Innovation and Entrepreneurship Project: Rose Petals Business Plan

This project presents a comprehensive business plan for Rose Petals, a retail store specializing in kids' clothing. The plan outlines the business structure, registration details, location, and organizational chart. It details the products and services offered, emphasizing innovation through the use of a special cotton fiber. The market analysis includes target demographics, marketing strategies, and an environmental and industry analysis. A SWOT analysis and competitor analysis are also provided. The plan further defines the company's vision, mission, goals, and action plan. The financial section includes key objectives, assumptions, start-up costs, balance sheet forecasts, profit and loss forecasts, expected cash flow, and break-even analysis. Risk management strategies and legal considerations are also addressed, providing a thorough overview of the proposed business venture.

Running head: INNOVATION AND ENTREPRENEURSHIP
Innovation and entrepreneurship
Name of the student
Name of the institute
Student ID
Author note

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Table of Contents
1.0 Business plan summary........................................................................................................2
1.1 The business.....................................................................................................................2
1.2 The market.......................................................................................................................2
1.3 The future.........................................................................................................................3
1.4 The finances.....................................................................................................................3
2.0 The business.........................................................................................................................4
2.1 Business details................................................................................................................4
2.2 Registration details...........................................................................................................4
2.3 Business premises............................................................................................................4
2.4 Organization chart............................................................................................................4
2.5 Management and ownership............................................................................................5
2.6 Key personnel...................................................................................................................5
2.7 Products or services..........................................................................................................5
2.8 Innovation........................................................................................................................6
2.9 Insurance..........................................................................................................................6
2.10 Risk management...........................................................................................................6
2.11 Legal consideration........................................................................................................7

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2.12 Operations......................................................................................................................7
2.13 Sustainability plan..........................................................................................................8
3.0 The market...........................................................................................................................8
3.1 Market research................................................................................................................8
3.2 Market targets...................................................................................................................8
3.3 Environmental and industry analysis...............................................................................9
3.4 Customers.........................................................................................................................9
3.5 SWOT analysis.................................................................................................................9
3.6 Competitors....................................................................................................................11
3.8 Advertising and sales.....................................................................................................13
4.0 The future...........................................................................................................................13
4.1 Vision statement.............................................................................................................13
4.2 Mission statement...........................................................................................................13
4.3 Goals and objectives......................................................................................................13
4.4 Action plan.....................................................................................................................13
5.0 The finances.......................................................................................................................14
5.1 Key objectives and the financial review........................................................................14
5.2 Assumptions...................................................................................................................14
5.3 Start-up cost for the year................................................................................................15
5.4 Balance sheet forecast....................................................................................................16
5.5 Profit and loss forecast...................................................................................................17

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5.6 Expected cash flow........................................................................................................18
5.7 Break-even analysis.......................................................................................................19
Reference and Bibliography.....................................................................................................20

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1.0 Business plan summary
1.1 The business
Details regarding the business are as follows –
 Business structure – the business will be started as the company and will be registered
in the name of Rose Petals. Mr John Steward will be the CEO and managing director
of the company. The board will have another 5 executive directors and 3 non-
executive directors. ABN – registered Australian business number or ABN number of the company is 11
223 479 606 ACN - registered Australian company number or ABN number of the company is
139 621 085
 Business location - The business will be located in East Sydney that is just 30 minutes
away from centrally located Sydney Business Park. Date established – the business is planning to be started on 1st July 2018 Business owners - Mr John Steward will be the CEO and managing director of the
company. Owner experience – the CEO is experienced in the retail sector and was the executive
director of a well known retail company for more than 12 years. Products – the company will sell various types of garments for the children of age
group of 5 to 15 years.
1.2 The market
 Target market - Main targets for the company will be the children aged between 5 to
15 years

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 Marketing strategy - Offer high quality products at lower possible price,
manufacturing the products as per the customer needs and meeting marketing demand
and supply the goods demanded as per required time without any hurdle or barrier
1.3 The future
 Vision - To become the distinguished retailer for kids clothing that will be known
globally for the quality of the product, setting new lifestyles and trends
 Goals - to offer high value products to their customer on regular basis, achieve the
financial objectives of the company and set the benchmark in the clothing industry as
the cost leader through improving the performance and minimizing the waste
1.4 The finances
The key objectives of the business with regard to finance are as follows –
 To increase the sales by 125% till the 3rd year of business
 Increasing the number of target customers
 Minimizing the cost of goods sold by at least 2% from 2nd year of business.

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2.0 The business
2.1 Business details
Rose petal (RP) is the retail store that will deal in kids clothing and the business will
be initially established in East Sydney. It will present wide range of the kids clothing that will
be manufactured using various fabrics like wool, cotton and silk. The clothing will be
designed keeping in mind the latest fashion trends.
2.2 Registration details
The business will be registered with Australian Securities and Investment
Commission (ASIC) in the name of Mr John Steward under the brand name of Rose Petal.
Further, before starting the business the company need to register with the Australian
Taxation Office for complying with taxation requirements.
2.3 Business premises
The business will be located in East Sydney that is just 30 minutes away from
centrally located Sydney Business Park.
2.4 Organization chart

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2.5 Management and ownership
The business will be owned by Mr John Steward. However, the organizational
structure will include the production manager, who will be responsible for everyday decision
making associated with manufacturing, HRD manager, who will be responsible for managing
all the departments, Accounts manager, who will be responsible for taking all the finance
related decisions (Schaper et al. 2014).
2.6 Key personnel
Name Designation Responsibility
John Steward CEO All marketing and
operational activities
Ricky Hudson HRD Manager Managing all the departments
Sally Armanda Account manager Making finance decisions
2.7 Products or services
RP will offer its customers the below mentioned kids clothing and products –
 Sweaters
 Jackets
 Shirts
 Pants
 Shoes
 Hats
 Bags
 T-shirts

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2.8 Innovation
RP will use special cotton fibre for the garments that will be used by the kids during
summer. This special fibre has never been used by its competitors and thereby it is expected
that it will receive a positive feedback from the customers (Sadgrove 2016).
2.9 Insurance
The company will take insurance policies for its office equipments, warehouse
products and various machineries in the manufacturing plant.
2.10 Risk management
Risk Likelihood Impact Strategy
Increasing price of the
fabric
Highly Likely High The company shall find out
alternate fabric that will not
compromise the comfort of
the kids
Increasing maintenance
cost
Likely Medium The company must depend
on the insurance policies
and servicing policies, to
provide smooth services.

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Risk Likelihood Impact Strategy
Retention of designers Highly Likely High As the company has high
competition in the garment
market, the designers are
likely to leave for additional
benefits. Therefore, the
company will hold regular
meeting with the designer to
know their demand and
preference.
2.11 Legal consideration
All the legal procedures will be adhered to as per the “Australian Business Licence
and Information Service (ABLIS)” (Steingold 2015).
2.12 Operations
RP will sell its products through following 2 methods –
 Retail sale – initially the retail stores will be opened in East Sydney location.
However, within 2 years period it is planning to open the retail stores in other areas of
Australia like Perth, Melbourne and Adelaide (Ward 2016).
 Online sale – main product of the company will be sold through online in addition
from the retail stores. The delivery for online sales will be made within 7-10 business
days.

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2.13 Sustainability plan
Under the sustainability plan, the company will make the following plans –
 The company will take appropriate care with regard to environmental issues so that
the harmful elements from manufacturing does not impact the community under
which it will carry on the business
 It will prepare the strategies and action plans for the potential risks so that it has least
impact on the business (Simpson 2014).
3.0 The market
3.1 Market research
Kids wear market in Australia is highly competitive and slowly the market is shifting
from growth to maturity. However, the increase in the children’s age group for 15 years and
under is supporting the growth in revenue (Massa and Tucci 2013). High rate of immigration
also contributed for the growth of the target market. It is expected that the industry revenue
will be increased by 3.9% that is $ 3.4 billion over next 3 years.
3.2 Market targets
Main targets for the company will be the children aged between 5 to 15 years. The
characteristics for the targeted customers will be as follows –
Description % Sales (amt)
Market total 100% $ 2,000,000.00
Boys clothing 40% $ 800,000.00
Girls clothing 40% $ 800,000.00
Boys and girls accessories 20% $ 400,000.00

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40
%
40
%
20
%
Market total
Boys clothings
Girls clothings
Boys and girls accessories
3.3 Environmental and industry analysis
Increase in the online shopping habits and social media has exposed the consumers to
latest fashions and it influenced their desire for new trends and styles. Further, the weak
sentiments of the consumers and subdued disposable growth in earnings over last few years
influenced the popularity of fashion markets.
3.4 Customers
Various factors that will made RP as ideal choice of the customer will be as follows –
 Guaranteed quality goods
 Variety of clothes under same roof
 Customization facility
 Easy modes of payment like cash, debit cards and credit cards
 Delivery within time
 Ability to accept big order size
3.5 SWOT analysis
Strength Weakness