JOHN DOE, Principle ABC CLOTHING, LLC
Table of Contents Executive Summary ....................................................................................................................3 Market Opportunity & Need ......................................................................................................7 Wholesaling ........................................................................................................................................ 7 Wholesale Trade Statistics ................................................................................................................... 8 Overview of the U.S. Apparel Market ................................................................................................. 11 Demographics ................................................................................................................................... 13 Target Market ................................................................................................................................... 13 General Industry and Market Reports ......................................................................................14 Men’s Apparel Wholesaling in the US ................................................................................................ 14 Menswear in the United States .......................................................................................................... 20 Solution and Business Model ...................................................................................................22 Company Overview ........................................................................................................................... 22 Legal Structure .................................................................................................................................. 22 Company Ownership ......................................................................................................................... 22 Location ............................................................................................................................................ 22 Founded ............................................................................................................................................ 22 Hours ................................................................................................................................................ 22 Solution/Service ................................................................................................................................ 22 Business Model ................................................................................................................................. 22 Growth Opportunity .......................................................................................................................... 23 Objectives ......................................................................................................................................... 23 The Keys to Success ........................................................................................................................... 23 Marketing Strategy ...................................................................................................................24 Marketing Programs ......................................................................................................................... 25 Web Plan Summary ........................................................................................................................... 25 Strategic Alliances ............................................................................................................................. 26 Positioning, Branding & Corporate Literature .................................................................................... 26 Fulfillment ......................................................................................................................................... 26 Sales Strategy.................................................................................................................................... 27 Positioning Statement ....................................................................................................................... 27 Pricing Strategy ................................................................................................................................. 27 Key Members of the Company/The Owner ..............................................................................28 JOHN DOE ......................................................................................................................................... 28 Management Team ........................................................................................................................... 28 C onfi denti al Busi ness P l a n - 1|P A G E
Personnel Plan................................................................................................................................... 28 Competition..............................................................................................................................29 Competitive Advantage & Unique Value Proposition ..............................................................30 Unique Value Proposition .................................................................................................................. 30 Strategy and Implementation ............................................................................................................ 30 Funding .....................................................................................................................................31 Conclusion ................................................................................................................................32 Pro Forma - 5 Year Financial Forecast.......................................................................................33 Start-up Summary ............................................................................................................................. 33 Pro Forma Summary Chart ................................................................................................................ 34 Income (Revenue) Statement............................................................................................................. 35 Profit & Loss Statement ..................................................................................................................... 36 Cash Flow Statement ......................................................................................................................... 37 Financial Indicators ........................................................................................................................... 38 Personnel .......................................................................................................................................... 39 Assumptions ...................................................................................................................................... 39 Breakeven Analysis ............................................................................................................................ 40 Balance Sheet.................................................................................................................................... 41 12 Month Forecast ............................................................................................................................ 42 C onfi denti al Busi ness P l a n - 2|P A G E
Executive Summary MARINA WEAR, LLC ADDRESS CITY, xxxxx Website: Pending Ownership JOHN DOE: 100 percent Contact JOHN DOE EMAIL@EMAIL.com XXX-XXX-XXXX Revenue Forecast Year 1: $220,500 Year 2: $441,000 Year 3: $771,750 Year 4: $1,350,563 Year 5: $2,363,484 Profitability Forecast Year 1: $24,268 Year 2: $31,554 Year 3: $66,077 Year 4: $101,108 Year 5: $188,235 Funding Needed: None; Owner funded Introduction ABC CLOTHING, LLC (also referred to as “The Company”) is a start-up men's suites and clothing wholesale business located in Los Angeles , CA. The business will launch in 2015. The Company will import and distribute men’s apparel; initially men's dress suites. The Company founder has identified a number of critical approaches to strategic development and marketing startup efforts, assessed alternatives, and developed a series of executable, and cohesive but independent, categories of action to aid the business in its core, overarching goals. Many of these strategies will require an investment of time and human resources over several months to achieve their intended outcome. Projections are provided to create a framework for developing actual implementation, based on the business and marketing plan, and ultimately assessing the potential impact to the revenue streams in the plan. It is imperative that analytical tools be engaged to accurately and appropriately assess each component of the integrated development effort in order to evaluate expected return on the strategic investment against actual results. As summarized in the following plan, the core strategies and specific tactical approaches address the major requirements of a comprehensive strategic development and start-up initiative to establish and grow the business. This business plan encompasses both the spirit of the C onfi denti al Busi ness P l a n - 3|P A G E
Company, e.g. value proposition, branding, and content design, as well as the functionalities of the Company, e.g. business plan to map out concepts, plan to map out specific strategies and tactics for development and the marketing strategies. Purpose & E-2 Requirements The purpose of this business plan is to define the business and the growth strategy of ABC CLOTHING, LLC as well as provide information and the financial projections necessary to evaluate the strength of the Company. The Owner, JOHN DOE, seeks an E-2 Visa. E-2 Requirement 1 – The Owner is coming to the United States to invest in a new business venture. The Owners capital investment is substantial. E-2 Requirement 2 - Our investment offers goods for profit. This enterprise will make a significant economic contribution within the industry. E-2 Requirements 3 & 4– The Owner is investing his own funds into to the business. E-2 Requirement 5 - The source of funds is the Owner. Funds can be verified. The Company will demonstrate that there is a large enough market to service; ABC CLOTHING has the effective sales and marketing strategies to establish, grow and expand the Company. ABC CLOTHING will also demonstrate that the Company has eliminated or reduced as many variables of risk as possible. Mission We specialize in men's apparel (suits and more). Our mission is to provide quality garments at an affordable price. Vision Current with today's fashion while evolving to meet new trends, ABC CLOTHING buys clothing from the finest fabrics and imports quality men's apparel for wholesale. C onfi denti al Busi ness P l a n - 4|P A G E
Market Opportunity/Need The latest statistics released by the U.S. Census Bureau were released August 8, 2014. 1 Wholesale trade for durable and non-durable goods totaled out at USD $454.4 billion, which is a significant improvement (6.5 percent) over the sales for the same month in 2013. Trade & Wholesale2 Values Value of U.S. apparel imports from China $29,392.2m U.S. wholesale purchases of apparel, piece goods and notions $94.7bn Gross margin on apparel in U.S. wholesale $40.6bn The ABC CLOTHING target market is specifically geared towards professional men ages 18-65. General Industry and Market Reports Detailed reports below in the plan: Men’s Apparel Wholesaling in the US - IBISWorld Industry Report 42432 Menswear in the United States - MarketLine Industry Profile Solution/Service ABC CLOTHING will import and distribute men’s apparel; initially men's dress suites. Key Members of the Company/The Owner JOHN DOE, 100% Owner – XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 1 2 http://www.salehoo.com/blog/the-status-of-the-wholesale-market-in-the-us http://www.statista.com/topics/965/apparel-market-in-the-us/ C onfi denti al Busi ness P l a n - 5|P A G E
Competitive Advantage & Unique Value Proposition Superior quality men's suites and clothing wholesale More variety than any of the closest competitors Convenience; appropriate and ample hours of operation Competitive pricing The Owners experience in the industry Funding None; Owner funded in a Corporate account. Conclusion The Owner, JOHN DOE, seeks an E-2 visa and appreciates your consideration of his request. C onfi denti al Busi ness P l a n - 6|P A G E
Market Opportunity & Need Wholesaling Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional, or other professional business users; or to other wholesalers and related subordinated services. In general, it is the sale of goods to anyone other than a standard consumer. 3 The wholesale market, frequently referred to as the wholesaling business, is essentially the middle man between manufacturers and retailers for goods that eventually reach the end-user, i.e. the consumer. There are some wholesalers that take on the consumer directly through wholesale clubs (think Costco and Sam's Club), but the majority of wholesale market traders depend on volume sales to large retailers for the bulk of their income. 4 Classification of Wholesalers 5 There are several types of wholesalers, depending on their ownership, products handled, and their methods of distribution. As defined by the Census of Wholesale Trade, these different types include: Merchant wholesalers: Basically just resellers, buying in bulk, receiving inventory physically, and then selling smaller volumes to retailers, importers, and exporters. Brokers, commission merchants, and agents: Independent companies that act as the sales force, negotiating bulk sales for a manufacturer or another wholesaler for a commission, without ever actually handling the products; this is basically what a dropshipper does, but for the retail market. Manufacturer sales: Branches or offices of the product makers that handle sales to other businesses in-house, usually to merchant wholesalers. 3 http://en.wikipedia.org/wiki/Wholesale 4 http://www.salehoo.com/blog/the-status-of-the-wholesale-market-in-the-us 5 http://www.salehoo.com/blog/the-status-of-the-wholesale-market-in-the-us C onfi denti al Busi ness P l a n - 7|P A G E
Wholesale Trade Statistics6 The latest statistics released by the U.S. Census Bureau were released August 8, 2014. Although they don't include direct manufacturer sales, they can still give us an accurate overall view of the wholesale market segment's effects on the drop-shipping industry as a whole. Wholesale trade for durable and non-durable goods totaled out at USD $454.4 billion, which is a significant improvement (6.5 percent) over the sales for the same month in 2013. Sales are good and getting better it seems, but the profits of wholesalers thrive on ratios that approach 1:1, between inventory (products on hand) and sales. This means they have no extra stock eating up capital or taking up warehouse space. For all products, the overall inventory to sales ratio for June 2014 is 1.17. This is approaching the ideal 1:1 ratio, and a vast improvement from 5 years ago, which as the graph below shows, peaked at nearly 1.43. Analysis There have been some concerns in the wholesale trading sectors that recent market and technological developments would have a deleterious effect on wholesaling in the aggregate. If 6 http://www.salehoo.com/blog/the-status-of-the-wholesale-market-in-the-us C onfi denti al Busi ness P l a n - 8|P A G E
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