4. Marketing strategy
The marketing strategy is the phase where you decide how you will sell your clothes.
How will you sell your clothes? Online, offline, or both? E-commerce is booming for years, so a webshop is certainly a good idea. Also offline selling (in retail shops) is necessary. Find out which stores fit your style and ask them if they want to sell your clothes. There are a bunch of interesting masterclasses you can follow in our academy to answer all of your questions. Make sure to check it out!
Thereby, you have to find out how you communicate with your audience. Choose the most effective communication channels (social media, website, blogs…) and communicate on a regular basis. You can organize giveaways on Facebook to have more likes.
I recommend you to read the post about 17 successful marketing strategies to take your clothing brand to the next level. You will be surprised about all the possibilities to boost your clothing label.
5. Financial section
The purpose of the financial part of your business plan is two-fold. First, you will have to find out if you need investors or partners. They will have to see the financial numbers of course. The second reason, and that’s the most important, is to calculate your own benefit.
How do you write the financial part of the business plan? These 6 items are absolutely necessary:
- Sales Forecast
Start with a sales forecast. For every month for the first year, you can set up different lines of sales. This can be measured on the results of the past year(s). If you’re starting a clothing brand, you can make an educated guess.
- Create an expenses budget
How much is it going to cost if you actually make the sales you have forecast? Take into account the fixed costs and the variable costs.
- Cash-flow statement
Let’s move to the third step: develop a cash-flow statement. The cash flow measures the total amount of money that goes in and out of your business per month. This is very important, as you have to measure your cash reserves.
- Income projections
A projection statement makes you look ahead and helps you to make some estimates about the financial status of your business. Shortly said, these are the profits that the company will have in the future. In other words: the profit and loss statement.
- Assets and liabilities
Next, you have to deal with assets and liabilities that are not in the profits and loss statement. Let’s explain it easy: an asset is anything that puts money in your pocket, and a liability is anything that takes money from your pocket.
- Break-even analysis
Last step: set up your breakeven analysis. The break-even point is when your business’s expenses match your sales or service volume. Your business is viable when your overall revenue will exceed your overall expenses.