The Business Plan for Trial Swerve - Virtual Reality Software for Fashion Retailers and Consumers
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Trial Swerve offers VR and AR fitting solutions for online shoppers and fashion retailers at an affordable price. The business plan covers the owner's background, products and services, market research, and more. The Prince's Trust Business Plan Pack can help you get started.
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Welcome The Business Plan You’ve got a business idea. You’ve decided to start a business. You want to get going. But there’s a lot more to a good business than a good idea. You need to think things through to maximise your chances of success. Are you the right person to run the business? Will customers like your product? A business plan will help you turn an idea into a business. It needs you to think through all the parts of your business to plan how everything will work. It will take a few weeks to write if you’re going to do it properly. Some parts will be easier to complete than others. Stick at it because it’s not the final document that’s important, it’s the process. Although you want to have a good plan when you’re done, an OK plan is better than no plan. The Prince’s Trust Business Plan Pack The best business plans aren’t long and complex; they explain only the most important information – what you want to achieve, how you will get there and the things you need to do along the way. It’s best to tackle a business plan in small chunks. The Prince’s Trust Business Plan Pack can help. This is The Business Plan divided into sections to help you develop your business idea. You can use the information in The Guide to help you complete the sections. Some of the sections of The Business Plan have tables to record the financial parts of your business. The tables are also available in MS Excel format and the sums in these are automatic. The Prince’s Trust Enterprise Programme The Prince’s Trust has helped many young people to complete their business plans and start their own businesses. If you are aged 18–30 and unemployed or working fewer than 16 hours per week, then we might be able to help you. We have offices throughout the UK and in each there is a team of Enterprise Programme staff. To take part, you need to be interested in self employment and have a business idea that you would like help to test and explore. The programme can then help you to see if your business idea will work and whether self employment is right for you. If through this process you find out it is, the programme can offer mentoring support and, if you really need it, financial support to start your business. However, if self employment turns out not to be the right option, the programme can offer support to secure other goals in employment, education, training or voluntary work. We can’t guarantee that your business will work or that we will be able to offer you money, but if you are up for a challenge and want our help to explore your business idea, get in touch and come and meet us.
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Getting started Whose plan is this? Business and owner details: This proposed business is of virtual reality software which enables users to try clothes and other fashion accessories virtually. I am student who wants to pursue my entrepreneurial dreams and exploit the opportunities present in the Virtual Reality industry. Business name: The Trial Swerve Owner(s) name: Abc Xyz Business address and postcode: Unit LMNO, Arial Way, London W127GD, United Kingdom Business telephone number: +44 45 5684 454I Business email address: VRD@gamil.com
Section one Executive summary 1.1 Business summary: The trial swerve offers VR and AR fitting solutions for online shoppers and fashion retailers at an affordable price. 1.2 Business aims: The aim of the company is to attain stable profitability and successfully launch the products in UK. 1.3 Financial summary: Profit margin of the company will be £10 with mark up of 2.00%. The total costs will be £168880
Elevator Pitch 1.4 Your business name: Trial swerve 1.5 Strapline: Experience Immersive Shopping 1.6 Elevator pitch: The recent growth in online shopping has introduced new consumer problems in case of fashion retails such as high product return and consumer dissatisfaction with the look of the arrived product. The Trial swerve provides virtual reality and augmented solutions to consumers and fashion retailors for trying digital fashion purchases. The software solutions provided by the company provide users accesses to virtual reality or augmented realty trial rooms to test various online fashion products. This enables consumers to purchase the best fit products and is beneficial for business firms and individual users.
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Section two Owner’s background 2.1 Why do you want to run your own business? The main reason I want to start this business of VR and AR shopping rooms because I saw an opportunity in this industry with increasing trend of online shopping. I believe that this enterprise can gain high success in a shirt time period and help me develop a globally successfully enterprise. This is because the requirement for online shopping rooms will increase internationally as more consumers are going to shift to online shopping instead of physical shopping. Apart from this I want to gain control of my own decisions and achieve work-life balance which is not possible in doing corporate jobs. I have confident that my dedication will help me take this company to highest potential. This company will provide me higher returns in comparison to doing corporate job which is also the reason why I want to venture in this industry rather than moving towards corporate employment. 2.2 Previous work experience: My previous work-experience is at the role of assistant manager in retail shop. This working experienced increased my business acumen and helped understand the value of different employees and their contribution in completing daily operations at the firm. 2.3 Qualifications and education: My educational qualifications is a graduate degree in management. 2.4 Training: Details of future training courses you want to complete: In future I want to complete training in basic e-commerce courses. I will gain this training from online courses on E-commerce. This training will support my success in this entrepreneurial venture because e-commerce fashion retailors are an important consumer segment for the product offered by the proposed company. 2.5 Hobbies and interests: Travelling and participating in sports is one of my main hobbies. My main interests are learning about digital technologies such as Internet of things, Artificial Intelligence and Virtual technology. 2.7 Additional information: Starting this enterprise is very important for me as it will help me bring innovative solutions to the market and use this opportunity to become an established entrepreneur. I will be able to offer online consumers unique solutions and change digital shopping all over the globe.
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: In simplest terms the product offered by Trial Swerve will include providing consumers software which helps them try clothing and other fashion items online so that they are able to purchase the best products which are suitable for their body. In addition to this virtual reality product will also be offered by the company which can be used by fashion retailers to provide consumers at their establishment digital trial room experience. Consumers will be able to make quick decisions from this VR product or usage of the AR software, 3.3 Describe the different types of product/service you are going to be selling: The first product is VR technology offered to fashion retailers so that they are able to provide consumers additional value by giving them digital shopping experience. The consumers will be able to try on clothes and other fashion accessories without using physical trial rooms. Another product offered by the company is of an Augmented reality software which can be used by online fashion retailers as well as individual consumers. This software enables consumers to try fashion products digitally and determine if particular piece of clothing is suitable for purchasing. 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: The first product which will be lunched initially will the Augmented reality software designed for individual consumers. This product will be released first because it has wider target audience. In addition to this, the positive consumer reception of this product will act as a evidence for persuading fashion retailers to utilize the purchase the next product quickly. 3.5 Additional information: The lunch of the second product which includes Virtual Reality technology which allows fashion retailers to set up digital trial rooms in their stores requires more marketing in comparison to the augmented reality product. This is another reason that the augmented reality product will be released first while the virtual reality product will be released later on. The positive consumer reaction for the augmented reality product will support success of the virtual reality product.
Section four The market 4.1 Are your customers: individuals businesses both 4.2 Describe your typical customer: The basic consumer for the products offered by Trial Swerve includes fashion retailers and consumers. The first product of the company which is an Augmented reality software meant to provide digital shopping experience to online consumers can be used by online fashion retailers as well as individual consumers. This utilizes the camera of the consumers computer or smartphone to provide consumers augmented reality visuals of them wearing specific products. The virtual reality technology which will be offered to fashion retailers helps the business firms utilize VR to develop digital trial room. 4.3 Where are your customers based? The consumers of the company are not limited by geographical boundaries. The main consumers of the company are in the fashion retail industry. 4.4 What prompts your customers to buy your product/service? Individual consumers face difficulties in determining suitability of fashion products during online shopping. The AR solutions provided by this product provides effective solution for this problem. In case of fashion retailers the VR and AR product enhances digital experience of the consumers which is the reason for fashion retailers purchasing this product. 4.5 What factors help your customers choose which business to buy from? Affordability is the main factor which will attract consumers to the Trial Swerve as thee AR and VR products of the company will be oof high quality and of lower price in comparison to other firms. 4.6 Have you sold products/services to customers already? yes no If you answered “yes”, give details: 4.7 Have you got customers waiting to buy your product/service? yes no If you answered “yes”, give details: 4.8 Additional information:
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Section five Market research 5.1 Key findings from desk research: Desk research is defined as the research conducted from internet. It is determined from the desk research that the COVID-19 has accelerated the demand for virtual fitting rooms. The global virtual fitting room market size was 2.2 billion great British pounds in the year 2020. The international market for virtual fitting room showcases that there is lower growth of 17.3% in 2020 in comparison to average year on year growth during 2017-2019. The growth projection for this market is 2.62 billion great British pounds in 2021 to 9.71 billion great British pounds in the year 2028 at CAGR of 20.6% in the market period of 2021 to 2028. This demonstrates that creating new establishment in this market is beneficial because of high growth potential. It is interpreted that virtual fitting room industry will grow exponentially in the upcoming years because of increasing dependency on online retail for shopping fashion products. 5.2 Key findings from field research – customer questionnaires: Questionnaire Q1) Do you agree that shopping for clothes online is difficult because of inability to try clothes physically? a) Yes b) No Q2) What are the benefits of using digital trial room based on Virtual or Augmented technology? a) Quicker shopping b) Better consumer experience c) Personalization d) Supports decision making Q3) What are the main problems of associated with digital trial rooms? a) Breach of privacy b) Requirement of internet connection c) Inability to determine size of the product d) Functionality issues Q4) Do you agree with the statement that virtual reality trial rooms better than augmented reality trial rooms? a) Yes b) No Q1) Do you agree that shopping for clothes online is difficult because of inability to try clothes physically? Frequency a) Yes10 b) No5 Q2) What are the benefits of using digital trial rooms for shopping cloths based on Virtual or Augmented technology? Frequency
a) Quicker shopping4 b) Better consumer experience5 c) Personalization4 d) Supports decision making2 Q3) What are the main problems of associated with digital trial rooms?Frequency a) Breach of privacy7 b) Requirement of internet connection2 c) Inability to determine size of the product2 d) Functionality issues4 Q4) Do you agree with the statement that virtual reality trial rooms better than augmented reality trial rooms? Frequency a) Yes7 b) No8 Interpretation: From the above field research it is determined that consumers are facing problems in online shopping as most consumers have states that they are not able to try online fashion products to understand if the fitting and other aspects of the clothing is suitable for them. Out of 15 respondents ten have agreed with the statement that online shopping is difficult because of inability to try physical clothing. In addition to this consumer also see the benefits of using trial rooms as 5 respondents out of 15 respondents have stated that usage of digital trial rooms on the basis of Virtual reality or augmented reality technology improves consumer experience. There are several problems which affects experience of consumers using trial rooms. According to 7 consumers the threat of privacy breach is the main challenge associated with usage of digital trial rooms. Apart from this the field research has also highlighted the fact that most consumers prefer digital trial rooms which are based on Virtual reality in comparison to Augmented Reality. 8 respondents out of the total 15 survey takers have agreed with the statement that virtual reality trial rooms are better than augmented reality based trial rooms. 5.3 Key findings from field research – test trading: Test trading is defined as the processes of testing specific business idea with the consumers while still gaining unemployment benefits. In case of the test trading for the VR and AR trial rooms it was well received by the target audience and reached u to the desired mark. This showcases that investing in this business idea is profitable. 5.4 Additional information: Market research has improved the understanding of market reaction to the introduction of an affordable digital trial room brand. This brand will be able to gain success by fulfilling consumer demand at lower costs.
Section six Marketing strategy What are you going to do?Why have you chosen this marketing method?How much will it cost? Traditional billboard advertisement to interact with small scale and large scale fashion retailers and help them change online shopping experience of the consumers. This is suitable method for reaching fashion retailers who are profitable consumer segment for the company. This is because it will connect the company to small scale fashion retailers. £100 Social media marketing: This type of marketing involves promoting products by using social networks. This marketing method is advantageous for the business idea as most online shoppers use social media. This marketing method supports develop loyal young age online consumers. £70 TOTAL COST£170
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Section seven Competitor analysis 7.1 Table of competitors Name, location and business size Product/servicePriceStrengthsWeaknesses VirtuesizeVirtual fitting solution for online fashion retailers The company is constructed by experienced Virtual Reality experts in Japan which increases its credibility. The company is not famous globally. Zeekit by Wal-MartVirtual fitting solution for e- commerce shoppers The company is acquired by US based Walmart which increases its financial capabilities and industry knowledge. Acquisition by Walmart reduces the ability of the firm to offer its services to competing retailers such as Amazon.
7.2 SWOT analysis : Strengths The strength of the Trial Swerve is that it offers both AR and VR fitting room solutions. The respective company has the strength of offering consumers and fashion retailers specific solutions for their problems. Weaknesses Lack of brand recognition is weakness of the firm. Lack of entrepreneurial experience affects success of the company. Opportunities The firm has the opportunity to increase income by expanding internationally. There is high opportunity for growth in the VR fitting industry. Threats Increasing competition in VR industry is threat for The trial Swerve. Cyber security and privacy breaches are also threat for the company. 7.3 Unique Selling Point (USP): Unique Selling Point (USP) The USP of the company is affordability and different solutions for fashion retailers and individual consumers.
Section eight Operations and logistics 8.1 Production: The production activities will be completed in UK . 8.2 Delivery to customers: The product will be delivered to the consumers by downloading it from company website and installing the VR/AR software. 8.3 Payment methods and terms: Digital payment method is selected for completing consumer transactions. 8.4 Suppliers: Name and location of supplier Items required and prices Payment arrangementsReasons for choosing supplier Internet connection, UK25Digital paymentIt offers safe services. Computer hardware, UK200Digital paymentThe supplier offers products in timely manner. 8.5 Premises: The company premises will be in London. 8.6 Equipment If being bought Item requiredAlready owned?New or second hand? Purchased fromPrice Computer hardwareNoNewPQR enterprise200 Office essentialsNoNewJKF Ltd250 8.7 Transport: There is no transportation requirement as the products will be delivered digitally. 8.8 Legal requirements: Complying with Data Protection Act, 2018 to is an important legal requirement as consumes will be sharing their personal data with the company such as body measurements. 8.9 Insurance requirements: Insurance for cyber security will be used as the business is primarily digital.
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8.10 Management and staff: The staff will consist of highly skilled VR experts. 8.11 Additional information: Skilled staff and strong technological infrastructure will support success of the company.
Section nine Costs and pricing strategy Product/service nameVR/AR trial room ANumber of units in calculation500 per month B Product/service components Components cost 145 per unit CTotal product/service cost72500 DCost per unit300 EPrice per unit310 FProfit margin (£)10 GProfit margin (%)3.23% HMark up (%)2.00%
Section ten Financial forecasts 10.1 Sales and costs forecast Month123456789101112TotaL AMonth nameJanuar y Februar yMarchAprilMayJuneJulyAugustSeptem ber Octobe r Novem ber Decem ber Sales forecast BProduct/service T- shirt1504124001753952802851951902853254953587 Costs forecast DProduct/service45000585008450052500118000110000855001246005670085800982001478001076100
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EAssumptions (e.g. Seasonal trends) Seasonal changes which affect sale of Virtual Reality/Augmented Reality trial room services by consumers and fashion retailers is the holiday season. This is because during the holiday seasons online sales are introduced and online shopping also increases which increases the sale of the product.
10.2 Personal survival budget SectionMonthly cost (£) A Estimated costs Mortgage/rent3000 Council tax216 Gas, electricity and oil100 Water rates1000 All personal and property insurances20 Clothing5 Food and housekeeping2 Telephone3007 Hire charges (TV, DVD etc.)9000 Subscriptions (clubs, magazines etc.)50 Entertainment (meals and drinks)50 Car tax, insurance, service and maintenance100 Children’s expenditure and presents250 Credit card, loan and other personal debt repayments10 National Insurance50 Other20 BTotal costs (£)16880 C Estimated income Income from family/partner50000 Part time job3000 Working tax credit2000 Child benefits70000 Other benefits108120 Other100000 DTotal income (£)16880 ETotal survival income required (£)50000
10.3 Cashflow forecast JanFebMarchAprilJuneJulyAugustSeptOctNovDecTotalYR2YR3Yr4 Sales 1:30604590612061206120918091809180918012240122401224099450220320220320220320 Loan40000NilNilNilNilNilNilNilNilNilNilNil40000NilNilNil Investment.NilNilNilNilNilNilNilNilNilNilNilNil0NilNilNil Total Sales:30604590612061206120918091809180918012240122401224099450220320220320220320 SET UP COSTS TOTAL14600NilNilNilNilNilNilNilNilNilNilNil14600NilNilNil Direct Costs: InventoryNilNilNilNilNilNilNilNilNilNilNilNil0NilNilNil TOTAL Direct Costs:NilNilNilNilNilNilNilNilNilNilNilNil0NilNilNil Fixed Costs: Salaries 130003000300030003000300030003000300030003000300036000330003300033000 Rent.2162162162162162162162162162162162162592259225922592 Staff Wages.10001000100010001000100010001000100010001000100012000120001200012000 1001001001001001001001001001001001001200120012001200 Phones.300710101010101010101010103117120120120 Freight & Postage55555555555560606060 Stationary.2222NilNil2222NilNil16141614 Promotion & Ad.9000NilNilNilNilNilNilNilNilNil9000Nil18000180001800018000 Legal50NilNilNilNilNilNilNilNilNilNilNil50505050 Transport505050505050505050505050600600600600 Vehicles2502502502502502502502502502502502503000300030003000 Insurance202020202020202020202020240240240240 Maintenance1001001001001001001001001001001001001200120012001200 Misc.202020202020202020202020240220220220 Loan repayment.101010101010202020202020180200200200 Interest on loan.505050505050505050505050600550550550 TOTAL:1688048334833483348314831484348434843484313841484179095730467304873046 1688048334833483348314831484348434843484313841484179095730467304873046 -13820-24312871287128943494337433743377397-1601739920355147274147272147274 May Utilities/Gas/Elec Sub Total:Fix + Direct Costs. Net Profit:Sales – Sub total
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10.4 Costs table Cost itemWhat is included and how you worked it outTotal cost Terminal This refers thee actual interface to the console that you can type and execute text based commands for developing VR and AR software. 145 Internet Connection This is essential for completing various activities at the company.25 Anti-virus applicationThis is essential for protecting digital assets of the company.130
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Section eleven Back-up Plan 11.1 Short-term plan: The short-term plan is to launch both the products successfully in UK market. 11.2 Long-term plan: The long-term plan is to expand internationally. 11.3 Plan B: The back-up plan is to sell the VR and AR technology to established international retailer.