DEL STORE

Business Plan: Del Store

Table of Content

DEL STORE1

MISSION STATEMENT1

OBJECTIVES2

IMPORTANT ASSUMPTIONS2

PRODUCTS2

PESTLE ANALYSIS3

Legal or the Political Aspects4

Economic Aspects5

Socio-cultural Sector5

Technological Aspects6

MANAGEMENT & OPERATIONS7

Management Team7

A.Organizational Structure8

B.Organisational chart9

C.Employee hiring plan9

Research & Development10

Physical Location10

Facilities11

External Opportunities11

WEAKNESSES CONCENTRATED PRODUCT PORTFOLIO11

MARKETING STRATEGY12

FINANCIAL STRENGTH12

ENHANCEMENT OF THEIR RELATIONSHIPS13

ACHIEVING OPERATIONS13

MARKETING MIX17

Product17

Price18

Place19

Promotion19

PARTICIPATIVE MANAGEMENT STYLE21

IMPROVING WORKING CONDITIONS22

CAREER DEVELOPMENT AND PROGRESSION22

MAKING LINE MANAGERS MORE ACCOUNTABLE FOR STAFF TURNOVER IN THEIR TEAMS23

ENCOURAGING STAFF INTRINSIC VALUES AND MAKING THE WORK ITSELF MORE CHALLENGING23

ASSUMPTIONS FOR THE FINANCIAL PLAN24

Financial Analysis & Projections26

Cash Flow Projections28

Balance Sheet Projections28

Income Statement Projections28

Ratio Analysis29

RISKS & ASSUMPTIONS29

Risk Analysis for Business29

Strategy for Risk Management29

FUNDING REQUEST & EXIT STRATEGY30

Amount & Type of Funds Requested30

Exit Plan31

Milestones31

REFERENCES33

APPENDICES35

Pro Forma Balance Sheet35

Pro Forma Income Statement37

Pro Forma Income Statement37

Pro Forma Income Statement37

Breakeven Analysis39

Ratio Analysis40

Business Plan: Del Store

Del Store

Del Store does not believe in two collections a year: spring and autumn. Conventional wisdom in the industry, which in the language of complexity is called an attractor, is that systems that are the fashion companies are stabilized around the idea of two collections a year. Del Store is the pioneers of a different attractor living collections designed, manufactured, distributed and sold almost as quickly the fickleness of customers change their tastes (Uhlenbruck 2000, p. 381).

Here's a new attractor. The fashion industry was in balance, no one moved, the rules were known, knowing that each season lasts three or four months; then there are four or six months of sales. Surely, no small proportion of the gross margin of conventional stores absorb the financial costs of storage, the special discounts to be practiced during the sales, and costs to destroy or sell the surplus to traders at markets . In turn, the prices that retailers pay to manufacturers necessarily have to include the high costs of storage of such waste. Customers were accustomed to this mode of operation: the latest fashion season is very expensive and has good quality fabric, but if the purchase is not urgent, there is near certainty of acquiring the same item during the sales with savings. The ground rules were accepted by buyers and sellers: the stock is purchased twice a year, designer clothes is always associated with tissue quality, consumers accept prices that imply very high gross margins (which does not mean necessarily very high gross margins for the reasons stated above).

Mission Statement

Our minds and your style!!!

Objectives

Del Store objectives for the first three years of operation include:

Growing one unit per year for the first three years of operation.

Keeping food cost under 35% of revenue.

Keeping employee labor cost between 16-18% of revenue.

Averaging sales in each location between 3-4 million dollars per year.

Maintaining tight controls on costs and operations by hiring a managing partner/proprietor for each location and utilizing automated computer/Internet control on all brands of clothing.

Important Assumptions

Payroll burden is calculated at 12.65% made up of 7.65% social security, 2% unemployment, and 3% worker's compensation. Payables are assumed to reach levels equal to one month's operating expenses. Long-term interest rates have been based on current loan rates.

Products

Some of the labels we will carry are ...