Individual Business Plan for Cool and Trendy Fashion Ltd

This business plan discusses the idea of Cool and Trendy Fashion Ltd, an online fashion company located in London, UK. It includes background research, initial investment required, income generation, costs, profit forecasting, break-even point, and key performance indicators.

Individual business plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
A business plan for Cool and Trendy Fashion Ltd......................................................................3
MAIN BODY..................................................................................................................................3
Business ideas and Background research for online fashion company:......................................3
What initial investment will be required for the Cool and trendy company:..............................5
Income Generation.......................................................................................................................5
Costs............................................................................................................................................6
Forecasting profit for first year operation....................................................................................7
Break-even point..........................................................................................................................7
Key Performance Indicator..........................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
A business plan for Cool and Trendy Fashion Ltd.
Personal business plan is referred the personal development plan. The personal business
plan relates the development of personal goals to career, family and financial development. The
business finance for the managers is managing the finance by the business organization. The
planning, controlling and directing is the duty and responsibility of financial managers. In these
report will discuss the Cool and trendy fashion Ltd. Company in online fashion industry located
at London, United Kingdom which provide e-commerce net sales specialize in fashion category,
particularly in the area of apparel. This report will illustrate the business plan idea of cool and
trendy company which deals in the online fashion as well as analysis the breakeven analysis,
cash budget of company and profit forecast in first year of operation.
MAIN BODY
Business ideas and Background research for online fashion company:
Business types: Cool & trendy fashion Ltd. Company is online fashion business who will think
forward for the fashion brand which inspired by the real life and everything is created by the
customers with global influence like popular culture, social media and street styles everything
which are gone in the today's trends. The company is e-commerce fashion industry which will
provide the footwear's, clothes and accessories like flexible bracelets (PETROVA, 2020). The
customers can purchase products easily through the website within an hour and delivering
facilities in 24/ 7 hours.
Location prefer: The cool & trendy fashion LTD id located in London, United Kingdom. The
company have opportunity to develop on the competitive market through their official websites
and online media. E-stores will help customers in order fashion products of their choice from
their house. It is integrated shopping which will provided by the cool & trendy fashion company
through their websites which assist in the shopping process as well as provide safe and
convenient payments gateways that will help customers to make payments safely and easily.
Target Market or Customers: The customers of cool & trendy are women's and men's as well
(Lang and Zhao, 2020). In the online store, the clothes and footwear will available for the men's
and women's both and flexible bracelet will available for the women's only. There will be

various types of clothes are available like silk, fabric and cotton. The footwear's variety will be
available for men's and women's are sports and formal shoes with best branded quality. The
products will be offered on buy one get one and discounts on the first shopping of any customers
(Pek and Lim, 2019).
Size of the Market: As per the research conducted, the size of the market for online fashion
products is around 65 million where around both men and women spend 60 to 70 million on
fashion products such as clothing, footwear and accessories. Flexible Bracelet is some
accessories which is largely purchased by the women in UK.
Number and location of Competitor: The higher competitor of the online fashion company in
United Kingdom those are misguided, river island, john lewis, etc. the cool & trendy company
will have high competition in the inline fashion market because the online fashion market is the
fastest growing market with new trends and all customers are shopping on the e-commerce
platform with multiple channels (Clarke and Cornelissen, 2019). The total number of competitors
which are highly involved in the online fashion sector in UK is around 8 to 10. The competitors
are either located in UK or other country such as USA, Germany, China etc.
Customer Profile: Target customer of Cool and Trendy fashion ltd is women and female that
wants to explore new cloths, footwear and accessories on a daily basis. The customers are
basically stress to have little time spend on purchasing fashion products due to tight scheduling
and professional as well as personal commitments.
Reason of choosing Cool and Trendy Fashion Ltd: The reason why target customer will
choose Cool and Trendy Fashion ltd is that it will available online so that customer able to place
order 24/7. The customer need not to arrange time for offline shopping. Cool and Trendy fashion
ltd will provide unique and on trend cloths, footwear to its both women and men customer at
reasonable price. The various discount facilities, free online delivery service on purchase of
above £200 and coupon for next purchase etc. are the services which is provided by Cool and
Trendy Fashion Ltd (Mariano, 2021). Through app the customer can assess styles and trends.
This style assessment helps the customer to develop personalised styles and enhance the
reputation of Cool and Trendy online stores.
Risk of company: The Cool & trendy company will face risk in the online business market
because nowadays various types of clothing’s stores are available on stores as well as nowadays
clothes and footwear's getting luxury because of capturing the seasons the latest trends. Inventory

management and trend in the fashion industry is the risk for the start-up business and difficult to
stand a brand position and identity for the online stores.
What initial investment will be required for the Cool and trendy company:
Raising capital for the business will be challenging and barrier to implement in the
business plan. So, first of all, company have to identify the source of fund that how much will be
required for the starting the business or grow the business in the competitive market. There are
various ways of source of fund to finance the business which are personal saving, partnership,
bank credit, and angel investors (Clarke and Cornelissen, 2019). Finance will require for the
premises, equipment’s, stock and proper maintenance of bank balance.
Premises: The land and building decide to purchase for business on the lease. The company will
commit to landlord for the rent on the agreed term which include the rates and taxes as well as
repairs and maintenance. The capital will have required for the premises is 50, 000.
Equipment’s: the equipment’s which are required for the business start-up in fashion company
which are sewing tools, tracing wheel, etc. so capital investment will require for the equipment’s
are 15000 which are used by the own capital of the company.
Staffing levels: Hiring staff are most important for the business, so company will hire 5
employees for the Cool & trendy company.
Initial bank balance: The company will maintain the initial amount in the bank balance
minimum 20000-pound fund at the end of the accounting period for running a business in
smooth way.
Stock: The stock of the clothing and footwear materials will be maintained by the company
which can be required at any time so, capital 8000 will be invested for the stock materials.
Income Generation
Cool and Trendy Fashion Ltd will provide high quality cloths, footwear and Bracelet
accessories to its customer at reasonable price so that both higher as well as middle income
group can afford it. The biggest concern of Cool and Trendy fashion ltd is to set the price of its
products in a manner to maintain the balance between the quality and price.
Pricing: The price of its product will be set by Cool and Trendy Fashion Ltd after visualising the
competitors price. After competitor price analysis, Cool and Trendy has decided to set the price

of its clothing percentage at +50% mark-up, footwear product at +75% mark-up and Flexible
Bracelet at +65% mark-up. The selling price of Clothing product is £456.10 per unit, footwear
product is £938.11 per unit and Flexible Bracelet product is £500.06 per unit. The price of
products also changes as per season change (see attached excel).
Quantities: The quantities of goods sold is also one of the factor of income generation. The
number of good sold by Cool and Trendy Ltd is depends upon the seasonality index (see attached
excel). As per the seasonality analysis, the three products of organization number of units sold
changes as per the change in season and demand of customer.
Cash or Credit Term: Generally, the cash on delivery option is provided to customer of Cool
and Trendy Fashion Ltd. But on the other side, the higher income group people are allowable to
take credit term of 30 days as the chances of losing money from that target group is low (Pereira
and et.al., 2022).
Costs
Costs are the expenses incur by company for operating its business on regular basis. The
costs are divided into fixed and variable costs.
Fixed cost: Fixed cost will incur by Cool and Trendy Fashion Ltd in its first year is
£79000 for all of its product (distributed evenly) plus total start-up cost of £73000 (Barrow,
Barrow and Brown, 2018).
Variable Cost: The variable cost incur by Cool and Trendy Fashion Ltd is material and
labour. The variable cost per unit of Clothing product is £304.06, Footwear product is £536.06
and Flexible bracelet is £303.06. The total variable cost per unit of all three products changes as
per change in season as per seasonality weight matrix (see attached excel).
Operation of business: The business will be operating from both online as well as offline
mode. The online fashion company will operate its business from premises located at London,
UK. For this they have purchase a premise of £50000.
Equipment and stock: The equipment such as computers, sewing tool, tracing wheel,
closet, dummies etc. will be stock and maintained by Cool and Trendy Fashion Ltd at cost of
£23000 in order to display the same to investors (Barrow, Barrow and Brown, 2018).

Staffing cost: The company will hire 5 employees who manage the online website and app
with the payment of £6000 per annum and one marketing manager with the annual payment of
£15000.
Forecasting profit for first year operation
Calculation = see attached excel
Comment: On the basis of profit forecasting of one year, it is identified that in the first
year, Cool and Trendy Fashion Ltd will earn profit of £4331556.59 from its all three products
sales (Lang and Liu, 2019). The Gross profit margin and net profit margin of company is 38%
and 38% respectively. This means that the company have the ability to further reduce its price in
order to gain higher market share.
Break-even point
Calculation: see attached excel.
Comment: On the basis of calculations, it is analysed that the overall break-even point of
Cool and Trendy Fashion Ltd is 323 units and the total number of units sold by company is
25775 units. This indicate the margin of safety of 25452 units. The positive margin of safety
state that currently company are operating at higher level as compared to its break-even point
(Wang and Dong, 2021). The capability of company to earn higher profitability in its UK market
is high. This also means there are fruitful profit for the Company owner.
Key Performance Indicator
In order analyse the success of Cool and Trendy Fashion Ltd, the following financial and non-
financial measures taken into account:
 The goal of the company is to achieve the customer retention rate by 15% at the end of
the next year.
 To achieve the financial goal of increment in revenue by 20% per year through online
sales of products.
 The net profit margin of the company is required to be increased by 10% next year by
managing the direct and indirect cost and reduce the same.

 The goal of company is to engage in various social media platforms such as Instagram,
Facebook, YouTube and Twitter etc. in order to promote the company products and
service and achieve huge national and international customer base (Hapsari and
Sfenrianto, 2018).

REFERENCES
Books and journals
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Clarke, J.S., Cornelissen, J.P. and Healey, M.P., 2019. Actions speak louder than words: How
figurative language and gesturing in entrepreneurial pitches influences investment
judgments. Academy of Management Journal, 62(2), pp.335-360.
Hapsari, N. T. and Sfenrianto, S., 2018. E-Commerce Business Plan for Export Import Fashion
Using Business Model Canvas. International Journal of Recent Engineering Research
and Development. 3(3). pp.14-21.
Lang, C. and Liu, C., 2019. The entrepreneurial motivations, cognitive factors, and barriers to
become a fashion entrepreneur: A direction to curriculum development for fashion
entrepreneurship education. International Journal of Fashion Design, Technology and
Education. 12(2). pp.235-246.
Lang, C., Li, M. and Zhao, L., 2020. Understanding consumers’ online fashion renting
experiences: A text-mining approach. Sustainable Production and Consumption, 21,
pp.132-144.
Liu, Z. and et.al., 2020. Discover the Digital Technology Application in Fashion Business
Models. Journal of Fiber Bioengineering and Informatics. 13(3). pp.137-150.
Mariano, J. C. E. M., 2021. The evolution of fashion luxury brands´ business model to face the
emergence of the secondhand market (Doctoral dissertation).
Pek, Y.N. and Lim, K.H., 2019, December. Identifying and Understanding Business Trends
using Topic Models with Word Embedding. In 2019 IEEE International Conference on
Big Data (Big Data) (pp. 6177-6179). IEEE.
Pereira, A. and et.al., 2022. Customer models for artificial intelligence-based decision support in
fashion online retail supply chains. Decision Support Systems, p.113795.
PETROVA, R., 2020. How to create a business: from idea to business plan. YOUNG
Wang, Z. and Dong, Z., 2021, December. Innovation & Entrepreneurship “Regenerate” A
Fashion Entrepreneur Has a Flair for Fighting Poverty. In 2021 3rd International
Conference on Economic Management and Cultural Industry (ICEMCI 2021) (pp. 1415-
1418). Atlantis Press.
SCIENTISTS, p.92.
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