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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
Angelic Bridal Shop will be a licensed wedding dress business plan 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 managers for running the bridal salon business plan.
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 bridal salon business plan targets to be achieved within the next three years are as follows:
Company Summary
2.1 Company Owner
Mrs. James is a well-known lady in fashion designing and bridal salon business plan 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 business plan, 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 lighting, the shop will be adorned with large mirrors and light background music. The startup expenses are as follows:
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:
- 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.
- 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.
- 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.
- 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
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Before opening a bridal boutique, you have to do an 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 bridal salon business plan 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 wedding dress 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 salon business plan 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:
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 bridal salon business plan 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 bridal salon business plan more.
Strategy and Implementation Summary
Business plan for investors
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 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 bridal salon business plan 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
5.4 Sales Yearly
5.5 Sales Forecast
| 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 wedding dress business plan. To take a lead over your competitors, you must add a feature of online marketing in your wedding dress 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
A personnel plan decides how much cost will be incurred on the staff of your bridal salon business plan, 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 wedding dress 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
| 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
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 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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Its a beautiful business plan and I believe the notes I have made after revising it will help me one day.
Its a beautiful business plan and I believe it will help me one day.