How to Structure a Business Plan On Fashion Designing- Are you considering starting a fashion design company? This article contains a complete guide on how you can structure your fashion design business plan template . This content considered all the requirements for beginning a fashion design company. So even if you’ve graduated from Parsons School of Design or you are just a graduate of a smaller fashion school, you can’t just think of creating your own fashion empire without designing a business plan. So read on to find out how you should structure your fashion design business plan;
Why is A Business Plan Important For My Fashion Business?
Operating a fashion business is challenging and time-consuming, but the ROI can meet your age-long dreams – if you are dedicated to sticking to your plan.
With that in mind, when you are writing a business plan for starting your own fashion studio the plan is expected to include an executive summary, the company’s vision statement, market and competitive analysis, it should also give guides to the ways your company will position itself to take good advantage of the target market in question.
Requirements Needed to Open a Fashion Business/Store
To start a fashion business , you will be requiring the following:
- Fashion training
- A fashion business plan
- Business registration
- Capital to start your business ( depending on the business size)
- A business page on different social media
- Sewing shop or sewing space
- Sewing machines and other kinds of machines needed
- Facilities and furniture
- Generator set or Source of Electric power
- Electric iron
- Other sewing materials which includes needles, measurement tape, scissors, to mention but a few
How to Structure a Business Plan On Fashion Designing
1. Start With the Executive Summary
The executive summary of your fashion business plan is the just another word to explain an elevator pitch that narrows everything down to two paragraphs. Your executive summary should be structured in such a way that it highlights the following
- The name of your fashion business,
- The area where you want to operate,
- The type of clothes and accessories you plan to create, and lastly
- Your target market.
For instance, if you were working on a high-end, haute couture dress, your executive summary could contain the following, “GSG Haute Couture is open to wealthy women from 30 to 60 in San Francisco. Our location in the heart of Beat Corner will assist us draw the well-to-do shoppers in the city who are searching out for designer-quality clothing at pocket-friendly prices.
2. Continue By Expressing Your Vision & Selling Proposition
This section will give prospective investors better understanding about the kind of clothes and accessories you’re going to deliver in your fashion business and the market that you wish to attract. For instance, if you’re choosing to focus on hip-hop street wear, you should be able to explain to your customers how that street wear will serve their wants, needs as well as the tastes of your targeted market. Also, you are expected to express a unique selling proposition, this proposition is is basically the thing you believe will give your clothes extra preference apart from other brands in the industry. For example, if your source of hip-hop street wears are produced using sustainable fabrics, it can be a good mark to differentiate and brand the fashion business of yours.
3. Do A Proper Market Analysis
Having a clearer definition of the target market you are going into is vital to assisting prospective investors have a better understanding on how they will get a return on the investment ROI for purchase they have made. The common mistake fashion designers usually make while drafting their plan is that most of them make their market definition too broadly. For instance, if you’re working on comfortable beachwear and you clearly state that your target market is “Ladies between the ages of 30 and 50 who enjoy to spend much of their time at the beach,” you’ve not structured the target market properly, because your market is too broad and undefined.
To call for more specificity and to get the right target, you should write that your target market is, “active Ladies who are between 30 and 45 and are earning say $45,000 or more who are willing to spend up to an average of $2,000 per year on shopping for casual clothing and accessories. This market analysis is also expected to explain how your business will capitalize on the current fashion trends, it should explain how your pricing structure is unique when likened to that of your main competitors, and how your fashion business will meet an untapped category in the market.
4. Describe the Manufacturing Process to Utilize
Designing process in fashion is a crucial thing, but the manufacturing process for clothes and accessories for a product line needs that you put down a detailed plan. Their are queries you must answer in this part of your plan, these questions include but not limited to the following: Where do you go to manufacture your clothes? Do you have estimates with different manufacturing companies? If you’re making use of an overseas manufacturing company, how do you intend to structure the pricing system?
5. Describe the Distribution Process For Your Business
After you’ve successfully crafted out your plans to design and manufacture your clothes and your accessories, you will then have to give full explanations of your distribution plan. You may also consider hiring the service of a distributor to assist you get access to retail stores in the industry as well as big trade shows there you can let them see your designs and you can secure orders from fashion retailers who are on independent operations.
6. Your Financial Plan Should be Included
Your fashion company’s financial plan is expected to include the company’s financial statements that reveals the relative health of the business and the plan to let the investors and lenders aware of the Important company data. An income statement addresses how much revenue that is expected by the designer to generate, including the costs that the designer expects to employ as the clothing line is progressing in development. The financial plan should also cover a break-even analysis that will inform your potential investors about the threshold of profitability.
For example, you could structure it this way, “GGG Street wear will adopt a mild growth plan, with the aim of always having a cash balance in a positive end. The payment option available in our company will cover major credit cards, cash and checks. The break-even analysis is on the basis of the average costs and prices has been rounded-up. With fixed costs up to $6,000 and $50 for an average sales, and up to $25 in variable cost averagely, the business will require up to $12,500 per month in sales section to break even.”
With a well-structured business plan for your fashion business, constant growth in sales in 12 months is sure, it helps you to generate customer satisfaction so that at least 60% of the customer base comes back on a repeat business. Business plan helps business owners to provide quality product at reasonable prices with good services.
Frequently Asked Questions
What are key elements to a fashion business plan?
The 10 most important elements for a clothing business plan are the business executive summary, business overview, product/service description, market analysis, competitor analysis, marketing planning, sales strategy, production plan, operation plan, as well as financial projections.
What is the business description of a fashion designer?
Fashion designers either design haute couture or ready-to-wear clothing.