Clothing line business plan template


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cothing line business plan template

Not accustomed to writing business plans? Our clothing line business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a clothing line in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

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Clothing line business plan template content


This template includes a complete business plan, with a financial forecast and the following sections:

  1. Executive summary:
    The executive summary gives the reader a clear and concise overview of your business idea
  2. Company:
    This section lays out the structure of your business, including its location, management team and legal status
  3. Products and services:
    Here, you'll give an overview of the services or products offered by the company
  4. Market analysis:
    The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
  1. Strategy:
    This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
  2. Operations:
    This step lays out the company's operational organisation, including the recruitment plan
  3. Financial plan:
    The financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
  4. Appendices:
    This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
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Clothing line business plan template extract


Executive Summary

Business Overview

En Veux-Tu En Voilà will be a women's clothing line using eco-friendly fabrics and materials.

Selling shirts, t-shirts and dresses, our clothing line will specialize in the use of natural cotton to promote an ethical manufacturing process that respects both the environment and humanity.

Our mission will be to sell products to a mature female clientele that is aware of the changes in the fashion industry and wishes to contribute to sustainable development and the protection of the environment and workers.

We wish to offer a high-end image for quality clothing that responds to the "Who Made My Clothes" movement.

We will highlight the individuality of our clothes and accessories, as well as our expertise in the world of ready-to-wear fashion.

En Veux-Tu En Voilà will sell its clothes exclusively through its website.

With its head office located at 20 rue de la Gareà Caen, En Veux-Tu En Voilà will be a limited company with a share capital of €10,000.

The company will be managed by its founders, Victoria and Amélie, two veterans of the ready-to-wear fashion industry. They have known each other for more than 10 years and have very complementary skill-sets.

Market Overview

French Market

According to the 2018 French Federation of Women's Ready-to-Wear (FFPAPF) report, fashion in France generates a total turnover of €154 billion.

Textiles and clothing represent €66.3 billion or 43% of this total. The remainder is shared between shoes, leather and leather goods, as well as glasses, jewellery and perfumes.

It is important to note that the market has lost 10% of its value in ten years and that the 2018 figures are also down compared to the last five years.

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This is explained by a sharp decline in the budget, a decrease in the number of pieces purchased per year, as well as an increase in promotions, sales and private sales that impact the average price.

The array of choices on the market and pressure to decrease prices has also become a problem for some industry players, who are struggling to keep customers interested.

Target Market

We target French women between 40 and 60 years old who buy online and are passionate about ethical fashion, whilst looking for a high-end and sustainable product.

According to INSEE, there are 4.3 million women in our target age category in France. French women aged 40 to 60 spend an average of €433 per year on clothing, and 85% of them have bought clothes over the Internet in the last 12 months. They earn an average of €35,000 per year.

As our clothing line does not have a showroom, all our sales will be made online.

We believe we can fulfill the desires of our target customers thanks to the experience of our managers in the ready-to-wear fashion industry. The clothing lines for which Victoria has worked has allowed her to develop an understanding of the expectations of this customer segment and design clothes that meet them.

Competition

We will be in direct competition with other online retailers offering eco-friendly clothing, including:

  • Ekyog
  • Tuffery Workshop
  • Hoopal
  • José
  • Modetic
  • Filabio

Many of these websites offer products akin to ours, making the level of competition high.

Ekyog's target market is the same as ours: older women who are concerned about the environment but are still looking for good quality products.

The other clothing lines, adversely, focus on a younger clientele and often choose to specialise in one particular product, such as a bag or jacket. They target men in particular, with brands such as Atelier Tuffer emphasising the fact that their products are manufactured locally.

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We believe we can carve out our place on the market because eco-friendly and ethical fashion is a growing phenomenon in France. There are fewer ethical clothing lines in comparison to the wide range of fast fashion brands, so the market remains unsaturated for now.

We rely on the originality of our products, our high-end image and our ethically conscious business model to distinguish ourselves from existing players on the market.

We will also be in indirect competition with independent ready-to-wear fashion brands that, whilst not offering sustainable products, still target the same clientele as us, as well as second-hand clothing shops, and websites that facilitate the resale or exchange of clothes between people, such as Depop.

We view the level of competition with our clothing line as moderate given that the customers we are targeting are looking for a product that's both ethical, good quality and high-end.

Key Figures

We expect to achieve €257,500 in turnover for the first year of activity. We expect to be profitable from the second year of operation, with sales of €490,000 and EBITDA of €9,756 (or 1.99% of margin).

Thereafter, we expect to achieve sales of €633,250 and EBITDA of €22,736 (or 3.59% of margin) in year 3.

The improvement in EBITDA margin as the business develops is mainly due to a reduction in the weight of advertising expenses following the development of organic traffic to our site and customer loyalty, as well as better absorption of fixed costs following the growth in sales.

We expect positive cashflow generation from the second year of the plan.

The company should be sufficiently capitalized to repay its loan, while maintaining an adequate level of liquidity to meet any unforeseen events.

Our Ask

The launch of our clothing line will require €100,000 to cover the investment required to create the business and the first collection, and to have sufficient cash reserves to keep the company running until it reaches break-even.

The partners have invested €75,000, i.e. 75% of the sum, and we would like to obtain a 5-year term loan of €25,000 to finance the remainder.

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