BUSINESS PLAN

Business Plan for opening up Men's Clothing Store in New Jersey

Executive Summary

New Jersey Sports Clothing is a new apparel store that will serve the local community for all their sportswear needs. As the name suggests, it will provide all sort of sportswear including clothing, belts, accessories, and shoes. Our unique preposition is to provide high quality products to the local community at the relatively lower prices. The local community which is most consist of sports enthusiast is undeserved and our store can exploit this opportunity to enter in to the market with favorable conditions and make good profits.

The US clothing stores industry includes about 100,000 stores with combined annual revenue of about $150 billion. Large companies include TJX Companies (TJ Maxx, Marshalls); Gap; Limited Brands; Ross; and Abercrombie & Fitch. The industry is concentrated: the 50 largest companies account for about 65 percent of industry revenue.

The required funding will be used in various operational tasks with the majority going to build up inventory for next three months. The debt to equity ratio is 2:1. Financial statements show us that we will be able to break even in the first year and subsequently will pay the whole debt back within three years. The funding is critical to our initial success and long term growth. In the future, we plan to expand our operations to capitalize more opportunities.

Business Plan

The business

'New Jersey Sports clothing' is organized as a sole proprietor under the law. We will be located in 12/B ABC Shopping Center New Jersey which is one of the epic centers of all sports enthusiast community belonging to diverse backgrounds. Store operation timings will Monday - Saturday 9 a.m. - 8 p.m. and Sunday 12 p.m. - 6 p.m. There will be extended special hours designated during special shopping seasons including Christmas. The store will specialize in all kinds of sportswear for men.

Startup Summary

'New Jersey Sports Clothing' incorporate costs are listed below. The store will initiate the operation with 3 months inventory on hand. This will include apparel and accessories. The composition of balance sheet will show us that the majority of assets will compose of inventory.

The purpose of this business plan is to secure a loan of $10,000. The loan amount along with the owner's equity of $5,000 will be utilized to buy inventory and administration machinery as well as for operational expenses for first sixth months. Further a supplier's credit line of $2,000 will also be used during periods of high demand. Using our prime location and high potential demand of sportswear in the community, we will build our base and conduct successful operations that will allow us to become self sufficient within one year and will start generating positive cash flows by the beginning of the first quarter of 2nd year.

Market Analysis

Retail Clothing industry in USA

Clothing, footwear, sportswear and accessories retailers in the US increased at a compounded annual growth rate (CAGR) of 4% between 2003 and 2008 ( The performance of the industry is forecast to decelerate, with an anticipated CAGR ...