P1- Present the initial business idea using relevant criteria
Chosen business type:
My chosen business is opening my own clothing label called “Gold” in which I will sell the latest trend in both men and woman fashion. The slogan I decided to create is ‘A style for every day’. My business type will be a sole trader as I will be running my business as an individual. My business will be an online business as it is cheaper to maintain rather than a retailer. This is my logo.
My business aims and objectives:
To survive the first year of trading
To attract customers
To gain brand awareness
Maintaining a profit on the clothing line
Providing high quality service
To receive a 20% profit margin within the first year
To have a customer base of 1,000 by the end of the first operating year. To recruit 10 staff
To achieve 10% sales of all products by the end of the first operating year To have 70% customer satisfaction by June 2015
USP and the competitive edge the business venture will have: My USP is all about offering my customers high quality and trendy clothing at low prices. I will also offer my customers special services such as free and fast shipping on their orders which most other competitors ask customers to pay for or have a minimum amount of order for the shipping to be free. I will also offer an exclusive service in which the customer can customize their product for example, for the T-shirt they can choose from a variety of print out which is rear for a clothing line to offer. All these USPs will make my business have the competitive edge form my competitors.
Potential demand for the new business:
I think the demand in the clothing industry has grown in the last couple of years and it has become one of the strongest due to the people that are always going to buy clothes. Unlike other clothing businesses I will be offering high quality trendy clothes at low prices so I will be expecting a lot of demand from customers. A lot of young people will like the customising service form my business which can have a lot of demand due to the popularity of having white T-shirts with print-outs. Target market:
My target audience will normally be young men and woman from ages of 16 to 30 who have a passion for fashion and always finding the latest fashion trends. I will be targeting people with high income in look for high quality clothing at a lower price than normally. How will you balance business and personal needs?
As I am a sole trade business type I will need to cover most of my time in focusing and building my business to success. The first year I will be working hard and long hours on weekdays and resting on weekends as I am only starting. As my business begins to progress and I start to make enough profit, I will start to search and recruit some employees in order to balance the work between each other and for me to take more days off and also have time for other important issues in my life. I will use my money effectively and divide my personal money with the money of the business until I start making enough money to pay myself. Potential profitability
In order to check the potential profitability of my idea I will conduct Market Research which I will be showing consumers samples of my clothing and asking them what they think about it and how much would they be prepared to pay for it. I think that this business is profitable as researchers have found that we now buy 40% of all our clothes at value retailers, with just 17% of our clothing budget and that Clothes have been the most popular items bought on the internet this year. (Ethical fashion forum, 2006) (BBC News, 2014) I will create a basic profit and loss forecast account in order to have an idea of what to expect in the financial circumstances of my business. This will include the business expenses, sales of goods and gross and net profit. By forecasting all these figures I will give my business a plan to...
Ethical fashion forum (2006) The issues 2006 [online]. Available at: http://www.ethicalfashionforum.com/the-issues/fast-fashion-cheap-fashion (Accessed 1/11/14)
BBC News (2014) Business 2014 [online]. Available: http://www.bbc.co.uk/news/business-28691147 (Accessed 1/11/14)
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