley, A., Verissimo, D. and Roberts, D.L., 2015. Heterogeneity in consumer preferences for
orchids in international trade and the potential for the use of market research methods to
study demand for wildlife. Biological Conservation. 190. pp.80-86.
Martin, G. and et.al.,2017. Lithium market research–global supply, future demand and price
development. Energy Storage Materials. 6. pp.171-179.
Sarstedt, M. and Mooi, E., 2019. Cluster analysis. In A concise guide to market research (pp.
301-354). Springer, Berlin, Heidelberg.
ONLINE
Cash Flow Problems and Solutions. 2018. [Online]. Available through
:<https://www.comcapfactoring.com/blog/cash-flow-problems-and-solutions/>
Equality and diversity in recruitment and selection. 2016. [Online]. Available through
<http://www.bristol.ac.uk/hr/resourcing/additionalguidance/equality/>.Zero-hour
contract rights. 2017. [Online]. Available through <http://www.acas.org.uk/index.aspx?
articleid=4468>.
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