Quality product with designs and styling
Executive Summary
The Stylo Knitware (Pvt) Ltd is consist of the best fabric, styling and designs in the market. The owners Mr.Khalid and Mr. Anjum Malik. Mr Khalid has a ten year experience in designing and styling in ladies, gents knitwear and Mr. Anjum Malik has a fifteen years experience in the outdoor garments industries.
The Stylo Knitwear is doing work with the middle man name is A to Z Group of Companies. The Stylo Knitwear take the order from the middle man and complete the order within the time period and shipped to the middle man. So the stylo knitwear does not maintain the inventory.
ObjectivesThe Stylo Knitwear's mission is to present the quality product with designs and styling that energizes outdoor activity.
To eliminate the middle man and lounge the product by self in the home country and the outdoor as well.
Keys to Success of the Stylo knitwearTo do a strong advertising campaign in online and magazines etc.
Excellent contractor relationship that will facilitate quality manufacturing of Company's knitwear clothing and quick shipment of orders.
Acquiring an excellent knitwear clothing designing staff.
The Company's Start-up SummaryThe company's start up costs contains mostly of designs and marketing. For this purpose the company has £260,000 for investment and the company has got a short term loan of £200,000.
The Company's Start-up Funding|
The Company's Start-up Funding |
|
|
Start-up Expenses to Fund |
58,500 |
|
Start-up Assets to Fund |
401,500 |
|
Total Funding Required |
460,000 |
|
Assets |
|
|
Non Cash Assets From start-up |
- |
|
Cash Requirements from Start-up |
401,500 |
|
Additional Cash Raised |
- |
|
Cash balance on Starting Date |
401,500 |
| Total Assets | 401,500 |
| Liabilities & Capital | |
|
Liabilities |
|
|
Current borrowing |
- |
|
Long-term Liabilities |
200,000 |
|
Total Liabilities |
200,000 |
| CAPITAL | |
|
Planned Investment By Owners |
|
|
Mr. Anjum Malik |
130,000 |
|
Mr. Khalid |
130,000 |
|
Total planned investment |
260,000 |
|
Loss at Start up Exp |
(58,500) |
|
Total Capital |
201,500 |
|
Total Capital and Liabilities |
401,500 |
|
Total Funding |
460,000 |
The company's needs to acquire staff for the office staff, technical staff, accountant, designers and it needs stationery, some legal expenses, sales and marketing expenses, computer software equipment and software etc. So the company has planned the start up expenses for the first month are given below :
| REQUIREMENTS FOR THE START-UP EXPENSES | |
| Start up Expenses | |
|
Legal |
1,000 |
|
Stationery |
500 |
|
Consultants |
5,000 |
|
Rent |
2,000 |
|
Leased Office Equipment |
10,000 |
|
Computer Equipment/ Software |
30,000 |
|
Website |
10,000 |
|
Total Start-up Expenses |
58,500 |
| START-UP ASSETS | |
|
Cash Required |
401,500 |
|
Start up Inventory |
- |
|
Fixed Assets |
- |
| Total Assets | 401,500 |
| Total Requirements | 460,000 |
The Stylo Knitwear is owned by the Mr. Khalid and Mr. Anjum malik. They are the partners of the company. Each of them contributed the 50% of the capital.
ProductsThe Stylo Knitwear will sell the women's outdoor knitwear clothing . They will offer outdoor knitwear clothing for almost every tyepe of active use. They will focus on the seasonal clothing demands of the customers like:
Fleece,
Jumper.
Tops
Market Analysis SummaryThe company's owner has got the 10 to 15 year experience in the women's outdoor market wear has grown into a billions of pounds in the knitwear clothing industry, and the popularity of the internet has launched a number of online stores for women's outdoor wear and most of the companies are selling their product online exclusively. There are the numbers of reasons for this like, will customers buy online only just seen on the internet? But they believe if the process is fun and the products are great cheep and cheep
The key is marketing that the customers in the traditional advertising like, women fashion magazines. The advertising will focus on eliminate the middle man in their clothing budget and stepping up to the style of the stylo knitwear. The company logo will also be an important tool of the marketing that attracts the customer and bringing the customer to website.
Market Analysis|
Potential Customer |
Growth |
||||||
|
Women Age 17 to 26 |
20% |
7,000,000 |
8,200,000 |
9,640,000 |
11,368,000 |
13,441,600 |
20.00% |
|
Women Age 27 to 38 |
15% |
6,000,000 |
6,750,000 |
7,612,500 |
8,604,375 |
9,745,031 |
15.00% |
|
Others |
0% |
- |
- |
- |
0.00% |
||
|
Total |
17.81% |
13,000,000 |
14,950,000 |
16,252,500 |
19,972,375 |
22,186,631 |
17.81% |
The Stylo will be focusing on the two distinct groups of women knitwear clothing that purchase outdoor knitwear clothing:
- Women 17 to 25 years of age, and
- The women 26 to 40 years of age
The women's who are 17 to 25 years of age, the company believe that the youth age drives the market so this is the most important group to attract to the website. They have got less money than the older, so we must keep in mind give them what they want for less.
The women who are 26 to 40 years of age, The Company believe they are the core group that will drive the stylo knitwear's success. This group is very responsible for the growth of outdoor women's wear. They will go on the store for shopping and they will harder to pull into the website. The company will have to assure that the purchase will fit the way the customer wants it to.
Strategy and Implementation SummaryAccording to the market analysis The stylo knitwear will win market share in the women's outdoor knitwear clothing niche by aggressively pursuing visibility with its target customers.
Competitive EdgeThe Stylo's competitive edge is its focus on the process than on product. The website of the company is just the endpoint of an entire marketing program to drive customer's interest in Stylo knitwear. The company has confidence in the quality and attractiveness of the products, and the company knows that the building the road through the website is our most important job.
Marketing StrategyThe Stylo knitwear's marketing strategy is very simple. To introduce the company's product and website in the women's fashion magazines.
For the first two month, The stylo knitwear will offer 10% off for all purchases under £100 and 15% off all purchases over £100. The company will offer the same discount time to time when the new season starts.
Pricing StrategyThe Stylo's pricing strategy is to introduce the quality product in low prices. This advantage will not impact on the sales profit or any initial cost. During the three months of operation the company will offer clothes on discounts on the initial cost. This will attract the customer to company's product.
Sales StrategyThe Stylo Knitwear will launch a £245,000 on advertising campaign targeted to their core customer group. The focus of the advertisement will be to keep the money you give to the middleman and use it to get outdoor. The Stylo's estimates that it will take most of the year to build our sales to the point where we begin to show a profit.
The company's strategy is to offer discount at various times of the year even the out season and build their initial awareness of the website.
Swot Business AnalysisSwot analysis is most important for any new business start up to look depth of business, strengths, threads, Weakness and Opportunities. We are in a competition market and we will manage our strength give effective and efficient best brand of knitwear clothing to our customers or clients. SWOT analysis points are given below:
StrengthsOur market competitors are wholesaler and retailers they only knows moving boxes , But in Stylo Knitwear we hire qualified designers, So they will provide quality customer service and they will design garments according to the age group like youth age and elders what women needs.
WeaknessIt's very difficult to introduce new business in competition market those who have not worked previously together in an existing organization.
New business planners have insufficient financial funds as compared to existing companies.
As we know we are just starting a business and less people to know our website and company's logo as compared to the other companies
OpportunitiesAs we are modern and we think moderate so we will like to wear modern dress because its woman nature to jealous other woman specially if we are talking about dresses women dressing concept is they have a unique and fashionable dress because fashion is passion and every women like to see passionate. In market competitors are unable to satisfy women garments their business strategy just sell the garment they doesn't shown any interest as compare to Stylo knitwear will make fashionable dresses and their aim to satisfy their customers.
We have got the opportunity to advertise in women fashion magazines and spread our website and easy accessible for everyone.
ThreatsWe will face threats if other local company advertising their business in your local area, or if we are advertising our business marketing aggressively as a new competitor to go another area.
Threats of the new product, if another company lounge a new product which is admirable to the customer then it will be a threat for the business.
The Stylo's Sales ForecastThe company expect that the sales to increase at a same rate for the 1st year. It will start slow, but very soon pick up as their customer base will increase. The Stylo will see a sales increase of 38% between the 1st and 2nd year. The company feel that it will accomplish this goal and maintain this amount of sales.
|
Sales Forecast |
Jan-09 |
Feb-09 |
Mar-09 |
Apr-09 |
May-09 |
Jun-09 |
Jul-09 |
Aug-09 |
Sep-09 |
Oct-09 |
Nov-09 |
Dec-09 |
|
Sales |
40,000 |
40,000 |
60,000 |
80,000 |
110,000 |
140,000 |
180,000 |
220,000 |
250,000 |
300,000 |
350,000 |
400,000 |
|
Cost of Sales |
20,000 |
20,000 |
31,000 |
42,000 |
58,000 |
78,000 |
100,000 |
120,000 |
150,000 |
180,000 |
210,000 |
240,000 |
|
Gross Margin |
20,000 |
20,000 |
29,000 |
38,000 |
52,000 |
62,000 |
80,000 |
100,0000 |
100,000 |
120,000 |
140,000 |
160,000 |
Mr. Anjum Malik has got the fifteen years of experience in outdoor marketing and as well as the website development. So Mr. Anjum is responsible for acquire the key team member who has got the sufficient knowledge and experience in web site development and marketing management. So Mr. Anjum has managed the team for marketing development and administration of the Stylo's website. Mr Khalid will be the in charge of the designing team and he will also manage the production of the designs by A to Z group of companies.
Personnel PlanThe company consist of the two owners and the eight staff members are given below:
- Three staff members are consists of the knitwear clothing design team.
- One is the web administrator.
- Two members of the marketing.
- One is the office manager.
- And the last one is the Accountant.
|
Pay Roll |
Jan-09 |
Feb-09 |
Mar-09 |
Apr-09 |
May-09 |
Jun-09 |
Jul-09 |
Aug-09 |
Sep-09 |
Oct-09 |
Nov-09 |
Dec-09 |
|
Marketing & Website Director |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
|
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
7,000 |
|
|
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
12,000 |
|
|
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
4,000 |
|
|
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
3,000 |
|
|
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
|
|
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
3,300 |
|
|
8 |
8 |
8 |
8 |
8 |
8 |
8 |
8 |
8 |
8 |
8 |
8 |
|
|
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
The financial plan of the Stylo Knitwear is given below:
| General Assumptions | ||||||||||||
| Plan Month | Jan-09 | Feb-09 | Mar-09 | Apr-09 | May-09 | Jun-09 | Jul-09 | Aug-09 | Sep-09 | Oct-09 | Nov-09 | Dec-09 |
|
Current Interest Rate |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
|
Long term Interest Rate |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
|
Tax Rate |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
30.00% |
Monthly Profit and Loss Account
| Jan-09 | Feb-09 | Mar-09 | Apr-09 | May-09 | Jun-09 | Jul-09 | Aug-09 | Sep-09 | Oct-09 | Nov-09 | Dec-09 | |
| Sales |
40,000 |
40,000 |
60,000 |
80,000 |
110,000 |
140,000 |
180,000 |
220,000 |
250,000 |
300,000 |
350,000 |
400,000 |
| Cost of Sales |
20,000 |
20,000 |
31,000 |
42,000 |
58,000 |
78,000 |
100,000 |
120,000 |
150,000 |
180,000 |
210,000 |
240,000 |
| Gross Margin |
20,000 |
20,000 |
29,000 |
38,000 |
52,000 |
62,000 |
80,000 |
100,0000 |
100,000 |
120,000 |
140,000 |
160,000 |
|
50.00% |
50.00% |
48.33% |
47.50% |
47.27% |
44.29% |
44.44% |
45.45% |
40.00% |
40.00% |
40.00% |
40.00% |
|
| Operating Exp | ||||||||||||
| Payroll |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
| Sales, Marketing & Other Exp |
30,000 |
20,000 |
10,000 |
40,000 |
15,000 |
45,000 |
15,000 |
15,000 |
25,000 |
10,000 |
30,000 |
10,000 |
| Utilities |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
200 |
| Rent |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
| Payroll Taxes |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
6,645 |
| Total Operating Exp |
83,145 |
73,145 |
63,145 |
93,145 |
68,145 |
98,145 |
68,145 |
68,145 |
78,145 |
63,145 |
83,145 |
63,145 |
| Profit Before Interest |
(63,145) |
(53,145) |
(34,145) |
(55,145) |
(16,145) |
(36,145) |
11,855 |
31,855 |
21,855 |
56,855 |
56,855 |
96,855 |
| Interest Exp |
1,636 |
1,604 |
1,573 |
1,542 |
1,511 |
1,480 |
1,449 |
1,418 |
1,387 |
1,356 |
1,324 |
1,293 |
| Tax Incurred |
19,434 |
16,425 |
10,716 |
17,006 |
5,229 |
11,288 |
3,122 |
9,131 |
6,140 |
16,650 |
16,659 |
28,668 |
| Net Profit |
(45,346) |
(38,325) |
(25,003) |
(39,681) |
(12,359) |
26,338 |
7,284 |
21,306 |
14,328 |
38,850 |
38,871 |
66,893 |
| Net Profit/Sales |
-113.3% |
-95.81% |
-41.67% |
-49.60% |
-11.24% |
-18.81% |
4.05% |
9.68% |
5.73% |
12.95% |
11.11% |
16.72% |
Monthly Cash Flow Statement
| Jan-09 | Feb-09 | Mar-09 | Apr-09 | May-09 | Jun-09 | Jul-09 | Aug-09 | Sep-09 | Oct-09 | Nov-09 | Dec-09 | |
|
Opening Balance |
401,500 |
391,365 |
321,253 |
298,569 |
276,577 |
250,790 |
245,485 |
233,129 |
251,688 |
275,662 |
302,408 |
352,859 |
|
Cash Received from Operation |
||||||||||||
|
Cash from Sales |
40,000 |
40,000 |
60,000 |
80,000 |
110,000 |
140,000 |
180,000 |
220,000 |
250,000 |
300,000 |
350,000 |
400,000 |
|
Subtotal Cash from Operation |
40,000 |
40,000 |
60,000 |
80,000 |
110,000 |
140,000 |
180,000 |
220,000 |
250,000 |
300,000 |
350,000 |
400,000 |
|
Exp from Operation |
||||||||||||
|
Cash Spending |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
44,300 |
|
Bill Payments |
2,102 |
62,079 |
34,651 |
53,959 |
87,754 |
97,272 |
144,323 |
153,408 |
177,993 |
225,221 |
251,516 |
300,561 |
|
Long-term Liabilities Principal Repayment |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
3,733 |
|
Subtotal Cash Spent |
50,135 |
110,112 |
82,684 |
101,992 |
135,787 |
145,305 |
192,356 |
201,441 |
226,026 |
273,254 |
299,549 |
348,594 |
|
Net Cash Flow |
(10,135) |
(70,112) |
(22,684) |
(21,992) |
(25,787) |
(5,305) |
(12,356) |
18,559 |
23,974 |
26,746 | 50,451 | 51,406 |
|
Cash Balance |
391,365 |
321,253 |
298,569 |
276,577 |
250,790 |
245,485 |
233,129 |
251,688 |
275,662 |
302,408 | 352,859 | 404,265 |
| Assets | |||||||||||||
| Current Assets | |||||||||||||
| Cash in Hand |
401,500 |
391,365 |
321,253 |
298,569 |
276,577 |
250,790 |
245,485 |
233,129 |
251,688 |
275,662 |
302,408 |
352,859 |
404,265 |
| Inventory | - | 22,000 | 22,000 | 34,100 | 46,200 | 63,800 | 85,800 | 110,000 | 132,000 | 165,000 | 198,000 | 231,000 | 264,000 |
| Fixed Assets | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Total Assets | 401,500 | 413,365 | 343,253 | 332,669 | 322,777 | 314,590 | 331,285 | 343,129 | 383,688 | 440,662 | 500,408 | 583,859 | 668,265 |
| Liabilities | |||||||||||||
| Current Liabilities | |||||||||||||
| Account Payable | - | 60,945 | 32,890 | 51,043 | 84,565 | 92,471 | 139,236 | 147,529 | 170,514 | 216,893 | 241,522 | 289,834 | 311,080 |
| Long Term Liabilites | |||||||||||||
| Short Term Loans | 200,000 | 196,267 | 192,534 | 188,801 | 185,068 | 181,335 | 177,602 | 173,869 | 170,136 | 166,403 | 162,670 | 158,937 | 155,204 |
| Total Liabilities | 200,000 | 257,211 | 225,424 | 239,843 | 269,632 | 273,805 | 316,838 | 321,398 | 340,650 | 383,296 | 404,192 | 448,771 | 466,284 |
| Paid up Capital | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 | 260,000 |
| Retained Earnings | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) | (58,500) |
| Earnings | - | (45,346) | (83,671) | (108,674) | (148,355) | (160,714) | (187,052) | (179,767) | (158,461) | (144,134) | (105,284) | (66,413) | 481 |
| Total Capital | 201,500 | 156,154 | 117,829 | 92,926 | 53,145 | 40,786 | 14,448 | 21,733 | 43,039 | 57,366 | 96,216 | 135,087 | 201,981 |
| Total Liabilities & Capital | 401,500 | 413,365 | 343,253 | 332,669 | 322,777 | 314,590 | 331,285 | 343,129 | 383,688 | 440,662 | 500,408 | 583,859 | 668,265 |
| Net Worth | 201,500 | 156,154 | 117,829 | 92,926 | 53,145 | 40,786 | 14,448 | 21,733 | 43,039 | 57,366 | 96,216 | 135,087 | 201,981 |
Following are given the projected financial plan of the Stylo knitwear. This Financial plan show that the projected sales for the three years, profit & loss account, cash flow statement and the balance sheet. The company is expecting that sale in the next three years.
Projected Sales
|
Projected Sales |
2009 |
2010 |
2011 |
|
Sales |
2,170,000 |
3,000,000 |
4,300,000 |
|
Cost of Sales |
1,249,000 |
1,800,000 |
2,580,000 |
Projected Payroll Plan
|
Marketing and Website Director |
84,000 |
90,000 |
95,000 |
|
Designing Director |
84,000 |
90,000 |
95,000 |
|
Designers |
144,000 |
156,000 |
166,000 |
|
Web Administrator |
48,000 |
52,000 |
56,000 |
|
Office Manager |
36,000 |
39,000 |
42,000 |
|
Marketing Staff |
96,000 |
104,000 |
112,000 |
|
Accountant |
39,600 |
44,000 |
48,000 |
|
Total Payroll |
531,600 |
575,000 |
614,000 |
| Sales |
2,170,000 |
3,000,000 |
4,300,000 |
| Cost of Sales |
1,249,000 |
1,800,000 |
2,580,000 |
| Gross Margin | 921,000 | 1,200,000 | 1,720,000 |
| Gross Margin | 42% | 40% | 40% |
| Operating Exp | |||
| Payroll |
531,600 |
575,000 |
614,000 |
| Sales & Marketing Exp | 265,000 | 340,000 | 440,000 |
| Utilities | 2,400 | 2,400 | 2,400 |
| Rent | 24,000 | 24,000 | 24,000 |
| Payroll Taxes | 79,740 | 86,250 | 92,100 |
| Total Operating Exp | 902,740 | 1,027,650 | 1,172,500 |
| Profit Before Interest & Taxes | 18,260 | 172,350 | 547,500 |
| Interest Expenses | 17,574 | 13,281 | 8,801 |
| Taxes Incurred | 206 | 47,721 | 161,610 |
| Net Profit | 480 | 111,348 | 377,089 |
| Net Profit/ Sales | 0.02% | 3.71% | 8.77% |
|
Opening Balance |
401,500 |
404,264 |
243,008 |
|
Cash from sales |
2,170,000 |
3,000,000 |
4,300,000 |
|
Additional Cash Received |
- |
- |
- |
|
Subtotal Cash Received |
2,170,000 |
3,000,000 |
4,300,000 |
|
Exp from Operation |
|||
|
Cash Spending |
531,600 |
575,000 |
614,000 |
|
Bill Payments |
1,590,840 |
2,541,460 |
3,387,998 |
|
Additional Cash Spent |
|||
|
Principal Repayment |
44,796 |
44,796 |
44,796 |
|
Subtotal Cash Spent |
2,167,236 |
3,161,256 |
4,046,794 |
|
Net Cash Flow |
2,764 |
(161,256) |
253,206 |
|
Closing Balance |
404,264 |
243,008 |
496,214 |
| ASSETS | |||
|
Current Assets |
|||
|
Cash in Hand |
404,264 |
243,008 |
496,214 |
|
Inventory |
264,000 |
380,464 |
545,332 |
|
Total Current Assets |
668,264 |
623,472 |
1,041,546 |
|
Fixed Assets |
- |
- |
- |
| Total Assets | 668,264 | 623,472 | 1,041,546 |
| LIABILITIES | |||
|
Current Liabilities |
|||
|
Account Payable |
311,080 |
199.736 |
285,516 |
|
Long Term Liabilities |
155,204 |
110,408 |
65,612 |
|
Total Liabilities |
466,284 |
310,144 |
65,612 |
|
Paid up Capital |
260,000 |
260,000 |
260,000 |
|
Retained Earnings |
(58,500) |
(58,019) |
53,329 |
|
Earnings |
481 |
111,349 |
377,089 |
|
Total Capital |
201,981 |
313,330 |
690,418 |
| Total Liabilities & Capital | 668,264 | 623,472 | 1,041,546 |
| Net Worth | 201,981 | 313,330 | 690,418 |
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