Business plan lingerie shop with the calculations

In this article we will make a detailed business plan of underwear store with calculations of expenses and income.

Service description
This business plan presents the idea of opening your own underwear store. This product is the basis of the product range. In addition, in the store you can find hosiery. Who is the target audience? What segment of the market is the store? What price category of goods can be found? All these questions will be answered in the presented business plan.

Market analysis
Today, the USA market is developing quite a difficult situation due to the protracted crisis. And this applies to all sectors. The only exception is the food sector. We consider underwear as the main product not by chance. Clothing is one of those industries that holds quite firmly.

A true woman is not used to save on yourself. Beautiful lingerie is considered an indispensable attribute of any fashionista. That is why this product was chosen as the main unit of sales.

I must say that 2015 was quite a difficult year for the USA market. Many stores in the segment closed due to unprofitability. But why, then, do we recommend opening an underwear store? There are several reasons for this. First, competition in this segment has sharply decreased, especially in small towns. This will allow a newcomer to the industry to immediately cover a fairly large piece of the market. As for prices, according to many analysts, it is not necessary to reduce the cost of the goods. If people can't afford to buy a thing for $ 1,000, it's unlikely they can do it for $ 900. That is why its pricing policy should be built on the basis of the planned profit.

The main rivals in this industry are well-known brand stores. The advantage over them can be a more affordable price and work in different outlets. Franchise stores are also a serious danger. They work at competitive prices and on favorable terms. Another group of buyers is also dangerous-online stores. And here you can include expensive branded online boutiques and shops selling things of domestic production at very low prices. Fight with them quite hard, but can be. The first thing is to differentiate the range of buyers. Online shopping is gaining popularity, but enjoy this type of sales today is not all.

Our store will operate in the middle price segment. The main product will be designed for women. For men the range will be much less. About 98% will occupy linen, everything else-a variety of hosiery. This spread will be the most profitable and suitable.

It should be noted that the rent has increased quite seriously. This is another reason to choose underwear. Under the store will be enough space of 10-30 m2. The cost of renting such premises will be optimal. For novice businessmen, this type of store is also suitable because the size of the initial investment was small. For the purchase of goods need about 150-200 thousand dollars. If you compare with the same clothes, the amount of investment is much lower.

I would like to dwell a little more on who will supply products to the store. In this case, you can work either with large suppliers, making them wholesale purchases, or with manufacturers of goods, buying it at an even more favorable price. Many will say that the second option is undoubtedly more profitable, but there is one very important caveat. The manufacturer can not provide a large range of products, but suppliers just for this and sharpen their work. The ideal option would be to combine work with both sellers.

So, our store will operate in the middle price segment in the leased area (choose a shopping center, as this option will help to significantly reduce the cost of advertising). We will focus on the quality of the product and its aesthetic component. This will help to attract women of different incomes.

It should be noted that the brand is not so important for people when choosing underwear, so the emphasis should be on the quality and appearance of the product. Only 3.5% are committed to certain brands, choosing clothes in the store.

Business plan lingerie shop with the calculations

Creating the concept of underwear store, it is impossible not to pay attention to internal and external factors that can significantly affect the operation of the enterprise. If we talk about the external component, it is divided into opportunities and threats. The first in the capable entrepreneurial hands can only strengthen the position, and the second, in the absence of proper attention on the contrary can only worsen the situation in the market.

So, the external factors in this case will include:

Market expansion. This opportunity came after a sharp decline in the number of sellers and stores in 2015. With the right policy of the state, the industry can start working at an accelerated pace in 2016.
High demand for goods. This is due to the need to buy underwear, regardless of how much money is available in the family. The second factor driving demand is the possible recovery of the economy.
Growth of niches in this market segment.
The opportunity to expand their activities, to retrain from underwear store to clothing store.
High level of competition. This is due to the work of well-known brands in the market, and with the revival of the segment, the emergence of completely new opportunities.
The introduction of various laws, taxes, which will be a serious obstacle to the development of their own business. This can include domestic and foreign policy. The first can affect competitors within the country, the second-on the import of goods.
Instability of the economic situation in the country. This factor seriously complicates work in any branch of trade. This is primarily due to price fluctuations, which negatively affects contractual relations with suppliers of products.
Inability to take a Bank loan on favorable terms. This is also due to the serious situation in the country.
As for internal factors, the entrepreneur can adjust them independently, use them to his advantage. They are more flexible than external ones. So, the internal factors include:

High quality of goods and service that provides high demand of buyers.
The opportunity to attract new partners to cooperation, thereby increasing the range and volume of available products. In the long term, it is possible not only horizontal, but also vertical expansion, due to the ability to work in related niches (clothing, shoes, etc.).
The availability of working capital allows them to accumulate and use with the greatest efficiency.
The opportunity to work with foreign manufacturers, which will offer its customers not only high-quality, but also trendy goods.
The ability to use technological developments of colleagues from Western countries, which will significantly increase the efficiency of work (it is, first of all, a convenient software that can facilitate the work with goods, their accounting, as well as store management).
Highly qualified staff, training which will be engaged in the entrepreneur himself, after studying the structure and learning the basics of marketing, sales techniques and other data to increase the efficiency of sellers.
High costs. They are directly related to demand. If it is not, the costs for the most part remain unchanged, which can lead to losses in the store.
Lack of experience can cause the store is not in full force. This can also cause inefficiency. Therefore, it is very important to study the scope of work in as much detail as possible before starting work.
Assessing opportunities
Monday 10:00 – 21: 00
Tuesday 10:00 – 21: 00
Wednesday 10:00 – 21: 00
Thursday 10:00 – 21: 00
Friday 10:00 – 21: 00
Saturday 10:00 – 22: 00
Sunday 10:00 – 21: 00
Total: 89 hours a week, 382 hours a month.
Our lingerie store will be open seven days a week. For service we need 2 sellers, they will work in shifts. Here you can select a schedule by agreeing it with them in advance. The most preferred will be 2 through 2.

Cleaning of the premises will be done by the staff of the shopping center, which will house the store. The administration of the shopping center will also be responsible for advertising inside the building.

The duties of the sellers will include customer service, accounting of goods, their placement in the store, counting the proceeds. For greater convenience, customers in the store will be able to pay for goods with plastic cards. In this case, the proceeds will be transferred to the Bank account of the organization. You can open it in some banks and for free, and the annual maintenance is not so much.

Advertising and work with suppliers will be engaged in our case, the entrepreneur. Hiring an administrator will be unprofitable, as the store will be small. With the expansion or opening of a new outlet, you can hire a person with experience in this field.

As for the documentation within the company, it will be compiled by a third-party company. Hiring an accountant would also be impractical. The entrepreneur will resort to outsourcing.

The store will be located in the shopping center of the city. Premises with a size of about 30 m2 will be enough. Inside there will be a counter for the seller, a fitting room, a small room for placing inventory. The seller will pay special attention to the effective distribution of goods in the store. Are the verses of the hanger, a stand for promotional goods, a few mannequins to showcase more effective bustiers, corsets, stockings, gowns and shirts. Be sure to be in the dressing room mirror.

To improve the quality of the store will be sold every thing packaged for free.

Organizational and legal aspects
Design of a PI or LLC. Since the store will be small, it makes sense to stay on the first option. Registering your own company, you need not to forget to make all the codes OKVED. In our case it will be:
52.42.2-Retail sale of underwear;
52.42.6 — Retail trade of socks and legwear.
If you plan to expand the range in the near future, you should think about making additional codes, so as not to engage in re-registration later.

The owner can choose USN or UTII. In the first case, there are two options-STS "Income" 6% or STS "Income minus expenses" 6-15% (the rate is determined depending on the region).
It is necessary to have a certificate of entry into the General trade register. In our case, the store will be opened on the territory of the shopping center, which will determine the receipt of the necessary document.
You will need to obtain permission to carry out trading activities.
The conclusions of the state supervision and Rospotrebnadzor are necessary.
Be sure to have a formal lease agreement, a contract for the removal of garbage.
You will need permission for outdoor advertising, if any.
Do not forget to fix the cash register in the tax.
We'll need the Goskomstat codes.

If you plan to sell any products that require a license, you will need to get it.
Employees must have medical books (do not forget about the regularity of passing commissions).
You will need a list of goods and certificates for them.
Do not forget about the need for a sanitary passport.
Such documents as a contract for the export of solid waste may not be necessary if the cleaning is carried out at the expense of the landlord and he has a General contract for the maintenance of the entire building. In this case, a certified copy will be sufficient.

Our store will be small, so large - scale advertising campaigns will be impractical. The main lever of influence will be the shopping center. Inside will be placed posters, information about the ongoing actions. At the opening of the store will be decorated with balls, welcome messages. A sign will be placed on the facade of the building. In the future, you should use the following methods to advertise your store:

Carrying out actions, days of sales. Their frequency will be agreed with buyers. Pre-will be analyzed commodity balances and the need for their sale. Small discounts on goods from last season can be arranged constantly by organizing a special tray with products and information about the discount.
Add information to city directories. This will deal with the entrepreneur. But to open your own website with such volumes of production is impractical. But with the expansion of the store you will need to think about it first. Then in the course can also go contextual advertising, informing customers through their group in social networks.
Distribution of flyers near the shopping center. This will help to increase the flow of visitors who will be interested in buying quality linen at affordable prices.
All this will attract customers to the store, increase the prospects of the organization. In parallel with the development and promotion of its own store entrepreneur should think about how to improve interaction with suppliers. Perhaps he will be able to get more favorable conditions or attract large companies, including international level. All this contributes to the further development and opening of new points.

Calculation of projected revenues
The margin on the goods in the underwear segment can vary from 100% to 300%. We will take the figure of 150%, as it is closer to the average price segment.

The average revenue per day will be about $ 15,000 per day. Therefore, the monthly revenue will be 450 000 dollars. Of these, $ 180,000 will be spent on the purchase of goods.

Production plan
So, for the work we need a room of 30 m2, as already mentioned above. For efficient functioning you will also need:

fitting room;
racks for product placement;
trays on the legs to accommodate the auction of the goods;
chair or staff chair;
equipment for scanning the bar code of the goods.
Video surveillance in a small shop is not needed. But the software is so much easier to manage.

The salary of the sellers will be $ 30,000. Total PAYROLL will amount to $ 60,000.

Organizational plan
Registration IP 800 dollars
Furniture 30 000 dollars
Office equipment 55 000 dollars
Equipment 140 000 dollars
The software and its hardware are $ 20,000
Creation of a commodity stock of 200 000 dollars
Staff training 15 000 dollars
Advertising 25 000 dollars
Total: 485 800 dollars
Financial plan
The rent is 45 000 dollars
Salary $ 60,000
Advertising 12 000 dollars
Purchase of goods 180 000 dollars
Accounting (outsourcing) 8 000 dollars
SOFTWARE maintenance, km 5 000 dollars
Total: $ 310 000
Profit before tax: 450 000 – 310 000 = $ 140,000.
Tax (calculated as 15% of the difference between income and expenses): 140 000*0,15 = 21 000 dollars.
Net profit: 140 000 – 21 000 = 119 000 dollars.
Profitability: 119 000/450 000*100% = 26.44%
Payback: 485 800/119 000 = 4.08. Therefore, the store will pay off in 5 months.
The main risks of this industry are:

Unprofessionalism of working sellers.
Such a factor can significantly reduce profits and adversely affect the functioning of the store. Irresponsibility can be a cause of the differences during the audit.

To save yourself from these negative consequences, it is necessary to work seriously with the staff, to check the accepted staff for competence and professionalism. To assess the quality of service, you can send a mystery shopper to the store and do it systematically.

It is necessary to teach employees how to work properly with equipment and software. This will facilitate their work and increase the transparency of what is happening in the store for the entrepreneur.

It is important that the seller was aware of the manufacturers, the composition of the goods, the quality of the brands provided. This will help the client to choose the most suitable products for themselves and their loved ones.

Rising costs.
This also applies to rent and the cost of goods supplied. To avoid trouble, you need to establish long-term relations with the tenant and suppliers, to document them.

Increased competition
Such a factor can be smoothed out, forming customer loyalty. For this purpose, the product was relevant, of high quality, fashionable and affordable.

Important: Remember that you can make your own business plan for your business. To do this, read the articles:

How to make a business plan yourself - detailed instructions;
The structure of the business plan and the main sections.
Approximate dаta:
Monthly income-450 000 dollars.
Net profit-119 000 dollars.
The initial cost is $ 485,800.
Payback-from 5 months.
Please finally: We are all people and can make mistakes, something not to take into account, not judge strictly if this business plan or others in the business plans section seemed incomplete to you. If you have experience in this or that activity or you saw a defect and can Supplement the article, please let us know in the comments! The only way we together can make the business plans more comprehensive, detailed and up to date. Thank you for your attention!
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In this section, we try to write ready-made business plans for you, give examples and samples of business plans for small businesses with detailed calculations, based on real or approximate indicators of the types of business under consideration.