NATIONAL OPEN UNIVERSITY OF NIGERIA

PORT HARCOURT STUDY CENTRE

BUSINESS PLAN FOR THE ESTABLISHMENT OF A

BOUTIQUE

BY

SILAS Patience Emmanuel

FACULTY: MANAGEMENT SCIENCE

COURSE TITTLE: BUSINESS CREATION AND GROWTH

COURSE CODE: GST302

NOVEMBER 2020
 LA PERLA

STUDENT PERSONAL DETAILS

NAME: Pamela Innocent

MATRIC NUMBER: NOU183025661

EMAIL ADDRESS: innocentpamela23@gmail.com

PHONE NUMBER: 08079375979

SEMESTER: 2020/2

SEX: Female

DISABLITY: None

CURRENT PROFESSION: Student

PROGRAMME OF STUDY: Entrepreneurship and Business

management

FACULTY: Social Science

STUDY CENTRE: Port Harcourt Study Centre

ZONE: South-South

S.D.G: Decent work and Economic growth

2
 LA PERLA

TABLE OF CONTENT

1.0 EXECUTIVE SUMMARY

1.1 OBJECTIVES
1.2 OUR SERVICES
1.3 SUSTAINABLE DEVELOPMENT GOAL
1.4 OUR MISSION AND VISION STATEMENT
2.0 BUSINESS STRUCTURE
2.1.1 CHIEF EXECUTIVE OFFICER (CEO)
2.1.2 GENERAL MANAGER
2.1.3 SALES REPRESENTATIVE
2.1.4 ACCOUNTANT
2.1.5 TAILOR
2.1.6 PURCHASER
3.0 SWOT ANALYSIS
3.1 STRENGTH
3.2 WEAKNESS
3.3 OPPORTUNITY
3.4 THREAT
4.0 FINANCIAL PROJECTIONS
4.1 MARKETING PLAN
4.2 FINANCIAL PROJECTIONS AND COSTING
4.3 START-UP BUDGET AND EXPENDITURE
5.0 MARKET ANALYSIS SUMMARY
5.1 MARKET TREND
5.2 TARGET MARKET SEGMENT STRATEGY
5.3 COMPETITION
5.4 MARKETING STRATEGY
5.5 PAYMENT OPTIONS
6.0 FINANCIAL INDICATORS
6.1 SOURCE OF CAPITAL
6.2 FINANCIAL FORECAST AND PROJECTION
6.3 FINANCIAL PROFIT AND LOSS
6.4 GROSS PROFIT
7.0 CONCLUSION

3
 LA PERLA

1.0 EXECUTIVE SUMMARY

Clothing is a beautiful visual demonstration of the social and emotional needs of

people wearing it. It also portrays in a clearly understood visual manner, what
people of different cultures and styles want socially. Fashion, through times, has
gone through so many rapid changes and bizarre extremes that it has examples
of nearly every kind of clothing function.
However, in a boutique business, the specifications and descriptions of the
designs and clothes are so general that they can fit more than one costume,
which actually are quite different in nature from each other and this is solely
dependent on the taste of the people.
The range of Nigerian dresses is remarkably wide, according to the vast
cultures, geographical differences, purchasing capacities, influence of the
western culture, and bewildering diversities of the ethnic groups. One has,
therefore, to sift and isolate, and then relate and bring together, the ideas for
creating various designs, which can fit in the context of the fashion in vogue
and the culture in practice.
There are a few major players in Boutique business and these entrepreneurs
have also taken an initiative based on their caprice and experience in the field of
fashion design. However, there is a massive potential in this field, if one can
design and market his/her products through introducing innovative designs both
in stitching as well as the fabric sector.

1.1 OBJECTIVES
 To be among the top ten favourite brands in the next 5 years.
 To add new design in every season.
 To maintain an inflation growth in earning per year at a rate of 12%.
 To obtain a return on equity of at least 30%.

4
 LA PERLA

 Providing stitching facilities to other boutiques in 2010 which are lacking

this facility

1.2 OUR PRODUCTS

Products will be priced at the high end to reflect the quality and exclusiveness
associated with the brand. High-end materials such as Crinkle Chiffon, Gernot
Chiffon, Chinese Raw Silk, Medium Silk, Leafy Print Jamadar, Chamose Silk
etc will be used. This boutique will offer following product categories of men
and women wears:
 Casual Wear
 Semi Formal Wear
 Formal Wear

1.3 SUSTAINABLE DEVELOPMENT GOAL

We have a goal to create decent work and further boost the economic growth
of Nigeria.

1.4 MISSION/ VISION STATEMENT

La Perla is a specialty boutique offering classy styles, labels and sizes of both
English and native and Italian wears and shoes. We want to Satisfy our
costumers by providing them best qualitative stuff and unique designs keeping
in view their comforts and excellence.
Our mission is to give the discriminating shopper what she or he is looking for,
whether it is fit, comfort or style, in an atmosphere that is comfortable, exciting
and satisfying. We are poised to reduce the number of unemployed youths in
Nigeria by empowering them to be entrepreneurs and make them financially
independent through the acquisition of entrepreneurial skills.

5
 LA PERLA

2.0 BUSINESS STRUCTURE

La Perla is a privately owned and managed boutique in Port Hacourt – Rivers
State but hope to grow big in order to compete favorably with leading
companies in the industry both here in Nigeria and on a global stage.

We are aware of the importance of building a solid business structure that can
support the picture of the kind of world class business we want to own.
Therefore, we are committed to only hire the best hands within our area of
operations.

At La perla we will ensure that we hire people that are qualified, hardworking,
and creative, result driven, customer centric and are ready to work to help us
build a prosperous business that will benefit all the stake holders (the owners,
workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our

senior management staff and it will be based on their performance for a period
of five years or more as agreed by the board of trustees of the company. In view
of the above, we have decided to hire qualified and competent hands to occupy
the following positions;

 Chief Executive Officer (C.E.O)

 General Manager
 Sales Representative
 Accountant
 Tailor
 Purchaser

2.1 ROLES AND RESPONSIBILITIES

2.1.1 Chief Executive Officer – CEO

 Increases management’s effectiveness by recruiting, selecting, orienting,

training, coaching, counselling, and disciplining managers;
6
 LA PERLA

communicating values, strategies, and objectives; assigning

accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and
opinions; providing educational opportunities.
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision,
mission, and overall direction – i.e. leading the development and
implementation of the overall organization’s strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

2.1.2 General Manager

 Job of the manager is to resolve the problems, which a customer may
have.

 Supervise Maintenance and keep a check on overall performance of other

employees and security guards.

 Cash inflow and out flow management.

 Feedback from customers

 Lead and motivate all employees

 Control any crisis situations.

2.1.3 Sales representative:

 The main task of a sales representative is to sell the products design by
the boutique.

 Solicit orders from new and prospective customers in a certain

geographical area
 Provide samples, and illustrations of the company's product line
 Handle product inquiries of clients
 Listen to customer concerns
 Address product-related issues
 Enlarge client base by developing excellent customer relations
 Survey, analyse and prepare proposals for new prospects and old clients

2.1.4 Accountant
7
 LA PERLA

 Accountant should have a perfect knowledge of keeping the books of

accounts and possess a suitable degree of Accountancy to keep the proper
books of accounts.

 To keep an account of the daily cash expenses and (Cash inflows and Out
flows)

 To make all the financial statements required

 Making bills

2.1.5 Tailor:
He will be stitching the clothes as directed by the designer, he will be
available all day so that if there is any alteration, he can alter it for the
customer.
2.1.6 Purchaser:
The purchaser will be getting everything from the market for the clothes for
example laces, buttons, fabric, cloth dying etc.

Recruitment procedure
Every candidate will go through a comprehensive test regarding the job
nature; all of them will be tested practically and would be selected based on
their skills and knowledge.

3.0 SWOT ANALYSIS

3.1 Strength:
 Strong relationships with suppliers that offer excellent arrangements,
flexibility, and response to special product requirements.
 Excellent and personable owner and operator, offering personalized
customer service.
 Strong merchandising and product presentation.
 High customer loyalty among repeat and high-dollar purchase customers.

3.2 Weakness:
 Currently no access to additional operating capital.
8
 LA PERLA

 Consistently out of inventory, prospectively losing sales while waiting to

restock.
 Challenges of the seasonality of the business.
3.3 Opportunities:
 Growing market with a significant percentage of the target market still
not knowing that La Perla exists.
 Strategic alliances offering sources for referrals and joint marketing
activities to extend the Company's reach and awareness.
 Promising activity from high levels of new online retail shoppers.
 Changes in economy and fashion trends can initiate wardrobe
updating with accessories rather than buying new suits, therefore,
generating sales.

3.4 Threat:
 The downturn in the economy has impacted consumer sales.
 Expansion of national department stores into the local market by
offering product to online shoppers worldwide.
 Competition from a national store; or a store with greater financing or
product resources could enter the market.

4.0 FINANCIAL PROJECTION

Sources of Income

Below are the sources of income, we intend to explore to generate income at La

Perla:

 Selling of English, Italian and locally made dresses

 Selling of all unisex Shoes and sneakers

 Selling of all kinds of underwear

9
 LA PERLA

 Home and office delivery of clothing

4.1 MARKETING PLAN

A marketing plan is a comprehensive document or blueprint that outlines the
advertising and marketing efforts for the coming year. It describes business
activities involved in accomplishing specific marketing objectives within a set
time frame.

This involves the following:

 Financial data
 Product data
 Sales and distribution
 Advertising, sales promotion
 Market data

To develop a good market strategy, the following must be put in place:

 The product
 The cost
 The target markets
 The distribution channels
 Advertisement

4.2 FINANCIAL PROJECTIONS AND COSTING

When it comes to calculating the cost of starting a boutique business, there are
some key factors that should be noted. The different type of items to be sold
determines the total cost of selling the business. The amount to lease/buy acres
land in Rivers State, the amount equipments and cooking materials, the amount
to pay as salaries to workers, cost of advertisement in different radio and
television stations and how widely accepted our products are.

10
 LA PERLA

4.3 START-UP BUDGET AND EXPENDITURE

The amount /cost will depend on the approach and scale you want to undertake.

The start-up can either be low or high depending on someone goals: vision and
aspiration for the business. The tools and equipment that will be used are nearly
the same cost everywhere.

Below are some basic areas we will spend or start-up capital in setting up La
Parel:

Start-up
Office decoration & equipment 320,000
Cost of rent for 12 months 160,000
Miscellaneous 10,000
Legal Licenses 30,000
Cost of materials for sale 1,600,000
Insurance 50,000
TOTAL: 2,170,000
Going by the report from detailed research and feasibility studies conducted,
we will need an average sum of N2,170,000

5.0 MARKET ANALYSIS SUMMARY

5.1 Market Trend:
Innovations in textiles and manufacturing have caught consumer's attention.
Seamless undergarments that permit a greater range of motion and a smoother
silhouette as well as new generations of microfibers that keep a body warmer,
cooler or drier have encouraged consumers to seek out garments and fabrics that
meet and exceed their demands.
11
 LA PERLA

5.2 Target market segment strategy:

One thing about boutique is that you can hardly find someone who doesn’t
patronize them because we all feel the need to dress not just properly but
appropriately. In view of that, we have positioned La Parel for the service of the
residents of Port Hacourt - Rivers State and every other location where our
outlets will be in key cities all over Nigeria. We have conducted our market
research and we have ideas of what our target market would be expecting from
us.

We are in business to retail our products to the following groups of people.

 Corporate Organizations
 Governmental officials
 Parents
 Children
 Individuals

12
 LA PERLA

Market Segmentati on

2%
20%

41%
16%

8% 12%

Corporate Organizations Governmental officials Parents

Children Individuals Others

5.3 Competition
La Parel has stiff local competition with the many wonderful boutiques in Port
Hacourt. Direct competitors include those boutiques that carry some of the
concepts that La Parel plans on carrying or could move easily into carrying and
are in the area. Indirect competitors are those in open markets that focus on a
different target market or do not focus on unique design that La Parel will carry,
in addition to well-known boutiques in other metropolitan areas.
5.4 Marketing strategy
The marketing of our boutique follows the conventional marketing pattern
which is dependent on selection of venue of the outlet/s and the product mix
(designs and sizes), as well as the promotional strategy. Furthermore, the
boutique owner must marketing techniques like:
 Usage of print media i.e. printing of posters and pamphlets as well as
displaying it and distributing it at proper places
 Advertisement in print media i.e. newspapers and fashion magazines, etc.

13
 LA PERLA

 Usage of electronic media i.e. projection of the boutique in fashion

programs, advertisement on television, and provision of dresses to
various television plays and films.
 Event arrangement like fashion shows and photo-shoots.
 Usage of e-commerce i.e. launching of website and advertising on web.
 Word-of-Mouth: Let your friends and family do the raving for you and
the word will get out and you will start gaining a business reputation for
offering this that or the other thing.

 Radio: Call the advertising department for an appointment. They show

you what they offer. You get to hear your business name advertised on
the radio or. You can make a choice or not.
 Fliers & Brochures These can be easily done on your computer. If
necessary, you can download free software programs online.
 Business Cards Business cards identify your business. Hand one out
every time you meet somebody new or speaking with somebody who has
a similar business. It is a simple marketing strategy.
 Promote for Seasons & Holidays Set up sales days for seasons, holidays,
Elvis's birthday, Queen's birthday. Be sensitive to faith and ethnic related
holidays.

5.5 Payment Options

At La Parel, our payment policy is all inclusive because we are quite aware that
different people prefer different payment options as it suits them. Here are the
payment options that will be available in every of our outlets.

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)

14
 LA PERLA

 Payment via Mobile money

 Payment with check from loyal customers

In view of the above, we have chosen banking platforms that will help us
achieve our payment plans without any itches.

6.0 FINANCIAL INDICATORS

6.1 SOURCE OF CAPITAL
- Personal saving
- Loan

6.2 PROFORMA FORCASTED AND PROJECTION

Proforma forecast is a financial forecast based on income statement, balance
sheet and cash form. This firm is expected to generate 500,000 per week after
the first seven months thereafter maybe more than that as the company gains
popularity with increasing customers.

6.3 PROFORMA PROFIT AND LOSS

EXPENSES
Rent 120,000
Equipment 500,000
Personnel Salary 600,000
PROFORMA PROFIT AND LOSS

year1 year2 year3

Gross profit 4,000,000 6,000,000 10,000,000

15
 LA PERLA

Expenses 2,170,000 2,000,000 4,000,000

Net profit 2,170,000 4,000,000 6,000,000

6.4 GROSSPROFIT

year1 year2 year3

Sales 6,000,000 7,000,000 13,000,000

Purchase 2,000,000 1,000,000 3,000,000

Gross profit 4,000,000 6,000,000 10,000,000

2.0 OTHER CONSIDERATIONS AND CONCLUSION

2.1 ECONOMIC JUSTIFICATION
This project can deliver increased benefits like job creation, contribution
to GDP gross capital formation, gross domestic product particularly.

2.2 COMMERCIAL VIABILITY

The Project is very profitable as it will generate millions in profit in the
next three years.
16
 LA PERLA

2.3 Sustainability and Expansion Strategy

Every established business’ aim is to make enough profit that will sustain
the company and ensure that growth and expansion takes place. However,
before we can make this profit, we know that certain factors need to be in
place to ensure that we have a chance at sustainability.
The reason why most businesses exist is because of its customers, as
without having any customers, one’s business might not only remain
stagnant but fail in the end, because customers inject money into the
business that will keep it running.
Due to this fact, we intend to ensure that we treat our customers right by
ensuring we promptly attend to their requests, orders, and complaints. We
also intend to ensure that our loyal customers and those who refer us are
given discounts on certain quantity of garri they buy from us.
Having customers is not enough but hiring the right people into the right
positions is also paramount to us. Our employees will not only be
professionals with vast experience, we also intend to ensure that they
have the best welfare package necessary to improve their productivity,
and also the best training to enhance their skills and make them better
than their peers in the same industry.
Aside having the required start-up capital necessary to start the business,
we know that if the above factors are correctly done, we will be
successful at not only sustaining the business and also expanding the
business in the long run as well.

2.4 CONCLUSION AND RECOMMENDATIONS

This business plan, if adequately envisioned in this proposal, it will be a
model. It is highly profitable, worthwhile, satisfying, and feasible based
on the in-depth analysis shown in this proposal from year one to three.
17
LA PERLA

18