Dress Pro: A Comprehensive Business Plan for a Clothing Rental Startup

This document presents a comprehensive business plan for Dress Pro, a clothing rental application designed to offer consumers a sustainable alternative to fast fashion by enabling them to rent or purchase second-hand clothing and fashion items. The plan includes a market analysis indicating a substantial growth potential in the second-hand fashion market, an organizational structure based on a sole proprietorship with a functional organizational structure and a democratic management style, and details about the goods and services offered, focusing on connecting buyers and sellers through an online platform. The marketing strategy emphasizes digital channels and selective distribution, with a pricing model based on transaction fees and premium memberships. Financial projections, including payback period calculations and profit and loss statements, are provided, along with a competitor's analysis using Porter's Five Forces to assess the competitive landscape. The business strategy explores cost leadership, differentiation, and focus strategies to achieve growth and competitive advantage. The business plan aims to provide a sustainable fashion rental platform which can be used by the masses.

Business Plan
and Analysis
1

2

INTRODUCTION
Building an enterprise is a challenging task as it involves conducting various activities
and looking over functional areas of the company to ensure that the firm is moving towards right
direction. This report includes a business plan for new start-up. The business plan includes
various areas such as marketing and financial projects of the company. Competitive analysis,
operations plan, identification of risk and financial feasibility of the company are included in this
report. In addition to this, a critique of the business plan is also provided in this report from the
point of view of an investor. Finally, recommendations which can help enhance the business
bank are also included.
MAIN BODY
Business Plan
Executive Summary
Dress Pro will be offering consumers a platform to rent or why would you inspiration
items along with normal items. This will act as a sustainable option to fast fashion and enable
consumers to which is a very special items at an affordable rate. In addition to this, several
features will be added for premium users of the application which will enable consumers to gain
extra advantage such as guidance and personalization. The motion from digital channels as it will
help the company interact with the target audience and gain consumer data.
Company Description
Dress Pro is a clothing rental app which enables consumers to rent and buy second hand
clothing and fashion products including luxurious clothes and normal brand clothes. Dress global
emergence as table option to fast fashion as the company will enable consumers to recycle
products and fashion items which involves high quality works as well as normal daily use
brands. Setting up an account on the application will be free for consumers and the main income
source of the company will be taking transaction fee from consumer and seller when they
purchase or rent a product listed on the platform. In addition to this, a premium fee will also be
deducted in order to gain additional features such as personalization or building communities.
Market Analysis
Currently the second-hand fashion market is worth £26 billion and the market is
projected to double in the next five years reaching £55 billion. In UK 67 percent consider the use
3

of sustainable materials to be an important purchasing factor, and 63 percent consider a brand’s
promotion of sustainability in the same way (Second-hand Fashion Market is Expected to Be
More Than Double the Size of Fast Fashion by 2030, 2021).
Organization and management
The legal structure for Dress Pro, with a sole proprietorship as it will help the company
ensure total control of previous functions and take the company in the right direction. Sole
Proprietorship is a suitable legal structure as it does not require much legal paperwork and gives
complete profit to the owner. The organisational structure selected for that form is functional
organisational structure. This is a suitable organizational structure as it helps the form increase
specialisation in the company and ensure that each activity is conducted in a high-quality
manner. Finally, the management style adopted that democratic management style. This is
suitable management style as it enhances employee morale and improve their participation in
company activities so that innovation culture can be created in the company.
Goods and services
Dress Pro will connect buyers and sellers on online platform to rent or sell second hand
fashion items and gain transaction fees upon completing a purchase or sale thorough the
platform. In order to discourage meeting between buyers and sellers outside the platform, their
contact information will not be shown in the platform and buyers will negotiate with the sellers
by sending one sided messages to quote their price. Dress. Prove it enables buyers to gain
sustainable products, including leisurely fashion products, easily and affordably. In addition to
this, the community informed on the application which enables them viewers to rate sellers and
enables sellers to let consumers on the quality of products returned after renting.
This type of rating and community formation will reduce the cases of fraud by consumers
for sellers on the platform and will help consumers gain their fashion products at affordable
rates. The consumers will be able to use application official website the company to place orders
and interact with buyers. The basic membership cost you using the application or any other
digital channels of the company will be seen with the transaction cost of 20 per cent on every
sale or purchase conducted on the platform.
Marketing
 Product: Dress Pro will be offering consumers a platform to sell or purchase second hand
products. In addition to this the users will also be offered premium membership of the
4

services which will provide both buyers and sellers special privileges. The buyers will be
able to rate sellers on the basis of the quality of their rented or sold products and the users
will also be able to gain guidance from the company on how to effectively market their
products on the platform.
 Price: Consumers will be priced on each and every transaction conducted through the
app, including sale of a product or purchase a product. This will amount to 20 per cent of
their overall transaction. This is an affordable price stage as consumers will be able to
gain Luxury fashion items, but an affordable range. This type of pricing strategy will help
the company attract many things in lesson being competent advantage.
 Place: Selective distribution strategy will be adopted by Dress Pro in order to attract
consumers involves only setting the platform for company website or official application
of the company. Dress Pro will also be able to improve personalization through selective
distribution strategy.
 Promotion: Digital marketing channels will be used for reaching the target audience and
creating a credible brand image. The usage of digital marketing channels such as social
media and email marketing is suitable for interacting with different consumer segments
because it offers cost-effective measures for reaching and interacting with businesses,
medical professionals or consumers to sell products.
Financial Projections
Calculation of Payback Period
Year Total flow of the project Cumulative flow
0 -100000 0
1 20000 -80000
2 15000 -65000
3 25000 -40000
4 60000 20000
5 45000 65000
Profit and Loss Statement
5

Cash Flow
Competitor’s Analysis
Porter’s Five Forces Analysis
6

The usage of Porter's five forces analysis tool helps businesses determine the level of
competitiveness and examine the overall competitive landscape of the company.
 Competitive Rivalry: This part of the analytical tool focuses on the level of competition
in the district reached by an organisation. In context of Dress Pro, The level of
competitive rivalry in the rental fashion industry is moderate. The reason for moderate
competitive liability in the rental fashion industry is that it is a newly formed industry,
and many businesses in the sector are not offering a wide range of features and services
to the consumers at the same time. Dress pro will be able to gain competitive advantage
over other competitors such as rent the runway and Nully because the company offers
additional features. Dress Pro also enables community building which connects
consumers with their preferred seller and enhance consumer experience while suing the
services of Dress Pro. Bargaining Power of the consumers: The influence of consumers on the prices of the
product is determined with the help of this element of Porter’s five forces analysis. the
bargaining power of the consumers for Dress Pro is low. The primary reason for low
bargaining power of the consumers in context of the rental fashion industry is that not
many businesses offer printed fashion services to the consumers which lowers the options
for consumers to rent luxury fashion products. Dress Pro will be able to gain competitive
advantage because of low bargaining power by providing affordable services in
comparison to rival businesses in the industry and attracting large number of consumers. Bargaining power of the suppliers: The degree to which suppliers can influence price of
the product by manipulating raw materials offered to the companies is determined with
the help of bargaining powers of suppliers. Dress Pro faces low bargaining power of
suppliers as the suppliers in case of the company at the sellers who rent their luxurious
fashion products through the platform. This reduces power of suppliers as there are
limited platforms which support fashion rentals. Dress Pro will be able to attain higher
profitability because of low bargaining power of suppliers as the company will be able to
attract as many sellers and upper consumers affordable renting options. This would
increase transactions on their digital channels of the complaint and provide the company
high profits.
7

 Threat of new entrants: The ease with which new entrants are able to hinder the business
of established players in an industry is defined in this element of porters 5 forces analysis.
The third of new entrants in context of fashion rental industry is high. The reason for high
threat of new entrants is that there are no heavy requirements for entering this industry
such as struct regulations and legislations and financial investment. The additional
features offered by Dress pro to attract consumers, such as the ability to form
communities on application and other digital channels and interact with sellers and
renters easily will help the firm gain competitive edge over new entrants and reduce the
negative impact of easy entry in the industry. Threat of substitution: The final element of Porter's 5 forces analysis looks at the ability
of a product to fulfil consumers demand similarly and act as a substitute. the level of
substitution in the rental fashion industry is low. This is because of lack of perfect
substitute which can act as rental platform bought luxury fashion products. Effective
marketing will help Dress Pro exploit the lack of substitution in the industry, retain
consumers and develop a loyal consumer base..
Business Strategy
Porter’s Generic Strategies
Porter’s generic strategy model can be used by business firms to identify suitable strategy
needed for attaining growth and achieving business objectives. The application of portraits,
generic strategies in context of the Dress Pro is provided below:
Cost Leadership
Lowering business costs and offering consumers products at affordable prices in comparison to
other businesses helps the company adopt cost leadership structures. Businesses are able to offer
the consumers quality products at low prices with reduced cost of correction through the help of
this strategy and gain high profit margins. This enables the company to attract large consumer
base as the forms of in quality products at low rate. Dress Pro will be able to gain competitive
advantage over other forms and philtre oil consumer ways through the adoption of cost
leadership strategy. The company needs to keep the basic transactions reasonable. The services
of the or acquiring luxurious fashion products.
Differentiation
8

This strategy focuses on developing innovative features in the product so that it helps solve and
remove problems in a unique corner and provides the company a distinguished brand image. In
context of Dress Pro the usage of differentiated strategy can help the organisation stand out from
competitors and become the suitable choice for consumers by offering them specific innovative
solutions to their clothing renting problems. Dress Pro need to invest in so that each user,
including consumers and sellers are able to gain better experience while using digital channels of
the company. Dress Pro will be able to gain advantage of distinguished brand image and loyal
customer base with the help of differentiation strategy.
Focus
The fire, the final business strategy, focuses on developing, marketing and selling products to
nature market, which can be a type of consumer product line or geographical area. There are two
options to adopt focus strategy, which includes cost focus and differentiation focus. Cost focus
strategy involves offering niche target audience products at lower price while also reducing the
operational costs. Differentiation focus involves developing limited products for a niche target
audience target audience. The usage of strategy for a specific niche target market can help the
Dress Pro gain leadership position in the target audience.
From the above discussion, it is determined that cost leadership strategy is suitable for
Dress Pro as it helps the company reach target demographic and attract loyal consumers in
comparison to competitors. The usage of cost leadership strategy will help with respective
organisation construct a loyal consumer base in this mainly formed industry to establish itself as
a leader and gain continuous growth in the UK market as well as international market
Operations Plan
Executive Summary
This operations plan is created for the company Dress Pro, which offers consumers
options to rent, clothing and accessories from digital channels. Will be able to rent clothing or
accessory products through online channels and form communities through which we can find
renting options for branded or luxurious fashion product. This operational plan covers the
logistical requirements along with the key performance indicators, which will help the company
ensure effective operations management.
Mission
9

The mission of the company is to “to offer affordable fashion solution to every consumer
in the world.”
Vision
The vision of the company is to “make high fashion products affordable and available to
every consumer”
Objectives
To increase efficiency by 15% in next year.
To raise sales targets for next several months.
To improve scheduling within the company
Logistics
Dress pro will be using the Images of delivery companies in order to deliver the rented
products to consumers. This is a suitable decision as it will help the company focus on the
technological aspects of the services and leave the delivery work to professionals. Users of the
dress pro application will be able to gain their rented products quickly, which will enhance the
popularity of the firm and help the company retain users.
Marketing
Key performance Indicators
Key performance indicators will be utilised to understand quality of operation
management at Dress Pro. The key performance in used at the respective company for operations
management will be focusing on digital implementation and consumer retention. This includes
the usage of key performance indicators such as retention, return route, monthly active users,
daily active users, daily sessions for daily active users, and every session length. The usage of
such key performance indicators at will help the organisation understand the ways consumers are
reacting to application and which aspects of the application are increasing consumer retention.
This will support better monitoring of consumers as Dress Pro is primarily a digital organisation
and will also help the firm take action to improve consumer service so that they utilize the
application for longer time period.
Financial Summary
Calculation of Payback Period
Year Total flow of the project Cumulative flow
10

0 -100000 0
1 20000 -80000
2 15000 -65000
3 25000 -40000
4 60000 20000
5 45000 65000
Profit and Loss Statement
Cash Flow
11

Hiring Plan
Digital channels will be used to attract and retain talented consumers at every department
of the company. In addition to this, rigorous interview process will be conducted to higher
technological experts and software engineers at the Dress Pro. This is a suitable hiring plan as it
will help the respective organisation build attended work post created in order to provide
consumers best experience and support continuous growth of the company.
Key assumptions and risk
The key assumption of operational plan of Dress Pro Is definitely distich user experience
design and visual design will help users easily navigate the application and website of the
company to find and rent products. The main risk associated with Operation plan of dress pro is
that the company will not be able to retain users as consumers or sellers for long period of time,
which can affect the profitability of the organisation.
Risk Analysis
Risk register
ID Category Description Root cause Severity Risk Owner
1 Client Dissatisfactory user
experience and lack of
personalization to enhance
Inability to identify
suitable audience
High App
development
12