It is tempting to jump right into the fun part of designing your line when launching a new product. We love that part too! However, before you even start to design your new product line, it is important to create a business plan. Writing a business plan can sound scary. But, unless you are seeking funding from a financial institution your business plan doesn’t necessarily need to be that overwhelming. We suggest a basic business plan outlining a few specifics for the apparel industry. Below is our top 5 list of questions that we suggest you address in your plan.
1. Who is your target market? It is important to really understand your target market as it will drive the development of your product. You need to understand such things as basic demographics (age, income, location, etc.) where they shop, how they think (what are their values) and their spending habits.
2. How are you going to sell your product? There are a few different avenues for selling your product. Are you going to sell direct to customer? Are you going to sell wholesale to boutiques and stores? Your sales strategy will determine how you price your product.
3. What is your price point? Pricing your product for a profit is key to financial success. Your target market will drive your desired price point and then you will need to do a costing analysis to establish if you can sell your product for that price. It is a juggling act, but an important one to balance.
4. Who is your competition or “who do you want to hang with”? It is important to identify who you would want to hang next to in a store. Even if you sell direct to consumer you will want to know what other brands your target customer also identifies with.
5. How will you finance this venture? Are you going to self finance? Are you going to do some crowd funding? You will certainly need some capital to launch your line so it is important to have a plan in place.
Do you need help with your business plan? We can help!