Business Plan for Eternal Threads: Clothing Brand in London

This business plan outlines the establishment of Eternal Threads, a clothing brand in London that will provide trendy clothes for women. It includes details about the owner's background, products and services, market research, marketing strategy, operations and logistics, costs and pricing strategy, and more.

Getting started
Whose plan is this?
Business and owner details:
Fashion industry is at boom in UK. It is seen that there are various opportunities that are available
in the market. So, the business will be established in London at main street.
Business name:
The name of business will be “Eternal Threads”
Owner(s) name:
ABC
Business address and postcode:
Eternal Threads will be established at High Street, London.
Postcode: W8 5ED
Business telephone number:
020*****
Business email address:
[e-mail]
Home address and postcode (if different from above):
Same as above High Street, London.
Postcode: W8 5ED
Home telephone number (if different from above):
Same
Home email address (if different from above):
[e-mail]

Section one
Executive summary
1.1 Business summary:
The “Eternal Threads” will work as a clothing brand. There will be variety of products for the
customers. The business organisation will also provide trendy clothes to the customers in order to provide
them best. There are various products that ill be provided by the company (Abd Ghani and et.al., 2017).
They will provide clothes for men, women and children.
1.2 Business aims:
The aims of “Eternal Threads” are as follows:
 To establish strong position in the market.
 To reach more customers
 To provide value to the customers.
1.3 Financial summary:
It is important to set budget in starting. It will help the business organisation to arrange finance
and use the same in an appropriate manner.

Elevator Pitch
1.4 Your business name:
“Eternal Thread”
1.5 Strapline:
“New Clothes, New Passion”
1.6 Elevator pitch:
“Eternal Thread” is a new business venture that will provide trending clothes to the customers. It will be
an outlet providing best quality goods to men, women and children. It is seen that in the initial phase they
will capture women (Brink, 2018). The aim is to provide affordable goods to the customers and enhance
their living standard.

Section two
Owner’s background
2.1 Why do you want to run your own business?
I have done management course and that motivated me to do my own business. I have keep
interest in fashion and love to make designer clothes. I also understand, that to earn good amount of
money it is required to start own business. I want to establish a clothing brand and provide trending
clothes to the customers.
2.2 Previous work experience:
I have worked in Marks and Spencer. It helped me to attain good knowledge about the clothes that
must be used. It also assist in knowing about the trend in the market. I have also done internship in
clothing brand.
2.3 Qualifications and education:
I have done management course in business. It helped me to know about the resources required to
start a business.
2.4 Training:
I have taken training related to management. It will help to work effectively and do the business.
Along with that while internship the training was provided that was related to intellectual skills. It also
helps in doing business and dealing with costumers.
Details of future training courses you want to complete:
It is seen that digitalisation is in the trend. Now I will like to get training in use of digital
marketing. It will help me to market the products in an effective manner (Che Rusli, 2020). I want to
learn about the ways of transforming my business online.
2.5 Hobbies and interests:

My hobbies include:
 Reading books and novels
 Doing creative home projects
 Playing guitar and songwriting
 Running and Yoga
 Playing video games
2.7 Additional information:
I belong to a business family. This is also a motivating factor. My family member motivates me to
start business and guide me. My friends are also in favour of starting the business and help me at every
stage.

Section three
Products and services
3.1 What are you going to sell?
a product
a service
both
3.2 Describe the basic product/service you are going to sell:
“Eternal Threads” is a business in fashion industry. The provide wide rang of clothes to
customers. It provides trends clothes that are fashionable. The business will focus only on clothes for
women. They will provide variety to the women that are of high quality.
3.3 Describe the different types of product/service you are going to be selling:
In future the business will expand its operations. They will provide clothes for men and children.
3.4 If you are not going to sell all your products/services at the start of your business, explain why
not and when you will start selling them:
Due to lack of capital and uncertain nature of business the business will only sell products for
women. After doing business for around 5 years and earning good amount of profit, the business will start
serving clothes to men and children.
3.5 Additional information:
In future the business organisation will also start there operation online. “Eternal Threads” will
use social media marketing to attract more and more customers (Fernando and Indunil, 2020). It will help
to reach more customers and persuade them to buy the goods and services of business.

Section four
The market
4.1 Are your customers:
individuals
businesses
both
4.2 Describe your typical customer:
There are various segments that are available in the market. It is seen that target customers will be
of age group 18 to 40 years. The women of this age will be targeted. They are in need of wear new and
trending clothes. It is necessary to note to establish strong image of the business in the mind of customers.
There must be proper research about the target customers.
4.3 Where are your customers based?
The customers of UK will be targeted. It is necessary to first reach the customers of home country.
It is easy to know about the trends in the market. (Hanák and Grežo, 2020)
4.4 What prompts your customers to buy your product/service?
The trendy clothes will attract the customers. At the same time use of social media marketing will
prompt the customers towards the products served by “Eternal Threads”
4.5 What factors help your customers choose which business to buy from?
The factors that will help the customhouses to choose “Eternal Threads” are as follows:
 Wide variety of clothes
 Trending clothes
 Quality goods
 Right promotional technique

 Effective relations with the customers
4.6 Have you sold products/services to customers already?
yes
no
If you answered “yes”, give details:
At the time of doing job in Marks and Spencer. I have sold products to the customers.
4.7 Have you got customers waiting to buy your product/service?
yes
no
If you answered “yes”, give details:
At the festive season there are huge lines at store and customers wait to make purchases.
4.8 Additional information:
“Eternal Threads” will provide quality products to the customers. Along with that use of effective
marketing tools and promotional strategies will help to enhance sales of the business.

Section five
Market research
5.1 Key findings from desk research:
From the secondary data, it is analysed that the fashion industry is at boom. They require trendy
clothes in market. It is important to use new ways that help to gain lead over the competition (Marcelli,
2019).
5.2 Key findings from field research – customer questionnaires:
The customers require quality goods. Along with that they need products at affordable price. It is
also analysed that customers prefer social media marketing. The use of pictures are better for the
customers and help to attract them.
5.3 Key findings from field research – test trading:
Providing best goods to customers will help to attract them retain them in the organisation.

Section six
Marketing strategy
What are you going to do? Why have you chosen this
marketing method?
How much will it
cost?
Social Media marketing
It is cost effective way of
marketing that have good reach 9000
TOTAL COST 9000

Section seven
Competitor analysis
7.1 Table of competitors
Name,
location
and
business size
Product/service Price Strengths Weaknesses
J brand Women Clothing Competitive price They have established
strong position in market
There are huge competitors present in
market.

7.2 SWOT analysis :
Strengths
The use of best quality goods and providing
trending clothes to the customers is strength for
“Eternal Threads”
Weaknesses
There are huge competitors present in market.
Competition is weakness for the company.
Opportunities
The use of digital technology will help to reach
more and more customers.
Threats
Uncertainty present in the market is a threat
before starting new busines (Masciocchi,
2020).
7.3 Unique Selling Point (USP):
Unique Selling Point (USP)
USP helps to distinguish the organisation from others. It is important to provide unique to the customers. “To provide best quality products to the customers”

Section eight
Operations and logistics
8.1 Production:
The production will take place in London It self. The use of quality products will be done so that
the final product launched by the company is also of the best quality. Total quality management principle
of operations management will be used to provide best to customers (Natashia, Eng and Galinium, 2020).
Machines as well as human resource will help to produce the products effectively.
8.2 Delivery to customers:
It is important to provide products to the customers. It is seen that the products will be available at
the stores. They can directly purchase from the stores. The business organisation will also have online
operations. The products will be delivered to the customers directly at their homes.
8.3 Payment methods and terms:
It is important to make records of the payment. Cash will be the mode of payment. At the same
time there is need to become innovative and provide online payment methods to the customers. After
Covid-19, it is important to provide contactless delivery to the customers. It is seen that customers have
become more aware and conscious about their health in today's time (Zhongming and et.al., 2019). So,
providing the option of online payment and cards is important.
At the time of online delivery of goods there is also need to give option of providing online
payment. It is important to provide all the methods of payment to the customers.
8.4 Suppliers:
Name and location
of supplier
Items required
and prices
Payment
arrangements
Reasons for
choosing supplier
A Cloth Own capital Quality product
provided
B Threads Own capital All colours

available
C Accessories Own capital Variety available.
8.5 Premises:
A place will be taken on rent for the purpose of doing business. It is seen that there is no space
available with me. I will take a premise on rent at high street, London. It is seen that it is a extra
expenditure so I will earn money and purchase the same premise in future.
8.6 Equipment
If being bought
Item required Already owned? New or second
hand?
Purchased from Price
Machine Yes
Computer/
laptop
No New ABS
8.7 Transport:
There is need of proper transportation. It will help to collect the raw materials and take them to
place of business. At the same time to deliver the products to the customers there is need of
transportation. It helps to reach the customers on time.
8.8 Legal requirements:
There is need to fulfil all the legal requirements. It is seen that it is important to register the
business. Along with that there is need of seller's license to start a business. These five elements are of
integral importance fibre content, country of origin, care instructions and flammability while starting a
clothing business. The business organisation that is able to use and follow laws is able to operate
smoothly.

8.9 Insurance requirements:
Yes, there is need of insurance. It is seen that there are various uncertainties present. The problems
may arise at any time. To bear the loss it is important to haver insurance. It will help to minimise the loss
and work effectively.
8.10 Management and staff:
Management plays a major role in the organisation. It is seen that there is need of more
management at the time of starting new business. It is seen that the below is schedule for the employees.
Employees Number of employees Working hours
HR 1 8 hours a day
Sales executives 5 8 hours a day
Marketing executives 2 8 hours a day
Billing executives 3 8 hours a day
Management Team including
supervisors
4 8 hours a day
Supporting Staff 2 5 hours a day
It is important to start business with required number of employees. In the initial level there is
need of providing training to the employees. A manager plays a vital role in providing training to the
employees and in guiding them. It is necessary to take proper care of the employees and manage them so
that they are able to work. All their problems are heard and the solution is given to them. Proper
management plays a vital role in success of the “Eternal threads”
8.11 Additional information:
Talented employees must be selected by the “Eternal threads”. It is important to provide them
proper training so that they are able to adjust in the working environment. The management includes
planning, organising, staffing, directing as well as controlling. Use of all these function will help in
success of organisation.

Section nine
Costs and pricing strategy
Product/service name T- shirt
A Number of units in calculation 500 per month
B
Product/service components
Cloth
Components cost
145 per unit
C Total product/service cost 72500
D Cost per unit 300
E Price per unit 310
F Profit margin (£) 10
G Profit margin (%) 3.23%
H Mark up (%) 2.00%

Section ten
Financial forecasts
10.1 Sales and costs forecast
Month 1 2 3 4 5 6 7 8 9 10 11 12 TotaL
A Month name January Februar
y March April May June July August Septem
ber
Octobe
r
Novem
ber
Decem
ber
Sales forecast
B Product/service
T- shirt 150 195 280 175 395 400 285 412 189 286 324 496 3587
Costs forecast
D Product/service
45000 58500 84000 52500 118500 120000 85500 123600 56700 85800 97200 148800 1076100

E Assumptions
(e.g. Seasonal trends)
The t-shirts are sold less in January because it is the season of winter and the people prefer to purchase more of woollen clothes.
The units produced every months are sold. It means that the number of production units and selling units are same.

10.2 Personal survival budget
Section Monthly cost (£)
A
Estimated
costs
Salaries 3000
Rent 216
Gas, electricity and oil 100
Staff Wages 1000
All personal and property insurances 20
Freight & Postage 5
Stationary 2
Telephone 3007
Promotion & Advertisements 9000
Legal 50
Transport 50
Car tax, insurance, service and maintenance 100
Vehicles 250
Credit card, loan and other personal debt
repayments 10
Interest on Loan 50
Miscellaneous 20
B Total costs (£) 16880
C
Estimated
income
Income from family/partner 50000
Child benefits 3000
Other benefits 2000
Other 70000
Total income (£) 108120

D
E Total survival income required (£) 100000

10.3 Cashflow forecast
Jan Feb March April June July August Sept Oct Nov Dec Total YR2 YR3 Yr4
Sales 1: 3060 4590 6120 6120 6120 9180 9180 9180 9180 12240 12240 12240 99450 220320 220320 220320
Loan 40000 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 40000 Nil Nil Nil
Investment. Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 0 Nil Nil Nil
Total Sales: 3060 4590 6120 6120 6120 9180 9180 9180 9180 12240 12240 12240 99450 220320 220320 220320
SET UP COSTS TOTAL 14600 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 14600 Nil Nil Nil
Direct Costs:
Inventory Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 0 Nil Nil Nil
TOTAL Direct Costs: Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 0 Nil Nil Nil
Fixed Costs:
Salaries 1 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36000 33000 33000 33000
Rent. 216 216 216 216 216 216 216 216 216 216 216 216 2592 2592 2592 2592
Staff Wages. 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000 12000 12000 12000
100 100 100 100 100 100 100 100 100 100 100 100 1200 1200 1200 1200
Phones. 3007 10 10 10 10 10 10 10 10 10 10 10 3117 120 120 120
Freight & Postage 5 5 5 5 5 5 5 5 5 5 5 5 60 60 60 60
Stationary. 2 2 2 2 Nil Nil 2 2 2 2 Nil Nil 16 14 16 14
Promotion & Ad. 9000 Nil Nil Nil Nil Nil Nil Nil Nil Nil 9000 Nil 18000 18000 18000 18000
Legal 50 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 50 50 50 50
Transport 50 50 50 50 50 50 50 50 50 50 50 50 600 600 600 600
Vehicles 250 250 250 250 250 250 250 250 250 250 250 250 3000 3000 3000 3000
Insurance 20 20 20 20 20 20 20 20 20 20 20 20 240 240 240 240
Maintenance 100 100 100 100 100 100 100 100 100 100 100 100 1200 1200 1200 1200
Misc. 20 20 20 20 20 20 20 20 20 20 20 20 240 220 220 220
Loan repayment. 10 10 10 10 10 10 20 20 20 20 20 20 180 200 200 200
Interest on loan. 50 50 50 50 50 50 50 50 50 50 50 50 600 550 550 550
TOTAL: 16880 4833 4833 4833 4831 4831 4843 4843 4843 4843 13841 4841 79095 73046 73048 73046
16880 4833 4833 4833 4831 4831 4843 4843 4843 4843 13841 4841 79095 73046 73048 73046
-13820 -243 1287 1287 1289 4349 4337 4337 4337 7397 -1601 7399 20355 147274 147272 147274
May
Utilities/Gas/Elec
Sub Total: Fix + Direct Costs.
Net Profit: Sales – Sub total

10.4 Costs table
Cost item What is included and how you worked it out Total cost
Cloth It included that cloth which is needed for the
manufacturing of T- shirts 145
Thread It is used to stitch the product 25
Accessories The other items which are needed for making the t-
shirt attractive 130
Section eleven
Back-up Plan
It is important to note that business may fail. There is need of back up plan that will be used in
case of failure. The plan is to provide such goods to the customers that can be used for longer duration of
time. Along with that the idea is to recycle those clothes. The customers will be given the option to give
the clothes back to the business and they will pay money in return.
11.1 Short-term plan:
Short plan is to reach more and more customers.
11.2 Long-term plan:
Long term plan is to expand the business organisation
Plan B
If the business of cloth will fail again the plan B is to operate in new field. Then I will start a cafe.
I have understood that it is important to take lessons from the past failure and having confidence to work
again.

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