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 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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Others32%11,43313,34416,55318,74520,54513.43%
Brides48%22,33432,34443,66552,54466,43210.00%
Flower Girls20%12,86714,43315,99917,56519,13115.32%
Total100%46,63460,12176,21788,854106,1089.54%

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.
  • 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 SalesYear 1Year 2Year 3
Bridal Dresses1,887,0302,680,3202,588,240
Party Dresses802,370815,430823,540
Accessories539,3207702301,002,310
Repairing & Resizing265,450322,390393,320
TOTAL UNIT SALES3,494,1704,588,3704,807,410
Unit PricesYear 1Year 2Year 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 CostsYear 1Year 2Year 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 1Year 2Year 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 investments. 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 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%
Other000

 

8.2 Brake-even Analysis

Bridal Shop Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
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 1Year 2Year 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/Sales30.00%39.32%48.64%

8.3.1 Profit Monthly

Bridal Shop Business Plan - Profit Monthly

8.3.2 Profit Yearly

Bridal Shop Business Plan 1

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 ReceivedYear 1Year 2Year 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
ExpendituresYear 1Year 2Year 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   
AssetsYear 1Year 2Year 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 CapitalYear 1Year 2Year 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 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets4.35%4.71%5.80% 9.80%
Accounts Receivable5.61%4.71%3.81%9.70%
Inventory1.85%1.82%1.79%9.80%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Current25.8629.3932.921.63
Quick25.428.8832.360.84
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.