Professional Documents
Culture Documents
Mission Statement
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
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 .
Chart Title
Iasi ppopulation
Students in iasi
17%
83%
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
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:
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
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
1500000
Annual revenue
1000000
500000
0
1
Business Expenses
Fixed expenses are
155 lei
51.3 lei
5.55 lei
56.85 lei
0.00 lei
4.0 lei
60.85
94.15
Income statement
Projected annual income statement: End of 1 year
Revenue
Sales ( 252 Days)
403170 lei
Total revenue
403170 lei
120951 lei
Labor
75600 lei
196551 lei
Gross profit
216619 lei
Operating expenses
Advertising
10000 lei
Depreciation
414 lei
Insurance
1400 lei
2400 lei
138414 lei
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
20000 lei
Long-term assets
Building
300.000 lei
Equipment
8000 lei
200000 lei
508000 lei
Total assets
528000 lei
Liabilities
Total current liabilities
0 lei
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
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.
15300 lei
15300 lei
Cash outflows
Variable expenses Materials
4590 lei
Labor
6300 lei
Advertising
1500 lei
Depreciation
34.5 lei
Insurance
116.6 lei
200 lei
12741.1 lei
Cash available
2558.9 lei
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.