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Fashion Business Plan

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Finding a niche market in the fashion industry is not easy considering the intense competition that exists in every category and price range. The fashion business plan must emphasize the market need and niche market targeted, but it also has to clearly differentiate the brand. It is the brand image that will serve as the focus of marketing and is closely associated with the style and quality of clothing or fashion accessories. It is important to clearly understand the fashion sector to understand where the new brand fits within the industry. The goal of the business plan is to provide a path to success and to create investor confidence in the business. The fashion industry is considered to be a risky market to enter because of the competition. That risk is manageable as proven by the new businesses started every day. However, it is important to write a business plan that thoroughly explains risk mitigation strategies so potential investors achieve the right comfort level.

In the fashion business plan for startups, the following types of issues are addressed:

  • What creative brand has been developed and how will it differentiate the business from the established large competitors targeting the same market?

  • Will product or services or both be sold, and how and where will products be produced, i.e. commercially manufactured, handmade, private branding, etc.?

  • What suppliers will provide reliable sources of materials?

  • What venue will be used to sell products and services – brick-and-mortar retail establishment, through a website, or both?

  • Will the business supply retailers or wholesalers?

  • What types of online and offline marketing activities are planned – attending trade shows, local sales events, online marketing, through distributors, etc?

  • Who are the direct competitors and what will the fashion business offer that differentiates the business in the niche market?

  • Are sketches of products included in the business plan, and are they also in a form suitable for presenting to investors?

  • Does the industry and marketing research prove there is a room in the market for a new fashion business offering the products and services at the prices set?

  • What expertise and skills does the management team have that makes it more likely the business will succeed?


Content of the fashion business plan

Naturally, in addition to specific issues related to this particular type of business, the fashion business plan should include all the components investors expect to see. There must be an Executive Summary, Company Description, Marketing Plan, Operating Plan, Financial Plan and so on. Ultimately, the entrepreneur has to demonstrate to commercial or private lenders that the fashion business can compete against established market leaders and has a plan for ensuring continual progress towards profitability. For this reason, the Financial Plan concentrates on demonstrating that reliable cash flow is expected because lack of cash in a small fashion business can quickly lead to failure.

Consultants at OGS Professional have worked with many people ready to start fashion businesses and needing high quality business plans that address the unique challenges of the fashion industry. Completing the simple contact form will initiate the process of developing a thorough business plan that will attract desired lenders.


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