2018-2019

Business Plan

(248)-328-3200
Alset.Corporation@gmail.com

http://alset-corporation.weebly.com
East Holly Road, Holly, MI 48442
 Table Of Contents

Executive Summary

 Executive Summary…………………………………………………………………………………………………………4

Business Rational

 Customer Empathy………………………………………………………………….………………………………………5
 Problem Statement…………………………………………………………………………………………………….……5
 Ideal State………………………………………………………………………………………………………………………..5
 Company Goals……………………………………………………………………………………………………………...5

About Business

 Company Overview…………………………………………………………………………………………….………...6
 Mission Statement…………………………………………………………………………………………….…………...6
 Organization…………………………………………………………………………………………………….…………..…7
 SWOT Analysis……………………………………………………………………………………………….……………..8

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External Environment

 Current Economic Conditions…..……………………………………………………………………………………….19

 Industry Analysis – Real & Virtual..…………………………………………………………………………………..10
 Competitive Analysis……………………………………………………………………………………………………..10-11

Marketing Plan

 Target Market & Market Segmentation…………………………………………………………………………..12

 Marketing Mix……………………………………………………………………………..………………………………..12-13
 Discussion of Business Risks………………………………………………………………………………………….13

Financial Planning

 Break Even analysis………………………………………………………………………………………………………..14

 Income Statement………………………………………………………………………………………………..............15
 Balance Sheet………………………………………………………………………………………………………….........16
 Sales projection……………………………………………………………………………………………………………....17
 Financial Write-up………………..……………………………………………………………………………………......18
 Balance Statement………………………………………………………………………………………………………….19
 Cash Budget…………………………………………………………………………………………………………………...20

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 EXECUTIVE SUMMARY
The mission statement for our company Alset is, to make clothing that everyone will love. Our
clothing is always comfortable and stylish. We assure you that everything made in our name is
guaranteed to reach full satisfaction of our customers. At Alset we are always working towards
bettering our creations and designs in order to stay on top. We are a small but close team that
is capable of reaching any and all achievements put into perspective.

Alset’s product is high quality clothing and low priced for teens and young adults. We serve our
communities by giving money to the charities of the city.

Our company goal is to have a wide variety of designs and consistent sales, reduce business
expenses, and to increase popularity on social media. We hope to expand our shop to new
lengths, so that there is something that appeals to everyone.

We plan on accomplishing this by researching cheaper materials and capital that allow us to
maintain the quality of the product, but spend and invest less on the items used. We want to
have a wide variety of designs, consistent sales, reduce business expenses, and increase
popularity on social media.

Our business rationale goes over customer empathy, our problem statement, ideal statement,
and company goals. Our customer empathy includes our company helping the people stay in
fashion and in trend. Our problem statement focuses on the problem that our company could
face during the transition of new trends or when the seasons change.

The ideal statement helps us adjust to the new trends and the season changes as long with
the comfort of the clothing. Our company goals show where we what we will need to succeed
and how to accomplish it. We acquired an angel investor with an investment of 50,000 dollars.
Our angel investor predicts our company doing really well in the future and sees the potential
of Alset. We are applied for a small business loan for $150,000 to progress our company even
further. Our company is a young, new company that is on the rise for new things and as a
young company, our thriving and improving results are exceeding what we thought what would
ever happen.

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 Business Rationale
Customer Empathy: People around the United States are constantly looking for new fashion and new
clothes. Trends, individual sizes, seasons, and general needs are always changing, developing a
year-round need for clothing. Fashion has changed greatly over the years and as it continues to
change, the nation needs clothing to keep up with the trends. The need for clothing grows as time
passes, the more a person grows, the need increases in order to match physical growth and personal
growth portrayed in clothing. As seasons change, people need clothes to match the climate and
weather. Our approach is with seasonal clothing will satisfy that need, providing trendy clothing of all
sizes that match the external needs of the customers.

Problem Statement: The problem that the United States is facing is the need for clothing. Clothing is a
standard product owned by all and every citizen. People grow. Trends develop. Seasons change.
These evergrowing aspects of clothing need to be satisfied. People have the desire to be current and
updated with the times. In order to be comfortable, people have to own clothing that matches their
size and keep them comfortable during every and all season. Clothes have become more and more
of a necessity.

Ideal State: Alset Clothing addresses the need for clothes that are trendy, seasonal, and comfortable
by providing clothing of all sizes geared toward all seasons that match the current trends.

Company Goals: At Alset, the aim is to have a wide variety of designs, consistent sales, reduce
business expenses, and to increase popularity on social media. Shop expansion is a major goal to
new lengths, so there’s something that appeals to everyone. This will be achieved by creating more
designs to add to Alset’s store. Another goal is to have consistent sales and constant income. A way
this can be achieved is by increasing advertising, really getting the word out about our company, to
bring in more customers who frequently purchase from us. Another goal of ours is to control
expenses while giving our customers the most. This will increase income and overall profit. By
researching cheaper materials and capital that allow us to maintain the quality of the product, but
spend and invest less on the items used, this is very possible. Lastly, Alset plans to up the social
media game. This includes frequent updates on Instagram, Twitter, and other media platforms to
increase follower count and develop interest in our product.

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 About The Business
Company Overview: Alset is a urban contemporary company with focus on the cities of
tomorrow. Alset filed as a C-corp company which means the company is taxed separately from
its owners. Alset has acquired our first angel investor Jim Carlisle Co-owner of Mr.Mat who has
graciously invested 50,000 dollars to Alset firm. And in return will be receiving a commensurate
number of shares to Alset. Alset started with a loan of $20,000 with an interest rate of 7.25%.
Alset opened for business on October 1st 2018,in Holly Michigan. Alset is stationed at 6161 E
Holly Rd, Holly, MI 48442 The High School for Holly Michigan. Alset sells a variety of clothing
mainly for teens to young adults. The construction of the products that Alset sells is a variety of
cotton and polyester. To advertise the business Alset will use social media apps such as
Facebook, and Twitter.

Mission Statement: To create a new definition of fashion and style.

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 External Environment
Current Economic Conditions: Alset’s Interest rate is 7.25%. The United States interest rate is 2.25%,
we are seven percent higher than the United States interest. Due to the fact that we are a new
company and have not sold much our interest rate is quite high and in order to bring this down we
need to get immersed into the economy and grow our company.

Alset does not have an inflation or deflation rate, but the United States economic inflation rate is
1.9%, this is a pretty solid rate, and since the economy is putting out more money, people have more
to spend and are willing to spend more. We will keep our prices steady unless the inflation rate goes
up, because that will mean that people will not be willing to pay more for a product.

The United States GDP growth rate is 2.3%. Alset does not have a GDP rate due to are slow start
and lack of sales right now. Alset plans to grow and have a higher GDP as we progress as a
company and grow our clientele.

The Balance of trade In the United States regarding in goods and services was $566 billion in 2017.
Imports were $2.895 trillion and exports were only $2.329 trillion. The U.S. trade deficit in goods,
without services, was $810 billion. The United States exported $1.551 trillion in goods. Alset has not
sold anything outside of our country or even inside our country, so due to that we can not determine
our balance trade.

The Euro is $.87 Cents, South African Rand is $14.42, Canadian Dollar is $1.31 Dollars, Chinese
Yuan is $6.94 Dollars, the exchange rates depends on where you go around the world, some could
be higher rates and some could also be lower. Alset at the moment does not have any exchange
rates right now, but later on in the future we will.

The interest rate can be scary for us because if the interest rate goes up then the cost of our loan will
go up.The rate of changing items can make us lose customers but could also make us gain
customers. Also with the dollar change in different countries, could affect us because if the dollar is
higher in South-Africa then we could lose customers, if the dollar is less than we could have more
customers.The current GDP is good for us because since it is positive is make the economy want to
buy more

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Industry Analysis: Analysis on apparel is clothing from shirts, pants, hoodies, and accessories. Alset
is also doing clothing that goes with the current season. Hoodies and pants will be sold in the winter.
T-shirts and shorts will be sold in the summer. During Fall, Alset will present their customers with
flannels and jeans. Spring items will be raincoats, windbreakers, zip up jackets. Accessories will be
sold all year like lanyards, backpacks, and watches. One of our competitors is Waybounding. Another
clothing store in Fenton, Michigan and they are selling more of professional and sports type clothing.
We are selling seasonal and everyday wear. Their prices are less expensive than our prices. Their
bundles are only three hundred to four hundred dollars and ours are around eight hundred to nine
hundred dollars. We have the highest quality in our clothing and partial percentage of our profits goes
to cities that desired our design. The winter season is coming up and we want our Winter Bundle to
sell. In our Winter Bundle there’s hoodies, long sleeves, quarter zips, and crewnecks. Our Winter
Bundle is eight hundred and fifty dollars and it comes with all of our items for winter to keep you warm
and looking good during the cold days. For the Spring Bundle that includes long sleeves, t-shirts, and
sweatpants. The cost for the Spring Bundle is seven hundred and sixty dollars. Normal bundles on
clothing are like four to six hundred dollars and ours is more expensive but we have more to give with
our clothing and profits.

Competitive Analysis: Fenton High school located at 3200 W Shiawassee Ave, Fenton, MI 48430 is
selling clothes just like Alset. They have always been a big competitor to us as a school and now as a
company. Fenton’s bundle of clothes cost you the highest of $400.00 and the lowest of $250.00,
while Holly's clothes bundle will cost you around $915.00. A big threat to us is that Fenton has been
selling clothes for four years now and we have only just started in 2018. Due to them having a longer
range of doing this, they will have a bigger clientele than Holly. With them Being so experienced and
them knowing what they are doing it really hold us back because this would of been our first year to
do something like this. But with us growing and us becoming to be more experienced we do plan on
being more successful and being more informed with situations and having a big clientele with people
from all over the the United States and other countries. Fenton for a long time as always been in
competition with us and everything we do, so that makes things very fun and always very interesting.
We have many more people to compete with such as Milford, Lakeland, Owosso and so much more.
We are competitors to them and they are competitors to us because They all want the same thing,
and that is customers and they also want their revenue. So with all those school they will try their
hardest to do whatever they can to reach their goals and make sure they dont go bankrupt. They all
don't have clothing and accessories like alset does but they do have good products that could draw
customers towards them more. Some may have car parts, some may have hair products, a company
might even be selling both. Everything to us is a big competitor to Aslet just because everyone is
selling something which could take our customers away from us and put them in someone else's
hand. That's why our goal is to please our customers and make sure they have every want and need
they desire. We will stay focused and make sure no one is put in the back. If you want something we

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will do our best to make sure you get that. That is something you can always count on Alset to do for
you.

Competitive Analysis (Continued): The profitability is eleven percent among all top 500 companies.
Alset will profit around three to four percent profitability, when we sell majority of our inventory. Our
inventory is not the cheapest, but it is really good quality and we will do what we can do to make sure
we make profit out of our product. The average clothing company profitability is three percent. So with
that being said Alset is in the profit range and we plan to keep growing and to raise our inventory.

We want to think of bigger and brighter ideas. Alset wants our customers to be satisfied with each
and every product that they buy or plan on buying. As a company we plan to go beyond what we can
do, to show how determined we are. We compete with someone or companys every day so it's our
job as a strong, determined company, to keep pushing through the challenges and to keep our
customers satisfied. If somehow we go south you can always count on us to go north again.

In one year we should make around $49,500 in retail. We do not want to be bankrupt as a company
so being behind or even just a little bit behind in revenue can really damage us. Alset wants to go far
and not bankrupt. We need to stay consistent and but also we need to keep on making new products
and items to help us grow. Alset will be very supportive to our customers and we will also try our best
to give our customers the best of their spending, with the quality of our product.

Our product will be for the middle class and our clothing will range from what you buy. When we
make profit a certain percentage of our profit goes to different cities around the world. Our product is
for the middle class due its fashion style. Anyone can buy our product but we see more of teenager
and mid 20 year olds wearing this product. We love our customers so once again we will do what we
can do to make sure our customers keeping coming back.

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 Marketing Plan
Target Market: Our plan for branding consists of online ads to a local audience and national
audiences as well as on social media to go around the world. These ads will include capturing
pictures of our products as well as the prices of the items being showed. Another way we plan to get
our name known is to participate in trade shows. These trade shows will be a good way to get our
name known because we can advertise to many different groups of people in person with products on
hand to sell. We chose to market this type of clothing because we feel this is what the consumer
would want the most, good quality and clean fitting upper body products for males and females, and
sweatpants for the lower body portion. We studied what teens and young adults were looking for in
clothing to try and create the perfect product for them. Also we have designed warmer clothing
because it is heading into the cooler parts of the year and we want our consumers to stay warm in our
clothing, also they could be re-worn around the year if you get cold easily. Living in a warmer climate
you could also get t-shirts or long sleeve shirts depending on your personal opinion. The benefits to
buying our product would be that certain articles of clothing that are purchased, a percentage of that
profit would go to a charity to try and help cities around the world.

Market Mix: In the first year we plan to sell bundles, we will have 2 long sleeves for $140, 2
hoodies for $320, 1 ¼ zip for $125, 2 sweatpants for $250 for the Winter Wonder Bundle
totalling $850. 4 T-shirts for $185, 4 long sleeves for $280, 2 hoodies for $320, 2 sweatpants
for $250 for the City Life Bundles totalling $915. 4 long sleeves for $280, 4 T-shirts for $185, 2
sweatpants for $250 for the Spring Bundle totalling $760. For the Spring Bundle we plan on
selling 25 a month, for the Winter Wonder Bundle we plan on selling 25 a month, and for the
City Life Bundle we plan on selling 25 a month totaling around 1000 a year, 75 total a month
combining the three. We created these prices for the product by calculating between materials
and labor that these would be sufficient prices in order to make enough profit to keep Alset in
business. Our product is made out of a certain blend of different fabrics. Our long sleeve shirts
are made out of a 65/35 cotton/polyester blend. Our t-shirts are made of a 65/35
cotton/polyester blend. Our hoodies are made of a 80/20 cotton/polyester blend. The crewneck
sweatshirts are a 80/20 cotton/polyester blend. Each item we will be selling has a different
price, we based the prices on our competitors prices and will be selling them cheaper, this is to
give people another reason to purchase our clothing, another reason that people will buy our
clothing is because of the quality of each piece. We offer specific color products so that people
won’t have as big of an issue choosing as they would with other companies Our plan to get our
name known consists of online ads to a local audience as well as on social media. These ads
will include capturing pictures of

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our products as well as the prices of the items being showed. Another way we plan to get our name
known is to participate in trade shows. These trade shows will be a good way to get our name known
because we can advertise to many different groups of people in person with products on hand to sell.
We chose to market this type of clothing because we feel this is what the consumer would want the
most, good quality and clean fitting upper body products for males and females, and sweatpants for
the lower body portion. We have also designed warmer clothing because it is heading into the cooler
parts of the year and we want our consumers to stay warm in our clothing, also they could be re-worn
around the year if you get cold easily. Living in a warmer climate you could also get t-shirts or long
sleeve shirts depending on your personal opinion.

Business Risks: Some risks that may keep us from achieving our goals are the looks of the products,
another risk could be the prices of our product by being too high or even the looks which will most
likely not be the case.The last reason would be not getting our name out to be seen by our target
market. Some strategies that we will use are ads on social media and making sure that our prices
beat the competitors while still making a significant profit, the last way will be looking at what teens/
young adults like and using that to make our product

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 Financial Planning

Break Even Analysis:

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Income Statement:

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Balance Sheet:

How much is in the How much is in the

October Loss Increase account November Loss Increase account
10/1 $0.00 $0.00 11/05/2018 $10.70 $18,327.18
-
10/08/18 $179.55 -$179.55 11/9/2018 -$18.95 $18,308.23
-
10/09/18 $188.82 -$368.37 11/8/2018 $979.05 $19,287.28
- -
10/11/2018 $116.83 -$485.20 11/8/2018 $109.24 $19,178.04
-
10/16/2018 $509.74 -$994.94 11/9/2018 $909.50 $20,087.54
-
10/18/2018 $0.00 -$994.94 11/9/2018 $112.22 $19,975.32
-
10/20/2018 $265.00 -$1,259.94
10/23/2018 $20,000.00 $18,740.06
10/29/2018 -$39.21 $18,700.85
10/30/2018 -$97.07 $18,603.78
-
10/30/18 $121.80 $18,481.98
-
10/30/2018 $165.50 $18,316.48

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Sales Projection:

Winter Wonder Bundle City Life Bundle Spring Bundle

October 20 30 15
November 30 40 25
December 25 35 20
January 20 30 15
Feburary 20 30 15
March 20 30 15
April 20 30 15
May 20 30 15
June 10 15 7

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Financial Write Up:

Alset is a startup company, as such we were been able to get two loans; one of $20,000 and the other
is of $50,000. Supported by payable and receivable sheets Alset is financially organized. Getting off to
a rocky start with our first sale losing money. We changed to bundles only instead of bundles and
individual clothing items.

In our revenue we have not estimated the cost of donating to cities. For every City Life Bundle we donate a
percentage of profit to a city. The city donated to depends on the customer. When a bundle is purchased the
customer is asked what city they would like to be donated to.

Our loans do not cover all expenses. As such we are not making a profit on our products, as we need to pay
our expenses. Our products do have a profit margin, raging in the 700s to the 800s. Our Expenses in October
were $57451.75. That continues for every month, it fluctuates a little bit, but generally stays the same. We are
planning on making our first bit of profit in the month of May. The profit planned will not be enough to sustain
profit for long, in June the profit disappears. The most profit will probably come in the years to come, as start
up cost along with having some money and plan will be in play.

Alset is not promoting anything at this time and that could be an effect, we have not, cooperate wide, planned
any type of advertising at the moment, individuals have had ideas. The company has no new products as of
yet.

Alsets home base is a good place for us as of right now, being the small business that we are. We are not
planning on moving or upgrading on a large scale at the moment.

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Balance Statement:

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Cash Budget:

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