Business Expansion Proposal

CONTACT DETAILS: PHYSICAL ADDRESS

NAME: Mrs. Tsoanelo Jae Fuma Maseru East

POSITION: Managing Director PO Box 12585,
CELL: (+266) 5866 9384 Maseru 100
EMAIL: missjayclothing@gmail.com Lesotho
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TABLE OF CONTENTS
PAGE

1. EXECUTIVE SUMMARY 1

2. BUSINESS DESCRIPTION 3

3. PRODUCT PORTFOLIO 8

4. MARKETING AND SALES STRATEGIES 9

5. COMPETITORS ANALYSIS 12

6. MANAGEMENT 13

7. FINANCIAL PLAN 15

8. APPENDICES 20
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1. EXECUTIVE SUMMARY

Miss Jay Clothing is a 100% woman-owned company that was established in 2015. Miss Jay
Clothing is both a manufacturing and Retail establishment where production takes place in Maseru
at Katlehong Parklands Estate. The manufacturing process involves outsourcing raw material
needed for outfits include fabrics, trims, garment accessories, buttons, zippers and interlining, and
the production process which involves customer consultation, outsourcing materials, design and
actual dress production. Currently Miss Jay Couture is operating from a state-of-the-art design
studio where we have employed two professional fashion designers and fashion designers.

Miss Jay Couture aims to intrigue is clients with high end fashion pieces while also identifying with
the uniqueness in each client. We provide stylish and sustainable apparel that gives the wearer a
unique, customized and individualistic flair. Each piece is made with a touch of MissJ’s personality
which expresses a unique femininity, sophistication, elegance and romance. The company
combines technology, modern design and African craftsmanship when creating pieces and adorns
luxury fabrics with intricate details such as hand stitching and homemade accents to add
individuality and personality to each piece. Miss Jae has developed her company into a viable and
successful enterprise through acquired business acumen, entrepreneurial flair & well established
customer base. Some of MissJC successes during the past 7 years include.

 The design and tailoring of outfits VVIP’s in the country which include.

o Over (20) twenty for Her Majesty Queen Masenate

o Former Prime Minister Dr Majoro’s family,

o Former Deputy PM Mr Mokhothu’s family and many more government officials,

o Models (ie Former Miss Lesotho and Miss Humanity International 2011 Karabelo
Mokoallo).

 MissJC was featured on the Cover of Finite Magazine October 2017 issue.

 Winner of the Avani Hotels Top Designers Competition where we came 1st, 2nd & 3rd
place out of 40 contestants.

 Tailored and supplied corporate attire for Maseru Private Hospital and DHMT Lesotho

 Winner of the BACHA Business Plan Competitions 2019.

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The rising demand for Miss Jay’s Unique products has driven the need for expansion, which has
further been evidenced by an existing niche in terms of afro-centric wear in the market. MissJC
wants to afford its clientele the convenience of picking up an elegant dress to attend an event
without the time delays of measuring and tailoring.

The company seeks to.

 Expand from the production of high-end couture to an additional products that appeals
to the mass market, being Afrocentric Wear and casual chic clothing.

 Complete set up of our newly constructed Prefab at Sefika Complex.

 Establish and online retail outlet where large orders can be placed and served.
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The Idea behind this expansion is to establish a retail store at one of the big malls in Maseru to
allow us to sell in bulk, pre-designed garments. This is because the margins are higher on the
Afrocentric wear and casual wear as compared to producing on a client-to-client basis. Our current
price ranges for our custom-made dresses range from a minimum of M 1200.00 per piece to
depending on size and detail involved. Miss Jay Couture currently produces a minimum of 3 items
per day to a total of 6 items per day in peak season. Miss Jay Couture’s average sales per month
is currently at M 55, 605. 00 and our annual turn over on average is M 667, 263.00.

The total investment required to establish the Sefika complex boutique and virtual store that sells
both Afrocentric/ ready to wear and the standard Mis Jae Couture offering is estimated at M 1 206
659,84. Sales is projected to reach M 2 672 095.19 in year one, increasing to M 3 558 707.08 the
following year. After tax profit of M 256 676,29 is projected for year one after servicing the loan.

2. Business Description

2.1. Overview
Miss Jay Clothing is a 100% woman-owned company that was established in 2015. Miss Jay
Clothing is both a manufacturing and Retail establishment where production takes place at
Katlehong. Currently Miss Jay Couture is operating from a state-of-the-art design studio where we
have employed two professional fashion designers and three seamstresses. Miss Jay is a fashion
design manufacturing company that specializes in producing high-quality, trendy clothing and
accessories for men and women. With a focus on innovation, sustainability, and customer
satisfaction, our company aims to become a leader in the fashion industry.

2.2. Vision
Our vision is to become one of the leading high end ladies fashion brands in Africa by 2025 known
for impeccable craftsmanship, luxurious designs, and commitment to sustainability. We aspire to
elevate the confidence and elegance of women through our sophisticated and timeless clothing.

2.3. Mission
Our mission is to capture a share of the garment market through building on our established
reputation and by offering quality and affordable products backed by quality service, continually
exceeding customer expectations to contribute to customer loyalty./

2.4. Shareholding
The shareholding of Miss Jae Couture Pty (Ltd) is as follows:

Name Gender Shareholding

Tsoanelo Jae Fuma Female 100%

2.5. Future Objectives

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Miss Jae Couture’s Future objectives are:

1. Production and Distribution Facilities:

1.1. Short Term Objectives1

• To set up a boutique at our newly constructed prefab at Sefika Complex.

• Establish and online shopping platform
• Acquire new machinery and equipment to produce Afrocentric wear.
1.2. Long Term Objectives
• Establish a factory measuring at Ha Tikoe
• Employ new workers to establish a fully dedicated distribution outlet
• Implement quality control systems to ensure consistent quality garments
• Create capacity to produce 3000 garments per month (100 per day)
2. Marketing:

• Position Miss Jae Couture as a not only a supplier of high end ladies clothing but
also a supplier of afrocentric wear and casual chic wear.
• increase brand awareness: Develop a comprehensive marketing plan to increase
brand visibility and awareness among the target audience. This can include
online advertising, social media marketing, influencer partnerships, and
participation in relevant fashion events.
3. Financial:

• Continue operating a financially viable and sustainable operation

• Introduce Afrocentric and Chic ready to wear as products to generate higher
margins
• increase sales revenue by a certain percentage each year.
• Achieve a certain profit margin on each product sold.
• Reduce operating expenses to improve overall profitability.
• Increase the average transaction value by promoting cross-selling and upselling.
• increase the number of repeat customers through loyalty programs and targeted
marketing campaigns.
• Expand the customer base by entering new markets or attracting a wider range of
customers.

1
Within the scope of this business proposal
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• Develop strategic partnerships with complementary luxury brands to enhance brand

image and reach.
• Improve inventory management to minimize stockouts and excess inventory.
• Enhance the online shopping experience to increase online sales.
• Strengthen the brand reputation and perception through effective brand positioning
and marketing strategies.

4. Customer Base:

• Grow the customer base to supply other garment offerings

• Ensure the growth of the customer base in the first year of opening of the retail
outlet
5. Research and development:

• Conduct ongoing research regarding market trends

• Upgrade and enhance product development on an ongoing basis
6. Expansion & Growth:

• Introduce new product design in collaboration with customers

Training and Skills Development
• Provide sewing and other operator training as required
• Create up to 30 new employment opportunities with new production line as a long-
term objectives

2.6. Values

Our values are to continuously cultivate conduct resulting in a high level of professionalism,
integrity, quality, a positive reputation, a fun place to work and business anyone will be proud to be
associated with.

2.7. Keys to Success

The reasons why the expansion will be a success include:

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• Extensive industry experience

• Caring for and serving needs of customers

• Established track record

• Reputation for reliability, quality, and customer service

• Sound financial basis

• Establishing additional production line to serve different market segment

Linked with the above is the fact that Miss Jae has been operating in the garment industry for 7
years with vast experience and an established client base.

2.8. Company Location and Facilities

 The company currently operates from a studio apartment located at Katlehong Parklands
Estate, we have established a high end prefabricated structure at Sefika Complex where we
are going to establish a high end boutique.

 We constructed the showroom in order to cut down on monthly rental, the rates for retail space
of standard shop 36square meters in prime areas are around R30 000.00 whereas we will only
be paying R5,475 at Sefika for 54sqm(ground floor) plus 48 sqm top floor which is a total of
102sqm.

 The objective is to transform the prefab building into a high-end boutique by focusing on its
interior design elements, we want to Incorporate high-quality finishes, such as marble flooring,
elegant lighting fixtures, and plush furnishings, to create a sense of luxury and sophistication.

 We also want to showcase exclusive and unique merchandise and to curate a collection of
high-end and focus on products that are not easily available elsewhere, ensuring that
customers feel they are discovering something special when they visit the boutique.

 We plan to implement a personalized shopping experience: Train the staff to provide

exceptional customer service and create a personalized shopping experience for each
customer and to encourage them to offer styling suggestions and provide knowledgeable
guidance to enhance the overall shopping experience.

 The top floor is going to be a bridal shop and exclusive clothes showroom and bottom floor
ready to wear, shoes and bags boutique.
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Proposed Store Layout

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2.9. SWOT ANALYSIS

The strengths, weaknesses, opportunities, and threats identified are mostly positive as can be
observed from the analysis below and confirms the potential of the operation. The objective is to
capitalize on the identified opportunities and build on the strengths.

Strengths: Weaknesses:

• Knowledge of clothing industry – self taught
• Established reputation as reliable supplier
• Marketing network
• Been in clothing industry for many years
• Brand that offers unique and individualized &
top-notch designs
• We don’t keep enough ready to wear clothes and
wedding gowns for last minute shopping
• Limited accessories and inventory
• Low working capital
• Insufficient equipment and machinery
• Employees not enough for bulk others with

• One stop shop • pressing deadlines

• Effective customer retention strategy (follow up • Low production capacity to meet market demand
calls after purchase
• Our location is not easily accessible for
pedestrians

Opportunities: Threats:

• Occupying own factory • New design studios that might open in town

• Becoming large scale garment supplier • Designs can be copied by other designers

• Expanding manufacturing capacity • Change in consumer Preferences

• Localization initiatives to buy local • Rising costs of raw material

• Rising Online Shopping consciousness • Subdued economic growth affecting consumption

by clients
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3. Product Portfolio

3.1. Description

MissJC is targets all classes of clientele by diversifying its product offering.

a) Outfits; Bridal wear, bridesmaids’ dresses, Cocktail Dresses, Prom Dresses, Evening
Gowns.

b) Manufacturing of fascinator Hats

c) Fashion Accessories; clutch bags, Belts, jewellery, sunglasses.

d) Style and Image Advisory Services: In addition, we offer style and image coaching
services to clients, this idea was born after realizing most women have a complex in
identifying clothing that suits their bodies, identifying colours that blend with their skin
tone and choosing right clothing.

e) Afrocentric wear and chic casual ready to wear(New Product Offering)

3.2. Product Features & Benefits

The product features of key products are as outlined in the table below:

Premium Couture Features Benefits Client Profiling Reasons for

Purchasing

Bridal wear, bridesmaids’ Custom made • Unique • Upper Middle • Purchased for
dresses, Cocktail Dresses, products according • Elegant Class to Upper Weddings and
Prom Dresses, Evening to client taste and • Value for Class Cocktail
Gowns. needs Money ( Royalty, Events, gala
Ministers, dinners
CEOs)

Afro Centric Wear

Events, Work dresses Pre-made garments • Affordable • Lower Middle • Weddings ,

according to market • Presentable Class to Lower work, and
trends • Easily Class Parties
accessible

3.3. Quality Control

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All products are quality checked in the production lines and allocated points before packing for
distribution. Management fully understands that quality is an important competitive factor and all
employees are aware that quality is non-negotiable. From receiving raw materials and checking of
accessories quality receives the attention it deserves.

4. Marketing and Sales Strategies

4.1. Market Overview

According to Lesotho Demographics Survey in 2016 Maseru had a population of 519 816 people
and of those women were 296 349, meaning women occupy 57 % of the total population in Maseru
and the median age is 25yrs. Out of these women our market is mostly working-class women,
these are women who have graduated from varsity and this age category includes women who
have just been employed and those who are either self-employed or employed in government or
private sector.

In support of the above observations the Lesotho Youth empowerment survey identified that 23.2
% of youth in Maseru were employed and 55.1% of these were women who are Miss Jae Couture’s
target customers. According to the World Bank Data women comprise around 39% of workforce
across the world. The number has been upward trend in the last two decades according to the UN
Women. This means that there is an abundant and growing market for Miss Jae’s Product
Offerings, especially Afrocentric wear

4.2. Market Segments

Our target Market Segments include:

• Brides & bridal team groups

• Wedding guests

• Models (When they attend international Fashion Shows)

• Fashionistas

• Government Officials

• VVIP’ s (Her Majesty Queen Masenate)

We will efficiently sell our garments and accessories if we could have an outlet in town and an
online platform to showcase our designs.
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4.3. Industry Overview

According to Statistics South Africa (StatsSA), the local Clothing, Textile, Footwear and Leather
(CTFL) manufacturing sub-sector generated income of R175bn in 2019, with the clothing
manufacturing segment accounting for R20bn. Retailers are the primary drivers in the South
African clothing industry, dictating the fortunes of local manufacturers and determining the annual
level of imports. According to Stats SA, total retail sales of textiles, clothing, footwear, and leather
goods amounted to R 99.7 billion in 2019. There are an estimated +-800 clothing
manufacturers operating in South Africa that generated revenue of R20bn in 2019, while retail
sales of clothing, footwear and textiles totalled more than R175bn. The drive to support ‘Made in
South Africa’ labels is steadily gaining ground. In 2019, the top partner countries to which South
Africa Exports Textiles and Clothing include China, Namibia, Botswana, Lesotho and Eswatini.

According to a Grand view research 2019 report;” The global women wear market size was valued
at 1.386.1 billion in 2018 and expected register a CAGR of 4.7% from 2019 to 2025. Growth is
attributed to growing female population, increasing number of working women, evolving fashion
trends and spending power of consumers. Growing influence of social media and celebrities is
driving the manufacturers to continuously introduce new designs and styles.” The report further
indicates that the boom in ecommerce sector has been a catalyst for the global Market growth

4.4. Marketing Strategy

Product Strategy

The product strategy entails the following:

• Ensure quality / durability is compliant as specified

• Invest to grow by producing and offer sufficient stock

• Reinforce manufacturing procedures amongst staff

• Conduct negotiations for material purchasing

• Develop culture of best practices

• Conduct training for staff

Promotion strategy

The following advertising, selling and promotion tactics/strategies will be implemented:

• Design and push Advertisements through Facebook

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• Design and print brochures x 1000 glossy

• Design and make up sign boards for factory

• Design and launch website including:

 Add product features to site

 Layout of sales network

 Photos of product ranges

Price Strategy

Prices for the range of clothing supplied are as follows:

Product Category Price p/unit Profit Margin

Bridal wear, bridesmaids’ dresses, M 1200.00 – M 3000.00 50%

Cocktail Dresses, Prom Dresses,
Evening Gowns

Afro – Centric Wear & casual wear M 100 – 1000.00 50%

Fascinator Hats M 100 – M 1000.00 25%

Fashion Accessories; clutch bags, M 10 – M 1000.00 20%

Belts, jewelry, sunglasses.

Style and Image Advisory Services 500 per session 100%

Distribution Strategy

Miss Jae is both a manufacturing and retail hub, we manufacture and sell directly to customers.
Our fashion designers and seamstress manufacture outfits and are also sales agents. Our walk-in
clients come to the studio to order and collect outfits.
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 Identifying Target Market: Before formulating a distribution strategy, it is crucial to identify and
understand the target market for my high-end ladies clothing store. This will enable me to
determine the locations and channels that best align with the preferences and shopping habits
of my customers.

 Distribution will be through fittings, purchase, and collection from our retail outlet at Sefika
Complex., we also plan to gradually expand our store's distribution to key geographic locations
where demand for high-end fashion is significant. Starting locally, we will focus on establishing
a strong customer base within the vicinity of our physical store before expanding further.

 In addition to the physical store, we intend to leverage various distribution channels to offer
convenience and accessibility to customers. These may include e-commerce platforms & pop-
up shops in upscale locations. Once a product is posted on the website, we will offer fast
delivering of maximum of two (2) days by collaborating with local bicycle/ courier delivery
services. The primary aim is to create multiple touch-points for consumers to engage with my
brand.

5. Competitors Analysis

There are many fashion houses in town offering outfits like we do, however we have identified a
gap in the market; Most women have insecurities with their bodies and image and unfortunately
don’t get professional assistance to choose the right type of clothes and the ideal material for that
particular outfit that suits them. Our competitors are mainly Chinese designers in town and other
local designers who have been in the game for a long time. Chinese designers mostly are unable
to assist clients to make right choices due to language barrier and cultural differences. As for our
local designers, they are too busy and do not have the right image and styling skills. We therefore
decided to offer Style Consultation

Services to assist women choose the right clothes.

 Right clothes for Body Type

 Right colours for skin tone
 Right outfit for occasion
 Right outfit for their personality

Even though some of the biggest fashion houses in town have substantial budgets for production
they do not focus on offering exclusivity, rather they push volumes. At MissJC we pride ourselves
in offering exclusive, high-end type of clothing, we beat competition by paying attention to finer
detail and we go out of our way by sourcing unique fabrics and accessories internationally in order
to meet expectations of our customers. We source our fabrics from South Africa and China for
clients who want exclusive outfits. We are capitalizing on exceptional service, building intimate
relationships with our customers. We don’t only sell clothes; we sell style and solutions to women
clothing problems. Loyalty is hard to win. The fashion customer is very fickle. To overcome this, we
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will not compromise any part of our business. We will remain consistent and true to our vision and
our mission.

6. Management

6.1. Operational Structure

The Current operational structure of MissJC is outlined below.

The Proposed Structure will be;

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Managing Director

Production Line Retail Store Virtual Store Head Office

Administrator Administrator Administrator Receptionist

Fashion Designer
(Garment Cashier Sales Clerk General Clerk Accountant
Construction)

Seamstress 1 Seamstress 2 Fashion Designer

Marketing officer
Premium Couture Afrocentric Wear (Pattern Drafting)

Driver

6.2. Management Team

Miss Tsoanelo Jae (MissJC) is the owner and managing Director of Miss Jay Clothing (MissJC).
She has over 10 years’ experience in the fashion industry. Even though Miss Jay was formerly
registered in 2015 it had long existed from my university days where she used to make outfits for
fellow students and university staff. She Is an innovative self-taught designer with undying desire to
be the leader in fashion and she has gathered enough expertise to complement and grow this
company so far, I have attended short courses on Fashion Styling at LISOF and Garment
Construction at Bloemfontein Fashion Academy. In areas where she lacks expertise, she always
engages experts.

6.3. Skills Gaps and development

Ongoing training and development is provided where required and skills gaps are regularly
reviewed to ensure ongoing employee training and skills development. In house on-the-job training
takes place on an ongoing basis. Workers are carefully recruited, screened, and selected before
being appointed. Due to the increasingly important role that skills and quality of work plays in the
clothing industry ongoing training and skills development is provided to ensure they meet the high
expectations set by clients. Management training and development will play a key role in the future
growth plans of Miss Jae Couture.
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7. Financial Plan

7.1. Expansion Cost

ACTIVITY DETAILS UNITS UNIT COST TOTAL COST

EQUIPTMENT Desktop 5 LSL 10 000,00
Computers
POS System 1 LSL 28 099,84
and Cash
Register
Pricing Gun will 1 LSL 3 000,00
Cost
Stationery 1 LSL 2 500,00 LSL 83 599,84
( money
scanners ,
staplers, etc.)
FIXTURES AND Boutique Store 1 LSL 250 000,00 LSL 250 000,00
FITTINGS Fitting and
Decorations
BRANDING Interior Designer 1 LSL 20 000,00 LSL 22 850,00
Business Cards 1 LSL 2 850,00
and Store
Packaging
ECOMMERCE Domain and 1 LSL 8 400,00
SITE Hosting Fee
Ecommerce Site 1 LSL 15 000,00 LSL 23 400,00
Development
Cost
OPENING STOCK Premade 1 LSL 600 000,00 LSL 600 000,00
Garments
(Wedding
gowns), Fabrics,
Trimming and
Accessories
(jewellery,
watches, and
bags etc.)

OPERATIONAL 3 months 3 LSL 75 603,33 LSL 226 810,00

COSTS Expenses
TOTAL LSL 1 206 659,84
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7.1.1. Cost Breakdown

7.1.1.1. Physical Store Establishment Costs

Branding

• Interior Designer: M 20 000.00

• Branding( Business Cards, Flyers, Vynil Printing etc. : M 2850.00

Fixtures and Fittings

• Total Cost is M 250 000.00

Equipment

• Desktop Computers 5* M 10 000.00

• POS System and Cash Register will Cost: M 28099.84 on time cost
• Pricing Gun will Cost: M 300.00
• Stationery ( money scanners , staplers,) : M 2500.00

Operational Costs :

• Wifi – Gold Package: will cost M2499.00 per month

• POS till rolls: M600 per Month
• Price gun rolls: 100 for 2 rolls per month
• Basic Monthly rent will be; approximately M 10, 125 per month with an 8% increment per annum
• Rates and Taxes will be 485 per month
• Salaries and Wages M 59 500.00 per month

7.1.1.2. Online Store Establishment Costs

FIXED COSTS: M 23, 400.00

OPERATIONAL COSTS FOR SIX MONTHS = M 42, 000.00

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7.1.1.3. Costs of Expansion of Production Studio to Produce Afrocentric Wear

Working Capital to Purchase Premade Garments (Wedding gowns), Fabrics, Trimming and Accessories
(jewellery, watches, and bags etc.)

Product Category Purchases (Portion of

Invested)

Bridal wear, bridesmaids’ dresses, Cocktail Dresses, Prom Dresses, M 300 000.00
Evening Gowns

Afro – Centric Wear and casual wear M 150 000.00

Fascinator Hats M 50 000.00

Fashion Accessories; clutch bags, Belts, jewelry, sunglasses. M 100 000.00

Total Investment M 600,000.00

7.2. Sales projections

Assumptions

Fully made garments - Premium Couture

 Maximum capacity is 4 dresses p/day for 20 working days/ Month which takes our maximum
production to 20 dresses/ week and 80 dresses per Month
 The average production cost is M 450, the daily cost of production is M 1800/day M 9000.00/ Week
and M 36 000.00/ Month
 The average selling price is M 1500 per fully made garment, our daily sales are 6000/ day, M 30000
week and M 120 000.00 per Month
 In January we have assumed there is no business hence why sales are low we assume only 40 dresses
will be made that month.
 Sales drop again in winter due to cold financial weather people don’t who dresses up a lot and events
are normally in summer. Dropping us to 40 dresses per month
 There is a peak in September in Lesotho due to annual graduations ceremony at NUL which is the
biggest educational institution. Taking us to 80 dresses per Month
 In. November sales rise again because people order outfits for Decrement events 80 dresses per
month
 In December due to many public holidays sales are not as high as expected slows to 60 dresses per
month
 To supplement the production limitation in the initial year, Miss Jae Couture will purchase pre-made
wedding dresses and garments which will follow the sales trends depicted above
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Fully made garments - Afrocentric Wear

 Maximum capacity is 10 dresses per day because they are standard dresses, 50 outfits per week and
200 outfits per month
 The average production cost is M 200, the daily cost of production is M 2000/day M 10 000.00/ Week
and M 40 000.00/ Month

 The average selling price is M500.00 per fully made garment and monthly sales is M 100 000.00 at
maximum capacity M 100 000.00
 We project an even sales trend as Mis Jae Couture will produce outfits according to the seasonal
needs of the customers.
 To supplement the production limitation in the initial year of expansion, Miss Jae Couture will
purchase premade Afrocentric garments and will sell at a profit to meet the surging demand for
clothing in Lesotho. The sales trends will follow the same trends
Fascinator Hats
 We assume the sale of one Fascinator hat will every premium couture dress. The Average price of a
fascinator hat is M 500.00, we expect to sell 80 fascinator hats amounting to M 40 000.00 which
makes M 9600.00 profit.
Fashion Accessories.
 Fashion Accessories are sold at a profit of 25% of the cost

Product Category Price p/unit Per Item Profit Margin

Cost

Bridal wear, bridesmaids’ dresses, M 2000 M 450.00 30%

Cocktail Dresses, Prom Dresses,
Evening Gowns

Afro – Centric Wear M 500 M 200.00 40%

Fascinator Hats M 100– M 1000.00 25%

Fashion Accessories; clutch bags, M 10 – M 1000.00 20%

Belts, jewelry, sunglasses.

7.3. Salaries & Wages

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7.4. Projected Cost Structure

Description 2022/23 2023/24

Salaries LSL 552 000.00 LSL 54 100.00
Bank charges LSL 3 000,00 LSL 3150
Insurance LSL 3 000,00 LSL 3150
Rent LSL 63 600.00 LSL 66780
Electricity, power & heating LSL 10 000,00 LSL 10500,00
Telephone & internet LSL 6000.00 LSL 6300
Marketing and Advertising LSL 10 000,00 LSL 10 500.00
Transport expenses LSL 20 000,00 LSL 21 000,00
Office expenses LSL 12 000,00 LSL 12 600,00
Printing & stationary LSL 5 000,00 LSL 5 250,00
Professional fees ( Audit fees) LSL 6 000,00 LSL 6 300,00
Total LSL 690 600.00 LSL 693 630
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7.5. Projected Income Statement

Description Year 1 Year 2

Sales - Premium Couture LSL 1 014 071,39 LSL 1 011 671,39
Sales - Afrocentric Wear LSL 1 200 000,00 LSL 1 800 000,00
Sales - Fascinator Hats LSL 338 023,80 LSL 507 035,70
Sales - Fashion Accessories LSL 120 000,00 LSL 240 000,00
Total Sales LSL 2 672 095,19 LSL 3 558 707,08
Less Purchases - Premium Couture LSL 304 221,42 LSL 303 501,42
Less Purchases - Afrocentric Wear LSL 480 000,00 LSL 720 000,00
Less Purchases - Fascinator Hats LSL 219 715,47 LSL 329 573,20
Less Purchases - Fashion Accessories LSL 78 000,00 LSL 156 000,00
Less Total Purchases LSL 1 081 936,88 LSL 1 509 074,62
Gross Profit LSL 1 590 158,30 LSL 2 049 632,47
Less Expenses LSL 690 600.00 LSL 693 630.00
EBIDTA LSL 682 918,30 LSL 1 018 203,27
Depreciation LSL 54 179,99 LSL 43 970,99
EBIT LSL 628 738,31 LSL 974 232,27
Less Interest (Loan) LSL 286 503,26 LSL 247 621,52
Profit after Interest LSL 342 235,05 LSL 726 610,75
Less tax @ 25% LSL 85 558,76 LSL 181 652,69
Net Profit LSL 500 312.54 LSL 646 555.08
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7.6. Projected Cashflow Statement

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8. Appendices

Appendix I: Proposed website layout

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Appendix 2: Physical Store Design and Layout

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Appendix 3: POS System Quote

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Appendix 4: WIFI Quote

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Appendix 5: Branding Quote

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Appendix 6: Rent Sefika Complex