BUSINESS PLAN

PRESENTER JEFF NDIRANGU

ACDI/00758/2020

TO DR HEZRON OSANO

FABRIC FRENZY

NAIROBI MOI AVENUE

0112513334

4/1/2024
Contents
1. Business description............................................................................................................................4
1.1 Business Name...................................................................................................................................4
1.2 Business Location..............................................................................................................................4
1.3 Form of Business Ownership:............................................................................................................4
1.4 Type of Business:...............................................................................................................................4
1.5 Products/Services:.............................................................................................................................4
1.6 Justification of Opportunity:..............................................................................................................4
1.7 Industry:............................................................................................................................................5
1.8 Goals of the Business:........................................................................................................................5
1.9 Entry and Growth Strategy:...............................................................................................................5
2. Marketing Plan....................................................................................................................................6
2.1 Customers:.........................................................................................................................................6
2,2 Market Share:....................................................................................................................................6
2.3 Competition:......................................................................................................................................6
2.4 Method of Promotion and Advertising:.............................................................................................6
2.5 Pricing Strategy:.................................................................................................................................7
2.6 Sales Tactics:......................................................................................................................................7
2.7 Distribution Strategy:.........................................................................................................................7
3. Organization and Management Plan...................................................................................................8
3.1 Managers and Qualifications:............................................................................................................8
3.2 Personnel, Number, Qualifications, and Duties:................................................................................8
3.3 Recruitment, Training, and Promotion:.............................................................................................8
3.4 Remuneration and Incentives:...........................................................................................................9
3.5 Licenses, Permits, and By-Laws;.........................................................................................................9
3.6 Support Services:...............................................................................................................................9
4. Operational/Production Plan.............................................................................................................10
4.1 Production Facilities and Capacity:..................................................................................................10
4.2 Production Strategy:........................................................................................................................10
4.3 Production Process:.........................................................................................................................10
 4.4 Regulation Affecting Operations:.....................................................................................................10
5. Financial Plan.....................................................................................................................................11
5.1 Pre-Operational Cost Documentation:............................................................................................11
5.2 Formation of Balance sheet.............................................................................................................13
5.3 Estimation of working capital..........................................................................................................15
5.4 Projected profit and Loss (operational Plan)...................................................................................15
5.5 Cash Flow Projection.......................................................................................................................15
5.6 Calculation of Break-even Point.......................................................................................................16
5.7Desired Financing:............................................................................................................................16
5.8 Proposed Capitation:.......................................................................................................................16
 EXECUTIVE SUMMARY

1. Business description
1.1 Business Name: Fabric Frenzy

1.2 Business Location:

Fabric Frenzy will be strategically situated in the heart of Uptown Nairobi Bihi
towers second floor stall number S56, providing convenient access to both local
residents and tourists. The chosen location offers high foot traffic and visibility,
ensuring maximum exposure for the business.

1.3 Form of Business Ownership:

Fabric Frenzy will operate as a partnership, owned and managed by Jeff Ndirangu
and Curtis Andrew, experienced entrepreneurs with a passion for textiles and a
proven track record of business success.

1.4 Type of Business:

Fabric Frenzy is a specialty fabric shop, offering a diverse selection of premium-
quality fabrics for fashion designers, DIY enthusiasts, and home decor projects.

1.5 Products/Services:
Our product line includes a wide variety of fabrics ranging from cotton and silk to
linen and wool, sourced from reputable suppliers globally. In addition to fabric
retail, Fabric Frenzy will offer cutting and customization services to meet the
unique needs of our customers.

1.6 Justification of Opportunity:

The demand for high-quality fabrics continues to grow, driven by the increasing
popularity of DIY projects, sustainable fashion trends, and a burgeoning home
decor market. Fabric Frenzy aims to capitalize on this opportunity by providing a
curated selection of fabrics and personalized service to cater to the discerning
needs of our target audience.
1.7 Industry:
The fabric industry is a dynamic and competitive market, characterized by shifting
consumer preferences and evolving trends. However, with our unique product
offerings, strategic location, and commitment to customer satisfaction, Fabric
Frenzy is poised to carve out a niche for itself and establish a strong foothold in
the industry.

1.8 Goals of the Business:

Our primary goal is to become the premier destination for fabric enthusiasts,
known for our exceptional quality, diverse selection, and personalized service. In
addition, we aim to achieve steady revenue growth, expand our customer base,
and establish Fabric Frenzy as a trusted brand within the community.

1.9 Entry and Growth Strategy:

To achieve our goals, Fabric Frenzy will implement a multi-faceted entry and
growth strategy, including targeted marketing campaigns, strategic partnerships
with local designers and artisans, and continuous innovation in product offerings
and customer experiences. By staying agile and responsive to market dynamics,
we will position Fabric Frenzy
 2. Marketing Plan
2.1 Customers:
Fabric Frenzy's primary customers are fashion designers, DIY enthusiasts, home
decorators, and small businesses requiring specialty fabrics. We will target
individuals seeking high-quality, unique fabrics for their projects, emphasizing our
diverse selection, personalized service, and competitive pricing.

2,2 Market Share:

To secure market share, Fabric Frenzy will focus on establishing a strong brand
presence, building customer loyalty, and differentiating ourselves from
competitors. Through targeted marketing efforts and exceptional customer
experiences, we aim to capture a significant portion of the local fabric market
within the first year of operation.

2.3 Competition:
Despite existing competition, Fabric Frenzy will stand out by offering a curated
selection of premium fabrics, innovative customization services, and unparalleled
customer service. We will closely monitor competitors' offerings and pricing
strategies to ensure that we remain competitive and continuously adapt to meet
evolving market demands.

2.4 Method of Promotion and Advertising:

Fabric Frenzy will employ a comprehensive marketing strategy encompassing
both online and offline channels. Our online presence will include a user-friendly
website showcasing our products, informative blog posts, and engaging social
media content on platforms like Instagram, Facebook, and Pinterest. We will also
utilize targeted email marketing campaigns to reach potential customers and
promote special offers. Offline, we will leverage local advertising channels such as
newspapers, magazines, and community newsletters to raise awareness of our
brand and attract foot traffic to our store. Additionally, strategic partnerships with
local fashion designers, interior decorators, and event planners will help us reach
our target audience and generate word-of-mouth referrals.
2.5 Pricing Strategy:
Our pricing strategy will be competitive yet reflective of the quality and
uniqueness of our fabrics. We will conduct thorough market research to ensure
that our prices are aligned with customer expectations while maintaining healthy
profit margins. Special promotions, discounts for bulk purchases, and loyalty
programs will be implemented to incentivize repeat business and foster customer
loyalty.

2.6 Sales Tactics:

Fabric Frenzy's sales tactics will focus on providing exceptional customer service,
personalized recommendations, and an immersive shopping experience. Our
knowledgeable staff will assist customers in:

 Selecting the right fabrics for their projects.

 Offering expert advice and guidance throughout the purchasing process.

We will also host regular workshops, events, and trunk shows to showcase our
products, demonstrate innovative techniques, and engage with customers on a
deeper level.

2.7 Distribution Strategy:

Fabric Frenzy will primarily operate as a brick-and-mortar retail store, providing
customers with a tactile shopping experience and the opportunity to interact with
our products firsthand. Our store will be conveniently located in a high-traffic area
with ample parking facilities, making it easily accessible to our target
demographic.

In addition to our physical store, we will explore opportunities for online sales
through our website and third-party e-commerce platforms. This will allow us to
reach a wider audience beyond our local market and cater to customers who
prefer the convenience of online shopping. Orders placed online can be fulfilled
through shipping or in-store pickup options, providing flexibility and convenience
to our customers. For long-term success and sustainability in the competitive
fabric retail landscape.
 3. Organization and Management Plan
3.1 Managers and Qualifications:
Fabric Frenzy will be led by Jeff Ndirangu and Curtis Andrew, experienced
entrepreneurs with a background in retail management and a passion for textiles.
With a Bachelor's degree in Interior Design and over five years of experience in
the fabric industry, they possess the leadership skills, industry knowledge, and
strategic vision necessary to drive the success of Fabric Frenzy.

3.2 Personnel, Number, Qualifications, and Duties:

Fabric Frenzy will initially employ a team of five staff members, including sales
associates, a customer service representative, and a store manager. Sales
associates will be responsible for assisting customers, processing transactions,
and maintaining store cleanliness. The customer service representative will
handle inquiries, resolve complaints, and ensure a positive shopping experience
for every customer. The store manager will oversee day-to-day operations,
manage inventory, and implement sales strategies to achieve business objectives.

All staff members will be required to have a minimum of a high school certificate ,
with preference given to candidates with previous retail experience and a passion
for textiles. Training will be provided to ensure that all employees are
knowledgeable about Fabric Frenzy's products, services, and customer service
standards.

3.3 Recruitment, Training, and Promotion:

Recruitment efforts will focus on sourcing candidates with a strong work ethic,
excellent communication skills, and a genuine interest in fabrics and fashion. Job
openings will be advertised through online job boards, social media platforms,
and local community networks. Interviews will be conducted to assess candidates'
qualifications, experience, and suitability for the role. Upon hiring, new
employees will undergo comprehensive training to familiarize them with Fabric
Frenzy's policies, procedures, and products.
 Ongoing training and development opportunities will be provided to ensure that
staff members remain up-to-date on industry trends, customer preferences, and
sales techniques. Promotion opportunities will be available to high-performing
employees who demonstrate dedication, leadership potential, and a commitment
to excellence. Internal promotions will be based on merit and performance
evaluations, with opportunities for career advancement within the company.

3.4 Remuneration and Incentives:

Fabric Frenzy will offer competitive salaries and benefits to attract and retain top
talent. In addition to base salaries, employees will have the opportunity to earn
performance-based bonuses and incentives based on individual and team
performance metrics. Recognition programs, employee discounts, and
opportunities for professional development will further incentivize and motivate
staff members to excel in their roles.

3.5 Licenses, Permits, and By-Laws;

Fabric Frenzy will adhere to all relevant licensing requirements, permits, and by-
laws as outlined by the Kenyan government. This includes obtaining a business
license from the local authorities, complying with zoning regulations, and
adhering to health and safety standards set forth by regulatory bodies. Fabric
Frenzy will also ensure compliance with tax regulations and maintain accurate
financial records to support transparency and accountability.

3.6 Support Services:

Fabric Frenzy will engage with external service providers as needed to support
business operations, such as accounting and legal services. Additionally, we will
establish relationships with suppliers, manufacturers, and logistics partners to
ensure timely delivery of inventory and efficient supply chain management. Clear
communication channels and regular performance evaluations will be established
to monitor the effectiveness of support services and address any issues or
concerns promptly.
 4. Operational/Production Plan
4.1 Production Facilities and Capacity:
Fabric Frenzy will operate from a modern and spacious retail space located in a
prime Uptown area, providing ample room for display, storage, and customer
interaction. The production capacity will be tailored to meet demand fluctuations,
with sufficient space allocated for inventory storage, cutting and customization
stations, and customer service areas.

4.2 Production Strategy:

While Fabric Frenzy primarily focuses on retail operations, we will also offer
customization services to meet the unique needs of our customers. This may
include fabric cutting, hemming, and embroidery services to ensure that
customers receive tailored solutions for their projects. Additionally, we will
collaborate with local designers and artisans to develop exclusive fabric designs
and collections, enhancing our product offerings and differentiating ourselves
from competitors.

4.3 Production Process:

The production process at Fabric Frenzy will involve several key steps, including
sourcing, inventory management, customization, and quality control. Fabrics will
be sourced from reputable suppliers globally, ensuring variety, quality, and
affordability. Upon receipt, inventory will be carefully inspected, cataloged, and
stored in designated areas within the store. Customization services will be offered
to customers as needed, with skilled staff members available to assist with fabric
cutting, resizing, and other modifications. Quality control measures will be
implemented at every stage of the production process to ensure that products
meet our standards for excellence and customer satisfaction.

4.4 Regulation Affecting Operations:

Fabric Frenzy will comply with all relevant regulations affecting operations,
including health regulations, trademarks, patents, copyrights, and environmental
regulations. We will adhere to health and safety standards to ensure a clean and
hygienic environment for both customers and staff members. Additionally, we will
respect intellectual property rights by avoiding the sale of counterfeit or infringing
products and obtaining necessary licenses or permissions for any proprietary
designs or trademarks used in our products. Environmental sustainability will be a
priority for Fabric Frenzy, and we will implement eco-friendly practices wherever
possible, such as reducing waste, recycling materials, and sourcing fabrics from
suppliers committed to sustainable practices. By prioritizing compliance and
responsible business practices, Fabric Frenzy will uphold its commitment to
ethical operations and contribute positively to the community and the
environment.

5. Financial Plan
5.1 Pre-Operational Cost Documentation:

1. Market Research Expenses:

- Survey costs: 1500
- Focus group sessions: 3000
- Data analysis tools/software: 2000

2. Business Registration and Legal Fees:

- Business registration: 10,650
- Licensing and permits: 8000
- Legal consultation: 4000

3. Inventory Costs:
- Initial fabric purchases: 400,000
- Samples for display: 5000

4. Equipment and Supplies:

- Cutting tables:
- Sewing machines:180,000
- Measuring tapes, scissors, etc.: 6000

5. Storefront or Online Platform Setup:

- Lease deposit/rent: 25000
- Renovation/construction: 25000
 - E-commerce website development: 8000

6. Marketing and Advertising Expenses:

- Logo design: 0
- Website development: 8000
- Social media marketing: 2000
- Print materials: 2000

7. Staffing Costs:
- Salaries and benefits: 100000
- Training expenses: 10000

8. Utilities and Operational Expenses:

- Electricity: 4000
- Water: 1000
- Internet and phone services: 2500
- Rent: 25000
- Insurance: 18000
- Maintenance: 0

9. Transportation and Delivery Costs:

- Fuel: 6000
- Vehicle maintenance: 4000
- Shipping expenses: 10000

Total Estimated Pre-Operational Costs: 845,650 Ksh

5.2 Formation of Balance sheet
5.3 Estimation of working capital
Current Assets:

Cash 167910

Accounts Receivable 51000

Inventories 78050

1,856,820

Current liabilities:

Accounts payable 39020

Accrued expenses 28600

67,620

Working Capital = 1,789,200

5.4 Projected profit and Loss (operational Plan)

Revenue:

Sales of Fabric Products: 650,000

Cost of goods sold (COGs)

Cost of fabric: 400,000

Labor cost: 62000

Total COGs: 462,000

Operating Expenses: 43000

Net Profit/ loss: gross profit: 145,000

5.5 Cash Flow Projection

Beginning cash Balance: 1,856,820

Cash Inflows:
Sales Revenue: 650,000

Loans or investment: 555260

Other Income: 0

Total cash inflow: 1,205,260

Cash outflow:

Cost of goods sold 400,000

Operating expenses: 105,000

Loan repayments: 39020

Total cash outflow: 544,020

5.6 Calculation of Break-even Point

4000/ (2500-2000)= 8

5.7Desired Financing:
2,400,000

5.8 Proposed Capitation:

Offering: Monthly Fabric Subscription

Subscription Fee: 4000 per month

Benefits:
- Access to a specified amount of fabric each month
- Discounts on additional fabric purchases beyond the subscription amount
- Exclusive access to new fabric designs or products
- Priority access to sales or promotions
Terms and Conditions:
- Subscription fee is payable monthly in advance
- Unused fabric allowance does not roll over to the next month

- Additional fabric purchases beyond the subscription amount are billed

separately at a discounted rate
- Subscription can be canceled or modified with a notice period of 7 days