Table of Content

    Do you want to start bridal shop business?

    Do you want to start a bridal shop business? Well, if you are a gifted artist in designing bridal gowns and can join your passion with the latest fashion trends, then it is probably the right business for you. Bridal shop business is undoubtedly one of the most profitable businesses because brides don’t hesitate to spend a lot of cash on the dress that suits her the best on their special day.

    Before the startup, you must prepare a comprehensive bridal store business plan. If you don’t know how to open a bridal shop, you can take help from this sample business plan of a bridal shop business startup named ‘Angelic Bridal Shop’.

    Executive Summary

    1.1 The Business

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    Angelic Bridal Shop will be a licensed wedding dress business in Piedmont Avenue, Oakland, California. Angelic Bridal Shop will provide the best possible beaded and embroidered wedding dresses and accessories for brides, bridesmaids, flower girls and mothers of bride and groom.

    1.2 Management

    Angelic Bridal Shop will be owned by Clara James. Clara is a fashion designer herself, yet she will get the services of more designers and artisans, stylists, sewers, and operation manager for running the business.

    1.3 Customers

    After you have learned how to start a bridal shop, the next step is to carry out proper research to know your customers. Our major customers will include brides, and the women attending the ceremony such as bridesmaids, mothers of bride and groom in Oakland.

    1.4 Business Target

    Our business targets to be achieved within the next three years are as follows:

    Bridal Shop Business Plan - 3 Years Profit Forecast

    Company Summary

    2.1 Company Owner

    Mrs. James is a well-known lady in fashion designing and bridal dress business for the past 15 years. She also has got a Bachelor’s degree in ‘Apparel Design’ from San Francisco State.

    2.2 Why the Business is being started

    Clara’s modernist thought, practical design, and the pursuit of expensive simplicity had already made her a famous figure in fashion designing. Now, she is doing research on the latest trends and is working on many new ideas for designing unique and royal styled bridal dresses.

    2.3 How the Business will be started

    Before opening a bridal shop, you must estimate how much does it cost to open a bridal shop. Mrs. James will take a spacious shop with dressing rooms and display counters on rent. Besides the comfortable seating and strategic lightening, the shop will be adorned with large mirrors and a light background music. The startup expenses are as follows:

    Bridal Shop Business Plan - Startup Cost

    The detailed startup requirements are given below:

    Start-up Expenses  
    Legal $55,300
    Consultants $0
    Insurance $32,750
    Rent $32,500
    Research and Development $32,750
    Expensed Equipment $32,750
    Signs $1,250
    TOTAL START-UP EXPENSES $187,300
    Start-up Assets $0
    Cash Required $332,500
    Start-up Inventory $32,625
    Other Current Assets $232,500
    Long-term Assets $235,000
    TOTAL ASSETS $121,875
    Total Requirements $245,000
    START-UP FUNDING $0
    START-UP FUNDING $273,125
    Start-up Expenses to Fund $11,875
    Start-up Assets to Fund $15,000
    TOTAL FUNDING REQUIRED $0
    Assets $23,125
    Non-cash Assets from Start-up $18,750
    Cash Requirements from Start-up $0
    Additional Cash Raised $18,750
    Cash Balance on Starting Date $21,875
    TOTAL ASSETS $0
    Liabilities and Capital $0
    Liabilities $0
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $0
    Capital $0
    Planned Investment $0
    Investor 1 $332,500
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $695,000
    Loss at Start-up (Start-up Expenses) $313,125
    TOTAL CAPITAL $251,875
    TOTAL CAPITAL AND LIABILITIES $251,875
    Total Funding $255,000

    Products

    Before you start a bridal shop, you must make a detailed wedding dress business plan covering the products and services you will provide to your customers.

    The main products of Angelic Bridal Shop will be:

    1. Bridal Dresses: We will display more than 250 embroidered and beaded ball-gown, A-line, trumpet, sheath and tea-length designs samples. So, you can choose any design, color or fabric that suits you. The customers can either provide us with their desired designs or can tell us their requirements through any channel. After taking the order we’ll prepare the dress of the desired size in just a week.
    2. Party Dresses: Angelic Bridal Shop will also cater with the clothing needs of mothers of bride and groom, groomsmen, flower girls, junior bridesmaid etc. by presenting elegant party dresses of luxurious fabrics and exquisite designs.
    3. Accessories: We will also keep the best quality and fashionable accessories in our shop like jewelry, belts/sashes, headpieces, veils, shoes, jackets, wedding cards and wedding gifts in accordance with the requirements of our customers.
    4. Repairing & Resizing: We will also provide repairing and resizing the wedding dress services to our customers.

    Our shop will remain open till late at night, however, customers can also order our products online via our official website.

    Market Analysis Summary

    Before opening a bridal boutique, you have to do its accurate marketing analysis because a good business plan for bridal shop can only be developed after this stage. The accuracy of your marketing analysis will decide the future of your startup. As with tough competition, your business can only be successful if you critically focus the market trends and your target customers. If you are starting on a larger scale, it is always best to seek the counsel of marketing experts on how to open a wedding dress shop  and run it effectively, otherwise, you can take help from this sample business plan.

    4.1 Market Trends

    The United States is one of the biggest bridal business markets in the world. About 2.5 million weddings are estimated in the United States every year. According to IBIS World, the bridal industry has generated a revenue of more than $3 billion, and the number of bridal shops is still increasing significantly in the United States. The bridal shop business is responsible for hiring more than 20,000 people across the country. Brides often do not compromise on the price when they find something best for them. Thus, the bridal shop has a lot of potential and can prove immensely profitable for you provided that you plan your business successfully.

    4.2 Marketing Segmentation

    Our target market is the residential community of Oakland. We are strategically benefited by our location as Oakland offers the wealthiest neighborhoods of the world.

    It is very important to analyze the market segmentation of the future customers of your products or services because a successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become our future customers:

    Bridal Shop Business Plan - Market Segmentation

    The detailed marketing segmentation of our target audience is as follows:

    4.2.1 Brides: Our first target group will be the brides who never compromise on the dress which is going to mark their appearance on their very special wedding day. We have our own sample dresses, but we’ll also prepare if some bride wants some changes or a design of her own.

    4.2.2 Flower Girls: As with the bridesmaids’ attire, the dresses for the flower girls are also decided by the bride usually, so these girls will also prove as one of our target group.

    4.2.3 Others: It is not just the bride who needs a wedding dress, for the purpose of maximizing our sales we also have arranged more than a hundred party dresses for females, especially for the mothers of bride and groom. Mothers also want to mark the day of their extreme happiness with their marvelous appearance, that’s why the style of their dress tends to take precedence over price.

    The detailed market analysis of our potential customers is given in the following table:

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Others 32% 11,433 13,344 16,553 18,745 20,545 13.43%
    Brides 48% 22,334 32,344 43,665 52,544 66,432 10.00%
    Flower Girls 20% 12,867 14,433 15,999 17,565 19,131 15.32%
    Total 100% 46,634 60,121 76,217 88,854 106,108 9.54%

    4.3 Business Target

    Our main business targets to be achieved over the course of the next three years are as follows:

    • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
    • To balance the initial cost of the startup with earned profits by the end of the first year

    4.4 Product Pricing

    The people of Oakland have mostly high incomes, so we haven’t priced our items low. Instead, we provide the best material, unique and latest designs for our shop to business more.

    Strategy and Implementation Summary

    After identifying the market trends, market demands, and the potential customers of the startup, the next step is to define an effective strategy to attract the potential customers. Like marketing analysis, sales strategy is also an important component of a  bridal shop business plan    and must be properly developed before thinking about how to open bridal shop.

    5.1 Competitive Analysis

    Our biggest competitive advantage will be the quality and design of our fashionable products. Our products will be unique, attractive, eye-catching and will be according to the newest fashion. Some of our designs are totally new to the market and can’t be found somewhere else. In addition to that, our second biggest competitive advantage will be our exceptional customer service. As with the customized products, we will make revisions until our customers are fully satisfied. Our location is also one of our biggest competitive advantages since we will be based in a rich and populous area. Another important aspect is that no bridal shop near us is offering such suitable accessories and sewing, repairing and resizing services. Lastly, we’ll have a perfect display with large mirrors strategically placed, and perfect interior setting with a soft music to attract the customers and make them feel at ease.

    5.2 Sales Strategy

    After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

    • We will introduce our new designs and will create a forum on our website for getting new ideas
    • We will advertise our shop in relevant business magazines, newspapers, TV stations, and social media.
    • We will also take online reservation orders and payments and also online shopping in website.
    • We will offer a 5% discount on our products for the first 15 days of our launch.

    5.3 Sales Monthly

    Bridal Shop Business Plan - Sales Monthly

    5.4 Sales Yearly

    Bridal Shop Business Plan - Sales Yearly

    5.5 Sales Forecast

    Bridal Shop Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Bridal Dresses 1,887,030 2,680,320 2,588,240
    Party Dresses 802,370 815,430 823,540
    Accessories 539,320 770230 1,002,310
    Repairing & Resizing 265,450 322,390 393,320
    TOTAL UNIT SALES 3,494,170 4,588,370 4,807,410
    Unit Prices Year 1 Year 2 Year 3
    Bridal Dresses $140.00 $150.00 $160.00
    Party Dresses $600.00 $800.00 $1,000.00
    Accessories $700.00 $800.00 $900.00
    Repairing & Resizing $650.00 $750.00 $850.00
    Sales
    Bridal Dresses $2,149,800 $2,784,000 $3,383,200
    Party Dresses $120,050 $194,500 $268,500
    Accessories $50,110 $71,600 $93,000
    Repairing & Resizing $139,350 $194,600 $249,850
    TOTAL SALES
    Direct Unit Costs Year 1 Year 2 Year 3
    Bridal Dresses $0.70 $0.80 $0.90
    Party Dresses $0.40 $0.45 $0.50
    Accessories $0.30 $0.35 $0.40
    Repairing & Resizing $3.00 $3.50 $4.00
    Direct Cost of Sales
    Bridal Dresses $989,300 $1,839,000 $2,679,700
    Party Dresses $66,600 $119,900 $173,200
    Accessories $17,900 $35,000 $52,100
    Repairing & Resizing $19,400 $67,600 $115,800
    Subtotal Direct Cost of Sales $1,294,100 $1,699,400 $2,104,700

    Web Plan Summary

    If you are starting a bridal business, you must not ignore the importance of web plan summary in your business plan. To take a lead over your competitors, you must add a feature of online marketing in your business plan.

    People usually hesitate to go to an entirely new shop, so making a website and presenting your unique designs on your website will benefit you a lot. As people can learn about you and your products from the website.

    6.1 Web Development Requirements

    You should develop a user-friendly and comprehensive website keeping in mind that the content of your web page will make the people decide whether they have to visit your shop or not. The web page of Angelic Bridal Shop will present store description, a map to the store, contact information, a photo gallery of some of our products, and a facility of booking an order by online payment.

    Personnel plan

    Personnel plan decides how much cost will be incurred on the staff of your business, so it is essential to add it in your bridal boutique business plan. The personnel plan of our shop is as follows.

    7.1 Company Staff

    Clara will act as the General Manager of the company and will initially hire the following people:

    • 1 Accountant for maintaining financial and other records
    • 4 Designers for designing dresses
    • 8 Sewing Artists for manufacturing, repairing and resizing dresses
    • 3 Assistants for helping with day-to-day operations
    • 1 Technical Assistant for managing the company’s official website and social media pages
    • 4 Customer Representatives to interact with customers and record their orders

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Accountants $85,000 $95,000 $105,000
    Designer $45,000 $50,000 $55,000
    Sewing Artists $550,000 $650,000 $750,000
    Assistants $410,000 $440,000 $480,000
    Technical Assistant $152,000 $159,000 $166,000
    Customer Representative $145,000 $152,000 $159,000
    Total Salaries $562,000 $599,000 $646,000

    Financial Plan

    You must add a detailed financial plan to your business plan covering all the expenses and include a business plan for investors. The financial plan should also craft a detailed map about the payroll, cost of inventory and furniture, rent, cost of the fabric you’ll need to buy and the cost you will need to decor the shop. It is recommended that you hire a financial expert for guiding you how to start a bridal business and make a precise financial plan so that you can cover the costs by the earned profits.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

     

    8.2 Brake-even Analysis

    Bridal Shop Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    Monthly Revenue Break-even $159,740
    Assumptions:
    Average Per-Unit Revenue $260.87
    Average Per-Unit Variable Cost $0.89
    Estimated Monthly Fixed Cost $196,410

     

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $309,069 $385,934 $462,799
    Direct Cost of Sales $15,100 $19,153 $23,206
    Other $0 $0 $0
    TOTAL COST OF SALES $15,100 $19,153 $23,206
    Gross Margin $293,969 $366,781 $439,593
    Gross Margin % 94.98% 94.72% 94.46%
    Expenses
    Payroll $138,036 $162,898 $187,760
    Sales and Marketing and Other Expenses $1,850 $2,000 $2,150
    Depreciation $2,070 $2,070 $2,070
    Leased Equipment $0 $0 $0
    Utilities $4,000 $4,250 $4,500
    Insurance $1,800 $1,800 $1,800
    Rent $6,500 $7,000 $7,500
    Payroll Taxes $34,510 $40,726 $46,942
    Other $0 $0 $0
    Total Operating Expenses $188,766 $220,744 $252,722
    Profit Before Interest and Taxes $105,205 $146,040 $186,875
    EBITDA $107,275 $148,110 $188,945
    Interest Expense $0 $0 $0
    Taxes Incurred $26,838 $37,315 $47,792
    Net Profit $78,367 $108,725 $139,083
    Net Profit/Sales 30.00% 39.32% 48.64%

    8.3.1 Profit Monthly

    Bridal Shop Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Bridal Shop Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Bridal Shop Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Bridal Shop Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Bridal Shop Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $40,124 $45,046 $50,068
    Cash from Receivables $7,023 $8,610 $9,297
    SUBTOTAL CASH FROM OPERATIONS $47,143 $53,651 $59,359
    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 $47,143 $53,651 $55,359
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $21,647 $24,204 $26,951
    Bill Payments $13,539 $15,385 $170,631
    SUBTOTAL SPENT ON OPERATIONS $35,296 $39,549 $43,582
    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 $35,296 $35,489 $43,882
    Net Cash Flow $11,551 $13,167 $15,683
    Cash Balance $21,823 $22,381 $28,239

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $184,666 $218,525 $252,384
    Accounts Receivable $12,613 $14,493 $16,373
    Inventory $2,980 $3,450 $3,920
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $201,259 $237,468 $273,677
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $12,420 $14,490 $16,560
    TOTAL LONG-TERM ASSETS $980 $610 $240
    TOTAL ASSETS $198,839 $232,978 $267,117
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $9,482 $10,792 $12,102
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $9,482 $10,792 $12,102
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $9,482 $10,792 $12,102
    Paid-in Capital $30,000 $30,000 $30,000
    Retained Earnings $48,651 $72,636 $96,621
    Earnings $100,709 $119,555 $138,401
    TOTAL CAPITAL $189,360 $222,190 $255,020
    TOTAL LIABILITIES AND CAPITAL $198,839 $232,978 $267,117
    Net Worth $182,060 $226,240 $270,420

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets 4.35% 4.71% 5.80%  9.80%
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $120,943 $140,664 $160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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