Ian Dereck Oyoo Oduori

BUSINESS PLAN TO OPERATE A&I CLOATHING Buying and Selling of second hand cloths Period: 6 months Prepared by: Ian Dereck Oyoo Oduori Telephone:-/- Email:-29/July/2023 Executive summary This business plan is developed with an aim of understanding the market, competitors, production and financial feasibility hence minimizes its failing. A&I clothing is a start up clothing service to be located in Nairobi, Donholm estate. It expects to catch the interest of a regular loyal customer base with its broad variety of clothing ranging from ladies wear, gents wear, children wear and also women and men wear. The business plan to build a strong market position in the area and due to the experience I have in the fashion industry will help and the mild competitive climate in the area. The business aims to offer its product at a competitive price to meet the demand of the people. Owner’s contribution wills be ksh 63,000 and a financial support of ksh 95,000 which will make an initial capital of ksh 158,000 Business description The business is a parternship type where all operations will be carried out by the two owners. The business owners are young, enthusiastic, and hardworking entrepreneurs with an ambition to meet the satisfactory demand of the customers when it comes to fashion. The local area, Donholm is a vast demographic location with a condusive business environment with a growing number of young populations demanding to keep up with fashion and our business is aiming to meet these needs. The business will be advised by the following identified organization/institution; NIC Bank, audit firm and business consultants. Goals and Objectives 1. Short term goals Establish a reliable market. Generate income and earn a living To improve the service delivery 2. Long term goals Pay off debts Realize a 30% profit after 6 months Establish a national market outlets To create a home page in the internet about the business Diversify to new outfits from international export i.e. from Dubai etc Marketing plan A&I clothing has identified the youths mostly between the ages of 15 to 35 years as its target customers. They have been grouped as the customers with highest demand for fashion in the local area. The prices will be from 150 the lowest to the highest 800 ksh per piece of cloth. The product will be denim jeans for ladies, dresses both casual and official for ladies and sweat pants which are unisex and t-shirts’ for both genders. The business has competitors which will be countered by online marketing and house to house deliveries. Promotion and advertisement of the business will be done by the following program; Internet, printing of posters, brounchures, business card and one on one customer relation. Business operation The main business operation that will be carried out include; going for the bales at the main market Gikomba, then sorting them out from first camera and selling them at different prices. The business will be operated at rented premises where by regulations and laws pertaining to business will be adhered to. Management and organizational plan This will be done by the talented and experienced team members Position Role Managers Supervision Marketing Book keeping Networking and collaboration Sales Person Marketing and promotion Financial plan 1. Pre-operational costs (Formation expenses) 6 months No. Item Cost (ksh) 1. Bale of Denim 20,000 2. Bale of sweat pants 12,000 3. Bale of Dresses 12,000 4, Rack for display 10,000 5. Rent @ ksh 8,000 per month 64,000 6. Business permit 7,000 7. Fitting mirror and counter 15,000 8. Transport 12,000 9. Electricity 6,000 Totals 158,000 2. Source of capital (proposed capitalization) No. Item Amount (ksh) 1. Own contribution 63,000 2. Loan 95,000 Totals 158,000 Income Statement Item Unit sold Average price per unit 3 months revenue Bale of Denim-,000 Bale of Sweat pant-,000 Bale of T-Shirt -,000 Total 120,000 Expected Gross Margin Item cost 3 months revenue Expected gross margin Bale of Denim 20,000 50,000 30,000 Bale of Sweat pant 12,000 40,000 28,000 Bale of T-shirt 12,000 30,000 18,000 Total 44,000 120,000 76,000