A business plan is something you need to create when you start you fashion brand. They aren’t just used for raising investment. It’s a tool you can use to clarify your goals and objectives which you can refer to at set times to check and compare how your business is doing in relation to your projected plan. It is something that can be changed and adapted where needed depending on the brands success. Writing one can be overwhelming though – unless you went to business school it’s probably something you’ve not learnt about. There are five essential components which you should have in it and I am going to go through them below:
Executive Summary:
The executive summary is at the beginning of your business plan, but should be the last thing you write. It encapsulates all the key points, ideas and objectives of your business in a very short and concise “elevator pitch.” This is then backed up by all the information you put into the plan. So, if something from the summary grabs the reader’s attention they can jump ahead and review that section of the plan, where you will explain the point in more detail and actionable.
Vision & Objectives:
This section helps the reader (investors, employees, clients) understand what market your brand/business are focusing on and what you will offer that is unique and differentiated. Basically, explaining why the market needs your brand.
Market & Competitive Landscape:
This section describes the market that you plan to operate in more detail. Answer questions like the following:
How big is the market?
Is the market growing, by how much?
Provide evidence to show there is viable opportunity within this market.
Describe and identify your competitors- are they growing, what’s their position in the market?
How will your company differentiate from your competitors?
Implementation Plan:
This section will be the most detailed section of your business plan – identifying the specific actions your business will take and how it will go after the opportunity in the market you just identified. It should cover three years of activity, and include everything from how you will operate as a business, staff to hire, office/studio space you will need, suppliers you will contract, hiring marketing and PR firms/professionals. Break it down into seasons to make it less overwhelming.
Financials:
This is where you show how your business will make money and spend money. You should include a financial plan that shows how your business will grow in terms of both profit and revenue and what financing you will need to make it happen; An income statement that uses projections of how your business will grow at the top line, through sales and other revenues, and will also project the costs of delivering that growth and also a cash flow statement that shows the peaks and troughs of your cash situation on a monthly basis and identifies what funding you will need to finance growth.
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