BMIH5001 Entrepreneurship Module: Business Plan for SidAn Thrift Store

This business plan details the concept for SidAn Thrift Store, a venture focused on providing luxury apparel at affordable prices through a thrift store model. The plan outlines the mission statement, organizational structure, and the team's expertise. It includes a thorough market analysis, emphasizing the potential in the London market, along with a PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors. The marketing strategy encompasses product, price, place, and promotion, alongside a customer profile and SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Furthermore, the plan provides a financial overview, including start-up costs and funding sources, demonstrating a comprehensive approach to establishing and growing the business.

Business Plan for
Produced By
Student Name:
Student No:
Dated:
Module Name: Entrepreneurship
Module Code: BMIH5001
Lecturers Name: Neil Dyer
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CONTENTS
PAGE
1. Mission Statement 3
2. The Concept 3
3. The Team 3
4. The Market 4
5. The Marketing Strategy 5
6. SWOT Analysis 6-7
7. Finances and Start-Up Support 8
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1. Mission Statement
The mission statement of 'SidAn Thrift Store' is to provide luxury apparel at affordable prices
and to inspire customers to have refined shopping experience (Fibriyaningsih, 2019). The
store focuses on sustainable development and high customer satisfaction. It is dedicated to
provide the best available in market, best quality product.
2. The Concept
The “SidAn thrift store” is a unique concept entity,build for channelising clothes from reseller
to repurchaser. At this store, people who posses branded clothes which are in really condition
and comes from the original source. (Hervert-Escobar, and Alexandrov, 2018) Sale their
apparels to the store at a depreciated value which they bought. Merchandising these products
to the customer who are into branded clothes but enable to buy it due to high price. The store
will act as connecting link between seller and buyer. For the clothes owner who want to sell
the cloth Wil have to register themselves to the company's website. After they have registered
themselves they can put a picture of the clothes on the website. Next the store will check the
quality and price of the product and its worth. If the cloth passes the quality, it will be shown
in the display fort the purchaser. The purchaser can directly walk in to the store or contact
through online website of the business entity.
3. The Team
The store is going to follow decentralized system of directing and controlling. The business
owner is business graduate from N.Y.U, has 3year of experience in merchandising at Allen
Solly. The manager of the store is M.B.A from Stanford university , experience of about
1.5year in a social media marketing.
3.1 Business Owner
Joe Smith, Creative Director
Skills and Experience: Technical skills- Analytical, Marketing and Merchandising.
Interpersonal skill – motivation, leadership and entrepreneurship.
Experience: 3 year experience at Allen Solly.
Role and Responsibilities:
Directing, controlling and monitoring the whole business,Connecting to the business partners.
Employing the best human resources available. Working towards high quality customer
satisfaction.
3.2 Skills Gap & Strategic Alliances
The SidAn Thrift Store, is a currently a startup it has to make networks in order to idea to be
successful. It need a dedicated unit for customer services. This customer service unit should
be easily available so that seller and buyer can connect. (Malagapo,and Ediza, 2020)
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Collaboration with big clothing brands for stabilizing and income of the store. The store lacks
in quality checker because basically the owner and the manger both are business background
person. So there is need to be an advisor who could check if the clothes taken is original or
not. A trend analyser, basically a fashion industry expert who understands the fashion trends
and market
4. The Market
Based on the findings by extensive market research done through online survey and
interviews. (Manullang, 2020) Results shows that London's market is a profitable place for
setting up a thrift store. Rising trends and demands shows that targeted audience is in need of
such store. Once started the business will have lot off customer who are basically of age 18-
35, students and young adults who are working. The availability of cheap branded clothes is
quiet high in the environment.
4.1 Market Environment Considerations
PESTEL analysis is a sort of business strategy that is done by the business units for
examining and studying the Political, Economic, Technological, Environment and Legal
elements that influence the working of the business.(Marelja, 2020)
 Political Factors: The laws relating to the legal rights of workers and the child labour
laws are some of the political factors that can affect the business of the SidAn Thrift
Store. As the workers can raise issues on heir employers if any such laws are violated.
 Economic Factors: The economic factors such as the increase in labour cost and the
consumer disposable income highly affects the sales of thrift stores.
 Social Factors: The social factors relating to the social taboos or shame that some
section of customers from society relate to with wearing second hand clothing affect
the thrift store business.
 Technological Factors: The technological advancements that affect the business relate
to the sorting and handling of the bulk clothing commodities and making the business
available on online mediums for customers to shop with their own comfort.
 Environmental Factors: The fact that the clothes in the thrift store are sold for second
time shows that the clothes are being used for more shelf life and is leading to less
waste in the environment. Also the factors relating to reduction in plastic usage and
recyclable packaging are some of the important factors.
 Legal Factors: Some Factors such as custom regulations, tax implications on foreign
products and the laws relating to import of branded commodities are some of the
factors that influence the thrift store business.
4.2 Competition
Thrift store in London U.K., have quiet a popularity, such stores are in real demand in the
country (Nuić, 2021). The best thrift store existing in the country are Reign vintage,East End
Thrift Store, Annie's Vintage clothes and Retromania. The firms have to face a tough
competition from these stores. Although SidAn has unique way of promotion so that customer
attracts toward it. Also it has planned market strategy to collaborate with brands. That how
the store is going to stabilize itself in the market.
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5. The Marketing Strategy
In order to stand out in highly competitive market the firm have to make use various
marketing strategies such as:
 Offering the genuine product- placing the right product at the correct place would help
the firm to gain popularity and stabilization.
 Setting up fair price- the firm in the tarting have to keep the profit margin minimized
so that the targeted audience find it affordable .
 Highlighting products speciality- the product displayed should be communicated with
all the especial quality it holds.
5.1 Customer Profile
The key customer profile for the 'SidAn Thrift Store' business includes the section of
bargaining hunters who look pout for stores where they have the reach of finding some of the
branded products and they can bargain for the product prices. (Plan, Model, and Blog,
H.D.I., 2018) The section of customers who can not afford for the original branded clothe and
look out for second hand products of such brands are highly invested in the business of a thrift
store. Their basic behaviour is that of bargaining and habit of picking out on major branded
products available in second hand. Hence guarantee success for such business plan of a thrift
store. The customer demographics of the thrift store business on the basis of customer income
is the low level and the middle level of income groups. On the basis of the family size, thrift
stores are mostly visited by nuclear families and the smaller family of even just married
couples.
5.2 The Marketing Mix
5.2.1 Price
The prices of the 'SidAn Thrift Store' are very affordable when compared to the actual pricing
or the similar pricing of the same quality or brand of products. Although the items are second
hand, the products sold are some of the most luxury and branded products from the apparel
business and hence justify for their prices (Prekslavec,2019). The store does provides the
customers with a wide variety of options at low to middle level of prices and hence aim to
capture a large share of the thrift markets in next 5 years from now. The prices are affordable
to the bargainers and profitable to the store resulting in long term growth planning for the
store.
5.2.2 Product
The garments and apparels of 'SidAn Thrift Store' are versatile, luxurious and branded. Most
of the designs available on the store websites are trending and in demand from a lot of people
who hut for such second hand thrift stores(Sułkowski, 2018). The clothes available with
SidAn are highly demanded from a large section of society who relate to the thrift store's aim
of providing luxury clothing at affordable prices. The store also has decided on to explore the
market area and options to bring back even some of the vintage pieces in the market to all the
customers who still want to have their hands on vintage clothing items.
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5.2.3 Place
The garments and clothing products of 'SidAn Thrift Store' are aimed to be sold at two
physical stores in London, UK. The target behind starting with selling of the products at two
places in on ego is due to the aim of the store of expanding and growing on a faster pace and
hence starting with two physical stores. The store also has its own online website where the
clothes are sold for reaching a bigger mass of audience and reaching larger section of people.
The website will help the store to generate more orders in the longer run. The products are
delivered on two days prior delivery basis which explains that the products ordered are
delivered after proper consecutive conformation for two days.
5.2.4 Promotion
The promotional strategies of 'SidAn Thrift Store' includes website promotions with various
discounts and promo codes available to each customer that crease their Id and log in on the
stores website. The store also has decided upon some locations which will be assisting it in
their promotional strategies by forming a campaign to reach to a wider audience. The store
also has created social media accounts and have aimed to utilise that as an opportunity to
reach and get known by a wider base of customers.
6. SWOT Analysis
Strengths
 Huge varieties of merchandise
available.
 Price affordability as compared to
the original prices.
 Varieties of incentives available for a
second time shopping.
Weaknesses
 Less margin for products buy and
sell.
 Issues of Quality compromise.
 Long hours for sorting up with huge
pile of stock.
Opportunities
 Target customer opportunity for
vintage collectors.
 The bargaining hunt customer
section.
 Experiment with the varieties and
brands available.
Threats
 Failure in monitoring the industry
competition.
 Theft of the physical stock of items.
 Inability to acquire the product stock
in time.
6.1 SWOT Summary
From the overall swot analysis it can be summarised that the 'SidAn Thrift Store' is having
some major business advantages and opportunities to grab and scale them to a higher level
for the growth of the business (Vurro and Perrini, 2018). The advantages of price
affordability and the varieties available at the store are some of the advantages that the
business has decided to maximise at its best. The threats in relation to the theft of physical
stock and failure of obtaining the stock at the right time are some of the threats that the store
has to work on when deciding to minimising these risks and weaknesses. It also has to work
on reducing the weaknesses it has with respect to the product quality and the time needed to
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sort out the stock available in the store. As if these issues are not treated and minimised in the
right time, it can impact major business working and profits in the future business dealings.
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7. Finances and Start-Up Support
From all the market analysis and after all the funding options are researched, the estimates
have been following. The store needs finances of £75000. In this amount, £15000 will be
through crowdfunding, £30000 from the owner's sole funding and £30000 will be through
small business credit loans. The finance of the thrift store have been decided to be repaid after
the store completes 3 quarters of continuous profit margin of £15000 per month for total of 9
months. The store will first cover for the repayment of credit loan with £3000 per instalment
for next 10 months. The owners and the team sees a growth in the profits of the store after a
period of 1 year is completed.
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REFERENCES
Books and Journals
Fibriyaningsih, I., 2019. Business Plan Pembuatan Sling Bag dari Limbak Batok Siwalan
Kombinasi Kulit Nabati di Kabupaten Rembang Jawa Tengah (Doctoral dissertation,
Politeknik ATK Yogyakarta).
Hervert-Escobar, L. and Alexandrov, V., 2018. Territorial design optimization for business
sales plan. Journal of Computational and Applied Mathematics, 340.pp.501-507.
Malagapo, E.P. and Ediza, C.T., 2020. A Business Development Plan for The Establishment
of Filipino International School Overseas in Al Ain, Abu Dhabi, UAE. Middle
Eastern Journal of Development Management, 2(1).pp.1-1.
Manullang, S.O., 2020. Identification of Newspaper Concerns about the Adaptation Plan for
Business Strategies Entering New Normal Era in Indonesia. International Journal of
Business, Economics and Management, 3(1), pp.203-211.
Marelja, M., 2020. POSLOVNI PLAN NA PRIMJERU SPECIJALIZIRANE
POLJOPRIVREDNE LJEKARNE (Doctoral dissertation, University of Zagreb.
Faculty of Economics and Business. Department of Trade and International
Business).
Nuić, A., 2021. POSLOVNI PLAN: SPECIJALIZIRANA PRODAVAONICA „HiStore
“ (Doctoral dissertation, University of Split. Faculty of economics Split).
Plan, B.C., Model, T.L. and Blog, H.D.I., 2018. Ethical management.
Prekslavec, M., 2019. POSLOVNI PLAN UGOSTITELJSKOG OBJEKTA (Doctoral
dissertation, Zagreb School of Business).
Sułkowski, K.K., 2018. The business plan of football tournments dedicated to sport amateurs
in Poland (Doctoral dissertation, Katedra Finansów i Systemów Finansowych).
Vurro, C. and Perrini, F., 2018. Social business plan simulation: The case of Dynamo Camp.
In The Italian Model of Management (pp. 83-102). Routledge.
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