ExpectingU. com will provide fun and comfortable collegiate maternity wear shirts via our website, and through an eBay store, which serves as a portal to our main website. Manufacturing will be done by a third party, and fulfillment will be handled in-house initially.
The primary target market is the 3.5 million women who are pregnant each year. These woman often buy maternity clothes for themselves during their pregnancy.
The secondary target market is the over 25,000,000 people who shop for and buy collegiate clothing each year. By being made aware that collegiate maternity wear exists, they are able to purchase items as gifts for someone they know who is pregnant.
As an online store, we will focus on the portions of these market segments which are comfortable shopping online.
The two groups of people who would buy maternity clothes are pregnant woman, and those who would shop for a pregnant woman, perhaps a husband or a family member. Based on these segments, our projected sales forecast is conservatively set at less then 1% of the total potential market, as highlighted in the following table and chart.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Expecting women | 0% | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,000 | 3,500,000 | 0.00% |
Collegiate wear shoppers | 0% | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 0.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 0.00% | 28,500,000 | 28,500,000 | 28,500,000 | 28,500,000 | 28,500,000 | 0.00% |
ExpectingU.com will be in a small segment of the clothing industry called Maternity Wear. Today the U.S. maternity wear industry generates sales of over $200 million and is comprised of over 2,000 retail stores and more than 500 websites that offer maternity clothing.
Pregnant women: There are over 3.5 million women who are expecting each year. The maternity retail business has come a long way from offering dowdy, baggy style maternity clothes to those that help women celebrate their style and look great even as their body changes. Clothes offered for pregnant women in the market now include hip and stylish maternity clothing, athletic wear and corporate clothes. After all, as pregnant women’s waist lines balloon, their lives and careers go on as usual. Women, for example, who are used to attending the sporting events for their favorite team would still want to show their support by wearing a fun and comfortable logo shirt. These women will be targeted through email campaigns, online advertising and direct marketing
In this industry, customers choose their clothing based on personal preference. They often like to find items that represent their pre-pregnancy wardrobe so they can continue to keep their own style. By marketing our products to pregnant women, many are sure to connect with something as personal as their favorite sports team. It is a specialty item that will make them feel good to wear.
By positioning in the market as a specialty store, we are confident that word of mouth will help to create product awareness. Our market research shows that pregnant women today attend sporting events and often have to resort to buying men’s large shirts or other make-shift clothing items. Pregnant women wearing our shirts in public will generate interest and lead to additional sales.
While there are several large maternity retailers such as Motherhood and Pea in the Pod, they all carry a mainstream line of clothes that are appealing to the masses. Due to their mass distribution model, it would not be prudent for them to carry small amounts of regional specialty items, such as collegiate shirts, at each store. Online retailers also carry a wide variety of maternity clothes, but very few carry collegiate maternity wear. Those that do offer very little variety in school representation. There is a need for a specialty web store geared for this type of apparel.
Our marketing strategy is to create product awareness among expecting women and their families by strategically placing Internet ads, using direct mail tactics sold and generating PR. We offer a unique product that we feel confident expecting women will find fun to wear during their pregnancy. It will be a novelty item that will allow them to stay connected to their interest in their collegiate team both at games and around town.
The competitive edge offered by ExpectingU.com is our unique product. Currently, no major maternity retailer and few online stores offer collegiate maternity t-shirts. We will position ourselves as a specialty online store catering to expecting moms who want to maintain their support of their favorite team through their pregnancy. Because of our niche, we can effectively choose targeted sources to market our product to our customers.
Our primary weakness is that we are a new business and we offer a new product. To generate sales, we must first create awareness that our product exists, and make it easy for potential customers to locate our online store. By offering a fun product that many expecting women would like to have, we feel we an quickly establish our presence in the maternity wear industry.
ExpectingU.com’s marketing strategy is crucial to the success of our business. We must create awareness of our product to our primary target market, as our products are of little use to anyone outside of this group. We will do this by:
Sales are dependent upon creating awareness of collegiate maternity wear within our target markets, and therefore the sales strategy for ExpectingU.com is based on driving business to our website and our eBay store. Because we are a new product line, we understand that we will have to generate excitement about our apparel in order to generate business. We will strategically place pop-up and banner ads on websites relevant to both expecting mothers and sports fans, we will use direct mail and email lists, and we will seek public relations coverage in relevant media sources.
Fulfilling orders
ExpectingU.com will fulfill orders from our eBay store and later, our own website. All payments will be processed through PayPal in the first year, although we will evaluate the option to do Fax orders if customer demand it.
E-orders : Customer can purchase online 24-hours a day, seven days a week.
Fax orders : Customers can fax in an order 24-hours a day, seven days a week if we implement this.
As the company grows, we will leave the option open to using a fulfillment center to take orders via the telephone.
The sales forecast for FY 2006 takes into account slower sales at the beginning as we create awareness of our product and website. Initially we will be selling one style of t-shirt, but will offer it with the logos of up to 132 different Division 1 universities. As the company grows, we will explore the demand for other types of collegiate maternity wear such as tank tops, sweatshirts and long-sleeved shirts. In the first three months, we will sell exclusively through eBay. Although this adds to direct costs (roughly $1 per shirt) because of eBay fees, we will save money on both marketing/advertising costs and website maintenance by holding off on fully developing our own site until we can see what items customers prefer. We anticipate that even after enabling sales on our website, eBay sales volume will continue to be higher.
The following table illustrates unit sales of 36,500 t-shirts for the first year. This would require us to sell to less than 1% of our primary target market.
The Monthly Sales Chart that follows indicates that we have some seasonality in our business. We expect sales to increase during the Fall, which is when football season occurs and when sales for collegiate goods are the highest.
Note that the direct costs shown in the Sales Forecast table represent only the direct inventory costs for t-shirts. There are other, non-inventory direct costs, including eBay fees and PayPal fees; these can be found in the projected Profit and Loss.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
t-shirts – www.ExpectingU.com | 11,600 | 12,180 | 12,789 |
t-shirts – eBay Store | 24,900 | 26,145 | 27,452 |
Total Unit Sales | 36,500 | 38,325 | 40,241 |
Unit Prices | Year 1 | Year 2 | Year 3 |
t-shirts – www.ExpectingU.com | $29.99 | $29.99 | $29.99 |
t-shirts – eBay Store | $29.99 | $29.99 | $29.99 |
Sales | |||
t-shirts – www.ExpectingU.com | $347,884 | $365,278 | $383,542 |
t-shirts – eBay Store | $746,751 | $784,089 | $823,293 |
Total Sales | $1,094,635 | $1,149,367 | $1,206,835 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
t-shirts – www.ExpectingU.com | $7.50 | $7.50 | $7.50 |
t-shirts – eBay Store | $7.50 | $7.50 | $7.50 |
Direct Cost of Sales | |||
t-shirts – www.ExpectingU.com | $86,971 | $91,320 | $95,886 |
t-shirts – eBay Store | $186,690 | $196,088 | $205,892 |
Subtotal Direct Cost of Sales | $273,661 | $287,407 | $301,777 |
The following are the key milestones for the first year of operations:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Obtain NCAA licensing for shirt production | 5/1/2005 | 5/20/2005 | $5,000 | ML | general |
PR packets to 10 expectant mother publications | 6/1/2005 | 7/15/2005 | $200 | ML | general |
Sign up products as affiliate offer on five sites | 6/1/2005 | 7/31/2005 | $250 | ML | general |
Obtain 2-3 email lists for expectant mothers | 6/15/2005 | 7/1/2005 | $1,000 | ML | general |
Place ads on two expectant mother websites | 7/1/2005 | 9/1/2005 | $10,000 | ML | general |
Send emails to target customers | 7/1/2005 | 7/31/2005 | $500 | ML | general |
Other | 7/1/2005 | 7/30/2005 | $0 | ML | general |
Totals | $16,950 |
The following sub-topics outline our plans to create and maintain our website. At first, we will have a simple text and image-based website which outlines our products and redirects customers to our eBay store. After the first three months, we will begin online ordering via our own website as well.
Our website will provide information about us and our products as well as order processing to purchase our products online. We will include our web address in all of our advertising to reinforce to our customers how to find us online. Our company logo and motto will also need to be eye catching and easy to remember so that once our customers find us, they will remember us and suggest us to their friends and family.
Initial Development
We will be working with an outside contractor to design the layout of the site. Initially, our site will provide an overview of the company, describe our products and services, and redirect visitors to our eBay store to purchase a shirt. The estimated costs for initial website development are listed in our start-up costs.
Some of the features included on the website will be the ability to search for logos by school name as well as by “team name” (such as the University of Alabama “Crimson Tide,” the UCLA “Bruins” and the University of Oregon “Ducks”). Good-quality pictures of our products and the logos on the products will be available, so the customer can see what they will be getting.
Full website (including online ordering)
In the third month of the plan, when we have a better sense of customer preferences, we will finish the development of the site to include online order processing (via PayPal). Starting in November (heavy football season) customers will have the choice of buying either directly from our website, or via our eBay store. Additional security functions are required for doing PayPal sales on our own website. Expenses for this further website development are listed in the Profit and loss table.
The order processing will include the ability to provide both a billing and an optional shipping address and will be able to process credit cards as well as payment by check (using PayPal).
Once the website design is complete, we will contract for ongoing maintenance and support of the site. These monthly cost estimates are listed in the expenses section of the Profit and Loss table.
Initially the only employee will be Mary Lenton, the company founder. She will oversee product development, the online store and marketing efforts. Outsourcing will be used on some initial tasks, specifically the website store design.
As the company launch date approaches, one part-time (30 hours/week) employee will be hired to help with fulfillment with a second part-time employee scheduled for the third month, entering into the highest potential selling time frame, football season. As the company grows, more personnel will be added as needed. If projections for October through December are correct, temporary seasonal help will need to be hired to assist in fulfilling the order processing.
Part-time staff will be responsible for processing all Internet and Fax orders, PayPal payments received, and will handle all shipping functions.
Subcontractors will be used to help with website design and marketing, and these subcontractor costs can be found in the Profit and Loss tables Expenses section.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Owner | $36,000 | $40,000 | $45,000 |
Fulfillment Representative 1 | $12,000 | $23,000 | $25,000 |
Fulfillment Representative 2 | $10,000 | $23,000 | $25,000 |
Total People | 3 | 3 | 3 |
Total Payroll | $58,000 | $86,000 | $95,000 |
ExpectingU.com projects the gross margin to be at approximately 65% percent. Sales projections for Year 1 are over $1,000,000. A monthly breakdown of the cash-flow analysis, balance sheet, business ratio, break-even analysis, and other financial details are shown in the appendix. Annual projections will be highlighted in the following sub-topics.
The company owner, Mary Lenton, will use personal funds to finance the start of this business. Since a home office is already established and there is a large area in the basement available for inventory storage, the primary start-up costs are associated with website store design, starting inventory, and licensing approval.
Start-up Funding | |
Start-up Expenses to Fund | $22,750 |
Start-up Assets to Fund | $41,000 |
Total Funding Required | $63,750 |
Assets | |
Non-cash Assets from Start-up | $35,000 |
Cash Requirements from Start-up | $6,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $6,000 |
Total Assets | $41,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Owner | $63,750 |
Investor | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $63,750 |
Loss at Start-up (Start-up Expenses) | ($22,750) |
Total Capital | $41,000 |
Total Capital and Liabilities | $41,000 |
Total Funding | $63,750 |
Break-even Analysis | |
Monthly Units Break-even | 1,009 |
Monthly Revenue Break-even | $30,270 |
Assumptions: | |
Average Per-Unit Revenue | $29.99 |
Average Per-Unit Variable Cost | $9.87 |
Estimated Monthly Fixed Cost | $20,308 |
The following table and charts show the projected profit and loss. Monthly projections are included in the appendix.
We must track our eBay and PayPal fees to make sure they are projected appropriately in the Other Cost of Goods section in the Profit and Loss statement. As we gain experience with what the average cost is for Item Fees, Final Value Fees, and PayPal fees, we may need to change the Profit and Loss table to reflect the correct cost. At this point we have placed high estimates to make sure that we are realistic about the cost of doing business on eBay.
The fees are based on the following:
eBay fees (only apply to eBay store sales): Insertion fee of $.35 per item, plus Final Fee at 5.25% of total sale price on each sale
PayPal fees (apply to all sales): First two months: Standard rate of $0.30 per sale, plus 2.9% of total sale price on each sale Afterwards: Merchant rate of $0.30 per sale, plus 2.5% of total sale price on each sale*
These fees are very conservative, assuming that each unit sale is one complete sale. It is likely that at least 1/5 of our sales in the heavy sales months will be for multiple shirts, since pregnant couples often know other pregnant couples and buy each other gifts.
We will also be spending marketing dollars to promote our products with eBay’s promotion tools. We want to make sure that we have enough money to buy some search placements as well as buying “bolded” listings in the eBay search results. As we sell more items we will adjust the marketing expenses either lower or higher — depending on what is working for us.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $1,094,635 | $1,149,367 | $1,206,835 |
Direct Cost of Sales | $273,661 | $287,407 | $301,777 |
eBay fees (eBay sales only) | $47,919 | $50,315 | $52,831 |
PayPal fees (all sales) | $38,617 | $40,232 | $42,243 |
Total Cost of Sales | $360,197 | $377,954 | $396,851 |
Gross Margin | $734,438 | $771,413 | $809,984 |
Gross Margin % | 67.09% | 67.12% | 67.12% |
Expenses | |||
Payroll | $58,000 | $86,000 | $95,000 |
Marketing/Promotion | $120,000 | $126,000 | $132,300 |
Depreciation | $0 | $0 | $0 |
Web Design and Maintenance | $33,000 | $36,300 | $39,930 |
Payroll Taxes | $8,700 | $12,900 | $14,250 |
Other | $24,000 | $0 | $0 |
Total Operating Expenses | $243,700 | $261,200 | $281,480 |
Profit Before Interest and Taxes | $490,738 | $510,213 | $528,504 |
EBITDA | $490,738 | $510,213 | $528,504 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $147,221 | $153,064 | $158,551 |
Net Profit | $343,516 | $357,149 | $369,953 |
Net Profit/Sales | 31.38% | 31.07% | 30.65% |
The monthly cash flow is shown in the illustration, with one bar representing cash flow per month and the other representing the monthly balance. The annual cash flow figures are included in the following table.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $1,094,635 | $1,149,367 | $1,206,835 |
Subtotal Cash from Operations | $1,094,635 | $1,149,367 | $1,206,835 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $1,094,635 | $1,149,367 | $1,206,835 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $58,000 | $86,000 | $95,000 |
Bill Payments | $628,740 | $701,080 | $740,128 |
Subtotal Spent on Operations | $686,740 | $787,080 | $835,128 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $686,740 | $787,080 | $835,128 |
Net Cash Flow | $407,895 | $362,287 | $371,707 |
Cash Balance | $413,895 | $776,181 | $1,147,888 |
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $413,895 | $776,181 | $1,147,888 |
Inventory | $22,493 | $23,622 | $24,803 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $436,387 | $799,803 | $1,172,692 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $436,387 | $799,803 | $1,172,692 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $51,871 | $58,138 | $61,074 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $51,871 | $58,138 | $61,074 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $51,871 | $58,138 | $61,074 |
Paid-in Capital | $63,750 | $63,750 | $63,750 |
Retained Earnings | ($22,750) | $320,766 | $677,915 |
Earnings | $343,516 | $357,149 | $369,953 |
Total Capital | $384,516 | $741,665 | $1,111,618 |
Total Liabilities and Capital | $436,387 | $799,803 | $1,172,692 |
Net Worth | $384,516 | $741,665 | $1,111,618 |
The following table shows the projected business ratios. We expect to maintain healthy ratios for profitability, risk, and return. Industry profile ratios based on the North American Industry Classification (NAICS) and Standard Industrial Classification (SIC) data for the Maternity Wear industry.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 5.00% | 5.00% | -17.40% |
Percent of Total Assets | ||||
Inventory | 5.15% | 2.95% | 2.12% | 38.82% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 28.73% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 90.64% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 9.36% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 11.89% | 7.27% | 5.21% | 24.75% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 5.78% |
Total Liabilities | 11.89% | 7.27% | 5.21% | 30.53% |
Net Worth | 88.11% | 92.73% | 94.79% | 69.47% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 67.09% | 67.12% | 67.12% | 24.54% |
Selling, General & Administrative Expenses | 35.71% | 36.04% | 36.46% | 13.39% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.79% |
Profit Before Interest and Taxes | 44.83% | 44.39% | 43.79% | 1.00% |
Main Ratios | ||||
Current | 8.41 | 13.76 | 19.20 | 3.27 |
Quick | 7.98 | 13.35 | 18.80 | 1.38 |
Total Debt to Total Assets | 11.89% | 7.27% | 5.21% | 34.77% |
Pre-tax Return on Net Worth | 127.62% | 68.79% | 47.54% | 2.50% |
Pre-tax Return on Assets | 112.45% | 63.79% | 45.07% | 3.83% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 31.38% | 31.07% | 30.65% | n.a |
Return on Equity | 89.34% | 48.15% | 33.28% | n.a |
Activity Ratios | ||||
Inventory Turnover | 11.00 | 12.46 | 12.46 | n.a |
Accounts Payable Turnover | 13.12 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 28 | 29 | n.a |
Total Asset Turnover | 2.51 | 1.44 | 1.03 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.13 | 0.08 | 0.05 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $384,516 | $741,665 | $1,111,618 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.40 | 0.70 | 0.97 | n.a |
Current Debt/Total Assets | 12% | 7% | 5% | n.a |
Acid Test | 7.98 | 13.35 | 18.80 | n.a |
Sales/Net Worth | 2.85 | 1.55 | 1.09 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
t-shirts – www.ExpectingU.com | 5% | 0 | 0 | 0 | 2,000 | 2,400 | 1,500 | 1,000 | 500 | 1,200 | 1,000 | 1,000 | 1,000 |
t-shirts – eBay Store | 5% | 1,000 | 1,500 | 2,000 | 3,000 | 3,600 | 2,500 | 2,000 | 1,500 | 1,800 | 2,000 | 2,000 | 2,000 |
Total Unit Sales | 1,000 | 1,500 | 2,000 | 5,000 | 6,000 | 4,000 | 3,000 | 2,000 | 3,000 | 3,000 | 3,000 | 3,000 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
t-shirts – www.ExpectingU.com | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | |
t-shirts – eBay Store | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | $29.99 | |
Sales | |||||||||||||
t-shirts – www.ExpectingU.com | $0 | $0 | $0 | $59,980 | $71,976 | $44,985 | $29,990 | $14,995 | $35,988 | $29,990 | $29,990 | $29,990 | |
t-shirts – eBay Store | $29,990 | $44,985 | $59,980 | $89,970 | $107,964 | $74,975 | $59,980 | $44,985 | $53,982 | $59,980 | $59,980 | $59,980 | |
Total Sales | $29,990 | $44,985 | $59,980 | $149,950 | $179,940 | $119,960 | $89,970 | $59,980 | $89,970 | $89,970 | $89,970 | $89,970 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
t-shirts – www.ExpectingU.com | 25.00% | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 |
t-shirts – eBay Store | 25.00% | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 | $7.50 |
Direct Cost of Sales | |||||||||||||
t-shirts – www.ExpectingU.com | $0 | $0 | $0 | $14,995 | $17,994 | $11,246 | $7,498 | $3,749 | $8,997 | $7,498 | $7,498 | $7,498 | |
t-shirts – eBay Store | $7,500 | $11,246 | $14,995 | $22,493 | $26,991 | $18,744 | $14,995 | $11,246 | $13,496 | $14,995 | $14,995 | $14,995 | |
Subtotal Direct Cost of Sales | $7,500 | $11,246 | $14,995 | $37,488 | $44,985 | $29,990 | $22,493 | $14,995 | $22,493 | $22,493 | $22,493 | $22,493 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Owner | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Fulfillment Representative 1 | 0% | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Fulfillment Representative 2 | 0% | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Total People | 2 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
Total Payroll | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $29,990 | $44,985 | $59,980 | $149,950 | $179,940 | $119,960 | $89,970 | $59,980 | $89,970 | $89,970 | $89,970 | $89,970 | |
Direct Cost of Sales | $7,500 | $11,246 | $14,995 | $37,488 | $44,985 | $29,990 | $22,493 | $14,995 | $22,493 | $22,493 | $22,493 | $22,493 | |
eBay fees (eBay sales only) | 5% | $1,924 | $2,887 | $3,849 | $5,773 | $6,928 | $4,811 | $3,849 | $2,887 | $3,464 | $3,849 | $3,849 | $3,849 |
PayPal fees (all sales) | 3% | $1,170 | $1,755 | $2,100 | $5,249 | $6,299 | $4,199 | $3,149 | $2,100 | $3,149 | $3,149 | $3,149 | $3,149 |
Total Cost of Sales | $10,594 | $15,888 | $20,944 | $48,510 | $58,212 | $39,000 | $29,491 | $19,982 | $29,106 | $29,491 | $29,491 | $29,491 | |
Gross Margin | $19,396 | $29,097 | $39,036 | $101,441 | $121,728 | $80,960 | $60,480 | $39,998 | $60,865 | $60,480 | $60,480 | $60,480 | |
Gross Margin % | 64.67% | 64.68% | 65.08% | 67.65% | 67.65% | 67.49% | 67.22% | 66.69% | 67.65% | 67.22% | 67.22% | 67.22% | |
Expenses | |||||||||||||
Payroll | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Marketing/Promotion | $10,000 | $15,000 | $20,000 | $20,000 | $20,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Web Design and Maintenance | $1,000 | $1,000 | $4,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Payroll Taxes | 15% | $600 | $600 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 |
Other | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Total Operating Expenses | $17,600 | $22,600 | $31,750 | $30,750 | $30,750 | $15,750 | $15,750 | $15,750 | $15,750 | $15,750 | $15,750 | $15,750 | |
Profit Before Interest and Taxes | $1,796 | $6,497 | $7,286 | $70,691 | $90,978 | $65,210 | $44,730 | $24,248 | $45,115 | $44,730 | $44,730 | $44,730 | |
EBITDA | $1,796 | $6,497 | $7,286 | $70,691 | $90,978 | $65,210 | $44,730 | $24,248 | $45,115 | $44,730 | $44,730 | $44,730 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $539 | $1,949 | $2,186 | $21,207 | $27,293 | $19,563 | $13,419 | $7,274 | $13,534 | $13,419 | $13,419 | $13,419 | |
Net Profit | $1,257 | $4,548 | $5,100 | $49,483 | $63,685 | $45,647 | $31,311 | $16,974 | $31,580 | $31,311 | $31,311 | $31,311 | |
Net Profit/Sales | 4.19% | 10.11% | 8.50% | 33.00% | 35.39% | 38.05% | 34.80% | 28.30% | 35.10% | 34.80% | 34.80% | 34.80% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $29,990 | $44,985 | $59,980 | $149,950 | $179,940 | $119,960 | $89,970 | $59,980 | $89,970 | $89,970 | $89,970 | $89,970 | |
Subtotal Cash from Operations | $29,990 | $44,985 | $59,980 | $149,950 | $179,940 | $119,960 | $89,970 | $59,980 | $89,970 | $89,970 | $89,970 | $89,970 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $29,990 | $44,985 | $59,980 | $149,950 | $179,940 | $119,960 | $89,970 | $59,980 | $89,970 | $89,970 | $89,970 | $89,970 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $4,000 | $4,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | |
Bill Payments | $574 | $17,498 | $25,972 | $50,932 | $117,986 | $116,605 | $54,046 | $45,640 | $31,522 | $60,646 | $53,659 | $53,659 | |
Subtotal Spent on Operations | $4,574 | $21,498 | $30,972 | $55,932 | $122,986 | $121,605 | $59,046 | $50,640 | $36,522 | $65,646 | $58,659 | $58,659 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,574 | $21,498 | $30,972 | $55,932 | $122,986 | $121,605 | $59,046 | $50,640 | $36,522 | $65,646 | $58,659 | $58,659 | |
Net Cash Flow | $25,416 | $23,487 | $29,008 | $94,018 | $56,954 | ($1,645) | $30,924 | $9,340 | $53,448 | $24,324 | $31,311 | $31,311 | |
Cash Balance | $31,416 | $54,902 | $83,910 | $177,928 | $234,883 | $233,237 | $264,161 | $273,501 | $326,950 | $351,273 | $382,584 | $413,895 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $6,000 | $31,416 | $54,902 | $83,910 | $177,928 | $234,883 | $233,237 | $264,161 | $273,501 | $326,950 | $351,273 | $382,584 | $413,895 |
Inventory | $35,000 | $27,500 | $16,254 | $14,995 | $37,488 | $44,985 | $29,990 | $22,493 | $14,995 | $22,493 | $22,493 | $22,493 | $22,493 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $41,000 | $58,916 | $71,156 | $98,905 | $215,416 | $279,868 | $263,227 | $286,654 | $288,496 | $349,442 | $373,766 | $405,076 | $436,387 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $41,000 | $58,916 | $71,156 | $98,905 | $215,416 | $279,868 | $263,227 | $286,654 | $288,496 | $349,442 | $373,766 | $405,076 | $436,387 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $16,658 | $24,351 | $47,000 | $114,027 | $114,794 | $52,507 | $44,623 | $29,492 | $58,858 | $51,871 | $51,871 | $51,871 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $16,658 | $24,351 | $47,000 | $114,027 | $114,794 | $52,507 | $44,623 | $29,492 | $58,858 | $51,871 | $51,871 | $51,871 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $16,658 | $24,351 | $47,000 | $114,027 | $114,794 | $52,507 | $44,623 | $29,492 | $58,858 | $51,871 | $51,871 | $51,871 |
Paid-in Capital | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 | $63,750 |
Retained Earnings | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) | ($22,750) |
Earnings | $0 | $1,257 | $5,805 | $10,905 | $60,388 | $124,073 | $169,720 | $201,031 | $218,004 | $249,584 | $280,895 | $312,206 | $343,516 |
Total Capital | $41,000 | $42,257 | $46,805 | $51,905 | $101,388 | $165,073 | $210,720 | $242,031 | $259,004 | $290,584 | $321,895 | $353,206 | $384,516 |
Total Liabilities and Capital | $41,000 | $58,916 | $71,156 | $98,905 | $215,416 | $279,868 | $263,227 | $286,654 | $288,496 | $349,442 | $373,766 | $405,076 | $436,387 |
Net Worth | $41,000 | $42,257 | $46,805 | $51,905 | $101,388 | $165,073 | $210,720 | $242,031 | $259,004 | $290,584 | $321,895 | $353,206 | $384,516 |
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By Nick Cotter Updated Feb 02, 2024
1. perform market analysis., 2. draft a maternity clothes business plan., 3. develop a maternity clothes brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for maternity clothes., 6. open a business bank account and secure funding as needed., 7. set pricing for maternity clothes services., 8. acquire maternity clothes equipment and supplies., 9. obtain business insurance for maternity clothes, if required., 10. begin marketing your maternity clothes services., 11. expand your maternity clothes business..
Before launching a maternity clothes business, conducting a thorough market analysis is crucial. This step will help you understand your target audience, identify trends, and position your business for success. Here's how to approach the market analysis:
Yes, maternity clothes businesses can be profitable. With the growing demand for maternity clothing, maternity clothes businesses have the potential to become profitable if they have a well-defined target market, good quality products, and an effective marketing strategy. Additionally, businesses can increase profitability by offering discounts, promotions, and loyalty programs.
Starting a maternity clothes business requires careful planning to ensure success. A well-thought-out business plan is your roadmap, outlining your business goals, strategies, and how you plan to achieve them. Here's a guide to help you draft an effective business plan for your maternity clothing venture:
A maternity clothes business can make money by selling maternity clothing items, such as tops, bottoms, dresses, and lingerie, to expecting mothers. They can also offer services such as tailoring, customization, and styling advice. Additionally, they may be able to offer accessories and other items related to pregnancy and new motherhood, such as nursing bras, maternity pillows, and more.
Creating a maternity clothes brand requires a deep understanding of your target market and a clear brand identity that resonates with expecting mothers. Here's a step-by-step guide to help you develop a brand that stands out and connects with your audience.
Brainstorm ideas by considering words that evoke feelings of comfort, femininity, and joy. Think of alliterative phrases that are catchy and easy to remember. Check to make sure the name you like is not already in use, and make sure it is available as a domain name. Finally, consult friends and family for feedback to make sure the name resonates with others.
Once you've laid the groundwork for your maternity clothes business, it's crucial to formalize your venture. This step legitimizes your business in the eyes of the law and is essential for various functions such as taxation, liability protection, and credibility with customers. Below are key actions to take when registering your business:
Explore valuable resources designed for maternity clothes entrepreneurs aiming to understand market trends, operational excellence, and strategic growth:
Starting a maternity clothes business requires not only a flair for fashion and understanding of your market but also ensuring that you comply with various legal requirements. Acquiring the necessary licenses and permits is a critical step in legitimizing your business and avoiding any legal issues down the line. Here are some key actions to take:
Depending on the type of business you are planning to operate, and your location, you may need to obtain a variety of licenses and permits. Examples include a business license, sales tax permit, a zoning permit for operating in a residential area, health department permits (if you will operate a physical store), fire safety permits, and any other specialized permits that might be required in your state or local jurisdiction.
Securing your financial foundation is crucial when starting a maternity clothes business. Opening a business bank account separates your personal finances from your business transactions, providing clarity and protection. Additionally, finding the right funding can fuel your growth and inventory needs. Below are steps to guide you through this process:
Establishing the right pricing strategy is crucial for the success of your maternity clothes business. It's important to find a balance between affordability for expectant mothers and profitability for your company. Consider the following guidelines when setting your prices:
Initiating a maternity clothes business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $24000 for launching such an business. Please note, not all of these costs may be necessary to start up your maternity clothes business.
When starting a maternity clothes business, it's essential to carefully select the range of clothing, equipment, and supplies that will meet the needs of expectant mothers. Here are some key considerations to help you acquire the right inventory for your business:
Ensuring that your maternity clothes business is protected with the right insurance is a critical step in establishing a secure foundation for your enterprise. Here's a guide to help you understand and obtain the necessary business insurance:
Now that you have laid the groundwork for your maternity clothes business, it's time to attract customers and grow your brand. Effective marketing is essential in creating awareness and driving sales. Here are some strategies to get the word out about your services:
After establishing a solid foundation for your maternity clothes business, it's time to take it to the next level. Expanding your business requires strategic planning and a focus on customer satisfaction. Here are some key steps to consider for growth:
It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a maternity clothing store while showcasing the expected financials and operations over the next three years. Maternity Clothing Store, Inc. (“the Company”) is a New York based corporation that will provide a number of different clothing and apparel pieces to pregnant in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
Maternity Clothing Store is a business that specializes in the retailing of mid and high end apparel specifically for pregnant women. The store will carry inventories specific for every stage of pregnancy. At this time, Mr. Doe is sourcing a number of brand name clothing manufacturers that carry extensive lines of clothing specifically for pregnant women. After the business begins its operations, the Company will launch an online ordering platform to generate sales on a nationwide basis. These additional sales will allow the business to reach profitability very quickly. The third section of the business plan will further describe the products offered by the Maternity Clothing Store.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Maternity Clothing Store’s mission is to become the recognized leader in its targeted market for mid and high end apparel products specifically for pregnant women.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target expectant families and pregnant women within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Maternity Clothing Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Maternity Clothing Store requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Maternity Clothing Store, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Maternity Clothing Store. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the apparel products offered by the Maternity Clothing Store.
3.1 Maternity Apparel Products
As stated in the executive summary, Mr. Doe is sourcing a number of wholesalers and clothing distributors that will provide the Company with its inventories of maternity apparel. The Company is committed to acquiring fashionable and affordable mid and high end apparel pieces of the business’s customer based of expectant families and mothers. Management anticipates that the Company will be able to mark-up our purchased inventory 65% of its actual cost. The key to the success of the business will depend on Management’s ability to create a stable brand that attracts a wealthy middle to upper middle income earning group (of pregnant women and expectant families) within the targeted region.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the apparel (and maternity apparel) industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, apparel stores that specialize in maternity clothes are relatively immune from changes in the economy as expectant mothers and families will continue to require this type of clothing regardless of the general economic climate.
4.2 Industry Analysis
The direct retail sale of apparel to the end user is a $150 billion dollar a year industry in the United States. This growth rate for this industry has been tremendous over the last five years. Growth is expected to occur at a rate of 4% to 5% on an annual basis. This is primarily due to the shift in advertising by brand name and high end retail stores. The economic tastes of Americans have changed significantly over the last five years as the overall wealth of the country has grown. As Americans now have more access to capital and an increased borrowing capacity, their ability to spend money on brand name and luxury items has also increased. Within this industry, approximately 7% of all sales are from pregnant women that need maternity apparel. One of the most exciting areas of retail trade is the ability to have a virtual store online. Management fully anticipates that once retail operations commence, the Company will develop a streamlined method for customers. This will allow them to order, purchase, and make transportation arrangements without having to visit the Maternity Clothing Store’s retail location.
4.3 Customer Profile
As of the last census there are approximately 12 births per 1000 people in the Untied States. Over the last twelve years, this number has decreased in each year as more and more women are opting to have a career before setting into motherhood. According to government estimates, this number is expected to continue to decrease as more women enter the workforce after high school or college. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Maternity Clothing Store, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Maternity Clothing Store to easily target expecting women and families within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Maternity Clothing Store will also use an internet based strategy. This is very important as many people seeking local retailers, such as maternity clothiers, now the Internet to conduct their preliminary searches. Mr. Doe will register the Company with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will showcase the Company’s location, its product lines, and e-commerce functionality so that customers can place orders directly over the internet. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the maternity apparel that the Company is selling.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Maternity Clothing Store will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, the high gross margins generated by the business will ensure that the business will maintain profitability despite deleterious economic conditions. Additionally, maternity apparel is demanded by women regardless of negative economic climates, and as such, the business will be able to sustain any moderate decline in top line income.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis
The complete guide to launching a profitable maternity clothing brand.
The maternity clothing industry has seen steady growth in recent years driven by increased demand from millennial moms looking for stylish and comfortable options to wear during and after pregnancy. Starting a maternity clothing line can be a profitable business opportunity but requires thorough planning and preparation before launch. This comprehensive guide covers key steps - from conducting market research to identifying your brand identity, designing products suited for expectant moms, sourcing high-quality materials and manufacturing, building an online retail presence, and expanding into wholesale and retail distribution channels. With some dedication and strategic thinking, your maternity wear brand can capture this growing market.
The first crucial step is gaining insight into consumer needs and conducting competitive analysis. Surveys of pregnant women and new moms can provide feedback on preferred styles, fabrics, fit, and pricing. Study current brands in the market to spot gaps in sizing, designs, quality, and price points. Common complaints like limited plus-size options or affordable workwear create potential opportunities to win customers. Analyze target demographics including age, income, lifestyle and where they currently shop. Consider niches like athletic maternity wear or eco-friendly organic lines. Assess growth trends in the industry and forecast sales. Examine costs for licensing, production, marketing. Develop a business plan covering all operational details - from financing and startup costs to pro forma financials. Consult with small business experts like SCORE to refine your business strategy.
With market research completed, now focus on designing your actual maternity apparel line. The most flattering cuts accommodate a pregnant belly with stretch side panels and ruching, A-line dresses, empire waist, and wrap styles. Fabrics like jersey knits and soft cotton/spandex blends are comfortable yet structured. Choose quality materials that won't fade or pill after multiple washes. Consider separates like side-panel maternity jeans that can be mixed and matched with tops. Integrate layers like lightweight cardigans and kimono shirts for versatile outfits. Include basics like tanks, tees, and leggings in neutral shades as pregnancy wardrobe staples. Cater to the need for nursing-friendly pieces with button-down tops and discreet nursing panels. Create a size chart that runs from petite to plus sizes. Test samples on pregnant product testers and conduct wearer trials. Refine based on feedback before finalizing the product line.
To produce quality pieces at the right price, you must identify reputable fabric suppliers, manufacturers, and fulfillment centers. Seek out vendors familiar with handling stretchy maternity fabrics like jersey, modal, and lycra. Request fabric swatches when comparing quality. Seek local cut-and-sew manufacturers or domestic factories for easier collaboration and quality control. Schedule factory visits to inspect working conditions firsthand and build relationships. Don't sacrifice ethics for lower costs. Negotiate minimum order quantities - lower to start allows more flexibility as you test demand. Consider using a fulfillment service to handle warehousing, shipping, and returns. Calculate costs of materials, labor, shipping to set wholesale pricing and margins. Create processes to track inventory and manage production runs and restocking.
Now it's time to focus on branding, establishing your unique style and voice in the market. Come up with a memorable business name and logo that communicates your aesthetic and feel. Hire a designer to create a cool, contemporary look and feel with attractive visuals for your website, ads and packaging. Photograph real pregnant and new moms wearing your collection - show diversity in body types and ages. Tell authentic stories about their motherhood journeys in marketing content. Leverage influencer marketing by giving product to mom bloggers, Instagrammers to organically showcase your brand. Sponsor pregnancy, mom, and parenting podcasts and online communities. Run targeted Facebook and Instagram ads focused on expectant and new moms. Exhibit at consumer pregnancy expos and specialty boutique trade shows to gain wholesale accounts. PR outreach can gain editorial coverage in pregnancy magazines and websites. Use CRM tools to segment and engage customers throughout their pregnancy journey.
A streamlined, mobile-friendly online store is crucial for reaching today's digital-savvy moms-to-be. Startup ecommerce platforms like Shopify make launching a site easy without coding skills. Invest in a responsive site with intuitive navigation showcasing photography of real moms modeling your pieces. Provide detailed product descriptions, size charts, and fabric details. Set up secure payment processing and integrate shipping carriers. Offer free returns within a window as pregnant women's sizes fluctuate. Provide live customer service chat and phone support options. Build email signup incentives like 10% off first purchase for capturing contacts. Automate post-purchase emails to drive repeat sales. Active blogs, sales pages, and email marketing nurture interest and engagement. Run periodic sales events and specials like a "Mommy Makeover" collection for postpartum. SEO and retargeting campaigns also help attract organic site traffic.
While ecommerce opens up global reach, expanding into physical retail locations provides added visibility with a maternity customer base who want to see, feel, and try on clothing. Pitch to popular maternity apparel chains, baby gear stores, and high-end department stores focused on expectant and new moms. Attend specialty boutique trade shows to showcase your collection to retailers. Renting booths at consumer-focused pregnancy expos allows direct interaction with local moms. Partner with hospital maternity wards and birth centers to distribute discount flyers and samples. Popup shops in areas with lots of new families and events like baby showers and kids birthday parties offer low-risk retail testing. As wholesale accounts grow, hire a sales rep well-connected with boutique buyers.
Launching a fashion brand tailored for soon-to-be moms has major business potential if you can find the right niche, style, price point and marketing approach. Conduct in-depth competitor and market analysis to identify opportunities to address unmet needs. Design quality pieces using soft, breathable fabrics cut for comfort and fit during pregnancy. Establish ethical production and fulfillment partnerships to deliver consistent quality and inventory management. Build a brand identity and online presence targeting modern, millennial moms. Partner with maternity retailers, influencers, and community hubs to gain visibility. Provide outstanding customer service and value to earn loyalty through the motherhood journey. With smart planning and strategic execution, your stylish maternity wear can become a favorite brand for pregnant women nationwide.
03.15.2021 | Fashion Marketing + PR
You’re designing for an audience that definitely needs new clothing to fit them during their pregnancy journey, and it’s an audience that is diverse in their needs and wants.
In many ways, starting a maternity clothing line is like starting any other clothing line . But there are some key differences when you’re marketing to pregnant customers. Here are a few tips to keep in mind as you consider your maternity line:
While your designs are important in attracting customers to your maternity clothing line, your marketing plan is probably the most important part of your new venture. Your success depends on developing the right messaging for your brand and getting the word out to the right audience about your maternity clothing line. It’s worth spending time and money to craft a strong marketing plan.
As in any fashion market, there are a ton of maternity lines out there. Take a careful look at several successful brands, especially ones that align with your tastes and values. What makes them successful? What customer needs do they address, and how? And where are there gaps that your brand might be able to fill?
You’ll also want to look closely at where you can market your maternity clothing line. Not every retailer carries maternity clothing, which is a limitation; however, there may be opportunities elsewhere, like shops that carry baby gear. Mastering online marketing is a must for helping your brand thrive and expanding your reach.
Beyond the obvious answer of “pregnant folks,” you’ll need to dig deeper into your target market. Will your line be for pregnant people who need formal business wear, casual ensembles, athleisure, or comfortable pajamas?
Will customers be able to wear your maternity clothing as they transition into the postpartum phase, and will your line also be compatible with breastfeeding? Take some time to consider the potential customer personas that you’re designing for. Here are a few examples of a potential maternity clothing customer:
Within your target market, you’ll need to identify what will make your maternity clothing line stand out. Will your clothing be more affordable than the competition? More sustainable? Higher quality? Trendy? Classic? Size-inclusive?
You may decide that you want a full maternity clothing line so that a potential customer could fill their entire wardrobe from your offerings. Or you could go in the opposite direction, focusing on a few key pieces (like robes or leggings) that become your brand identity. Don’t forget about options like maternity bras and underwear – many customers may try to minimize spending on their maternity wardrobe but will splurge on quality undergarments.
Marketing your maternity line to your potential customers can be tricky. As customers choose maternity clothing, they’re adjusting to their rapidly changing bodies and also trying to adjust their budgets to prepare for a new baby. Pregnant customers want many things:
As you work on your maternity clothing line and your marketing plan, consider how you’ll convey to customers that your clothing will deliver the qualities they want.
Ask anyone about their pregnancy wardrobe, and you’ll probably hear at least a few complaints about clothing that didn’t fit well. Every pregnant body is different, and the maternity jeans that fit one bump perfectly may fall off of another.
Some pieces, like gowns and flowy dresses, are more forgiving, but if your line includes jeans, pants, or more formal business wear, you’ll need to work hard at making sure your items are as well-fitted as possible. Your fabric choices are especially important in maternity clothing design, as your clothes will need to be comfortable but supportive.
One major point to keep in mind is that customers are increasingly looking toward the postpartum period when they choose maternity clothes. Leggings that provide abdominal support after birth are popular, as are tops that facilitate easy breastfeeding access. Comfortable caftan dresses can serve as maternity sleepwear, delivery robes, and postpartum comfort essentials. If you can design clothing that won’t outlive its usefulness right after birth, you may be able to attract a loyal following and maximize your sales.
It’s also important to remember that many pregnant customers are still looking for stylish clothing to wear throughout (and after) their pregnancy. They don’t want to abandon fun patterns, classic silhouettes, or new trends just because they’re pregnant. A carefully crafted maternity clothing line can spark excitement in customers who are going through a major life change.
Don’t be overwhelmed by all of the details you need to consider as you plan your maternity clothing line. As long as you stay tuned in to the passion that led you to launch your brand, you’ll find your groove and bring something new and exciting to the maternity fashion landscape.
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Published Apr.11, 2022
Updated Apr.23, 2024
By: Jakub Babkins
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Table of Content
Starting a maternity clothing business has its challenges but at the same time, it can also be a rewarding choice for your fashion brand. According to Grand View Research , the global maternity clothing market is projected to expand due to an increase in the number of pregnant women who are working as well. The demand is also expected to increase due to greater interest in maternity fashion.
To start a startup in this specific market, you need to conduct an extensive market analysis and formulate a maternity clothing business plan. As somebody new to the business, you could start by analyzing a business plan for retail clothing of an existing brand and understand what business model suits you the best. This would help you develop an impressive business plan for investors when you need funding for your start-up.
This business plan is set out for Southern Maternity Clothes and can address your concerns regarding how to start a maternity clothes business.
2.1 the business.
Southern Maternity Clothing is a maternity clothing boutique style retailer of maternity and child clothing and accessories. Southern Maternity Clothing will offer its customers a wide range of executive maternity clothes to choose from. The flagship maternity clothes franchise is established by Maria Gilmore in Maryland. Southern Maternity Clothing is expected to quickly gain market share by offering a nice selection of upper-end merchandise with benchmarked customer service.
While establishing a business clothing maternity start-up, it is essential to ensure that all aspects of the business are coherent. The much-needed cohesion in business operations can only be achieved by creating a business plan before time.
A maternity clothing business model is similar to a clothing store business plan . It is recommended to go through this business plan and a few more to get clarity on this business domain. In case you want to get a boutique franchise, you can visit the business plan for a franchise.
Southern Maternity Clothing refers to the following customer groups in Maryland:
Southern Maternity Clothing’s mission is to become the premier maternity boutique for the upscale expectant mother and her child. This will be accomplished by offering the newest fashions and the highest level of customer attention.
3.1 company ownership.
Maria Gilmore will be the owner of Southern Maternity Clothing. Maria has an undergraduate degree in Fashion Designing. After graduation, Maria went to work for Saks Fifth Avenue, an upscale retail chain. Maria was one of the leading buyers for the entire chain within four years, which provided her with unique insight into the retail industry . A key takeaway from her experience was that business of professional maternity clothes is a niche that is still untapped in the market.
After noticing a change in consumer trends amongst expecting mothers, Maria thought of starting a maternity clothing business of her own. Until recently, fashion-conscious women have been looking for an upscale boutique where they can get good-looking, chic clothing for themselves, fashionable clothes for toddlers, and a wide range of gifts and accessories. Hence, Maria decided to introduce her own business of formal maternity clothes line.
Step1: Plan Everything
Provided that having a separate line of maternity clothes for business women is a relatively newer concept, it is quite natural for you to wonder about how to start a maternity clothes business. Therefore, it is recommended that you plan everything ahead of time and have contingency plans for all plausible business scenarios.
Step2: Develop a Brand
The next step is to be recognized by defining your business’s services and values. Having the proper business structure is very important to Southern Maternity Clothing. We are concerned with getting the company started on the appropriate foundation to allow for smooth business operations. For this reason, we sought and hired the best employees who are competent and have the right experience and understanding of the business.
Step3: Establish Your Corporate Office
If your leadership style is like Maria’s, you will be more comfortable with direct supervision of your staff and store. Maria’s corporate office will be in Maryland’s City Centre, adjacent to the clothing store.
Step4: Establish a Web Presence
Provided that online shopping has become a norm, a clothing brand must have a presence in e-commerce. Having an online website will help the customers in purchasing from Southern Maternity Clothing. It is essential that the website has a user-friendly interface and features like accurate size charts and online customer support to assist the buyers.
Step5: Promote and Market
The last step is developing and executing a marketing plan to promote your services. To make your maternity clothing business successful, you must employ marketing strategies that will make your business objectives coherent. For example, if you use a business plan for a baby clothes store, you might have goals related to the number of articles you aim to sell in the following months.
Legal | $136,400 |
Consultants | $0 |
Insurance | $26,600 |
Rent | $36,600 |
Research and Development | $10,000 |
Expensed Equipment | $53,600 |
Signs | $3,400 |
Start-up Assets | $231,400 |
Cash Required | $236,000 |
Start-up Inventory | $39,000 |
Other Current Assets | $226,000 |
Long-term Assets | $287,000 |
Start-up Expenses to Fund | $266,600 |
Start-up Assets to Fund | $1,019,400 |
Assets | |
Non-cash Assets from Start-up | $1,289,800 |
Cash Requirements from Start-up | $136,000 |
Additional Cash Raised | $56,000 |
Cash Balance on Starting Date | $35,000 |
Liabilities and Capital | |
Liabilities | $16,200 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $53,000 |
Other Current Liabilities (interest-free) | $0 |
Capital | |
Planned Investment | $1,286,000 |
Investor 1 | $0 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Loss at Start-up (Start-up Expenses) | $161,600 |
Starting a maternity clothing store can be daunting and confusing. If you are new to the clothing business and are unaware of the products to offer. In that case, you can refer to this maternity clothing business plan sample to get a hint of the services available at Southern Maternity Clothing.
Once you find yourself in need of bump-friendly clothing, you might realize just how frustrating the shopping process can be. As mentioned in this maternity clothing online business plan, the customers of Southern Maternity Clothing have the option of purchasing clothes online or visiting the nearest franchise in Maryland. Furthermore, the team of fashion designers working with the firm offer creative maternity clothes ideas which help with customizing your dresses.
All the mothers-to-be must plan and buy baby clothes before the little one arrives. Southern Maternity Clothes has a separate clothing line for babies that is as chic as the main maternity clothing line.
Gift Baskets will be a unique selling point of Southern Maternity Clothing. Customized gift baskets, including accessories that go with the maternity clothing line, add a personal touch and aid with building customer loyalty.
In this maternity clothes business plan, we will explain how this service will grant us a competitive advantage as well.
We also offer assorted fancy containers for a particular target market. Friends and family who gift maternity clothing to the expecting mothers around them have an option of getting them wrapped at our store to make it prettier and presentable.
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At Southern Maternity Clothing, you will find every type of article, ranging from plus size maternity business clothes to maternity clothes business casual dresses. However, to ensure that the customers buy these products, you must conduct a thorough market analysis. This sample business plan for maternity clothes can help you understand the main aspects of market analysis.
Many maternity clothes are loose and stretchy (generally made of lycra or spandex material) to allow for a growing body. In the past, maternity wear was often used to hide the ‘baby bump’, but with growing ideas of gender equality and more working women, maternity wear is now a part of women’s fashion . According to Statista, in 2021, the U.S. maternity wear stores market was valued at approximately $941.3 million.
While thinking, “how do I start a maternity clothing business”, you must investigate your target audience. Market segmentation is a vital thing to do to meet your business objectives.
5.2.1 expecting mothers.
Expecting mothers will be the main target customers of our business. Whether they are working mothers or stay-at-home moms, our maternity clothing store business plan will cater to all of them.
Maternity and baby clothes are ideal gifts to give to an expecting mother. Our store should be your one-stop shop if you’re friends with somebody expecting as we cater to customized gifting needs.
Our maternity clothing business plan will engage different retailers nationwide so that our products reach customers not only in Maryland but all across the U.S.
Given that Southern Maternity Clothing aims to be an upscale business, it does not want to engage in unsustainable business practices. Thus, all the preloved maternity and baby clothes returned to us are sold in thrift stores. Owners of such stores will buy preloved clothes from our store and sell them after charging a standard commission fee. Our company employs a comprehensive thrift store business plan to effectively manage this service.
Expecting Mothers | 32% | 46,100 | 55,320 | 66,384 | 79,661 | 95,593 | 10.00% |
Friends & Families | 24% | 36,100 | 43,320 | 51,984 | 62,381 | 74,857 | 10.00% |
Retailers | 23% | 22,600 | 27,120 | 32,544 | 39,053 | 46,863 | 10.00% |
Thrift Stores | 21% | 18,600 | 22,320 | 26,784 | 32,141 | 38,569 | 11.00% |
10% |
To gain the needed customers for the first few months of our business and increase awareness, we intend to offer reduced prices for our clothing articles. The reduced prices will last three months, reduce our profit margin but won’t make us run at a loss.
Regardless of whether you are looking into maternity clothing franchise opportunities or a bridal store business pla n, you need to have an effective marketing strategy. It would help you stand out amidst competition and capture market share.
Southern Maternity Clothing will use a robust set of marketing and sales strategies mentioned in this maternity clothing shop business plan. Hence it would be helpful to read it thoroughly if you are thinking of working on your own business plan maternity clothing line.
Unit Sales | |||
Maternity Clothes | 5,250 | 5,565 | 5,899 |
Baby Clothes | 4,500 | 4,770 | 5,056 |
New Baby Gift Baskets | 3,550 | 3,763 | 3,989 |
Assorted Fancy Containers | 2,500 | 2,650 | 2,809 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Maternity Clothes | $120.00 | $139.20 | $161.47 |
Baby Clothes | $130.00 | $150.80 | $174.93 |
New Baby Gift Baskets | $110.00 | $127.60 | $148.02 |
Assorted Fancy Containers | $60.00 | $69.60 | $80.74 |
Sales | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Maternity Clothes | $40.00 | $44.00 | $46.20 |
Baby Clothes | $20.00 | $22.00 | $23.10 |
New Baby Gift Baskets | $30.00 | $33.00 | $34.65 |
Assorted Fancy Containers | $20.00 | $22.00 | $23.10 |
Direct Cost of Sales | |||
The average cost of starting a maternity clothing business is similar to that mentioned in business plan for boutique shop . It is important to account for different kinds of costs to forecast financial returns accordingly. These costs include the salaried employees at the franchise.
This maternity clothing business plan for Southern Maternity Clothing outlines hiring for the following positions:
Manager | $32,000 | $35,200 | $38,720 |
Sales Manager | $30,000 | $33,000 | $36,300 |
Graphic Designers | $52,000 | $57,200 | $62,920 |
Store Manager | $225,000 | $247,500 | $272,250 |
Sales Assistants | $44,500 | $48,950 | $53,845 |
Web Developer | $22,500 | $24,750 | $27,225 |
In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, it would help analyze your yearly expenses to determine the possibilities of scaling the company. All of this information is an integral part of your maternity clothing business plan sample that will be presented to potential investors.
A detailed financial plan helps you achieve your monetary goals as it gives you a clear picture of your cash in-flows and outflows.
It is a good idea to conduct a marketing analysis beforehand to estimate how much the existing brands in the clothing market are currently making. This can be done by studying a maternity clothes business plan of your competitor.
Here we’re providing a financial plan used by our business for your help.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 8.12% | 8.20% | 8.26% |
Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
Tax Rate | 24.03% | 24.21% | 24.60% |
Other | 0 | 0 | 0 |
Monthly Units Break-even | 5340 |
Monthly Revenue Break-even | $132,500 |
Assumptions: | |
Average Per-Unit Revenue | $231.00 |
Average Per-Unit Variable Cost | $0.62 |
Estimated Monthly Fixed Cost | $163,800 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Expenses | |||
Payroll | $406,000 | $446,600 | $491,260 |
Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
Depreciation | $2,300 | $2,350 | $2,500 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $2,900 | $3,000 | $3,100 |
Insurance | $2,100 | $2,100 | $2,100 |
Rent | $2,900 | $3,000 | $3,200 |
Payroll Taxes | $24,000 | $25,000 | $27,000 |
Other | $0 | $0 | $0 |
Profit Before Interest and Taxes | $713,800 | $996,234 | $1,376,582 |
EBITDA | $713,800 | $996,234 | $1,376,582 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $142,760 | $199,247 | $275,316 |
Net Profit | $571,040 | $796,987 | $1,101,266 |
Net Profit/Sales | 32.53% | 36.92% | 41.49% |
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Cash Received | |||
Cash from Operations | |||
Cash Sales | $51,000 | $55,080 | $59,486 |
Cash from Receivables | $22,000 | $23,760 | $25,661 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $42,000 | $42,000 | $45,000 |
Bill Payments | $27,000 | $28,000 | $31,000 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $21,000 | $23,000 | $25,000 |
Cash Balance | $27,000 | $30,000 | $33,000 |
Assets | |||
Current Assets | |||
Cash | $275,000 | $308,000 | $338,800 |
Accounts Receivable | $24,000 | $26,880 | $30,213 |
Inventory | $4,300 | $4,816 | $4,900 |
Other Current Assets | $1,000 | $1,000 | $1,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 4 | Year 5 | Year 6 |
Current Liabilities | |||
Accounts Payable | $18,700 | $20,944 | $23,541 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $30,000 | $30,000 | $31,000 |
Retained Earnings | $53,000 | $57,770 | $63,547 |
Earnings | $193,400 | $210,806 | $231,887 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $293,400 | $319,806 | $351,787 |
Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
Percent of Total Assets | ||||
Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
TOTAL ASSETS | ||||
Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
Main Ratios | ||||
Current | 34 | 35 | 36 | 32 |
Quick | 33 | 33.8 | 34.645 | 33 |
Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
Collection Days | 100 | 100 | 100 | N.A. |
Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
Payment Days | 27 | 27 | 27 | N.A. |
Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
Acid Test | 29 | 29.12 | 29.16 | N.A. |
Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
Yes, the market for maternity clothes is very vast. The global maternity wear market is expected to grow by USD 2.91 billion, at a CAGR of over 3% during 2021-2025. The growth of the maternity wear market was temporarily affected in 2020 due to the growing number of COVID-19 cases. While making your maternity clothing business plan, you must account for such ups and downs.
Fortune estimates that pregnant women, on average, spend almost $500 per pregnancy on maternity clothes. That breaks down to between $50 and $60 spent per month of pregnancy. Hence, while formulating the pricing strategy in your business plan maternity clothing line, you should look into the expenditure behavior patterns of your customers.
Opening a maternity store can be difficult if you don’t know who your target market is. Hence, looking into that beforehand is important. Usually, the market segments for maternity clothes comprise the following two categories:
However, this sample business plan for maternity clothes targeted four types of target audiences.
These specialty stores sell clothing, shoes, undergarments, and supplies, such as body care and breastfeeding gear, for pregnant women and new mothers. Owning a maternity boutique can be fulfilling and lucrative, and there are several things you can do to help ensure your business’s success.
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The How to Start a Maternity Clothing Store Guide will provide you with all of the necessary steps and information that you need in order to launch your business. You will learn how to how to raise capital, manage startup, how to establish a location, how to market your Maternity Clothing Store, and how to maintain your day to day operations. Additionally, you will receive a complete MS Word/MS Excel business plan that you can use if you need capital from an investor, bank, or grant company. The MS Word and MS Excel documents feature a completely automated table of contents, industry research, and specific marketing plans that are for a Maternity Clothing Store. You will also receive a customizable PowerPoint Presentation.
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A SWOT analysis is crucial for developing a business plan for a maternity clothing shop. This analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, helps in understanding internal and external factors that can impact your business. Strengths and weaknesses are internal to the business, while opportunities and threats are external.
In this article, we will explore various examples of strengths, weaknesses, opportunities, and threats, aiding maternity clothing shop owners in incorporating these insights into their business strategies.
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Highlight strengths that distinguish your Maternity Clothing Shop and contribute to customer satisfaction and loyalty.
Address weaknesses that need improvement to fortify your Maternity Clothing Shop.
Seize opportunities that can propel growth and innovation for your Maternity Clothing Shop.
Anticipate threats that might pose risks to your Maternity Clothing Shop’s operations.
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Value of the maternity apparel market worldwide from 2016 to 2023 (in billion u.s. dollars).
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Fully editable 30+ slides Powerpoint presentation business plan template for a Maternity Clothing store. 5,900+ downloads. Free support. ... Maternity Clothing Shop Business Plan. Category Business Plan Industry Retail $ 90 Original price was: $90. $ 50 Current price is: $50.
The Plan. Our maternity clothing store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of your maternity clothing store's ...
Malone's Maternity, a start-up company, is a boutique style retailer of maternity and child clothing and accessories. Malone's Maternity will offer its customers a wide range of upscale products to choose from. The business has been formed as an Ohio corporation by Sandy Malone. By offering a nice selection of upper-end merchandise with ...
May 16, 2024. Business Plan, Sales & Marketing Strategy. Establishing and managing a flourishing maternity clothing shop goes beyond offering stylish attire for expectant mothers; it necessitates a strategic approach to marketing and sales for sustained success in the industry. This guide will help you craft a comprehensive sales and marketing ...
This plan outlines the strategy for starting and running a successful maternity clothing business, addressing key aspects such as market analysis, marketing strategies, operational plans, financial projections, and growth strategies. II. Business Description. A. Company Overview. [Your Company Name]is founded by a passionate fashion designer ...
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Some brands design clothing specifically for pregnant women. If you work for such a company, and you've come up with a nice marketing plan, use this template to reflect the most important data in these slides so that all your colleagues are aware of it in your next meeting. With this simple design and a good use of pictures, that marketing plan ...
Welcome to our blog post on how to write a business plan for a maternity clothing store! The maternity clothing industry is booming, with a projected growth rate of 2.4% in the next five years.As the demand for fashionable and comfortable maternity wear continues to rise, now is the perfect time to embark on this business venture.
Total Startup Expenses for Maternity Clothes Business. Store location and lease agreement: The location, size, and condition of the property determine the cost of leasing a physical store location. It can cost between $3,000 and $10,000 per month. Interior design and store fixtures:Athleisure maternity stores need to create an attractive and ...
Step 7: Identify potential suppliers and establish strong relationships to ensure a steady supply of high-quality products. Step 8: Create a comprehensive marketing and advertising plan to effectively reach your target market and build brand awareness. Step 9: Outline the organizational and staffing structure of your maternity boutique ...
1.1 Objectives. Create a unique maternity wear product and offer them in 75% of Division 1 football schools' collegiate logos by the end of year one. Generate retail sales of over $1,000,000 in year one, both on our site and on our eBay store. Maintain a gross margin of over 65%. To achieve 100 eBay customer positive feedback comments in one ...
2. Draft a maternity clothes business plan. 3. Develop a maternity clothes brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for maternity clothes. 6. Open a business bank account and secure funding as needed. 7. Set pricing for maternity clothes services. 8. Acquire maternity clothes equipment and ...
1.0 Executive Summary. The purpose of this business plan is to raise $100,000 for the development of a maternity clothing store while showcasing the expected financials and operations over the next three years. Maternity Clothing Store, Inc. ("the Company") is a New York based corporation that will provide a number of different clothing and ...
The maternity clothing industry has seen steady growth in recent years driven by increased demand from millennial moms looking for stylish and comfortable options to wear during and after pregnancy. Starting a maternity clothing line can be a profitable business opportunity but requires thorough planning and preparation before launch.
Pregnant customers want many things: Comfort: Especially in the later stages of pregnancy, comfort is key. Practicality: Maternity clothing needs to be designed for the realities of pregnancy - nothing that's too hard to put on or take off. Fashion: People will still want to look and feel good while pregnant, and want to have fun with their ...
2.1 The Business. Southern Maternity Clothing is a maternity clothing boutique style retailer of maternity and child clothing and accessories. Southern Maternity Clothing will offer its customers a wide range of executive maternity clothes to choose from. The flagship maternity clothes franchise is established by Maria Gilmore in Maryland.
Fully editable 30+ slides Powerpoint presentation business plan template. Get the business plan. Trustpilot. ... Maternity Clothing Shop Business Plan. Download an expert-built 30+ slides Powerpoint business plan template {{product_image|medium}} Get the business plan. Table of Contents.
Includes 500+ icons and Flaticon's extension for customizing your slides. Designed to be used in Google Slides, Canva, and Microsoft PowerPoint. 16:9 widescreen format suitable for all types of screens. Includes information about fonts, colors, and credits of the free resources used.
Everything You Need to Know About Starting a Maternity Clothing Store. Plus get a 425+ Page SBA Approved Lender Directory! 9 Chapter Business Plan (MS Word) - Full Industry Research - Included In the Guide! Same Day Shipping (If order is placed before 5PM EST)! Delivered as CD-ROM. Easy to Use MS Excel 3 Year Financial Model
Wear your heart on your sleeve with this clothing e-commerce business plan template. Clean and minimal, these orange and blue slides pack plenty of room for your mission, background and story, team bios, market analysis, value proposition, customer segments, cost structure, and more. Share your filled-out template with colleagues, friends, and ...
May 16, 2024. Business Plan, SWOT. A SWOT analysis is crucial for developing a business plan for a maternity clothing shop. This analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, helps in understanding internal and external factors that can impact your business. Strengths and weaknesses are internal to the business ...
This statistic shows the value of the maternity apparel market worldwide from 2016 to 2023. In 2016, the global maternity wear market was valued at approximately 6.1 billion U.S. dollars. Get ...