Enterprise and Entrepreneurship: Business Plan for Maya and David Clothing

This business plan covers the description of Maya and David Clothing, its target customers, competitors, skills, funding sources, resources, and management information system. It also includes a 2-year profit and loss account, cash flow forecasts, and break-even analysis. The vision of the company is to become a strong brand in the clothing industry in the UK.

BM564 Enterprise and
Entrepreneurship

EXECUTIVE SUMMARY
The business plan summarised that enterprise and entrepreneurship helps entrepreneurs in
order to make successful business and earn maximum profit. In this business plan, Maya and
David clothing company is selected in order to analyse its products, target market, competitors
and skills that are needed for its owner. It also analyse its funding sources, resources,
management information system and vision that are set in order to achieve in future respectively.

Contents
EXECUTIVE SUMMARY............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description about proposed future business................................................................................1
Identification of target customer..................................................................................................1
Analysing about competitors ......................................................................................................2
Skill Analysis in order to develop and take business idea forward.............................................3
Projected 2 year profit and loss account and proposed 2 years cash flow forecasts including
break even....................................................................................................................................4
Sources of funds that help business to grow opportunity............................................................7
Plan for obtaining resources for the business..............................................................................7
Analysing management information system................................................................................8
Vision for the business.................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Enterprise refers to an organisation, company, business, or other entity which perform
various activity in order to earn profit in effective manner whereas entrepreneurship is a method
which analysis how to establish and operate business in order to earn profit and survive for long
time (Bridge and O'Neill, 2017). In this business plan, selected company is Maya and David
clothing which is an independent designer brand of London, UK. It provide ready to wear,
customs clothing for men and women in UK.
This business plan cover clear description of Future business and about their customers
and competitors. It further analyse its skills, source of funds, resources, types and management
information system.
MAIN BODY
Description about proposed future business
Maya and David Clothing is a new brand and based in UK which provide quality
services to their potential customers in effective manner. It provide modern and classic men's and
women's cloths, accessories and bags and it also provide ready to wear, customs clothing for
men and women (Crammond, 2020). To attract customers towards their brand it provide their
products in low price at starting. Its main objective is earn maximum profit by providing quality
products to their potential customers in order to fulfil their needs and wants in effective manner.
Identification of target customer
Target customers refers to a person or group which are influenced by the company in
order to purchase their products and services in effective manner. In order to analyse their target
customer company use STP model. STP analysis refers to a process of three important steps that
are Segmentation, Targeting and Positioning that help company in order analyse its target market
in effective manner. In context of Maya and David clothing, its target customer is identify with
the help of STP analysis that are discuss below:
Segmentation- It is a process in which market is divided in different group according to
common and distinctive traits of customers. Various type of segmentations are Demographic,
Geography, Psycho graphics, Values, Life Stages and Behaviour. In respect of Maya and David
clothing, demographic segmentation is most suitable for their brand in which customer age,
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gender, marital status, ethnicity, etc. are need to be focused in order to offer their products to its
target customers.
Targeting- It is a process in which company choose suitable segmentation which
influenced their target customers in order to purchase their products and services in effective
manner. In regards of Maya and David clothing, it choose demographic segmentation in order to
provide their products for men and women along with different size and for different age group
in effective manner.
Positioning- It is a process in which company choose best suitable marketing campaign
for their segment in order to advertise their product in their target market in effective manner
(Korede, 2021). In case of Maya and David clothing, it uses various marketing strategy in order
to advertise their product in their target market in effectively. It use social media campaign in
order to advertise their products in effective manner.
Analysing about competitors
Competitors refers to other company which provide similar type of product in same
market (Lewis and Massey, 2018). In accordance with Maya and David clothing, its strong
competitors are Burberry and Next plc which also provide clothing products in UK and other
countries as well. Their market share and USP are described below:
Basis Maya and David
clothing
Burberry Next plc
Market share Its market share is a nil
because it is a proposed
to be future brand of the
company.
Its market size is USD
110.64 billion at 2020
and expected to reach it
153.97 billion by 2026.
Its market share is
about 7.1% (Market
share of Next Plc.
2021).
Unique selling
proposition
Its unique selling
proposition is its quality
products in low price.
Its unique selling
proposition is its
authentic British
heritage in which iconic
trench coat, barberry
check and its “The
Its USP is being the
second largest clothing
retailer company of UK
after Burberry.
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Equestrian Knight” logo.
Skill Analysis in order to develop and take business idea forward
Skills refers to an ability which helps to do an activity or work in effective manner. In
order to run a business an individual should have various skills which helps them to run their
enterprise in effective manner. In account of Maya and David clothing, skills that its owner have
are described below:
Business management skills- It is an important skills for an entrepreneur in order to
operate their business and achieve their goals in effective manner(McElwee and Atherton, 2021).
In context of Maya and David clothing, its owner have business management skills in order to
operate their business and manage its functions in effective manner.
Communication and active listening skills- Communication skills is important in every
field or type of business in order top communicate with their customers in effective manner. In
respect of Maya and David clothing, its owners have strong communication and active listening
skills in order to communicate and interact with their potential customers and influence them in
order to purchase their products.
Critical thinking skills- It helps business owners to analyse the relevant information in
order to solve certain problems in their organisation. In regards of Maya and David clothing, its
owners have critical thinking skills in order to analyse the situation and solved it with effective
and logical solution.
Skills that are important and required by the owner of Maya and David clothing is
described below:
Risk taking skills- It is important for an entrepreneur in order to become able to take
risks that helps them by providing opportunity to learn as well as grow their business in future.
In case of Maya and David clothing, it is important for its owner to take risk which may occur
due to continuous changes in the environment.
Time management and organisational skills- Time management skills are important
for an owner of a company in order to make their company highly productive in order to earn
maximum profit from it(Özsungur, 2021). In accordance with Maya and David, it is important
for its owner to manage and operate their business functions on time and make their working
area organised properly.
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In order to improve its important skills, owner of Maya and David clothing use
personality develop plan that are discuss below:
Skills Action plan Importance Time require
Risk taking skills By understanding that
failure is going to happen a
lot and by understanding
current risk properly
(Williams and Kedir, 2019).
It is important for the
owner in order to take risk
for running their business
in highly competitive
market.
5 Months
Time management and
organisational skills
By setting smart goals for
the company, setting
weekly priorities and by
taking breaks.
It is important for the
owner in order to
complete their task on
time effectively.
4 Months
Projected 2 year profit and loss account and proposed 2 years cash flow forecasts including break
even
In context of Maya and David clothing, 2 years profit and loss account and cash flow
including break even are mentioned below:
Profit and loss statement
Particulars 1st year 2nd year
Sales £26,000 £31,000
Direct Cost of Sales £1,250 £1,500
Total Cost of Sales £1,250 £1,500
Gross Margin £24,750 £29,500
Gross Margin % 95.19% 95.16%
Expenses
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Payroll £15,000 £15,000
Sales and Marketing and Other
Expenses
£200 £200
Utilities £250 £250
Insurance £400 £400
Rent £2,000 £2,000
Payroll Taxes(Bridge and O'Neill,
2017) (Crammond, 2020) (Korede,
2021) (Lewis and Massey, 2018)
(McElwee and Atherton, 2021)
(Özsungur, 2021) (Williams and
Kedir, 2019)
£2,250 £2,250
Total Operating Expenses £20,100 £20,100
Profit Before Interest and Taxes £4,650 £9,400
EBITDA £4,650 £9,400
Interest Expense £609 £603
Net Profit £4,041 £8,797
Net Profit/Sales 15.54% 28.38%
Cash flow statement
Cash Received 1st year 2nd year
Cash from Operations
Cash Sales £26,000 £31,000
Subtotal Cash from Operations £26,000 £31,000
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Additional Cash Received
Long-term Liabilities Principal
Repayment
£694 £694
Subtotal Cash Spent £22,658 £22,661
Net Cash Flow £3,342 £8,339
Cash Balance £17,938 £26,277
Break even analysis
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BEA
Revenue £20,918
Assumptions:
Avg. Per cent V.C. 5%
Estimated Monthly F.C. £19,933
Sources of funds that help business to grow opportunity
Funds are important for any type company in order to operate their business in effective
manner. Various types of sources of funds are available which helps company in order to run
their business in effective manner. In respect of Maya and David clothing, its sources of funding
that helps them to grow are described below:
Personal investment- In order to start a new business first investor is company's owner
who invest its own money in their business in order to start their business in effective manner
(Bridge and O'Neill, 2017). In regards of Maya and David clothing, its owner invest its own
money in the form of cash and with some fixed assets in their business.
Bank loans- It is a most commonly used source of funds in which company borrowed
funds from bank. In accordance with Maya and David clothing, its also borrowed some amount
from bank in order to operate its business functions and repay this amount in instalments with
interest in particular time.
Plan for obtaining resources for the business
The resources that are important for the company in order to create value for their
customer and it is needed by the company in order to support and sustain it. Various type of
resources are needed in any company and its is categorized in four categories that are Physical,
Human, Intellectual and Financial resources. In context of Maya and David clothing, plan for
obtaining resources for its business which is important for its start up and in order to use it 2
years ahead are described below:
 Financial resources- Resources like cash, bank balance and loan are the main financial
resources of Maya and David clothing.
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 Human resources- Employees, management staff and other workers are human
resources of Maya and David Clothing.
 Physical resources- Premises and Equipment are its physical resources that are fixed in
nature and helps them to operate their business in effective manner.
 Intellectual resources- Its designs and brand name are its intellectual resources.
Analysing management information system
Management information system is a technique which is used by the company in order to
manage, control, coordinate, and analyse its business information through information system in
order to make decision for the company. In respect of Maya and David clothing, its management
can used Executive information system in order to get summarised report of its all company
levels and departments such as operations, human resources and accounting.
Vision for the business
Vision refers to a goals or objectives that someone wants to achieve in future. In case of
Maya and David clothing, its vision is to become strong brand of clothing industry and make top
position in UK brand by providing quality service to their potential customers in effective
manner. It also want to provide high quality products in reasonable price.
CONCLUSION
From the above mentioned business plan, it is concluded that enterprise is a business
entity and entrepreneurship is a method which helps entrepreneur in order operate its business in
effective manner. STP analysis help companies in order to analyse and identify its target
customer in order to provide their products in effective manner. Competitor analysis help
companies in order to get know those things which makes them different from their competitors.
Skills analysis help entrepreneur in order to get know about those skills which is important in
order to operate their business in effective manner.
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REFERENCES
Books and Journals:
Bridge, S. and O'Neill, K., 2017. Understanding enterprise: Entrepreneurs and small business.
Macmillan International Higher Education.
Crammond, R. J., 2020. Conclusion: Moving Entrepreneurship Education Forward for Teaching
and Support. In Advancing Entrepreneurship Education in Universities (pp. 187-202).
Palgrave Macmillan, Cham.
Korede, T., 2021. What do we Talk about when we Talk about Ethnic Entrepreneurship?.
In Global Migration, Entrepreneurship and Society. Emerald Publishing Limited.
Lewis, K. and Massey, C., 2018. Youth entrepreneurship. In Entrepreneurship: New
perspectives in a global age (pp. 206-226). Routledge.
McElwee, G. and Atherton, A., 2021. Rural entrepreneurship. In World encyclopedia of
entrepreneurship. Edward Elgar Publishing.
Özsungur, F., 2021. Exploratory and Exploitative Entrepreneurship. In Handbook of Research
on Entrepreneurship, Innovation, Sustainability, and ICTs in the Post-COVID-19
Era (pp. 24-48). IGI Global.
Williams, C. C. and Kedir, A. M., 2019. Explaining cross-country variations in the prevalence of
informal sector competitors: lessons from the World Bank Enterprise
Survey. International Entrepreneurship and Management Journal. 15(3), pp.677-696.
Online:
Market share of Next Plc. 2021. [Online]. Available through:
<https://www.theguardian.com/business/2018/jan/18/primark-primed-overtake-next-uk-
no-2-clothing-retailer>
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