CENTRE FOR ENTREPRENEURSHIP ANDGENERAL STUDIES

NATIONAL OPEN UNIVERSITY OF NIGERIA

University Village, Plot 91, Cadastral Zone, Nnamdi Azikiwe Express Way Jabi -
Abuja

Students’ Business Plan Proposal for Royal Signature Fashion Home

A. Student Personal Details

Date:

Semester: 2019_2

Name: ______________________________________________________

Matric. No. ______________________________________________________

E:mail Address: _________________________________________________

Phone Number: _________________________________________________

Sex: ____________________________________________________________

Disability: None

Current Profession: Student

Programme of Study: ____________________________________________

Department: _______________________________________________________

Faculty: _______________________________________________________

Study Centre:

Zone:
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B. The Plan
1.0 Executive Summary

Royal Signature fashion home promises to introduce an exquisite expression of

creativity in the world of fashion. Bringing imagination alive in form of clothing and
accessories. We are going to be creating images in pictures and paintings and then
producing them as clothes, bags and jewelleries. Our products will cover the fashion
needs for all ages and genders in but limited to Lagos and its environs. We are also
going to teach and help young people who have interests in the field of fashion to be
their best in this field. The Chief Executive officer would be is a a young creative artist
with great passion for fashion. He/she would spend most of his or her leisure in creating
designs (drawing and painting, etc) as a result of the passion for fashion that he or she
shall invest in acquiring as many fashion related skill as possible. We would also
operate on a business culture that allows a free flow of communication between the
management and the staff and amongst the staff, the management and
distributors/customers. We would create a top notch customer service by providing our
customers with information and ideas about their choices of fashion while trying to give
the best options available. The art (drawing and painting) section is going to be
specifically for customer’s relaxation and leisure. We would offer drawing and painting
and other forms of appreciation to customers for referral of certain number of people.

We want to be able to make enough sales and expand our customers and staff in no
distance time. We have a plan of creating outlets and fashion training centers close to
the major higher institutions in Lagos. In no distance time also, we should be able to
create our presence in the major cities like Abuja, Port Harcourt, Ibadan, Enugu, Owerri
etc. and then getting orders and making deliveries outside the country through online
marketing.
1.1 Objectives
The objectives of the Business plan and presentation are:
1. To test the feasibility of the business plan proposed in this study

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2. To give the students a chance to put into practice all that has been learnt in the
confines of their education especially from the course, GST302 (Business
Creation).
3. To train the students on how to be entrepreneurs and undertake in various
businesses even as students (Studenpreneurs).
4. To bridge the gap between entrepreneurial theories and real life practical, thus
enhancing the flow from the academic into the corporate world.
5. To give the students a chance of appreciating the structure and operations of
entrepreneurship
6. To enlist and strengthen students’ involvement in the entire educational process
and prepare the structure of employment.
7. To ease the students’ transition from the academic to the industrial environment
after graduation.
8. To create and enhance job opportunities in Nigeria
1.3 Vision and Mission Statement
The vision of the business plan are:
1. To establish a feasible Fashion World company for commercial purposes
2. To reduce the number of unemployed youths in Nigeria
3. To empower tertiary institution students to be entrepreneurs and make them
financially independent through the acquisition of fashion design skills
To achieve the above visions, our mission shall be:
1. In the short term, start a small scale Fashion Company which would be turned to
a mega company in future.
2. Create employment opportunities by partnering and employing unemployed
youths in Nigeria
3. Embark on a skill acquisition training programme once every three months in
different tertiary institutions
1.3 Success Indicators:
Fashion is the word for what most people wear or should wear (clothes, shoes, belts,
hats, bags, etc.) in a society and the way they are designed. Fashion industry refers to
all aspects of fashion i.e. design, fabrics production, marketing and education. When in

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full bloom, the fashion industry is expected to have professional designers, models,
modeling agents, tailors, fashion photographers, fashion schools, fashion retailers,
fashion journalists and magazines, etc. in successful operation. The clothes are usually
produced and distributed in three categories: Haute Couture (custom made, in the olden
days for the aristocrats but today for the celebrities and the well-to-do), Prêt-à- Porter
(ready to wear) and High Street (mass-produced with lower quality fabrics).
 In Nigeria, not all these aspects are present many areas in the fashion industry still
remain untapped. Considering that the design and production sector has grown
tremendously in the last decade, the sales sector of our product would be easier. The
Nigerian fashion industry thus has the potential of becoming one of the main drivers of
the economy in no distant future.
2.0 Description of the Organisation/Company
2.1 Company Ownership: The idea of the business was a brainstorm and contribution
of some of the students/partners in this business plan who have been in the fashion
world and marketing business. The name of the company was agreed to be “Royal
Suite”. The students/partners who proposed this business plan would jointly own it.
However, in future, based on the Memorandum of Association, more partners can be
allowed. As at the moment of uploading this proposal, the company has not been legally
registered but efforts were being made to register it.
2.2 Start-up plan: This business will start at a small scale level, and in the long term,
say 7 to 15 years operate, fully as a standard and licensed Fashion Home whose
products and services shall be marketed not just in local and national markets, but
also in international markets.
2.3 Location of the company and Facilities: The Company shall be located at put an
address of ur choice here although with time it shall have distribution centres in
different cities. A portion of land at the back of the company shall be used to plant
coconuts for future use.

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2.4 Organisational Structure:

Chief Executive
Officer

Board of
Directors

Executive Director

Fashion Designers/Trainers

Auxiliary Staff Cleaners

3.0 The Product/Service

3.1 Description of the produce/service

Royal Signature is an entrepreneurship business that specializes in fashion which
includes but not limited to:
 Production and sales of female and male outfits
 Production and sales of children’s outfits
 Production and sales of accessories such as neck beads, hand beads, ear
beads, bead bags and Ankara bags, Ankara foot wears etc as well as training
intending fashion designers.

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 Our industry understands the power of fashion and our intention is therefore to
build a business that is not only a national brand but an international brand as
well. Our intention is to become the preferred company for our target market in
Nigeria. To however achieve this, we have several competitive strategies in
mind. We are going to be offering diverse services in our fashion business, this
means that we would not only make customers clothes for weddings, special
occasions, on movie sets but we will also sell products that our clients can use
and also offer trainings and consultancy services as well.

Another competitive advantage we have is our vast experience. This experience

is highly necessary as it shows that we understand how to help make our brand
the best, not only locally but across Nigeria. Lastly, the fact that our customers’
expectations are not only met but exceeded as well, leading to high customers
satisfaction, retention and loyalty is another competitive advantage.

3.2 Product/service uniqueness: Our service is unique because we will be

marketing our products online and doing free delivery to those that purchase
in bulk. We would also with time develop an application that can measure
people shapes, length and breadth without them having to come to our
company.
3.3 Empirical trend of sales:
Total sales for cloths, beads and bags as well as training is N4.844000.00
Cost of clothes for men
Shirt - N5000
Trouser - N5000
Both - N8000
Native -N12,000.00
Suit - N20, 000.00
Agbada - 25,000.00

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Target
15 customers per month
3 shirts - N15,000
2 trousers N10,000
3 shirts and trousers - N24,000
4 natives - N48,000
1 suit - N20,000
2 agbada N50,000
Total - 167000

Cost of clothes for women

Skirt - N4000
Blouse - N5000
Both - N8000
Dress - N6000
Jumpsuits - N10,000

Target
5 skirts – N20,000
10 blouses – N40,000
5 both – N48,000
5 dresses – N30,000
2 jumpsuits – N20,000
Total – N158000

3.4 The future of the service

Nigerians are fashion conscious and there is always one party or more to attend
and a dress code (Ashoebi) for almost every occasion. Furthermore, almost
every young person in our present society is eager to acquire a skill or more.
And every parent wants his/her children and wards to have a handiwork. The
future of the fashion industry is thus very bright. It has the prospect of being a

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 major clothing export which would help boost the economy of the country. In
future, our products would be more appreciated.
4.0 Market Analysis
4.1 Market Segmentation
The market is segmented for both the male and female gender. To capture the
people, we will have male professionals who would attend to our male clients
and female ones to attend to female clients. Moreso, a male and female section
would be created in our fashion home to ensure privacy for both the male and
female gender.
4.2 Strategy for target market segmentation
4.2.1 Consumers’ needs
We will have regular suppliers to supply us with basic production materials. We
will also have retail outlets. Besides the skills training, we would get professionals
to train our students on some basic courses like marketing, business
management etc. We would also capitalize on our relationships with customers
by getting them involved in the business. One of our key strategies would be to
give them monthly discounts for every customer they refer to the business in a
month.
4.2.2 Market trends
The market trend of fashion and accessories is stable. Those who engage in
it can do so as small, medium or large scale producers and marketers.
4.2.3 Market growth
The market growth of clothing and accessories is high. However, due to the
inconsistency of the producers and its cost, the market growth seems
dormant or not progressive but it actually is.
4.3 Analysis of the industry
4.3.1 SWOT Analysis
Strength: Our strength lie in the fact that we are offering several fashion services at the
same time to our various customers, allowing us to meet the diverse needs of our
customers.

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Weakness: Royal Signature is relatively a new business and as such we have not yet
gained much depth into the market as we would have liked. We also do not have
enough staff or the finances necessary to deliver all the services we hope to deliver.
Opportunities: Fashion is used for a variety of purpose from weddings, occasions to
movies and so much more, and so there are many opportunities available for us in this
industry as more target markets that would require our services are yet to be tapped
into by us. Also, the growing economy means more people will be willing to patronize
our services or buy products from us.
Threats: The continuity of the business is threatened by the fact that there are many
other fashion businesses in Nigeria and around the area of our fashion home.
4.3.4 Strategy for e-marketing and technological Challenges: The strategy for the e-
marketing would be based on creating a website and social media platforms where we
advertise and sell the products. However, the technological challenges of the business
would be mainly the limitation or inability to develop an application which can be used to
measure people without them having to come to our office.
5.0 Financial Analysis
5.1 Important Assumptions
It is assumed that:
1. It is assumed that the minimum capital required to start-up the Royal Signature
Fashion house will amount to Two Hundred Thousand (N200,000.00) Naira.
2. Revenues will grow at an annual rate of 15%, increasing 20% in November and
December due to a historical jump in revenues at this time of the year. We did
not use cost of goods sold in our calculations of net service sales, but included all
related recurring expenses in the operating expenses area of the profit and loss
table. The only direct costs in the sales forecast are for projected product sales.
3. Product sale are a minimal part of our market. We are not quite sure how much
revenue will be derived from products, so we took a low-ball approach and
estimated sales of N75,000.00 per month. We are certain that in time these
services will be a large part of our revenue, but to err on the conservative side,
we estimated revenues from these services to be only N11,583.33 per month for
the first year

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5.2 Financial Indicators
5.2.1 Pricing
Our pricing would conform to the existing prices of clothings and
accessories in Nigeria. However, in order to win the hearts of
consumers, our prices would be relatively cheaper in the first six
months of our business establishment.
5.2.2 Proforma; The anticipated sources of income would be through
the sales of clothings and accessories. Based on past studies of
this business, we forecast a 20 percent consistent annual growth,
and with time the company will explore new business opportunities
and have distribution outlets in Kaduna, Port-Harcourt, and
Ibadan. This would require we employing more people and
reducing the unemployment rate in Nigeria which is part of our
vision,
5.2.3 Proforma cash flow and cash flow projection:

3.2.3.1 Pro Forma Cash Flow

Items Amount
N
Registration of the business name - 20,000
Store Rent - 170,000
Tape Rule - 500 (5 pairs)
Pairs of scissors - 1,500 (3 pairs)
Packet of Thread - 2,000 (4 packs)
Chairs and Tables - 15,000 (5 sets)
Sewing Machines - 160,000 (4 sets)
Mini Weaving Machine - 80,000 (2 sets)
Embroidery Machine - 80,000 (2 sets)
Set of generator - 90,000 (1 set)
Television "32" - 55,000
Cable Connection - 20,000

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 Wall Mirror - 4,000 (2 sets)
Water Drum - 7,000
Washing Buckets - 4.000 (4 pairs)
Mop - 2,000 (4 pairs)
Miscellaneous - 50,000
5.2.3.2 Cash Flow Forecast
Expenditure from operations
Yr 1 Yr 2 Yr 3
N N N
Cash spending 591,000 130,000 80,000
Store Rent 170,000 170,000 170,000
Subtotal 761,000 300,000 250,000

Projected Profit and Loss Account

Two important assumptions with our projected profit and loss statement:
1. Our revenue is based on minimum estimated averages against highest
expenses expectations.
2. Major expenses of rent and utilities is fixed for the next three (3) years

1. Projected Sales for Three (3) Years

YEAR 1 YEAR 2 YEAR 3
N900,000.00 N600,000.00 N700,000.00

2. Net Profit Sales for Three (3) Years

YEAR 1 YEAR 2 YEAR 3
N139,000.00 N300,000.00 N450,000.00

3. Net cash flow projection for year 2020 closing at December is N139,000.00

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 5.2.4 Proforma profit and loss: Annually, we project a 70% net profit
of the cash flow and less than 20% loss.
5.2.5 Fixed Cost: One Hundred Thousand Naira (N100, 000)
5.2.6 Gross Profit: Twenty Thousand Five Hundred Naira, monthly
(N20, 500)
5.2.7 Net Profit: N139,000.00 annually
5.2.8 Direct Cost: N 761,000 annually
5.2.9 Indirect Cost/Overhead Cost: One Hundred Thousand Naira
(N100, 000)
5.2.10 Unit Cost: One Thousand Naira (N1000)
5.3 Break-Even Analysis
The break-even analysis shows that we have a good balance of fixed
costs and sufficient sales strength to remain healthy. This calculation is focused
on apparel designer sales and excludes costs related to special sales. Our
conservative forecast shows the fashion house just passing the break-even point
throughout most of the first years, but we expect actual sales to be higher.

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