Maternity clothing business plan for starting your own

Starting a maternity clothing business has its challenges but at the same time, it can also be a rewarding choice for your fashion brand. According to Grand View Research, the global maternity clothing market is projected to expand due to an increase in the number of pregnant women who are working as well. The demand is also expected to increase due to greater interest in maternity fashion.

To start a startup in this specific market, you need to conduct an extensive market analysis and formulate a maternity clothing business plan. As somebody new to the business, you could start by analyzing a business plan for retail clothing of an existing brand and understand what business model suits you the best. This would help you develop an impressive business plan for investors when you need funding for your start-up.

This business plan is set out for Southern Maternity Clothes and can address your concerns regarding how to start a maternity clothes business.

Executive Summary

2.1 The Business

Southern Maternity Clothing is a maternity clothing boutique style retailer of maternity and child clothing and accessories. Southern Maternity Clothing will offer its customers a wide range of executive maternity clothes to choose from. The flagship maternity clothes franchise is established by Maria Gilmore in Maryland. Southern Maternity Clothing is expected to quickly gain market share by offering a nice selection of upper-end merchandise with benchmarked customer service.

2.2 Management of maternity clothing business

While establishing a business clothing maternity start-up, it is essential to ensure that all aspects of the business are coherent. The much-needed cohesion in business operations can only be achieved by creating a business plan before time.

A maternity clothing business model is similar to a clothing store business plan. It is recommended to go through this business plan and a few more to get clarity on this business domain. In case you want to get a boutique franchise, you can visit the business plan for a franchise.

2.3 Customers of maternity clothing business

Southern Maternity Clothing refers to the following customer groups in Maryland:

• Expecting Mothers
• Friends & Families
• Retailers
• Thrift Stores

 

2.4 Business Target

Southern Maternity Clothing’s mission is to become the premier maternity boutique for the upscale expectant mother and her child. This will be accomplished by offering the newest fashions and the highest level of customer attention.

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Ownership

Maria Gilmore will be the owner of Southern Maternity Clothing. Maria has an undergraduate degree in Fashion Designing. After graduation, Maria went to work for Saks Fifth Avenue, an upscale retail chain. Maria was one of the leading buyers for the entire chain within four years, which provided her with unique insight into the retail industry. A key takeaway from her experience was that business of professional maternity clothes is a niche that is still untapped in the market.

3.2 Business History

After noticing a change in consumer trends amongst expecting mothers, Maria thought of starting a maternity clothing business of her own. Until recently, fashion-conscious women have been looking for an upscale boutique where they can get good-looking, chic clothing for themselves, fashionable clothes for toddlers, and a wide range of gifts and accessories. Hence, Maria decided to introduce her own business of formal maternity clothes line. 

3.3 How the maternity clothing business will be started 

Step1: Plan Everything

Provided that having a separate line of maternity clothes for business women is a relatively newer concept, it is quite natural for you to wonder about how to start a maternity clothes business. Therefore, it is recommended that you plan everything ahead of time and have contingency plans for all plausible business scenarios. 

Step2: Develop a Brand

Step3: Establish Your Corporate Office 

If your leadership style is like Maria’s, you will be more comfortable with direct supervision of your staff and store. Maria’s corporate office will be in Maryland’s City Centre, adjacent to the clothing store.

Step4: Establish a Web Presence

Provided that online shopping has become a norm, a clothing brand must have a presence in e-commerce. Having an online website will help the customers in purchasing from Southern Maternity Clothing. It is essential that the website has a user-friendly interface and features like accurate size charts and online customer support to assist the buyers.

Step5: Promote and Market

The last step is developing and executing a marketing plan to promote your services. To make your maternity clothing business successful, you must employ marketing strategies that will make your business objectives coherent. For example, if you use a business plan for a baby clothes store, you might have goals related to the number of articles you aim to sell in the following months.

Start-up Expenses
Legal	$136,400
Consultants	$0
Insurance	$26,600
Rent	$36,600
Research and Development	$10,000
Expensed Equipment	$53,600
Signs	$3,400
TOTAL START-UP EXPENSES	$266,600
Start-up Assets	$231,400
Cash Required	$236,000
Start-up Inventory	$39,000
Other Current Assets	$226,000
Long-term Assets	$287,000
TOTAL ASSETS	$1,019,400
Total Requirements	$1,286,000
START-UP FUNDING
Start-up Expenses to Fund	$266,600
Start-up Assets to Fund	$1,019,400
TOTAL FUNDING REQUIRED	$1,286,000
Assets
Non-cash Assets from Start-up	$1,289,800
Cash Requirements from Start-up	$136,000
Additional Cash Raised	$56,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,516,800
Liabilities and Capital
Liabilities	$16,200
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$53,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$69,200
Capital
Planned Investment	$1,286,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,286,000
Loss at Start-up (Start-up Expenses)	$161,600
TOTAL CAPITAL	$1,447,600
TOTAL CAPITAL AND LIABILITIES	$1,516,800
Total Funding	$1,286,000

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Services of Maternity Clothing Business

Starting a maternity clothing store can be daunting and confusing. If you are new to the clothing business and are unaware of the products to offer. In that case, you can refer to this maternity clothing business plan sample to get a hint of the services available at Southern Maternity Clothing.

• Maternity Clothes

Once you find yourself in need of bump-friendly clothing, you might realize just how frustrating the shopping process can be. As mentioned in this  maternity clothing online business plan, the customers of Southern Maternity Clothing have the option of purchasing clothes online or visiting the nearest franchise in Maryland. Furthermore, the team of fashion designers working with the firm offer creative maternity clothes ideas which help with customizing your dresses.

• Baby Clothes

All the mothers-to-be must plan and buy baby clothes before the little one arrives. Southern Maternity Clothes has a separate clothing line for babies that is as chic as the main maternity clothing line. 

• New Baby Gift Baskets

Gift Baskets will be a unique selling point of Southern Maternity Clothing. Customized gift baskets, including accessories that go with the maternity clothing line, add a personal touch and aid with building customer loyalty. 

In this maternity clothes business plan, we will explain how this service will grant us a competitive advantage as well. 

• Assorted Fancy Containers for Maternity Clothing

We also offer assorted fancy containers for a particular target market. Friends and family who gift maternity clothing to the expecting mothers around them have an option of getting them wrapped at our store to make it prettier and presentable. 

Marketing Analysis of Maternity Clothing Business 

At Southern Maternity Clothing, you will find every type of article, ranging from plus size maternity business clothes to maternity clothes business casual dresses. However, to ensure that the customers buy these products, you must conduct a thorough market analysis. This sample business plan for maternity clothes can help you understand the main aspects of market analysis.

5.1 Market Trends

Many maternity clothes are loose and stretchy (generally made of lycra or spandex material) to allow for a growing body. In the past, maternity wear was often used to hide the ‘baby bump’, but with growing ideas of gender equality and more working women, maternity wear is now a part of women’s fashion. According to Statista, in 2021, the U.S. maternity wear stores market was valued at approximately $941.3 million.

5.2 Marketing Segmentation

While thinking, “how do I start a maternity clothing business”, you must investigate your target audience. Market segmentation is a vital thing to do to meet your business objectives.

Business Plan for Investors

5.2.1 Expecting Mothers

Expecting mothers will be the main target customers of our business. Whether they are working mothers or stay-at-home moms, our maternity clothing store business plan will cater to all of them.

5.2.2 Friends & Family

Maternity and baby clothes are ideal gifts to give to an expecting mother. Our store should be your one-stop shop if you’re friends with somebody expecting as we cater to customized gifting needs.

5.2.3 Retailers

Our maternity clothing business plan will engage different retailers nationwide so that our products reach customers not only in Maryland but all across the U.S. 

5.2.4 Thrift Stores

Given that Southern Maternity Clothing aims to be an upscale business, it does not want to engage in unsustainable business practices. Thus, all the preloved maternity and baby clothes returned to us are sold in thrift stores. Owners of such stores will buy preloved clothes from our store and sell them after charging a standard commission fee. Our company employs a comprehensive thrift store business plan to effectively manage this service.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Expecting Mothers	32%	46,100	55,320	66,384	79,661	95,593	10.00%
Friends & Families	24%	36,100	43,320	51,984	62,381	74,857	10.00%
Retailers	23%	22,600	27,120	32,544	39,053	46,863	10.00%
Thrift Stores	21%	18,600	22,320	26,784	32,141	38,569	11.00%
Total	100%	123,400	148,080	177,696	213,235	255,882	10%

5.3 Business Target

• Capture 37% market share in Maryland after a year of operations.
• Open 2 franchises in Maryland in the next 3 years.
• Increase sales through retailers by 15%.
• Achieve a customer satisfaction score of 94%.

5.4 Product Pricing

To gain the needed customers for the first few months of our business and increase awareness, we intend to offer reduced prices for our clothing articles. The reduced prices will last three months, reduce our profit margin but won’t make us run at a loss.

Marketing Strategy of Maternity Clothing Business

Regardless of whether you are looking into maternity clothing franchise opportunities or a bridal store business plan, you need to have an effective marketing strategy. It would help you stand out amidst competition and capture market share. 

Southern Maternity Clothing will use a robust set of marketing and sales strategies mentioned in this maternity clothing shop business plan. Hence it would be helpful to read it thoroughly if you are thinking of working on your own business plan maternity clothing line.

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6.1 Competitive Analysis

• Maria Gilmore has vast experience in the fashion industry, and her strong leadership skills will help her gain an edge over competitors.
• Sustainable practices such as avoiding fast fashion and dealing with thrift stores can help set up a lucrative CSR policy.
• The introductory prices offered by the brand will be kept lower than the market rates without compromising on the quality of services.
• Our shop can be a one-stop-shop for both, shopping for mothers and babies, thus offering convenience to the customers.

6.2 Sales Strategy

• Ensure that Southern Maternity Clothing is enlisted on offline and online directories.
• Leverage social media platforms such as Facebook and Twitter to boost sales.
• Host a launching party in Maryland city center to draw attention and create awareness about the brand.
• Engage in direct marketing.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Maternity Clothes	5,250	5,565	5,899
Baby Clothes	4,500	4,770	5,056
New Baby Gift Baskets	3,550	3,763	3,989
Assorted Fancy Containers	2,500	2,650	2,809
TOTAL UNIT SALES	15,800	16,748	17,753
Unit Prices	Year 1	Year 2	Year 3
Maternity Clothes	$120.00	$139.20	$161.47
Baby Clothes	$130.00	$150.80	$174.93
New Baby Gift Baskets	$110.00	$127.60	$148.02
Assorted Fancy Containers	$60.00	$69.60	$80.74
Sales
Maternity Clothes	$630,000.00	$774,648.00	$952,507.18
Baby Clothes	$585,000.00	$719,316.00	$884,470.95
New Baby Gift Baskets	$390,500.00	$480,158.80	$590,403.26
Assorted Fancy Containers	$150,000.00	$184,440.00	$226,787.42
TOTAL SALES	$1,755,500.00	$2,158,562.80	$2,654,168.82
Direct Unit Costs	Year 1	Year 2	Year 3
Maternity Clothes	$40.00	$44.00	$46.20
Baby Clothes	$20.00	$22.00	$23.10
New Baby Gift Baskets	$30.00	$33.00	$34.65
Assorted Fancy Containers	$20.00	$22.00	$23.10
Direct Cost of Sales
Maternity Clothes	$210,000.00	$244,860.00	$272,529.18
Baby Clothes	$90,000.00	$104,940.00	$116,798.22
New Baby Gift Baskets	$106,500.00	$124,179.00	$138,211.23
Assorted Fancy Containers	$50,000.00	$58,300.00	$64,887.90
Subtotal Direct Cost of Sales	$456,500.00	$532,279.00	$592,426.53

Personnel plan of Maternity Clothing Business

The average cost of starting a maternity clothing business is similar to that mentioned in business plan for boutique shop. It is important to account for different kinds of costs to forecast financial returns accordingly. These costs include the salaried employees at the franchise.

7.1 Company Staff

This maternity clothing business plan for Southern Maternity Clothing outlines hiring for the following positions:

•  Manager
•  Sales and Marketing Manager
•  Fashion Designers
•  Store Manager
•  Sales Assistants
•  Web Developer

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$32,000	$35,200	$38,720
Sales Manager	$30,000	$33,000	$36,300
Graphic Designers	$52,000	$57,200	$62,920
Store Manager	$225,000	$247,500	$272,250
Sales Assistants	$44,500	$48,950	$53,845
Web Developer	$22,500	$24,750	$27,225
Total Salaries	$406,000	$446,600	$491,260

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Financial Plan of Maternity Clothing Business

In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, it would help analyze your yearly expenses to determine the possibilities of scaling the company. All of this information is an integral part of your maternity clothing business plan sample that will be presented to potential investors.

A detailed financial plan helps you achieve your monetary goals as it gives you a clear picture of your cash in-flows and outflows.

It is a good idea to conduct a marketing analysis beforehand to estimate how much the existing brands in the clothing market are currently making. This can be done by studying a maternity clothes business plan of your competitor.

Here we’re providing a financial plan used by our business for your help.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
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

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$1,755,500	$2,158,563	$2,654,169
Direct Cost of Sales	$456,500	$532,279	$592,427
Other	$0	$0	$0
TOTAL COST OF SALES	$456,500	$532,279	$592,427
Gross Margin	$1,299,000	$1,626,284	$2,061,742
Gross Margin %	74.00%	75.34%	77.68%
Expenses
Payroll	$406,000	$446,600	$491,260
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$585,200	$630,050	$685,160
Profit Before Interest and Taxes	$713,800	$996,234	$1,376,582
EBITDA	$713,800	$996,234	$1,376,582
Interest Expense	$0	$0	$0
Taxes Incurred	$142,760	$199,247	$275,316
Net Profit	$571,040	$796,987	$1,101,266
Net Profit/Sales	32.53%	36.92%	41.49%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

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8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
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	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
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	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

 

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

FAQ

• Is there a market for maternity clothes?

Yes, the market for maternity clothes is very vast. The global maternity wear market is expected to grow by USD 2.91 billion, at a CAGR of over 3% during 2021-2025. The growth of the maternity wear market was temporarily affected in 2020 due to the growing number of COVID-19 cases. While making your maternity clothing business plan, you must account for such ups and downs.

• How much do maternity clothes cost?

Fortune estimates that pregnant women, on average, spend almost $500 per pregnancy on maternity clothes. That breaks down to between $50 and $60 spent per month of pregnancy. Hence, while formulating the pricing strategy in your business plan maternity clothing line, you should look into the expenditure behavior patterns of your customers. 

• What is the segmentation for maternity clothes?

Opening a maternity store can be difficult if you don’t know who your target market is. Hence, looking into that beforehand is important. Usually, the market segments for maternity clothes comprise the following two categories: 

1. Expecting and just-delivered mothers. 
2. Family, friends, and co-workers of to-be moms.

However, this sample business plan for maternity clothes targeted four types of target audiences. 

• What can I sell in a maternity store? 

These specialty stores sell clothing, shoes, undergarments, and supplies, such as body care and breastfeeding gear, for pregnant women and new mothers. Owning a maternity boutique can be fulfilling and lucrative, and there are several things you can do to help ensure your business’s success.

Download Maternity Clothing Business Plan Sample in pdf