Online Fashion Business Project: A Detailed Business Plan

This project presents a comprehensive plan for launching an online customized fashion business, targeting women in the UK. It begins with a project background, outlining the opportunity to capitalize on the growing online fashion market. The business aims to provide customized, trendy clothing, leveraging digital technology for maximum reach and customer satisfaction. The project analyzes the current market situation, highlighting opportunities such as the £26 billion fashion industry and the shift to online shopping due to COVID-19, while also addressing challenges like competition and financial constraints. It includes critical assumptions and constraints, such as financial resources and project scope. Preliminary project requirements, budget estimates, potential risks, and quality considerations are detailed. The project evaluates marketing options, recommending common influencers over celebrity influencers. Finally, the project provides recommendations for success, including hiring skilled employees and conducting market research. References to relevant academic sources are also included.

Launching a new business
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TABLE OF CONTENT
1.Project background...................................................................................................................3
2. Business Benefit.......................................................................................................................3
3. Current situation.......................................................................................................................4
4. Critical Assumptions and Constraints......................................................................................5
5. Preliminary project requirements.............................................................................................6
6. Budget Estimates.....................................................................................................................6
7. Potential high-level risks..........................................................................................................6
8. Quality considerations.............................................................................................................6
9. Analysis of Project Options.....................................................................................................7
10. Recommendations..................................................................................................................7
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1.Project background
The project is related to starting a online customize fashion clothes for every women
in society so that they can look pretty and attractive. In recent scenario, each individuals
wants to look better than other so it has influence to start a new business of clothes for
satisfaction of customers needs. Moreover, with development of technology, most of the
people prefer to have online shopping that has also provided to provide opportunities to start
business in similar field. Thereby, the project has covered necessary detailed pertaining to
launch of online business in fashion industry.
2. Business Benefit
A) Project aim
“The Aim of the project to start online business in fashionable industry with an motive to
delivered qualitative services to customers in order to earn higher return.”
B) Objectives
 “The objective is to deliver customized, trendy and fashionable clothe to door steps of
people so that they are motivated to be part of organization.
 “To generate maximum awareness among large number of individuals that are living in
different parts of the world by making use of digital technology.”
 “ To make website more attractive that contained all necessary information pertaining to
products and services in which company deals so that customers can easily make right
decision.”
 “ To take all necessary step pertaining to start and effective operate online clothe business
in Fashionable industry of United Kingdom.”
C) Anticipated outcomes
It can be stated that the higher profit is the anticipated outcome of launch of online clothe
business that contained dress of all type for all women sizes so that they can look beautiful and
attractive as compared to other. The project will also lead in providing choice and options to
customers to have customized clothe as per their preferences and choice. Thus, it helps new
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online business in expanding its operation to maximum extend in limited time frame as well as
cost by adding more and more customers in the firm (Sarangee, Schmidt and Calantone, 2019).
Thereby the overall anticipated outcome of online fashion is increase in revenue of company.
3. Current situation
A) Opportunities the project will exploit
From the secondary research, it has been identified that the fashion industry is worth £26
billion that have employed around 555000 employees in United Kingdom. In another words,
clothing is one of the biggest industry that is 80% export goes from British to other parts of the
world. On an average 1.24 billion dollar has been spent my women on suit, not Knit, T-shirt
around 622 millions and Women overcoats 356 million dollars that is around 3.2. So, it can be
illustrated that the customers are ready to spend a lot of money in purchasing clothes to look
beautiful. Furthermore, it has been estimated that around 20% of revenue in fashion industry has
been generated from online sales so it has provided opportunities to start a project of new online
clothing business to meet customers requirements. At the same time, due to covid-19 people are
preferring to have online shopping thus it has providing opportunity to start a new business to
enjoy high profit (Adomako and et.al., 2018). Thereby, the project of online customized clothe
for all sizes of women will help in generating more sales volume and revenue.
B) Challenges the project will address
There are various challenges related to project is that limited financial capital to start
online business to earn higher profit margin. So, in order to address the challenge of limited
resources, it has been decided to find alternative options through which they can be raised and
used in growth and implementation of project. Furthermore, issue pertaining to security and
privacy, as in recent scenario, most of the business are going online that has increase threat of
loss of potential information of business and customers (Chesbrough, 2019). Thereby, company
need to address the challenges of maintaining security and privacy to delivered better quality
services to customers. At last it can be interpreted that higher competition in fashion industry is
another challenge pertaining to the project. Such as Burberry, ASOS, Marks and Spencer and
Next plx are four main competitors in fashion sector of United Kingdom that delivered more
better quality of clothe. Therefore, higher competition or more competitors with large market
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share is challenge that has been removed through providing customized clothing to women at
reasonable price for fulfillment of their respective desired.
C) Combination of both opportunities and challenges
From the above study, it can be stated that company have opportunities to expand its
business in online fashion as with impact of covid-19 and development in technology. People are
more interested to have home delivery of products so that they can be safe by maintaining social
distancing or going at public place. The project is also opportunities as digital media is best
method to connect with millions of customers in minimum cost as well as time thereby yielding
more profit to organization (Leal and et.al., 2018). While, with relevance to challenges, the less
knowledge and access, trust of people to online shopping will be the major changeling of project
success. Thereby, the project has planned to make website ease and convenient so that maximum
individuals can make use of its as per their needs and preferences.
4. Critical Assumptions and Constraints
Assumption can be stated as things that are assume to be true that helps in better
planning, decision making and development of strategy. Certain assumption regarding starting
online business in UK are Finance and other resources, competition, technology, marketing and
abidance to legal laws. Such as:
Finance and other resources: It has been assumed that around 10000 will be required to start
and set up online clothe business in United Kingdom so bank loan will be sources to gather fund
related to the completion of project.
Schedule: Furthermore, it has been estimated that 3-4 month will be required to complete all
formality pertaining to starting and operating online business. All key actions have been planned
in advance so that project can be completed as per set standard time (Robertson, 2017).
Customers: The target customers of the project are mainly women or girls that wants to have
customized clothe for any party or get together. On the basis of recent trends and fashion in
clothing, the company has design clothe so that people are attracted to purchase the same for
satisfaction of their respective wants.
Constraints: The main constraints pertaining to the business is limited availability of finance
resources so it has decided to make online business. As it involve less cost in attracting large
number of customers that results in higher profit margin for the company. Scope of project is
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also limited as the business include clothe for women only so it can also have women clothe also.
Thereby, limited finance and scope of project is two constraints that has act as limitation of the
project related to starting online business.
5. Preliminary project requirements
There are numerous things that are required in order to effectively implement the project
such as human and finance resource, innovative technology and many more things to complete
the task. Likewise, human that have different skills, capabilities and talented will be required to
complete specific task pertaining to the project. Finance will be required to bear all expense or
cost related to start a online business (Lee, 2019). Thirdly digital technology will be required to
delivered online services to customers for satisfaction of their respective wants in better manner.
6. Budget Estimates
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Two alternatives available for marketing, their budget estimates and NPV calculations
Exhibit: 1- Marketing through Common influencers
Assuming discounting rate @ 10%.
Particulars Year 0 Year 1 Year 2 Year 3 Year 4
Revenue 5300 5900 6600 7000
- Production
costs
Variable cost
of production
2500 2700 3000 3300
Fixed cost
production
700 700 700 700
Depreciation 100 100 100 100
Total cost of
production
3300 3500 3800 4100
Selling,
administrative
and general
expenses
1100 1200 1250 1250
Operating
profit
900 1200 1550 1650
Initial capital
expenditure
-2500
NPV analysis
Operating
profit
- 900 1200 1550 1650
Add: 100 100 100 100
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depreciation
Operating cash
flows
-2500 1000 1300 1650 1750
Discounting
factor @10%
1 0.91 0.83 0.75 0.68
Present value
of cash flows
-2500 909.09 1074.38 1239.67 1195.27
Net present value = 4418.41 – 2500 = 1918.41
Exhibit: 2 – Marketing through celebrity influencer
Particulars Year 0 Year 1 Year 2 Year 3 Year 4
Revenue - 5500 6200 6700 7200
Production
costs
-
Variable cost
of production
- 2700 3000 3200 3500
Fixed cost - 700 700 700 700
Depreciation - 100 100 100 100
Total cost of
production
- 3500 3800 4000 4300
Selling,
administrative
and general
expenses
- 1200 1400 1600 1800
Operating
profit
- 800 1000 1100 1100
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Initial capital
expenditure
-2700
NPV analysis
Operating
profit
- 800 1000 1100 1100
Add:
Depreciation
- 100 100 100 100
Operating cash
flows
-2700 900 1100 1200 1200
Discounting
factor @ 10%
1 0.91 0.83 0.75 0.68
Present value
of cash flows
-2700 819 913 900 816
Net present value = 3448 – 2700 = 748
Therefore, common influencers should be selected over celebrity influencers as the NPV is
higher in the former case.
7. Potential high-level risks
Cost risk: The first and foremost risk pertaining to the project is under estimation of cost which
may result in lack of capital to implement the plan.
Change in external factor: There are numerous changes in external environment so it is also a
risk pertaining to project which may also result in failure of project.
Communication risk: Lack of communication between team member also acts as risk in better
outcome of the project related to start up of online business.
8. Quality considerations
In order to maintain quality of project, the manager will continuously monitor
performance of each individuals as well as activities that are performed to start online business.
Benchmark will also be set in order to compare the action that has been taken in order to
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identified the areas that need to be improved for better outcome. Moreover, information
technology will be used in order to analysis the quality of project or collect data pertaining to
project to make necessary improvement.
9. Analysis of Project Options
From the Study, it can be there are various project options that could be helpful in
starting online business in fashion industries. Such as it can also offer clothe for men, kids also,
or provide jewellery and footwear in order to satisfied needs of all range of people. Therefore, all
these alternative options can be used to make project successful (Cho and Lee, 2018).
10. Recommendations
It can be suggested that to improve the project there are various things that can be
adapted by project manager for better outcome. such as:
1. Highly skilled, qualified and trained employees need to be hired that have capabilities to
deliver services through making use of digital technology.
2. Moreover, the manager need to conduct market research in order to understand recent trends
pertaining to clothe for better start-up and operation of business.
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EFERENCES
Books and journal
Adomako, S and et.al., 2018. Entrepreneurial alertness and new venture performance:
Facilitating roles of networking capability. International Small Business Journal, 36(5).
pp.453-472.
Chesbrough, H., 2019. Open innovation results: Going beyond the hype and getting down to
business. Oxford University Press.
Cho, Y. H. and Lee, J. H., 2018. Entrepreneurial orientation, entrepreneurial education and
performance. Asia Pacific Journal of Innovation and Entrepreneurship.
Leal, P. F and et.al., 2018. A multicriteria model for launching a new product for a group of
decision-makers. In Data Science and Knowledge Engineering for Sensing Decision
Support: Proceedings of the 13th International FLINS Conference (FLINS 2018) (pp.
1042-1049).
Lee, I., 2019. The Internet of Things for enterprises: An ecosystem, architecture, and IoT service
business model. Internet of Things, 7.p.100078.
Robertson, T. S., 2017. Business model innovation: a marketing ecosystem view. AMS
Review, 7(3). pp.90-100.
Sarangee, K. R., Schmidt, J. B. and Calantone, R. J., 2019. Anticipated regret and escalation of
commitment to failing, new product development projects in business
markets. Industrial Marketing Management, 76. pp.157-168.
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