Table of contents [showhide] 1 Description of the business
2 Upstream Businesses
3 Downstream Businesses
5 Marketing the business to clients
6 The business inputs and outputs
7 Setting up the business
8 The manufacturing or production process
9 Costing and bookkeeping
10 Running the business
11 Before beginning
12 Related articles
13 External links
14 Business Trials
Description of the business
The business will sell clothes to people of the local community of Saldanha/Hopland
What exactly is it that is going to be sold or done?
the business are going to sell clothes
Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost?
Skills needed for this business will be costing and pricing as well as communicating skills.
The 1000*1000 project will help me with this
What tools or equipment are needed? Where can they be bought, and how much will they cost?
I will need a shelter (from hardwear store) R300 Stock R700
How much space is needed to work from?
Only a piece of vacant land at a street corner
Where will the space be found, and how much will it cost to rent?
I will put my shelter at a street corner in Hopland or Diazville. There will be no rent involved. The municipality will allow me to do this
What sort of people will buy the product? Who are they and where do they live?
All men and women with an income in my local community
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
They will buy on a weekly or two weekly basis, depending on how they receive their money. Clients will come to me.
Upstream Businesses A list of businesses and ideas that provide the services and products that this business needs.
Downstream Businesses A list of businesses and ideas that this business could provide products for.
Competitors What major competitors will attract clients' spending away from the business' products?
Main competitors in the area:
Tshepo In town Pep Stores and some Chinese shops
What prices and products do these companies have?
Jeans R120 Shoes R80 Tops R35 Belts R20 Underwear R30 scarfs R35
What makes them popular / unpopular?
They are in business for a long period and there are no other clothing shops nearby (need to take a taxi to visit town)
What do they do to attract customers? Specials? Interesting marketing / advertising?
At monthend they have a special
Which of the competitors stand out as being particularly good at what they do?
Tshepo, because he sells quality products and he really cares abouat his clients and business.
What can be done to stand out against them? What can be done that is more exciting / more interesting?
The business will attract customers by offering clothes at the lowest prices. I should be friendly and take care. I will sell old stock at special prices. I will make sure my prices ar cheaper than theirs.
Marketing the business to clients What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?
All men and women - especially youth. They always want the latest fashion
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
In summer people buy more than in wintertime. I will make more over christmas time, as people want more fashionable clothes over this period.
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
They want the best quality at the lowest price.
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
They compare the price and look for the best quality. Mostly they look for the quality of service around the area in Saldanha. They decide to buy from me, because I am the best according to quality and price.
Do the clients want the same things sold in the same way, or do they want things to change all the time?
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
To attract the first clients I will sell the products at unbelievable prices. I will be very friendly to people.
The business inputs and outputs List all of the inputs (products that are required to produce the products):
All the different styles of clothes
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
Buy cash from several factory shops in Cape town
List all of your outputs (products created by your business):
Tops, jeans, bras's, shoes, scarfs, belts and other underwear
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
Product *Selling price *Profit
- Tops *R60 *R20
- Jeans *R80 *R40
- Bra's *R30 *R15
- Shoes *R80 *R40
- Scarfs *R35 *R15
- Belts *R30 *R15
- Panties *R25 *R10
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?
There are no time limit as long as it is still in fashion
Setting up the business List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
- Shelter (R300)
- Table (own)
- Chair (own)
How long will it take to get all of these things and how much will they cost to get?
Everything can be done within one day
- Shelter will cost about R300
- Stock will be about R700
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Transport R120
- Telephone R30
Total amount for fixed costs: R________150_______
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
The business will not employ any staff
What training will they need, how long will it take and how much will it cost?
The manufacturing or production process List every step, from start to finish, to produce the product
- Buy stock from supplier
- Check stock
- Put prices on stock
- Put stock on the stand
- Sell to the clients
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
Everything will be done by the owner herself
What possible problems may happen during each step of the manufacturing process?
I will not be able to give better prices than my competitors. I may have transport problems
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
I will try to buy my stock at low prices. I will try to get reliable transport
What is the maintenance program for all the equipment?
What safety requirements are important for production?
I will need to keep my stock safe at night (lock away) For clothing it is important to avoid direct sunlight to the product as it might lose colour and quality.
How will quality control and client feedback be handled?
- will check all stock for flaws before I buy them
- Be calm and have patience
- Always apologise when a customer complains about a product and exchange it if possible
Costing and bookkeeping How many of each of the stock items can reasonably be sold each day (and month)?
- Tops 10 per month
- Shoes 10 per month
- Scarfs 15 per month
- Belts 10 per month
- Panties 20 per month
- Bras 20 per month
Some days there will be no sales and other days many
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
Some of the clothing (like jackets) are seasonal
What sort of pricing strategy will be chosen (cheapest or best)?
The best price that clients can afford
What profit margin will be chosen for the products
Will depend on the cost price and popularity of product
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Cost price Margin Selling
- Tops R30 R30 R60
- Jeans R45 R35 R80
- Scarfs R15 R20 R35
- Belts R10 R15 R25
- Shoes R40 R40 R80
- Underwear R10 R15 R25
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
Yes it is still competitive
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
At least 20 items per month to be profitable
Set out the products, costs, margins and selling prices:
Daily Target Monthly Target Cost Price Margin Selling Price Total per Month
10 per month R 30 R 30 R 30 + R 30 = 10 x R60 = R600
X 10 pairs per month R 40 R 40 R 40 + R 40 =R80 = 10 x R80 = R800
15 per month
R 15 R 20 R 15 + R 20 = R35 = 15 x R35 =525
X X x number of working days in a month R y.yy R z.zz R y.yy + R z.zz = monthly target x selling price
X 20 PER MONTH R 10 R 15 R 10 + R 15 = R25 = 20 x R25 = 500
X 20PER MONTH R 10 R 15 R 10 + R 15 = 20 x R25 =R500
10 PER MONTH
R 45 R 35 R 45 + R 35 = R80 = 10 x R80 = R800
What trends are included in the projections?
Clothes in winter more expensive and clients buy more before christmas
Running the business What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
Shop will be open from 8hOO Till 17h00
- I will be responsible for everything in my business
Who will act as backup should the person responsible not be there? What do they need to act as backup?
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
- I will buy stock before every month end. If I am away my sister will run the business
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
- Pay rent
- Pay water
- Pay electricity
What is the schedule for training and motivating staff?
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
- I will talk to my clients
- Draw up a questionare about new products
- Listen when peopl talk about the latest fashion
Before beginning List some of the support services available (legal, business and other) that might be needed
West Coast Business Development Centre Red Door Mentors
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
Related articles Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
External links List links to outside websites that may be useful for anyone starting this business
Business Trials List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)
- NOBUHLE CLOTHING Diazville Saldanha
- LC UNDERWEAR Hopland Saldanha
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