Clothing Retail Store Business Plan

Sample
BY LEGAL TEMPLATES • FEBRUARY 4, 2016 • BUSINESS PLAN SAMPLES

Executive Summary
SUMMARY

Style Villain is a Mt. Pleasant, South Carolina based clothes retail

business located in the Town Center on Highway 17 North. Style Villain
will focus on marketing medium to high end articles of clothing targeted
at college students and young professionals.

Style Villain aims to market

clothing that is more mature
than A&F or American Eagle, but
remains a ordable to young
professionals and college
students, while retaining a
“young” vibe.

MANAGEMENT TEAM

ANDREA WATSON:
CEO/GENERAL MANAGER

Andrea Watson is a professional

designer and entrepreneur originally hailing from Baltimore, MD. She
has over 15 years of experience designing for major brands such as
Uniqlo, Gap, and Fruit of the Loom. Ms. Watson’s intends to leverage her
successful career and numerous industry contacts to strike out and
create her own clothing brand.

PRODUCTS AND SERVICES

Style Villain will market all types of clothing for both men and women,
including casual, semi-casual, and professional out ts. The company
will also sell hats, belts, scarves, and jewelry, all of which will
complement each other to sell complete out ts. Style Villain will aim to
create trendy, fashionable clothing and accessories with a youthful
edge.

CUSTOMERS

Style Villain’s main customers will be teenagers, college students, and

young professionals, estimated between age 18-35. Our products will be
priced appropriately to be a ordable for people within this age group.
We anticipate that our target customers will on the whole possess less
disposable cash than customers outside of our target age range.

MARKETING AND SALES

Marketing for Style Villain will be done through signage, yers, coupons,
direct mail, billboards, strategic business relationships, Internet and
social media. Each marketing aspect will require a cohesive strategy that
is mutually reinforcing to get the most bene t. A more detailed strategy
can be viewed in the Marketing and Sales chapter of this business plan.

FINANCIAL FORECAST AND REQUIRED FUNDS

The company anticipates earning $160,600 in net pro ts by the end of

year three. In order to remain cash solvent during the rst year of
startup, the company will require $75,000 to cover the costs of salaries,
an initial marketing blitz, and other incidental costs. Ms. Watson will
provide $30,000 of her own money, and take a $45,000 loan from the
Bank of America to satisfy startup cost needs.

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Company and Financing



COMPANY OVERVIEW

Style Villain is based and incorporated in South Carolina. The

business was formed on August 1, 2014, and serves the local market
of the town of Mt. Pleasant. The company expects to attain
signi cant market share of college age students and young
professionals looking to appear fresh and stylish.

MANAGEMENT TEAM

ANDREA DAWSON: CEO/GENERAL MANAGER

(https://legaltemplates.net/wp-
content/uploads/2016/01/lawn-care-
entrepreneur-3.jpg)Andrea Dawson has more
than 15 years in the design industry and holds a
master’s in fashion management.  Beginning as
a low-level designer and seamstress, she quickly
rose in the ranks of companies such as Uniqlo
and Fruit of the Loom due to her eye for contemporary fashion and
strong product development instincts. Eventually, after serving on
the board of Soma Design Co., she decided to strike out on her own
and form her own brand.

Ms. Dawson brings over a decade of experiences and deep industry

contacts to the table, which will help lubricate the otherwise tedious
processes of starting a clothing company.

REQUIRED FUNDS

Style Villain will require $75,000 in startup costs to remain solvent

over the rst year. Low pro t margins, sta ng requirements, and an
initial advertising blitz will consume the rst year’s pro ts and
require a bank loan of $45,000 for the company to remain cash ow
positive. Ms. Dawson will supply the other $30,000 in initial startup
funds. By the second year, pro ts will exceed spending. By the third
year, the bank loan will be paid o entirely.

MISSION STATEMENT

Style Villain will provide young professionals a striking alternative to

the usual chain brands, while remaining a ordable and fashionable.
Easy, casual, fun.

COMPANY HISTORY

Style Villain was conceived by Ms. Dawson in 2013 while she served
on the board of Soma Design Co. Ms. Dawson recognized that there
was a market opening for edgier design as “big brand” clothing
retailers continued a trend towards homogeneousness.

LOCATIONS AND FACILITIES

Style Villain will be located on 1210 Belk Drive in the Mt. Pleasant
Towne Center. A map of the Towne Center facility is shown below:

(https://legaltemplates.net/wp-content/uploads/2016/01/Towne-
Center-Map.png)
Style Villain is located on the heavily tra cked path to the movie theater.

Products and Services



PRODUCTS AND SERVICES

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Retail-Storefront.jpg)
The Style Villain storefront
 

Style Villain will feature a diverse range of clothing that adhere to a

professional, modern style. Included below is a full list of our
featured items:

• Armwear
• Belts
• Coats
• Dresses
• Gowns
• Headgear
• Jackets
• Shirts
• T-Shirts
• Collared shirts
• Dress shirts
• Skirts
• Tops
• Trousers and shorts

SOURCING AND FULFILLMENT

For manufacturing, Style Villain will be working with Solomon Rose

Co., a clothing manufacturer based in South Carolina. Fabrics will be
sourced from Carolina Cotton Works. Ms. Dawson has negotiated
excellent terms with both companies, using her contacts within the
fashion and design industry. Despite the higher base costs, Ms.
Dawson insists on using US based manufacturers for three major
reasons. First, overseas manufacturers often create poor quality
products, and are di cult to communicate with. Secondly, overseas
manufacturers are also gaining a bad reputation amongst
socially conscientious millennials, Style Villain’s target customers.
Thirdly, overseas manufacturers require a large quantity of orders,
which a small boutique like Style Villain does not require.

COMPETITORS
COMPETITORS

The clothing retail industry is ercely competitive, and Style Villain’s

location in the Towne Center is a high-competition location itself.
However, the Towne Center also brings in a high volume of
customers daily, which helps to nullify the adverse e ects of a
competitive market location.

Within the Towne Center, our main competitors will be Belk,

American Eagle, Abercrombie & Fitch, Amelia’s, and Gap. The
companies target a similar range of customers, mostly overlapping
around millennials, generation X, and teenagers. Style Villain will be
aiming for millennial customers looking to wear stylish, high quality
clothing that isn’t “brand name” or mass marketed.

INTELLECTUAL PROPERTY

Any and all designs created by Ms. Dawson or others for Style Villain
will immediately be under copyright. Style Villain will aggressively
pursue copyright infringers within the full extent of the law.

FUTURE PRODUCTS AND SERVICES

Ms. Dawson hopes to open a sister shop in Savannah, GA if Style

Villain is successful in Mt. Pleasant.

Customers and Market Analysis



MARKET OVERVIEW

Clothing retail in Mt. Pleasant, SC follows similar trends in a uent

cities across the United States. The average yearly salary of a Mt.
Pleasant resident is $52,000 per year, and cost of living in lower than
in most parts of the country. This means that Mt. Pleasant residents
have a higher than average amount expendable income.

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Retail-Cashier.jpg)
Associates at the company will be knowledgable and friendly.

The improving economy is also improving consumer con dence

across the United States. Taking a narrower view, Mt. Pleasant itself
experiencing an economic boom due to Google’s server warehouse
and Boeing’s factory expansion into the Mt. Pleasant suburbs.

MARKET NEEDS

Mt. Pleasant is experiencing an in ux of a uent families hailing

from the north. Business across Mt. Pleasant and Charleston are
beginning to boom and expand due to the in ux of new money.
There is a market need for new clothing retail shops to meet the
demand of new customers.

In addition, the clothing tastes and trends in the south are di erent
from the north. Style Villain will move away from classic southern
styles like khakis and polo shirts and target an edgier, less traditional
niche. Ms. Dawson’s designs aim to fuse southern and northern
sensibilities, while keeping a high quality, classy aesthetic.

MARKET TRENDS

“Omnichannel” retailing is quickly becoming the norm for smaller

retailers who are looking to edge out bigger companies with stronger
brands. “Omnichannel” marketing allows for the customer to
complete transactions in any way that they want to — for instance,
they can order clothing online, and return it to the store physically.
Style Villain will work to make the purchase and return process as
streamlined and e cient as possible for customers.

Style Villain will also accept payments through mobile wallets to

facilitate business, save money on transactions, and keep up with
millennial trends.

MARKET GROWTH

Mt. Pleasant and Charleston area businesses are set to expand

rapidly as a uent families move from the north. Not only is Mt.
Pleasant growing due to Google and Boeing’s expansion into the
area, but also because it is consistently being voted the number one
city in the US (http://www.cntraveler.com/stories/2013-10-
15/charleston-south-carolina-number-one-city-in-the-united-states)
(for the third consecutive year.) Charleston is o cially “on the map”
for retirees, college students, and people looking for a change of
pace in their lifestyles.

Style Villain will be set to capture this growing market on its upswing,
and make a name for itself as a provider of quality, stylish garments.

KEY CUSTOMERS
Key customers for Style Villain will be college students and young
professionals, age ranging from 18-35. These customers will either
hail from a uent families or themselves have decent salaries and
expendable income. Market research suggests that millennials in this
age group in the Mt. Pleasant area are looking for new, unique
clothing options from the usual fare. Ms. Dawson will aim to provide
this valuable market segment with interesting designs that match
their budding personalities and ambitions.

Marketing and Sales



OVERVIEW

Marketing for Style Villain will be conducted across all channels.

Signage, newspaper, yers, brochures, online, social media, word-of-
mouth, strategic alliances, and coupon strategies will all be used in
tandem to market the company’s products.

POSITIONING

Style Villain will be competing with several large clothing retail stores
with strong brands, as well as boutiques. The company will aim to
compete indirectly with these other companies by carving out
a unique niche for itself. Ms. Dawson recognizes an opening in the
market to target youth and young professionals looking for a unique,
stylish, and classy look that breaks away from the traditionally
southern styles that have dominated Charleston for decades. Market
research done by the company has revealed that Mt. Pleasant is
ready for Ms. Dawson’s design vision — people are ready to try new
styles and are excited by the prospect of purchasing products from
Style Villain.

PRICING
PRICING

Pricing for Style Villain will be higher than average for shops
overlapping within the same niche.

There are three major

reasons for the increased
price:

• The raw materials are

being sourced and the
products are being
Concept “Made in America” tag manufactured in the
USA
• The raw materials and
labor are ethical and
green
• The quality of the
company’s products is
higher and more
durable than that of
our competition

Despite these three added costs, Style Villain’s prices will still be
extremely competitive, measuring tens of dollars higher than
companies overlapping within our niche. Ms. Dawson believes that
millennials will be willing to buy a higher quality, ethical product for
a little more money.

PROMOTION

Promotion of Style Villain’s goods will be a “kitchen sink” strategy.

The company will advertise across all channels, including old media
and new media.

Advertising will be organized and cohesive across all media channels

 (https://legaltemplates.net/wp-

content/uploads/2016/01/coupon-sales-strategy-284x300.jpg)
Coupons will be used to increase brand recognition.

to ensure maximum exposure, participation, and sharing amongst

Charleston/Mt. Pleasant residents. Initial marketing tactics will be
heavily coupon and sale based to draw in customers.

Customers in the store will be able to earn further sales by checking

in, “liking” the store page, or sharing the store with friends over any
form of social media. Billboard signage will be purchased for a
month during the initial startup phase, and coupon yers will be
mailed out to The Brickyard and Dunes West communities to draw in
initial customers and create a client base.

DISTRIBUTION

The company’s products will be distributed from the retail location in

the Towne Center, and will deliver to areas within the southeast. The
company has plans to expand its delivery service to the entire United
States within three years.

 
 Strategy and Implementation


MILESTONES

Year 1, Month 1: Website Set Up

Year 2, Month 6: Delivery to entire continental USA

Year 3, Month 6: Expansion of sister store to Savannah, GA

SWOT ANALYSIS

STRENGTHS

1. Company is eco-friendly and labor friendly

Style Villain has several strong points that make it a competitive
player in the retail clothing boutique niche. First, it’s an ethical
company, both in terms of environmental impact and human rights.
 (https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Retail-Designer.jpg)
Ms. Dawson is an award winning designer.

The company’s partner manufacturers are based in the United States,

and materials are being sourced from US based growers within the
southeast. The company’s carbon footprint is small, and its entire
growing and manufacturing process is labor friendly.

2. CEO is well connected and experienced

Ms. Dawson brings over a decade of experience in clothing design,

retail, and marketing for major brands. She brings with her an
award-winning clothing design sense, and contacts within the
industry. Due to her contacts, she was able to negotiate favorable
terms with the manufacturers, allowing her to keep prices
competitive despite the extra costs of US labor and materials
sourcing.

WEAKNESSES

Despite the favorable terms negotiated by Ms. Dawson with the

company’s partner manufacturers, prices will nonetheless be higher
than our direct and indirect competitors. However, according to
market research, our target market is willing to spend more money
on high quality items that are eco-friendly and labor friendly. Style
Villain’s higher prices will be couched in heavy marketing, ensuring
customers are aware that they are purchasing a product that aligns
with their value systems.

OPPORTUNITIES

Ms. Dawson sees an opportunity to expand Style Villain into

Savannah, GA, provided the store is successful in Mt. Pleasant, as
these two cities share a similar aesthetic and appeal.

THREATS
Mt. Pleasant’s rapid expansion means that there are several other
entrepreneurs who will also be opening boutique clothing shops.
Ms. Dawson’s contacts in the industry and familiarity with the
business will allow her to navigate the complications of running a
retail business, giving her an edge amongst her new competitors.

Financial Plan


SALES FORECAST

SALES FORECAST TABLE

Year 1 Year 2 Year 3

Unit Sales  
Clothes 29,139 43,164 58,308
Belts, Hats, Scarves 8,321 12,324 16,656
Jewelry 707 1,056 1,428
Price Per Unit  
Clothes $20 $20 $20
Belts, Hats, Scarves $15 $15 $15
Jewelry $35 $35 $35
Sales  
Clothes $582,780$863,280 $1,166,160
Belts, Hats, Scarves $124,815$184,860 $249,840
Jewelry $24,745 $36,960 $49,980
Total Sales $732,340$1,085,100$1,465,980
Direct Cost Per Unit 
Clothes $16 $16 $16
Belts, Hats, Scarves $12 $12 $12
Jewelry $17 $17 $17
Direct Cost  
Clothes $466,224$690,624 $932,928
Belts, Hats, Scarves $99,852 $147,888 $199,872
Jewelry $12,372 $18,480 $24,990
Total Direct Cost $578,448$856,992 $1,157,790
Gross Pro t $153,891$228,108 $308,190
Gross Pro t % 21% 21% 21%

SALES BY MONTH
SALES BY MONTH

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Plan-Sales-by-Month.jpg)

PERSONNEL PLAN

PERSONNEL TABLE

Year 1 Year 2 Year 3

Sales Associate$25,000$26,250$27,500
Store Manager $40,000$42,000$44,000
Total $65,000$68,250$71,500
BUDGET

BUDGET TABLE

Year 1 Year 2 Year 3

Expenses  
Salary $65,000 $68,250 $71,500
Employee Related Expenses $9,750 $10,237 $10,725
Rent $18,000 $18,000 $18,000
Advertising and Promotion $14,646 $21,702 $29,319
Advertising Blitz $4,000 $0 $0
Insurance $6,600 $6,600 $6,600
Point of Sale System $1,000 $0 $0
Business Expenses $2,400 $2,400 $2,400
Accountant $1,600 $0 $0
Total Expenses $122,996$127,189$138,544
Long-term Assets  
Total Long-term Assets $0 $0 $0
Other Current Assets  
Total Other Current Assets $0 $0 $0
Dividends and Distributions  
Total Dividends and Distributions$0 $0 $0
EXPENSES BY MONTH

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Retail-Expenses-by-Month.jpg)

CASH FLOW ASSUMPTIONS

CASH FLOW ASSUMPTIONS TABLE

Cash In ow  
% of Sales on Credit 80%
30 days
Cash Out ow  
% of Purchases on Credit 90 %
Avg Payment Period (Days) 30 days
Inventory  
Months to Keep on Hand 1
Minimum Inventory Purchase
LOANS AND INVESTMENTS

LOANS AND INVESTMENTS TABLE

Year 1 Year 2Year 3

Andrea Watson  $30,000$0 $0
Bank of America Loan  $45,000$0 $0
Total Amount Received$75,000$0 $0
STARTING BALANCES

Sales  
Sales Last Month $0
Sales 2 Months Ago $0
Sales 3 Months Ago $0
Sales 4 Months Ago $0
Sales 5 Months Ago $0
Sales 6 Months Ago $0
Assets  
Cash $0
Accounts Receivable $0
Inventory $0
Other Current Assets $0
Long-Term Assets $0
Accumulated Depreciation$0
Liabilities  
Accounts Payable $0
Sales Taxes Payable $0
Capital  
Paid-in Capital $0
Retained Earnings $0
 

Financial Statements


PROFIT AND LOSS STATEMENT TABLE

Year 1 Year 2 Year 3

Revenue $732,340$1,085,100$1,465,980
Direct Cost $578,448$856,992 $1,157,790
Gross Pro t $153,891$228,108 $308,190
Gross Pro t % 21% 21% 21%
Operating Expenses  
Salary $65,000 $68,250 $71,500
Employee Related Expenses $9,750 $10,237 $10,725
Rent Expense $18,000 $18,000 $18,000
Advertising and Promotion $18,646 $21,702 $29,319
Insurance Expense $6,600 $6,600 $6,600
Computer and Internet Expenses $1,000 $0 $0
Miscellaneous $2,400 $2,400 $2,400
Professional Fees $1,600 $0 $0
Expensed Portion of Other Current Assets$0 $0 $0
Depreciation and Amortization $0 $0 $0
Total Operating Expenses $122,996$127,189 $138,544
Operating Income $30,894 $100,918 $169,645
Other Expenses (& Other Income)  
Loss (or Gain) on Sale of Asset $0 $0 $0
Interest Expense $2,155 $1,520 $600
Total Other Expenses (& Other Income) $2,155 $1,520 $600
Income Before Income Tax $28,739 $99,398 $169,044
Income Taxes $1,436 $4,969 $8,452
Net Income $27,302 $94,428 $160,592
Net Income / Sales 4% 9% 11%
GROSS MARGIN BY YEAR

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Plan-Gross-Margin-by-Year.jpg)

NET PROFIT (OR LOSS) BY YEAR

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Plan-Gross-Pro t-Year.jpg)

BALANCE SHEET TABLE

As of Period’s End Starting BalancesYear 1 Year 2 Year 3
Cash $0 $14,333 $86,931 $206,304
Accounts Receivable $0 $67,924 $72,340 $97,732
Inventory $0 $71,416 $96,482 $96,482
Other Current Assets $0 $0 $0 $0
Total Current Assets $0 $153,673$255,753$400,519
Long-Term Assets $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0
Total Long Term Assets $0 $0 $0 $0
TOTAL ASSETS $0 $153,673$255,753$400,519
Accounts Payable $0 $64,274 $86,834 $86,834
Sales Taxes Payable $0 $0 $0 $0
Short-Term Debt $0 $0 $0 $0
Total Current Liabilities $0 $64,274 $86,834 $86,834
Long-Term Debt $0 $32,096 $17,189 $1,362
TOTAL LIABILITIES $0 $96,371 $104,023$88,196
Paid-in Capital $0 $30,000 $30,000 $30,000
Retained Earnings $0 $0 $27,302 $121,730
Pro t and Loss – Current Period$0 $27,302 $94,428 $160,592
TOTAL OWNER’S EQUITY $0 $57,302 $151,730$312,322
TOTAL LIABILITIES & EQUITY $0 $153,673$255,753$400,519
CASH FLOW STATEMENT TABLE

Year 1 Year 2 Year 3

OPERATING ACTIVITIES  
Net Income $27,302 $94,428 $160,592
Depreciation and Amortization $0 $0 $0
Gain or Loss on Disposal of Asset $0 $0 $0
Change in Accounts Receivable $(67,924)$(4,416) $(25,392)
Change in Inventory $(71,416)$(25,066)$0
Change in Accounts Payable $64,274 $22,559 $0
Change in Sales Taxes Payable $0 $0 $0
Change in Other Current Assets $0 $0 $0
Net Cash from Operating Activities $(47,763)$87,505 $135,200
INVESTING & FINANCING ACTIVITIES  
Long-Term Assets Purchased or Sold $0 $0 $0
Investments and Contributions Received$30,000 $0 $0
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $32,096 $(14,907)$(15,827)
Dividends and Distributions $0 $0 $0
Net Cash from Investing & Financing $62,096 $(14,907)$(15,827)
Cash at Beginning of Period $0 $14,333 $86,931
Net Change in Cash $14,333 $72,598 $119,373
Cash at End of Period $14,333 $86,931 $206,304
CASH FLOW BY MONTH

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Cash-Flow-Month.jpg)

CASH FLOW BY YEAR

(https://legaltemplates.net/wp-content/uploads/2016/01/Clothing-
Plan-Cash-Flow-Year.jpg)

FINANCIAL RATIO TABLE

Projected
As of Period’s End Year 1 Year 2 Year 3
Liquidity Analysis  
Net working capital $89,399$168,920$313,685
Current ratio 239% 295% 461%
Quick ratio 128% 183% 350%
  
Pro tability Analysis  
Gross pro t margin 21% 21% 21%
Operating pro t margin4% 9% 12%
Net pro t margin 4% 9% 11%
 
Debt Ratios  
Debt to assets 63% 41% 22%
Debt to equity 168% 69% 28%
 
Investment Measures  
ROI 18% 37% 40%
  L E AV E A M E S S A GE 

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