Mission Statement

ABCD is a cloth manufacturing and selling company in Iasi, which helps people in different
ages to find their suitable and desirable clothes. It is also possible to order the clothes in the
clients size and wanted color.
Business Name & Location

Owners names, Function & Contact Information

Nara Sargsyan,
Mariam Grigoryan,
Andrei-Eduard Monor,
Opportunity
Iasi is a small city with growing population, which is interested in the fashion and clothes. There
are a lot a magazines supplying different types of clothes from different countries but the
companies offering clothes for everyone, every taste, and every size are very little.
Iasi is in need of a less expensive brand of custom made clothes, without the huge taxation which
current stores provide. If we are able to make people realize that they are just buying the brands
and that is why clothes are so expensive, we will be able to make a big change in this market.
The population in Iasi is mostly composed from students which dont have a lot of money , so in
order to attract them in our store we offer the a 15% discount for each item bought.
Services
ABCD will be making custom made clothes for all genres and age, you just need to come up
with an idea, we draw it for you and make it happen.
ABCD we provide the clients with our own products which they ca freely modify, we can also
modify clients personale chlotes.
ABCD has an website to make our clinets job easier, and also delivery service which you dont
have to pay for .

Economics of one unit(EOU)

Mens
Jeans
Top
Trousers
Hat
Cardigan
Sweater
Suit
(jacket,pants,tie/bow)
Short-jeans
Hoodie
Robe
Womens

160 lei
70 lei
120 lei
60 lei
160 lei
100 lei
650 lei

Hat
Shirt
Cardigan
Sweater
T-shirt
Evening dress
Casual dress
Hoodie
Suits
Jeans
Trousers
Skirt
Babys

60 lei
100 lei
150 lei
100 lei
60 lei
200 lei 320 lei
120 lei 220 lei
120 lei
550 lei
150 lei
120 lei
100 lei

Cap
Bodies
T-shirt
Dress
Cardigan
Sweater
Robe
Gloves
Jeans
Trousers
Baby shoes

50 lei
90 lei
55 lei
100 lei 190 lei
90 lei
100 lei
40 lei
30 lei
60 lei
60 lei
50 lei

90 lei
170 lei
100 lei

Future plans
For our one year plan we want to reach 20% of the market share, after doing that the first think
we are planning to enter the shoes, coat and jacket markets and also open other stores in other
cities.
Business idea
Qualifications
Being in a university that studies economics and everiting that it envolves we have the right
skills, gained from our courses, to open and manage such a store. We also have good people
skills, we all took part in internships that involved negotiation and and sales management also we
participated in projects that required knowledge about client salesman interaction.
Factors influencing demand
High quality, affordable prices, products are more flexible because clients can modify them as
they want !
Type of business
We offer the client the chance to make the clothes as they imagine them and also provide them
with our range of products which they can also modify.
Type of business ownership
LLS(limited liability company) operated by 3 owners. We chose LLS because this type of
business protects owners assets and also can enjoy some tax benefits.
Social responsibility
We are using natural fibers and materials to make our producs .

Opportunity & Market Research

Chart Title
Iasi ppopulation

Students in iasi

17%

83%

Medium wager pe month in iasi 2.028 RON

Medium budget a student has per month 700 RON

The target market are students who dont have much money and are eager to have great look
being different from the other colleges. They constitute .. % of the population in Iasi.
Market research
Iasi lacks a clothing store that can sell products of high quality and at affordable prices, our store
will focus mostly on students and we found out that they are more than 60000 in Iasi so we
would have a good target market to which we will offer discounts, but also another target market
which is the rest of the population in Iasi, our store produces clothes for all ages and genre.
Competitors
Direct competitors will be written later!
Indirect competitors are the brands you can find in malls, like Bershka, Pull&Bear, New Yorker
etc. , but also the stores on Stefan boulevard and Unirii , but none of these offers the clients the
possibility of altering the products as they want and also have higher prices for lower quality
products.

Competitive advantage

we are the first store of this kind in Iasi;

we have the best quality to price ratio;
our shop provides a sketch artist that will put on paper what the clients have in mind and
our employees will give life the our clients ideas;
we do to types of business in one place which lowers costs, selling and manufacturing;

Marketing plan
Students dont have time so we make the process as fast as we can , they come to our store,
explain what they want and we make that product as fast as we can and deliver it. Also through
the web site our clients can draw what product they want themselves or send us a picture with
what they want and we will sew it.
Clients benefits:

less time time spent on find suitable clothes;

less money spent;
better quality clothes;
clothes that are exactly like they want to be not like brands make them;

Pricing strategy
Promotion
Fashion marketers conduct promotional events. Product launch events invite
the media and public or private guests to learn about new product offerings
such as jewelry and other accessories. Runway events showcase fashion
apparel that is worn by models. Spectators view the models to see how the
clothing fits and evaluate the overall look. Other events involve hosting or
sponsoring charity events and causes that help build brand awareness.
Promotion through:

Facebook
Fliers
SMS
Television commercials
Banners
Newspaper ads
Website

Sales method
ABCD will provide its clients with two paying methods , through credit card,
online, on our website and cash at the store.
Also once or twice a year we will organize some events and offer our student
clients the chance to win some big discount cupons for our store. Students
with high grades will also have bigger discounts.
Financial strategies
Sales Estimates
Sales estimates represented below are for the first year. In the first two
months we dont expect to have a lot of sales but after aggressive
advertising our profits should triple after the first two months and slightly
increase over the course of the year
Month
June
July
August
September
Octomber
November
December
January
February
March
April
May

Five year forecast

Monthly sale
15.300 lei
16.530 lei
17.540 lei
20.340 lei
25.120 lei
30.140 lei
41.450 lei
45.110 lei
46.900 lei
47.400 lei
48.910 lei
48.430 lei

18000
16000
14000
12000
10000

year
orders per year

8000
6000
4000
2000
0
1

Forecast for annual revenue for the next 5 years

3000000
2500000
2000000
Year

1500000

Annual revenue

1000000
500000
0
1

Business Expenses
Fixed expenses are

Salaries 6300 leis per month

Materials 3000 leis

Utilities & Gas expenses 900 leis

Operating expenses are

Advertising : fliers, commercials, newspaper ads 1500 leis

Depreciation: sewing machines 5% of the cost-20 leis
Insurance: Automobile insurance 34.5 leis
Other operating expenses: 200 leis
Economics of one unit
One unit of sale=One order
Selling price per unit
Variable expenses
Cost of Goods sold
Materials
Labor per hour
Cost of goods sold
Other variable expenses
Commitions
Delivery and handling

155 lei
51.3 lei
5.55 lei
56.85 lei
0.00 lei
4.0 lei

Total variable expenses

60.85

Contribution margin per unit

94.15

Income statement
Projected annual income statement: End of 1 year

Revenue
Sales ( 252 Days)

403170 lei

Total revenue

403170 lei

Cost of goods sold

Materials

120951 lei

Labor

75600 lei

Cost goods sold

196551 lei

Gross profit

216619 lei

Operating expenses
Advertising

10000 lei

Depreciation

414 lei

Insurance

1400 lei

Other operating expenses

2400 lei

Total operating expenses

138414 lei

Earnings before taxes

138414 lei

Tax (15%)
Net profit

22146.24 lei
116268.76 lei

Balance sheet
Projected Balance sheet: Start of business

ASSETS
Current Assets
Cash

20000 lei

Total current assets

20000 lei

Long-term assets
Building

300.000 lei

Equipment

8000 lei

Other long-term assets

200000 lei

Total long-term assets

508000 lei

Total assets

528000 lei

Liabilities
Total current liabilities

0 lei

Total long-term liabilities

0,0 lei

Total liabilities

0,0 lei

Financial ratios
Net profit/Total sales x 100 = Return on sale
116268.76/403170 x 100 = 28.8 %
Net profit/Initial investment x 100 = Return on investment
116268.76/528000 x 100 = 131 %
Breakeven point
Fixed cost per unit/ Price per unit Variable cost per unit= Breakeven point
55.5/94.2= 0.59
Financing strategy
Start up investment

528000 lei

Reserve for fixed expenses

20000 lei

Organizational structures
The three co-owners will purchase all the materials, equipment and building, are in charge of all
the costumers and will perform all the business functions.
Staffing
The company has 5 sewers, 1 cleaner, 1 driver and 1 sketch artist. As the business grows it will
hire more personal.
Training & Motivating Employees
The firm will hire expert and experienced tailors, a driver and the sketch artist that will be
studying art and design.
The employees will take part in team-building experiences out-door activities, will receive prices
if they are very productive.
Legal structures
Intellectual Property
The company has started the process of trademarking Pyunik as a brand name. The owners
will also copyright the company brochures and all the printed materials.
Contracts
The company will have a written contract with each of its client specifying the date on which the
product will be delivered, the exact measures of the product and the price.
Insurance
The company will pay for automobile insurance , building insurance and injury insurance
totaling 1400 lei a year.

Expenses and Cash flow

Cash sales ( 98 x 155)

15300 lei

Total cash inflows

15300 lei

Cash outflows
Variable expenses Materials

4590 lei

Labor

6300 lei

Advertising

1500 lei

Depreciation

34.5 lei

Insurance

116.6 lei

Other operating expenses

200 lei

Total cash outflows

12741.1 lei

Cash available

2558.9 lei

Production & Distribution

In the first year Pyunik will only produce and sell its items in Iasi offering the client free
delivery.
Operations
The website will be available 24 hours a day, 7 days a week, but if an order is pleaced in
weekend it wont be processed until the start of the working week.
If a costumer is unhappy with the product it receives he has 24 hours to return the product, he
will need the receipt and the product in the same condition as it was sent.
Purchasing
The company will purchase all its materials in the beginning of the month and the car will be
filled with gas every time it will need.
Plan for growth
For our one year plan we want to reach 20% of the market share, after doing that the first think
we are planning to enter the shoes, coat and jacket markets and also open other stores in other
cities.

Challenges

Short-term challenges
Rising at the standards of our clients produce high quality clothing and reaching 20% market
shear.
Long-term challenges
Expending to more than one store, entering to the other fashion markets, become national
recognized clothing manufacture.
Exit strategy
The company is planning to stay on the market as long as possible even after the owners
deceased.