Torn n’ Worn Finances and Leadership

Emily Papp, Emily Prawdzik, Brennan Rae, Muharrem Ahmeti

Location of Business

Torn n’ Worn will operate in a metropolitan area with low to middle class citizens. The

business will also operate year-round.

Target Customer Group(s)

Our target customer groups are low to middle class citizens and young adults. We

chose these two groups because both will not have a high income meaning they may not be

able to afford brand name clothes and will need to buy cheaper clothes, such as ours. Since

we do not have to buy as many materials for our products, this will lower our costs. We also

chose young adults because recycling and repurposing has become very popular, especially

among younger generations, because of the global climate crisis.

Estimated Sales in the First Year (These sales include any online sales)

- Number of customers: People ages 15-25 in London - 65 700

People with income $10,000-$70,000 in London - 264,445

Students in London - 45,000

**Note: Students would be our prime target as they are in both the target age and income

demographic**

- Prices: Shirts - $9.99 + tax

Pants - $14.99 + tax

Accessories - $2.99 - $9.99 + tax

- Total Estimated Revenue: $419,550

- Estimated number of customers: 15,000

- Estimated number of items per customer throughout whole year: 3 (1 shirt, 1 pant, 1
accessory)

 - Total sales on shirts: $149,850

- Total sales on pants: $224,850

- Total sales on accessories (Using lowest price): $44,850

- Monthly Expenses: Roughly $10,000

- Yearly Expenses: Roughly $150,000 (Monthly expenses plus yearly expenses that occur)

Profit = $419,550 - $150,000 = $269,550

Start-up Budget

We estimate it will take at least $15,000 to launch this business. Since we have

$50,000, we will not need to raise additional cash.

Start-up Cost Breakdown

Real Estate:

First and last month’s rent $4,400

**Note: We have decided to rent or lease a commercial building instead of buying one to

reduce start-up costs**

Equipment:

Sewing Machines (2) $155 each $310

Washer (2) $1,100 each $2,200

Dryer (2) $1,100 each $2,200

Cash Register $260

Debit and Credit Machine $60

Total $5,030

Supplies:

Thread and Needles $20

Hangers $20 for 18 $100

Hard Drive for Website $90

 Initial Materials $200

Total $410

Furniture:

Clothing Racks (for sewing use) (2) $110 each $220

Clothing Racks (for store use) (4) $110 each $440

Benches for Dressing Rooms (3) $120 each $360

Tables for Clothes (3) $100 each $300

Front Counter $500

Total $1,820

Miscellaneous/Decorations:

Mannequins (2 male, 2 female) $90 each $360

Mirrors (6) $90 each $540

Lights for Signage (flexible string lights) $20

Artwork and Decorations $750

Total $1,670

Start-up Cost Total: $13,330

**Note: We have given ourselves a higher start-up budget in case of extra costs that come

up**

Management Team

Emily Papp is in charge of operations and human resources.

Emily Prawdzik is in charge of accounting and financing.

Moe is in charge of marketing and social media.

Brennan is in charge of our online business.

Strengths and Weaknesses of Team

S (Strengths)

- Main strength is the amount of knowledge and expertise diversity in our group

- Each person in our management team is very passionate and knowledgable in their area

W (Weaknesses)

- Weakness is that each team member, while they are knowledgable in their area of the
business, but lack of knowledgable in other areas

- Each person does not have a lot of help in their area

External Supports

O (Opportunities)

- Our main competitors, while similar, are not exactly the same

- This means we have a niche business and products

T (Threats)

- Our competitors have a bigger hold in the market and are well known and trusted in the
market