Anik, Business Plan Example

ExecutiveSummary

The below business plan is designed to provide information about a start-up business in London’s Brixton area for opening an urban store, focusing on street sports, such as skateboarding, modern, fashionable clothing, and upbeat music. ANIK would fill an existing gap in the current market, and serve the local customer, while becoming an important cultural and urban hub in South London.

GeneralCompanyDescription

The creators of the new business have an extensive experience in Fashion buying and Design, and they are aware of the latest London trends. With great commercial and cultural connections, the creators of the business would be able to bring awareness to the new project. The opening of the new store would create a great opportunity for urban  designers, musicians, and artists to feature their work, and for customers to purchase unique, hand-picked items. The shop is aiming to become one of the most recognized specialized retailers in the urban market. As there are no competitors within a 4 mile radius from the proposed location of the store, the new business venture would fill a gap in the local market.

ProductsandServices

ANIK  would sell Internationally sourced, high standard designer clothing for skaters, urban culture enthusiasts, and artists, We would like to put emphasis on independent brands and feature unique designers from the United Kingdom and worldwide. Over time, ANIK would also like to feature their own line of products, including designer skating wear, exclusive apparel and accessories, and sports equipment. Further, the owners would  like to utilize the shop space to host cultural incentives in the form of exhibitions, supporting local artists: designers, musicians, and performers. This would be a method of engaging with the specific market segment, while creating awareness of the store in the local area.

Market Research

According to recent research, the global urban wear market is growing every year (source: http://www.fibre2fashion.com/industry-article/39/3805/the-growth-of-urban-wear1.asp). The main concern of buyers in this industry is whether the apparel and accessory is unique and authentic. Currently, there are several designer outlets in London, selling the same style and brands, however, a part of the urban culture is that customers are looking for new ways to express their personality. Most customers are concerned about the quality of the designer items, therefore, they are more likely to buy from a store than from the internet. Urban culture is also highly dependent of word-of-mouth advertising, and this means that popularity within one niche can be quickly achieved. Further, the Edited  magazine confirms that “There will continue to be growth in the youth market as spending power of this segment is so high; they’re big consumers, continually seeking newness”. This opens up opportunities for companies like Anik to target the young, affluent, and individualistic customer segment.

Economics of the Urban Fashion Market

According to the Fashion United website, the total size of the UK fashion industry in February 2014 was £26 billion, up by £21 billion in 2013. The designer and personalized clothing industry is also believed to be growing at a high rate.  The annual growth rate of the UK fashion industry is also predicted to be 1.3 percent (Ibis World).

Product

ANIK is planning to stock a bold selection of hand picked brands, presenting work from established companies and emerging, independent designers. We will supply consumers with the latest in contemporary wear and performance apparel in an urban style.

Customers

51% of Brixton’s population is aged between 20 – 42. Around 157,000 residents fit directly with our target consumer niche, aged 15 – 35. Our business will strongly appeal to an individual who appreciates Design, Fashion and Music. Students and young professionals would take up a high percentage of our projected client base. However, we intend to appeal in diverse ways to a much broader client spectrum. The style and preferences of today’s urban skater is more varied than ever before. Skateboarding is a huge part of fashion, contemporary visual culture and urban environment. Further, according to the Fashion Manufacturing website, based on the research of VisitBritain.com, almost quarter of a million tourists listed shopping as one of the main reasons for visiting England. A large proportion of these tourists is concentrated in London.

Financial Plan

The small grass roots company, ANIK would need to secure a finance or investment of £30.000  to cover the cost of lease,  equipment, licenses, insurance, and initial stock. Marketing would be mainly based on social media and online advertising, in order to keep the budget low. Employee costs would be kept low, as the owners would manage the store personally, and deal with clients in person. The running cost of the business would be around £5.000 per month, and after the first three months, the business is expected to realize a turnover of £10.000 at an average profit margin of 27%.

After the first six months of operation, ANIK is planning to move onto selling individual items online, using auctions and its own website. This will significantly increase turnover and profits.

Taking into consideration the running cost of £5.500  (extra £500 for running the internet service), the business could realize a net profit of £8.000 each month. This would allow the ANIK to create more awareness about the store, make it a desired urban destination within London, and grow the business, and create their own line of clothing and urban sports goods, further increasing revenues.