A.

TOWN BROTHERHOOD BUSINESS

PLAN

I. Table of Contents

1
I. Table of Contents...................................................................................................2

II. Executive Summary...............................................................................................3

III. General Company Description..............................................................................4

IV. Market analysis....................................................................................................5

V. Operation plan......................................................................................................6

VI. Management and Organization............................................................................8

VII. Financial plan.......................................................................................................9

VIII. Sale and marketing strategies...........................................................................12

XI. Publicity and advertisement strategies...............................................................13

X. Pricing strategy.....................................................................................................14

XI. Sustainability and expansion ...............................................................................15

EXECUTIVE SUMMARY
If you have ever heard the aphorism that says ‘looking good is good business’, Then you may
as well agree that nothing is too big an amount of cash to lavish of clothes. Whether you
agree or not, the truth remains that those who run clothing line businesses would always

2
smile to the banks. This is because of the level of profitability which the business promises
all over the globe. Furthermore, this is also largely dependent on the fact that people would
always need to cover their nakedness.
A. TOWN BROTHERHOOD™ was official formed in April 9, 2016 the company was
formed by three members in general NIXON N.LAIZER, ARIP L.LAIZER, and PAUL
J.PAUL the aim of this partnership was to establish a legal operating enterprise that will do
business, provide service and serve the society. And the business involve through each
individual skills, talents and educational profession. At the moment the company had
launched a project that it’s aim was to create awareness and collect information about how to
produce, to whom to produce for and what do the fashion industry demand and all the way on
trending” so as to understand and come up with strategies that will help us penetrate the
market and competition from the competitors. The project aim was to help us as a small
company to understand the market environment and help us to gain experience and create our
own production base which is suitable and effective for the purpose of quality production.
Due to our marketing experience A. Town Brotherhood have come up with its own
strategies on how to market its logos and to who we are going to produce. We have tended to
produce logos for different type of customer from children's, youth and adults due to each
group fashion demand. The company has devoted itself to deal recently with youth this is due
to the youth taste of fashion and logos designs. This due to data collected from our previous
project and research conducted it shows that 80% of most brand sale were purchase by youth
in the year 2015.
Our company also devotes itself in community services. As A.TOWN
BROTHERHOOD through our different brand we are aiming to start youth movements with
will give youth the chance to explore and recognize their talents and opportunity in the
society. This project will help youth get the chance to learn new skill, increase their
awareness on effects of drugs (WAR ON DRUGS IN THE STREETS) and how to market
and sell their talents.
And through ABH charity club we intend to lunch logos that will help the company to
raise funds for the club with the intend to collect money to help the society with the street
children problems
The company future plan is to involve in the market and grow so as it can be able to do
business across East Africa and Africa in particular. This is all possible due to the
globalization which made the world like a village hence to cultural, industrial, economical
and individual interaction.

Why Start a Clothing Line?

Starting a clothing line business is one of the best things that can happen to any one- this is
because of the avalanche of consumers who would always jump at the fashion trend. There
are even some people who phase out their wardrobes, once a new trend hits the streets. This
is why those who are in the trade have continued to look at ways to get better at this art, so as
to continue to attract loads of people. One other thing is certain about this type of business, it

3
needs lots of capital. Without ample capital, one may not be able to start this type of business.
This is because of the expertise needed, the equipment needed, as well as the very skilled
people who will need to be hired and paid well to churn out the best clothes. That is not all;
there will also be the need to stay abreast with the trends so as to attract the high-end
consumers. This is also because of the level of competition which the industry records, and
the need to outshine other competitors.

Clothing Line Business Overview

The fashion industry all over the globe is known as a thriving trade. The clothing line
business which happens to be a subset of the industry is also booming as the years go by.
There are various clothing labels that abound; some are national brands, whilst the others are
international brands. The fashion industry- especially logos making business was not as easy
as it is now (Years ago). This was because clothes were handmade based on demand by
individuals.
In the 20th century after the invention of sewing machines (industrial sewing machines), it
became pretty much easier to produce clothes in tons. Therefore, technology indeed is
responsible for opening up the clothing industry to a large extent. Clothes can now go
through factory system of production and still maintain good quality and standard sizes. With
that, it is easier for retailers to order and sell clothes at fixed prices in departmental stores
The bottom line is that successful clothing brands have a thorough grasp of the market and
they know how to meet the needs of the consumers, as well as cajole them to accept what
they have to offer because they are always flexible and creative.
As a matter of fact, clothing line based business is one business that has the capacity to
survive regardless of what is happening in the economy of the world. Economic downturn or
even a galloping inflation does not in any way affect the sale of clothes; people can’t do
without wearing clothes.

MARKET ANALYSIS

(i)Market Trends
Presently, the fashion industry relies more on mass market sales for them to make the kind of
income that will sustain the business. The mass market takes care of a wide range of
customers that cuts across both the rich and the poor. Most of the new clothing brands that
are trying to catch – up with the market ensures that they produce ready-to-wear clothes using
trends set by leading fashion label.

4
What they do is that, they see the direction of the trend as established by renowned fashion
brand before producing their own versions of the original look – by making use of cheaper
fabrics and simpler production processes which can easily be done by machine. They can
comfortably sell such product at a cheaper price to the masses who can’t afford to buy the
original which is often way too expensive for the common man.

(ii) Our Target Market

No doubt the clothing line industry has the widest range of customers; everybody on planet
earth wears clothes howbeit different designs, quality and style.

In view of that, we have created strategies that will enable us reach out to people that cut
across different classes in the society; we will produce clothes for male, female, young adults
and children. We have conducted our market research and survey and we will ensure that our
clothing label is well accepted in the market place. These are the different group of people
that we will be producing clothes for;
• Male
• Female
• Young Adult(youth)
• Children
• Corporate Executives
• Sports Men and Women (sport clubs)
• Students.

(iii)Our Competitive Advantage

Our competitive advantage as a clothing line company is the fact that we are going to produce
clothes for a wide range of people. As such; we will produce clothes for both the rich and the
poor.

Another competitive advantage for A.TOWN BROTHERHOOD™ Clothing Line is the

quality and wealth of experience of its management team. The management team comprises
of professionals who have worked with some of the brands in the fashion industry.

Our latest design, skills, raw materials and equipment also counts towards our advantage
especially when it comes to competing with clothing line within the same category that we
operate. The quality of every clothes that comes out of our production line must be certified
ok before they are released to the market.

OPERATIONAL PLAN

5
This is a guide line on how the company is going to operate in its daily activities in
production and service provision in its marketing environmental. A. TOWN
BROTHERHOOD™ has come up with various operational strategies that will help it be
effective in its own kind of way and be able to penetrate through the marketing environment
and competition. The following are the operational plan that will be used by A. TOWN
BROTHERHOOD™

(1) PRODUCTION
This is where a visualized idea is processed and turned into a tangible commodity. here is
where the product quality and value is actually created by saying so if the company wants to
have a well-produced product which will maintain both quality and value the company must
invest in production from Production techniques and costs, Quality control, Customer service,
Inventory control, Product development

(i) Product development

our product have four live stages before it reach our customers and this stage are later used as
the factor to determining the product price and this stages are the fundamental of product
development. it all starts with a logo visual design with is later printed as a screen ,after a
screen is design we go to the second stage logo screen development here is where the mother
product is produced because it is the core of production. After logo screen is produced we go
to the third stage printing the logo on a plan t-shirt and here is where our actual product is
produced. After the actual product the fourth stage is advertisement and transportation to us
the product is ours commodity until it reaches the consumer.

(ii) Production techniques and costs

We’re going to buy all the raw materials enquired for production from plan t-shirts and
different varieties of colors' from the market which will help us minimize the cost of
production. Were by we are going to design our logos and the print them to an expert
workshop and provide him with all materials required for production and pay him/her only
for the printing service and packaging

(iii) Quality control

The company wants to ensure it maintain the same high quality products and production. Due
to this it will give the brand a place of its own in the market environment and make it a
unique brand overtime. this will be done by maintain the same quality of production of
product from types of materials used in production to equipment’s any low level production
won't be tolerated and this will be done by inspecting ever logo design and ever t-shirt
produced before released to the market

(iv)Inventory control
This is the process of maintain all the raw material and equipments required for production.
The company must be able to control it resources so as to ensure a non-stop production at any
time production, even in the matter of emergence product orders. So as to do so the company

6
must ensure a liquidity supply of all raw materials this will be done by keeping stocks of
materials and cross checking of resources remind in store

(v)Customer service
For any company to be successful it must know how to reach and serve its customers. We
have prepared to serve and reach our customers any were there and satisfy their needs
Our company will proved transport and a wild variety of color choice for our logos as the part
of customer service

(2) Location
As there a small company with no geographical area to operate on we will relay on the
workshop of our actual product producer for a given period of time due to the company
development and growth company plan

(3) Legal Environment

As a small company to have a good legal environment can be suitable for the company
development. This is because most small company images with a brilliant idea but due to lack
of good legal environment big companies copyright them and the idea. A.TOWN
BROTHERHOOD™ understand the importance of a good legal environment for its
development that ,the company should be register (BRELA), and should have a trading
licenses, Permits, Special regulations covering industry or professions

Management and Organization

The management plan establishes the credibility of the people involved in the
business such as entrepreneurs themselves, fashion designers, design teams, sales and
marketing personnel, people in accounts department, suppliers and contractors ,as a small
company we have come up with a plan to minimize the structure of management of the
company by sharing responsibility and duties due to each partner profession and skills.
This division of responsibility is based on each individual skills and education profession

7
Financial Plan
For any business to be successful it needs a well prepared and organized financial layout so
as to keep up with the firm objective and plans. Financial plan this is the segment were all the
financial activities are planned and layout so as the firm to reach its objectives. The following
is the financial plan for A. TOWN BROTHERHOOD
Start-up cost
This are the cost needed to start a business. Starting a business may require more than
estimated amount of capital this is because there are some expenses that must be paid for
before the company or a business start operate
A. town brotherhood clothing line requires the following startup expenses
Start-up expenses description
1. legal/organization costs 90000/= tshs
2. initial marketing and promotion 100000/= tshs
3. licenses and permits 25000/= tshs
4. beginning inventories 30000/= tshs

Total fixed asset and startup expenses = 245000/= tshs

Unit selling price and cost analysis

this is a segment in financial planning that is used to analysis the price of a product due to its
cost of production until it reach the final consumer or customer

T-shirts
A. selling price 20000/= tshs
Less
Direct costs;
Materials cost 10000/= tshs
Labor 3500/= tshs
Transport 500/= tshs
Package 500/= tshs

B. total cost per unit 14500/= tshs

C. unit gross profit 5500/= tshs
D. Gross profit % 2.75

8
Long-sleeved t-shirt
A. selling price 25000/= tshs
Less
Direct costs;
Materials cost 14000/= tshs
Labor 3500/= tshs
Transport 500/= tshs
Package 500/= tshs

B. total cost per unit 18500/= tshs

C. unit gross profit 6500/= tshs
D. Gross profit % 3.84

Vests
A. selling price 15000/= tshs
Less
Direct costs;
Materials cost 6500/= tshs
Labor 3500/= tshs
Transport 500/= tshs
Package 500/= tshs

B. total cost per unit 11000/= tshs

C. unit gross profit 4000/= tshs
D. Gross profit 3.75

A) Optional method to calculate needed capital

Many businesses can get a reasonable picture of their financial future by knowing how much
money should be invested as capital so as to reach its objectives. A.town brotherhood have
decided to use this optional method to calculate the startup capital for the company to start its
operation

Total required capital = month fixed expenses + asset purchased + start-up expenses

• monthly fixed expenses

Legal and accounting expenses 10000/= tshs
Communication and utilities 55000/= tshs

Monthly fixed expenses total 65000/= tshs

• asset purchases
Fixtures and equipment 15000/= tshs
Screens 30000/= tshs

9
Logo layouts 25000/= tshs
Advertisement posters soft copy 15000/= tshs

Asset purchased total 85000/= tshs

Total required capital = 65000 + 85000 + 245000 = 395000/= tshs

B). break even analysis

Break even analysis is a simple but very effective financial feasibility test. Breakeven is used
to find the amount of sales necessary to pay all fixed costs (and have zero income). A. town
brotherhood intend to use break even analysis to determine the volume of sale required to pay
its monthly expenses through the following formulation
Monthly fixed expenses
Unit sale price: 20000/= tshs legal and accounting 10000/= tshs
Less communication and utilities 55000/= tshs
Production cost 14500/= tshs
Less total fixed expenses = 65000/= tshs
Other variable expenses
Commission 1000/= tshs

Unit contribution margin = 4500/= tshs

CM% (UCM divided with USP) = 4.4%

B/E = fixed expenses divid CM% divid by 6 = 65000/4.4%=1477/6= 246.21
monthly B/E sales = 246.21/= tshs

C) Sources and uses of funds and capital

This is a statement of how much money we need and how that money will be used. A. town
brotherhood is a private business that is owned and financed by Nixon N. Lazier, Arip L.
Lazier and Paul J. Paul. We do not intend to welcome any external business partners for the
particular time which is why we have decided to restrict the sourcing of the capital to 3 major
sources. These are the areas we intend generating our capital

Sources
Nixon N. Laizer /= tshs
Arip L. Laizer /= tshs
Paul J. Paul /= tshs
Debit /= tshs
Total /= tshs

10
Uses
Start-up expenses 245000/= tshs
Monthly fixed expenses 65000/= tshs
Asset purchasing 85000/= tshs
Working capital 350000/= tshs
Cash reserved 125000/= tshs
Material purchased 250000/= tshs

SALES AND MARKETING STRATEGY

Since we are a new clothing line who wants to take on the international market, we have
deiced to model some of the leading international clothing manufacturing brand. We will
ensure that we interact with our target market (customers) and sample their opinions to know
what they want before mass – producing clothes. It is easier to penetrate the market when
what you produce is exactly what the people have always wanted.

The fashion industry is indeed a very competitive industry; thus, all clothing company must
ensure that they are always on their toes and in touch with the trend, if indeed they want to
continue to be in business. We are aware of this, which is why we employed our previous
experience on the cloth line marketing and sales to help us craft a winning marketing and
sales strategy.

In summary, A.TOWN BROTHERHOOD™ Clothing Line will adopt the following sales
and marketing approach to promote and sale our clothes and logos
• Canvass that celebrities to wear and help us promote our clothing label
• List our business on yellow pages ads
• Leverage on the internet to promote our business
• Direct marketing
• Word of mouth marketing (referrals)

PUBLICITY AND ADVERTISING STRATEGY

Publicity and advertising in the fashion public industry involves being in touch with the
organizations target market and being very creative and proactive. No doubt the media plays
a very big role when it comes to helping a clothing label gain international significance.
The social media also plays an important role in modern day fashion publicity and
advertisement; it gives fashion brands the ability to reach out to a wider range of customers
all over the world within a short period of time and of course at a very cheaper price.
Any clothing line that wants to take on the market must be deliberate when it
comes to building brand awareness and credibility. Most often than not, big – time clothing
labels ensure that they create great hype whenever they are about to release any unique
design from their stable.

11
 Social media, such as blogs, micro blogs, podcasts, photo and video sharing sites
are some of the tools fashion designers leverage on to promote their labels. Some of the
preferred social media platforms that are used in the fashion industry are Instagram, Tumblr,
WordPress, Facebook, twitter, YouTube and other sharing sites. Here are the platforms we
intend leveraging on to promote and advertise
• Place adverts on both print (newspapers and fashion magazines)
• Sponsor relevant community programs like school fashion shows et al
• Leverage on the internet and social media platforms like; Instagram, Tumblr,
WordPress, Facebook, twitter, YouTube and other sharing sites.et al to promote our
brand
• Promote our clothing label on our own official websites and online fashion
community
• Build relationship with celebrities especially in the entertainment industry and sports
to endorse of clothing label.

OUR PRICING STRATEGY

A.TOWN BROTHERHOOD™ Clothing Line will ensure that we design and manufactured
products that will meet the financial capacity of different classes of people in different parts
of the world. The prices for all our clothes will be affordable and at the same time
competitive with what is obtainable in the fashion cum clothing line

. PAYMENT OPTIONS
Our payment policy is all inclusive because we are quite aware that different people prefer
different payment options as it suits them. Here are the payment options that will be available
in every of our outlets where our clothes will be sold;
• 1.Payment by cash
• 2.Payment via online bank transfer (online payment portal)
• 3.Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our
payment plans without any itches.

12
SUSTAINABILITY AND EXPANSION STRATEGY

The future of a business lies in the numbers of loyal customers that they have the capacity
and competence of the staff, their investment strategy and the business structure. If any of
these factors is missing from a business (company), then it won’t be too long before the
business close shop.
A.town brotherhood Clothing Line will ensure that all the factors listed above are reinforced
on a regular basis and also we will engage in continuous capacity building of our workforce.
As a matter of fact, profit-sharing arrangement will be made available to all our staff and it
will be based on their performance for a period of one year or more. This will enable us
secure their loyalty and services for a long period of time.

We will make sure that the right foundation, structures and processes are put in place to
ensure that the staff welfare is well taken of. Our company’s corporate culture is designed to
drive our business to greater heights and training and re – training of our workforce is at the
top burner.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: in-progress
• Opening of Corporate Bank Accounts: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: in-progress
• Application and Obtaining Tax Payer’s ID: In -Progress

13
• Conducting Feasibility Studies: Completed
• Generating capital from business partners / investors: Completed
• Writing of Business Plan: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In
Progress
• Recruitment of skill workforce: In Progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress

14