Fabric store business plan for starting your own business

Are you looking for how to start a fabric store online? A fabric store manufactures various types of fabrics. Depending on the business model, the fabric may be designed for indoor wear as well as for outdoor.

The business is profitable and has immense opportunities for research and improvement. However, to make sure that your startup yields the desired profit, it is required to make a detailed business plan, first.

To assist you in making one, we are providing sample business plan for a fabric store ‘Clara Fabrics’. If you are opening up a franchise then you must also read business plan for a franchise.

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Executive Summary

2.1 The Business

Clara Fabrics will be an online fabric store, however, for manufacturing operations, the business will be based in San Jose. Besides, the fabric that is used for making daily wearables and clothes, the business will manufacture fabric for house accessories such as curtains, table tops, bed sheets, and sportswear.

2.2 Management of fabric store

Without efficient management, your business is bound to doom no matter how much you invest. Therefore, you must thoroughly study how to start a textile company. Clara Fabrics will hire managers, technical assistants, and other staff in hierarchical positions to ensure the smooth working of the manufacturing and sales branch.

Before opening a fabric store, it is essential to devise a fabric store business plan to ensure that you manage each aspect of your business well. You are recommended to hire business plan consulting service for the purpose. To have a general idea of how to start a fabric store you can take help from this blog.

2.3 Customers of the fabric store

The following groups can be the potential customers of Clara Fabrics.

  • Individuals
  • Families
  • Textile Stores
  • Hotels & Motels

2.4 Business Target

Our business target is to establish a good name among all our competitors. Moreover, we aim to boost our sales every month while also maintaining a customer satisfaction score above 95. The financial targets are elaborated in the following graph.

Fabric Store Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owner

Clara Mike will be the owner of Clara Fabrics. Clara is a textile engineer. She is known for her excellent management skills and knowledge of innovations in the textile industry.

3.2 Why the fabric store is being started

Clara is starting a fabric store because of her exceptional ideas and research on designing super fine fabric. If she had opted for joining a company as an employee or even manager, she would not have been able to implement her ideas. Therefore she opted for opening a fabric shop herself.

3.3 How the fabric store will be started

Step1: Research and Plan

The first step is to do thorough research on how to start a fabric business. Following it, you’ll need to develop your business plan that covers all aspects from business goals to sales strategy. In case you don’t know how to open a fabric store you can take help from this fabric store business plan free of cost.

Step2: Set Targets

The next step is to set financial and non-financial business targets for your business. 

Step3: Recruit and Finance 

Following it, you must start recruiting the people you will need to run your business. Meanwhile, you will have to direct finances to each operation of your business.

Step4: Establish a Web Presence

Establishing a strong web presence is necessary even when you’re not operating online. It is because people today are more likely to search for your business on the web and read reviews before making a purchase.

Step5: Market

The last step is to market your business to reach your target audience and gain more and more customers.

Fabric Store Business Plan - Startup Cost

Services of fabric store

Before starting a textile business it is essential to specify the products you want to manufacture. It is because the business activities are diverse and your fabric store franchise can end up as a failure if you don’t know what you want to provide to your customers. In this fabric shop business plan we’re listing the services of Clara Fabrics. If you are opening a fabric store, you can take help from here.

  • Fabric for Dailywears

We’ll create and sell ultra-fine, lightweight, and durable fabric to be used for sewing daily wear clothes. The fabric will be designed for clothes for men, women as well as kids.

  • Fabric for Home Accessories

We will also manufacture fabric for making house accessories such as bed sheets, curtains, table covers, etc. 

  • Fabric for Sportswear

We’ll also manufacture resilient, washable, and durable nylon fabric that can be used for designing outdoor sportswear. 

  • Upholstery Fabric

We’ll also manufacture velvet, ticking, and demask to be used as furniture fabrics.

Marketing Analysis of fabric store

Marketing analysis deals with analyzing your standing in the market as well as your prospective customers. It is an essential task even while making business plans in cases where target customers are obvious such as business plan for a video game store or business plan for a liquor store.

It is important because based on this analysis you will have to change and adjust certain aspects of your business. For instance, if there are abundant businesses that provide fabric for daily wear clothing, you might choose to rather make fabric only for wedding wear or upholstery.

For this purpose, you can take data from the statistical department of your respective locality. The market trends observed in this business plan belong to the global U.S. market to give you a general idea.

5.1 Market Trends

Due to the everlasting demand for clothes and upholstery, textile design business has never-ending scope. According to IBISWorld, the current market size of textile trading business stands at $4bn in the U.S. More than 29k businesses are successfully running in the U.S. and due to the global market size, there is room for more.

5.2 Marketing Segmentation

Before starting a fabric store business, you must research on how to start a fabric store business. However, to carry on research in a more targeted way, you will first need to know your customers. 

In this textile business plan sample pdf we’re listing the market segmentation done by Clara Fabrics. As you make your textile business plan and search on how to start a textile business you should also dividing whole population into targeted customer segments.

Fabric Store Business Plan - Marketing Segmentation

5.2.1 Individuals

Men and women of all ages are expected to be our major customers. It is because many people prefer to directly buy unstitched fabric to get the costume designed as per their needs.

5.2.2 Families

The second category of our target customers will be families. They are expected to also procure from us the fabric that’s used in making upholstery covers and house accessories.

5.2.3 Textile Stores

The third category of our target customers comprises textile stores. They are expected to acquire all of our products in mass amounts.

5.2.4 Hotels & Motels

Last, hotels and motels will also purchase fabric from us for keeping up their rooms and furniture.

5.3 Business Target

It is important to include targets in your business plan whether it is for maternity clothing business plan or whole sale business plan

  • Maintaining a CSAT score of more than 92% from the first day of our launch
  • Start making fabric for wedding wear as well after 5 years of our launch

5.4 Product Pricing

The price of our fabric is a little higher than that of our competitors. However, still we expect to gain more customers due to our competitive benefits and the extraordinary quality of our fabric.

Marketing Strategy of fabric store

In this sample business plan for textile industry on how to start textile business, we’re providing the marketing strategy of Clara Fabrics. However, you may also study business plan for retail clothing for more advertisement ideas.

6.1 Competitive Analysis

  • Our fabric is super-fine and resilient. Clara’s research was declared top-tiered because of the newer type of fabric she successfully created.
  • Our web presence is very strong. We have hired expert SEO writers and graphic designers to design targeted ads.
  • Our topmost priority is our customers. Our policies designed to assist them in all cases will also enable us to get more customers.

6.2 Sales Strategy

You can see the sales strategy of Clara Fabrics in this fabric store business plan free of cost.

  • We’ll offer a 15% discount on all of our products for the first three months of the launch.
  • We’ll offer a 20% discount to retail stores after they purchase beyond a certain limit.
  • We’ll run social media campaigns to get known to a wider audience.
  • We’ll offer a 7% discount to all our customers who reside outside of the U.S.

6.3 Sales Monthly

Fabric Store Business Plan - Sales Monthly

6.4 Sales Yearly

Fabric Store Business Plan - Sales Yearly

6.5 Sales Forecast

Fabric Store Business Plan - Unit Sales

Personnel plan of fabric store 

While making your fabric store business plan it is essential to take down the list of employees you will be needing along with their job descriptions.

In this sample plan on how to start a fabric business we are providing the personnel plan of Clara Fabrics.

7.1 Company Staff

Clara will be the CEO herself. The employees she would hire are:

  • 1 Sales Manager
  • 1 Operations Manager
  • 2 Textile Engineers
  • 6 Technical Assistants
  • 1 Store Operator
  • 1 Accountant
  • 1 Web Developer 
  • 2 Cleaners

7.2 Average Salary of Employees

Financial Plan of fabric store

No business can survive without a detailed and accurate financial plan. What to talk of a fabric shop business for sale financial plan is even required in making business plan for farmers market. 

Businesses of the type of fabric store involve complex transactions due to the inter-mingling of operations between sales and manufacturing branches. It is thereby necessary to develop a detailed financial plan as given in this plan on how to make money selling fabric.

Clara hired a business consultation expert to develop a business plan for Clara Fabrics. If you’re stepping into this business, you too are recommended to do the same. It is because startup and investment are not the things to experiment with. If you are a newbie or if you do not have experience making financial plans, it is advised to hire professionals for it.

8.1 Important Assumptions

8.2 Break-even Analysis

Fabric Store Business Plan - Break-even Analysis
 Break-Even Analysis 
Monthly Units Break-even5340
Monthly Revenue Break-even$132,500
Average Per-Unit Revenue$231.00
Average Per-Unit Variable Cost$0.62
Estimated Monthly Fixed Cost$163,800

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

Fabric Store Business Plan - Profit Monthly

8.3.2 Profit Yearly

Fabric Store Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Fabric Store Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Fabric Store Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Fabric Store Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

All tables in PDF


  • How do I start a fabric business?

You can start fabric business by making a fabric shop business plan and executing it.

  • How do I market my fabric?

To market your fabric, you can use digital as well as print media. These days, social media platforms are one of the best forms to undertake this task. For elaborate ideas, you can visit the sales strategy of this sample business plan for a fabric store.

  • Is the fabric business profitable? 

Yes! It is immensely profitable provided that you plan and launch it successfully.

Download Fabric Store Business Plan Sample in pdf