New Venture Business Plan: Fabrics Private Limited, Romania

This report details a comprehensive business plan for Fabrics Private Limited, a new venture focused on sustainable clothing production using eco-friendly fabrics. The plan outlines the business opportunity, emphasizing the growing need for sustainable fashion to reduce pollution. It covers key aspects such as the company's purpose, product development, and the benefits of using recyclable fabrics. The report includes a thorough market analysis, focusing on the Romanian market and employing strategies like the 7Ps of marketing to reach the target audience. It details the business model, including revenue generation through a subscription model and pricing strategies. The plan also addresses financing, operational management, and potential exit routes, providing a complete overview of the venture's strategic and financial aspects. References to relevant academic sources support the plan's analysis and recommendations.

New Venture Business
Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Developing the Business Idea and Starting a New Venture............................................................3
Recognising the business opportunity.........................................................................................3
Overview of the business plan....................................................................................................5
The marketing plan.....................................................................................................................6
The financial plan........................................................................................................................7
The organisational plan...............................................................................................................9
Financing a New Venture................................................................................................................9
Sources of new capital................................................................................................................9
Management of working capital to finance the business..........................................................10
Equity Markets..........................................................................................................................10
Managing the New Venture...........................................................................................................10
Managing the early operations..................................................................................................10
Managing growth and expansion..............................................................................................10
Coping with too much business - the dangers of over-trading..................................................11
Life in a recession.....................................................................................................................11
Exit routes and ending the venture............................................................................................11
CONCLUSION..............................................................................................................................11
REFERNCES:................................................................................................................................13
Books and Journals:..................................................................................................................13

INTRODUCTION
The new business venture helps the market to cater their needs in a proper manner. The
development of a new business venture is a reason that market will work with new skills and
competencies. The product which is dealt in the following conducted business plan is
manufacturing the clothes with sustainable fabrics that are a blessing to the Mother Earth. The
products thus launched and manufactured will be environmental friendly which will as a result
cater the need of innovation (Ajose, 2021). The operations will be conducted under the brand
name of Fabrics Private Limited. The variety of clothes manufactured are trendy and are cost
friendly which will make more and more people reach towards it.
MAIN BODY
Developing the Business Idea and Starting a New Venture
Recognising the business opportunity
Company Purpose
Production of eco-friendly and cost efficient goods to cater needs of target markets.
The purpose of the organisation is to produce sustainable and eco-friendly goods at an effective
rate which will create efficiency and effectiveness to the organisation. The fabrics and the
chemicals used in the production are sustainable and will reduce the pressure on the business
surroundings (Bainton and Jackson, 2020). The technologies used in the production is researched
and developed by many processes and as a result the cost of operation will be less which will
automatically make the price of the product lesser. This will help more and more people to be
attracted to the product and purchase the same.
Problem
As the world is moving towards modernisation, there is an urgent need of sustainable
clothes as fashion industry is the second largest pollution causing industry in the whole world.
There are large dumping yards which is hampering the environmental surroundings. To reduce
waste clothes with recyclable fabrics is required to be launched. In today's era customers face a
lot of issues which emerges an urgent need to resolve them. They are showcasing something else
and when ordered are delivering something else. This increases the grievances and customers are
unsatisfied. This will give rise to the emergent need of such an organisation who is working with
ethics and proper code of conduct. It becomes hard for the consumers to work with redressal

issues (Carr and Hesse, 2020). The problems of the customers are required to be addressed and
for this there is a significant need of such business ventures who are working with sustainability
and quality products. Along with the business venture should be serving quality goods and that
too with cost efficiency and looking to the target customer base.
Solution
The business ventures are required to meet the expectations of consumers in such a
manner that consumers are satisfied and their demands are met. Value Proposition refers to why
a buyer will purchase a product or service from the respective business entity. This serves as a
reason that they have to evaluate the target market and then work accordingly. The new product
thus designed serves the value proposition and works (Chavoushi, Nicholls-Nixon, and Valliere,
2020). The business venture should be having the convincing power that the product is able to
sustain markets and competitive rivalry. The product thus manufactured is well researched and
surveyed in the market and then brought for launch. This makes it possible that it will be reached
and accepted by a large number of masses. The business venture thus launched is working by
keeping in minds that they are producing goods which are in trend and will serve the quality as
promised. The goods as delivered will be of high quality that will not hamper the health and
environment together.
Why Now
The idea is of high relevance in the present times because there is an urgent need for the
same. There is increased pollution in the economy which is a result that the products which are
sustainable are required to be launched. The fabrics thus used are eco-friendly and will not harm
the environment which is majorly required by the environment. This will be supported by buyers
and governmental bodies both (do Canto Cavalheiro, Cavalheiro and Mariano, 2020). Also there
is a prevailing situation of worst quality products which are serving as a loop hole to economic
efficiency of demand. There are organisations who are serving high priced goods and that too
with reduced quantity and as a result the value proposition of consumers was not getting
fulfilled. This can also be seen as a factor which will emerge the need of new business venture in
the market. The recyclable fabric will thus make a significant impact on the society by working
with reduced and minimal resources and that too at a lowered rate. Along with this the new

product is also serving as meeting the demands with proper code of conduct and ethics. Seeing
the existing trends, Fabrics Pvt. Limited is serving optimally as desired by the customers which
will act as serving the major goals.
Overview of the business plan
Product
The product designed will be serving the fashion demands properly as the clothes
manufactured and designed will serve the demands of existing trends. This will make consumers
easily reach to the product and fulfil their choices, tastes and preferences. The clothes
manufactured will be of both the genders which will result in catering a large market segment.
The product function in fulfilling the needs of all the demographic segment focusing on all the
age groups, whether children, teenagers, adults and old aged. This will serve the product as of
varied characteristics which will make it distinguished with that of others. As the product is new
and innovative technique, this will serve in high technicality (Duval-Couetil, Ladisch and Yi,
2021). As the product is new it is required to be saved and preserved from others and for this
reason, business venture is required to apply for intellectual rights over the idea. For this reason,
there is a need of applying for Patents so that the new process and product is preserved as a
rightful ownership to the owner himself. The Development roadmap for the product is prepared
which will show the initiatives and efforts that are made by the owners to serve the purpose and
make the project work with efficiency and effectively.
Business Model
Business Models are the core systematic plans which are used by the organisations in
order to carry out business in an effective and profitable manner. This will help in meeting the
anticipated and contingent expenses without disrupting the existing business. To achieve this the
various business that can be studied are as under:
Revenue model: The Revenue model is a business model that works for examining and
evaluating the revenue sources that are needed to fulfil the aims and objectives of the
organisation. This works for offering high values and prices so that organisation earns more and
more. The selected revenue model for this business will be based on subscription model. A
subscription model assists you with profiting by the intensifying worth of client connections.
That implies that as long as your clients constantly see the worth your organization
accommodates them, they'll keep on paying you for it. If the business will provide the best

services to the customers then it will help in increasing the revenue of the company due to which
goodwill of the company will also get enhanced in the marketplace.
The membership income model is not new. Since its inception in the 17th century, it has
been a staple of business such as distribution, equipment and recent programming.
However, membership has somewhat recovered in recent years. In fact, you can't find a
car, an industry that doesn't have an example of membership to overcome adversity. Consumer
goods. carrier. style. Even unpretentious houseplants do not seem to be immune to the member
economy.
Why? It's that simple. The membership income model benefits customers and
organizations. It is important to note that customers can automatically recharge and get closer to
highly rated offers with consistently low guesses. Member organizations can then confidently
expand through tremendous revenues and a close connection with their customer base.
Naturally, more and more organizations are moving to action plans for their members.
Also, given that regular customer’s burn 67% more than other customers, this is also a temporary
boat to sit on.
But before doing so, it's worth looking at some key points of the membership income
model and why it works for a variety of organizations.
This model will helps in analysing the revenue generating the power of the business and it also
helps in analysing the performance of the business so that growth of the business can take place
in the marketplace. By using this model there are various advantages which the organisation can
gain in order to increase their performance in the marketplace.
Pricing: The pricing model defines at what rate the product will be sold in the market. This
works on catering the needs and perception of market (Enkel and Sagmeister, 2020). The prices
are decided under this on the basis that it is satisfactory to both consumers and owners.
Average account size and/or lifetime value: The model works for determining the business value
for the whole lifetime. This tells how business venture can bring worth to its existence by
carrying out effective marketing mix activities.
Sales & distribution model: The business model works for determining how the sales of products
in an organisation can be enhanced so that a high revenue is generated.

Customer/pipeline list: This works describes the target market for the product. The target market
for the recyclable clothes is every segment of individuals who are aware about the sustainable
development.
The marketing plan
Market Size
The market size as captured by the business venture will be huge. For this there will be
proper and strategically planned promotional events will be conducted that will make the
organisation well known to the market and its people (Indudewi, 2021). The existing market of
the business enterprise is Romania where market size will be catered through online platforms.
The strategies used can be seen as:
SOM: SOM or Serviceable Obtainable Market works for covering a large part of market by
examining the close competitors who persuade the consumers.
SAM: SAM or Serviceable Addressable Market refers to market which is catered in the
respective geographical locations only.
TAM: TAM or Total Addressable Market is the whole consumer market which is needed to be
accessed. This describes the demand of innovative product or service.
For marketing plan 7Ps model will be use to focus on targeted market.
The 7 Ps of marketing
7P is a set of proposed marketing strategies that can be used in any combination to satisfy
customers in your target market. You can control it, but it depends on internal and external
advertising conditions. Integrating these different marketing strategies to solve customer
problems and needs is called a “strategic demo mix”.
Product
Product refers to the product you are selling, including all highlights, benefits, and
benefits that customers can appreciate by purchasing the product or service. When marketing
your product, you need to consider the key points and benefits your customers want or want,
including but not limited to, style, quality, solutions, and enjoyment. Providing the benefits to the
customers helps in incresing the sale of the business in the marketplace so that growth chances of
the business can be increased and more profit can be earned in the business.
Price

It suggests a procedure for evaluating the cost of articles and administration and what this
means for the customer. You need to understand how much your customers are ready to pay,
how much they will need to cover their regular expenses, how to make net profits and
installments, as well as the various costs. Limitations and regular evaluations may also be
considered to attract customers and retain benefits. Company should set the affordable prices for
the product which they are providing so that their demand in the market can be increased.
Promotion
It's a timed exercise you use to keep your customers focused on your products and
management, including advertising, business strategy, direct marketing, and advertising. It is
commonly referred to as a demo strategy. There are various techniques to promote the product in
the market like advertising direct selling etc through which people can get aware about the
services of the business in the market.
Place
A place is a place where goods and controls are displayed, produced, sold or distributed.
Customer access to our products is very important and we ensure that our customers can find
you. Target market should be identified by the business to increase the sale of the product in the
marketplace.
Plan your sales space and use compelling visual marketing strategies to differentiate
yourself from your opponents. Even if you don't like the retail store, space is still an important
part of the exhibition. Customers may need to quickly complete consignments or purchase
custom items.
People
People come into contact with employees and suppliers who work for the company,
including themselves.
Process
Bike tips can be found on bikes related to sending goods and care to customers. It's also
about "who was easy to work with."
Physical evidence
Proof of fact means anything your customers see when interacting with your company.
These include:
The physical environment where you provide:

 Internal format or layout
 Equipment
 Marking.
7 ps of marketing helps in increasing the sale of the product in the market by identifying their
needs and requirement so that provide of the business can be increase in the market it helps in
better decision making in the business so that goals of the business can be increased effectively.
Competition
In the market of Romania itself there are many leading clothing brands who are working
for the needs and demands of consumers and they can be seen as:
Interfashion Prodesign
Katty Fashion
Above all the competitors it is, the Fabrics Private Limited serves with competitive
advantages over close competitors as they are producing innovative and sustainable products.
The product will serve as a benefit to economy which will give it more and more competitive
benefits.
The financial plan
In order to execute operations and financial activities in an economic manner it is required
by the business organisations to prepare an anticipated budget plan in order to evaluate and
examine how much finances will be required (Mao, Su, Wang and Jarvenpaa, 2020). The
evaluation will help in knowing how much funds will be required to be procured and for how
much time. This will support in evaluating the best suitable method to procure funds. This will
also allocate the funds for respective activities.
Forecasted Profit and Loss Income statement for 3 years:
Fabric Limited’s Forecasted
Income statement
2021 2022 2023
£000 £000 £000
Revenue 3,601 4,925 4,370
Cost of sales (Yan) (2,519) (3,175) (2,800)

Gross profit 1,082 1,750 1,570
Selling and distribution costs (680) (843) (750)
Administrative costs (150) (212) (205)
Operating profit 252 695 615
Finance cost (17) (17) (18)
Profit before taxation 235 678 597
Taxation (30) (120) (110)
Profit for the year 205 558 487
Forecasted Cash Flow statement for 3 years:
Fabric Limited’s Forecasted Cash flow statement
2021 2022 2023
£000 £000 £000
Profit before taxation 235 648 597
Adjustments for:
Depreciation 97 109 116
Net finance cost 17 17 18
349 774 731
Change in inventories (40) (210) 130
Change in receivables (55) (4) (29)
Change in payables 99 (79) (75)
Cash generated from operations 353 481 757
Taxation paid (30) (110) (90)
Net finance costs paid (17) (17) (18)
Net cash from operating activities 306 354 649
Investing activities
Purchase of non-current assets (140) (96) (130)
Proceeds from disposal of non-current assets 100
Net cash used in investing activities (140) 4 (130)
Financing activities

Net increase/decrease in long term borrowings 33 (111) (154)
Dividends paid (190) (230) (130)
Net cash used in financing activities (157) (341) (284)
Net change in cash and cash equivalents 9 17 235
Cash and cash equivalents at the start of the year 173 156 (79)
Cash and cash equivalents at the end of the year 182 173 156
Forecasted Balance sheet for 3 years:
Fabric Limited’s Forecasted Balance sheet
2021 2022 2023
£000 £000 £000
Non-current assets
Tangible assets 1,239 1,196 1,279
1,239 1,196 1,279
Current assets
Inventories 440 400 190
Trade and other receivables 420 365 361
Cash and cash equivalents 182 173 156
1,042 938 707
Total assets 2,281 2,134 1,986
Shareholders' equity
Share capital 100 100 100
Retained earnings 1,373 1,358 1,030
Total shareholders' equity 1,473 1,458 1,130
Non-current liabilities
Bank loan 253 220 331

Current liabilities
Trade and other payables 555 456 525
Bank overdraft - -
555 456 525
Total liabilities 808 676 856
Total equity and liabilities 2,281 2,134 1,986
Thus the business plan as seen above will help in catering the finances as and when
required within a given time frame.
The organisational plan
Team
As the organisation is working on a wider scale and has a large production business, there
is a need of effective and managed team working and looking for managerial process and overall
development of the organisations. This is a reason that management process is carried out
effectively and without deficiencies. The managers decide roles and policies according to which
the employees will work. Also it can be seen that they prepare the pre-determined goals and
targets on which whole operational activities are based on (Morris, Santos and Neumeyer, 2020).
The team is a hierarchical structure of management and its employees who are bound by the
authorities and responsibilities which are accordingly divided and segregated.
Founders & Management: The founder of the business venture is the first person who has the
idea of business and is the person who will initiate it. The founder will appoint the CEO and
other Board of Directors. This whole management team are the stakeholders and will serve in
taking important and relevant decisions for the firm.
Board of Directors/Board of Advisors: The board of Directors are the persons who are legally
attached to firm and hold the major stake and decision making power. On the other hand, board
of advisors are the experts who time to time guides in taking appropriate and suitable decisions.