Detailed Business Plan: Style Activewear Store Startup

This business plan outlines the strategy for Style Activewear, a startup retail store specializing in activewear such as shorts, tights, singlets, and t-shirts. The plan details the business's mission, vision, and goals, including financial, personal, and social objectives. It includes a situational analysis with SWOT analysis, supplier information, and operational strategies focusing on high-quality production and store layout considerations. The marketing section covers the target market (ages 15-40), the 4Ps of marketing (product, price, promotion, distribution), competitive advantages, and the competition. It also discusses human resources, including staff roles, qualifications, and training. Financial projections include revenue forecasts, break-even analysis, and cash flow projections, with a minimum funding requirement of $500,000. The plan emphasizes strategic location, product innovation, and customer service to achieve success in the competitive clothing industry.

Running head: STYLE ACTIVEWEAR STORE BUSINESS PLAN 1
Style Activewear store Business plan
Student’s name
Affiliation

STYLE ACTIVEWEAR STORE BUSINESS PLAN 2
Style Activewear store Business plan
Stage 1
1. State the Name of the Business
Style Activewear store
2. Outline (Sketch in general terms) what the business does-the product
concept(good/service)
Style Activewear is a start-up retail store that will deal in production of shorts, tights, singlets
and t-shirts.
Legal Structure
3. Classify(arrange) the business according to:
Legal structure: The business will be legally registered under the Australian Government
Business Registration service after we obtain the Australian Business Number for it. Style
Activewear`s mission statement is " To inspire and innovate all athletes across the globe"
Industry Sector: Style Activewear store will be operating under the Australian Clothing
industry.
Vision
The vision statement of Style Activewear store is " To develop the most distinctive, authentic
and connected brand in the entire world". The business is aspiring to become the leading
supplier of activewear in the global market. Style Activewear will provide services to athletes of
different ages.

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Business Goals
Financial goals
 To generate revenue from selling of activewear specifically singlets, t-shirts, tights and
shorts.
 To minimize costs of production
 To ensure efficient flow of cash
Personal goals
 To establish a secure future.
 To obtain a minimum of 5 million dollars for the first three years of the business.
 To attain more professional development skills that can help me to effective run the
business.
Social goals
 To increase productivity
 To ensure maximum engagement of all employee in the production process
 To express higher levels of creativity and innovation.

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Stage 2
Executive Summary
This paper provides a business plan for Style Activewear store, a new business entity
which will deal in production of tights, shorts, t-shirts and singlets. The business plan entails
situational analysis of the business, the marketing strategies to be used, the sources of finance
and analysis of the human resource management. The plan explores the cash flow projections
and the amount of revenue expected to be obtained by the business as well as the total costs to be
incurred. It examines the target market the business is interested in serving and provides the store
lay out as well as an explanation of how the production process will be carried out.
Situational Analysis
SWOT analysis
Strengths
 The business will be established in a strategic location
 The consumer base for activewear products is gradually increasing
 The owner of the business has great understanding and experience of the fashion industry
 Production of high quality products with outstanding customer service.
Weaknesses
 Market for these products in the local shopping center has not yet been tested
 People usually prefer use of brand products.
Opportunities

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 Implementation of online shopping will expand the market base as well as obtaining the
target market.
 Higher levels of innovativeness and creativity can help differentiate the products from the
ones of other competitors.
Threats
 There is rapidly increasing competition in the fashion industry especially among the
successful companies.
 There is no guarantee of the new competitors which may enter the market.
Suppliers
We shall have several suppliers to help us effectively operate even in seasons of low raw
materials. The kind of relationship we shall have with our suppliers as well as the exclusive
offerings of our products will help in preventing new competitors from joining the market.
Operations
Style Activewear will primarily serve the local customers living around the nearby places of the
local shopping center. As the business expands, it will as well expand its operations to the nearby
communities and in foreign countries. Our main objective is to become the leading company in
the clothing and fashion industry.
Production process
During the production process, our first priority will be achieving high quality output. We shall
try as much as possible to make defects during the production process as they may expose the
business to higher loses and as well lead to failure of the business to achieve the set targets. Strict

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rules and regulations will be implemented to ensure that the production techniques used in the
production process meet the legal requirements as required by the National Bureau of standards,
(Carey, 2016).
Store Lay out
As indicated above, the store lay out will entail the display fixtures for the t-shirts, shorts
singlets and tights. It will comprise of the main entrance and an emergency exit/ It will also have
an inside toilet for the employees to use in case of need.
Factors needed to be considered in designing store layout
There are several factors which will be considered when designing the above lay out.
First, the floor plan will be considered. Floor plan greatly contributes to management of the store
flow as well as controlling traffic in the store. designing of the required floor plan will depend on

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the target market, the size of the store and the products to be sold. Since we are highly interested
in creativity, we are most likely to use a free floor plan. Additionally, the quantity of the products
to be manufactured will also determine the nature of design used in store lay out.
Marketing
The target market
Style Activewear store is a small medium enterprise which will mainly target both male and
female individuals with ages ranging from 15 to 40 years living with. We are expecting to attract
more young women with our high quality products of tights and singlets. More so, we expect
most of our products to attract the young generation. The Australian population also comprises
mostly of people in the working age with approximately 66.6% and slightly above half of the
Australian population are female making it easy for us to obtain the targeted market from this
age group, (Carey, 2016).
Marketing of the business to the target market
With the implementation of the 4ps of marketing, we shall be able to obtain our targeted market.
Product
Style Activewear store will offer activewear clothing such as tights, singlets, t-shirts and
shorts. The business will invest more in innovations and creativity to provide more products to
its customers and as well expand its market. Focusing more on customer experience and
production of high quality products are some of the ways through which we shall obtain
referrals, repeat clients and a good reputation. We shall always work towards achieving our
vision "To develop the most distinctive, authentic and connected brand in the entire world"

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Price
Primarily, we shall use cost leadership strategy to set prices of our products since the
business is operating in a local shopping center. This will entail calculating the costs incurred in
the production process. As the business expands with the use of efficient marketing strategies
and development of a good reputation, we shall be able to charge premium prices for our
products. We shall also apply for partnerships with other organizations in the clothing industry
such as Nike, Adidas, Athleta, Amazon after the business expands and then provide exclusive
options of pricing depending on the quantity of products manufactured.
Promotion
Most of our efforts will be invested in advertising of our products through different
communication networks such as televisions, radio, emails and social media. First, we shall
develop a website on which we shall show case all our products. Considering the fact that young
generation is out target market, social media will be used as the main advertising platform. since
promotion is the driving force of all the other 3P`s, we shall use the social media platforms such
as Facebook, LinkedIn, twitter and others to strategically set the prices of our products and place
them in a more strategic place in which customers cannot resist buying them.
Distribution
Primarily, our products will be sold in the local shopping center. As the business expand,
we shall introduce online shopping where by our customers can get access to our products by
ordering for them online. We shall also establish more branches in different countries to ensure
availability of our products to different people across the globe.
Competitive advantage and the competition

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The clothing industry has stiff competition which is created mostly by larger companies
such as Nike, Adidas, Athleta and others. In the local shopping center, there is currently no any
store dealing in the same products like ours making it one of the competitive advantage our store
has. Additionally, I, the founder of the business has extensive knowledge and experience of
working in a clothing industry. This will greatly contribute towards the success of the business as
it will be easy for us to know the latest trends which the clothing industry is all about. Although
we do not have any guarantee on whether a new competitor can arise in this area, we have trust
in the kind of fashion sense we shall introduce in the market, the customer service we shall give
to our customers and the quality of products we are expecting to produce.
Human resources
Staff-numbers and duties
Style Activewear store will initially employee 4 staff members, of which one individual
will be the managing director, and 3 of them will be sales staff. The sales staff will be
responsible for discovering new market ventures where we can sell our products from.
Additionally, the sale staff will take on the duty of researching about the needs of our customers
and how best the business can provide these needs to them. The managing director will be in
charge of controlling all the activities taking place in the store.
Qualifications, skills and training requirements
Employment of qualified employees will not be a major issue of concern at the start of
the business. We shall mainly concentrate on employing competent workers with good listening
skills, higher levels of competitiveness and confidence, and goal oriented. All employees will be
subjected to training sessions on how best they can carry on their duties. Sales staffs will be paid

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monthly wages and will be given commission as per the products they sell. Bonuses through
sales incentives will also be provided to boost the morale of employees.
Personal qualities
Individuals with passion will be retained to work in the business. These will entail
individuals who are not just interested in meeting specific goals but individuals who will be
working towards achieving higher goals. Secondly, highly ingenious employees will be
preferred. These are specifically people who express higher levels of creativity and develop
extraordinary ways of solving problems, (Ashe-Edmunds, 2018).
Finance
Style Activewear will need a minimum of 500000 dollars to set the business into
operation. Business loans and investors will be primary sources of funds. The funds obtained
from loans will be used to meet operating expenses like wages, rent, utilities and marketing.
Funds obtained from investors will be used to pay for operating costs such as buying raw
materials, painting and buying of display fixtures, (Ashe-Edmunds, 2018).
Forecasting
Revenue projections
As per our marketing plan, the size of the store, the nature of the products which will be
sold and its location, we are expecting to obtain sales of 300,000 dollars in the first year, 450000

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dollars in the second year and 600,000 dollars in the third year. The average cost of the products
sold will be 30%, meaning that we shall remain with a gross margin of 70%.
Break even analysis
The minimum fixed costs to be incurred by the business per month will be 20000 dollars
per month. We shall therefore be required to obtain sales of approximately 30000 dollars per
month at the break-even point of the business. In every month, the business will obtain profits
even before the end of the 1st year.
Cash flow projections
Conclusion

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This business plan provides details of all the activities to be carried out to ensure efficient
operation of the business as well as achieving the set goals. Successful implementation of all the
procedures stated in the business plan will greatly contribute to the success of the business.
However, there are several challenges that may be encountered in the process of implementing
the plan.