Do you want to start streetwear brand business?

Executive Summary

Company Summary

Products

Marketing Analysis of Streetwear Brand Business

Strategy

Personnel plan

Financial Plan

Do you want to start streetwear brand business?

Are you going to launch your own streetwear clothing business? Streetwear clothing is one of the most profitable business niches you can invest in. The popularity of casual clothing which started in the 1990s hasn’t yet faded away, nor will it decrease in the decades to come.

The increasing demand for casual clothing such as jeans, sneakers, and punk shirts make this business extremely profitable, but to make your venture a success, you will have to meticulously plan each and everything before launching it.

You can only do that by creating a well-thought-out <strong>streetwear brand business plan<strong>. To help you with it, we are providing below a sample business plan of a streetwear clothing startup, ‘Punk Wear’.

Executive Summary

If you are looking to start a streetwear brand, this <strong>streetwear business plan sample <strong> will help you in the startup, besides also helping you make your own <strong>streetwear business plan<strong>.

2.1 The Business

Punk Wear will be an Orlando-based clothing line, which will initially comprise of a display center and a production facility. The display center, which will also be the company headquarters, will be started in a 2000 square feet shop in downtown Orlando.

2.2 Management

Punk Wear will be started by Jackie Kit, a serial entrepreneur from Orlando, who will hire an extensive team of employees including production workers, store assistants, accountants, etc., to make his venture a success. Being a serial entrepreneur, Jackie knows <strong>how to start a streetwear brand<strong> and make it a success.

2.3 Customers

Punk Wear will be a one-stop shop for all streetwear clothing and will provide an assortment of products ranging from casual shirts, to punk jeans, to sneakers. We will provide our high-quality products to the local residential community as well as departmental stores, and our customers will also be able to make a purchase through our online store.

2.4 Target of the Company

Our target is to become the best streetwear company in Orlando by the end of the next two years, and achieve the following profit margin targets for the next three years.

Streetwear Brand Business Plan 1

Company Summary

3.1 Company Owner

The company will be started by Jackie Kit, a serial entrepreneur from Orlando, Florida, who moved to the US two decades ago to pursue his degree in entrepreneurship from MIT. After completing his Masters, he went on to start a series of successful ventures.

Starting from an e-commerce store, Jackie moved on to launch a book shop and a vintage musical store. All the three ventures have been a great success and Jackie now looks forward to moving to an even bigger initiative. Due to his extensive business experience spanning decades, Jackie knows <strong>how to start a streetwear brand<strong> and make it a success.

3.2 Why the Business is being started

Being a serial entrepreneur, <strong>starting a streetwear brand<strong> business is the next stop for Jackie. Starting this business is undoubtedly the best way for him to invest what he has made from his previous ventures. It is also a good use of his vast knowledge and experience.

3.3 How the Business will be started

A well-thought-out business plan will go a long way in helping you <strong>how to start streetwear brand<strong>. That’s why Jackie made sure to prepare a comprehensive business plan detailing all aspects of his venture.

Punk Wear will be an Orlando-based clothing line. For startup, the company will procure a clothing production facility as well as a display center. Jackie plans to purchase an existing production facility located on the outskirts of the city and make necessary changes to it.

The display center, which will also serve as company headquarters, will be located in downtown so that it attracts as many customers as possible. A 2000 square feet shop has been procured on lease to serve as Punk Wear display center. The startup requirements summary is given below.

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The detailed startup requirements are as follows:

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$220 875
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
START-UP FUNDING$273 125
Start-up Expenses to Fund$151 875
Start-up Assets to Fund$123 000
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$373 125
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$620 125
Planned Investment$620 125
Investor 1$0
Investor 2$0
Other$0
Additional Investment Requirement$0
TOTAL PLANNED INVESTMENT$620 125
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 thinking about how to start your own streetwear brand, one should plan in detail all the services that will be provided to customers. It helps to plan the other components of the startup.

Punk Wear will be a one-stop shop for all streetwear clothing and will provide an assortment of products ranging from casual shirts, to punk jeans, to sneakers. Only the apparels will be manufactured by the company under the brand name of ‘Punk Wear’.

Besides clothing, all other products will belong to famous brands. These products will be offered to encourage sales and provide a one-stop service to customers. Our products include but are not limited to:

  • Men’s streetwear: Jumpers, Hoodies, Jeans, Pants, Shirts, Shorts, Singlets, Tees, Backpack, Bag, Button Ups, Footwear, Headwear, Jackets, Watches
  • Women’s streetwear: Jumpers, Hoodies, Jeans, Leggings, Pants, Shirts, Shorts, Singlets, Tees, Backpack, Bag, Button Ups, Footwear, Headwear, Jackets, Watches
  • Kids’ streetwear: Jeans, Footwear, Headwear, Jackets, Jumpers & Hoodies, Shorts, Tees
  • Gifts and accessories

Marketing Analysis of Streetwear Brand Business

Marketing analysis is one of the most important components of your business plan as it helps you develop an effective streetwear brand marketing  strategy needed to target and attract customers. You can get help from this  streetwear business plan template to carry out a marketing analysis before starting your venture. You can also take to the internet to get streetwear clothing brand name ideas as well as other related information.

5.1 Market Trends

Streetwear clothing is in great demand due to their casual nature and relatively lower prices as compared to other types of clothing. Ever since they started in the 1990s, the popularity of streetwear clothing such as jeans and casual shirts have been increasing. The market for this business niche will continue to increase over the course of the next few decades.

5.2 Marketing Segmentation

It is very important for you to analyze your target audience so that you can develop effective marketing strategies to attract them to you. The marketing segmentation of our potential customers is as follows.

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5.2.1 Residential Community: Our first target group will be the local community residing in the vicinity of our display center in Orlando. Punk Wear will provide best-in-class streetwear to men, women, and kids from the residential community.

5.2.2 Departmental Stores: We will also supply our branded clothes to the departmental stores located across Orlando as well as a handful of nearby stores. As our business grows with time, we will increase the number of departmental stores to whom we will supply our streetwear.

5.2.3 Online Purchasers: Customers located across the US will also be able to purchase our products through our online store.

The detailed market analysis of our potential customers is given in the following table.

Market Analysis
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Residential Community32%11 43313 34416 55318 74520 54513,43%
Online Purchases48%22 33432 34443 66552 54466 43210,00%
Departmental Stores20%12 86714 43315 99917 56519 13115,32%
Total100%46 63460 12176 21788 854106 1089,54%

Strategy

After you have conducted a marketing analysis to know who your target audience is, the next step is to create an innovative sales strategy to convert your audience into your costumers. You can download this streetwear business plan pdf to get help with your sales strategy or you can also search the internet for new ideas. Sales strategy is an important component of a streetwear business plan so make sure to plan it carefully.

6.1 Competitive Analysis

Our biggest competitive advantage will be our location, which is almost ideal for opening a streetwear store. The residential community located near us will help us a lot in kickstarting our venture. Our clothing line will be relatively cheaper than other similar products but still, they will be of the highest quality possible. It will be another competitive advantage for us. Finally, we will provide exceptional customer service to convert our visitors into loyal customers.

6.2 Sales Strategy

Our experts have come up with the following strategies to advertise and sell our products.

  • We will advertise our products through print as well as social media
  • We will allow our customers to buy our products online with an easy-to-use online store
  • We will offer gift hampers and attractive discounts on our products to encourage sales
  • We will provide special discounts on customer referrals

6.3 Sales Forecast

Considering the current market demand of our products and our sales strategy, our experts have forecasted following sales on a yearly basis which are summarized in the column charts.

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The detailed information about sales forecast, total unit sales, total sales is given in the following table.

Sales Forecast
Unit SalesYear 1Year 2Year 3
Men’s streetwear1 887 0302 680 3202 588 240
Women’s streetwear802 370815 430823 540
Kids’ streetwear539 3207702301 002 310
Gifts and accessories265 450322 390393 320
TOTAL UNIT SALES3 494 1704 588 3704 807 410
Unit PricesYear 1Year 2Year 3
Men’s streetwear$140,00$150,00$160,00
Women’s streetwear$600,00$800,00$1 000,00
Kids’ streetwear$700,00$800,00$900,00
Gifts and accessories$650,00$750,00$850,00
Sales
Men’s streetwear$2 149 800$2 784 000$3 383 200
Women’s streetwear$120 050$194 500$268 500
Kids’ streetwear$50 110$71 600$93 000
Gifts and accessories$139 350$194 600$249 850
TOTAL SALES
Direct Unit CostsYear 1Year 2Year 3
Men’s streetwear$0,70$0,80$0,90
Women’s streetwear$0,40$0,45$0,50
Kids’ streetwear$0,30$0,35$0,40
Gifts and accessories$3,00$3,50$4,00
Direct Cost of Sales
Men’s streetwear$989 300$1 839 000$2 679 700
Women’s streetwear$66 600$119 900$173 200
Kids’ streetwear$17 900$35 000$52 100
Gifts and accessories$19 400$67 600$115 800
Subtotal Direct Cost of Sales$1 294 100$1 699 400$2 104 700

6.4 Sales Monthly

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6.5 Sales Yearly

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Personnel plan

Before <strong>starting a streetwear company<strong>, you must create a list of the employees required to run your business as well as their job descriptions. It’s always better to hire your staff before launching your startup so that you can train them efficiently.

7.1 Company Staff

The following staff will be hired on a contract basis for the startup.

  • 1 Production Manager for managing the production facility
  • 10 Production Workers for operating the production plant
  • 2 Accountants to maintain financial records
  • 3 Fashion Designers for launching new ideas
  • 8 Assistants for operating display center
  • 2 Drivers for transportation purposes
  • 1 Front Desk Officer to act as receptionist
  • 1 IT Expert to manage the online store

7.2 Average Salary of Employees

The average salaries of employees are as follows.

 Personnel Plan
Year 1Year 2Year 3
Production Manager$50 000$55 000$60 000
Production Workers$445 000$450 000$455 000
Accountants$85 000$95 000$105 000
Fashion Designers$145 000$150 000$155 000
Assistants$350 000$355 000$360 000
Drivers$50 000$55 000$60 000
Front Desk Officer$42 000$45 000$48 000
IT Expert$50 000$55 000$60 000
Total Salaries$495 000$505 000$515 000

Financial Plan

The final step you will have to take before starting a streetwear business is to make a financial plan to determine all the costs involved in your startup. The costs include both the direct expenses such as the cost of inventory and indirect expenses such as the overhead costs.

Your financial plan should cover all the financial aspects of your startup so that you can easily manage your startup expenses and the salaries of your employees while also achieving your financial goals.

If you’re starting on a smaller scale, you can take help from various <strong>streetwear production business plans<strong> available online to make a financial plan for your business. Otherwise, you should seek financial experts to help you through this phase.

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

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 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

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8.3.2 Profit Yearly

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8.3.3 Gross Margin Monthly

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8.3.4 Gross Margin Yearly

Streetwear Brand Business Plan 21

 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 Assets
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.