Business Plan
The Background Information
Business and owner details:
Name: Sian SweetAge: 21
Business name:
Designs By Sparky
Owners name:
Sian Sweet
Business address and postcode:
9, Burford RoadWheaton AstonStaffordshireST19 9NT
Business telephone number:07730415827
Business email address:[email protected]
Home address and postcode (if different from above):
17 Oakshaw CloseCovenWolverhamptonWV9 5DU
Home telephone number (if different from above):
01902 798 649
Home email address (if different from above):
Executive summary
Business summary:
The idea behind my business is to encourage people to revamp garments within their wardrobe and to make fashion more sustainable by encourage people to buy quality clothes rather than cheap and disposable ones. My products are badges and pins which carry two vigorous meanings; one being a form of status/achievement and another showing a way of life. Products will be expressive, humorous and playful allowing the customer to create an identity and project their personality through their clothes. An online store has been chosen as the selling platform due to my target market of 18-35 year olds who are very influenced by online shopping and technology. Sales to begin with will be restricted to the UK due to high expenditures for postage. When a loyal customer base forms from within the UK my products aim to be sold worldwide. As a sole trader I will not be producing the products myself as these will be out sourced to allow me to focus my time more on the creative and business side of brand. With a handful of responsibilities such as designing, delivering and placing orders, updating the website and maintaining interaction with customers I have secured potential volunteers for the near future, these relationships could grow and with successful candidates and business profits I could then offer then offer secure job roles.
Business aims:
Year 1:
To create a strong existence on Instagram, Facebook and YouTube which will help generate a closer connection with customers. I aim to sell all products produced within the first 12 months.
Year 2:
Start researching and sourcing other products I can offer alongside my badges and pins to broaden my horizons. By year 2 customers will expect to see a more diverse range of products and this will ensure my brand doesn’t date too quickly due to pins and patches going out of fashion.
Year 3:
Purchase a lorry/van to enable me to have an on the go tour/pop up shop to create a more personal experience for the customer. This will enable me to get more involved with my customers and generate more advertisement for my brand via word of mouth.
Year 4:To purchase my own embroidery machine and produce badges from home with hopes to create a higher profit than previous years by doubling sales and offering a customised approach to designs.
Year 5:To earn enough to cover both my personal survival budget, fixed and capital costs which is £159.17 per month. Therefore an estimated annual income of £1910 would cover my cost but I want to earn more to project back into my business therefore I would like to turn over £6000 in my fifth year.
Elevator pitch:
The business aims to highlight sustainable issues in both production and sales. In production we aim to use recycled materials and in the sales sector use less packaging to deliver our products. Our focus is to encourage customers to buy quality over quantity when shopping and to reuse past generations clothing by offering badges and pins that enable them to create a new style or look. The badges and pins aim to satisfy customers who are always looking for a way to stand out from the crowd.
Owners background
Why do you want to run your own business?
I have decided to start my own business as I believe becoming a designer/illustrator for a large company/employer doesn’t give you much rewards other than financially. Since a young age, for as long as I can remember I have always been entrepreneurial from selling sweets on my front lawn to revamping and selling furniture from thrift shops. I feel this is the right choice for me as I am dedicated and constantly motivated by both challenges and rewards. I am keen to start my own business and make it a success to prove to myself that I can do it and reap the rewards in various ways. After attending university I have developed a strong understanding for the fashion industry and feel I can apply this knowledge to my start up business. By working with manufacturers I can implement and focus on my time keeping and organisational skills to help make the business a success. Although I will be outsourcing my products I am already aware how they are produced and in the near future could produce the goods myself.
Previous work experience:
PureClassDesign and Sample Technologist
1. Designed bespoke dance and evening wear for national and international customers.2. Created final illustrations to be sent to customers and sourced all materials/components needed for design and manufacture.3. Produced various products from start to finish.4. Relied on to problem solve and make decisions within the manufacturing stages.5. Dealt with basic admin activities such as answering the phone, replying to emails, editing images for the website and updating stock numbers online.6. Prepared and worked on exhibition stands at high profile events. 7. Responsible for packaging goods ready for delivery.
Supreme BeingApplication and Design
1. Able to work successfully from brief requirements.2. Carried out in depth customer, company and market research.3. Presented ideas to industry professionals. 4. Experimented with various applications to products.5. Managed time efficiently to meet deadlines
Dorothy PerkinsSales Assistant
1. Handled and dealt with both cash and card payments.2. Helped customers with product types, prices and availability whilst offering styling advice.3. High awareness of trends and shopping habits.4. Experienced in promoting store cards and offers.5. Ability to handle customer queries and complains professionally.6. High awareness of health and safety expectations due to store standards.7. Worked long hours and intense peak seasons.8. Experience in display arrangements and graphic changes.9. Dealt with returns and exchanges.
OutfitStock Room Assistant
1. Able to work under pressure to deliver fully processed products to shop floor.2. Carried out delivery checks including sign offs of notes and paper work.3. Prepared order forms to ensure essentials were stocked to help team delivery targets (Hangers, pins, sizing cubes ext.)4. Liaise with admin and managers. 5. Raise awareness of issues and rooms for improvement.6. Ensured working area is always immaculate and prepared for the next delivery.7. Prepared and carried out stock take.8. Effectively communicated with sales team about available products and alternative sales.
Qualifications and Education:
Foundation Degree in Fashion Studies: Distinction
ABC Level 3 in Apparel manufacturing technology ( NVQ) (Sample technologist)
BTEC Art and Design: DDM
GCSE Art: B
GCSE Textiles: B
DIDA Diploma: P
GCSE Maths: C
Hobbies and interests:
During my studies and in my personal time, I frequently visit exhibitions to expand upon my knowledge in diverse topics. I also enjoy sports; reading, traveling and photography which help me gain an insight to people’s lifestyles and provides me with new inspirations for my illustrations/drawings. Graphics as another interest strongly influences my fashion and I am always improving graphic based skills as I educate myself on relevant software at home. I am always on the lookout for competitions and live briefs to gain exposure and connections with industry.
Key Skills
1. Strong Computer Aided Design skills in Photoshop and Adobe Illustrator.2. Knowledge in various areas such a fashion design, production, illustration and graphics.3. Flat pattern cutting and draping skills.4. Good understanding of garment construction and manufacturing techniques.5. Strong research skills.6. Keen understanding of various production processes and materials.7. Highly experimental.8. Very reliable. 9. Self-motivated and quick learner.10. Ability to work under own initiative as well as a team player. References can be given on request.
Products and services
What are you going to sell?
My business will sell embroidered badges and enamel pins which will be illustrated by me. Similar types of products can be seen below:A-Embroidered Badge: https://uk.pinterest.com/pin/462252349235475123/B-Enamel Pin: https://uk.pinterest.com/pin/239113061444526911/
B
Describe the basic product/service you are going to sell:My products wont vary but the designs applied to them will. This first 2 years of my business I aim to design these based around my own personal art work gathering a loyal fan base to my style of work. I then aim to develop the design to focus on a ‘Bucket list’ idea which aims to encourage people with depression and anxiety to achieve certain things within their own lives to build up confidence and self-esteem. The idea is to get customers to sign up to the website and join a competitive community. The aim of the game is to create a bucket list from the badges produced and throughout the duration of a year to fulfil the various illustrations demonstrated on the badge such as “I raised money for charity” or “ I did one thing that scared me” and when a competitors list is full they are entered into specific prize draws. Weather a member to the website or not customers can till purchase my products of personal art just not that of the bucket list making them feel more exclusive.
Describe the different types of product/service you are going to be selling:
We will sell 50-100 of each design making the badges more desirable, as the products are sold there will be a banner displaying when only a limited number is left which may prompt the customer to buy the product there and then to avoid disappointment when sold out. The badges will be of various designs and therefore appeal to different people. Each month we will bring out a collection of 10-20 badge designs for each category. Customers will have the option to place suggestions on the website which allow them to put forward a consideration of design they would like to see or a badge they require which could then be taken into production.The badges will have an iron on finish which allows the customer who cannot sew to apply their product with ease. With this choice of finish it allows people who sew to neglect the iron on facing if needed and continue to sew on their patches to allow for future rearrangement.
The market
Who are your customers?
My customers are individuals who are self-expressive in their clothing and also conscious of sustainability and quality clothes. They like to customise their clothing which allows them to stand out amongst the crowd and sell a story about themselves without talking. They are typically interested in lifestyle, playful and humorous designs. The customer will also be consciously aware or suffering with depression/anxiety but strive to recover or encourage other by achieving through every day accomplishments.
Describe your typical customer:
My typical customer is females aged between 18-35 who are self-expressive and experimental with their style. She is very independent with or without a partner in her life. Working a full or part time job they enjoy both leisure time an traveling, typically earning £500-£1000 a month they spend a high percentage on their clothes. They prefer quality over quantity and are highly interested in thrift shopping and wardrobe borrowing from friends, boyfriends or parents. With interest in arts, music, fashion, and lifestyle they are creative within their styling and demonstrate a loud personality through their clothes. Often seen as trend setters my customer very rarely follows trends.
Where are your customers based?
My customers are UK based. With expected future developments worldwide.
What prompts your customers to buy your product/service?
Customers want badges to personalise and customise products weather that is their clothing or accessories. They want to be different in some way and create an emotional connection with the clothes they own. Most customers will be interested in the whole community feel to the bucket list idea which my entice them to get involved where as other customers may just purchase badges for no purpose other than to decorate or revamp an old or new belongings.
What factors help your customers choose which business to buy from?Customers are prompt to buy my products over competitors as the background story to the brand offers a more intimate connection with the audience encouraging them become ‘a better you’. Not only this by the brand aims to produce less waste and encourage the buy of quality clothing over quantity. The products we offer are still as fashionable as other badges on the market but just address the troubles the industry face. Lastly each badge produced as an artist statement will only be brought out in a quantity of 50 or 100 and the ‘once there gone there gone’ ethos makes the products more desirable the customer will be able to view how many are left which often encourages the buy.
Marketing strategyWhat are you going to do?Why have you chosen this marketing method?How much will it cost?
Social media
· Open accounts on various platforms that will be used for different purposes.
-Most suitable platform for my target audience as they are the most active users online.
-Allows exposure at peak times of day which can be controlled by a time scheduled platform allowing exposure to happen even when not at work.
-Multiple stations result in different impacts can show different types of media such as images, videos, gifs etc. (some may be very informative and others may minimal )
-Initial costs are free but you also have the option to pay for extra advertisement and promotion for your page.
Initial £0
Future £various
Word of mouth
My company aims to drive word of mouth advertisement by offering a quality products with a wide variety of designs offered in limited amounts making the designs more desirable. Also a rewards system will be put in place that customers will talk about and suggest to their friends which could also become a competition between the loyal customers. Also high quality other marketing attributes will contribute to this such as the pop up shop and website which must create a personal and quality experience for the customer.Other aspects may also contribute to this such as good service and an insight blog to behind the scenes access.-also use bloggers and made by cooper as candidates
-Buyers tend to trust what a friends and family members recommend to them as they trust they were happy with the service/product
-Inexpensive marketing tool
-Self-sustaining
-Works effectively with loyal customers
£0
Pop up shop
(Future)
-Allows the business test the market.
-Create a buzz of newness
-Satisfies customer appetite
-Benefits sales by opening for short period of time creating a desire/interest.
-Creates an experience which could then be shared online and create an interest (Ideas include photo booths, hash tag promotion, selfies)
Future Development
Direct marketing: Email
· By offering a sign up to newsletter option or create account option online customers will be subconsciously giving away contact details.Offering competitions and prize draws will also contribute to this (please see below)
-Actively used by 18-35 year olds when online shopping and with inclining e-receipts customers are more open to giving their email address away
-I have chosen this method as it is not overly time consuming and data can be captured any time of day online. With a subscribe to newsletter button or sign up for account option it will allow the business to collect regular data without wasting time
£0
FuturePersonalised Email approx. £10 per month
· Competition, Prize draws, special editions and offers
(future)I will offer various prize draws and competitions on the company website and social media platforms which will allow the customer to win badges/pins/money off coupons/winning designs to be produced ect.
-To engage customers with products by relating questions back to the products you aim to sell or asking them about your company history which will also educated them about your brand
-Can give the customers’ ability to customise or redesign and existing product
-Entices the customers to get engaged with the brand and come back for more
-Creates a desire
-Offers loyal customer rewards
-Can sell underperforming items to shift stock
Future Development
Website
-To be taken seriously
-Provide clear information about the products/back story
Initial £0 (blog based before sales)
Total cost:
Initial £0
Competitor analysis Table of competitors:
Name location and business size Product/ ServicesPriceStrengths WeaknessesAdditional notes:
Brat BoxSan FranciscoOnlineWorldwide
-Badges-Pins
Various On average £5 per item
Can be seen on blog.
Can be seen on blog.
OhhdeerLondonOnline and in store
Worldwide
-Badges-Pins
-Additional cards, home gifts, home furnishings, stationary and clothes.
Pack of 3 woven badges £7.95-£10
Enamel pin £4.95 - £14.95
Mixed pack 1 woven 1 pin £7.95
Can be seen on blog.
Can be seen on blog.
Various storesin:AustraliaNew ZealandAfricaUnited states CanadaSpainPortugalItalyPolandUKSaudi ArabiaIndia TaiwanHong KongSingapore Hawaii
EtsyOnlineWorldwide
-Badges-Pins
-A wide range of other products
Various Rough estimateBadges £2-£7Pins £4.50 - £12.99
Can be seen on blog.
Can be seen on blog.
Skinny DipLondonOnline and in storeWorld wide
-Badges-Pins-Stickers
-Bags, phone cases, head phones, make-up, laptop cases
Badges£5-£12Pins £5-£6Singular lettered stickers £4Pack of 5 stickers £10
Can be seen on blog.
Can be seen on blog.
Stocked in:Outfit Selfridges Topshop Location of stockist:JapanUK
NetherlandsUnited StatesRepublic of islandAlso have their own stores in:London and Nottingham
Shop TuesdayLos AngelesOnlineWorldwide
-Badges-Pins-Clothing-Home goods-Gift cards
Badges- £8-£21Pins-£8-£10
Can be seen on blog.
Can be seen on blog.
Now own a store: Friend MartAlso offer locking pin bags for applying pins securely at 80p for 5 and are currently sold out
Ball & Chain Co.SalisburyOnlineWorldwide
-Badges-Pins
-Clothing,acsesories, jewlery,headwear and homewear
Patches - £3.60-£16.20
Pins - £4.80-£8
Can be seen on blog.
Can be seen on blog.
Subscribe and blog link
Shop Lost Generation
-Badges-Pins-Badges(could be an area of interest)
-Clothing, home, accessories and gifts.
-Patches£1.60-£3.60-Pins £3.25 - £12.99-Badges £1.20 -£2.40
Offer a specific vintage option on their page
Individual artists and businesses
Unique Selling Point (USP):
Here are some of the brands USP:1. It does not use excessive packaging in the delivery of the products.2. The woven badges are based on recycled materials as a foundation3. Motivates people with anxiety/depression to become ‘a better you’. 4. With sales based on ‘once they’re sold they’re gone’ results in no excessive waste or production as each design would only be produced in multiples of 50 and unique announcements for each design could result in instant sell outs making products more desirable.
In the future I hope to develop some of these point by:1. Offer a service where pin badges can be repaired.2. Create an online function where customers can swap and exchange their purchases.
Operations and logisticsProduction:
Made by cooper is my chosen manufacturer for my products. They take upto 4 weeks to deliver the product but do state they could come earlier, their website also states that they are willing to help meet deadlines when business is quiet (or when you become a loyal/valuable customer to them). Prices vary on product and size and have a minimum quantity of 50 for each design which works well with my brand ethos of not over producing each product. A minimum order of 50 is reasonable and is a good set number for my ‘limited edition’ badges. Other orders with higher quantities such as 100+ would create a higher profit margin as the higher the quantity produced the cheaper each item becomes. Payment is needed upfront which isn’t a problem due to small production costs.
A back up supplier Aspinline can be seen in table in the suppliers table these have be chosen as company who can produce my products if Made By Cooper was no longer accessible to me. Their quality is close to that of Made By Cooper and are a cheaper supplier so these could also be used in my short term back up plan to reduce costs projected into my business.
Delivery to customers:
Costs from delivery can be seen in research file. This price isn’t included with products as customers will choose different delivery services.
Suppliers:
Name and location of supplierItems required and pricesPayment agreementsReasons for choosing supplier
Chosen manufacturer:Made by cooper
BadgesPins
Upfront
Discussed in blog.Please see research file for samples.
Back up manufacturer:Aspinline
BadgesPins
Upfront
Discussed in blog.Please see research file for samples.
IF BEING BROUGHTIF BEING BROUGHTIF BEING BROUGHT
Item required Already owned?New product or second hand?Purchased fromPrice
Computer
YES
Phone
YES
Storage
YES
Desk to work from
YES
Printer
YES
Drawing tablet
YES
Bleed proof paper
On-going stock
New
Jacksons Art
£5.75
Sketching pencils
On-going stock
New
Jacksons Art
£5.45
Markers
On-going stock
£30 approx.
Camera
Yes
Memory card
Yes
Printing Inks
On-going stock
New
Stinky Inks
£20.99
Future
Embroidery machine
No
New
Price
Threads
Ongoing stock
Costing and pricing strategyProducts/services nameMade By CooperEmbroidered Iron On Patches 2.5”
Number of items & cost50 Patches
Product/service components
Packaging £11.00Production £124Labour £20.40Capital and fixed costs £19.60
Total product/service cost£175.00 for 50 Patches
Cost per unit£3.05
Price per unit (£) at whole sale£5.25
Profit Margin (£)£1.75
Profit Margin (%)50%
Mark up (%)50%
Products/services nameMade By CooperEnamel Pin 1”
Number of units in calculation100 Pins
Product/service componentsPackaging £22Packaging (2) £7.99Production £170.40Labour £20.40Capital and fixed cost £19.60
Total product/service cost£240.39 for 100 Pins
Cost per unit£2.40
Price per unit (£)£4.20
Profit Margin (£)£1.80
Profit Margin (%)75%
Mark up (%)75%
Financial forecastSales and costs forecast:
Month123456789101112Total
Month nameAprMayJunJulAugSepOctNovDecJanFebMarAnnual
Sales forecast (Number of items sold each month based off a 5 day trade)21(1 items per day)43(2 items per day)65(3 items per day)65(3 items per day)108(5 items per day)108(5 items per day)65(3 items per day)86(4 items per day)65(3 items per day)65(3 items per day)43(2 items per day)43(2 items per day)777 items sold within the first year of trading.
Product/service(How much profit I will make using the lower priced item at £1.75)£36.75£75.25£113.75£113.75£189£189£113.75£150.50£113.75£113.75£75.25£75.25£1,359.75
Costs forecast (What it will cost me to produce the sales forecast)£64.05£131.15£198.25£198.25£329.4£329.4£198.25£262.30£198.25£198.25£131.15£131.15£2,369.85
Personal survival budgetMonthly cost
Estimated CostsMortgage/rent£210
Council tax£65
Gas, electricity and oil£50
Water rates£20
All personal an property insurances£13
Clothing£50
Food and house keeping£160
Telephone-Contract-Insurance£18.99£4.99
Hire charges (TV,DVD, etc.)£0
Subscriptions (clubs, magazines)£0
Entertainment (meals and drinks)£250
Car -Tax-Insurance-Service -Maintenance-Petrol
£90£70£50Approx. £50Approx. £90
Children’s expenditure and presents£30
Credit card, loan and other personal debt payments£0
National insurance£0
OtherTelephone line and Wifi£15
TOTAL COSTS (£)£1,236.98
Estimated incomeIncome from family/partner£800
Part time job£340
Working tax credit£0
Child benefits£0
Other benefits£0
Other£0
TOTAL INCOME (£)£1140
TOTAL SURVIVAL INCOME REQUIRED (£)£96.98
Back-up plan Short-term plan:
If my business plan does not work out I will start to approach local shops to stock my products and go to various trade shows to promote my products and potentially venture into other areas such as (cards, stationary or clothing). I could also save money with my business by using cheaper suppliers and restricting my social/lifestyle expenditures. I could also boost sales traffic by using effective networking and marketing by offering ‘2 for 1’ events or ‘buy one get one free’ to help shift stock.
Long-term plan:
Apply for further training courses and increase hours worked at part time job. Engage with more professionals to benefit the business. This could be successful by networking with professionals who know more about my industry, offer free advice/services or discounted products.
Plan B ( if it doesn’t all work out) :
If my business was to fail I would the seek employment within the fashion industry as either a designer or seamstress. With previous experience from both my degree and apprenticeship I would already have various skills that are required for these job roles. Employers would look at my CV and recognise that I also have business knowledge from starting up a business and I am highly ambitious. Ideally I would like to work for a manufacturer where I can gain knowledge that could be applied to my business’ second attempt. I may also create contacts that are willing to help me resolve issues through working and therefore I can be working and learning. The other option is to seek support from businesses such as the Prince’s Trust.
