Quality product with designs and styling

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Executive Summary

The Stylo Knitware (Pvt) Ltd is consist of the best fabric, styling and designs in the market. The owners Mr.Khalid and Mr. Anjum Malik. Mr Khalid has a ten year experience in designing and styling in ladies, gents knitwear and Mr. Anjum Malik has a fifteen years experience in the outdoor garments industries.

The Stylo Knitwear is doing work with the middle man name is A to Z Group of Companies. The Stylo Knitwear take the order from the middle man and complete the order within the time period and shipped to the middle man. So the stylo knitwear does not maintain the inventory.

Objectives

The Stylo Knitwear's mission is to present the quality product with designs and styling that energizes outdoor activity.

To eliminate the middle man and lounge the product by self in the home country and the outdoor as well.

Keys to Success of the Stylo knitwear

To do a strong advertising campaign in online and magazines etc.

Excellent contractor relationship that will facilitate quality manufacturing of Company's knitwear clothing and quick shipment of orders.

Acquiring an excellent knitwear clothing designing staff.

The Company's Start-up Summary

The company's start up costs contains mostly of designs and marketing. For this purpose the company has £260,000 for investment and the company has got a short term loan of £200,000.

The Company's Start-up Funding

The Company's Start-up Funding

Start-up Expenses to Fund

58,500

Start-up Assets to Fund

401,500

Total Funding Required

460,000

Assets

Non Cash Assets From start-up

-

Cash Requirements from Start-up

401,500

Additional Cash Raised

-

Cash balance on Starting Date

401,500

Total Assets

401,500

Liabilities & Capital

Liabilities

Current borrowing

-

Long-term Liabilities

200,000

Total Liabilities

200,000

CAPITAL

Planned Investment By Owners

Mr. Anjum Malik

130,000

Mr. Khalid

130,000

Total planned investment

260,000

Loss at Start up Exp

(58,500)

Total Capital

201,500

Total Capital and Liabilities

401,500

Total Funding

460,000

The Company's Start up Expenses

The company's needs to acquire staff for the office staff, technical staff, accountant, designers and it needs stationery, some legal expenses, sales and marketing expenses, computer software equipment and software etc. So the company has planned the start up expenses for the first month are given below :

REQUIREMENTS FOR THE START-UP EXPENSES

Start up Expenses

Legal

1,000

Stationery

500

Consultants

5,000

Rent

2,000

Leased Office Equipment

10,000

Computer Equipment/ Software

30,000

Website

10,000

Total Start-up Expenses

58,500

START-UP ASSETS

Cash Required

401,500

Start up Inventory

-

Fixed Assets

-

Total Assets

401,500

Total Requirements

460,000

The Stylo's Ownership

The Stylo Knitwear is owned by the Mr. Khalid and Mr. Anjum malik. They are the partners of the company. Each of them contributed the 50% of the capital.

Products

The Stylo Knitwear will sell the women's outdoor knitwear clothing . They will offer outdoor knitwear clothing for almost every tyepe of active use. They will focus on the seasonal clothing demands of the customers like:

Fleece,

Jumper.

Tops

Market Analysis Summary

The company's owner has got the 10 to 15 year experience in the women's outdoor market wear has grown into a billions of pounds in the knitwear clothing industry, and the popularity of the internet has launched a number of online stores for women's outdoor wear and most of the companies are selling their product online exclusively. There are the numbers of reasons for this like, will customers buy online only just seen on the internet? But they believe if the process is fun and the products are great cheep and cheep

The key is marketing that the customers in the traditional advertising like, women fashion magazines. The advertising will focus on eliminate the middle man in their clothing budget and stepping up to the style of the stylo knitwear. The company logo will also be an important tool of the marketing that attracts the customer and bringing the customer to website.

Market Analysis

Potential Customer

Growth

Women Age 17 to 26

20%

7,000,000

8,200,000

9,640,000

11,368,000

13,441,600

20.00%

Women Age 27 to 38

15%

6,000,000

6,750,000

7,612,500

8,604,375

9,745,031

15.00%

Others

0%

-

-

-

0.00%

Total

17.81%

13,000,000

14,950,000

16,252,500

19,972,375

22,186,631

17.81%

Market Segmentation

The Stylo will be focusing on the two distinct groups of women knitwear clothing that purchase outdoor knitwear clothing:

  • Women 17 to 25 years of age, and
  • The women 26 to 40 years of age

The women's who are 17 to 25 years of age, the company believe that the youth age drives the market so this is the most important group to attract to the website. They have got less money than the older, so we must keep in mind give them what they want for less.

The women who are 26 to 40 years of age, The Company believe they are the core group that will drive the stylo knitwear's success. This group is very responsible for the growth of outdoor women's wear. They will go on the store for shopping and they will harder to pull into the website. The company will have to assure that the purchase will fit the way the customer wants it to.

Strategy and Implementation Summary

According to the market analysis The stylo knitwear will win market share in the women's outdoor knitwear clothing niche by aggressively pursuing visibility with its target customers.

Competitive Edge

The Stylo's competitive edge is its focus on the process than on product. The website of the company is just the endpoint of an entire marketing program to drive customer's interest in Stylo knitwear. The company has confidence in the quality and attractiveness of the products, and the company knows that the building the road through the website is our most important job.

Marketing Strategy

The Stylo knitwear's marketing strategy is very simple. To introduce the company's product and website in the women's fashion magazines.

For the first two month, The stylo knitwear will offer 10% off for all purchases under £100 and 15% off all purchases over £100. The company will offer the same discount time to time when the new season starts.

Pricing Strategy

The Stylo's pricing strategy is to introduce the quality product in low prices. This advantage will not impact on the sales profit or any initial cost. During the three months of operation the company will offer clothes on discounts on the initial cost. This will attract the customer to company's product.

Sales Strategy

The Stylo Knitwear will launch a £245,000 on advertising campaign targeted to their core customer group. The focus of the advertisement will be to keep the money you give to the middleman and use it to get outdoor. The Stylo's estimates that it will take most of the year to build our sales to the point where we begin to show a profit.

The company's strategy is to offer discount at various times of the year even the out season and build their initial awareness of the website.

Swot Business Analysis

Swot analysis is most important for any new business start up to look depth of business, strengths, threads, Weakness and Opportunities. We are in a competition market and we will manage our strength give effective and efficient best brand of knitwear clothing to our customers or clients. SWOT analysis points are given below:

Strengths

Our market competitors are wholesaler and retailers they only knows moving boxes , But in Stylo Knitwear we hire qualified designers, So they will provide quality customer service and they will design garments according to the age group like youth age and elders what women needs.

Weakness

It's very difficult to introduce new business in competition market those who have not worked previously together in an existing organization.

New business planners have insufficient financial funds as compared to existing companies.

As we know we are just starting a business and less people to know our website and company's logo as compared to the other companies

Opportunities

As we are modern and we think moderate so we will like to wear modern dress because its woman nature to jealous other woman specially if we are talking about dresses women dressing concept is they have a unique and fashionable dress because fashion is passion and every women like to see passionate. In market competitors are unable to satisfy women garments their business strategy just sell the garment they doesn't shown any interest as compare to Stylo knitwear will make fashionable dresses and their aim to satisfy their customers.

We have got the opportunity to advertise in women fashion magazines and spread our website and easy accessible for everyone.

Threats

We will face threats if other local company advertising their business in your local area, or if we are advertising our business marketing aggressively as a new competitor to go another area.

Threats of the new product, if another company lounge a new product which is admirable to the customer then it will be a threat for the business.

The Stylo's Sales Forecast

The company expect that the sales to increase at a same rate for the 1st year. It will start slow, but very soon pick up as their customer base will increase. The Stylo will see a sales increase of 38% between the 1st and 2nd year. The company feel that it will accomplish this goal and maintain this amount of sales.

Sales Forecast

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Sales

40,000

40,000

60,000

80,000

110,000

140,000

180,000

220,000

250,000

300,000

350,000

400,000

Cost of Sales

20,000

20,000

31,000

42,000

58,000

78,000

100,000

120,000

150,000

180,000

210,000

240,000

Gross Margin

20,000

20,000

29,000

38,000

52,000

62,000

80,000

100,0000

100,000

120,000

140,000

160,000

The Company's Management Summary

Mr. Anjum Malik has got the fifteen years of experience in outdoor marketing and as well as the website development. So Mr. Anjum is responsible for acquire the key team member who has got the sufficient knowledge and experience in web site development and marketing management. So Mr. Anjum has managed the team for marketing development and administration of the Stylo's website. Mr Khalid will be the in charge of the designing team and he will also manage the production of the designs by A to Z group of companies.

Personnel Plan

The company consist of the two owners and the eight staff members are given below:

  1. Three staff members are consists of the knitwear clothing design team.
  2. One is the web administrator.
  3. Two members of the marketing.
  4. One is the office manager.
  5. And the last one is the Accountant.

Pay Roll

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Marketing & Website Director

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

7,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

12,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

3,300

3,300

3,300

3,300

3,300

3,300

3,300

3,300

3,300

3,300

3,300

3,300

8

8

8

8

8

8

8

8

8

8

8

8

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

Financial Plan

The financial plan of the Stylo Knitwear is given below:

General Assumptions

Plan Month

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long term Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Monthly Profit and Loss Account

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Sales

40,000

40,000

60,000

80,000

110,000

140,000

180,000

220,000

250,000

300,000

350,000

400,000

Cost of Sales

20,000

20,000

31,000

42,000

58,000

78,000

100,000

120,000

150,000

180,000

210,000

240,000

Gross Margin

20,000

20,000

29,000

38,000

52,000

62,000

80,000

100,0000

100,000

120,000

140,000

160,000

50.00%

50.00%

48.33%

47.50%

47.27%

44.29%

44.44%

45.45%

40.00%

40.00%

40.00%

40.00%

Operating Exp

Payroll

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

Sales, Marketing & Other Exp

30,000

20,000

10,000

40,000

15,000

45,000

15,000

15,000

25,000

10,000

30,000

10,000

Utilities

200

200

200

200

200

200

200

200

200

200

200

200

Rent

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

Payroll Taxes

6,645

6,645

6,645

6,645

6,645

6,645

6,645

6,645

6,645

6,645

6,645

6,645

Total Operating Exp

83,145

73,145

63,145

93,145

68,145

98,145

68,145

68,145

78,145

63,145

83,145

63,145

Profit Before Interest

(63,145)

(53,145)

(34,145)

(55,145)

(16,145)

(36,145)

11,855

31,855

21,855

56,855

56,855

96,855

Interest Exp

1,636

1,604

1,573

1,542

1,511

1,480

1,449

1,418

1,387

1,356

1,324

1,293

Tax Incurred

19,434

16,425

10,716

17,006

5,229

11,288

3,122

9,131

6,140

16,650

16,659

28,668

Net Profit

(45,346)

(38,325)

(25,003)

(39,681)

(12,359)

26,338

7,284

21,306

14,328

38,850

38,871

66,893

Net Profit/Sales

-113.3%

-95.81%

-41.67%

-49.60%

-11.24%

-18.81%

4.05%

9.68%

5.73%

12.95%

11.11%

16.72%

Monthly Cash Flow Statement

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Opening Balance

401,500

391,365

321,253

298,569

276,577

250,790

245,485

233,129

251,688

275,662

302,408

352,859

Cash Received from Operation

Cash from Sales

40,000

40,000

60,000

80,000

110,000

140,000

180,000

220,000

250,000

300,000

350,000

400,000

Subtotal Cash from Operation

40,000

40,000

60,000

80,000

110,000

140,000

180,000

220,000

250,000

300,000

350,000

400,000

Exp from Operation

Cash Spending

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

44,300

Bill Payments

2,102

62,079

34,651

53,959

87,754

97,272

144,323

153,408

177,993

225,221

251,516

300,561

Long-term Liabilities Principal Repayment

3,733

3,733

3,733

3,733

3,733

3,733

3,733

3,733

3,733

3,733

3,733

3,733

Subtotal Cash Spent

50,135

110,112

82,684

101,992

135,787

145,305

192,356

201,441

226,026

273,254

299,549

348,594

Net Cash Flow

(10,135)

(70,112)

(22,684)

(21,992)

(25,787)

(5,305)

(12,356)

18,559

23,974

26,746

50,451

51,406

Cash Balance

391,365

321,253

298,569

276,577

250,790

245,485

233,129

251,688

275,662

302,408

352,859

404,265

Monthly Balance Sheet

Assets

Current Assets

Cash in Hand

401,500

391,365

321,253

298,569

276,577

250,790

245,485

233,129

251,688

275,662

302,408

352,859

404,265

Inventory

-

22,000

22,000

34,100

46,200

63,800

85,800

110,000

132,000

165,000

198,000

231,000

264,000

Fixed Assets

-

-

-

-

-

-

-

-

-

-

-

-

-

Total Assets

401,500

413,365

343,253

332,669

322,777

314,590

331,285

343,129

383,688

440,662

500,408

583,859

668,265

Liabilities

Current Liabilities

Account Payable

-

60,945

32,890

51,043

84,565

92,471

139,236

147,529

170,514

216,893

241,522

289,834

311,080

Long Term Liabilites

Short Term Loans

200,000

196,267

192,534

188,801

185,068

181,335

177,602

173,869

170,136

166,403

162,670

158,937

155,204

Total Liabilities

200,000

257,211

225,424

239,843

269,632

273,805

316,838

321,398

340,650

383,296

404,192

448,771

466,284

Paid up Capital

260,000

260,000

260,000

260,000

260,000

260,000

260,000

260,000

260,000

260,000

260,000

260,000

260,000

Retained Earnings

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

(58,500)

Earnings

-

(45,346)

(83,671)

(108,674)

(148,355)

(160,714)

(187,052)

(179,767)

(158,461)

(144,134)

(105,284)

(66,413)

481

Total Capital

201,500

156,154

117,829

92,926

53,145

40,786

14,448

21,733

43,039

57,366

96,216

135,087

201,981

Total Liabilities & Capital

401,500

413,365

343,253

332,669

322,777

314,590

331,285

343,129

383,688

440,662

500,408

583,859

668,265

Net Worth

201,500

156,154

117,829

92,926

53,145

40,786

14,448

21,733

43,039

57,366

96,216

135,087

201,981

Projected Financial Plan

Following are given the projected financial plan of the Stylo knitwear. This Financial plan show that the projected sales for the three years, profit & loss account, cash flow statement and the balance sheet. The company is expecting that sale in the next three years.

Projected Sales

Projected Sales

2009

2010

2011

Sales

2,170,000

3,000,000

4,300,000

Cost of Sales

1,249,000

1,800,000

2,580,000

Projected Payroll Plan

Marketing and Website Director

84,000

90,000

95,000

Designing Director

84,000

90,000

95,000

Designers

144,000

156,000

166,000

Web Administrator

48,000

52,000

56,000

Office Manager

36,000

39,000

42,000

Marketing Staff

96,000

104,000

112,000

Accountant

39,600

44,000

48,000

Total Payroll

531,600

575,000

614,000

Projected Profit & Loss Account

Sales

2,170,000

3,000,000

4,300,000

Cost of Sales

1,249,000

1,800,000

2,580,000

Gross Margin

921,000

1,200,000

1,720,000

Gross Margin

42%

40%

40%

Operating Exp

Payroll

531,600

575,000

614,000

Sales & Marketing Exp

265,000

340,000

440,000

Utilities

2,400

2,400

2,400

Rent

24,000

24,000

24,000

Payroll Taxes

79,740

86,250

92,100

Total Operating Exp

902,740

1,027,650

1,172,500

Profit Before Interest & Taxes

18,260

172,350

547,500

Interest Expenses

17,574

13,281

8,801

Taxes Incurred

206

47,721

161,610

Net Profit

480

111,348

377,089

Net Profit/ Sales

0.02%

3.71%

8.77%

Projected Cash Flow Statement

Opening Balance

401,500

404,264

243,008

Cash from sales

2,170,000

3,000,000

4,300,000

Additional Cash Received

-

-

-

Subtotal Cash Received

2,170,000

3,000,000

4,300,000

Exp from Operation

Cash Spending

531,600

575,000

614,000

Bill Payments

1,590,840

2,541,460

3,387,998

Additional Cash Spent

Principal Repayment

44,796

44,796

44,796

Subtotal Cash Spent

2,167,236

3,161,256

4,046,794

Net Cash Flow

2,764

(161,256)

253,206

Closing Balance

404,264

243,008

496,214

Projected Balance Sheet

ASSETS

Current Assets

Cash in Hand

404,264

243,008

496,214

Inventory

264,000

380,464

545,332

Total Current Assets

668,264

623,472

1,041,546

Fixed Assets

-

-

-

Total Assets

668,264

623,472

1,041,546

LIABILITIES

Current Liabilities

Account Payable

311,080

199.736

285,516

Long Term Liabilities

155,204

110,408

65,612

Total Liabilities

466,284

310,144

65,612

Paid up Capital

260,000

260,000

260,000

Retained Earnings

(58,500)

(58,019)

53,329

Earnings

481

111,349

377,089

Total Capital

201,981

313,330

690,418

Total Liabilities & Capital

668,264

623,472

1,041,546

Net Worth

201,981

313,330

690,418

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