Bunea Lucia

BUSINESS PLAN FOR A CLOTHING STORE

Thesis
CENTRIA UNIVERSITY OF APPLIED SCIENCES
Business administration
November 2022
ABSTRACT

Centria University Date Author

of Applied Sciences November 2022 Lucia Bunea

Degree programme
Business administration
Name of thesis
BUSINESS PLAN FOR A CLOTHING STORE
Centria supervisor Pages
Annika Sandström 40 + 2
Instructor representing commissioning institution or company

The main objective of this thesis was to create a business plan for a women's clothing store. The work̈
consists of the theoretical part where the definition of a business plan is explained. The goal was to
use the research and create a business plan for a potential future business. Qualitative research was
chosen as the research method. In qualitative research, the focus of the analysis is on thinking about
opinions and their causes and consequences. Information for this thesis was collected from books, ar-
ticles, studies, and other reliable sources.

In the first part of this thesis, it was clarified what a business plan is and what are the benefits of cre-
ating one. In the second part of this thesis the contents of a business planed were detailed and ex-
plained. The business idea, the vision and the strategy were explained. Company forms, company
risks, financing, and the operating environment were also detailed and explained with some examples.

In the last part of this thesis a business plan for an inclusive clothing store for women was created.
The business plan revealed that the company currently has the potential to succeed in the market. As a
result of the thesis, a functional and clear business plan was obtained, which the company can use to
support business and decision-making.

Key words
business plan, clothing store, entrepreneurship, inclusive, marketing, marketing plan, small business,
sustainable
TIIVISTELMÄ OPINNÄYTETYÖSTÄ

Centria- Aika Tekijä/tekijät

ammattikorkeakoulu Marraskuu 2022 Lucia Bunea
Koulutus ☒ AMK
Liiketalous
☐ YAMK

LIIKETOIMINTASUUNNITELMAN LAATIMINEN VAATTEITA MYYVÄLLE

YRITYKSELLE
Työn ohjaaja Sivumäärä
Annika Sandström 40 + 2
Työelämäohjaaja

Opinnäytetyön aiheena oli laatia kirjoittajan liikeidean pohjalta liiketoimintasuunnitelma naisten

vaateliikkeen perustamisesta Kokkolassa. Työ̈ koostuu teoriaosuudesta sekä̈ mahdollisesti
tulevaisuudessa perustettavan yrityksen liiketoimintasuunnitelman. Tutkimusmenetelmäksi valittiin
kvalitatiivinen eli laadullinen tutkimus. Analyysin pääpaino on kvalitatiivisessa tutkimuksessa
mielipiteiden sekä niiden syiden ja seurauksien pohdinnassa. Tietoa työhön kerättiin kirjoista,
Internetistä̈, tutkimuksista ja lehdistä.

Työn alussa selvitettiin mikä̈ on liiketoimintasuunnitelma, mikä on liikeidea, visio sekä strategia.
Käytiin läpi yritysmuodot, yrityksen riskit, rahoitus, sekä toimintaympäristö. Toisessa osassa
käsiteltiin tulevaisuudessa perustettavan yrityksen liiketoimintasuunnitelman. Yrityksen
liiketoimintasuunnitelma osoitti, että tällä hetkellä yrityksellä olisi mahdollisuudet menestyä
markkinoilla. Opinnäytetyön tuloksena saatiin toimiva ja selkeä liiketoimintasuunnitelma, jota yritys
voi käyttää liiketoiminnan ja päätöksenteon tukena.

Asiasanat
liiketoimintasuunnitelma, markkinointisuunnitelma, suunnittelu, vaatekauppa, yrityksen perustaminen
ABSTRACT
TIIVISTELMÄ
CONTENTS

1 INTRODUCTION ................................................................................................................................1

2 BUSINESS PLAN ................................................................................................................................3

2.1 Business plan definition .................................................................................................................3
2.2 Benefits of a business plan .............................................................................................................4

3 BUSINESS PLAN CONTENTS .........................................................................................................6

3.1 The summary ..................................................................................................................................6
3.2 Business idea ...................................................................................................................................6
3.2.1 Company forms ....................................................................................................................7
3.2.2 Strategy, mission and vision ................................................................................................8
3.3 Products and services .....................................................................................................................9
3.4 Customers .....................................................................................................................................10
3.4.1 Customer segmentation .....................................................................................................11
3.4.2 Behavioral analysis segmentation .....................................................................................11
3.4.3 Customer demographics segmentation ............................................................................12
3.5 Market ...........................................................................................................................................12
3.5.1 Market segmentation .........................................................................................................13
3.5.2 Benefits of market segmentation.......................................................................................14
3.6 Competitors ..................................................................................................................................14
3.7 Marketing Plan .............................................................................................................................15
3.7.1 Marketing Strategy ............................................................................................................15
3.7.2 Promotion............................................................................................................................16
3.7.3 Marketing plan factors ......................................................................................................17
3.7.4 Sales distribution channels ................................................................................................18
3.7.5 Competitive profile and objectives ...................................................................................18
3.8 Risks analysis ................................................................................................................................18
3.8.1 SWOT ..................................................................................................................................20
3.9 Finances .........................................................................................................................................22

4 CLOTHING SECTOR ......................................................................................................................24

4.1 Industry changes ..........................................................................................................................24
4.2 Clothing businesses in Finland ....................................................................................................25
4.3 Clothing businesses in Kokkola ..................................................................................................25

5 BUSINESS PLAN FOR WOMANLY ..............................................................................................27

5.1 Summary .......................................................................................................................................27
5.2 Basic Information .........................................................................................................................28
5.2.1 Description of the business and business idea .................................................................28
5.2.2 Market .................................................................................................................................29
5.3 Products and services ...................................................................................................................30
5.4 Customers .....................................................................................................................................31
5.5 SWOT analysis .............................................................................................................................33
5.6 Marketing plan .............................................................................................................................34
5.7 Risks ..............................................................................................................................................35
5.8 Competitors ..................................................................................................................................36
 5.9 Financial plan ...............................................................................................................................37

6 CONCLUSION ..................................................................................................................................39

SOURCES .............................................................................................................................................. 40
ATACHMENT
Attachment 1 First year budget calculation
Attachment 2 Investment calculation

TABLES
TABLE 1. Clothing stores in Kokkola.................................................................................................... 26
TABLE 2. Sustainable Brands for WOMANLY .................................................................................... 31
TABLE 3. SWOT analysis...................................................................................................................... 33
 1

1 INTRODUCTION

The world is evolving every single day. A lot of people are starting to become interested in
entrepreneurship because the idea of working for yourself is more appealing than the idea of
working for someone else. Some people have always been interested in entrepreneurship,
either because their parents have a background in business or because they grew up watch-
ing family members or friends run successful businesses. Starting a new business is not an
easy task and most people are afraid to do it since they don’t know where to start. A lot of
thought and planning should go into starting a new business but also a lot of paperwork.

In Finland, there are a lot of resources available for entrepreneurs. Because there are so
many resources and information available most people feel overwhelmed and intimidated. To
make things easier for entrepreneurs when starting a business, it is recommended to start by
creating a business plan. A business plan is a document that focuses on explaining the strat-
egy and operations of the business. A business plan is used by entrepreneurs from all over
the world but especially here in Finland because banks and different governmental associa-
tions require new entrepreneurs to provide a business plan before receiving any monetary
aid. A business plan is an important tool for entrepreneurs to help evaluate and plan for the
future.

Kokkola is a small city in Finland that apparently lacks in the inclusive sustainable women’s
clothing department. There are a lot of clothing stores, but almost none of them are for work-
ing women of all shapes and sizes. Most clothing stores in Kokkola are targeting teenagers
and older women. The stores that offer clothes for stylish working women are usually too ex-
pensive and not even sustainable or inclusive. The goal of this thesis is to use the research
found in the first part and create a business plan for an inclusive women’s clothing store
which will be opened in Kokkola.

The idea was to gather in the first part, all the information necessary on how to write a busi-
ness plan, and then use the information to write a business plan in hopes of opening an inclu-
sive sustainable women’s clothing store. In the first part of the thesis the concept of business
plan is explained plus what the benefits of creating one are. In the second part of the thesis,
all different components of a business plan are explained in detail with examples. Business
 2

plans are versatile and there are a lot of templates online, however, each entrepreneur is free
to use any template or even come up with an original one. In this thesis a simple business
plan guide has been created.

In the second part of the thesis, the most important contents should be found and are im-
portant to have in a well-balanced business plan and explained focusing on why they are im-
portant to take into consideration when creating a business plan. The information found in
this thesis can be used by anyone who wants to write a business plan for a future business.
The research used in this thesis is qualitative research which is a gathering of information ob-
tained from different reliable sources. The information in this document has been carefully
gathered from different articles, books, newspapers, and business-related online documents.
The information is written in an informative but easy-to-understand way for anyone to use as
a reference when creating a business plan from scratch.

In the last part of this thesis, a business plan was created for an inclusive sustainable
women’s clothing store. The information found in the first part of this thesis was used as a
guide and a business plan that is easy to understand and focuses on the most important as-
pects of a business plan was created. The point was to write a realistic business plan based
on the research done, so it could potentially be used in the future to start a business. In the
business plan, every single component of the plan was examined and explained. The plan
focuses heavily on understanding the market and the competitors as well as the competitive
advantages the business will have over its competitors. Starting a new business is not an
easy task to do however, after writing this thesis and the detailed business plan, it is clear the
idea is well thought out and could result in a successful business. However, due to the state
of the world, it is wise to wait a few more years before putting this plan into action.
 3

2 BUSINESS PLAN

A new business starts from an idea. After coming up with an idea the next step is to come up
with a plan on how the business is going to operate. It is extremely important for a new
business to plan and prepare for the future. The strategy of the business should be defined
beforehand to make thing easier for the entrepreneur. All the strategic planning and
operational planning should be well defined before starting a business. The best way to do
this is by writing a business plan. In this part the definition and the benefits of a busines plan
are explained.

2.1 Business plan definition

A business plan is a detailed description of a company's goals and objectives with set time
frames in which the company plans to achieve those goals and objectives. The business plan
involves a lot of strategic planning of different operations that will ultimately work together to
achieve a profitable business. The goal of a business plan is to analyze and plan different as-
pects of business to help the entrepreneur create structure and develop a strategy for the
business. The plan is also used to attract potential investors and banks so they would feel
confident enough to invest their money into the business. (Investopedia 2022)

The plan should have some basic information about the business, such as the type of busi-
ness, products or services, description of the main operations and finances. The aim is to
have a detailed description of each operation plus a description of the strategy the company
will follow to achieve success. According to Uusrityskeskus, a business plan should consist,
of but is not limited to: Basic information about the business such as: name of the business,
number of employees, business type and all field of activity. Description of the business
should be briefly written as a short introduction to the business. Products and services the
business will sell must be described. Customers analysis where it is explained who the cus-
tomers for the business will be. Market and competitors’ analysis where the market and com-
petitors are specified and investigated. A marketing plan with a clear description of most fu-
ture operations should be included. The risks and Finances of the future business must be
detailed and planned in a business plan. (Uusyrityskeskus 2022)
 4

There isn't a "one size fits all” model for business plans. There are a few guidelines that
should be followed, but each business plan could be customized by the entrepreneur. Differ-
ent business plan templates can be found online from trusted sources such as
Uusrityskeskus, which has a very detailed step by step guide on how to create a business
plan. There are different business plan templates for all preferences or approaches an entre-
preneur would want to take. If all the main points are touched on, any template can be used.
The business plan should explain why there is a need for this business and how it will oper-
ate to achieve success. The focus should also be on determining what kind of resources the
entrepreneur will need to use to achieve a successful business. A business plan usually has
between 10-13 pages and starts with a summary which is a recapitulation of the whole busi-
ness plan. The summary is mostly used by the potential investors and by banks to quickly get
an idea of what the business is all about. The business plan should flow in a logical way and
can be adjusted and modified as many times as needed throughout the writing process. The
business plan can also be updated even after the business has been established. (Uusy-
rityskeskus 2022)

The business plan will help banks and potential investors determine if the business will be a
profitable investment. Therefore, the information written in the plan should be real and the
strategy and objective should be realistic. Writing a business plan is a process that should
take some time. Even though the plan can always be adjusted, it is important to consider and
mention all the pros and cons of the business from the start

2.2 Benefits of a business plan

The benefits of the business plan are countless and there are no disadvantages associated
with writing one. The business plan is a tool that can be used to identify potential opportuni-
ties and potential risks. The plan encourages the entrepreneur to consider different aspects
of business before the business is established. In the long run, this planning for the future will
save the entrepreneur a lot of time and resources because it will help in advance with the de-
cision-making process. The business plan can be a motivator for the whole team, because
knowing exactly what the business’ objectives are and time frames in which it plans to
achieve these objectives can be a good motivator for everyone involved to make these objec-
tives happen. The business plan is also a great tool that could attract investors and allow the
 5

business to potentially get loans from banks. Investors and banks look at the business plans
to get an idea if the business will be profitable or not, and then decide if they will invest their
money into the business. The best advantage the business plan provides is structure. Every
business must have structure, especially in the beginning. (LaMarco 2022)
 6

3 BUSINESS PLAN CONTENTS

The business plan can be written freely by the entrepreneur however, there are a few
guidelines that should be followed. There are numerous business plan templates from trusted
sources on the internet, most of them are similar. The objective of a business plan is to
define all the operations and strategy the business will follow so it is important that all the
main points are touched on in a business plan. In this part of the business plan all the
important business plan contents are described in detail.

3.1 The summary

The summary is a short recapitulation of the business plan that focuses only on the main
points. The main points that should be touched on are: How is the business going to oper-
ate? Who are the customers? What are their problems? How will the business solve these
problems for them? In the summary there should also be mention of some of the main goals
and the strategy as well as a brief overview of the finances. Most business plan templates
recommend that the summary is short, about two pages, and is written in a logical, easy-to-
understand way. When writing the summary, it is good to keep in mind that this is the part of
the plan the potential investors and banks will look at first. Therefore, the summary should be
considered the front page of the business plan. The summary should be briefly written in the
beginning, updated during the writing process, and finalized in the very end. (Koski &
Virtanen 2005, 30-32.)

3.2 Business idea

The first step when starting a business is to come up with an idea. The business idea is the
starting point which will later determine the strategy, mission, and vison of the business. After
some brainstorming, the idea can be modified and improved until all the factors fall into place
and create the perfect business idea. In the business idea part of the business plan, the fo-
cus is to answer the questions: What? How? and to Whom? (Hesso 2015, 24-25.)
 7

The question “What?” refers to what the business will sell and is important because it will de-
termine the other factors in the business plan. Knowing what the business is going to sell will
lead to more questions which will be later analyzed and answered in the business plan. An-
swering “How?” refers to how the business will distribute its products or services to custom-
ers. The question “Whom?” focuses on who the customers of the business will be. In the
business idea part of the plan these questions can be answered briefly because there will be
other parts of the plan that will go into more detail about each specific question. (Hesso 2015,
24-25.)

3.2.1 Company forms

When starting a business, it is important for the entrepreneur to determine from the beginning
which business model the business will follow. However, the company form can be changed
even after the company has been established and is operating. There are many different fac-
tors that influence which model should be chosen for a business. The factors are the number
of founders, the capital requirement, the division of responsibility, the decision-making, fi-
nancing and the taxation. Based on these factors, in Finland, there are 5 company forms en-
trepreneurs can choose from freely but based on certain factors. (InfoFinand, 2022)

Proprietorship is one of the most popular company forms in Finland. This form allows entre-
preneurs to start operating as a business with a company name. In this form all the decision-
making processes and responsibility belong to the entrepreneur, but the company can also
hire other employees. This form of company is best suitable for entrepreneurs who want to
dip their feet into the business world full time or start a part time entrepreneurship with mini-
mum effort. (Lojonder & Suonpää 2005, 30)

A limited company is appropriate for any type of business in which the entrepreneur wants to
start alone or with one or multiple shareholders. The shareholder’s power in the company is
determined by how many shares they own. The limited company is the most popular type of
company form in Finland. (InfoFinand, 2022)
 8

A partnership is the type of business form where two or more people sign an agreement in
which they agree to start a company and have an equal status in anything related to the busi-
ness such as responsibilities, liabilities, and debt. The partners agree to equally split all the
responsibilities liabilities and debt in an equal way between them. The partners also agree to
equally split the operations and be equal in company’s decision-making process. (Lojonder &
Suonpää 2005, 30)

A limited partnership is a type of company form in which two or more individuals agree to
start a business and share the responsibilities, liabilities, and debt equally, but a third "silent
partner" is also participating in the company as an investor. The investor has limited power in
the company but he or she will agree to invest money or assets in the business. (InfoFinand,
2022)

A cooperative association is a type of company form in which the company's members own
the company. The number of members can vary from one to several, each member has only
one vote in the cooperative association meetings. The members have limited obligations
based on their investment of the shared capital. (Lojonder & Suonpää 2005, 30)

3.2.2 Strategy, mission and vision

The strategy of the business describes the series of action the business will use to gain a
competitive advantage over its competitors. A competitive advantage is something that sets a
business apart from another. Anything can be considered a competitive advantage. From an
extra service the business provides to a good pricing strategy. (Amandeo 2022)

When it comes to the business plan, the word strategy can have a different meaning, de-
pending on the type of business plan the entrepreneur choses to follow. For example, strat-
egy can refer to the way a business plans to grow and be more productive rather than focus-
ing on gaining competitive advantages. In other business plans, the strategy of the business
is not addressed at all, however, the main three questions are answered but without going
into too much detail about the actual strategy that is going to be used by the business. The
most used meaning for the strategy in a business plan refers to all the factors that create a
 9

competitive advantage and therefore create added value for the customers. Added value re-
fers to an additional thing the business offers customers that make it worth more than the
competitors. The strategy plan should consist of different resources such as equipment and
people who will work together to create a competitive advantage and added value for the
business. (BusinessJargons 2022)

The vision of the company is a projection of the future of the business, it emphasizes on what
the company strives to achieve and be in the future. The mission of the company describes
the purpose of the company and what is it trying to achieve. It clearly explains why the busi-
ness exists in the first place. (Hesso 2015, 27)

3.3 Products and services

The products and services part of the business plan is more than just a description of the
products and services the business is going to offer to customers. This part should go into
detail about all operations that will take place to bring customers the products or services
they need, at the right time, in the best way to solve their exact problem. However, this part
should also contain a description of the actual products and services the business is going to
provide. This part of the business plan is extremely important because all the other sections
of the business plan revolve around it. Generally, this part of the business plan is where po-
tential investors look. When it comes to the content that should be written in the products and
services part of the business plan all the details that have to do with the products and ser-
vices should be specified. It should cover how the company plans to purchase or manufac-
ture the products, plus a clear description of how it is going to distribute them to customers.
One of the most important parts to include in this section is a detailed description of why
these products are better than the competitors. This can be done by going into detail about
the pricing strategy of the products or services or by explaining what competitive advantage it
has as well as why exactly these products or services are needed on the market. (Koski &
Virtanen 2015, 37-40)

An easy way to do the products and services section is to focus on the key points. The key
points are describing why the certain product or service is needed on the market and describ-
 10

ing how the product or service will benefit the customers. If the company plans to join an es-
tablished market the entrepreneur should explain why the products or services are better
than the competitor’s similar products or services. If the product or service is an entirely new
concept, this means the business will create a new market. When creating a new market, the
focus should be on explaining why this product or service is needed by customers. The
added value refers to the extra features or advantages the product or service has over its
competitors. The added value can be anything, from a better price to an additional new fea-
ture. Anything that is new or slightly better and improved is always appreciated by customers,
highlighting the unique features the product or service has over its similar competitors could
be a focus point for future marketing campaigns. (Hayes 2022)

The goal with any product or service is to solve a customer’s problem at the right time in the
right way. In this part of the business plan the focus should be on describing exactly in which
way the company plans on doing so. It is not always about the product itself; some compa-
nies differentiate themselves competitively by offering extra services. Anything can be con-
sidered a competitive advantage to a business, even the entrepreneur’s experience can be a
competitive advantage to a business. (Hesso 2015 ,51-52)

3.4 Customers

The customer part of the business plan should focus on analyzing and understanding cus-
tomers. The population of this planet is enormous and constantly growing. Each person is an
individual, and everyone has their own individual needs and wishes. It is impossible to appeal
to so many people, therefore, it is important for businesses to focus and target smaller
groups of people with similar needs so the business could try to fulfil their needs as well as
possible. Focusing on smaller of groups of people based on different criteria is called cus-
tomer segmentation. The goal of a business is to be there for the customers at the right time
with the right product that could solve their problem so they will purchase the product or ser-
vice from the business. To do that, a business must know and understand its customers on a
deeper level. Understanding the customers and their needs allows the business to provide
customers with exactly what they need. (Jylhä & Viitala 2013, 51-52)
 11

3.4.1 Customer segmentation

Customer segmentation can be divided into two different categories: behavioral profile and
demographic profile. Behavior profile focuses on understanding the customers and potential
customers. It is a detailed analysis on customers that focuses on determining why customers
purchase a certain product or why they don’t purchase it. Understanding why customers
make certain decision helps gain insight and ultimately find ways to influence them to make a
decision that would be in advantage of the business. (Hoyer & Pieters & MacInnis 2013, 20.)
Customer demographic profile focuses on determining certain demographic attributes the
customers have in common and therefore what similar needs based on these they might
have. (SBDC,2022.)

3.4.2 Behavioral analysis segmentation

Buying criteria is the analysis that focuses on understanding the different aspects that could
influence customers during the initial stage of the purchasing process to make the decision to
purchase a product over another. There are numerous factors that affect customers buying
behavior, from price to popularity to aesthetics. Each factor is important to analyze and take
into consideration when analyzing the customer buying criteria. The most common factors
are price, quality, convenience, and popularity. (Puustinen 2006, 41-43) Every factor is
important, however, they each have a different relevance in every single individual’s buying
process. Some individuals might be looking for a cheaper, lower quality product while others
might be looking for the higher but better-quality product or service. The goal with the
customer behavioral analysis is to analyze and understand which factors are the most
relevant for the company’s potential customers. By identifying the factors and the needs
associated with them, the company can clearly understand and use the added value it has
over its competitors and market itself to potential customers and ultimately persuade them to
choose them over the competitors. (SMDC, 2022)

Sometimes, customer segmentation can be done by focusing more on the decision-making

process. Analyzing which aspects influence the customers during the actual purchasing
process can offer the business a competitive advantage. For example, some customers
prefer a simpler check out process such as quick check out or, for in-store purchases a fast
 12

option to pay like self-check-out. Competitive advantages can be determined by

understanding a company’s potential customers, knowing the customers’ habits and
preferences is the only way to offer them a personalized experience. Another way to analyze
customer behaviors is to analyze the customers’ actions and patterns, determining which
products, how often and what’s the average spending amount the customers usually spend
during a shopping spree. (Fontanela 2022)

3.4.3 Customer demographics segmentation

Another way customer segmentation can be done is by dividing potential customers in

smaller groups based on different demographic factors such as age, income, location, educa-
tion, ethnicity, and others. This type of customer analysis and segmentation focuses on iden-
tifying the individuals who are more predisposed to choose a specific product over its com-
petitors. There are many factors to take into consideration but normally a customer segmen-
tation based on demographics focuses on finding a market rather than targeting the submar-
ket of the big market. The submarket is a group of customers who would have only one de-
mographic factor in common but are still looking for a similar product or service because de-
mographics play a very important role in the customers’ decision-making process (Qualtrics,
2022)

3.5 Market

An exchange of goods or services between a company and customers is a market, depend-

ing on the product or the service a company is selling, the business is part of a specific mar-
ket. (Junea 2022) There are different types of existing markets that a company can join by
selling similar products or services that already exist and are sold on specific markets. How-
ever, when a company comes up with a new product or service that is so new and unique it
hasn’t been sold before, it automatically creates a new market. New markets are created all
the time, the biggest advantage of creating a new market is that new markets do not have a
lot of competitors, established markets are tough for new businesses because of how many
competitors are competing to sell similar products to the same customers. (Gordon 2022)
 13

For a new company, it is extremely important to analyze the market in which it is going to op-
erate. The goal of a business is to be there for customers at the right time with the right solu-
tions for their problem by studying an already existing market the business could gain com-
petitive advantages over its competitors. Market segmentation is a strategy in which the mar-
ket is divided into smaller groups based on different characteristics. A market study generally
focuses on the size, the growth, and the structure of the market. It is easy to study an existing
market by looking at the competitors and the data that already exists, this can provide insight
into the buying power of customers as well as additional features customers would want from
a product. When joining an existing market, the main aim of a business is to offer customers
a product that is better than the products the competitors are already selling, even the slight-
est improvement to an existing product could influence a customer to purchase from a new
company. (Pitkämäki 2001, 19)

Generally, it should be taken into consideration that it is quite hard to take away customers
from competitors. When a new market is born, there are almost no competitors or data to
study which would make analyzing the market impossible, however, it is possible to deter-
mine the size of the market by looking at potential customers. Potential customers could be
determined by doing different surveys and campaigns. Potential customers are customers
who would be interested in buying a certain product or service but didn’t make the decision to
purchase yet. (Koski & Virtanen 2005,51-54; Jylhä & Viitala 2013, 100-102)

3.5.1 Market segmentation

Market segmentation is a strategy used to divide the market into smaller more manageable
groups a company will focus on. Market segmentation groups are chosen based on different
criterias such as demographic, psychographic, behavioral, geographic, and firmographic seg-
mentation. Psychographic segmentation focuses on people who have a similar lifestyle and
principles. Behavioral segmentation is usually focused on understanding the customers’ pur-
chasing habits throughout all the purchasing process and understanding why they might
make a purchase. Geographic segmentation is an easy way to divide the market because it
focuses on the location of the customers, focusing on the location is a simple way to target a
big group of customers that might have similar needs based on the environmental factors that
they are facing in that specific location. Firmographic segmentation focuses on highlighting a
 14

company's competitive advantages in their market, is usually done by analyzing different data
that can be found online about the competitors. (Virag 2022; Viitala; Jylha 2006,101-110)

3.5.2 Benefits of market segmentation

Market segmentation can be a long expensive process but the advantages that come with it
are worth the investment. The biggest advantage of market segmentation comes from under-
standing the customers. By knowing the customers, a company could carefully and effec-
tively target its ideal customers. Identifying the ideal customer allows companies to offer a
better overall experience throughout the purchasing process, as well as provide customers
with the best product that will solve their problem at the best possible time. The focus on the
customers is a big plus for companies because it creates brand trust. Creating trust means
creating a relationship between the customer and the company, this is beneficial for the com-
pany because customers that trust the brand will be purchasing again. Trying to please a
huge market is impossible, by focusing on smaller targeted groups of customers who display
the same or similar needs makes it easier for the company to develop new products. Devel-
oping new products is a time consuming and expensive process especially for a starting com-
pany. Therefore, identifying a niche market of customers Is a good strategy for new busi-
nesses. Understanding the exact needs of the targeted market allows the business to come
out with special products that are designed exactly to solve their exact needs. In the long run
this will save the company a lot of money and resources. (Tarver 2022.)

3.6 Competitors

In an established market, a company enters an extremely competitive zone, where a lot of

companies try to sell similar products to the same customers. In this stage, the goal of the
business is to determine how it’s going to make the customers purchase their product over
the competitors. In the competitive analysis part of the business plan, the entrepreneur
should focus on the whole competitive environment and write a detailed description of the
competitive environment the business is going to enter. If the business is not entering an es-
tablished market, which means there are no competitors, the entrepreneur should still con-
sider analyzing similar markets with similar products. (Moore 2022; Pitkämäki 2001, 39-40.)
 15

There are a lot of competitors on the market but not all of them are direct competitors, deter-
mining which are a business’s direct competitor is a crucial step because it makes it easier to
study their products and strategies and ultimately, gain insight, gather data, and come up
with solutions and strategies on how to gain competitive advantages. One of the most im-
portant steps when writing a competitive analysis is to gather data about the competitors, this
means studying their products, customers, and strategies. Data about competitors can be
collected from different online sources as well as in personal research by purchasing and
studying their products. In this part of the business plan the entrepreneur can start off by de-
termining who are the business’ direct and non-direct competitors. The direct competitors
should be analyzed closely. This part of the business plan should focus mainly on research
and data gathering. For a new business, the most important aspect that can determine its
success is to identify a market niche. A market niche is a submarket of a market where the
customers’ needs are not being met. (Sheeharan 2021.)

3.7 Marketing Plan

After identifying the market, the competitors, and the customers, the next step when writing a
business plan is to write a marketing plan. A marketing plan is a written description of differ-
ent methods and marketing tools a business will use to promote its products or services to
potential customers.

3.7.1 Marketing Strategy

A marketing strategy plan describes the ways in which a business will promote its products or
services to customers. The first step in developing a market strategy is to determine which
customers the business is trying to reach, this can be done by focusing on certain groups of
people based on similar characteristics such as age, location, or lifestyle. After narrowing
down the customers, the next step is to determine what the competitive advantage is the
business has over its competitors. The last step is identifying the mission and vision of the
business. After gathering all this information from previous parts of the business plan the next
step is to come up with the branding. Branding is a combination of different elements such as
 16

a logo, a pallet of colors as well as different designs that work together to set apart one busi-
ness from another. (Holma & Laasio & Ruusuvuori & Seppä & Tanner 2021, chapter 2.)
Branding helps to attract customers and build long-lasting relationships by delivering prod-
ucts or services that are always aligned with what the brand’s mission and vision is. (Stahl-
berg, 44-45, 2021)

Branding is a very important part of marketing because it tells a story, it helps customers un-
derstand and relate to a business. For example, a business that is eco-friendly will use this
as part of the branding. Being eco-friendly means the business cares about the environment
and has strong principles that will resonate with customers. If the competitors are not eco-
friendly, naturally the customers who have the same values and morals, will gravitate more
towards the business that is more environmentally friendly. Branding and competitive ad-
vantages work hand in hand. Most of the competitive advantages that have to do with the
sales part of the process can be used in branding. Branding is a great marketing tool that
also increases business value. (Viita 2020, 66-86.)

3.7.2 Promotion

The target of marketing is to promote your business, product, and services to customers. The
idea is to make people aware of the assets the business possesses and make them want to
purchase from the business. Promotion can be done in different ways; some are traditional
promotional ways and others are newer ways. Depending on multiple factors such as:
budget, targeted customers, demographic, type of product or service, a business must decide
which type of promotion is best for their needs. Traditional ways of promoting are usually
more expensive because they are focused on working with 3rd parties to reach customers.
Some of the most popular traditional marketing ways are advertising on TV, radio, and in
newspapers. Other traditional ways are email marketing and cold calls marketing. New ways
of promoting are generally cheaper, faster and some might even be completely free. The new
ways generally focus on using the internet to promote the business or the products. The most
popular way is by using social media such as Facebook, Instagram and Twitter to promote
and build a brand even for free, but most media sites also offer paid advertisements with
guaranteed reach. (Virtanen 2020,12-13).
 17

Depending on the marketing strategy the business choses to use and the customers the
business wishes to reach, a hybrid marketing strategy where a business uses a combination
of traditional and new ways of promoting can be used.Understanding the customers and po-
tential customers is very important factor when deciding which promotional approach, a busi-
ness will use. For example, newspaper advertisement is an effective traditional way of pro-
moting, however if a business wishes to target customers who are between ages 18- 25 this
will be a non-effective way of promoting because most people who are part of that age demo-
graphic do not read newspapers.

3.7.3 Marketing plan factors

When writing a marketing plan and deciding which promotional way to use, the factors that
should be taken into considerations are budget, pricing and customers. A new small business
will start off with a smaller marketing budget compared to its bigger, more established com-
petitors. Different ways of promoting differ a lot in pricing so taking into consideration the pric-
ing of each way of promoting is crucial when writing a marketing plan. Traditional ways of
promoting are usually more expensive and time consuming but effective with almost guaran-
teed results. However, they are mostly used to reach a wider variety of customers. (Hesso
2005, 119)

Pricing is a great tool for marketing. When writing a marketing strategy, a business should
consider what kind of competitive advantage the pricing of its products or services could
bring. One thing that is crucial in this part is to decide how the business is going to operate
and generate profit. There are two main ways in which the pricing can be used: the first way
is to sell lower quality products or services, at a lower price. Using this strategy will result in
more one-time customers with low profit margins. The other approach is to sell higher quality
products or services at higher prices, which will result in fewer customers with higher profit.
However, satisfied high value customers will result in better brand trust which will ultimately
result in loyal returning customers. (Lojonder & Suonpää,2005 30)
 18

3.7.4 Sales distribution channels

Distribution channels are tools that help businesses reach their customers. There are differ-
ent distribution channels that work for different types of businesses and customers. Choosing
the best one for a specific business depends on different factors. The most important factor is
the customer. Determining in which sale channel the potential customer is the most active in
is the best way to choose which channel the business will be the most active in. The most
popular sales channels are websites, retail, social media, and resellers. (Siniaalto 2014,32-
46.)

3.7.5 Competitive profile and objectives

Using the data found in the competitive analysis, all the competitive advantages should be
used to determine what kind of added value the business can bring customers. Identifying the
features, the customers might wish the competitors would provide them with can result in a
competitive advantage that can be used to attract more customer. Highlighting these ad-
vantages to potential customers could effectively persuade them to purchase from a new
business. A marketing plan should include long term and short-term objectives, having some
goals in place can be beneficial for the business because reaching a goal can be a good in-
citive. Setting up some objectives and timelines will make it easier to track the success of
each promotional effort. This will give an idea of which way of delivering the message to the
customers is the best option for the business and in the long run, save the business time and
resources. (Järvinen & Kari 2020, chapter Myynti ja markkinointi)

3.8 Risks analysis

When starting a new business, it is crucial to be prepared for any potential issue that might
arise. Identifying the risks can be detrimental for a small business because it can be a good
indicator of any potential weaknesses the business plan might have. Identifying the risks from
an early stage could help prevent them from happening and in the end save the business
time and resources. There are numerous risks a new business could face; it is impossible to
 19

identify all of them right from the beginning. However, identifying some of them from an early
stage can aid the business in how to prevent, react, or even lower the chances of some of
them occurring. Breaking down the risks and how the business is prepared to deal with them
will also show potential investors that the business is aware of any weakness it might have,
and it is prepared to react in every situation, this will build trust between the business and in-
vestors. A risk analysis should contain a detailed breakdown of the most common risks a
business might face in the certain market it operates in, but also a risk assessment strategy
with a plan that explains how the business is ready to react in case any of these potential
risks were to happen. (Viitala & Jylhä 2013, chapter 20)

The risks a business might face can be broken down into three categories: general risks, in-
dustry specific risks and company specific risks. General business risks are risks that almost
all new businesses will deal with at a certain point, however the magnitude effect the risk
might have on the business depends on each individual case. For new businesses the most
common risk is not having enough customers or not having any customers. The other issue
is building relationship with the customers. For bigger companies one general risk is estab-
lishing and keeping a relationship with customers to make them a returning customer. Indus-
try specific risks, depend on which industry the company operates in, because there are spe-
cific risks each industry is more prone to. The major risk in all industries is the competition.
No matter if the company is big, small, just starting up or is already well-established the com-
petition is always high in all industries. It is extremely important to know the competitors so
the business can prepare itself to deal with this risk. Company specific risks vary for different
types of businesses because they differ in all aspects from the way they operate to the num-
ber of staff they have. Each company has its own set of risks specific to the type of company
from operational risks to recruitment risks. Depending on the stage the company is in, the
risks can have different relevance to the business. (Global Risk Guard 2020.)

Risks can be broken down even further in five more specific categories:
Strategic risks – refers to the risk that a company might not reach its long and short-term
goals due to poor strategic decisions. Not following the business strategy that was set in the
beginning could lead to long term repercussions. Compliance risks- refers to a company's
threat from legal matters. If the business, is not complying with the law and doesn’t follow or
doesn’t act in accordance with them will result in large financial penalties. Financial risks – A
 20

business with poor monetary management will result in failure to pay the debt or fulfill con-
tracts and obligations. Operational risks - Operational risk are risk that arise from internal er-
rors such as human errors, technical and system errors. This will result in monetary loss due
to negligence. Market/Environmental risks – Market risks are risk due to the market con-
stantly changing, this affects different things like the interest rate prices of different raw mate-
rials as well as currency changes. Environmental risk-are risks that the business has no
power over, and these can happen at any given time for example: natural disasters, wars,
and sickness (Global Risk Guard 2020.)

There are different ways a company can deal with risks. The first way to deal with risks is to
avoid them. By identifying the risks in advance, it is easier to develop a plan on how to avoid
them. If avoiding the risks is impossible, then the next step that can be done is to reduce the
risks. Reducing the risks means developing a plan that can aid in case the risks do arise.
Transferring the risks refers to the steps a business can take after identifying the risks to
transfer those risks to a third party such as an insurance company. If none of the other meth-
ods work the last resort a business has is to just let the risks play out and see what will hap-
pen. Sometimes risks can be a good thing for a business, smart entrepreneurs take ad-
vantage of the risks and in the end, use them to their own advantage. However, it is im-
portant that risks are carefully evaluated and written in the business plan. (Lojonder, Suon-
pää 2005, 69 -72)

3.8.1 SWOT

The SWOT analysis is a strategic way of analyzing the factors that could affect a business.
SWOT comes from strengths, weaknesses, opportunities, and threats. These factors can be
divided into two categories: internal factors such as strengths and weaknesses and external
factors such as threats and opportunities. The SWOT analysis can be done in different ways
depending on the objective of the analysis (Jylhä & Viitala 2013, 49-50.). The main objectives
of a SWOT analysis are: Identifying new opportunities and taking advantage of them,identify-
ing new trends and responding to them ,coming up with new technology and studying the
competitors plus deal with changes they make to their operations. (Queensland Government
2022)
 21

Strengths are the areas the business is doing well in. This can be anything, for example a
competitive advantage such as great customer service. Identifying the strengths is the first
step, taking advantage of strengths is always a good idea, because by knowing exactly which
those advantages are it can help maintain them or even add more value to them. Weak-
nesses refers to the areas in which the company isn’t doing well. Identifying those areas in
which the company isn’t doing its best is a crucial factor because after identifying the areas it
is easier to come up with ways to minimize the weaknesses before they turn into a major is-
sue. (Åkerberg 2017, chapter 4)

Opportunities are the times in which the business could take advantage of the circumstances
in hope of gaining something valuable. Identifying the opportunities can help a business pre-
pare to take advantage of future possibilities that might arise. Opportunities in business arise
from external factors over which the company doesn’t have any control, therefore it is im-
portant to consider any possible opportunity in advance. Not taking advantage of an oppor-
tunity can have a negative impact on a business because others might take advantage of it.

Threats are the potentially bad situations a business might be put in. Threats are usually ex-
ternal factors that the business should take into consideration when writing the SWOT analy-
sis. Identifying the threats can help the business prepare in advance and maybe even mini-
mize them by making certain decisions or strategic movements. Addressing the threats in ad-
vance is beneficial for the business because knowing of them could help minimize them be-
fore they turn into a bigger issue. (Åkerberg 2017, chapter 4)

The SWOT analysis can be conducted for new companies but also during the lifespan of a
company because this analysis is used to support strategic planning and decision making. It
is always beneficial to conduct one at different times during entrepreneurship. The SWOT
analysis is a good tool to use to identify all the factors that could affect the business. By iden-
tifying the factors that could be harmful to the company, it can give the company an oppor-
tunity to prepare in advance and be somewhat prepared for the worst. Identifying the oppor-
tunities, a company might have, they can really be used as a push for the company to gain
some competitive advantages. It is good to know that different entrepreneurs look at different
things in a different way, what might look like a threat to some may look like a positive oppor-
tunity to others. It is also important to be realistic when conducting a SWOT analysis. The
 22

SWOT analysis can be a great tool in identifying the competitive advantages a company has
over its competitors. (Viitala & Jylhä 2006, 59 – 60; Åkerberg 2017, chapter 4)

3.9 Finances

In the finance part of the business plan the entrepreneur should write a detailed breakdown
of the company’s finances and financial plans. Every single aspect should be taken into con-
sideration from loans to calculations of the first year in business, each expense should be
calculated and added to the plan so the entrepreneur could easy determine if in the end the
business will be profitable or not. A good financial plan prepares the company for the future
and establishes the basis for the company’s operations. Having a financial plan is also bene-
ficial for potential investors because it can give them an idea of how profitable the business
will be. (Järvinen & Kari 2020)

A good financial plan is very important for any starting company. The finances should be
carefully planned and assessed as accurately as possible. By knowing exactly where money
will be spent the entrepreneur could focus on each operation and start off in a positive and
less stressful way. The financial plan is also a great tool for the entrepreneur to determine if
the business will be profitable because by calculating all the expenses and income it is easy
to see if there will be any profit. If a company’s income is higher than its expenses, the
remaining amount is profit, having profit means the business is profitable. The company's
capital consists of equity capital which is the money the entrepreneur can invest and the
borrowed capital which is money the company can receive from different sources such as the
bank or investors. A starting business can receive some money from certain organizations at
any point for starting, maintaining, or expanding different operations. (Lojonder & Suonpää
2005,48 – 49.)

The company loan capital can be divided into two categories, short term, and long-term
loans. Long term loans are loans, a company could receive but pay back over longer periods
of time usually, between 5-10 years upon receiving the loan. Short term loans are usually for
less than a year. (Lojonder & Suonpää 2005,49.). The borrowed capital is extremely
important for starting companies for different operations such as purchasing of inventory.
There are a lot of different free templates online for entrepreneurs to use and include in their
 23

business plan. The templates are a good tool that help plan the future finances and prepare
for different scenarios. A good business plan should include at least a profitability calculation
and an investment calculation, most business plans also include a first-year budget
projection. (Uusyrityskeskus 2022)
 24

4 CLOTHING SECTOR

The clothing sector has drastically changed in the past two years. The customer behavior
worldwide has gone through major changes due to different factors such as the pandemic. In
this part all the major changes as well as the shift in customer behavior is explained.I n this
part the the clothing sector is explained for Finland and Kokkola with the focus on clothing for
women.

4.1 Industry changes

The world has changed a lot in the past two years, from customer behavior to the economy
nothing is the same anymore. The pandemic has had a negative impact on every single
aspect of life. During the pandemic people were forced to quarantine at home for long
periods of time. Most people started working remotely and even now after the pandemic is
somewhat under control some people use a hybrid way of working from home and showing
up in person a few times a week. These major changes in people’ life have had a direct
impact on the way people look at fashion. (Cleofas & Prasetyo & Chuenyindee 2021,20)

The pandemic has also made people more conscious of their purchasing habits. According to
Forbes, the pandemic has changed the entire fashion industry, people have started to be
aware of the impact their consumerism has on our planet. Fashion businesses from around
the world are now forced to become more environmentally friendly. Circular economy is what
the fashion industry is starting to lean towards. (Judith Magyar, 2021) Circular economy is a
type of production and consumption model which focuses on using and reusing everything
that comes out of a manufacturer. The goal is to repair reuse and recycle everything during
each cycle. (European parliament, 2015)

Due to the pandemic the consumers have not only been looking to purchase from
environmentally friendly businesses, but they have also been staying away from big chains
and have chosen to support small local businesses. This is because the pandemic has
affected smaller business more than it has affected big chains. Another reason why people
 25

chose to support small businesses is the impact purchasing from small local businesses
might have on the on the local economy. (Kulsum 2020)

4.2 Clothing businesses in Finland

Most clothing worn in Finland is imported from other countries because fashion from other
countries is cheaper. Finland does have some popular local brands of clothing that are very
appreciated by the international market. Finns do value the high-quality local brands despite
the high price tags. Finnish brands come with a high price tag because the cost of materials
and labor in Finland is quite expensive compared to other countries.

Recycling is also very popular in Finnish culture and people often purchase clothes from thrift
stores. Grocery stores in Finland carry clothing, shoes, and accessories from popular brands
such as Adidas, Nike and many other. Sizes in most grocery stores even go up to 3XL plus
almost ever grocery store has its own brand of clothing they sell in their stores. Finns are
passionate about the outdoors so Finnish fashion focuses on warm durable clothes and ac-
cessories that last a long time. The emphasize on sustainability is also a huge part of the
Finnish fashion industry. Finnish clothing brands are appreciated and respected all over the
world. The most well-known Finnish brand is Marimekko which is a sustainable designer
brand. (Business Finland 2022)

Finland wants to create the world's most responsible and functional textile cycle by 2035. The
Finnish Textile & Fashion in collaboration with VTT and other textile industry operators, have
created a plan on how Finland plans to produce the world's cleanest recyclable material for
textiles by using cellulose fibers and new technologies in hopes to reduce the microplastic
problem in synthetic fibers. (Kamppur & Kallio & Mäkelä & Harlin 2021)

4.3 Clothing businesses in Kokkola

Kokkola has a lot of clothing stores, the stores are diverse and easy to find. The pandemic
has also had an impact on people in Kokkola. Because this is a small town most people have
stayed at home as much as possible for over a year. Small businesses have been affected
 26

and a lot of business have shut down. During the last couple of years there are some clear
patters people from Kokkola have been showing. First, there are a lot of thrift stores, and
most people take advantage of them, they are extremely popular for all age groups because
people in Kokkola are strict about recycling. The other thing people do is sell their old clothes
on Facebook groups. According to Visit Kokkola there are 11 thrift stores in Kokkola, clothing
and 8 stores centrally located in the Cydenia shopping center. (Visit Kokkola 2022). Based on
the information found in TABLE 1, it is clear Kokkola does have a lot of clothing stores but
only a few of them are inclusive and sustainable.

TABLE 1. The most popular clothing stores in Kokkola (Google maps 2022; Visit Kokkola
2022)

Company Pros Cons

+Fidelity program -Focus on older women

KappAhl +Online store -Small selection of clothes
+Eco-friendly
+International

+Online store -High prices

Aukia +Sustainable brands -Small sizes for most clothes
+Diversity

+Extremely low prices -Not sustainable

+Huge plus size section -Focus on teens
H&M +Diverse clothes -Fast fashion
+Online store -Messy store
+Huge international chain
+Loyalty program

+Medium-high prices -No online store

Moda + Loyalty program -Limited options
-Focus on older women

+Dressing guidance -Need an appointment for dressing guidance

Lindex +Cheap prices -Prices do not reflect sustainability
+Medium selection -Limited sizes options
+Own brand of clothes
-Somewhat sustainable

Halonen Karleby +Designer brands -Limited sizes options

+Online store -High prices
+Loyalty program -Focus on older women

+Only for women -Limited sizes options

Gina Tricot +Affordable prices -Focus on young adult women
+International -Made in China
+Wide selection

Boardvillage +Online store -Limited sizes options

+Street style -Focus on younger people
+Wide selection of Active wear -Not sustainable

+Online store -Low prices

BIK BOK +Only for women -Most clothes made in China
+central location -Small selection
 27

5 BUSINESS PLAN FOR WOMANLY

Writing a business plan is a time-consuming task that takes a lot of research and planning for
the future. The plan helps the entrepreneur create structure and consider all aspects of the
business before starting one. In this part, a business plan for a future potential inclusive and
sustainable clothing store for women was created from scratch using the research found in
the first part of this thesis. All the main contents of a business plan were touched on and ex-
plain for the certain business. The plan revealed the business will potentially be successful.

5.1 Summary

WOMANLY will sell high quality clothes, shoes, and accessories for women. The business
will act as a retailer for popular high-quality brands that already exist on the market but that
correspond and have similar values to WOMANLY. Keeping in mind that down the road I will
come up with my own line of clothing and accessories that will only be sold in my store. The
brands WOMANLY will sell are going to be selected by the owner, based on their values and
practices they follow. Their values must align with what the business stands for which is sus-
tainable, inclusive slow fashion for working women of all shapes and sizes. The goal is to
gather a wide range of clothes from high-quality sustainable brands for all women. The price
for clothing will not differ for bigger size, even though it costs more to make a bigger size the
clothing shouldn’t be priced accordingly, because customers will feel discriminated.

The target customers for WOMANLY will be working women between the ages of 22 and 45
with mid-range income who want to dress stylishly in any situation. With a wide variety of
sizes and high-quality clothes plus the flawless customer service and extra services the busi-
ness will provide, the main objective of the business will be to create trust-based long-lasting
relationship with customers. The business will be open in downtown Kokkola in the Cydenia
mall, which has a bunch of different shops and a food court. The location has been carefully
picked to go with our brand which is fashion for busy working women that don’t have time to
go out of their way to a more remote location to purchase fashionable clothing. The central
location will also market itself, for example, some women who work downtown in corporate
offices go to the mall to get lunch and will certainly appreciate a calm relaxing environment to
hang out and look at clothes while they are on lunch break.
 28

The business will focus on providing a personalized experience for each customer, from the
actual handpicked products to the whole shopping experience. Each process and step will be
carefully thought out to provide the best experience possible. The company’s competitive ad-
vantages are numerous, some of the most important ones are, style guidance where the
owner will be personally working with customers upon request to figure out the best clothes
that will fit their style needs. Another additional service will be the option to access a mobile
application that will allow customers to virtually try clothes on to save time and be more effi-
cient. These two additional services alone are something that our direct competitors do not
provide for their customers. The additional services combined with the high-quality wide vari-
ety of clothes will be a combination that will attract a lot of potential customers who are look-
ing for a more personalized efficient process.

5.2 Basic Information

The name of the store will be WOMANLY because it is specifically for women. The location
will be downtown Kokkola in the Cydenia mall which is a strategical business move beneficial
not only for sales but it also part of what the brand stands for. In the beginning the owner will
be the only employee she will be taking care of everything from accounting, marketing, cash-
ier work to cleaning the store. The store will be small, well decorated and the clothing will be
color coordinated to match the aesthetics of the brand. WOMANLY will sell a with a wide vari-
ety of clothes, shoes, and accessories for women of all shapes and sizes. The reason for
starting the business is author’s passion for entrepreneurship and sustainable inclusive fash-
ion.

5.2.1 Description of the business and business idea

The clothing store will act as a retailer for a wide range of brands that are not only good qual-
ity and sustainable but also inclusive with their sizes. WOMANLY will mostly focus on mid-
range popular brands like Index, Vila Max, Tommy Hilfiger, and Skims but also many other
popular brands that are not yet available in Kokkola. The aim is to gather an array of different
brands that will be appealing to our target customers who are working women who like to
 29

dress stylishly and have a mid-range budget. The store will not only offer stylish clothes but
the main features that will differentiate WOMANLY from other clothing stores will be the extra
services the store will provide to its customers as well as the personalized customer focused
service. The extra services WOMANLY will offer are dressing guidance, optional self-check-
out, a fidelity reward program which will be full of benefits for the loyal clients and a virtual try
on mobile application that will let customers try on clothes on a virtual body based on their
exact measurements. WOMANLY will not sell cheap clothes that will disintegrate after two
washes because that is not a sustainable practice, WOMANLY will sell only quality clothes
that will last more than a season.

5.2.2 Market

The fashion industry in Finland is doing relatively well, despite the current events. There have
been certain changes in the operating environment since most people have been staying at
home and even working from home for the past two years. Most people have turned to online
stores. The demand for traditional brick-and-mortar stores has always been declining due to
the increase in convenient online stores. WOMANLY does have a plan to start an online
store but that will be in the second year of business.

Consumption habits have also changed due to the pandemic, most people have stayed at
home so the demand for stylish fashion has declined and the demand for cozy comfortable
clothes has increased. However, things are starting to go back to normal which is a really
good time to start a brick-and-mortar clothing store. After such a long period of staying at
home people are excited to go shopping in an actual store where they can get out of the
house and get to try-on and touch different materials before purchasing a piece of cloth-
ing.The trend right now is to purchase environmentally friendly clothing. Small local busi-
nesses are also more appreciated than big corporations. WOMANLY will offer only sustaina-
ble brands and will start ff as a small local business o both bases will be covered.
 30

5.3 Products and services

WOMANLY will sell clothes, shoes and accessories from different hand-picked brands that
are not yet available in Kokkola. The owner will personally contact all the clothing brands that
have similar values as my store by sending them an email and then negotiate the prices and
logistics to get the best price and therefore offer the best prices for the customers. The goal
is to work with different brands to bring the best quality, best price, and best practices for
WOMANLY’s customers. The products are not going to be anything new or improved but
WOMANLY will gain the competitive advantage from the extra services and personalized
customer experience it will provide.

The extra services WOMANLY will provide is fashion guidance, where the owner will be help-
ing customers one on one to find the right clothes and accessories. Some people use shop-
ping as therapy, they hang out in groups to shop, talk about the products, and discuss the
best options, however, some people don’t have any friends to go shopping with so having
someone there discuss with and get an opinion while shopping for clothing can really add
value to the whole experience.

The other extra service WOMANLY will exclusively provide will be an option to virtually try on
the products through an exclusive mobile application. The target group of customers are busy
working women so saving time by being efficient while shopping will go hand in hand. Some
people dislike trying on clothes because it is a physically exhausting process. The application
will be developed by the owner and will be offered through a QR code that will be displayed
in the windows so customers could scan it before entering the store. A big banner will also be
displayed in the store where it will be visible and easy to scan. Most customers will appreci-
ate this feature because it will save a lot of time and effort. Getting an idea of how an item will
look on someone’s body type, height, and skin tone as well as how different items would look
together with minimum effort through an application is something not many retails stores of-
fer, especially here in Kokkola.

Another extra service WOMANLY will provide is the wide range of sizes. Most stores carry
sizes between the small and extra-large range. While this is a good range this store will strive
to be inclusive for everyone so WOMANLY will sell only from retailers that go up to size 5XL.
 31

I believe it is frustrating to walk in a store and see something you like but can’t purchase be-
cause your size is not available, it is not only bad for a customer’s self-esteem
but also bad for the business itself because the customer will get frustrated and will forever
associate the store with negative feelings.

WOMANLY will carry a very wide variety of inclusive clothing brands for women which are
not yet available in Kokkola. The brands, that have similar values and practices that align
with the owner are listed in TABLE 2. The table shows some of the brands that have similar
values as WOMANLY.
TABLE 2. Sustainable Brands for WOMANLY (The good trade 2022; The green edition 2022)

Brand Values
Lucy & Yak Sustainable fabrics, inclusive sizes, fashionable clothes
Hessnatur Sustainable organic fabrics, inclusive sizes made in Germany
Gudrun Sjödén Sustainable materials, inclusive sizes, eco labels, trendy clothes
Birdsong Made in the UK, made to order, sustainable practices
Girlfriend Collective Sustainable & recycled materials, upcycling program
Karen Kane Ethical production, transparent supply chain, sustainable materials,
Hours Ethically made, upcycled materials, eco-friendly practices,
Levi’s Ethically made, sustainable practices & materials

5.4 Customers

Customers are the most important factor for a business. The business will depend on busi-
ness to customers sales therefore, the focus will be on building long lasting relationships with
customers. The target customers will be stylish working women between the ages of 22 and
45 who have average incomes, live here in Kokkola, and prefer to dress stylish. The target
group was chosen based on the author’s own research. In Kokkola there are a few inclusive
sustainable clothing stores for women. Other parts of Finland seem to have a lot more cloth-
ing stores for stylish working women. This is clearly a problem woman here in Kokkola have
been facing, and WOMANLY will do its best to solve this problem for them. Another problem
WOMALY will solve is the size inclusivity, the business will carry a wide variety of sizes rang-
ing from XS to 5XL.
 32

The target customers for WOMANLY were chosen based on demographics. Considering the
business will be a brick-and-mortar clothing store, there is not as much data that could be an-
alyzed to gain insight on the different factors that could help with customer segmentation.
Some information could be gathered by analyzing the competitors and their data found online
or from visiting different stores and studying factors like customer behavior and customer pur-
chase habits.

The target customers are women only. Focusing on women only is part of the strategy. While
focusing on such a specific group reduces the target customers and potential customers by
almost half, it raises the potential for a more personalized, well thought out experience for the
remaining customers. Reducing the potential customers by half might seem like a bad idea
but people will enjoy a personalized experience more than having everything for everyone in
one place. Even in the future, the owner plans on keeping WOMANLY as a store only for
women.

The Ideal customer for WOMANLY will be a woman aged 22 and up who has a job and is
focused on her career. Fashion is important to her, but it is not the most important thing in her
life. She makes around 45.000 euros a year and lives a sustainable life. She goes shopping 2
times a week, works downtown in Kokkola and eats her lunch at the mall. She has a small
friend group because she is so busy with her career. In her free time, she likes to shop and
dedicates at least one day a month to shopping for clothes. She spends around 500 euros a
month on sustainable clothing pieces. Caring for the planet is an important part of her life,
she would rather spend more money on sustainable quality products.
 33

5.5 SWOT analysis

The swot analysis for womanly was made based on the current state of the world now. In
TABLE 3 a SWOT analysis was written for WOMANLY. Currently the business has a lot of
strengths and opportunities with the biggest one being the advantage of having social media
from the start. As shown in TABLE 3 the business has a few weakness and threaths but thay
ara balanced out by the amount of strenghts and oportunities.

TABLE 3. SWOT analysis

Strengths Weaknesses

Good location New to entrepreneurship

Extra services Depending on other brands
Customer services Higher prices
Inclusivity

Opportunities Threats

Online store Natural disasters

Own clothing line Online stores
Social media War

WOMANLY’s strength is the good location which is going for bringing in a lot of potential
customers. The extra services like dressing guidance, virtual try on and loyalty program for
our loyal customers are also WOMANLY’S strengths. The focus is to provide the best
personalized customer experience for all customers which is our main strength.

WOMANLY’S weakness is being new to entrepreneurship is not easy and mistakes are going
to happen, however, the owner will do her best to try to avoid some of them. Working with so
many brands and relying on them to stay in business is a huge weakness WOMANLY must
face. Because this is a new starting business and there are so many extra services the prices
will have to be higher than our competitors. I do believe the extra services WOMANLY will
provide, will compensate for the higher prices.
 34

From the start WOMANLY will have a lot of opportunities, the main opportunity is having an
online store. Starting an online store can and will widen the potential for customers because
the online store could be accessed by anyone from Finland. Another opportunity is having
one’s own collection of clothing, this will be in the future because it will be a long expensive
process. The biggest opportunity there is, is the social media advantage WOMANLY will
have from day one. It is easy to go viral and go from a small business to a well-known
international business over night with the help of social media.

The biggest threat for WOMANLY is the state of the world. The pandemic has changed and
altered customers behavior due to all the restrictions. It has also dramatically affected the
economy of the world. The prices of fuel and electricity has increased tremendously which
will affect all the operations. Another imminent threat is online stores, because WOMANLY
will not start with an online store the owner will have to really focus on building a loyal
customer base here in Kokkola. After the first year in business, the owner will personally
create and manage an online store which again will only focus on women who live in Finland

5.6 Marketing plan

Currently, Kokkola has a lot of clothing stores, even grocery stores sell clothes. Most of them
are even placed strategically in popular locations like downtown and in the mall. The owner
also chose a very popular location that will be on brand and market itself. The downside to
choosing this location will be all the competitors that already have established themselves
and are well known. However, with all the additional services and personalized experience
we WOMANLY will offer customers, the business will stand out from its competitors. In to-
day’s day and age marketing could not be easier. With the rise of social media any business
could go from a small business to an international business, overnight.

In the beginning, the business will advertise itself due to its location. Because this Is a new
business most of the marketing will happen using new ways of promoting such as social me-
dia marketing. Using social media will be free in the beginning. The owner will start with a Fa-
cebook, Instagram and a TikTok page where she will post content regularly. The content will
vary from actual advertisements that talk about the business to fun creative content most
people would find entertaining. Once the business will begin to gain some traction, the owner
 35

will use the social media paid advertisement programs to target the target customers in a
more organized way. Because the target group also fits the customer group that would enjoy
traditional ways of marketing, after opening the store the owner will pay for an advertisement
in the Kokkola newspaper. In the beginning social media will be our best advertisement op-
tion because the algorithms work in such a way that people who are interested in fashion will
most likely see the content without WOMANLY having to pay for advertisements.

Digital advertising can be totally free but the amount of time and effort that needs to be put
into it makes up low cost. The content creation the owner will do is going to be in the free
time between customers, but the owner will also work overtime to make good quality interest-
ing content that will promote the business for free. The budget for marketing will be 400 euros
for the first year because most of the marketing will be free using social media, the Kokkola
newspaper will be the most expensive marketing campaign around 200 euros. The paid tar-
geted advertisements on social media will vary between 0.5-10 cents per click, but it will al-
low me to reach my target customers based on location, age, and lifestyle. Snapchat is an-
other social media that allows users to share their pictures and videos with everyone in the
world but also on a smaller scale with everyone who lives around the same area, so the
owner will use and optimize this platform as well.

5.7 Risks

Starting a new business and being new to entrepreneurship involves many risks associated
with all aspects and processes. There will be a lot of risks, but in this part, the focus will be on
the imminent ones for WOMANLY.

The competition in the clothing industry in Kokkola is tough. There are a lot of stores that sell
women’s clothing, however, there are only two stores that exclusively sell women’s clothing.
The price competition is high because in Kokkola there are stores that sell extremely cheap
fast fashion. The location chosen is risky because the mall is full of clothing stores and bou-
tiques. However, with WOMANLY’s extra services, the variety of sizes and personalized
overall experience it could avoid this risk. The price risk is a risk that cannot be avoided be-
cause the prices reflect our values and morals which are sustainability and inclusivity.
 36

Being the only employee and doing everything by myself creates a lot of potential risks for
the business. The lack of entrepreneurial experience can also be seen as a risk. There is a
lot of work to be done in a business, I will have to do everything from placing orders to
bookkeeping as well as being a cashier and giving advice with dressing. In the long run this
could lead to burnout. There is also a risk of the owner getting sick which will directly affect
the whole business because there is not anyone else ready to take over all the operations in
case something happens to the owner. The risk for an accident happening to me and the
business being closed can easily be prevented by having a backup employee who could take
over everything for a short period of time.

Property risk is increased in this type of business and should be taken into consideration. The
property can be destroyed, damaged or stolen. For example, in case of a fire, smoke damage
or water damage, the whole store and inventory could be damaged beyond repair. These
risks could be hard to avoid because human error is always a possibility that no one has con-
trol over. However, the risks can be transferred by purchasing insurance. Insurance is an ex-
tra expense, but it would significantly reduce the monetary loss in case one of any of the po-
tential asset risks arises.

5.8 Competitors

There are a lot of clothing stores in Kokkola. Being aware of the competition is extremely im-
portant because WOMANLY will be entering an established market and the competitive ad-
vantages are what will guarantee the success of the business. There are a lot of companies
selling clothes and accessories in this area but only a few of them focus on just women.
WOMANLY’s competitive advantages are for example the multitude of extra services, high-
quality products for every size, prime location of the store and so many more. Because cur-
rently, there are only two stores in Kokkola that sell clothing just for women, it is hard to de-
termine the direct competitors. The two competitors that sell exclusively clothing for women
are not direct competitors because they sell fast fashion so the owner will not be focusing on
them in this part of the business plan. The main competitors WOMANLY will be facing are
KappAhl, Moda and Aukia.
 37

KappAhl is a big clothing chain that offers high quality mid-range priced clothing for the whole
family, not just for women. According to the author’s personal research it is popular with
women over 30 and even preferred by elderly women over 50. Their store here in Kokkola is
a big, organized store in the Cydenia mall that has a wide range of their own brand as well as
a few other partner brands that offer similar clothes. They have sections for men and children
which are not as popular. They also have an online store and several locations all over Fin-
land, Sweden, and Norway. The online store not as popular as other online stores. They
have a special selection of plus size clothing. They emphasize on customer service and offer
a loyalty program.

Moda is one of the biggest clothing specialist retail chain here in Finland (Moda, 2022). They
have a wide variety of brands that range from high end to more affordable options. They offer
clothing and accessories for the entire family, but they specialize on women. Moda has
stores all over Finland as well as here in Kokkola in the Cydenia mall which will make it a di-
rect competitor to WOMANLY. Moda does have a website, but they do not have an actual
online store.Aukia is a Finnish retailer store that carries popular, high-end brands for the en-
tire family with the focus on women and designer clothing, they have a store here in Kokkola
in the Cydenia mall that is quite popular with the same target group WOMANLY has. They
carry more high-end brands like Tommy Hilfiger and Vero Moda but also lower-end brands
like Jack and Jones. However, Aukia’s prices are due to the designer brands not due to sus-
tainability and inclusivity. Aukia does have a nice online store that is full of discounts.

5.9 Financial plan

The owner will invest €50,000 in equity, apply for a bank loan of €50,000 and apply for start-
up money for the first 12 months which is around 540 euros a month and in total €6,480 a
year. The overall profit margin in the clothing trade sector, depending on the products, is 7-
10%. Based on the owner’s estimation the owner will sell about €217,000 worth of clothes
and accessories in the first year. The average price of a top will be 45€, the price of the jeans
will be over 100€. The average spending amount per customer will be around 70€. If
WOMANLY will stay open 310 days a year, sales will be about 650€ per day that will be
approximately 13 customers per day which will only be 23 products per day and will result in
690 products per month.
 38

The variable costs will be the purchase of stock which will be €100,000. Fixed costs include
the owner’s salary approx. 24,000€ per year, YEL is approx. 7800€ per year, business
insurance approx. 300€ per year, rent is estimated at 12,000 euros per year. Electricity,
water, and heat are estimated at €1,800 per year. Phone and internet will approximately be
360€ per year.The marketing budget will be rather low in the beginning because social media
platforms are free to use. There will be no expense for accounting because the owner will
take care of it herself. The repayment of the loan will be €6,000 per year and interest
payments will be 1,200€.
 39

6 CONCLUSION

the research and overall execution of this work. The first part covered everything required
when going into starting a business, not just about writing a business plan. In the beginning it
can be assumed that writing a business plan was an unnecessary process if the entrepreneur
started with a really good idea. This thesis makes it clear how important a business plan is.
The business plan is a tool that helps the entrepreneur analyze different factors that play big
roles in the future of the business. It is not only a tool it is also a guide to determine if the
business will be profitable or not. Creating a business plan is time consuming but the pros far
outweigh the cons. Creating a business plan really makes the entrepreneur sit down and re-
think all the operations and future operations before jumping headfirst into starting a new
business a business plan is a necessary step before starting any business from scratch.

During the first part of this thesis the importance of a business plan was in focus and how
much thinking goes into making one. In the long run, having a business plan is necessary for
all businesses no matter how big or small they are or if they are starting or have been in the
business environment for a long time. A business plan doesn’t just analyze different factors it
also creates structure. Having a well thought out plan with clear objectives cand will motivate
all the people involved in a business. The business plan can also be used to attract investors.
Therefore, it is important to be honest and realistic when writing one because it is not in good
faith to waste someone else’s invested money.

Writing this thesis has really put into perspective how hard and risky it is to be an entrepre-
neur. There are a lot of different factors an entrepreneur must take into consideration, there is
also a lot of work that goes into being an entrepreneur. Writing a business plan will put into
perspective how much work goes into starting and running a business. During the research
phase the author did a lot of reading of different books and articles that have different opin-
ions about everything. In this thesis the most up to date information was gathered and pre-
sent it in a logical, easy to understand way. Hopefully this thesis could possibly help other
people who are interested in writing a business plan.

After determining what a business plan is and the contents and factors that go into writing
one the business plan was written for a women’s clothing store. The author has the desire to
 40

start her own business for a long time but has never considered all the factors that would go
into starting the business. Based on this research a concise business plan was written for the
store. The plan went into detail about all the aspects and risks that a new business like this
would face.

Writing this business plan has been a long process that has put into perspective how much
work and planning for the future goes into writing one. Based on the calculations and plan the
business idea was created and showed that it could result in a profitable business. However,
due to the state of the world right now it is not wise to be opening a clothing store any time
soon. The inflation, and uncertainty are too high currently, therefore, in the next 2-3 years
would be a better time to follow this plan and open a clothing store for women here in Kok-
kola. In the future this thesis will be used as a reference.
 41

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 ATACHMENT 1

First year budget calculation

PROFIT PLAN/BUDGET CALCULATION

Enter the numbers in the green fields. Blue points table
automatically calculates.

REVENUE (alv 0 %) fiscal year/period 01.02.2023 01.01.2024

Sales title sales quantity pcs price/average purchase

1 shirt 1800 35 63000
2 jeans 950 75 71250
3 pants 1000 50 50000
4 boots 800 60 48000
SALES 232250
EXPENDITURE (VAT 0 %)
substance use, materials, purchases 99000
subcontract purchases 10000
tool and supplies purchases 1800
other purchases 500
Variable costs total 111300
MARGIN OF SALES 120950
Sales margin % 52
Fixed costs VAT %
employment
YEL income 24000 YEL payment% 35 8400
other insurances 300
wages of employees 24000
+salary side expenses 20 % 4800
salary for owners (stock company) 0
+salary side expenses % 0
rent 12000
electricity and water 1300
phone, internet connections 500
accounting
office, post office, software, information systems 0
car and travel costs, per diems 0
online marketing 100
newspaper/other advertising, roadside and traffic advertising 50
fairs and events 0
promotional activities, commemorations, sponsorship 400
cleaning, waste costs, property maintenance, security and monitoring costs 400
membership fees, education, courses, magazines, professional literature 30
repairs, maintenance, services 400
other expenses 3000
Total fixed costs 55680
65270
Depreciation 3500
Financing costs and interest on loans 6000
PROFIT BEFORE TAXES 55770 cash surplus/deficit
taxes 24 % 13384.8 net profit 36825
loan repayments 5560 -private receptients 400
NETTOVOITTO 36825.2 +depreciation 3500
private withdrawals (tmi, ay, ky) or dividends 400 remains in the cash register 39925

(Uusyrityskeskus 2022)
 ATACHMENT 2

Investment caculation

INVESTMENT FINANCIAL CALCULATION

This form will help you find out what it costs to start your business (NEED FOR MONEY) and plan how
you intend to finance the operation (SOURCES OF MONEY). Think carefully: What are the important and sensible
acquisitions for your business?
This form will help you find out what it costs to start your business (NEED FOR MONEY) and plan how
how much money, machines, tools do you or the partners have to invest in the company? How much you need a
loan, where are you going to get it
and what does it cost? Remember that NEED FOR MONEY = SOURCES OF MONEY to start a business.

NEED OF MONEY
Investments Intangibles Declaration of Incorporation 60.00
merchandise Expert/consultant fees
Others (e.g. goodwill)
Machines and Means of production
stock Computer and cash systems 500.00
Car
Furniture 1800.00
Phone/fax 35.00
Business office Office supplies 50.00
Decoration and decoration accessories 500.00
Other expenses Repair and installation costs
Purchase of premises/property
Other expenses 4000.00
Working capital 1-3 months Marketing Marketing material (brochures, business
cards, etc.) 40.00
NEED OF MONEY Initial advertising 300.00
Rent Premises rents (also consider guaranteed
rents) 5000.00
Equipment rentals/leasing payments
Wages Salaries of employees
The entrepreneur's own livelihood 6000.00
Other fixed costs Marketing material (brochures, business
cards, etc.)
Exchange and financial assets Initial stock 10000.00
Cash 500.00
Total need for money 28785.00

SOURCES OF MONEY
Own capital Capital stock
My investments 7225.00
Own machines and equipment
Other
Loan capital Shareholder loan
Bank loan 20000.00
Finnvera
Other
Loans from suppliers
Other income financing 1560.00
Total sources of money 28785.00

(Uusyrityskeskus 2022)