Elegant Fashion & Accessories: Comprehensive Business Plan Project

This business plan outlines the strategy for Elegant Fashion & Accessories, a new fashion retail business located in Birmingham, offering a range of accessories and gift items to a target market aged 15-35. The plan includes an executive summary detailing the business mission, location, product description, external analysis, target customers, SWOT analysis, objectives, and key action plan. It also presents a financial plan with financial requirements, forecasts, and assumptions, including sales projections, income statements, and cash flow statements. The business aims to attract customers by offering unique designs and traditional jewelry, leveraging both internal and external funding. The plan addresses competition, market trends, and online retail strategies. The plan also covers management team and financial projections, including start-up capital, costs, and sales forecasts. The business aims to achieve sales growth, expand online, and maintain profitability by establishing joint ventures and implementing a comprehensive marketing strategy.

Entrepreneurship Business Plan:
Elegant Fashion & Accessories

TABLE OF CONTENTS
Part 1: Executive summary..............................................................................................................1
Business mission..........................................................................................................................1
Location.......................................................................................................................................1
Description of Products...............................................................................................................2
External Analysis.........................................................................................................................3
Target customers..........................................................................................................................4
Competition.................................................................................................................................5
SWOT analysis............................................................................................................................5
Objectives....................................................................................................................................6
Key action plan for next 12 months.............................................................................................6
Management team........................................................................................................................6
Part 2: Financial plan.......................................................................................................................6
Financial requirements & forecasts.............................................................................................7
Financial needs............................................................................................................................7
Reference.........................................................................................................................................9
Appendix........................................................................................................................................10

INDEX OF TABLES
Table 1: Sales forecast...................................................................................................................13
Table 2: Income statements...........................................................................................................13
Table 3: Cash Flow statements......................................................................................................13
ILLUSTRATION INDEX
Illustration 1: Location of store........................................................................................................5
Illustration 2: Products of new business .........................................................................................6

PART 1: EXECUTIVE SUMMARY
Elegant Fashion & Accessories is a new organization which is dealing in wide range of
fashion accessories from a shopping centre in Birmingham. This business is offering a wide
range of elegant fashion accessories and other antic and traditional gift items or jewellery to both
male and female consumers, who are between the age group of 15 to 35 years. In order to attract
young age customers, business entity will offer wide range of custom and antic jewellery as well
as other decorative products that would increase overall revenue and income of organization. For
attainment of different business objectives, owner of the business are raising funds from both
internal and external sources.
Business mission
The primary objective of the owner of Elegant Fashion & Accessories is to provide a
variety of fashion accessories with unique design to both male and female consumes within good
price (Hiduke and Ryan, 2013). In addition to that, owner also develops various strategies for
acquisition of traditional jewel products from all over the world so the consumers will be able to
make their appearance more attractive.
Objective
 To provide best fashion accessories to both male and female consumers.
 To offer a variety of antic or custom jewellery and other fashion supplements.
 To increase profitability by attracting large number of people who are living in London.
Location
As per the requirement of business, Bullring Shopping Centre has been selected for
opening an outlet of business. This place is located in central part of Birmingham so as the owner
will be able to assess good response from the consumers. Furthermore, there are various other
shopping destinations situated near this place, where top brands in clothing industry are
managing different business operation. It supports the company for ensuring quick access from
consumers.
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Description of Products
The owner of the business is offering wide range of accessories for both male and
female consumers. For this, business entity has developed an attractive collection of distinct
product range that is acquired from different parts of the world. It includes traditional and
antic jewellery as well as other products.
Type of products Product range
Accessories bag, handbag, purse, clutch, briefcase, wallet, pocketbook, billfold, purse,
coin purse, make-up kit, cosmetic case, shaving kit, travel kit, travel bag,
duffel bag, sports bag, backpack, rucksack, tote bag, hand luggage, belt,
suspenders, straps, umbrella, button, zipper, buckle, clasp, hat, fur hat,
beret, cap, hood, headband, scarf, kerchief, silk scarf, woolen scarf,
knitted scarf, muffler, handkerchief, sunglasses, glasses, tie, silk tie, bow
tie
Shoes winter boots, ladies' boots, walking shoes, Oxfords, loafers, moccasins,
pumps, evening shoes, patent leather shoes, suede shoes, high-heel shoes,
low-heel shoes, flat-heel shoes, sandals, open-toe shoes,
Jewellery gold ring, diamond ring, engagement ring, wedding ring, necklace,
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Illustration 1: Location of store

bracelet, brooch, earrings, chain, pendant, charms, cuff links, tie tack, tie
pin, watch, wristwatch, jewellery, precious stone, semiprecious stone,
jewel, gem, gemstone
Gift article Wall paintings, antic decorative items, unique articles,
External Analysis
The selection of fashion accessories business will provide significant benefits to owner of
the company. This is because substantial growth is addressed in UK fashion industry. Therefore,
the demand of fashion accessories has significantly increased within last two years. In this
regard, it has been evaluated that the direct value of the UK fashion industry to the UK economy
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Illustration 2: Products of new business

is £26 billion in 2014 that has been significantly heightened up from £21 billion in 2009 which is
showing an increase of 22% in nominal terms (Facts and Figures about the Fashion Industry,
2015). In addition to that it has been evaluated that £27billion (£27,051billion) worth of women
wear sales has been evaluated for the year of 2015 that was raised by 4% rise from £26billion
(£25,950billion) in 2014. It plays important role in order to generate demand of clothing
supplements. Furthermore, it is examined that £10.3billion worth of sales of man's and woman's
footwear has been recorded in 2015 which is increased by 6.5% from £9.4.
Other statics have determined some significant changes in shopping trends of people. In
this context, it has been found that 67% of women have purchased clothes and other fashion
products from online stores in 2015. Furthermore, there has been a shift in shopping behaviour
among the young age consumers who are associated with 16-24 years (London Fashion Week &
British Fashion Industry Facts & Figures, 2015). It has been identified as 80% of young age
people are now purchasing clothes from online stores in 2015.
In addition to that, it has been found that 17% growth of online footwear sales is addressed.
As per the above assessment, owner of the Elegant Fashion & Accessories has to develop
strategies for managing competition with online retail stores. It also supports owner for
expansion of business in online marketplaces so as the company will be able to sell different
products and fashion accessories through online channels.
Target customers
The owner of the business has focused on young age college going consumers who are
always experimenting with their looks and appearance. In addition to that, business entity has
also focused on young age professionals to generate good sales by offering high end fashion
accessories and gifts.
 College Age Inhabitants: In general, college students always tires wide range of fashion
and other accessories in order to present themselves in a distinct ways (Myers, 2013).
Thus, Elegant Fashion and Accessories will offer a variety of fashion accessories in the
form of shoes, jewellery and other precious stones as well as cloth to both male and
female consumers. Organization is also offering jewellery products that are having
traditional looks and designs.
 Young professionals: London is considered as the corporate hub, thus there are several
young professionals working in London, so as Elegant Fashion and Accessories is going
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to offer wide range of unique and creative gift items along with decorative products
through which young business can give a special appearance to their workplaces and
houses (Sahlman, 2008). With the help of traditional and antic material which have been
collected from all over the world, owner of Elegant Fashion & Accessories will be able to
attract young age professionals.
Competition
The owner of Elegant Fashion & Accessories is going to open a new shop in a shopping
center of Birmingham. The new business is offering wide range of fashion accessories for both
male and female client. As per the detail market research, it has found that there is only one
competitor which is already offering women fashion stuff only. The name of the shop is Claires
Accessories (Chen, Yao and Kotha, 2009). Therefore, it can be stated that Elegant Fashion &
Accessories will assess competitive edge over other organization because competitor
organization is only dealing in women fashion products. But, Elegant Fashion & Accessories is
focusing on the both male and female clients so as owner would be able to assess various cross
selling opportunities that plays important role in order to increase overall profitability and
revenue of business entity.
SWOT analysis Strength: Elegant Fashion & Accessories is offering wide range of fashion accessories
such as shoes, handbags, jewelry etc. for both male and female of consumers. In addition
to that the location of store is also providing an opportunity to increase sales of firm
quickly. All these elements are considered major strengths of the company. Weakness: The primary objective of company is provided traditional and antic fashion
accessories to wide range of consumers (Karlsson and Honig, 2009). But, owner will face
several issues for maintaining an appropriate product range which is associated with from
different part of world. Opportunities: The emergence of online retail market and shopping sites also provides
platforms to owner of Elegant Fashion & Accessories to sale product through different
online channels.
 Threats: New start-ups in similar business within same shopping centre will reduce the
sales of organization so as management has to ensure uniqueness and creativity while
offering an appropriate product range.
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Objectives
For ensuring growth and expansion of business in next 5 years, some objectives are
prepared by owner of Elegant Fashion & Accessories. Some most important objectives are
mentioned below:
 To ensure sales growth of 30% annually after two years.
 To expand the business toward online platforms in next year
 To open two or more retail outlets of organization in another part of London
 To maintain minimum profit margin of 20% in all year
 To establish joint ventures with other companies and suppliers for ensuring uninterrupted
supply of different products
Key action plan for next 12 months
The success of new business is greatly depending on a key action plan which is
developed by owner of Elegant Fashion & Accessories for next 12 months.
 The primary objective of new start up is to increase awareness’s of new company or
organization along with its products among target consumers. Therefore, Elegant Fashion
& Accessories is required to adopt an aggressive marketing strategy with a combination
of digital and traditional marketing tools to attract young consumers (Chen, Yao and
Kotha, 2009).
 Business entity will pay extra attention on identification of new suppliers along with
development of long term relationship with other suppliers to increase product range. It
will support owner in the process of cost control.
 New start up should have to introduce business with a distinct promotional plan that
results increase in attractiveness of business.
Management team
All the operations of business are mainly maintained by owner and one supporting staff.
They will manage all the functions associated with store opening, customer handling,
purchasing, marketing etc. All kinds of major decision are taken by the owner of Elegant Fashion
& Accessories related to pricing, discount, marketing etc.
PART 2: FINANCIAL PLAN
In general, financial projections are based on the present condition of the industry along
with present market trends, Herein; sole proprietor is planning to enter in fashion industry by
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opening an outlet of fashion accessories. Different aspects of business financial plan are
mentioned below:
Financial requirements & forecasts
The start-up capital for initiating new Elegant Fashion & Accessories venture is £150000.
In this context, owner of the organization has to consider both internal and external sources of
finance. In this regard, £75000 owner’s capital and £75000 has been generated through bank loan
at three years repayment terms at 7.70% rate of interest. This approach helps owner of the
business for managing the liability of owner. Furthermore, it is analyzed that the total costs of
pre-operating year is estimated at £160000 so as new business will initiate its new year with
negative opening balance of -£10000. But, business entity will generate appropriate profit in next
two years that could be near 15 to 20%.
Assumption:
 Increased sales by 25% per annum.
 Shop will be open for 25 day in a month.
 Monthly rent is decided for two years at 5% of total revenue.
 Maintenance and service fee is 5%.
 COGS assumed at 30%.
 Legal and permit fee £15000.
 Salary increment 10% per annum.
 Utilities expenditures are increased by 10% per annum.
 Stationary increased by 15% per annum.
 Miscellaneous expenditure could be decreased by 5%.
 Promotional and marketing expenditure for the first year is very high than it will
increases with 10% rate yearly
 Bank loan of 75000 as per three years instalments will be acquired at 7.70% rate from
bank.
 5% of cash sales will be deducted in the form of payment of tax in each year
 Depreciation on fixed assets of £40000 will be calculated at 10% with straight line
method that is £4000.
Financial needs
Sources of finance:
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There are several sources of finance available to owner of new business for starting new
business. As per the need of different business requirements, owners capital and bank loan are
considered by the owner of Elegant Fashion & Accessories. In order to meet requirement of
funds, owner is investing 50% of total investment of new business start up. On the other hand,
50% of total investment is acquired through bank loan. This is because bank loan is identified as
the most reliable source of finance for meeting requirement of fund within small scale businesses
and owner will be able to repay the funds in the form of easy monthly instalments.
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REFERENCE
Books and journals
Chen, X. P., Yao, X. and Kotha, S., 2009. Entrepreneur passion and preparedness in business
plan presentations: a persuasion analysis of venture capitalists' funding decisions. Academy
of Management Journal. 52(1).pp.199-214.
Hiduke, G. and Ryan, J., 2013. Small Business: An Entrepreneur's Business Plan. 3rd ed.
Cengage Learning.
Karlsson, T. and Honig, B., 2009. Judging a business by its cover: An institutional perspective
on new ventures and the business plan. Journal of Business Venturing.24(1). pp.27-45.
London Fashion Week & British Fashion Industry Facts & Figures. 2015. [Online]. Available
through: <http://www.londonfashionweek.co.uk/news_detail.aspx?ID=750>. [Accessed on
14th January 2015].
Myers, M. D., 2013. Qualitative research in business and management. Sage.
Sahlman, W.A., 2008. How to write a great business plan. Harvard Business Press.
Online
Facts and Figures about the Fashion Industry. 2015. [Online]. Available through:
<https://www.fashionunited.co.uk/facts-and-figures-in-the-uk-fashion-industry>.
[Accessed on 14th January 2015].
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