Business Plan

Ausgust 2018-08-15

164229

New Venture Creation and Business Planning

Table of content

Executive Structure.

Venture Overview

Description of the Venture

Mission statement

Vision Statement

History behind VogueAfrik

Marketing Analysis

Targeted Consumer

Market growth and profit

Competition in United Kingdom

Competitive Advantage
Solution

Organisational Team

Board of director quality

Financial plan

Cash flow

Breakeven

Income statement

Threats

Possible upcoming threats

Support Request

Appendices

Reference
Executive Summary

Venture Overview

Description of the venture

Vogue Afrik is an upcoming African business, which consist of different talented

vendors from both Nigeria and Ghana specializing in authentic African wear in

the Europe. It aims to promote and support cultural fashion and creativity

through a mix of traditional and western contemporary clothing and accessories .

There is a huge gap in the market, due to lack of African culture in England

procured to compliment the western fashion. Vogue Afrik is broken down into

different segment, male, female and accessories.

Vision statement
Our vision is to make African wear the most popular amongst other migrants in

the United Kingdom. We aim to be one of the biggest merchants in the United

Kingdom.

Mission Statement

In 3 years, we aim to organize a supply change structure that will facilitate the

products of African wears from the various base countries.

Nigeria, Ghana and Senegal and processes and export to the United Kingdom

within 5 days of express shipping, using our online business platform. (e-

commerce).

Objective

We aim to increase the population of the African wear from 1%. A lot of people

are losing touch with the culture and origin.

Success

We aim to identify competent and reliable workers. Also, we aim for the quality

of out product to be worth what our customers are paying for with our quick

delivery service as a selling point. Another priority is a good marketing structure

regular engagement to obtain feedback.

The history behind vogue Afrik

In the past years, the demand for African wear has been extreme. Our cultural

wear is very unique; it is used for special occasions like weddings, burials and

birthdays. Every time an African needs an outfit they go through an extensive

process to get it for one occasion. This discourages people and they lose touch

with our culture, because it is hard for find abroad, I have identified the gap,

making it easier, faster and cheaper for Africans. It then became very clear. That

the demand level was going up and there was minimum supply.

Proposed Entry Strategy?

Our business will target the niche market segment of Africans in the United

Kingdom. It’s branded as an extraordinary valued brand with high-class quality

and worth. The price is our concern, because Africans convert currencies. We aim

to targets the prime group of consumers. As they are the market influencers,

High margins is what we want to offer our consumers and make it an affordable

price as well.

Market Analysis.

Demand gap.

There is a growing demand as result of the increase number of African who are

residents of the United Kingdom. They can be here for different reasons like

Education, work, residential family, but the demand for the cultural wear is high,
due to this increase in migrants they need to maintain their social culture tie

back in their country of origin.

Marketing Strategy

After an intensive research, we have discovered ways to get our customers, we

will create social media page, (Twitter, Instagram and Facebook) posting pictures

of what we offer. Also majority of our market are in south London. We will share

flyers to make people aware. Lastly, we will encourage of customers to share the

news by posting pictures and tagging our business on different platforms in

order to get 15% off on their next order.

The 4 p’s

Price . We expect our minimum order to be £60 or

more, plus delivery fee of 30 pounds on every

order

. Upon market entry, we will focus our pricing

strategy on customers who want quality and

not quantity
Product . Vogue Afrik is a high-end business that sells

quality and unique product.

. Vogue Afric is a modem used to connect with

the African culture. It is an easier and faster

way to get traditional wears from Africa in the

united kingdom.
Place Vogue Afrik is an e-commerce business, but our

headquarters will be located in 78, Sura, Lagos,

Nigeria.
Promotion We will market our business online, using
 social media platforms, like instagram,

Facebook and twitter mostly our website

online, because most of our target markets are

on there.

. Offering 15% when referred by a friend or

reviewed on customer’s social media.

. Lastly loyalty cards.

Growth Strategy

Market penetration will be our growth strategy. We wish to expand our market share

Market growth, brand recognition and loyalty. We will encourage our customers to

buy our product and review it on their social media platforms. Our strategy will

include seasonal fashion, new promotions and offers, loyalty cards and gift cards.

Looking in the future if our venture succeeds will divert to market expansion, will we

organize pop up store in south London. We will become a multinational company. We

will start delivering to America, as we know the demand is high there. Our aim, is for

our culture to be well known in the world.

Market research

We conducted both primary and secondary Research; Primary research was

conducted in south London, but interviewing 10 Africans. Asked 3 important

questions on their view of the venture although, 10% complained we were

overpriced.

Interview questions for Vogue Afrik.

1. Where did you get your traditional Cultural wear from on your last event?

2. How much did you spend altogether?

3. How often do you wear traditional wear in a month?

Porter’s 5 forces

Threats of substitute Although our cost is high, how sure are we that

the quality of our product will ensure a

continuous demand
Threats of new entry The barriers to the idea is very high, it is an

easy model to replicate. We rely on our

suppliers.
Power of suppliers Our suppliers from Nigeria are key in this line

of business, so we have to keep a good

relationship with them.

Rivalry amongst existing competitors Our key competitors are Asoebi, they are well

known but they lack fast delivery, and that is

our selling point

Target market

We provide high quality items with fast delivery; we aim to capture the elite. Our

target market is both middle and Upper class.

Objective

We aim to increase the population of the African wear from 1%. A lot of people

are losing touch with the culture and origin.

Success
We aim to identify competent and reliable workers. Also, we aim for the quality

of out product to be worth what our customers are paying for with our quick

delivery service as a selling point. Another priority is a good marketing structure

regular engagement to obtain feedback.

Proposal form

Vogue afrrik is a private limited company, which permits us to gain external

investments from venture entrepreneurs and family members to enlarge the business.

Limited liability similarly protects owners from the financial risks in case the business

fails.

Description of the workflow

Ecommerce as being developed and it is called www.vougueafrik.com, which is

still under development. This platform showcases different styles and sizes

online. Interested buyers will be able to identify their business and place in order

website will be able to marketed probably using different channels. When people

order, our Nigerian office will receive the order and take it to production, which

will happen within a week. Vogue afrik comprises of many vendors who designs

clothes, shoes and accessories. These vendors will be given 2 days from when the

order was placed. All produced orders that are received during a particular week,

before 12 noon on Saturday are packaged and made ready for shipment to the

united kingdom on Monday morning by Air –freight, This air-line is low budget.

There will be a recurring base in London through where local distribution to

customers address will take place using the service of courier companies.

Examples; DHL, Royal mail.

The company makes a margin of 15% over and above the production cost. While

cost of shipment and distribution is some directly by customers at no extra

charge. We believe that this transparency will promote integrity to the business

and help the company achieve competitive pricing, this will enable the business

to charge

vo g u e
supplier courier consumer
Afrik
When and order is placed online. We receive the order and give an immediate

alert it to the picked specialized Tailor to start work. When the fashion designer

completes the work it is sent to the office in Nigeria for labeling, quality check
and packaging, then delivery inspection, Lastly, it is sent out to the specified

address for delivery.

Critical Risks

We have identified different risk that can affect the business, government

regulations on importing the goods from Nigeria to United Kingdom. Corporate

tax, exchange rates fluctuation, lowly inventory management and high employee

turnover. The different ways to minimize this risk has been shown WHERE?

Breakeven chart for vogueAfrik

Financial predicted plan for vogueAfrik

Years Number of Production Profit margin Packing and Total

orders. Cost at £60 15% cost of shipping Revenue

order per production disruption

£30 per order

1yr 1,040 62,400 9,360 31,200 104,000
2yrs 1,300 78,000 11,700 39,000 130,000
3yrs 1,625 97,500 14,625 48,750 162,500
Total 3,965 237,900 35,685 118,950 396,500

Funding Request

Investment required Price £

Website design 5,000
Rental office in Nigeria 1,000
Furniture 500
Equipment 500
Salary for 4 workers for the first 9000

3months
Manager 3000
Total 19,000

Withdrawal strategy

Option 1: Acquisition of Competitors

Having a possibility of a smooth run in the business with enough liquid cash to

increase in the business, and we recognize gaining market share and developing

brand new opportunities, in order to increase our market share and profit in the
long run we would think of adopting any innovative ideas they may have

executed in their business.

Option 2: Acquired by Competitors

Another option is, being acquired by a larger well known competitors that is

interested in our venture, is another possible direction, Having our competitors

acquire us rather than share the market share.

The Worst-case scenario, Option 3: Dissolve and sell assets

This would be the least desirable strategy exit, but because of the uncertainty

factor nothing should be accepted as an option. Just case we see our income does

not meet our expected outcome and running out of costs we would contemplate

on selling out current assets and earning any cash to reimburse remaining debts.

Office Layout
Suppliers Category Place
Veteran Menswear Ghana

styleport Womenwear Ghana

Asoebi Menswear Nigeria

Houseofove Womenwear Nigeria

TempleBeads Necklaces Nigeria

Yoofi Shoes Nigeria

The organizational Chart

CEO& Co-founder
TEMITAYO

Manager
FLORENCE External Advisor
FEMI

Adminstration and Marketing Manger Suppliers

logistic manger IFE Relations
TOPE NAV

Ownership structure: The owners of the business are from the board members.

Temitayo owns 53% percent of the business and Florence owns the remaining

47%.

We have only one External Advisor, Femi.

Plan for employees.

As an upcoming business, we have to reduce cost, because we have limited

resources. the mangers in each sector of vogue afrik will be active members. They

will have to manage the day-to-day activities in the business. Managers have great

confidence in the business idea and are participating actively in establishing the

business in its prime stage as each of us has financed our own money into the

business.

Tope, Angela, Ife and Nav will be working in the office as employees. Making sure all

orders are given to the right vendor for production and delivered on time to

customers. Employees will be able to experience job rotation, develop trained labour

and maintain high inspiration and motivation; therefore we aim to develop

multifunctional teams in the future as the business expands.

Tope, our Administrative and logistic manger will have develop the understanding,

knowledge and services of managing the business and deep awareness of the venture’s

culture. Then, they will have the ability to recruit and select the right and suitable

employees for our business, and take charge of any risk that may occur, human

resources, operation and marketing departments

Location of vogueAfrik

As an online company, we do not need to spend a large sum of money on our

location. Although, we have an office in Nigeria where our dad to day operation

will be going on. This is in 78, Sura shopping complex, Ikoyi Lagos. we have
picked an office that is comfortable for our employees with high security, and low

budgeted. We pay rent of £1000 monthly.

Working Hours

The office in Nigeria opens everyday of the week except Sunday. On Monday to

Friday, we open from 9am to 6pm and on Saturday we open from 10am to 3pm.

which is 61 hours a week. The law in Nigeria states that a person should not

work for more than 72 hours in a week. Additionally, it is required for employees

to have 2 breaks in between their shift. By following the Nigerian authoritarian

practises, our staff will work approximately 8 hours a day with mealtime and

breaks provided optionally.

Customer service

In an organisation like this, customer service is very essential. Just in case a

customer needs help ordering, or there is a delay with an order. We will provide a

platform were our customers can communicate with us on the website during

office hours.

Compensation

The compensation policy of our firm includes employee insurance, pension and

bonus relating to our performance and generous holiday premiums. The aim of

the package is to train employees to become loyal and hard working to the firm,

acknowledge that its success is beneficiary to them and motivate them to

increase productivity, efficiency and deliver outstanding customer service to our

clients.
customer needs help ordering, or there is a delay with an order. We will provide a

platform were our customers can communicate with us on the website during

office hours.

The competition

Recognize Risk Risk possibility Impact of risk Strategy to

prevent risk
Suppliers may be late LOW HIGH We will look for dedicated

tailors to guarantee we

have selected the best of

suppliers in Africa. We will

make sure they have

attributes of dedication and

time consciousness. With

great track records. Other

than that, we will make

sure we have back up

suppliers if any emergency

occurs. We will build

relationships with our

supplier by motivating

them with different

benefits and recognitions in

order for them to get the

work done on time.

Wrong size MEDIUM HIGH We would provide

different ways in

which people can get

 their size, using (XS, S,

M, L, XL) or specifying

their measurement. If

the sizes been sent

does not fit they have

10days to send it back

with an extra charge

of £30.
Adverse MEDIUM HIGH This will diffinatly

transformations in the have a negative

government policies impact on our

business. If the taxes

increase that will

reduce the disposable

income for our

customers. The

service we provide is

not an everyday

necessity, our

customers can do

without it, we are

already pricy.

Increasing the price

more than what it is

can discourage our

market.
Competitors may MEDIUM MEDIUM If our competitors

reduce their price, we

reduce their price
will come up with

different ways to keep

our loyal customers,

 loyalty cards, sending

our customers offers,

encouraging them to

buy in bulk to save

cost.

Competitor Strengths Weaknesses Opportunities

SEZANE Known worldwide. Fixed sizes Customers pick the

style and we

customize to their

perfect fit.
Jtaphrique 24 Hour service to Delivery service takes We would provide fast

help customers. a month. delivery, in order for

customers to have last

minute option
Tdare Marketing system is TDare only sells We would provide for

strong. women wear both male and female

 Table to show each members Attribute and role.

Name Role Appropriate

attribute
Temitayo CEO and co-founder Solid leadership skills, very

strong extrovert.
IFE Accounting manager Able to detect the estimate

costs and revenue of the

businesses and produce

financial forecast.
ANGELLA Marketing manger Able to advertise the business

to the right customers.

NAV Suppliers relations Makes sure all the different

vendors met up with their

order

Reference

Nigeria-law.org. (2018). Labour Act. [online]

Available at: http://www.nigeria-
law.org/LabourAct.htm
[Accessed 16 Aug. 2018].

https://www.culturewhisper.com/r/shopping/o

nline_shopping_womens_fashion_uk/6883
https://smallbusiness.chron.com/growth-strategies-business-4510.html

https://www.investopedia.com/terms/p/porter.asp