Sky High Clothing

May 10,2013

Sky High Clothing

Executive Summary
A Clothing line company
CompanyBackground
Business Description
: Sky High Clothing is a clothing line company that focuses on
mostlysellingdesignedtshirtstoteensandyoungadultstostepuptheirstyle
Business Model
: Sky high clothing will providemany differentvarietiesofstyletoour
clients. Each design is thoroughly thought through and brought to our customers by
usingpartoftheirfeedbacksandcommentsontheclothes.
Mission Statement
:
My mission statementhelpsmeandthecommunityinsmallways.
Basically I give backbecause I want to focusonimproving my surroundingsandarea
which I live in. Style is what we bring, oneindividualatatimewithuniquedesigns.
styleiswhatpeoplelookforsowearetherightpeoplewhowillgiveittothem.

MarketOpportunity
Opportunity
: To bringpeoplehighqualityclothing withuniquedesignsbutalso atan
affordable price. No matter what it takes, were going to doit.Wewillstartbyusing
our customers feedback and fusing it with our own ideas to guarantee people will
lovewhattheyget.Theresonlyalimit100perdesign.
Target Market
: My target market is teens and young adults inthe sanFranciscoarea
thatlikeandbuycreativeclothesevery23weeks.
Industry Overview
: The clothing apparel business is one of the biggest and most
visited establishments in the country. There are hundreds of thousands of different
clothing businesses nationwide and still countingbecauseofthemanyentrepreneurs.
In the San Francisco area there are 623 clothing stores. The current trend is at this
timeiscasualbutverydesignedtshirtsandsweaters.
Market Research
: thereare74,633peoplelivingintheSanFranciscoareaand41.7%
is my target market. In my survey results , 93% of people surveyed said they will
wearmydesignedandaffordabletshirts.

Leadership
I believe these are a few of the most important: Be creative. Be a detailed drawer/
thinker. Bring bestservice available. To make customers happy , give a 10 day return
policy. The most important is patience,berelaxed andwaitforthecustomer.Thoseare
aroundthemostimportantqualificationstohavemyclothesbrandsuccessful.

Contact Information
Robin
510-576-9411
Rojasrobin29@gmail.com
Sky High Clothing
San Leandro ,CA
94577
Year Founded
2013
_____________
Investment Opportunity
$883.08
Annual Operating Costs
*
$2,689.92
Annual Sales
*
$11,340
Annual Profit
*
$2,286.43
Return on Sales*
20%
Return on Investment
*
258%
Breakeven Units/Month
*
23
*Projected

Sky High Clothing

May 10,2013

Sky High Clothing

Business Plan
[Insert tagline]
1.
1.1

OPPORTUNITY RECOGNITION & BUSINESS STRUCTURE

Business Opportunity

Mybusinessopportunityistobringpeoplewhattheywantwhichisqualityclothesthats
uniqueinmanywaysbutisalsoatanaffordableprice.Tomakesurethathappenswewillgather
feedbackfromthefansandcombinewithourideastocreateuniquedesignsthatleavethe
customersinaweandwantingmore.Wewilldoeverythingpossibletobringfullsatisfactionto
ourcustomers.Foreverynewstylethatisreleased,therewillbealimitof100,thereforeitsa
firstcomefirstservebasis.

1.2

Type of Business

Mybusinessismixedwitharetail&manufacturer.Sincewedohandeditstoall
products.Itsmostlyretail.
1.3

Type of Business Ownership

Therearemanytypesofownerships.Mybusinessisasoleproprietorship.ThismeansI
getallprofitonmybusiness.SowiththeprofitIwillgivesomebacktothepeopletohelp
improvethecommunity
1.4

Mission Statement

Mymissionstatementhelpsme&thecommunityinsmallways.SobasicallyIgive
back.Styleiswhatwewillbringyou,oneindividualatatimewithuniquedesigns.Styleis
whatpeoplelookforsowearetherightpeoplewhowillgiveittothem.
1.5

Social
Responsibility

ThemainresponsibilityforSkyHighClothingistomakesureIputthatsmileona
customerastheyleave.HappinessisthemostimportantthingyoucanbringtoapersonsoIwill
trymybesttobringthattothecustomers.Iwillmakesuretheywilllovewhattheybuyand
leavethemthinkingthattheyshouldcomebackformoreclothes.Anotherimportantthingis
givingbacktothecommunity,Iwanttomakethataspossibleascanbe.

1.6

Qualifications

Theressomanyqualificationsoneneedstobesuccessful.Ibelievetheseareafewofthe
mostimportant:Becreative.Beadetaileddrawer/thinker.Bringbestserviceavailable.To
2

Sky High Clothing

May 10,2013

makecustomershappy,givea10dayreturnpolicy.Thosearearoundthemostimportant
qualificationstohavemyclothesbrandsuccessful

Sky High Clothing

May 10,2013

2.
2.1

MARKET RESEARCH
Market Research

Theclothingapparelbusinessisoneofthebiggestandmostvisitedestablishmentsinthe
country.Therearehundredsofthousandsofdifferentclothingbusinessesnationwideandstill
countingbecauseofthemanyentrepreneurs. IntheSanFranciscoareathereare623clothing
stores.

2.2

Target Market

Demographic Information
:
Youngadultsandteensthatlovecreativityandwouldntmindmuch
abouttheprice
Geographic Information
:
SanFrancisco,California,area
Psychographic Information
:
Wantsqualityclothing,creativedesigns,iswillingtogoalittlehigh
intheprice,andstandsoutfromotherbrands
Buying Patterns
:
buysnewclothesevery3weeks1month
2.3

Competitors

DirectCompetition:Thereare100otherentrepreneurshipbusinessesperformingatypeof
clothingbusinessintheSanFranciscoarea.Outofthose100,about30advertisethelooksof
theirapparel.Afterfurtherresearch,only3explainthequalityoftheappareltheysell.The
averagepriceforthepriceofapparelsuchasTshirtsisaround$25$34.SkyHighClothingsell
tshirtsfor$20soitsprettyaffordableandachallengeforthepopularentrepreneurs.

IndirectCompetition:SanFranciscoareafranchisesandenormousbusinesses,peoplenormally
gothesestoresbutstoresgivetheircustomerstheminimumqualityonapparelandnotmuch
design.Someareveryexpensiveandveryfewareinexpensivebutnotverystylish.
2.4

Competitive Advantage
1. SkyHighclothingwillgetcustomersfeedbackonwhattheylike.
2. Itwillbringqualityandstyletogivepeopletheirmoneysworth.
3. wewillshowthekindofqualitycottonweusetokeepcustomershappy

2.5

Business Growth

ShortTermBusinessGoals:initsfirstyear,SkyHighclothingwontprobablysellmuchbut
willbeabletospreadthebrandnameoutandwiththatwithcreateadescentcustomerbaseset.It
willcomeoutwithanewcollectionforeveryseason.Thatwillhelpreachthecompaniesgoalof
$10,000thefirstyear
4

Sky High Clothing

May 10,2013

LongTermBusinessGoals:SkyHighclothinghasanambitionthataftereverythinghasbeenset
inandsettleddown,thecompanywillexpandandopenastoreinLosAngeles.Alsogetthe
chanceformoreopportunitiestogetcustomersortagalongwithothercompaniestocreatea
speciallimitedcollection.Finallybeabletotripleourincomeyearbyyear
2.6

Challenges

ShortTermBusinessChallenges:thebiggestchallengethatSkyHighwillfaceinthestarting
yearsisgettingrecognized.Thecompanywillnothavemuchpopularityinthebeginning
becauseofthebudget

LongTermBusinessChallenges:thebiggestlongtermchallengeforthecompanyisquantity
andstores.Thecompanywillneedtoopenastoreassoonaspossibletodrawmorecustomers
andtostoreabiggerquantityoftheitemsitssellingsopeoplecangetmoreofwhattheywant.

Sky High Clothing

May 10,2013

3.
3.1

PROMOTION & SALES

Marketing Plan

Sky High clothing will plan to market mainly on young adults and teens that look for good style.
It will also be on somewhat skaters because of the way it goes with it. On research we saw that
they spend around $30 for the shirts. The following will state a few of the customer benefits.
The marketing plan will highlight the following customer benefits:
1.
2.
3.
4.
3.2

Less Money Spent on clothes

More detail than other brand names
30-day money back guarantee
Better style from what they wear

Promotion

Sky-high clothing will engage in 2 types of promotion methods: creating a website, and
promotions at local events.
1. CompanyWebsite:wewillconstructawebsite,itwillprovidecustomerswithother
peoplesfeedbackandhowtheprocessingofourclothesgoes.Wewillhaveasignup
pagewhereyouprovideanemailtogetmailedpromotionsandinformationofwhenthe
newcollectionwillcomeout.

2. PromotionsatLocalEvents:SkyHighclothingwillparticipateatlocaleventsfromwide
varieties.Wewilloffercontestsforafreeshirt.Advertisementsandinformationabout
ourbrand.Wewillalsobeannouncingexclusivestherebeforeanywhereelse.

3.3

Sales Methods

Sky high will do a few types of sales methods. From personal selling to Relationship-selling. It
involves contacting me to meeting up with businesses to sell my products.
Steps a consumer follows to purchase my product :
1. Customers will contact me by phone to see when they can come pickup and buy a shirt.
2. Meetings will be scheduled with local businesses to find out who wants to sell my
product and help advertise

3.4
Factor

Sales Estimates
Influence on sales

Sky High Clothing

May 10,2013

Maximum Capacity
Break Even Units
Seasonality

Month
January
February
March
April
May
June
July
August
September
October
November
December
Annual Total

sky high will have a maximum capacity of 22 per week, which means a
total of 80 customers a month
Sky high will have to sell at least 5 units a month to cover the expenses.
My estimates are above the breakeven point.
Sky high will not be affected because my clients will keep buying the
clothes no matter the month or day
Units
78
40
88
40
88
20
35
88
25
78
88
88
756

Revenue
1,170
600
1,320
600
1,320
300
525
1,320
375
1,170
1,320
1,320
$11,340

Sky High Clothing

May 10,2013

4.
4.1

FINANCIAL INFORMATION & OPERATIONS

Definition of One Unit

One unit is identified as one single T-shirt.

4.2

Variable Expenses
Materials
Material Description

One t-shirt
Screen print

$0

Labor
Time (in hrs) to make one
unit
0 hours

Material Costs
$9.95

EOU
Labor Costs
$0

Cost of Labor per Hour

4.3

Bulk
Quantity
Quantity
per Unit
$1.25
1
1
$8.70
12-23
$8.70
Total Material Costs per Unit

Bulk Price

Cost per
Unit
$1.25
$8.70
$9.95

Total Labor Costs per Unit

$0

TOTAL EOU
$9.95

Economics of One Unit

Selling Price per Unit

Variable Expenses per Unit
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold

$20

$9.95
0
$9.95

Other Variable Expenses

Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses

$10.05
$0
$0
$10.05
$10.05

Contribution Margin per Unit

4.4

$10.05

Production Process

Description of Step

Time
8

Cost

Sky High Clothing

May 10,2013

1.
2.
3.
4.

4.5

I buy the shirts ay wholesale price

I consult with the screen printing company
I get the shirts screen printed on
Sell the shirt to the customer

15 minutes
20
1 day
10 minutes

Fixed Expenses for

One Month

Expense Type
Insurance
Salary
Advertising
Interest
Depreciation
Utilities
Rent
Other Fixed Expenses
Total Fixed Expenses

Monthly Cost
$0
$0
$100
$0
$0
$4.16
$120

Explanation

Well will have raffle giveaways in local events

I only use up 20% of room for operating my

business

$0
$224.16

$17.50
$0.00
$99.5
$20

Sky High Clothing

May 10,2013

4.6

Income Statement for

First Year
of Operations

REVENUE
Gross Sales
Sales Returns
Net Sales
VARIABLE EXPENSES
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold

$11,340
$11,340
$0
$11,340

$7,522.2
$0
$7,522.2

Other Variable Expenses

Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses

$0
$0
$5
$5
$7,522.2

CONTRIBUTION MARGIN

$3,817.8

FIXED OPERATING EXPENSES

Insurance
Salaries
Advertising
Interest
Depreciation
Utilities
Rent
Other fixed expenses
Total Expenses

$0
$0
$1200
$0
$0
$49.92
1440
$2689.92

PRE-TAX PROFIT
Taxes (15%)

$2689.92
403.488

NET PROFIT

$2286.43

10

Sky High Clothing

May 10,2013

4.7

Startup Investment

Item
12 plain shirts

Why Needed
[to use to screen print on]

Vendor
[t-shirtwholesale.com
]
[]
[text]
[text]
[text]
[text]
Total Startup Expenditures

Screen print on 12 shirts

[text]
[text]
[text]
[text]

To sell the shirts

[text]
[text]
[text]
[text]

Emergency Fund
(1/2 of startup expenditures)
Reserve for Fixed Expenses
(covers 3 months of fixed expenses)
Total Startup Investment
4.8

Cost
$[21]
[119.4]
[value]
[value]
[value]
[value]
$[140.4]
$70.20
[672.48]
$[883.08]

Financial Ratios

Return on Sales (ROS):

Annual Net Profit
Total Annual Sales

$[2286.43]
$[11,340]

[20]%

$[0.20]

[258]%

$[2.58]

[22.3]

[23] units

Return on Investment (ROI):

Annual Net Profit
Total Startup Investment

$[2286.43]
$[883.08]

$[224.16]
$[10.05]

Breakeven Units (Monthly)

:
Fixed Monthly Expenses
Contribution Margin

11