Detailed Business Plan: Launching a Dress Rental Service in the UK

This report presents a business plan for a dress rental service in the UK, focusing on sustainability and affordability in the fashion market. It includes an executive summary, business objectives, market information using Porter's Five Forces, financial analysis, an operational plan detailing sourcing and customization, and a growth strategy based on the Ansoff matrix. The plan emphasizes market penetration, product development, market development, and diversification to achieve competitive advantages. The legal status of the business is considered, along with potential issues impacting startups, such as funding and market changes. The report concludes that strategic decision-making and effective marketing are crucial for success in the competitive fashion industry. Desklib provides access to similar business plans and solved assignments for students and entrepreneurs.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
Executive summary.....................................................................................................................3
Business objective and description:.............................................................................................3
Market information......................................................................................................................4
Financial analysis.........................................................................................................................5
Operational plan.........................................................................................................................11
Strategy for growth....................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERNCES:................................................................................................................................14
Books and Journals:...................................................................................................................14

INTRODUCTION
The report aims to present a business case on a newly established business which is dress on rent.
A business is covered with full of uncertainty and market situations. There are a lot of factors
that needs to be consideration before establishment and make it successful. Market orientation
and business performance goes hand in hand which require timing of target markets, competition
and financial requirement for stop this report is going to present a business case by showing it
objective and market information. A new business has many market factors weather it is internal
or external (Finch2019). These factors somehow impact on the business functioning and
profitability. The more they will reach to potential customers the more company will easily make
growth into global market. The dresses on rent will establish into UK market to provide wedding
dresses on reasonable prices. There will be a discussion of growth Strategies and operational
plan which will help the company to get success in the nearby future.
MAIN BODY
TASK
Executive summary
The company dresses on rent will be established in UK in the main Street market. The
company will provide bridal and party wear dresses in order to meet with the changing demands
of customer towards fashion. As people do not want to spend many in dresses which are not get
in use after once. So for that instance, the company wants to provide dresses on rent within
reasonable prices and good quality products (Lämmle 2020). This concept is necessary in order
to slow down the fast fashion and fulfil customer demand to look good and change their style.
The company e will established their business through starting with producing own design in
clothing materials in order to be competitive into market. They will have you stock and sizes
available in to all the dresses so that no customer will left empty hand. Therefore, dresses on rent
will be a great business idea in the market where fashion becomes most vital need of all.
Business objective and description:
The company dresses on rent has its objective to drive sustainability into the fashion market. Due
to rise in New Trends and changes in to style, costumes and dresses, people are leading towards
wastage into industry which needs to be minimised. Providing dresses on rent, each customer

will get to wear the trending style in the affordable cost. The people need not to spend high
prices rated in fast fashion when they can have it on rented bases. The company will be a
partnership firm, in which there will be a lot of market situation may arise . the company may
suffer much competition in fashion industry (Xu2020). Therefore, the company will only deal in
party wear dresses which are not easily available into market in affordable prices. The main aim
of dresses on rent is to make best use of clothing for every person into society.
Market information
Porter's five forces
Porter's five forces model evaluates the five factors of business environment which help
company in growth. Unilever is a globally known multinational company of consumer products.
Porter's five forces of model is very effective way to identify the various competition which
affect the business on macro or micro level in its sector. Once the organization identifies the
factors which are affecting its operations then they can take respective measures to correct them.
This is very useful model in terms of evaluating the power and strength of business and it's
competitive factors as well. Porter's five model to evaluate whether the services and products
offered to customers are profit making of not. Porter's five forces of models in case of Dress on
rent are -
Competition in the industry –Dress on rent is newly established company of fashion industry
for products thus it has many opponents and competitors in market. Many big companies are
competitors of Dress on rent which may affect its business operations. This force can
strongly impact the sale of company. Competitors can attract customers by new ways of
marketing. Dress on rent this situation may have good impact by maintaining good quality
and relatable prices.

Bargaining power of buyer – Buyers of dress on rent will located all the UK but they don't
have power to bargain for the prices because the quality of product satisfies the demand of
majority of group (Rose, 2021). Company's profit depends on the customer so dress on rent
should maintain prices according to the demand of the customers.
Threat of substitutes - Research in consumer sector found that human behaviour wants to try
different and alternate products once. Many substitutes of products are manufactured in
market by different firms; this may change the preferences of the buyers because of the
marketing. This is the moderate factor because the price and quality of products will be
offered by Dress on rent has maintained its standard. People who use Dress on rent clothing
will think before switching from one firm to another.
Threat of new entrants – As Dress on rent will be located in geographical market, so many new
consumer goods companies can enter the market. This is very moderate force for the
company; it may affect the company because dress on rent may get affect by arrival of new
players due to fast fashion.
Supplier's power – Dress on rent has some suppliers from foreign market also which supplies
clothing in the industry and they are medium in size. They may not affect the operations of
Dresses on rent because it is well established in market (Grit,2019). Although, Dress on rent
will maintain good relation with its suppliers so that they provide raw materials on time
without bargaining.

Financial analysis

Operational plan
The operational plan is the important consideration of every business in order to carry out
each functional activity. Operation requires all the decisions related to how the product will be
came at warehouse and the procedure until it reach to the customers. The company dresses on
rent will source their product through foreign suppliers as a raw material and prepare their own
clothes at the warehouse. The dresses will be design as per trending styles and requirement of
customers. The company will provide customisation services and take order as per customer
needs. Also, the operations will be move each day of the week as dresses will be made in bulk
and to be provided on rent (Guzairy,Mohamad,Yunus,2018). Once all designs get made it
different sizes the customers can choose from it. The customer needs to return back the rented
dress within 2 days. Meanwhile common The Other customers good get the same design in other
sizes also. The company require all the accounting procedure and systematic records of
customers by taking their IDs and some advance to not indulge into any fraud activity.
Strategy for growth
Ansoff matrix – This could be explained as product/Market expansion grid which is used by
companies to analyse and plan their strategies for growth. This is important for each
organization conduct market research and determines which factors are useful for company
to develop business productivity and profitability (Šrámek2020). To grow a business
continuously and attaining competitive advantages there is need to focus on changing
environment and offer kind of products as well as services. Dress on rent is the new business
concept which is introduced for the purpose of providing designer dresses to their
customers. The Growth matrix in context to chosen new business is defined below:
Market penetration – This strategy relates to increasing sales of existing products to an
existing market. This can help to operate a business by offering existing products at lower
prices that influences number of customers. In relation to Dress on rent, management could
be use this strategy by running its existing business in market by reducing prices that helps
to encouraged people to make buying decisions (Ferreras-Garcia, Hernández-Lara. and
Serradell-López, 2019).

Product development – The main focus on product development strategy is to design new
products and services in existing market which influenced to number of customers and
develop organizational productivity (Khantirach, 2020). In relation to Dress on rent, product
development strategy could be adopted by individual where it needs to introduce new
designable dresses for their customers. This can help to operate a business effectively and
maintain higher performance in changing environment. A business entrepreneur should have
proper information about current trend and lifestyle which used to support a business and
maintain higher performance.
Market development – This strategy connected to development of market or entering into
new market that can help to add new customers and increase business performance. In this,
each organization looking towards a new market where it could sale its products and
services effectively. In relation to Dress on rent, could use this strategy by entering into new
market which can help to operate a business regularly.
Diversification - The planning is the combination of new market with the introduction of
new products that can help to grow a business continuously (Li,Qian, Chen,2019). This is
important for an organization to analysis the current market trends and introduces new
products and services into new market which can help to develop a business. In relation to
Dress on rent, could be use this strategy by introducing new dresses for all occasions
introduced in new market which can help to grow a business and attain higher performance.
From the above it has been analysed that Dress on rent should adopt diversification strategy
by offering new dresses such as bridal, party, and festivals in new market which can help to
operate a business continuously and attain higher performance. This could help to attain
competitive advantages and profitability in changing market.
Legal status of businesses – The entrepreneur get this concept by knowing that now a days
people is demanding designer dresses on rent which can help to operate a business
effectively. To start a business there is need to focus on legal status that explains structure
and position of a business (Götz, 2020). This involves Private Limited Company, Public
Company, Sole Proprietorship, One Person Company, Partnership, Limited Liability
Partnership (LLP).In relation to Dress on rent, sole proprietorship is the decided legal
status which would be start by an individual by analysing market, knowing current demand
and offering products (Xu, 2020).