<<WARDROBE BOUTIQUE>>

BUSINESS PLAN

<<Prepared by: Shivani Bhadoria>>

<<25-04-2015>>

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This is a business plan. It does not imply offering of securities.

Executive Summary
Wardrobe Boutique is a new apparel store that caters to the people. Our focus is to provide
customized wear apparel and accessories, and position ourselves as the top retail store servicing
this particular market.
Our intentions are to obtain market share and become a central hub of shopping activity for the
local population who enjoy wearing fashionable apparel.
Wardrobe Boutique will be located at Gole ka Mandir. Wardrobe Boutique has centralized itself
directly in position to the residential location and social activities of our target market. We
believe that this is critical to our initial success and long-term growth.

Purpose:1.
2.
3.
4.
5.

To create a shopping environment that caters to the apparel needs of the local people.
To receive a 50% profit margin within the first year.
To have a customer base of 500 by the end of the first operating year.
To create employment opportunity.
To conserve and uphold culture and values by providing domestic products as well as
international products.
6. To generate scope for enhancement for related industries like those who provide the raw
material.

Product:Designer apparels for mens and womens

Ethenic wears
Curtains and Bedsheets
Others

Company Description
Start-up
Requirements
Start-up Expenses
Trade License
Grand Opening Event
Telephone & Utilities (3 months)
Infrastructure Development
Store Fixtures/ Decorations
Factory
Staffing and Recruitment
Advertising & Promotion
Raw material collection
Purchase of Machinery
Installation Cost
Business/Office Supplies/Stationary
Accessories (Dices, Frames)

816.5
8164.5
1224.67
122467.28
16328.9
16328.9
12246.73
57151.40
57151.40
8164.5
816.45
8164.5

Total Start-up Expenses

325354.73

Note: It will take 8 weeks to prepare for and start the venture.

Products and services

Wardrobe Boutique will carry traditional wear brands. The greatest percentage of merchandise
will be in apparel, followed by accessories, and gifts.
Management will rely on customer feedback, suggestions, and sales reports to introduce or
eliminate certain brands, styles and sizes.
Designer wears for mens and womens
Traditional wears
Curtains and Bedsheets
Accessories
Others
SWOT analysis
Strength
1. Premium pricecharged to reflect innovation and creativity.
2. High quality rawmaterials are collected from renowned fashion house.
3. Timely delivery forordered products.
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4. The location of theshop is very much favorable.

Weakness
1. Being a new entrant is one of theweaknesses of the boutique shop.
Opportunity
1. A partiallyfulfilled customer need is a great opportunity for the shop.
Threat
1. Increasing market price of rawmaterials and labor.

Market Analysis
Market Analysis Summary
The primary target customer of Wardrobe Boutique Shop will be the local people in the City
Centre region , Gwalior. As we are situated in the center of the residential community we believe
they will make up the largest percentage of our customer base.
The last target customer of Wardrobe Boutique is listed as other. As popularity about the store
increases we expect to see an assortment of curiosity seekers as well as seasonal purchasers
during festival season.
Market Segmentation
The Higher class population of Gwalior is concentrated heavily in City centre , therefore leading
to the highest concentration of our customer base.
The last area of potential customers is labeled as "other." Because Wardrobe Boutique offers a
variety of innovative and creative apparel, along with accessories and gifts we feel that we will
attract many curious shoppers. Our ambience and customer service will make them repeat
customers.
Market Analysis
2015
Potential Customers

Growth

Local People

10%

Other

10%

Total

35%

Target Market Segment Strategy

The goal of wardrobe Boutique is to serve the local community that has difficulty finding
innovative clothes.
These markets are underserved in the major boutique retailer outlets.
Market Needs
There are several important needs in the boutique business that are being either underserved or
not met at all . Wardrobe Boutique Shop plans to meet and service those needs.
1. It will provide a large assortment of sizes to compliment the various body shapes and
sizes of the local community.
2. Focus and attention to customer's personal preferences and customer retention will be
given high priority. Because of the high rate of employee turnover at major mass
retailers, customer service and personal detail has been lost.
Market Trends
Millions of people around the world instantly recognize and identify with traditional apparel.
Our traditional clothing has survived many eras. There will always be a future for traditional
apparel. Within the last two years the traditional look has made a comeback in the fashion
industry. Wardrobe Boutique intends to use its place in the community to heighten the awareness
of the culture in India.
Market Growth
Market growth is in an upward motion, despite some of the latest economic downturns in our
country. Now a days, Gwalior has become a centre of economic and cultural activities because of
the establishment of various educational institutions and other organizations. People from other
areas are coming to Gwalior for study purposes. Moreover the number of working women are
increasing in the city who are very much concerned about their attire. Gwalior has also been
designated as the city of culture in the country. Every year So many tourists are coming to
Gwalior.

Competitive Advantage
Competitive Comparison
Wardrobe Boutique has a number of advantages that will allow us to build our brand identity,
add value to our merchandise and build a loyal customer base while standing apart from our
competitors.
1. The 'Wardrobe Shopper Card' will entitle customers to a 15% discount after ten
purchases.
2. We will offer clothing to fit plus size for all.
3. We will create a sense of culture and bonding with the community by offering products
that combine both the culture and innovation.
4. Our location is central to our target customer base.
5. We will maintain a detailed record on each customer, logging addresses, their purchases,
size, and brand for customer follow-up and in-house promotional purposes.

Marketing/Sales Strategy
Marketing Strategy
Our marketing strategy will focus heavily on sales promotion, niche positioning in the market
and customer service with loyalty and retention in sales.
1. The marketing budget will not exceed 5% of our gross annual sales.
2. Our promotions will always stay in tune with our company objectives and mission
statement.
Positioning Statement
For the more full-bodied individual seeking creatively designed apparel, Wardrobe will offer
brand traditional wear in a larger assortment of styles and sizes that aren't always readily
available in the mass apparel retailers.
Promotion Strategy
Wardrobe boutique will follow an aggressive yet creative promotional plan. This will allow us to
focus directly on our target customer while still being conservative with our advertising money.
Distribution Strategy
Our retail location will be the foundation of building our customer base. We will also manage a
direct mail program that will focus on our top 50% customers spotlighting any in-house sales and
promotions.
Marketing Programs
Our marketing programs will consist of the distribution of 500 color flyers twoweeks prior to our
grand opening event.

Sales Strategy
We will offer a 14day return/exchange policy to build trust with our customers and maintain
retention and loyalty.
Sales Forecast
The following table and chart give a highlight on forecasted sales. We expect sales to start off
conservatively and increase extensively during the holiday shopping season and during the
months of summer.
Wardrobe planned for a steady growth for the first year as we build name recognition and status
in the community. In the second and third year we look to see an increase of revenue of 20% as
we gain a larger percentage of the market share and increase our customer base beyond the
southwest part of the city.

Projected Item wise Sales by 1st Year

Item
Ethenic wears
Designer apparels
Bed cover
Curtains
Others

Revenue (Rs.)
180,000
220,000
60,000
62,000
15,000

Pricing
Pricing Strategy
Wardrobe will maintain a premium pricing strategy. We base the product lines that we carry on
their reputation and quality as clothing. Most of our lines come with a suggested retail price that
we will follow. We will also utilize the standard practice of key stoning as well.

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Management Summary
Employees will be encouraged to work within their creative, physical, and intellectual
boundaries. All duties will be divided and delegated according to strengths and weaknesses. At
Wardrobe we will expect a high degree of customer service skills and personality as this is
essential to our success.
Organizational Structure
Wardrobe Boutique is a small business and therefore requires a simple organizational structure.
All decisions are made in-line with the company objectives. Employee tasks are delegated based
upon their level of expertise, creativity, strengths and weaknesses.
Management Team
All partners will be responsible for all administrative functions, purchasing ,inventory control,
and promotions. They will also act as a part-time sales representative.
Personnel Plan
The personnel plan is included in the following table below. There will be six full-time employee
and two part-time employees working 20-30 hours per week. All employee's will benefit from a
one day paid holiday on their respective birthdays and one week of paid vacation after twelve
months of employment.
At this time medical benefits will not be offered to employees. As profits increase in the future
medical benefits will be offered to all employees.

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Financial Projections
Financial Plan
The growth of Wardrobe Boutique Shop will be moderate and the cash balance will always be
positive. Being a retail environment we will not be selling on credit. We will accept cash. Later
we will accept checks, and all major credit cards. Marketing and advertising will remain at or
below 5% of sales. We will continue to reinvest residual profits into company expansion, and
personnel.

Benchmarks

Break-even Analysis
A break-even analysis table has been completed on the basis of average costs/prices. With fixed
costs of Rs.280000, and sales of Rs. 700000 we need Rs. 576488 in the first year in sales to
break even.
Fixed Expenses
Showroom
Factory
Machinery
Installation Expenses
Preliminary Expenses

150,000
20,000
90,000
10,000
10,000
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Total

280,000

Calculation of Break Even Point

Sales
Variable Cost
Fixed Cost
Contribution Margin
Contribution Margin Ratio

700,000
360,000
280,000
340,000
0.4857

Break Even Sales

576,488

Break-even Chart

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Business Ratios
Business ratios for the year of this plan are shown below.

Current Ratio
Liquid Ratio
Inventory Turnover
Total Asset or Capital Turnover
Net Profit Margin
Return on Investment
Return on Equity

4.33
3.00
3.84
0.96
0.28
0.26
0.51

Profit & Loss Accounts

Projected Profit and Loss
The following chart and table will indicate projected profit and loss.
Profit Yearly

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Balance Sheets

Assets

Liabilities

Amount

Amount

Machinery

100,000

Capital

386,000

Less: Depreciation

19,000

Add: Net Profit

Net Worth
Creditor

195,200

Cash
Accounts Receivable
Inventory

81,000
393,000
157,200
100,000

Total

731,200

581,200
150,000

731,200

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Cashflow
Income Statement

Sales
Saree
Salwar Kameez
Kids' Item
Bed cover
Cushion cover
Curtain
Others
Less: Cost of Goods Sold
Direct Material
Direct Labour
Factory Overhead
Factory Rent

700,000
180,000
220,000
85,000
60,000
78,000
62,000
15,000
384,000
206,000
144,000
10,000
24,000

Gross Profit

316,000

Less: Operating Expenses

Showroom Rent
Staff Salary
Maintenance Expenses
Utilities
Stationary
Depreciation
Advertising Expenses

120,800
36,000
48,000
4,000
4,800
3,000
19,000
6,000

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Risk Management
The risks that may occur in this project are:
1. Pure Risk: The revenues and cash inflows of the project may be lower than the expected
indifferent years.
2. Systematic Risk: Political changes may hamper the production of the project.
3. Unsystematic Risk: Workers may go for strike, which may hinder production process.
4. Market Risk: Macroeconomic factors like inflation can have an impact on the project and
fluctuation of demand. Cost reduction and increased production may be a way out but it will
become difficult to maintain quality.
5. Instrumental Risk: The machineries may go out of order any time. So the business runs the
risk of machinery shortages.

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