Booming Boutique: Business Plan and Market Analysis Report

The assignment presents a comprehensive business plan for Booming Boutique, a startup located in Birmingham, UK, specializing in fashionable clothing for the baby boomer generation. The plan outlines the company's executive summary, business details, location, market analysis (including PESTLE and SWOT analyses), product and service descriptions, unique selling propositions (USP), competitor analysis, operational plans, risk and contingency strategies, sales and marketing approaches, financial and funding plans, and management team structure. Booming Boutique aims to provide customized clothing options catering to various sizes and styles, with a focus on high-quality customer service and trend awareness. The report highlights the company's strengths, weaknesses, opportunities, and threats, along with financial projections, and strategies for mitigating potential risks. The business model includes both online and offline boutiques to maximize market reach and ensure customer satisfaction.

Entrepreneurship and Business

EXECUTIVE SUMMARY
Booming Boutique is the new start-up which is located in Birmingham, UK. It offers
highly stylish and fashionable clothing to the target audience. The target market is the people
from lower middle to higher class and mainly targets the baby boomers. The USP of it is to
provide outfit of various sizes which fits every shape and size of women. In the second, year,
the profits will improve which depicts that investing in this business idea is beneficial. The
business can make use of borrowings and personal savings for meeting with the capital
requirements.

TABLE OF CONTENTS
EXECUTIVE SUMMARY........................................................................................................2
Business details......................................................................................................................4
Location..................................................................................................................................5
Market/industry analysis........................................................................................................5
Product and service description.............................................................................................6
USP and competitor analysis.................................................................................................6
Operation plan........................................................................................................................7
Risk and contingency plans....................................................................................................8
Sales and marketing strategy................................................................................................10
Finance and funding plans...................................................................................................11
Management teams...............................................................................................................13
REFERENCES.........................................................................................................................15

Business details
Booming boutique is the new start up which will sell the fashionable clothing to
women of the baby boom generation. The business will be successful due to the reason that
now a days people are demanding more and more unique and personalised cloths. Thus, the
company will not only create fashionable cloths but will also provide an option to personalise
it as per the requirement of the customers. Most of the big firms offers their catalogue from
which customers have to select which is not so in case of Booming boutique.
SWOT analysis:
Strength:
 The unique concept within it, is its main strength which will result into drawing the
attention of the customers leading to improving the financial performance.
 Booming boutique has put much emphasis over the marketing and promotion of the
business idea which ahs helped in making people aware about the new offers and stay
connected with the market.
 Affordability is another strength as it will help in maintaining a cost-effective level
which will assist in grabbing the customers of different class and making them visit
again.
Weakness:
 The business might be required to invest into getting the latest technology otherwise,
there are chances that it might influence the operation of the business (SWOT
Analysis. 2021).
 The company might be require to compromise on the quality of the product as the
high-quality result into increase the cost which the firm cannot afford in the initial
years.
Opportunities:
 The business idea is unique as it designs cloths as per specification of the customers
which might help in attaining long term success.
 It can expand the business for the other category of customers as well which will help
in improvising the financial performance of the business.
Threats:
 The major threat is the number of competitors in the market offering similar type of
products and services at a lower cost but compromising in terms of quality.
 Fluctuation in the external environment might result into affecting the business
operations and the pricing.

Location
The business will be located in Birmingham, UK which will involve both online and
offline boutiques for the cloths. This location is having a good competition and more
opportunity for getting success into the business.
Market/industry analysis
In order establish the business more successfully, it is highly recommended to
examine the market or the industry in which the business is to be established. So, for doing
this, Pestle analysis is carried out which will help in determining the feasibility of the
business idea.
Pestle analysis
Political factor
There is a political stability in UK, which has lead t bringing positive impact on
fashion industry. Before, Brexit, UK imports nearly £10 bn worth of clothes and shoes from
Europe but after Brexit if this trading relation is affected then it will result into making
fashion industry pay £1 bn more every year. The Booming boutique can take advantage of
this, by using domestic inputs which will help in reducing the cost.
Economic factors
The economic situation of the country is not good due to the only pandemic which
has affected the business and this resulted into badly affecting the clothing fashion industry in
UK. The change in the interest rates, purchasing power of consumers have resulted into
decline in the demand of expensive items (Kalaitzake, 2020). Thus, Booming boutique
requires take into consideration these aspects of the business which is having huge impact
over the business.
Social factors
In UK, people are fond of buying new clothing products as the fast fashion
dominates their buying habits. As per the report, people buy over 80% of clothes which they
never wear. This is favorable for the companies within this industry. Thus, this factor is
having less threat on the business.
Technology factor
It is difficult to do fashion business in UK and in order to better establish itself
requires implementing various latest technology which helps in making favorable customer
experience like the website, online shopping portal and so forth (PESTLE ANALYSIS. 2021).
Thus, addressing this can turn out to be favorable and less risky to the business.
Legal factors

There few critical nation’s rules and regulation which are set specifically for the
industry and the rules are very strict which has made companies to outsource their operations.
Thus, this factor is having huge impact over the new business.
Environment factors
As per the reports, the fashion industry releases nearly 10% of the greenhouse gases
and also consumes more energy which is not good for the industry. Therefore, the
government is putting lot of pressure on the fashion companies to undertake the responsibility
and implement environmentally friendly practices.
Product and service description
The Booming Boutique will be selling out fully customised clothing lines which are
designed by the experienced staff having prior experience into it. In addition to this, products
will be as per the changing trends and the preferences of the target customers. Along with
that, the products offered by Booming Boutique will be of different style and colour and
textures which fits to flatter the female Baby Boomer’s figure which is also main speciality.
In terms of categories of apparel, it will involve business clothing, casual wear, formal wear,
casual and ethnic will be the main staple and this will also include some of the accessories in
relation to it like the belt, scarves and hates.
USP and competitor analysis
One of the key features which separates the Booming Boutique from the other
clothing brand and the departmental stores is that its commitment to provide women of the
baby boom generation, the more quality clothing and stylish attire. The main concern of the
business is to ensure that the customers are happy with the designs, style and fit of their
purchases. In addition to this, it provides products which tailors to the need of the customers
of all shapes and sizes. Further addition to this, the business is making an effort to have petite
and plus size versions of their products within the stock and if they are not in stock ordering
them as soon as possible. Along with that, the business is not only selling clothes but it
provides clients the benefits from an experienced sales staff as one of the goals is to
implement a high-quality customer service system. it will also provide information and
advice on the fashion and trends. Another USP is that the trained personnel will provide
counsel to the women which is not provided at any other clothing stores including brands.
Particulars Booming Boutique The Oasis fashion
store
Disorder Boutique
Products It offers customized It offers wide variety It uses high quality

fashionable clothing
products to its customer.
of cloths which
includes men,
women, kids of all
ages. In addition to
this, it also provides
items for the various
occasions as well
(Hollensen, 2018).
of inputs which
helps it in designing
variety of clothes but
it also sells the
products of the other
brands as well.
Price It uses penetration pricing
style with the objective of
increasing the customer
base at the initial stage of
the business which might
change later on.
It uses competitive
pricing style which
results into grabbing
the customers of its
rivals by setting the
competitive prices.
It uses high price for
its products which
results into attracting
only the high class
and high income
group people.
Promotional
tools
Booming Boutique makes
uses of only social media
and blog post that helps to
attract wide range of
customers at the initial
stage.
It uses traditional
and modern form of
promotion which
includes television,
billboards, social
media, pamphlets
etc.
It involves using
heavy advertisement
which includes both
modern and
traditional
approaches of
promotion.
Operation plan
Operational plan is an actionable plan which define how a department or team's functions and
activities contributes to an organization's overall defined goal. That is why, Booming
boutique must design its operational plan that entails entire operation activities of a company.
Particulars Description
Organization
structure
The organization structure of a company is hierarchical in which all
departments are accountable for their respective roles. The skilled
employees will be hired in order to serve the best variety of clothes as per
analyzing the changing requirement of market. The employees must report
to their respective supervisor that helps to improve the overall

performance.
Quality control It is necessary to assure the quality of a product and for that different tools
and technique must be used like six sigma and lean production which
assist to minimize the wastage of a company (Waszkowski and Nowicki,
2020). Further, proper maintenance of quality check and auditing
assurance must be carry out within operations that helps to improve the
operational activities.
Supply chain
management
Quoted business will have smooth supply chain management that assist to
manage the demand of a customers and let people enjoy the service
offered by the company. Further, all the cloths must be supplied with
effective supply chain management system in order to increase customer
satisfaction.
Communication There must be a fluent internal communication channel used that assist to
meet the defined aim of a company. Also, written as well as oral
communication channel must be used that helps to meet the allotted task
within a day and improve business performance.
Risk and contingency plans
This section of current report gives data with respect to dangers that can be cause for
affecting the operation and performance of the business. These require higher thought while
creating marketable strategy to have huge information needed for understanding unexpected
conditions. It involves effectively determining the potential risk, degree of threat and the
ways for overcome it.
Risk Probability Preparation Response
(Contingency
plan)
Impact
Core equipment
failure
Low Periodic
maintenance and
repairs
Installing
backup plan
High
Financial risk Moderate Regularly
analyzing the
ways of
Regularly
carrying out the
market research
High

reducing the
cost and
possible selling
price to the
customers
(Campbell and
et.al., 2020).
which helps in
timely
identifying the
possible changes
in the market
conditions.
Liquidity risk High Ensuring
headway for
excess cash
flows
requirement as
in the initial
years of the
business there
are chances of
attaining the
situation of cash
crunch.
Diversifying
sources of funds
along with it,
investing into
various plans
which helps in
getting more
liquid funds as
and when
required
(Rodrigues,
2021).
High
Threat of
substitute
Low Introducing
unique
designing team
of professionals.
Continuous
market
evaluation for
getting insights
High
Quality of
cloths or
compliance risk
Low Higher
consideration to
quality
assurance
system and the
also the laws
and regulations.
This might also
impact the brand
image of the
In order to
minimize the
same, the
company should
be mandatorily
testing and
checking
practices for
quality practices
and inputs used.
High

business.
Strategic risk Moderate Inability to
understand the
changing market
pattern and the
trends might
result into
strategic failure
of the business
which results in
causing huge
risk for the
business
(Chang,
McAleer and
Wong, 2020).
It is highly
recommended to
the business to
carry out the
market research
and survey in
order to
determine the
changing needs
and perception
of the target
audience which
will help in
reducing the
level of strategic
risk.
High
Sales and marketing strategy
With the objective of effectively selling out and promoting the business, Booming
Boutique has formulated its marketing strategy through the way of using marketing mix
which are elaborated below.
Product: Booming Boutique will offer wide range of fashionable clothing which is being
designed in such a way which will offer number of benefits to its clients. The products are
specifically designed for meeting up with the changing needs of the customers which is not
actually offered by the other competitors or other clothing stores (Syapsan, 2019).
Price: The company will be using penetration pricing strategy which will help it in grabbing
the large number of customers towards its new products and services. This involves setting
the price lower during the initial offerings. It helps in new products and service penetrate the
market leading to attracting the customers from the competitors.
Place: The business will be operated in Birmingham in UK. This will help in providing
ample opportunity for the clothing business as there is a huge market for the same and the
level of interest or the habit people have in buying every new fashion trend and to remain
updated. This place will help in effectively attaining the desired aim and objectives.
Promotion: In terms of promotion, the business will be using both traditional and modern
approach for promoting the new business. It will involve television, pamphlets, press media,
billboard, social networking sites and the blog writing which will help in grabbing the
attention of the users from the all levels.

Process: The process followed by the company is very easy and flexible as if the customers
do not find something they desire then they can make it designed for them. The business is
having highly professional designers who can create a unique style dress as per the
specification of the customers. This results into ensuring that the customer leaves the
boutique with a perfect fit.
Physical evidence: In respect to the physical evidence, the physical store or the boutique is
the main proof. Apart from this, the logo, official webpage, social media pages are the other
relevant factors which can be considered as a proof of physical evidence.
People: The key people will involve the sales staff, designers, senior management, owners
and the investors.
Sales strategy
Booming Boutique intends to produce deals by means of key showcasing endeavors.
These concentrated endeavors will target new and returning clients along with single-visit
traveler purchasers. It will likewise carry out a reference program compensating clients who
allude new clients with discount coupons. Following the great opening, it will lead a post
office based mail mission to targeted buyers who have joined through the in-store mailing
program. The immediate mailers will comprise of 5,000 full-shading postcard mailers. Each
will incorporate a 10% coupon. It will offer special discounts and occasional and closeout
deal consistently.
Finance and funding plans
Projected Profit and Loss Statement
Particulars Year 1 Year 2
Sales
75000
0 900000
Direct cost of sales
40000
0 430000
Gross profit
35000
0 470000
Less: Expenses
Salaries
25000
0 300000
Sales and Marketing and Other Expenses 60000 60000
Depreciation 11424 11424
Utilities 9600 9600
Insurance 12000 12000
Rent 24000 24000
Payroll Taxes 45000 48975
Total Operating Expenses
41202
4 465999

Profit before interest and taxes -62024 4001
Interest expense 11917 10001
Taxes 17418 20050
Net profit -91359 -26050
Note: It is assumed that the sales will grow by 20% in the year 2 and in respect to expenses
only salaries amount will increase.
Projected cash flow
Particulars Year 1 Year 2
Cash Received
Cash from Operations
Cash Sales
60000
0
72000
0
Credit sales
15000
0
18000
0
Subtotal Cash from Operations
60000
0
72000
0
Cash paid
Salaries
25000
0
30000
0
Sales and Marketing and Other Expenses 60000 60000
Depreciation 11424 11424
Utilities 9600 9600
Insurance 12000 12000
Rent 24000 24000
Payroll Taxes 45000 48975
Long-term Liabilities Principal Repayment 19992 19992
Total expenditure
43201
6
48599
1
Net Cash Flow
16798
4
23400
9
Opening cash balance 0 67031
Closing Cash balance 67031
30104
0
Break-even point analysis
Particulars
Year
1
Year
2
Average percentage variable cost
40000
0
43000
0
Fixed cost
41202
4
46599
9
Sales
75000
0
90000
0
Contribution 35000 47000

0 0
Contribution margin (contribution/sales)
*100 47% 52%
BEP
88290
9
89233
9
Monthly revenue break-even point 73576 74362
Assumptions:
 Variable cost account for 53% and 47.7% of the sales base, which is equivalent to
cost of sales.
 Fixed cost is remaining cost which is 412024 and 465999 in year 1 and year 2
respectively.
Sources of funds
In light of the above extended fiscal report of Booming Boutique, it very well may
be expressed that the organization can utilize the debt source of financing as the obligation
along with the individual reserved funds (savings) in order to reduce the financial burden
pertaining to the interest payment (Gheribi and et.al., 2018). In regard to share capital, for the
initial two years it is not advisable t the business to go for it as it required good capital base
and the more recognizable business in order to attract the investment. Also, it will require to
pay dividend to the shareholder which is not possible in the initial two years. Therefore, the
business can look for acquiring the required funds through the way of personal savings and
borrowings from bank.
Management teams
In order to run Booming Boutique, management team must have an effective skill to
lead a team in an effective manner. Further, this skill includes critical thinking ability,
interpersonal skill, communication, leadership etc. Having such a basic skill will lead an
entire team effectually and manage this venture as well. The list of members working in a
quoted firm is as mentioned below:
Designation Number of
employee
Roles and responsibility
Owner 1 Owner of the company and CEO of a business who
oversees all the important decision of a company. Also,
monitor the performance of employee and suggest new
ways to take a business at further level of success.
Marketing and 1 The main role and responsibility of marketing manager is

sales manager to promote the business product and let people know about
the new offerings to their employees.
Finance
manager
1 The finance manager will identify the financial
performance of a company and also examine the overall
cash transaction that assist to determine the actual
performance (Zhao and Kim, 2021).
Employees 4 There are 4 employees within Booming Boutique who
always ready to support the customers and solve their
query as well. Further, they also maintain inventory and
improve the skills to support customers.
Cashier 1 Cashier will be accountable for payment and also maintain
the sales register that entail the frequent items sold by the
company. Also, collect the payments by accepting cash,
check and charge payments from customers.

REFERENCES
Books and Journals
Campbell, C., and et.al., 2020. From data to action: How marketers can leverage AI. Business
Horizons. 63(2). pp.227-243.
Chang, C. L., McAleer, M. and Wong, W. K., 2020. Risk and financial management of
COVID-19 in business, economics and finance.
Gheribi, E., and et.al., 2018. ANALYSIS OF FINANCING SOURCES FOR START-UP
COMPANIES. Management & Education/Upravlenie i Obrazovanie. 14(1).
Hollensen, S., 2018. Marketing management. Pearson UK.
Kalaitzake, M., 2020. Brexit for finance? Structural interdependence as a source of financial
political power within UK-EU withdrawal negotiations. Review of International
Political Economy. pp.1-26.
Rodrigues, A., 2021. From contingency planning in times of change and uncertainty to risk
control. International Journal of Advanced Engineering Research and Science. 8.
p.1.
Syapsan, S., 2019. The effect of service quality, innovation towards competitive advantages
and sustainable economic growth: Marketing mix strategy as mediating
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Waszkowski, R. and Nowicki, T., 2020. Efficiency investigation and optimization of contract
management business processes in a workwear rental and laundry service
company. Procedia Manufacturing. 44. pp.551-558.
Zhao, L. and Kim, K., 2021. Responding to the COVID-19 Pandemic: Practices and
strategies of the global clothing and Textile value chain. Clothing and Textiles
Research Journal. 39(2). pp.157-172.
Online
PESTLE ANALYSIS. 2021. [Online]. Available through:< https://pestleanalysis.com/what-is-
pestle-analysis/ >.
SWOT Analysis. 2021. [Online]. Available through:<
https://www.mindtools.com/pages/article/newTMC_05.htm>.