The children’s apparel industry is no child’s play because the U.S. market is already generating over $11 billion dollars in annual revenues. Globally, the industry is expected to reach close to $173 billion by 2017. These impressive numbers get the attention of entrepreneurs interested in developing a girls’ fashion line business plan because consumers are expected to continue buying at a faster rate than ever before.
High End, Low End, or Somewhere in the Middle Fashion?
There are many options for capturing a market segment. Entrepreneurs in this industry include a range of people from the home fashion designer to the franchise owner. One of the first important decisions to make is deciding the price range of the brand. Price, quality, and style must be carefully balanced because of the intense competition from brick-and-mortar and online retail stores.
One of the most critical aspects of starting a girls’ apparel business is knowing how the new business fits in the industry. Following are some points to keep in mind to develop a business plan that will guide decision-making:
• Conduct a strategic industry analysis to understand where there are gaps in meeting consumer needs and how the new children’s designs fit in the industry
• Identify what differentiates the clothing line from the competition, especially large retailers like Gymboree, Babies “R” Us, Walmart, Target, etc. which sell inexpensive children’s clothing
• Determine if there is a market need for the new clothing brand, i.e. handmade top quality fashion, play or sports clothing, school clothes, etc.
• Develop strategies to reach the target market through marketing, advertising, and trade shows
• Research the consumer price resistance to determine ideal product pricing
• Identify the source of materials and production details
• Do a thorough financial analysis, prepare pro-forma financial statements, and calculate the amount of funding needed for startup and the first months or year until profitability
Many children’s clothing brands started with someone designing and sewing clothes at home on the side and then deciding to start a business. Though the entrepreneur has experience producing the clothing collection on a small scale, starting a formal business is entirely different than selling fashion as a hobby.
Pay Attention to the Details
It is important to develop a formal and complete girls’ fashion business plan because it forces the business owner to think through the critical elements of starting and operating a business. The business plan includes descriptions of competitors, market demographics, staffing plan, operating plans, pricing, risks and opportunities, and much more.
OGS Capital offers a breadth and depth of experience in business plan writing that is only possible because its professional team has experience across a wide range of industries. Entrepreneurs needing a high quality business plan can send contact information by completing the short online form.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.