U-Design House: Small Business Development Group Business Plan

This business plan details the formation of U-Design House, a fashion company founded by five individuals with a passion for custom clothing. The plan encompasses various sections, including an executive summary, introduction, management team overview, industry analysis, market analysis, marketing strategies, operational plans, financial projections, and risk assessment. U-Design House aims to provide customers with the ability to design their own unique clothing through an online platform, offering tailor-made garments at acceptable prices. The target market is women aged 30-55. The business model emphasizes the use of social media for advertising and leverages the founders' experience in the garment industry. The plan also addresses opportunities and challenges within the fast fashion landscape, highlighting the company's mission to promote long-lasting, high-quality fashion and the competitive advantages it possesses. Financial projections, including profit and loss statements, balance sheets, and cash flow statements, are included to demonstrate the financial viability of the venture.

Small Business Development
Group Business Plan
By
Student ID:
000909349
000950888
000948206
000951085
000948638
Tutor: Dr. Lewis Lee
Course: BUSI1494 Small Business Development
Coursework: Group Business Plan
Date: 21 August 2024
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Table of Contents
Executive Summary
Chapter 1 Introduction 5
Chapter 2 Management Team 9
Chapter 3 Industry Analysis 12
Chapter 4 Market Analysis 14
Chapter 5 Marketing Plan 16
Chapter 6 Operations Plan 20
Chapter 7 Financial Plan 23
Chapter 8 Critical Risk Factors 26
Chapter 9 Conclusion 27
The Reference List 28
Appendix A: Peer Review 30
Appendix B: Action Plan 31
Appendix C: Presentation PowerPoint 33
List of Charts
Chart 1 Company Structure 9
Chart 2 Apparel Retailers Rank in Terms of Fashion & Value 13
List of Tables
Table 1 Opportunities Analysis 6
Table 2 Brief description of the business model 8
Table 3 The Primary Customer 14
Table 4 3 Years Plan 19
Table 5 Statement of Profit or Loss and Other Comprehensive Income 23
Table 6 Statement of Financial Position 24
Table 7 Cash Flow for U-Design House, Year of 2017, 2018 & 2019 25
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Executive Summary
In 2016 five people with passion hearts and purpose focuses on fashion
industry established a company called U-Design House. They think everyone
has own sense of touch for fashion and their beloved style so everyone can
become a fashion designer to design their unique clothing for themselves.
Therefore, they established a platform to provide technology to make quality
clothes with their own style with acceptable price.
U-Design House focuses on women’s apparel in the first year; we may expand
to men’s apparel and set up workshop for them in second and third year. Our
target customers are 30-55 years old female groups. We provide the service for
the customers to simply design their own unique style in a few clicks on our
website. They can enjoy a perfect fit with handmade, made-to-order clothing
created by skilled tailor.
We sell the clothes with acceptable price to ensure profitability and
sustainability by paying close attention to our pricing strategy. Customers can
design and then buy it on our website directly. The best approach to
advertising is by social media such as Facebook or magazines.
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Chapter 1 Introduction
U-Design House is a local fashion company that represents long-lasting and
own style since 2016. Founded in Hong Kong by five young people with
passion and purpose focuses on fashion industry.
That five young people love long-lasting fashion; however, they look around
the world they found same style with expensive price even with good quality.
Moreover, they found there are thousands of fast fashion brands are nibbling
the traditional fashion industry. Fast fashion at low price and poor quality,
cannot lead fashion trend and made a glut of clothes which are not necessary.
They perhaps everyone has own sense of touch for fashion and their beloved
style so everyone can become fashion designer to design their unique clothing
for themselves.
Therefore they established a platform to provide technology to make quality
clothes with their own style and with acceptable price.
Mission
The mission of the U-Design House is a representative of the long-lasting and
own style with high qualities in the world. U-Design House represents
creativity and stylish products that reflect eternal values, blend classic and
innovation, and let everyone become their own fashion designer and enjoy the
process.
Vision
U-design House's vision is providing the resources to create, produce and
promote their products and services through online platform to ensure the
development of each product style with respecting customer's lifestyle and
their autonomy.
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Opportunities
Our opportunities (Honeycutt et al, 2003) of fashion industry
Table 1 Opportunities Analysis
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OOPPORTUNITIES
- Fast fashion created environment crisis (Wicker, 2016)
- Fast fashion is deteriorating sources of the carbon emissions
that contribute to global warming. (Rosenthal, 2007)
- Most factories of fast fashion are located at Cambodia,
Malaysia, Vietnam or Thailand as employers of child labor
- Hong Kong Government support for SMEs (small and
medium enterprises since 2010
- According the program of SMEs provided over 50 thousand
positions at manufacturing industry (Support and
Consultation Centre for SMEs, 2016)

According the above opportunities, we think fast fashion will be faded out in
fashion industry in the future because the environmental crisis and the
problem of child labor that provides us an opportunity to enter the fashion
industry to promote the long-lasting wearing concept. Promotion is most
important part of our business plans to let customer know they can design their
own clothes with high quality fabric, classic and long-lasting wearing instead
of fast fashion.
We have strong mission to change the situation of fashion industry to balance
the fast fashion and tradition fashion. We all founders worked garment
industry before and understand the process of making clothing and we know
the channel to purchase high quality fabric. These are our competitive
advantage.
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Table 2 Brief Description of The Business Model
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Chapter 2 Management Team
Our management team consists of five members. Details of our experise and
experience are desribed below.
Chart 1 Company Structure
Adna Yip - Shop Manager
Ms. Yip has over ten years of working experencie in the role of sales
administrator in a manufacturing company. Ms. Yip has fashion sense and is
talented in fashion design. She will be responsible for online order status.
Once received the order, she will coordinate with the tailor and explain
customer’s specific requirements. She will monitor the production process to
ensure timely delivery of products and work with outsource IT support and
update our webpage on regular basis. Besides, Ms. Yip will also interact with
customers to get better understanding on their preferences.
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U-Design
House
Shop
Manager
Fabric
Merchandiser
Sales
Manager
Financial
Adviser
Office
Administrator

Annie Poon – Fabric Merchandiser
Ms. Poon has acted in the roles of company secretarial and executive secretary
in fashion industry and F&B companies. Ms. Poon loves ravelling, reading
and watching movies. Ms. Poon is a fashion fan and has established
connection with some local designers. She will be responsible for fabric
merchandise and communicates with local designers for potential co-operation
opportunities.
Patrick Lee – Sales Manager
Mr. Lee has 15 years of experience in sales and marketing and now serves as
Sales Officer of marine equipment and spare parts in a major shipping
company. He has extensive experience in fashion and handbags trading. He is
familiar with garment production process and has an acute touch on market
trend movements. Mr. Lee will be responsible for sales and marketing as well
as purchase of equipment e.g. cutting and sewing machines that are suitable
for our business size. Moreover, Mr. Lee will advise on the approach of our
mareketing strategies on our products.
Alice Liu – Financial Adviser
Ms. Liu served as an adminstrator in logistics, fashion and financial
companies in the past ten years. Ms. Liu is interested in exploring e-commerce
business opportunities. She will be in charge of the office accounting work and
keep the shareholders of the company informed of the financial status of the
company. She will look after the inventory of fabrics and accessories to avoid
over-stock of materials.
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Irene Ho – Office Administrator
Ms. Ho is an experienced secretary in the service industry. She will be
responsible for the administration of the company such as equipment
maintenance and day-to-day operations. Ms. Ho will work closely with the
production line to enhance smooth delivery.
Our Management Team will strive to do the best to make the business
successful and commit ourselves to achieve the best result with high quality of
our products.
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Chapter 3 Industry Analysis
Fast fashion is described as rapid change clothing collections or current
fashion trends. The fashion retailers deliver fast and trendy designs to attract
younger generation who like to catch up with the trend and are willing to
spend much money to purchase new items in each season. This “continual
introduction of new products” concept is well received by customers.
Although the price of the fast fashion is quite low, the quality of materials is
not that high.
H&M, Zara, Uniqlo, Manager and Forever 21 are the most popular fast
retailers nowadays. These retailers can manufacture the clothes within a
couple of weeks from the start up, design concept stage to final production.
Their strategy is to produce the products in small batches that rarely stay in the
store for more than two weeks. This will make the customers purchase their
items as soon as possible.
Online fashion stores provide a platform where customers can easily choose
all the desired fabrics, colour, size, designs etc. according to their preferences.
All you need to do is to follow the instructions step by step by clicking the
mouse, make payment and re-confirm your order – then you will get your
clothes in a fairly short time. There are thousands of online fashion shops in
the market to serve the online shoppers.
Although fast fashion is common and has a leading position in the fashion
market, it does not mean it will meet everybody’s taste and requirements.
There are a number of people who prefer unique, traditional design, fine
workmanship with high quality products. For example, young professionals in
Hong Kong with middle income will spend two to three thousand dollars to
buy their clothes each month. In addition, there lacks fashion providers who
are specialized in tailor made skirts and/or costume dressing. Therefore, we
are confident that we can develop our business in this niche market.
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