You are trying to create a business plan that will clearly illustrate what your business is all about.

People who know nothing about the fashion sector should be able to pick up your plan and understand what you are trying to achieve and how you will make it work.

Funders, generally, don’t want to lend to small new businesses, too much risk for them. Your plan needs to give them the confidence in saying yes to funding you and your new business.

Part A: Your Service or Product

1. What Service will your business provide?

If you are providing a service rather than a product, please tell us all about it.

Have you carried out any market research?

What services will you provide and to whom?

What type of customers will you be targeting?

Do you have a list of potential customers to approach?

Is there a demand for this service?

Have you identified your competition?

Do you have everything you need to be able start up this new business?

Do you know what you will be charging for your    services?

1. What product will you make or sell?

If you are making and/or selling a product, please tell us about it.

Have you carried out any market research?

What product will you be offering?

Why are you offering this type of product?

What type of customers will you be targeting?

Do you have a list of potential customers to approach?

Have you identified your competition?

Is there a demand for this product?

If you are buying this product from someone else, please tell us about your suppliers.

If you are manufacturing your product yourself, how will you achieve this?

If you are getting someone else to make your product, do you have sources that can produce what you need?

Have you identified appropriate sources for ALL your raw materials?

Part B:  Your Market (Research)

1. Who will your customers be?

Have you identified a target market that you, realistically, can do business with?

Please tell us about why you have targeted this particular market.

If you intend to supply different types of customers, please tell us about all of them.

Will you be targeting the public? How will you do this?

Will it be through your own website? Or will be using other people’s websites like EBAY?

Will you be hoping to supply retailers? If so have researched their individual needs?

Why have you selected these retailers and not others? Do they buy from start up businesses?

Do you have an appropriate sales plan that will lead to sales from your target market?

Please tell us about your strategy including the type of sales activities/events you are planning to do.

Have you thought about supplying wholesalers rather than retailers?

Will you be participating in any trade shows?

Will you be selling through sales agents?

Will you be selling through distributors?

Will you be participating in any specific sales events (like street markets, summer festivals, religious events, other specialist sales events)?

Do you have an effective strategy for stealing the customers away from your competitors who are already supplying your target market?

1. Why do you think they will buy from you?

Is it because you are offering something unique?

Is it because you are cheaper than your competition?

Is it because you offer better terms of payment?

Is it because you offer a better support service than your competition?

Is it because you offer a higher level of customer service than the competition?

1. How will your customers find out about you and your business?

If you are planning an advertising campaign, how will this work?

If you plan on paying for adverts in certain publications, why those publications and how often?

Are you sure these publications reach your target customers?

Do you have an Advertising and Promotion budget?

Is it sufficient to attract enough buying customers?

Is this the best way to inform your customers about what you have to offer?

1. Who are your competitors, and how will you try and be better than them?

If you have not researched the competition how WILL try and be better than them?

(Competition is now one of the main reasons that start ups can’t get their businesses off the ground).

What will separate you from all your competitors?

Every Fashion Sector business now has loads of competition that already supply your target customers, how will you capture these customers?

(Most retailers now will tell you they want more customers rather than new collections or new suppliers).

Identify what are the Strengths and Weaknesses of your competitors and find something that your business will offer that the competitors do not.

Do you think that your start up business will win a battle with large, established competitors for customers?

Every start up has much competition, often there are three types of competitors

a)       Big established brands, market leaders.

b)       Small businesses, established within the last few years, very similar to your business but have managed to get their business established

c)       Start up creative businesses, just like yours but into their third or fourth season.

If you research these types of competitors you should be able to find a place for your business which is not going head to head with a household name.

The research may also tell you that there is no room for you in this overcrowded sub sector.

Part C: Your Prices

1. 1. How Will You Set Your Prices?

How do you work out how much to charge for your service?

Are you basing it on an hourly rate, if so how much per hour will you be charging?

(The minimum wage is now £5.70 so your hourly rate should be more than that. If Richard Branson was charging his services at an hourly rate he would charge around £100 per hour, your hourly rate should be less than that).

If you are pricing your service at so much per job, does this figure cover all your costs with an amount on top as ‘profit’?

How do you work out how much to charge for your products?

Is your price based on your total costs per product plus an amount for ‘profit’?

Have you taken into consideration all hidden costs?

2. Why will you set them at the level are rather than higher or lower?

Are your prices based on your competitor’s research?

If you are supplying retailers, are your prices based on the retailers mark up and what they will be charging the wearer (end user)?

If you are supplying big organisations, have you taken into consideration their payment and distribution discounts?

Can you afford to ignore what your competitors are doing?

1. 2. Are your prices higher or lower than the competition?

If your prices are higher than the competition, can you     justify that price level?

If you are offering a superior service, does your promotional material clearly demonstrate that?

If you are offering a ‘special introductory discount’ will you be able to increase your prices once that offer is finished?

Can you still make a profit if your prices are lower than your nearest competition?

Will your high quality customer service be reflected in your price?

Part D SWOT Analysis

(Strengths, Weaknesses, Opportunities and Threats)

PLEASE DON’T DWELL ON THE NEGATIVE PARTS OF YOUR BUSINESS, BE OBJECTIVE AND POSITIVE.

IF YOU DEVELOP YOUR BUSINESS PLAN TO PRESENT TO ANY FINANCIAL INSTITUTION TO BORROW MONEY, THEY ALL REQUIRE A SWOT ANALYSIS WITH YOUR APPLICATION.

1. What do you think are the good things about your business? STRENGTH

Are you a dynamic, one person band, doing everything at all hours, controlling every aspect of the business.

This is strength, is it your only strength?

What else does your business excel at?

Could one of your strengths be not doing the same as your competitors?

1. What do you think are the bad things about your business? WEAKNESS

Being a start up business is ALWAYS a weakness.

If you are the dynamic, one-person band it is a weakness as well as strength

Lack of experience could be a weakness.

Limited funding could also be an understandable weakness.

1. What OPPORTUNITIES do you think there are for your business to grow?

Have you found a gap in the market?

What is your strategy to beat the competition?

Is there identifiable growth in the sector you have chosen?

After you have established your business do you have an expansion plan?

Are any of your competitors leaving the sector?

Is your product cutting edge or are you ahead of the market?

Could targeting overseas markets be a good   opportunity for you?

1. What THREATS are out there to stop your business from surviving and flourishing?

Unfortunately, in 2010 there are many threats to the survival of all businesses.

Will the lack of lending by the banks to small business affect your ability to trade?

Will your start up business be affected by the world economic climate?

Would government intervention like increasing tax rates on products or services threaten your business?

If civil unrest and terrorism returned to the UK streets, would this be a threat to your new business?

Part E: Management and Staff

1. What experience, skills, talents or qualifications do you have to run your business?

You don’t need any qualifications to start up your own business. Do have any relevant experience that shows why you have what it takes to get your new business off the ground?

Tell us about your skills, drive and personality.

1. If there will be other staff in the business, what skills or services will they provide?

If you do need to employ staff where will you find these important team players?

Do you have sufficient funds to pay your staff from day one?

Do you have any friends or family that could do some of the work?

If you need a specific regular task or service, do you need to employ that person?

Could your business benefit from buying this service in, from a sub-contractor rather than having a fulltime member of staff on your payroll?

Do you have a local college that you could approach for appropriate student support?

Part F : Premises and Legal Status

1. 1. Do you need business premises, if so, what type of premises will they be and why will they be suitable?

Are you sure that you need business premises?

Do you have sufficient funds to pay for such a high fixed overhead?

Could your business start up in low cost premises to maximise the opportunities for success?

Can you run this business from your home?

If your business is web based do you have all the relevant equipment needed to trade electronically?

If you have already identified appropriate premises, please list all your costs and monthly financial commitments.

Have you remembered to include any hidden costs associated with business premises?

1. 2. Legal Format

Will you trade as a limited company?

Will you operate as a sole trader?

Will you trade as a partnership or limited liability partnership with someone else?

(Please seek a fuller explanation before committing yourself to any trading format)

A Limited Company limits your personal liability; this means if the business fails you will only lose everything that is owned by the company but nothing that is owned by you personally.

There are strict legal requirements to trading as a ltd company, it will always be the most costly of the start up trading options.

If you register as a limited company you will need a company accountant from the outset.

A Sole Trader means you are trading as an individual with no protection for your personal assets.

If your business goes under you will lose everything, any assets that you have personally built up over time.

It is a cheaper option with far less red tape and does and don’ts, but if you get it wrong you lose everything.

It is possible to trade initially as a sole trader once you have registered with the tax man and then become a limited company at a later stage.

To trade as a Partnership with others first you must register with the tax man all appropriate details of all partners.

With this option there is no protection of your personal assets so, again if you get it wrong ALL the partners stand to lose any personal assets.

A Limited Liability Partnership is a newer option that does have some protection for the partners’ personal assets.

Please remember that trading as a partnership of either type requires certain specific social skills and a willingness to share your business decisions with someone else.

1. 3. Company Accountant and Solicitor

If you will be trading as a limited company you will need a company accountant from the outset.

Do you have any friends or family that can recommend you to their accountant?

As a limited company you have a legal requirement to submit tax returns to the tax authorities at specific times.

Company yearly accounts can only be prepared and submitted by a chartered accountant. The Sole Trader is responsible of keeping the tax authorities informed of his business activity.

You will need a book keeper or book keeping software of some sort allowing you to track of your day to day costs and expenditure before the accountant can prepare your company accounts.

It is always good to be in touch with a solicitor, if your business needs contracts or legal agreements of any sort you will need the help of a solicitor.

If you intend to trade from business premises you must have a solicitor to help you with all legal requirements associated with business premises, leases and licenses.

Part G : Objectives and Expectations

What do you want the business to have achieved :

In One Years Time?

In Three Years Time?

In Five Years Time?

XXXXXXXXXXXXXXXXXXXXXXXX

DON’T PANIC!!!!!!!!!!!

THIS FINANCIAL SECTION IS ONLY WORKED ON AFTER ALL THE WORDS ARE COMPLETED

Part H : Finance:

1. How much do you think you need to start up your business?
2. Please list who this money will come from, and how much they will each provide.

Are these arrangements confirmed? Please detail if you are providing some of the funding yourself.

Please give details of any machinery or equipment that you already own.

1. What will the money get spent on?

Please explain exactly what supplies you will buy.

Will you be using the funding to pay for other business services? Please detail

.

1. How will you keep track of the money?

Whoever lends you the money, they will want to be assured that you have an accounting system in place, either manual or electronic, which will give your lenders information about your exact financial situation at any time. Any lender will require you to submit substantial business paperwork on a regular basis.

A cashflow forecast plus a projected profit and loss account for your first year’s trading is essential, this must be submitted with any application for business funding from any source.

If the money you borrow comes from a family member, they will put you under less pressure if they also have a copy of your first year’s projections.

The cashflow forecast is a projected record of everything that the company expects to pay out on a month by month basis, plus what income the business will receive through sales or loans on a month by month basis.

Cashflow forecasts and projected profit and loss accounts must be presented in a grid format, templates of which are readily available online.

Notes For Business Plan Questionnaire 2010

To Help You Create Your Plan

You are trying to create a business plan that will clearly illustrate what your business is all about. People who know nothing about the fashion sector should be able to pick up your plan and understand what you are trying to achieve and how you will make it work.

Funders, generally, don’t want to lend to small new businesses, too much risk for them. Your plan needs to give them the confidence in saying yes to funding you and your new business.

Part A: Your Service or Product

1. What Service will your business provide?

If you are providing a service rather than a product, please tell us all about it.

Have you carried out any market research?

What services will you provide and to whom?

What type of customers will you be targeting?

Do you have a list of potential customers to approach?

Is there a demand for this service?

Have you identified your competition?

Do you have everything you need to be able start up this new business?

Do you know what you will be charging for your    services?

1. What product will you make or sell?

If you are making and/or selling a product, please tell us about it.

Have you carried out any market research?

What product will you be offering?

Why are you offering this type of product?

What type of customers will you be targeting?

Do you have a list of potential customers to approach?

Have you identified your competition?

Is there a demand for this product?

If you are buying this product from someone else, please tell us about your suppliers.

If you are manufacturing your product yourself, how will you achieve this?

If you are getting someone else to make your product, do you have sources that can produce what you need?

Have you identified appropriate sources for ALL your raw materials?

Part B:  Your Market (Research)

1. Who will your customers be?

Have you identified a target market that you, realistically, can do business with?

Please tell us about why you have targeted this particular market.

If you intend to supply different types of customers, please tell us about all of them.

Will you be targeting the public? How will you do this?

Will it be through your own website? Or will be using other people’s websites like EBAY?

Will you be hoping to supply retailers? If so have researched their individual needs?

Why have you selected these retailers and not others? Do they buy from start up businesses?

Do you have an appropriate sales plan that will lead to sales from your target market?

Please tell us about your strategy including the type of sales activities/events you are planning to do.

Have you thought about supplying wholesalers rather than retailers?

Will you be participating in any trade shows?

Will you be selling through sales agents?

Will you be selling through distributors?

Will you be participating in any specific sales events (like street markets, summer festivals, religious events, other specialist sales events)?

Do you have an effective strategy for stealing the customers away from your competitors who are already supplying your target market?

1. Why do you think they will buy from you?

Is it because you are offering something unique?

Is it because you are cheaper than your competition?

Is it because you offer better terms of payment?

Is it because you offer a better support service than your competition?

Is it because you offer a higher level of customer service than the competition?

1. How will your customers find out about you and your business?

If you are planning an advertising campaign, how will this work?

If you plan on paying for adverts in certain publications, why those publications and how often?

Are you sure these publications reach your target customers?

Do you have an Advertising and Promotion budget?

Is it sufficient to attract enough buying customers?

Is this the best way to inform your customers about what you have to offer?

1. Who are your competitors, and how will you try and be better than them?

If you have not researched the competition how WILL try and be better than them?

(Competition is now one of the main reasons that start ups can’t get their businesses off the ground).

What will separate you from all your competitors?

Every Fashion Sector business now has loads of competition that already supply your target customers, how will you capture these customers?

(Most retailers now will tell you they want more customers rather than new collections or new suppliers).

Identify what are the Strengths and Weaknesses of your competitors and find something that your business will offer that the competitors do not.

Do you think that your start up business will win a battle with large, established competitors for customers?

Every start up has much competition, often there are three types of competitors

a)       Big established brands, market leaders.

b)       Small businesses, established within the last few years, very similar to your business but have managed to get their business established

c)       Start up creative businesses, just like yours but into their third or fourth season.

If you research these types of competitors you should be able to find a place for your business which is not going head to head with a household name.

The research may also tell you that there is no room for you in this overcrowded sub sector.

Part C: Your Prices

1. 1. How Will You Set Your Prices?

How do you work out how much to charge for your service?

Are you basing it on an hourly rate, if so how much per hour will you be charging?

(The minimum wage is now £5.70 so your hourly rate should be more than that. If Richard Branson was charging his services at an hourly rate he would charge around £100 per hour, your hourly rate should be less than that).

If you are pricing your service at so much per job, does this figure cover all your costs with an amount on top as ‘profit’?

How do you work out how much to charge for your products?

Is your price based on your total costs per product plus an amount for ‘profit’?

Have you taken into consideration all hidden costs?

2. Why will you set them at the level are rather than higher or lower?

Are your prices based on your competitor’s research?

If you are supplying retailers, are your prices based on the retailers mark up and what they will be charging the wearer (end user)?

If you are supplying big organisations, have you taken into consideration their payment and distribution discounts?

Can you afford to ignore what your competitors are doing?

1. 2. Are your prices higher or lower than the competition?

If your prices are higher than the competition, can you     justify that price level?

If you are offering a superior service, does your promotional material clearly demonstrate that?

If you are offering a ‘special introductory discount’ will you be able to increase your prices once that offer is finished?

Can you still make a profit if your prices are lower than your nearest competition?

Will your high quality customer service be reflected in your price?

Part D SWOT Analysis

(Strengths, Weaknesses, Opportunities and Threats)

PLEASE DON’T DWELL ON THE NEGATIVE PARTS OF YOUR BUSINESS, BE OBJECTIVE AND POSITIVE.

IF YOU DEVELOP YOUR BUSINESS PLAN TO PRESENT TO ANY FINANCIAL INSTITUTION TO BORROW MONEY, THEY ALL REQUIRE A SWOT ANALYSIS WITH YOUR APPLICATION.

1. What do you think are the good things about your business? STRENGTH

Are you a dynamic, one person band, doing everything at all hours, controlling every aspect of the business.

This is strength, is it your only strength?

What else does your business excel at?

Could one of your strengths be not doing the same as your competitors?

1. What do you think are the bad things about your business? WEAKNESS

Being a start up business is ALWAYS a weakness.

If you are the dynamic, one-person band it is a weakness as well as strength

Lack of experience could be a weakness.

Limited funding could also be an understandable weakness.

1. What OPPORTUNITIES do you think there are for your business to grow?

Have you found a gap in the market?

What is your strategy to beat the competition?

Is there identifiable growth in the sector you have chosen?

After you have established your business do you have an expansion plan?

Are any of your competitors leaving the sector?

Is your product cutting edge or are you ahead of the market?

Could targeting overseas markets be a good   opportunity for you?

1. What THREATS are out there to stop your business from surviving and flourishing?

Unfortunately, in 2010 there are many threats to the survival of all businesses.

Will the lack of lending by the banks to small business affect your ability to trade?

Will your start up business be affected by the world economic climate?

Would government intervention like increasing tax rates on products or services threaten your business?

If civil unrest and terrorism returned to the UK streets, would this be a threat to your new business?

Part E: Management and Staff

1. What experience, skills, talents or qualifications do you have to run your business?

You don’t need any qualifications to start up your own business. Do have any relevant experience that shows why you have what it takes to get your new business off the ground?

Tell us about your skills, drive and personality.

1. If there will be other staff in the business, what skills or services will they provide?

If you do need to employ staff where will you find these important team players?

Do you have sufficient funds to pay your staff from day one?

Do you have any friends or family that could do some of the work?

If you need a specific regular task or service, do you need to employ that person?

Could your business benefit from buying this service in, from a sub-contractor rather than having a fulltime member of staff on your payroll?

Do you have a local college that you could approach for appropriate student support?

Part F : Premises and Legal Status

1. 1. Do you need business premises, if so, what type of premises will they be and why will they be suitable?

Are you sure that you need business premises?

Do you have sufficient funds to pay for such a high fixed overhead?

Could your business start up in low cost premises to maximise the opportunities for success?

Can you run this business from your home?

If your business is web based do you have all the relevant equipment needed to trade electronically?

If you have already identified appropriate premises, please list all your costs and monthly financial commitments.

Have you remembered to include any hidden costs associated with business premises?

1. 2. Legal Format

Will you trade as a limited company?

Will you operate as a sole trader?

Will you trade as a partnership or limited liability partnership with someone else?

(Please seek a fuller explanation before committing yourself to any trading format)

A Limited Company limits your personal liability; this means if the business fails you will only lose everything that is owned by the company but nothing that is owned by you personally.

There are strict legal requirements to trading as a ltd company, it will always be the most costly of the start up trading options.

If you register as a limited company you will need a company accountant from the outset.

A Sole Trader means you are trading as an individual with no protection for your personal assets.

If your business goes under you will lose everything, any assets that you have personally built up over time.

It is a cheaper option with far less red tape and does and don’ts, but if you get it wrong you lose everything.

It is possible to trade initially as a sole trader once you have registered with the tax man and then become a limited company at a later stage.

To trade as a Partnership with others first you must register with the tax man all appropriate details of all partners.

With this option there is no protection of your personal assets so, again if you get it wrong ALL the partners stand to lose any personal assets.

A Limited Liability Partnership is a newer option that does have some protection for the partners’ personal assets.

Please remember that trading as a partnership of either type requires certain specific social skills and a willingness to share your business decisions with someone else.

1. 3. Company Accountant and Solicitor

If you will be trading as a limited company you will need a company accountant from the outset.

Do you have any friends or family that can recommend you to their accountant?

As a limited company you have a legal requirement to submit tax returns to the tax authorities at specific times.

Company yearly accounts can only be prepared and submitted by a chartered accountant. The Sole Trader is responsible of keeping the tax authorities informed of his business activity.

You will need a book keeper or book keeping software of some sort allowing you to track of your day to day costs and expenditure before the accountant can prepare your company accounts.

It is always good to be in touch with a solicitor, if your business needs contracts or legal agreements of any sort you will need the help of a solicitor.

If you intend to trade from business premises you must have a solicitor to help you with all legal requirements associated with business premises, leases and licenses.

Part G : Objectives and Expectations

What do you want the business to have achieved :

In One Years Time?

In Three Years Time?

In Five Years Time?

XXXXXXXXXXXXXXXXXXXXXXXX

DON’T PANIC!!!!!!!!!!!

THIS FINANCIAL SECTION IS ONLY WORKED ON AFTER ALL THE WORDS ARE COMPLETED

Part H : Finance:

1. How much do you think you need to start up your business?
2. Please list who this money will come from, and how much they will each provide.

Are these arrangements confirmed? Please detail if you are providing some of the funding yourself.

Please give details of any machinery or equipment that you already own.

1. What will the money get spent on?

Please explain exactly what supplies you will buy.

Will you be using the funding to pay for other business services? Please detail

.

1. How will you keep track of the money?

Whoever lends you the money, they will want to be assured that you have an accounting system in place, either manual or electronic, which will give your lenders information about your exact financial situation at any time. Any lender will require you to submit substantial business paperwork on a regular basis.

A cashflow forecast plus a projected profit and loss account for your first year’s trading is essential, this must be submitted with any application for business funding from any source.

If the money you borrow comes from a family member, they will put you under less pressure if they also have a copy of your first year’s projections.

The cashflow forecast is a projected record of everything that the company expects to pay out on a month by month basis, plus what income the business will receive through sales or loans on a month by month basis.

Cashflow forecasts and projected profit and loss accounts must be presented in a grid format, templates of which are readily available online.

Michael Goodmaker Designer Help