BUSINESS PLAN

ON

SPECIALIZED ONLINE
FABRIC RETAIL

By Mr Seun Oluokun
TABLE OF CONTENT

1. Executive Summary

2. Company Summary

3. Product Summary

4. Market Analysis Summary

5. Strategy & Implementation Summary

6. Management Summary

7. Financial Plan
1.Executive Summary

The business is essentially a retail fabric business to cater for people who love to
look good at affordable price. Our focus is to provide unisex apparel and position
ourselves as the top retail store servicing this particular market.

The store will be located on several social media platform (Facebook, instagram
etc) and online sales hubs ( jiji Olx etc).operational activities will be within and
outside Kaduna State. Our intentions are to obtain 50% market share and become a
central hub of shopping activity for fabrics nation wild.

We believe that this is critical to our initial success and long-term growth.

1.1 Objectives

1. To create a shopping environment that caters for apparel needs for all
gender.
2. To earn 50% market share and become the number one digital fabric store in
Nigeria.
3. To receive a 100% profit margin within the first year.
4. To have a customer base of 500 by the end of the first operating year.
5. To become a nationally recognized brand within 3 years.

1.2 Mission

Our mission is to offer quality and affordable brand in an assortment of all class
and styles to accommodate all varying financial status.

1.3 Keys to Success

In order to succeed in this business, we must:

 Carry an assortment of sizes and unique fabric brands to fit the taste of our
target customer base.
 Provide customers with top notch personalized customer service in an
atmosphere of hospitality.
 Advertise and promote in areas that our target customer base will learn about
our sales.
  Continuously review our inventory and sales and adjust our inventory levels
accordingly.

2. Company Summary

The store is organized as a sole proprietorship business.

It will be located on no 235, Command Secondary School Kaduna. The hours of

operation will be Monday - Fridays 9 a.m. - 6 p.m., All merchandise will be
purchased according to the company's mission and customer focus.

2.1 Company Ownership

The store is organized as a sole proprietorship business and owned by Mr Seun

Oluokun

2.2 Start-up Summary

The store's incorporation costs are listed below. The company will start with three
months inventory on hand for apparel and accessories as this are the main revenue
generator. The majority of the company's assets will reside in inventory.

The purpose of this business plan is to secure a =N=50 thousand. This

supplemental financing is required for inventory, and operational expenses. The
loan amount appears in the long-term liability row of the start-up summary. Other
financing will include owners additional investment of =N= 30 thousand for
inventory replenishment during months of high receipts. Successful operation and
building a loyal customer base will allow the store to be self sufficient and
profitable in year two.

Start Up Requirements

Start Up Expenses. N

Telephone and utilities (3months) 1,500

Transportation. 4000
Online Ads placement 5000
TOTAL START UP EXPENSES 10,500 (A)
Start up assets N

Start up Inventory 50,000

Others 19,500

TOTAL START UP ASSETS 69,500 (B)

TOTAL REQUIRED (A+B) 80,000

TOTAL INVESTMENT OUTLAY

START UP EXPENSES
20%

START UP ASSETS
80%
2.3 Company Locations and Facilities

The store will be located on several social media platform (Facebook, instagram
etc) and online sales hubs ( jiji Olx etc).operational activities will be within and
outside Kaduna State.

We feel it is essential to our initial and ongoing success that we locate ourselves in
the heartbeat of the community. All business deliveries and shipments will be
handled through the company office
3.0 Products.

The store will carry internationally and locally recognized fabric brands (see list
below). We will be purchasing through sales representatives and manufacturers in
a variety of sizes, colors and style to fit our target market base. The greatest
percentage of merchandise will be in apparel.

Management will rely on customer feedback, suggestions, and sales reports

to introduce or eliminate certain brands

3.1 Product Description

The store will provide a selection of brands that fall within our mission statement.
Our goal is to carry a selection of labels from the hardcore western wear to the
more sophisticated styles.

Some of the labels we will carry are listed below:

 Plain and pattern

 Ankara wrapper of different categories

 Lace

 And other imported fabrics

3.2 Competitive Comparison

The store 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. 

 The ' Shoppers Card’ will entitle customers to a 15% discount after ten
purchases.
 We will offer fabric to customers
 Our location is central to our target customer base.
 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.
3.3 Sales Literature

The store will use a targeted advertising and sales program to generate publicity
and build a customer base.

 500 full-color postcard flyers with a 10% coupon will be distributed

throughout the offices, churches and event centre around kaduna axis
 200 business cards with a Frequent Shopper Card on the reverse side
entitling the customer to a 15% discount on the eleventh purchase after ten
purchases.
 Social media publications though Instagram, Facebook, Twitter etc

3.4 Sourcing

We will shop for our merchandise as outlined below:

 With manufacturers who have a regional representative and showroom

located in the United Kingdom. However, we intend to extend our scope of
coverage to Turkey, China, Dubai, America etc.
 In the second year, we will place our weekly and monthly reorders with
them and review new products. For all other brands we will work directly
with the manufacturer and utilize product catalogs and line Heets.

We will also work to solidify our relationships with sales representatives and
vendors so that we may achieve decreased cost of goods. Our competitors, (both
direct and indirect) purchase from the same sources and we believe that through
marketing programs and strategic alliances we will begin to gain a competitive
advantage.

3.5 Technology

For effective stock management, it is imperative that an advanced inventory and

point of sales program be utilized to maintain stock levels and track sales. The
store will utilize Peachtree Accounting software for all financial and accounting
purposes. For inventory management and point of sale transactions we will utilize
Retail I.C.E. (Inventory Control Expert) software. This product is Windows-based
software that allows the small, single store retailer to manage their inventory and
point of sale functions all in one.
Our business plan will be generated and reviewed on a bi-annual basis as a direct
response to the realities of the time; to ensure all financial goals and objectives are
being reached. We will make the most of our limited marketing budget by focusing
our communications on our target markets and enhancing our marketing
knowledge. 

3.6 Future Products

As we achieve and exceed our sales and profitability goals, the store will add
our own personal in-house label of fabric that will include t-shirts for women and
shirts for men. We will expand our line of brands with those that have been
repeatedly requested by our customers. An e-commerce website will also be
created to increase our distribution channels and expand our customer base to a
national level.
4.0 Market Analysis Summary

The primary target customer of our business will be people who are fashion
conscious, upwardly mobile professionals and everyone who likes to look good at
very affordable price. As we are situated in the center of their residential
community we believe they will make up the largest percentage of our customer
base.

The secondary target customers are the referrals our customers provide as a result
of been satisfied with our products.

As the store becomes popular, we expect to see an assortment of curiosity seekers,

and local residents from the community as well as seasonal purchasers during our
sales period.

4.2 Target Market Segment Strategy

The goal of the store is to serve the people who are fashion conscious, upwardly
mobile professionals and everyone who likes to look good at affordable price at the
comfort of their offices, churches and event and as well allowing working class
individual to pay for items at the end of the month.

4.2.1 Market Needs

There are several important needs in the retail fabric business that are being either
underserved or not met at all. Our store plans to meet and service those needs.

 We will provide a large assortment of variety of colour and options to

compliment the various choices of client.
 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.

4.2.2 Industry analysis

Like most other thriving businesses, dealing in fabrics, , has recently become a
goldmine to fabric store owners. This is the reason every street in the cities now
has several lines of shops where fabrics, clothes, shoes, belts and other supporting
apparels are displayed for sale.
Besides the fun of following the trend in dressing, a fabric store owner also has the
opportunity of making good money on certain exotic products that are unique to
him. As popular as the business has recently become, starting a fabric store also
has its own challenges especially in a country like Nigeria where a businessman
has to contend with a number of overheads.

With competition growing among those involved in this line of business, each
dealer, on a daily basis, finds a pathway to create a niche market for himself. This
has given more room for quality thereby resulting in more money for them.

As a fabric store owner, you choose the product and you set the prices, and then
open your doors to customers eager to snap up your latest selections and show
them off to their friends.

Retail fashion is a solid business with constant demand for new fabric products
created by fashion designers and ever-changing whims of celebrities.

Fashion fabric stores typically stock fabric and fashion accessories that can‘t be
found in department stores, particularly if vintage items are included in the
inventory. And these fabric stores are often designed and decorated according to
the style of the proprietor, giving them a one-of-a-kind vibe that you just don‘t get
in a large department store chain. That is part of the secret to great fabric store
style: Usually, a fabric store sticks with one or two types of merchandise and
concentrates on that. The most successful fabric stores don‘t try to be all things to
all shoppers, according to apparel search.

Location also matters when considering the business. Busy spots are usually ideal.
This also depends on how much one is investing and the customers he wants to
attract. If shopping arcade is your choice, it is always better to get a space proper
for window-shopping. In most cases, people who buy clothes actually come out to
buy other things but somehow get attracted to what they see displayed.

One thing we have discovered is that apart from the fact that more people love to
look good in fine dresses, they have also opted for quick service.

4.3 Main Competitors

Our major competitors are all the retail fabric businesses located around 15 miles
radius of our store.
5.0 Strategy and Implementation Summary

Our store's goal is to provide unique and quality apparel at affordable price.

Our intention is to gain 50% of this market share by focusing on our niche
positioning, neighborhood location, brand that we sell, hospitality and special
promotions online.

5.1 Competitive Edge

 The Store’s “Shopper Card” which allows the customer a 15% discount after
ten purchases.
 Our location in the community will offer closer access to our target customer
base.
 We will offer unique and quality products at affordable price. 

5.2 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.

 The marketing budget will not exceed 5% of our gross annual sales.
 Our promotions will always stay in tune with our company objectives and
mission statement.

5.2.1 Pricing Strategy

Our store will maintain a flexible pricing strategy. We base the product lines that
we carry on their reputation and quality. 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.

5.2.2 Promotion Strategy

We 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 expenditure.

 5,000 4x5 color flyers/postcards will be distributed throughout the

neighborhood.
  Spot radio advertisements on two local FM radio stations.
 A direct mail program that will further focus on and target the top 50%
customer base with special in-house sales and promotions.

5.2.3 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.

5.2.4 Marketing Programs

Our marketing programs will consist of the distribution of 5,000 color flyers two
weeks prior to the day we will open our doors for business.

5.2.5 Positioning Statement

We will offer labels in a larger assortment of styles and sizes that aren't always
readily available in the mass apparel retailer’s stores.

5.3 Sales Strategy

 We will utilize the Retail ICE POS software with every sales transaction.
With each purchase the software will record and maintain in its database the
customer's name, address and purchases. This information will be used with
our direct mailing program to focus on our top 50% of customers.
 We will offer a 14 day return/exchange policy to build trust with our
customers and maintain retention and loyalty.

5.3.1 Sales Forecast

The following table and chart give a highlight on forecasted sales. We expect sales
to start off conservatively and increase extensively in subsequent months.

We planned for annual rate of growth at 20% for the first three years.as we build
name, recognition and status in the community; In the subsequent years we look to
see an increase of revenue as we gain a larger percentage of the market share and
increase our customer base beyond the neighborhood.
6.0 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.

We will expect a high degree of customer service skills and personality as this is
essential to our success.

Our business development consultant will assess the productivity and performance
of employees every six months. These bi-annual evaluations are conducive to the
continued growth of our small business.

6.1 Organizational Structure

Our store is a small business and therefore requires a simple organizational

structure. Mr Oluokun Seun the CEO will also act in a general manager capacity.
All decisions are made in-line with the company objectives. Employee tasks are
delegated based upon their level of expertise, creativity, strengths and weaknesses.

6.2 Management Team

Mr Oluokun Seun, owner and general manager will be responsible for all

administrative functions, purchasing, inventory control, and promotions. He will
also drive other marketing staff of the business to achieve the desired business
growth. He has spent over 3 years in business marketing and his banking
experience will also be handy in the day to day management of the business .He is
a second class graduate of Agricultural Extension and rural development.

6.3 Personnel Plan

The personnel plan is included in the following table below. There will be no
employee at the time of stating. All employee activities will be handled by CEO
Mr Oluokun Seun.
Personnel Plan

YR 1 YR2 YR3

Owner 0.72 0.8 1.0

Full Time Staff 0.0 0.4 0.42

Part Time Position 0.0 0.4 0.42

Total People 1 4 20

TOTAL PAYROLL 1.44 1.6 1.84

PERSONNEL PLAN

PART TIME
26%

OWNER
49%

FULL TIME
26%
7.0 Financial Plan

The growth of our store will be moderate and the cash balance will always be
positive. Being a retail environment we will not be selling on credit to non credit
credible client and they will be extra 3% on payback. We will accept cash,
cheques, bank transfers and online payment platform

Marketing and advertising will remain at or below 5% of sales. We will continue to

reinvest residual profits into company expansion, and personnel.

7.1 Important Assumptions

o Conservative trade cycle for =N=50,0000 worth of stock is 60days

o All daily intakes must be kept in the bank.

o Our average profit margin is 100% on average stock.

7.3 Break-even Analysis

On the average we sell over =N=50,000 worth of goods in 60 days at 100% profit
margin. Therefore with an investment outlay of =N=80,000 and a conservative
projection; it will take an approximate of 4 months to break even.
7.4 Projected Profit and Loss

The following chart and table will indicate projected profit and loss.

Assumption

o Our projected annual revenue growth is 20%

o Profit margin is 100% of direct cost

o Average trade cycle for N50,000 worth of stock is 60days.

YEARLY PROFIT

14
12
10
YEARLY PROFIT
8
6
4
2
0
1 2 3

Recommendation

We recommend that any prospective investor can invest into this business for the
following reasons:
o The Return on Investment (ROI) from this business is quite impressive.
o Durability- unsold stocks/ inventory could be sold at a later date.
o Stock turnover is high, which translates to good cashflow.