Do you want to start sewing business plan?
Do you want to start a sewing business? Well, the sewing business can be a profitable and enjoyable business for anyone interested in inventing new fashions and designs. Almost everybody wants to dress up in his/her best as it generates in one a confidence and boasts ones’ spirits by creating a sensation that you are something.
Although the business has wide scope but you have to plan many things before taking a startup as you will not be working individually. So, the first step before starting a home sewing business is to make a detailed business plan for your startup. If you are having trouble while writing your business plan, you can take help from this sample business plan written for a sewing business startup named, ‘Naomi Sewing Center.’
2.1 The Business
Naomi Sewing Center will be located in Manhattan, the most populous borough of the New York City, housing about 1.6 million people. The business will be based on tailoring or stitching clothes, designing latest patterns as desired by the customers, doing embroidery and inventing modish fashions for the people. Naomi Sewing Center will provide an excellent service and guide the customers about what suits them the best to provide them the product that mark the highest level of satisfaction and comfort for them. We’ll also sell some ready-made dresses and provide the facility of purchasing online products to the residents of nearby boroughs.
The core of every business is its management system, the success of your business varies with your ability to monitor it, thus, to be precise you should include in your sewing business plan the details about what steps you will have to take to operate your business effectively.
Naomi Winslet will be the owner and manager of the business, to execute her sewing business ideas, Naomi will hire a group of professional sewers, purchase sewing machines, and appoint a section of her large apartment to create the environment of work. There will be an organized and separate section for the customers to book their orders, they will provide with the new design samples and will be thoroughly guided by our professional fashion designer that which fashion will suits them the best.
If you are looking for how to start a sewing business, you should first think that for whom you are providing your services. Knowing your customers in the only thing that one can do to understand their needs and demands. The primary customers of our sewing center will mostly be ladies, men and cloth merchants living in Manhattan. Basically, we’ll be serving only in Manhattan but later, we’ll widen our business scales to the other boroughs of New York City too.
2.4 Target of the Company
The company aims to provide unique, modern, and high-class stitching service to the residents of Manhattan, and to become the most renowned stitching center of our borough within the next two years of the launch.
3.1 Company Owner
Naomi Winslet will be the owner of the company. Naomi has an education in Fashion Design and Merchandising from Missouri State University. Besides, Naomi has seven years of experience of designing clothes and inventing newer fashions, she also has been teaching and schooling her skills for the last two years.
3.2 Why the Business is being started
Due to the prior experience of Naomi, her interest towards the fashion designing and the enthusiasm of her apprentices to work tirelessly with her, have compelled her to think about starting a sewing business. She is basically going to start home sewing business, to widen the scale of her servings and to find more and more opportunities in this field while working in her own apartment.
3.3 How the Business will be started
Naomi has decided to convert a section of her house in a comfortable working area for the fashion designer and professional sewers to work on sewing machines. Naomi will hire the sewers she had been tutoring for stitching, yet she’ll also require some extra co-workers and a co-manager for running the business smoothly.
Naomi has planned everything about her business and she has hired an expert to map her thoughts and goals in an organized way by making a business plan which is given here for your help. The startup requirements are given below.
The detailed startup requirements are as follows:
|Research and Development||$32,750|
|TOTAL START-UP EXPENSES||$187,300|
|Other Current Assets||$232,500|
|Start-up Expenses to Fund||$11,875|
|Start-up Assets to Fund||$15,000|
|TOTAL FUNDING REQUIRED||$0|
|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|
|Liabilities and Capital||$0|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$695,000|
|Loss at Start-up (Start-up Expenses)||$313,125|
|TOTAL CAPITAL AND LIABILITIES||$251,875|
Services for customers
Before thinking about how to start a small sewing business, you should think about the type of services you want to provide your customers. To start a sewing business you are required to provide the basic stitching services, yet to take a lead upon all your competitors, you are required to provide some additional and unique services to your customers too.
Naomi has decided to provide the following services initially:
- Designing and Stitching Female & Male Attires: We will stitch traditional, non-traditional, fancy, simple daily use, modern and stylish dresses, frocks and coats for women with their desired embroidery or patterns. We will also design and stitch traditional or non-traditional shirts, pants, and coats for male customers also.
- Designing and Stitching Attires for Children: We will also stitch fancy and simple cloths and coats for the children.
- Mending Stitched Clothes: We will repair any type of defect in your stitched cloth such as fitting defects or if your dress is ripped or any other case by attaching a patch, doing embroidery or by adopting any other method.
- Selling Ready-Made Dresses Online: Besides stitching the given cloths, we’ll also sell some ready-made clothes by displaying them on our site providing the facility of making an online purchase to our customers.
Marketing Analysis of Sewing Business
Marketing analysis is one of the most important deciding factors that can contribute towards the success of your startup. In your business plan for sewing company, you should add a detailed analysis of the market in which you are going to start your business. It is really important to know the market trends and latest market demands to make a precise sewing business plan template.
Marketing analysis also helps you in deciding the steps you will have to take to advertise your business and make a contact to your target customer groups. Considering the importance of marketing analysis in a business plan, Naomi had hired the services of a professional expert to do an accurate marketing analysis and make a business plan for home sewing business template for her business.
You can also take help from this business plan for home sewing business if you are looking for how to start sewing business, but if you are starting your business at a large scale then instead of taking help from this sewing business plan sample you must consult a professional, or take assistance from business plan for sewing factory.
5.1 Market Trends
Before starting any business, it is really important to know the market trends, and practices, and an assessment of whether the market in which you are going to initiate your business has the potential of a new startup or not.
The most important aspect of this business is that it is a dynamic and one of those businesses which keep blooming throughout the year changing and adapting newest fashions no matter what season it is. According to IBISWorld, there are currently 18,979 cut and sewing businesses running in the United States generating a revenue of $2 billion annually. The number of these businesses is high in the market yet the demand for new startups is also high, IBISWorld has reported a 0.4% growth rate for the sewing business. The business is also responsible for employing more than 42 thousand people of the United States.
All these statistics show that you can also generate a profit which is multiple times than that which you had invested, provided that you market your business properly and effectively.
5.2 Marketing Segmentation
It is crucial to analyze your target market by dividing them into separate groups, to thoroughly understand their requirements and demands. In this business plan sample for sewing business, we have provided the marketing plan of Naomi Sewing Center. You can easily download sewing business plan pdf from our website, but if you are starting at an industrial scale, then it is advisable to hire the services of a marketing analyst to make a plan according to your dimensions. Our target markets are as follows:
The detailed marketing segmentation of our target audience is as follows.
It is a dream of every woman to take a lead upon all others in the race of empowerment, fashion and personal aesthetics, that came from the colors, prints, and designs they wear. Our expert has identified the female community of Manhattan and nearby boroughs as our potential customers. These women will surely consume our services and contribute a substantial portion of our sales to make a unique and most suited attire for them that lightens their beauty and sartorial confidence. We’ll also stitch dresses and coats for the male residents of our society as well as children.
This group of our target customers will also avail our services of resolving the issue regarding their stitched clothes.
5.2.2 Departmental Stores
Our next target customers will be the owners and managers of departmental stores who are expected to give us orders of stitching clothes in large numbers. We will offer special discounts to them as working with them on the same sizes and designs will be easy for us. Our workforce doesn’t allow us to take very large orders, however, we can entertain their needs, on smaller levels.
5.2.3 Online Purchasers
As we will be providing free home delivery for our ready-made products in the nearby boroughs so our third category will comprise of the online purchasers who will be briefed about our stitched clothes on our website before giving order to us.
The detailed market analysis of our potential customers is given in the following table:
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
We aim at becoming the best stitching center in our borough and the most renowned in our nearby areas. Our target to be achieved within the 12 months of our launch is to balance our startup costs and investments with the profit earned and to achieve the net profit margin of $25k per month by the end of the first year. Our long-term goal to be achieved after the 10 years of our launch is to enlarge our business and widen the ranges of our home deliveries.
5.4 Product Pricing
Naomi has earned a large fame over the past few years, she had never compromised on the work quality, that’s why she hasn’t priced her services low, rather her prices are a bit higher than her competitors, as the business is located in an area where people have usually higher incomes who don’t mind spending cash on their desired things and services, so Naomi believe that she and her business can still survive in the market even with higher rates.
To avail all the sewing business opportunities and to be successful in your domain, you must have an excellent sales strategy to introduce your services to your target groups. Here we are providing sample business plan in sewing domain to help you in deciding your sales strategy.
6.1 Competitive Analysis
Our biggest competitive advantage is our locality, we are located in an area where people don’t compromise their dollars upon the service they trust and rely. Our second biggest competitive advantage lies in the power of our employees, the value which we will be giving to our customers can be estimated by the fact that we have employed a fashion designer as a co-manager of Naomi, just to guide the customers about what fashion and trend will suit them the best. Lastly, we will be displaying our ready-made products on our website for those who want to make an online purchase, we will also create a feedback section so that the new customers can read the previews of the previous ones.
6.2 Sales Strategy
Our experts have come up with the following ideas to advertise and sell ourselves.
- We will advertise our services through print and social media and through our website
- We will allow our customers to buy our products online with free home delivery
- We will initially offer discounts on our services to encourage sales
6.3 Sales Forecast
Considering our innovative ideas and the quality of our services, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.
The detailed information about sales forecast, total unit sales, total sales is given in the following table:
|Unit Sales||Year 1||Year 2||Year 3|
|Female & Male Attires||1,887,030||2,680,320||2,588,240|
|Mending Stitched Clothes||539,320||770230||1,002,310|
|TOTAL UNIT SALES||3,494,170||4,588,370||4,807,410|
|Unit Prices||Year 1||Year 2||Year 3|
|Female & Male Attires||$140.00||$150.00||$160.00|
|Mending Stitched Clothes||$700.00||$800.00||$900.00|
|Female & Male Attires||$2,149,800||$2,784,000||$3,383,200|
|Mending Stitched Clothes||$50,110||$71,600||$93,000|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Female & Male Attires||$0.70||$0.80||$0.90|
|Mending Stitched Clothes||$0.30||$0.35||$0.40|
|Direct Cost of Sales|
|Female & Male Attires||$989,300||$1,839,000||$2,679,700|
|Mending Stitched Clothes||$17,900||$35,000||$52,100|
|Subtotal Direct Cost of Sales||$1,294,100||$1,699,400||$2,104,700|
6.4 Sales Monthly
6.5 Sales Yearly
Your workforce will decide whether you will be able to run your business successfully or not. So, in your tailoring business plan sample, you must create a list of the staff required to run your business as well as their jobs descriptions. In case you are having difficulty with making your knitting sewing service business plan, you can take help from this sample business plan of Naomi Stitching Center.
7.1 Company Staff
Naomi will be the owner and manager herself, yet she’ll hire the following people.
- 1 Assistant Manager to assist in managing operations
- 10 Professional Sewers for stitching and repairing clothes
- 2 Accountants to maintain financial records
- 1 Fashion Designer for working on new ideas and for guiding customers
- 4 General Workers for keeping the display and records of customers
- 2 Drivers for providing home delivery to the online purchasers
- 1 Front Desk Officer to act as receptionist
- 1 IT Expert to manage the company’s website
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Front Desk Officer||$187,000||$194,000||$201,000|
The final step you’ll have to take if you are starting a sewing business is to make a financial plan to determine the cost to run a sewing business. Your financial plan should cover the details about sewing business profit that you can earn and the details about how will you manage your startup costs, the salaries of your employees besides achieving your major financial goals.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||11.00%||12.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
8.2 Brake-even Analysis
|Monthly Units Break-even||5530|
|Monthly Revenue Break-even||$159,740|
|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|
|Direct Cost of Sales||$15,100||$19,153||$23,206|
|TOTAL COST OF SALES||$15,100||$19,153||$23,206|
|Gross Margin %||94.98%||94.72%||94.46%|
|Sales and Marketing and Other Expenses||$1,850||$2,000||$2,150|
|Total Operating Expenses||$188,766||$220,744||$252,722|
|Profit Before Interest and Taxes||$105,205||$146,040||$186,875|
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 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|
|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|
|SUBTOTAL CASH SPENT||$35,296||$35,489||$43,882|
|Net Cash Flow||$11,551||$13,167||$15,683|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$201,259||$237,468||$273,677|
|TOTAL LONG-TERM ASSETS||$980||$610||$240|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$9,482||$10,792||$12,102|
|TOTAL LIABILITIES AND CAPITAL||$198,839||$232,978||$267,117|
8.6 Business Ratios
|Year 1||Year 2||Year 3||Industry Profile|
|Percent of Total Assets||4.35%||4.71%||5.80%||9.80%|
|Other Current Assets||1.75%||2.02%||2.29%||27.40%|
|Total Current Assets||138.53%||150.99%||163.45%||54.60%|
|Percent of Sales|
|Selling, General & Administrative Expenses||74.29%||71.83%||69.37%||65.20%|
|Profit Before Interest and Taxes||26.47%||29.30%||32.13%||2.86%|
|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.|
|Accounts Receivable Turnover||4.56||4.56||4.56||N.A.|
|Accounts Payable Turnover||14.17||14.67||15.17||N.A.|
|Total Asset Turnover||1.84||1.55||1.26||N.A.|
|Debt to Net Worth||0||-0.02||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$120,943||$140,664||$160,385||N.A.|
|Assets to Sales||0.45||0.48||0.51||N.A.|
|Current Debt/Total Assets||4%||3%||2%||N.A.|
Illustrative business plan samples
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