Envision Western Wear Store Business Plan

This document is a business plan for Envision Western Wear Store, a new business venture in the UK. It includes an executive summary, market analysis, sales forecast, financial projections, and more. The plan aims to position Envision as a top retail store for western wear and achieve 50% profitability. Get study material and solved assignments on Desklib.

Enterprise
and
Entrepreneurship

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Executive Summary.....................................................................................................................1
The concept or business model....................................................................................................1
Entrepreneur’s and its team’s entrepreneurial competences.......................................................3
Objectives....................................................................................................................................3
The Market: PESTEL factors......................................................................................................3
Competition.................................................................................................................................4
The Product..................................................................................................................................5
Marketing business: Segmentation, Targeting & Positioning.....................................................5
Sales and Operations....................................................................................................................6
Sales forecast...............................................................................................................................7
Financial projections....................................................................................................................8
Strengths and risks of business..................................................................................................12
Closing summary.......................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneur is a person who develops a new business who bears most of risks as well as
enjoying the profitability. Moreover, it is basically undertaken as an innovator, a source of new
thoughts, products, services or methods. Moreover, business plan is considered as a written
document which states its new ventures (Ferreras-Garcia, Hernández-Lara and Serra Envision
Western wear store , SMART objectives, PESTEL factors, competition, and product. Apart from
this, sales forecast and financial projections are also discussed in this report.
MAIN BODY
Executive Summary
Envision Western wear store is a new business which provides western-items in UK. As its
name suggest entrepreneur concentrate is to facilitate western wear products, accessories,
apparels as well as expecting position themselves as top retail store into particular marketplace.
Entrepreneur aim to gain 50% profitability and would want to be a central shopping activity hub
for targeted people.
The concept or business model
Business model is stated as rationale about how entity develops, delivers and obtains
values (Hutasuhut and et. al., 2020). As entrepreneur would plan to initiate new business named
as Envision Western wear store so for this, it would develop a business model with assistance of
business canvas model. This model is discussed below in respect of Envision Western wear
store:
Key Partners
Manufacturer
Suppliers
Textile
producer
Shop centres
Key Activities
Manufacturing is
then enhanced or
minimised into
flexible
manufacturing
facilities.
Consumer
services
Trends and
Value Proposition
Reasonable clothes.
Spacious as well as
modern stores that
provides comfortable
experiences of
shopping.
Trends and
innovative items at
medium to lower
Customer
Relationships
Consumer
impulse.
International
system of
feedback to
fastly alter as
well as develop
on their existent
Customer
Segments
Targeted
marketing is
men and women
of all ages.
Highly sensitive
to latest western
trends.
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forecasting.
Sales.
price. lines of clothing. It segment its
line of product
by men, women
and kids.
Key Resources
 Investing
into latest
trends.
 Effectual
manufactur
ing
procedures
.
 Supply
chain
excellence.
 Concentrat
es upon
consumer
preference
s.
Channels
 In stores.
 Face book
 Instagram.
 Twitter
Cost Structure
 Store rent
 Manufacturing
 Materials
 Staff
 Advertisement
 Communication: Into line
with their affordable pricing.
Revenue Streams
 Retail sales
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Entrepreneur’s and its team’s entrepreneurial competences
Entrepreneur’s is an individual who has effective, innovating and creative ideas which
determines requirements of business to fill a void. It may be person of all ages. Moreover, some
of its key characteristics are innovation, imagination and creativity (Mendel, 2020)(Mgunda,
2020). The main competencies of entrepreneur of Envision Western wear store are opportunities
seekers, persistence, and commitment towards work, risk taker, information seekers and others.
Along with this, entrepreneur’s team member competencies are also essential for any business.
The skills of entrepreneur’s team members are marketing skills, effective communication skills,
influencing skills and other. All these would be helpful for entrepreneur and its team of Envision
Western wear store development effectively and efficiently.
Objectives
“To provide standard quality product and gain 50 % profitability margin in a year”.
The Market: PESTEL factors.
As clothing has always have always been a large business for United Kingdom, the western
wear and fashion sector contributes about £32 billion towards economy of country. In order to
understand the UK clothing market, entrepreneur would have conducted PESTEL analysis. It is
discussed below in respect of Envision Western wear store:
 Political factors: In UK, the clothing sector has international image. Though, current
lockdown as well as economical challenges has hit them hard. So, respective sector required
more monetary support from government. Also, the political stability in UK have affected
clothing sector affirmatively. So, this is beneficial for respective firm as UK imports around
£10 billion value of shoes, clothes etc. Economical factors: Clothing production is costly In United Kingdom. So, various retailers
manufacture its western items within countries such as Turkey, Bangladesh and others.
Gaining assistance from other international countries aids them to minimise cost of
production as well as sells items at reasonable prices. So, this would be beneficial for
Envision Western wear store to initiates their new business as entrepreneur could able to sell
their products at affordable prices to Scotland people, UK. Social factors: Various individuals within UK are great purchasers of western products. No
doubts that fast fashionable and westerns dominate its purchasing habits. Based on
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Wolstenholme (2018), above 80% of purchaser purchase clothes which were never wear. So,
this is beneficial for Envision Western wear store.
 Technological factors: As technology is becoming advance day by day across the world.
Within UK, the technology is developing (Pratap, 2020). So, it is beneficial for Envision
Western wear store as they would utilise Automation innovation, disruptive technologies,
artificial intelligence security, updated robotics and others. As with assistance of all these,
entrepreneurs would able to improve buying intelligence, Smartphone application and etc.
 Environmental factors: As per the UN (2019), the western and fashion sector is accountable
for about 10% global green house emissions. Respective sector consumes more energy in
comparison to combined consumption of global shipping sectors. So, campaigns team are
urging UK government to pressurise respective kind of firm to take more accountability as
well as contribute towards environmental sustainability. As this would help Envision
Western wear store to gain huge number of customer as it leave the positive impact of
business into their minds. Legal factors: The UK western retail sector should adhere to country’s norms and
legislation set for sector. Because of strict regulations as well as costs, various firms have
outsourced few of its operation to other countries. As this saves prices for entities, several of
clients do not like this at all. Therefore, this is beneficial for Envision Western wear store
(PESTEL analysis of UK fashion industry, 2025).
Competition
As in UK, the demands of western and fashionable items are more. So, there are various
competitors (Skrypnik, 2020). As an assumption basis, the key competitors of Envision Western
wear store would be Next PLC, ZARA, H&M, Uniqlo and many more. Some of them are
compared below in order to analysis the competitors.
Competitors International share
%
Growth trend Competitive
advantages
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H&M 1.6 It has grown
internationally into
emerging as well as
developed
marketplace.
It have higher
strengthening of
brand. Moreover, they
has partnership with
luxury designers.
Zara 1.4 It have developed its
business to Italy,
Japan, South Korea,
UK, and others.
It have sophisticated
feedback network,
lower advertisement
expenditures.
Uniqlo 0.7 It has basically
developed its
enterprises into
Taiwan, Hong Kong
and etc.
It has higher techno
innovation system as
well as lower cost
model.
The Product
Envision Western wear store would carry western wear brands as well as it ranges from
basis to trendy style of western. The entrepreneur would be buying by producers into several
style, sizes and colours to accomplish their targeted market base. The huge percentage of
merchandise would be into apparel obeyed through hats, boots, accessories, gifts and many
more. The administrative would rely upon consumer feedbacks, recommendations and sales
report to launch specific sizes, brands and styles.
Marketing business: Segmentation, Targeting & Positioning
The global western wear size was around $71, 132 million in year 2016 as well as
anticipated to reach $ 99,423 million by 2023, registering a CAGR of 4.8% during anticipation
period. Western wear is undertaken as clothing style which is origin from 19th century American
region. Jackets, boots, hats, jeans, coats and others are some kind of this style between men and
women. All these clothes categories are broadly accepted through various cultures as it provides
variety, comfort and durability (Western Wear Market Overview, 2020). The Envision Western
wear store STP analysis would be discussed below:
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Figure 1.Western Wear Market
(Source: Western Wear Market, 2020)
Particulars
Segmentation Envision Western wear store segment their market based upon western wear
end users that involves men, women and kids in United Kingdom region.
Targeting It targets the middle and upper class people of UK.
Positioning Envision Western wear store position their image through their standard
western and fashionable wear items.
Sales and Operations
Envision Western wear store for their effective sales and operations they would use the
Retail ICE POS software along with each transaction of the sales. With every buy the software
would record as well as maintain into their database the name, address and purchases that clients
made. Mainly, this particular information would be utilised with its direct mailing programmes
to concentrates upon its loyal and regular buyer’s consumers (Sukumar, Xu and Tomlins, 2020) .
In addition to this, entrepreneur would also provide a 15 days exchange or return policy for
developing faith with its clients as well as maintain loyalty and retention. Whole these would
assists in enhancing sales and smooth operations.
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Sales forecast
Sales forecast is considered as the procedures of anticipating upcoming sales. Exact sales
forecasts allows firm to develop effective decisions for the business as well as predict shorter as
well as longer term performance. Moreover, this is simple for entities to anticipate upcoming
sales according to the last business information. So, it is essential for business to perform sales
forecasts. The sales forecasts of Envision Western wear store are projected below:
The total sales of clothing in 1st year are £258,750, Belts & hats are £14,250 and jewellery
& Gifts are £11,200. Similarly, in 2nd year clothing, Belts & hats and jewellery & Gifts are
£336,375, £18,525, £14,560. Additionally in third year £437,288 £24,083 £18,920
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Financial projections
Financial projection is considered as a forecast of future incomes as well as expenditures.
Mainly, the projection will account for internal or historical information as well as will
incorporate an anticipation of external market factors. Along with this, into the business planning
process the formulation of financial statements is an important aspects as this anticipates the
results in upcoming period. Moreover, this also assists entrepreneur to evaluate what extra assets
are required for supporting enhanced income as well as potential affects upon their predicted
balance sheet. Therefore, the financial projections of Envision Western wear store are shown
below:
Profit & Loss
Profit & Loss is regarded as the financial statement which summarizes the incomes, costs
and expenditures which are incurred at particular time duration generally a fiscal quarter or year.
All these records facilitates information regarding firm's ability or incompetency’s for generating
profitability through enhancing income, minimizing costs or both. It is essential as various firm's
are needed to prepare it as this aids entities management team to know the net income of the
business that may be helpful into procedures of decision making. Therefore, it is essential for
entrepreneur of Envision Western wear store to initially formulate a projected profit and loss
account so that they can able to get knowledge about the business net income and aids them into
make effective decision in respect of their business. The projected profit and loss account is
shown below:
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Profit & loss
As per the above graph, it has been analysed that the gross margin for 1st , 2nd and 3rd
year are £142,100, £184,730 and £240,145; operating expenses are £70,275, £75,502 and
£81,283. Therefore, the net profits in all three years are £49,234, £75,637 and £110,612.
Cash flow
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Cash flow statement is defined as the monetary statement which summarizes the amount
of cash and cash equivalent that enters as well as leave a firm. Moreover, this also measures how
effectively an entity manages their position of cash. In simple term, it may undertakes that how
efficiently they generates cash for paying their debt obligations as well as fund their operating
expenditures. It is important for all firm to formulate cash flow as this informs entrepreneur to
understand their business cash flow position. Therefore, as respective entrepreneur is planning to
open a clothing retail business named as Envision Western wear store so their projected cash
flow is shown below:
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Cash flow
From the above table, it has been analysed that the balance of cash within 1st year is £62,715,
2nd year is £131,514 and in 3rd year is £237,890.
Balance sheet
Balance sheet is considered as the financial statement which reports a firm's assets,
liabilities and shareholders equity at particular time as well as this also facilitates a basis for
calculating rates of return and assessing their structure of capital. Moreover, this also renders a
snapshot of what entity owns and owes and also the money invested through shareholders. This
plays crucial role into financial statement as this provides information to entrepreneur to get
knowledge about their assets and liabilities. Along with this, it also assists investors to obtain
insights within firm as well as their operations. Therefore, the projected balance sheet of
Envision Western wear store are shown below:
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Strengths and risks of business
As Envision Western wear store would opening a new clothing store within United
Kingdom so they has various strengths which would assists entrepreneur to enhance their
business activities. Along with this, they also have to face various risks as well like changing
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trends, inventory management, high competitors and others (Tran, 2020). So, some strengths and
risks are discussed below:
Risk
Trend Analysis: One of the key risk for new clothing store like Envision Western wear
store is trend analysis. Trends into clothing sector are regular changing and often elusive. An
effective store capitalise upon latest trends as well as recognises when that fashion are upon
declining. So, one misstep can outcomes into extreme stock and unexpected credibility. Whole of
these errors can prove fatal within respective sector. So, the stores like Envision Western wear
store can obviate these mistakes through recruiting experienced purchasers and purchasing
commercialised clothing rather than risky.
Strengths:
The key strengths of Envision Western wear store is trendy style of western along with
various sizes and colours. Also, with different variety of products such as hats, boots,
accessories, gifts etc. The other strength is application of new technology such as Retail ICE
POS software would helpful to record as well as maintain into their database effectively and
efficiently.
Closing summary
Entrepreneur would plan to start new clothing store which is named as Envision Western
wear store. They would plan to sell the trendy western style and also utilise the advanced
technology. Moreover, this will segment the men, women and kids in United Kingdom region
and target the middle and upper class people. Also it might have to face various risks such as
changing trends, inventory management, high competitors and others (Usman, 2020).
CONCLUSION
Based upon the above report, this has been concluded that this is vital for entrepreneur to
develop an effective business plan which assists them to become an successful entrepreneurship.
For instance, canvas business model is assists to known about their strategies, customers etc.
Also, PESTEL analysis is conducted as it aids in understanding the external analysis of particular
market. Moreover, STP analysis is applied in order to know segmentation, targeting and
positioning. Apart from this, financial and sales are forecasted to get knowledge about finance
that is required. This is helpful to anticipate upcoming sales according to the last business
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information. Additionally, the financial projection is to assists entrepreneur to evaluate what
extra assets are required for supporting enhanced income as well as potential affects upon their
predicted balance sheet.
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REFERENCES
Books and Journal
Ferreras-Garcia, R., Hernández-Lara, A. B. and Serradell-López, E., 2020. Gender and learning
results: a study on their relationship in entrepreneurship education and business
plans. Studies in Higher Education, pp.1-16.
Hutasuhut, S. and et. al., 2020. IMPACT OF BUSINESS MODELS CANVAS LEARNING ON
IMPROVING LEARNING ACHIEVEMENT AND ENTREPRENEURIAL
INTENTION. Jurnal Cakrawala Pendidikan, 39(1), pp.168-182.
Mendel, S. C., 2020. Social innovation, entrepreneurship and enterprise: what nonprofit students
need to know. In Teaching Nonprofit Management. Edward Elgar Publishing.
Mgunda, M. I., 2020. The Contribution of Educational Aspects in Entrepreneurship
Development. Moses Isdory Mgunda| International Journal of Advances in Management
and Economics, 9(01), pp.08-16.
Pratap, V., 2020. Unit-6 Preparation and Development of Business Plan-I. IGNOU.
Skrypnik, A., 2020. Business Plan for a Healthy Food Restaurant in Lappeenranta.
Sukumar, A., Xu, Z. and Tomlins, R., 2020. Student Social Enterprise Engagement: Capturing
Process, Benefits and Measuring Social Value. In Entrepreneurship Education (pp. 77-
84). Springer, Cham.
Tran, K., 2020. Establishing A Business Plan for Dog Coffee&Tea Helsinki.
Usman, A., 2020. ENTREPRENEURSHIP AND SMALL BUSINESS.
Yahaya, D. A., 2020. Individual Assignment: Business Plan Report Fundamentals of
Entrepreneurship (ENT300): Go-gurt Enterprise.
Online
PESTEL analysis of UK fashion industry. 2025. [Online]. Available Through:<
https://howandwhat.net/pestel-analysis-fashion-retail-industry-uk/. >
Western Wear Market Overview. 2020 [Online]. Available Through:<
https://www.alliedmarketresearch.com/western-wear-market>.
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