A_Business_Plan_Readymade_garment_shop.docx

A Business Plan – Readymade garment shop
2022
Submitted by Guided by
Rasneet Kaur Dr. Gurpreet Singh
(Internal Guide)

Acknowledgement
Every piece of hard work requires the combined efforts and talents of many
people. An Ambitious work of this kind, providing analytical review to the
subject would have remained a concept rather than the finished product
without co-operation of those who respondent to our request to contribute.
I am very much graceful to our respected Director sir Dr. Gurpreet Singh who
has enriched my knowledge and gave me a moral support to do this report. I
am also highly thankful to Dr. Gurpreet Singh Sidhu (internal guide) in my
college for showing the right path and encouraging me for the preparation of
this report. I extremely thankful for his involvement and interest and
providing necessary guidance regarding concept clarity of the project and
support during all the stages of this project.
I am very much thankful to all those people who gave me their valuable time
and related information about the project.
Name & signature of the student
Rasneet Kaur
Preface

A student without practical Knowledge is just like a rough student. To polish
and shape the student one must have the practical knowledge of what he has
learnt. For the management students, theoretical knowledge is just like lock
without key, so practical knowledge is of utmost importance.
It is quite true that world outside: your cosy home is many times quite different
from what you have perceived. Similarly it is possible that theoretical
knowledge acquired in the classroom may differ from the practical
knowledge.
I have made my business plan on the topic retail garment business and I have
described about the business “READYMADE GARMENT SHOP”. The
description in the project is about how to launch a garment shop on a small
scale business and what are steps taken to launch a shop in a particular market.
It is a business which runs on a small scale so not a deep research is done but
a personal interview method is followed to collect the information from
different retail garment shops and only few shops are surveyed by me. The
further description is about the products offered, the expenses & the various
taxes, the owner of the shop & workers in the shop.
Name & signature of the student
Rasneet Kaur
Contents

Chapters Page no
Executive Summary of Business Plan 1
Chapter-1 Introduction 2
1.1 Introduction of the retail industry 3
1.2 Description of Business and target markets 10
1.3 Objectives of Business Plan 14
Chapter-2 People (Management Team) 15
2.1 Description of management team 16
Chapter-3 Environmental Scanning of Business 22
3.1 Industry Analysis 23
3.2 Competitors Analysis (SWOT of Competitors) 30
3.3 Opportunities and Reasons of Entry of Business 32
3.4 Limitations of Business 33
3.5 Strategies framed to overcome environmental Challenges 34
Chapter-4 Manufacturing and Operations 35
4.1 Location of Production facilities 36
4.2 Plans for expansion 37
4.3 Product modification necessary to adapt to local environment 38
Chapter-5 Personnel Strategies 40
5.1 Personnel needed to manage Business 41
5.2 Experience and expertise of existing personnel 42
5.3 Training needs of existing personnel 44

Chapter-6 Market Research 46
6.1 Market Conditions 47
6.2 Existing Demand of target Market 47
6.3 Competition 48
6.4 Strengths and weaknesses of the Industry – Barrier to entry 49
Chapter-7 Marketing Plan 52
7.1 Distribution Strategies 53
7.2 Pricing Strategy 54
7.3 Promotion Strategy 55
7.4 Products Strategy 56
7.5 STP (Segmentation, Targeting and Positioning) 57
Chapter-8 Financial Decisions 59
8.1 Performa financial statements and projected cash flows 60
8.2 Identification of key assumptions 64
8.3 Current sources of funding – Private and Bank funding 65
8.4 Financial needs and future needs of funding 65
8.5 Tax Consequences of Business 66
8.6 Potential risk and sources of protection 67
Risk in Business 68
Implementation Schedule 69
Appendices 70

Bibliography 71
Executive summary of the business plan
With the change in the trend in fashion market Readymade Garment have become very
popular. Most of the people used to wear readymade garments have become very popular.
Most of the people used to wear Readymade Garment in case of time saving activity.
Especially ladies, kids, teenage girls and college going girls have taken very much interest
in new designs and fashionable garments.

Today, the women especially working or homemaker want to look gorgeous without being
too traditional.
I have decided to open a readymade garment shop to introduce new category of clothes in
the market which may be something different from the clothes already available in the
market.
I have named my garment shop “TRENDZZ” and gave the punch line to the shop
“completing the family” as I have gave this tagline to influence the customers and the
people in the mar that they attract towards my shop and took visits in my shop.
This tagline briefly means the shop completes every type of customer either girls, kids,
women, boys, kids, man and college going girls.
The owner of the shop is me and I have engaged three workers in the shop who will
contribute to the sales and profits in the business and the capital is also invested by me and
my father in the business.
The shop basically targets teenage girls and college going girls as my shop has the
availability of wide variety of kurtis, tops and other accessories.
The other clothes which are available in my store are for the daily wear, party wear and for
the ceremonies.
My shop basically has jeans & trousers, shirts & tops, skirts, track suits, night wear and
bath wear. So, my shop has the products which are related to active wear, workout gear,
leather garments, headgear and baseball jackets. It covers almost all types of customers.
My shop also provides the facility for the repair such as stitching of the clothes and altering
of the clothes.
Chapter-1
Introduction

1.1Introduction of the retail industry
The technology advances each and every sector has been rapidly developed like a
Government Sector, Engineering Sector and many more then how can the “READYMADE
GARMENT SHOP” become backward. Each and every person wants to look like a hero
and heroine. As the fashion takes place, they want to wear more fashionable clothes.
In movies actor and actresses are wearing different types of dresses. Every person wants
to look like them. With the increase in fashion every person want to wear that type of
cloths. Some people purchase cloth material and visit at the tailor shop for stitching the
dresses they like. But it takes too much time. Fashion is growing up day to day. Readymade
Garment Shops are opened. People are satisfied from Readymade Garment Shop and
people also save their valuable time. Readymade Garment Shop provides better design
dresses to customers.
With the change in the trend in fashion market Readymade Garment have become very
popular. Most of the people used to wear Readymade Garment Shop have become very
popular. Most of the people used to wear Readymade Garment in case of time saving
activity. Especially ladies have taken very much interest in new designs and fashionable
garments.
Readymade Garment Company like as Nain See Private Ltd, Saujnya Dresses, Ashika
Sarees and Dresses, Garden Dresses makes garment very attractive and it gives it special
effect to that garment or dresses to be very attractive. There work of various types of
stitches like “Kashmiri Buta, Kunadan Work or Jardari Work is become very famous in
new trend. There are various other companies are also work to give better quality product.
In recent years many people are interested in wearing Readymade cloths and specially
ladies have most interest in that type of cloths so when the researcher is a lady it takes too
much interest for the topic. So that researcher selected the subject Readymade Garment
Shop as the study of the project.
Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and
around eight per cent of the employment. Retail sector is one of India's fastest growing
sectors with a 5 per cent compounded annual growth rate. India's huge middle class base
and its untapped retail industry are key attractions for global retail giants planning to enter
newer markets. Driven by changing lifestyles, strong income growth and favorable
demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected
that retail in India could be worth US$ 175-200 billion by 2016.
The organized retail industry in India had not evolved till the early 1990s. Until then, the
industry was dominated by the un-organized sector. It was a sellers market, with a limited
number of brands, and little choice available to customers. Lack of trained manpower, tax

laws and government regulations all discouraged the growth of organized retailing in India
during that period. Lack of consumer awareness and restrictions over entry of foreign
players into the sector also contributed to the delay in the growth of organized retailing.
Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails
India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business
giants such as Reliance, Bharti, Birla and others are now entering into retail sector.
A number of factors are driving India's retail market. These include: increase in the young
working population, hefty pay-packets, nuclear families in urban areas, increasing
working-women population, increase in disposable income and customer aspiration,
increase in expenditure for luxury items, and low share of organized retailing. India's retail
boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes
that offer shopping, entertainment and food all under one roof.
But there is a flip side to the boom in the retail sector. It is feared that the entry of global
business giants into organized retail would make redundant the neighbourhood kiryana
stores resulting in dislocation in traditional economic structure. Also, the growth path for
organized retail in India is not hurdle free. The taxation system still favours small retail
business. With the intrinsic complexities of retailing such as rapid price changes, constant
threat of product obsolescence and low margins there is always a threat that the venture
may turn out to be a loss making one.
A perfect business model for retail is still in evolutionary stage. Procurement is very vital
cog in the retail wheel. The retailer has to fight issues like fragmented sourcing,
unpredictable availability, unsorted food provisions and daily fluctuating prices as against
consumer expectations of round-the-year steady prices, sorted and cleaned food and fresh
stock at all times.
Trained human resource for retail is another big challenge. The talent base is limited and
with the entry of big giants there is a cat fight among them to retain this talent. This has
resulted in big salary hikes at the level of upper and middle management and thereby
eroding the profit margin of the business. All the companies have laid out ambitious
expansion plans for themselves and they may be hampered due lack of requisite skilled
manpower.
But retail offers tremendous for the growth of Indian economy. If all the above challenges
are tackled prudently there is a great potential that retail may offer employment
opportunities to millions living in small town and cities and in the process distributing the
benefits of economic boom and resulting in equitable growth.
Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end of the supply chain.
Manufacturing marketers see the process of retailing as a necessary part of their overall
distribution strategy. The term "retailer" is also applied where a service provider services
the needs of a large number of individuals, such as a public utility, like electric power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a
partial or full roof to protect customers from precipitation. Online retailing, a type of
electronic commerce used for business-to-consumer (B2C) transactions and mail order, are
forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.
1.1.1 Growing retail space
The growth of the readymade garment industry is inextricably linked to that of retailing.
For long, the bane of the domestic readymade garment industry was the inadequacy of the
distribution system.
Apparel retailers, with little retail expertise, had to build their own network, at considerable
expense. The rapid growth in recent years of various retail formats, such as departmental
stores and malls, has given a fillip to the industry.
Players still believe that the retail industry is in its infancy. While KSA Technopak, a
textiles and retailing consultant, expects some 200 malls to come up over the next two
years, the growth in retailing is still seen with skepticism by apparel companies. Most of
these projects are executed by real-estate developers rather than retailers. The latter are,
however, better placed to understand the dynamics of the business.
A boost to the industry would come from allowing foreign direct investment in retailing,
which would increase space considerably and also bring international practices to India.
This may also encourage newer entrants, once the distribution costs decline.
1.1.2 Expanding the retail network

Apparel manufacturers were among the first to foray into organized retailing. Raymond,
Indian Rayon and Zodiac Clothing have built an extensive retail network over the years.
Even as they retail through other multi-brand outlets and departmental stores, they also
continue to set up their own outlets. Having their own outlets, they believe would help
showcase their entire range of products, as well as build their brand image.
1.1.3 Towards lower price points
The brands may not even be as expensive as they are today. The leading ones have, in the
past, been predominantly positioned in the premium segment.
There has been a market for such products; Louis Philippe shirts have sold for Rs 4,000
and more. Clearly, the promise of high quality has held value for customers.
But the strong response to a flurry of price cuts across sectors, ranging from airlines to
telecom, has shown that the branded apparel segment cannot afford to miss out on the
opportunity in mass markets for long.
One has to only see the huge response to a Color plus sale to get an idea of the growing
demand for branded clothing at lower price points. Brands have grown to depend upon
such sales to drive up their volumes.
With the exemption of excise duty on cotton garments and the creation of a level-playing
field, branded players now have a good incentive to introduce products at lower price points
for the mass market, which, till now, has been the preserve of smaller and relatively
unknown players.
But players may still find it tough to cater to this market. They would have to move towards
a low-margin, volume-driven business. This would also need a far larger distribution
network than what exists today.
Few retail formats in India operate on a truly large scale. Giants such as Walmart and
Carrefour, which have the ability to drive volumes, are what the industry would need;
however, their entry is unlikely till such time FDI is permitted in retailing.
1.1.4 Tussle with private labels
Manufacturers have found it is advantageous to have their own outlets for another reason.
The increasing share of retailers' private labels is squeezing the space available for their
own brands. The likelihood of private labels emerging as a major threat to brands has been
debated endlessly.

Private labels tend to do well during recessions. Retailers enjoy better margins on their own
labels, and are also able to price them lower.
Private labels, however, plateau in the boom periods, when brands stand to gain. Players
in the branded segment also contend that customers are eventually won over to brands by
familiarity and quality assurance.
Going one step further, private labels can help build markets for brands. For instance, the
women's apparel segment is yet to take off in a big way, but private labels have managed
to do well in this segment.
The players such as Madura Garments, which have a presence in the segment through Allen
Solly, believe that once women try out private labels and get more accustomed to Western
wear, they are likely to upgrade to a more expensive brand.
1.1.5 Types of retail outlets
A marketplace is a location where goods and services are exchanged. The traditional
market square is a city square where traders set up stalls and buyers browse the
merchandise. This kind of market is very old, and countless such markets are still in
operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run stores,
but this market is increasingly being taken over by large retail chains.
Retail is usually classified by type of products as follows:
 Food products
 Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting
goods, etc.
 Soft goods - clothing, apparel, and other fabrics.
There are the following types of retailers by marketing strategy:
 Department stores – It is a very large stores offering a huge assortment of "soft"
and "hard goods; often bear a resemblance to a collection of specialty stores.
 Discount stores – It tends to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable
and cut-rate prices.
 General merchandise store – It is a hybrid between a department store and discount
store.
 Supermarkets - sell mostly food products.

 Warehouse stores -The warehouses that offer low-cost, often high-quantity goods
piled on pallets or steel shelves.
 Variety stores – The variety stores offer extremely low-cost goods, with limited
selection.
 Demographic – The retailers that aim at one particular segment.
 Mom-And-Pop or Kirana Stores- It is a retail outlet that is owned and operated by
individuals. The range of products are very selective and few in numbers. These
stores are seen in local community often are family-run businesses.
 Specialty Stores- A typical specialty store gives attention to a particular category
and provides high level of service to the customers. A pet store that specializes in
selling dog food would be regarded as a specialty store.
 Convenience Stores- These stores are essentially found in residential areas. They
provide limited amount of merchandise at more than average prices with a speedy
checkout. This store is ideal for emergency and immediate purchases.
 Hypermarkets- provide variety and huge volumes of exclusive merchandise at low
margins. The operating cost is comparatively less than other retail formats.
 Supermarkets- It is a self service store consisting mainly of grocery and limited
products on non food items.
 Malls-They have a range of retail shops at a single outlet. They endow with
products, food and entertainment under a roof.
 Category Killers or Category Specialist- By supplying wide assortment in a single
category for lower prices a retailer can "kill" that category for other retailers. For
few categories, such as electronics, the products are displayed at the centre of the
store and sales person will be available to address customer queries and give
suggestions when required.
Some stores take a no frills approach, while others are "mid-range" or "high end",
depending on what income level they target.
Other types of retail store include the following:-
 Automated Retail stores are self service, robotic kiosks located in airports, malls
and grocery stores.
 Big-box stores encompass larger department, discount and general merchandise
and warehouse stores.
 Convenience store is a small store often with extended hours, stocking everyday or
roadside items.
 General store is a store which sells most goods needed, typically in a rural area.

1.1.6 Prevailing trends in Indian readymade garment industry
Textile industry in India is widely comprehensive, integrating whole range of raw material
to finished product that includes fiber manufacturing, spinning, knitting and weaving, and
garment manufacture.
The industry provides almost every single aspect which is as follows:-
1. Raw material
It can be cotton, linen, and wool, silk and manmade fibers like viscose, polyester,
polypropylene and acrylic. Indian companies have marked presence in even non-traditional
segments.
2. Fabric production
It includes suiting-shirting, dress material, fabrics for shorts and trousers, denim, hosiery,
fleece flats and woolen knits, technical fabrics and so on.
3. Apparel production
It specifies formalwear, casual wear, active sportswear, traditional wear, under garments,
outerwear, kids wear, and you name it produces.
4. Made-ups production
A wide range of bedding, towels, bath, table mats/linens, kitchen accessories and more.
Additionally, to aid above all there are well established infrastructure, multi-benefited
governmental, political and regulatory system that would lure foreign investors.
In recent years, the readymade garment segment has seen vertical growth. Accounting
nearly Rs. 20,000 crores, this industry is growing at the rate of 20 percent, with massive
visibility and consideration margins. The largest segment for the readymade garment
segment includes the age-group of 16-35 that is very brand conscious and gives priority to
high quality. Branded readymade garments account over 21 percent of the readymade
garment industry.
1.2 Description of business and target markets

1.2.1 Shop history
The shop “Trendzz” is a type of discount store or a readymade garment shop for children,
women, teenage girls, kids, infants, gents and boys. The clothing line that is unique, special,
comfortable, and fun. My store targets the people which belong to middle class and upper
middle class. However, my store has no collection of the raw materials but works for
readymade garments and made-to-order preparation of clothes, stitching, threading, pitch
work and designing & cutting of the clothes.
My shop has brought the store look to the masses, and made it simple and affordable for
anyone to get the readymade garment store look. All of their tops, bottoms, basics and
accessories from each individual line coordinate with one another, making it easy for
anyone to put together a well coordinated and princess worthy outfit.
Store name: - Trendzz
Shop address: - Shop no-12, D-12 block, Sector-7, Rohini.
Punch line: - Completing the family
Location of the shop: - D-12 block, Sector-7, Rohini
Shop area: - 10/10 square feet
Qualification: - Minimum qualification is 10+2/Graduate
Experience: - 2 years
Number of sales persons=3
1.2.2 Essential requirements
1. Machines & equipments=2(for stitching and repairing of clothes).
2. Threads & stitching accessories.
3. Office desks & chairs= 10.
4. Desk lamps= 10.
5. Clothing stands= 15.
6. Shelves and cabinets for storage=10.
7. Lights & 10 table fans.
8. Clothes hangers= 20.

9. Billing machine and credit card machine=1.
10. Polybags= 40.
11. Stationary items.
12. Stools= 10.
Equipment or helpful products that you can acquire to once your business is off and
running:-
1. Dressing rooms and mirrors.
2. Warehouse and godown.
3. Additional display furnishings.
4. Draperies, floor coverings.
5. Seating (small couches, chairs).
6. The restroom.
1.2.3 Target markets
My shop has chosen girls, kids, women and gents as these most attractive segments to
target. These segments are the most desirable because they have desirable levels of
disposable income and they spend it. The women are used to having fashionable clothes
and accessories and it is totally consistent with their purchasing patterns that this preference
would remain unchanged once they get pregnant. Many expecting women like to reward
or pamper themselves with nice gifts when they're pregnant.
Family is interested in buying nice gifts for their expecting friends. This segment
recognizes their friend's appreciation for nice things and are looking for something that
they know they will enjoy. The output is meant to be something nice and luxurious. Much
of the current maternity wear and accessories are utility based and while they serve their
purpose, they are not the most engaging gift. Family are looking for something that will
stand out, that the new mothers will truly enjoy.
1.2.4 Market need

1. To give something new innovation.
2. To have the best quality in minimum price.
3. New clothes.
4. New pattern of clothes.
5. Provide in bulk.
6. New attractive designing and good fitting of the clothes.
7. Meeting each type of requirements of customers regarding clothes.
8. To meet immediate requirements of the people.
1.2.5 Target markets
1. Sector-7 market, Rohini.
2. Sector-1, Avantika market.
3. Sector-2 market.
4. Sector-3 market.
5. Sector-5 market.
6. Sector-9 market.
7. Sector-8 market.
8. Market in Kohat Enclave, Pitampura.
9. Market in S-D block, Pitampura.
1.2.6 Mission
1. To increase the sales by 10%.
2. To satisfy different types of consumers i.e. teenage girls, women and kids.
3. Have an increase in new customer base yearly.
4. To create demand for different pattern of clothes.
5. To introduce new creative things in the market.

6. To obtain a return on equity of at least 30%.
1.2.7 Key to success
1. New trends in the fashion industry.
2. To survive this global restructuring, the Flemish fashion industry is increasingly
focusing on its creativity to set itself apart from the competition.
3. Creativity is also becoming increasingly evident at retail level. The fashion retail trade
once served merely as a support channel, but has now developed into a creative element in
its own right, helping to enhance the symbolic added value of fashion items. This
development underpins multi-brand stores, single-brand stores and flagship stores.
4. Anyone offering craftsmanship skills in the fashion industry will easily be able to find a
well-paid job.
5. It is clear from discussions with stakeholders in the fashion industry that the tension
between creativity and economic reality is a stumbling block for the future of the industry.
1.2.8 Scope
1. Discusses key issues relating to the challenges and opportunities facing boutique
private banks in today's environment.
2. Explores current trends in the wealth management sector including technology trends
and merger and acquisition activity.
3. Evaluates the current business model for boutiques and looks at future possibilities for
development.
4. To develop relationships with customers.
5. Relationship selling.
1.3 Objectives of the business plan
1. To create demand in different markets.

2. Strong fashion and color sense with the ability to create and adapt designs to changing
market conditions.
3. To get a position as a fashion designer and gain reputable work assignments to enhance
reputation and skills in this field.
4. To introduce new creativity in the market.
5. Equally adept at performing as a project team member or working independently,
depending on the nature of the project at hand.
6. Significant ability to interpret people requirements and create designs that pinpoint
their target market.
Chapter-2
Management team
2.1 Shop structure and description of management team

The employees will be motivated to work within their creative, physical and intellectual
boundaries. All duties will be divided and delegated according to strengths and
weaknesses. At my store, I will expect a high degree of customer service skills and
personality as this is essential to our success.
I will assess the productivity and perform informal employee’s evaluations of all
employees every six months. These bi-annual evaluations are conducive to the continued
growth of our small business.
Western Wear is a small business and therefore requires a simple organizational structure.
I will act a general manager. All decisions are made in-line with the company objectives.
Employee tasks are delegated based upon their level of expertise, creativity, strengths and
weaknesses.
All sales persons and I will be responsible for all administrative functions, purchasing,
inventory control, and promotions. I will also act as a part-time sales representative. I have
spent over 2 years in accounting, finance and operations management. I am also the owner
of this store an e-commerce store for the years. I have extensive background in purchasing,
inventory control, and marketing.
As a small business, we will have a small staff of 6 members and me. Both co-workers and
I will assume leadership roles within the shop and I will be responsible for daily operations,
overseeing marketing efforts, giving service and managing inventory and all other
administrative duties. A small sales staff will assist co-owners with securing sales, assisting
customers and general maintenance of stock on the floor.
The necessities for the start-up for the business:-
1. Number of salespersons:-3.
2. Requirement of part-time workers:-2.
3. Number of machines: - 2.
4. Chairs & tables:-10.
5. Lamps and table fans:-10.
6. Stationary products.
7. Storage cabinets.
8. Clothes hangers.

9. Decorated statues.
10. Billing machines and credit card machines.
11. Customer service.
12. Ordering of stock.
13. Cleaning staff.
15. Advertising, marketing and promotion.
2.2 Staff members
Booming a readymade garment store will employ a sales staff of 2 part-time employees.
These positions are yet to be filled. However, we feel the labor pool is such that finding
qualified employees will not be an issue. Our sales associates will be paid an hourly wage,
plus commission. Bonuses will be provided with each year of sales and service following
an annual review to encourage employee retention.
I don’t have any team of seniors but I and all 3 workers work together as a team. I train
them to sell the clothes according to the requirements of customers and pay attention to
their requirements and they try to follow my instructions to sell the clothes efficiently. The
2 workers work like stitching, patchwork, ironing, and final touch.
The workers who stitch the clothes and gives final touch and measurement are 2.
The workers who involve in selling process are 3.
Some of the skills necessary to run this type of business other than the necessary business
skills:-
1. Retail sales and marketing.
2. The merchandising.
3. Fashion knowledge.
4. Business ownership.
5. Clothing import.
6. Stock display.

2.3 Product Description
2.3.1. Casual Wear
The "casual wear" is only one of the phrases used to describe the trend away from pin
stripes and high heels. Other terms include business casual (usually means the Dockers-
khakis-polo shirt look), business appropriate (a step-up from casual), business ready
(meaning that a traditional suit must be ready to wear at all times), corporate casual, clearly
casual, resort casual"(definitely not allowed in the office), refined casual wear (acceptable
provided that you understand what it is) and perhaps most appropriately casual confusion.
I have a variety of products to suit the needs of every individual, whether they are dressing
for success or for an afternoon of leisure.
Some of the company's products includes:-
o Men's Pullover, Long Sleeve, Small to 5XL: Rs. 500.00
o Men's/Women's Pullover, Short Sleeve, Small to 5XL: Rs. 400.00
 T-Shirts (100% Cotton)
o Men's, Long Sleeve, Small to 5XL: Rs.300.00
o Men's, Short Sleeve, Small to 5XL: Rs.200.00
o Women's, Long Sleeve, Small to 5XL: Rs.250.00 (100% Ladies Cotton)
o Women's, Short Sleeve, Small to 5XL: Rs.200.00 (100% Ladies Cotton)
 Denim Jackets (100% Cotton Denim)
o Men's, Small to 5XL: Rs.700.00
o Women's, Small to 5XL: Rs.600.00
 Denim Pants (100% Cotton Denim)
o Men's/Women's: Rs.700.00
2.3.2 Active wear/Sportswear
At leisure lifestyle apparel, from yoga pants to terry track suits, is on the rise, and I offer a
range of high-performance clothing for active sport, trekking, climbing, and travel that is
suitable for the street, and practical for the gym. The collection is characterized by modern,
comfortable, high-tech fabrics and functional, ergonomic designs.
The active wear product includes the following:-
 Sweatshirts (100% Cotton)
o Men's/Women's, Long Sleeve, Small to 5XL: Rs.200.00
o Men's/Women's, Short Sleeve, Small to 5XL: Rs.150.00
 Sweat suits (Velour)

o Men's/Women's, Small to 5XL: Rs.150.00
Sports styling will continue to dictate many casual designs throughout 2004, although
natural looks where the fabric makes the statement will also be important. Sportswear and
sports styling will continue to grip consumers who desire comfort in everyday wear, yet,
as couch potatoes, hardly ever indulge in the activities for which the clothes were originally
designed.
2.3.3 Workout Gear
The colorful fashion trainers, rather than traditional running trainers, will accommodate the
massive shift in shoe buying habits. Keyholes, zip inserts, and satin contrast strips and
bindings will continue to feature in mass casual wear emphasizing the sporty feel.
I offer a line of workout gear that brings together a combination of high-end, high-tech,
and unique fabrics with today’s hot fashion trends.
The store workout gear includes:-
 Workout Tops (100% Spandex)
 Workout Bottoms (Coordinating) (100% Spandex)
 Socks (100% Cotton)
o Women's, Fits Up to Shoe Size 15: Rs.100.00
 Jacket (Cotton/Polyester Blend)
Smart consumers are driving the performance fabrics of today. They want products with
more comfort, more durability, and more fashion, which in turn will make their lives
easier. In answer to the consumers' needs companies such as follow-me, appeal are
developing techniques that manage moisture better, so it dries faster improving dye-
techniques to enhance color-fastness and designing garments that keep people warm
without weighing them down.
2.3.4 Leather Garments

The leather motorcycle jacket is much more than a coat - it's a mentality. From the early
twentieth century, airplanes, automobiles, and motorcycles redefined freedom, idealized
speed, and captured the hearts of men and women alike. The leather jackets developed to
protect pilots, racers, and motorists from the elements came to symbolize a romantic sense
of rugged adventure. In particular, motorcycle jackets maintained this ideal for decades to
come. I carry on this American-made tradition of the classic, leather, motorcycle jacket.
 Motorcycle Jackets (100% Black Leather)
o Men's/Women's, Small to 4XL: Rs400.00
 Leather Pants (100% Black Leather)
Leather jackets are the most versatile and classic article of clothing the consumer can
own. They may be extremely stylish and popular, following fashion trends from year to
year, but the truth is that they are never out of style.
Consumers can find leather jackets in various shapes and sizes or different lengths (such
as trench coat, knee, three quarter, and hip), depending upon the consumer's body type,
height, style, and taste. Even square-shaped, leather bomber jackets have made their return
and continue to be popular. All leather jackets are stylish.
2.3.5 Baseball Jackets
Ever since hip-hop innovators and style aviators Outkast appeared on MTV sporting old
school Houston Astros jerseys with rainbow colors and 70s flavor, the rap world has seen
a trend toward old school/vintage sports apparel. Since then, others have been seen in
videos "discovering" forgotten logos and athletes. Retail stores' shop windows of
showcase styles that, by today's standards, would be considered out of place for men
playing on the field. Vibrant colors and rainbow designs that were once the norm in the
seventies and eighties has been replaced with more conservative color schemes, or with
shades of gray and black.
I have in my store a line of new, satin baseball jackets that mimic those worn by teams of
the past. They are made of thick, lined satin with attention to the finest details.
 Baseball Jackets (Satin and 100% Cotton)
The affair with the retired logo is merely another trend in hip hop's long evolution. A sports
symbol can symbolize far more than one might expect. While wearing the traditional,
current logo of a local team can still symbolize an artist's claims of his/her roots, recent
styles of sporting wear attest to more than locality, signifying pure fashion for fashion's
sake in an ever-changing culture.

2.3.6 Headgear
During the summer, fedoras and mesh caps made of natural grasses found favor among
both men and women. Another common sight was unlikely combinations of feminine
clothes and baseball caps, while, as an extension of the layered look, turbans were also a
hit. This fall has witnessed the renewed popularity of the rounded, visored berets known
as "caskets" that have been a conspicuous presence since last year. Hats and caps are
coming out in a variety of materials, colors, and shapes, including woolen caps with designs
knitted in and hats made of furry materials like angora.
As to why hats have become entrenched as a fashion accessory over the past few years, we
believe that headwear offers the easiest means of self-expression in the context of a general
trend for casual fashion. Even a person dressed in a simple outfit like pants and a T-shirt
can instantly express his or her personal style just by putting on a hat.
Hats are becoming as much an integral part of young people's wardrobes as other fashion
items, and I have a variety of hats to suit everyone's taste.
These include the following:-
 Ski Hat (Wool)
 Men's/Women's, One-Size-Fits-All
 Beanie (Polyester/Cotton)
o Men's/Women's, One-Size-Fits-All
 Fitted Baseball Cap (Cotton)
 Sun Visor
Hats have always combined fashion with practicality, offering protection from both the
summer sun and the winter cold. Right now, hats are experiencing a boom in popularity
that has made them an essential item regardless of the season. More and more people are
wearing hats of distinctive designs that, unlike the past hat booms are not constrained by
fashion trends.

Chapter-3
Environmental scanning of business
3.1 Industry analysis
3.1.1 Market segmentation
My store intends to target men, women, and children in the Tri-State Area who require
competitively priced, branded clothing. Within all groups, there are no color barriers and
customers have diverse backgrounds. The consumers range between one year and 60 years
of age.
According to the NPD, women spend about 80% of all money that goes for
sportswear. They control 96% of the dollars spent on their own clothes, 93% of those spent
on children's, and 60% of those spent for men's sports apparel.
During 1999, the women's consumer segment, a constant consumer group, dominated the
U.S. apparel sales market. Women's apparel sales growth was 3.7% and represented 52%
of all apparel sales, whereas men's apparel growth was 4.1% and accounted for 31% of

total apparel sales. Women tend to buy at a constant rate, whereas men's apparel sales have
been growing.
Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45
and older accounted for 25% of the market in 1999. Girl's and boy's apparel rose 0.5% and
3.8%, respectively.
The Market Analysis table and chart, below, show potential customers in the Tri-State Area
by gender and age groups, as well as potential Internet sales.
3.1.2 Categorization of the customers
1. Teenage girls: - The age between 11 to 19
Middle class & upper middle class
Income groups i.e. maximum 25,000
2. Women: - The age between 40 to 60
Middle class & upper class
Income groups i.e. maximum 30,000
Expected mothers
3. Kids: - The age between 1 to 10

Middle class & upper class
School going kids
4. Boys and gents: -The age between 1to 59
Middle class & upper middle class
3.1.3 The category of clothes is explained is as follows:-
3.1.3.1 Adult Apparel
The production of adult apparel, particularly women's clothing, occupies the largest sector
of the apparel industry. In 1990, over 1,000,000 workers were employed to produce an
almost infinite variety of dresses, suits, coats, and sportswear.
Traditionally, the women's apparel business has operated on a five-season basis i.e. fall line
merchandise is usually offered to retail store buyers in April; holiday collections in June;
early spring, resort, and cruise wear in October; spring and summer clothes in January, may
and early fall fashions in March and April.
Men's clothing design and sales are in a state of upheaval. In the past, manufacturers
presented two new lines of classic clothing each year, changing fabrics for seasons. Today,
many firms produce highly styled clothes for department store boutiques and small
specialty shops which cater to the fashion-conscious man. Their problems with seasons,
lines and style acceptance parallel those of women's wear producers.
Other than children's wear, the market for men's clothing has grown faster than any other
sales category in the industry. The introduction of state of the art permanent-press fabrics
probably initiated this sales increase, but the acceptance of casual fashion in men's wear,
spurred by the growing youth market, has been the main factor.
Although the larger firms are continuing to gain ground compared to smaller firms, and
brand-name merchandise already has a large share of the market, the preference for major
brands is not longer unanimous. Retailers are now much more open to adding new product
lines. The current interest in personalized trends, which more closely reflect the
consumer's identity, provides an opening for small and lesser-known collections.
The "cheap chic" trend is also spurring consumers to expect more at a lower cost, seeing
little difference in style from one brand to another.
3.1.3.2 Sportswear

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45
and older accounted for 25% of the market in 1999. The widening age gap between
youthful and not-so-youthful wearers represents a multitude of challenges in designing,
marketing, and branding for sportswear manufacturers.
The growth of the sportswear industry is particularly marked among female consumers,
who now see themselves as more athletic and have begin to wear these collections as street
clothes. Since women are more "outfit-oriented" than men when it comes to exercise
clothing, they represent a target clientele for this industry. The junior market segment is
also of primary important in this industry, as sportswear is often tied in to fashion.
A product's technical characteristics are also very important in this industry, competing
with the "sport-fashion" factor in the final buying decision. Technical consumers are much
more consistent in their buying habits and provide stability during economic slow downs.
3.1.3.3 Junior Clothing
The strong growth in demand in the junior clothing industry has, so far, been able to
minimize the unfortunate effects of the economic slowdown, but heavy competition in the
market makes retailers very conscious of fluctuations in demand. Competition in the junior
market segment has shot up in recent years, with a twofold increase in the number of junior
clothing chains.
Popularity and brand visibility are very important factors in buying decisions made by this
market segment; this reduces the maneuverability of small manufacturers who want to
position themselves in the market. It is crucial to follow trends because this segment
follows fashion cycles closely. It is possible to position one's self with very up-to-date
collections at lower prices than well-known collections; however, this means following the
market closely and providing the resources necessary for product visibility.
3.1.3.4 Children's Wear
Manufacturers of children's clothing produce large lines from which the store buyer makes
purchases three times a year to cover the main selling seasons of spring and summer, back-
to-school and holidays. Although children's apparel is a basic family requirement, the
fashion revolution is affecting even these styles. Mothers (controlling 93% of all apparel
dollars spent on children's wear) want their children to have the latest "look." Children's
wear manufacturers are becoming highly skilled at producing high fashion apparel. Kid's
fashions have been one of the fastest growing categories of apparel. To keep pace with
this trend, manufacturers have adopted the production and sales techniques used in
women's apparel. This has led to enormous numbers of children's wear departments and
specialty stores throughout the nation.

The children's wear industry has grown considerably in recent years, but still remains a
small market segment and can be difficult for small manufacturers to enter. Since
children's wear trends increasingly mirror those of adult apparel, children's collections must
not only please children, but also be very similar to current trends in the adult market. This
calls for constant monitoring of the market and a high degree of flexibility and quick
adaptation. Major firms that market adult collections at the same time as children's copies
have a head start in this regard. Price, nonetheless, remains a decisive factor in making
purchases, given the speed at which children outgrow their clothes. Manufacturers who
are competitive in this regard and have the flexibility to adapt their products to fashion
trends can find worthwhile niches.
3.1.4 Target Market Segment Strategy
My shop has chosen girls, kids and women as the three most attractive segments to target.
These segments are the most desirable because they have desirable levels of disposable
income and they spend it. The women are used to having fashionable clothes and
accessories and it is totally consistent with their purchasing patterns that this preference
would remain unchanged once they get pregnant. Many expecting women like to reward
or pamper themselves with nice gifts when they're pregnant.
Family is interested in buying nice gifts for their expecting friends. This segment
recognizes their friend's appreciation for nice things and are looking for something that
they know they will enjoy. The output is meant to be something nice and luxurious. Much
of the current maternity wear and accessories are utility based and while they serve their
purpose, they are not the most engaging gift. Family are looking for something that will
stand out, that the new mothers will truly enjoy.
3.1.5 Shop participants
1. Suppliers= 4 suppliers.
2. If required= no requirement or requirement of raw material after 3 years.
3. Distribution patterns= no patterns followed.
4. Competition= medium competition and low competition.
5. Number of competitors= 30.
6. Main competitors= 6.
3.1.6 List of main competitors

1. Incense: - Shop no-7, D-10 block, sector-7, Rohini.
2. Kashish: - Shop no-16, B-4 block, sector-7, Rohini.
3. Dhoom: -Shop no-12, A-4 block, sector-7, Rohini.
4. Rewa: - Shop no-18, D-12 block, sector-7, Rohini.
5. Pentaloons: - Shop no-24, B-6 block, sector-7, Rohini.
6. Shona wears: -Shop no-14, D-12 block, sector-7, Rohini.
3.1.7 Basic need of the existing customers
1. To give something new innovation.
2. To have the best quality in minimum price.
3. New designs.
4. New pattern of clothes.
5. Provide in bulk.
6. New attractive designing and good fitting of the clothes.
7. New fashion clothes/latest trends of clothes.
8. Ethnic wear.
Basic needs are as follows:-
From man’s viewpoint:-
1. Branded products
Men are more up front about their desire for branded goods, while women are more
subtle. Men's sportswear, for example, often carries enormous logos, while the logo on the
expensive lipstick worn by many a woman remains at the bottom of the handbag, to be
flashed only discreetly, in the powder room.
2. Comfort and easy-care

Men want comfort and easy-care apparel, and the sportswear world provides this
through high-tech fabrics. According to Bill Ghitis, president of global marketing for
DuPont Textiles & Interiors (DTI), "Performance fabrics have been a niche for the athlete,
but, based on our research, we believe that all men, particularly smart men, want much
more out of their clothes."
From woman’s viewpoint:-
1. Comfort and easy-care
Women avoid wrinkles on their skin, and they don't want them on their clothes
either. While the Fountain of Youth may be elusive, in the ongoing quest for comfortable
cotton clothing that won't wrinkle, women (and men) are winning the battle. Technological
advances have ushered in a new generation of wrinkle-resistant, 100% cotton garments that
deliver on comfort, style, and wear, while retaining a crisp appearance throughout the day.
2. Apparel sizing
The discrepancy in the actual size of women who may all - accurately - claim to wear the
"same" size is one of the many fit anomalies that are a reality today for the U.S. clothing
industry. Little analysis of body shapes and sizes has been conducted since the 1940s for
women and since the Civil War for men.
3. Sportswear
Until very recently, even if you got women into the stores looking for sporting goods and
apparel, there was nothing for them to buy. There is a definite void in the market for
women's related merchandise, such as feminine looking garments rather than unisex.
From children’s viewpoint:-
1. Fashion
With fashion continuing to drive the children's apparel market, industry players are
attempting to work more quickly and efficiently to make sure they have the right looks on
the floor at the right time.
Children's and parents' ever-louder cries for kids' apparel with looks that mirror juniors,
young men's, and even adult clothing is also inducing retailers to commit to pint-sized
incarnations of older styles, without waiting to see how the latter fares with
customers. Tops with spaghetti straps and multicolored shimmering or sequined borders
are gaining ground with girls. Boys are gravitating toward athletic silhouettes: brightly

colored, printed camp shirts worn over muscle T-shirts, zip-off pants and shorts that extend
several inches beyond the knee.
Style is important to these young adults, but style comes in many different packages -
cellular phones, cars, and vacation destinations are among them. In addition, the teen and
tween segments appear to find individuality appealing.
2. Branded products
3. Easy to wear clothes
4. Comfortable clothes
3.2 Competitor analysis
S.W.O.T. analysis of the competitors
3.2.1 Strengths
1. Changing consumer habits and lifestyles.
2. Plastic card revolution.
3. Greater availability of quality retail space.
4. Huge profits.
5. Competent to other competitors.
6. Home delivery.
7. Having the large number of outlets covering the whole country.
8. Having large inventory.
3.2.2 Weakness
1. Policy related issues
a) Lack of industry status for retail.
b) Numerous license, permits and registration requirement.
c) Farmer and retailer unfriendly APMC act.

2. Limited consumer insight
a) Lack of detailed region specific customer data.
b) Less data on spending pattern.
3. Inadequate human resources
a) Lack of trained personnel at all level.
b) Stringent employment and industry laws.
c) Fragment approach to human resources.
9
4. Taxation hurdle
a) Inconsistent taxes like octori & freight and entry tax structure.
b) Vat (value added tax) and multiple taxation issues.
c) Large grey market presence.
5. Underdeveloped supply chain
a) Underdeveloped logistics infrastructure.
b) Absence of national cold chain networks.
c) Lack of national distribution networks and hubs.
6. Lack of adequate utilities
a) Lack of basic infrastructure like power, creates difficulty in sustaining retail operations
across the large geographical spread of the country.
b) Transport facility
c) Communication problem
3.2.3 Opportunities
1. Potential for investment.
2. Locational advantage.
3. Sectors with high growth potential.
4. Fastest growing formats.
5. Rural retail.

3.2.4 Threats
1. Political issues.
2. Social issues.
3. The inflation.
4. The nostalgia.
5. Lack of differentiation among the malls that are coming.
6. Poor inventory turns and stock availability measures.
3.3 Opportunities and reasons of entering business
Retail is big business driven by the ever-growing consumer need for an array of products
and services. This creates a marketplace of job opportunities that spans department stores,
discount merchandisers, factory outlets, specialty stores, automobile and food retailers.
For many the perception of retailing does not go beyond being a customer at a store or at
the most from a summer sales job in a mall outlet. But there are many behind-the-counter
tasks involved in getting the products into the stores and onto the shelves ready for
customers to buy. This lends itself into a breadth of career paths in merchandising,
marketing, and store management, finance and distribution and information systems.
The following are examples of positions in retail to give you an idea of the opportunities
that waits are:-
 A Buyer selects and orders merchandise, plans sales promotions and maintains
sales and inventory records.
 A Planner effectively plans and controls inventories at the location level to
maximize sales and profit, also directs the distribution of goods.
 A Department manager establishes and implements policies, goals, and procedures
for the specific department, supervises employees, reviews inventory and sales
records as well as coordinates activities with other departments.
 A Store Manager oversees employees at a given retail location and steers his or her
unit toward corporate sales and profit goals.
Following are the opportunities are as follows:-

1. Low cost of operations.
2. The franchising.
3. Joint ventures.
4. Strategic license agreements.
5. Cash-and-carry wholesale trading.
6. The manufacturing.
7. The distribution.
8. Abundant availability of skilled labor.
9. Potential untapped market.
10. Rapid economic growth.
11. Career in retailing and retail management.
12. More growth opportunities.
3.4 Limitations of the business
1. High staff turnover.
2. High absenteeism of the staff at the outlets.
3. Huge expenditure on the inventory and salary of the salespersons.
4. Huge expenses on the maintenance of the outlet like cleaning, updating of the items etc.
5. Incurring losses.
6. Less profit maximization.
7. Less pay structure of the workers.
8. Outdated technology like machines of billing etc.
9. Changing market conditions constantly.
10. Changing customer’s preferences constantly.

3.5 Strategies to overcome environmental challenges
Consumers are the kings in today’s market. Consumer decides the demand and supply for
each product. Some products are there, which triggers huge demand and if there is a
demand there also be enough competition for that particular product. Business owners are
planning strategies to cut through this competition and make more sales and retain
customers.
Strategies are as follows:-
1. Analysing the market conditions by surveying method like personal interview.
2.Setting-up a written plan as a road map and follow it, check it daily and see if you are
swearing from it and if so make course corrections.
3. Hiring people by self and train them self - no one knows what is wanted better than us.
Teaching them to shut up and listen.
4. Keeping employees happy. A happy employee is less likely to steal, more likely to exude
joy and as a result will result in happier customers.
5. Talking to the customers as they leave the store, the ones that bought will tell what they
likes, the ones that didn't buy will tell why they didn't buy, listen and take notes.
6. Offering huge discounts.
Chapter-4
Manufacturing and operations

My store does not provide the facility of the making and production of the clothes but I
have few suppliers who supply clothes in bulk ever quarter of the month. Since it is a small
garment store I don’t prepare clothes and also small amount of capital is invested in the
business.
But my future plan is to introduce hand-made clothes in the market where my store is
located and also targets other markets and make my store a big showroom.
Currently, it is a trial business and analyse if the business will make profit in coming few
years or not.
4.1 Location of production facilities
The production activity should be located where a firm can be most productive and yield
the highest revenues per unit of investment.
A highly productive business outlet:-
 Is one that is near to the market, so that the demand for units of output is high
relative to costs of making that input?
 Is one that is close to a skilled labor force? The easier it is for the firm to attract
labor with appropriate skills the more likely it is to produce high value outputs
and low costs per unit of output.
 One that locates close to high value raw materials. The further materials have to
travel the lower the productivity of the plant will be.
The effective location for production will include some or all of the following factors:-
1. The closeness to point of sale. The higher the sales revenue, the higher the productivity
will be.
2. Near to skilled labor source.
3. Have room for expansion.
4. Have good communication links.
5. Closeness to raw materials.
6. Away from centers of population - for noisy, environmentally unfriendly industry.

Location of my store and production facility
The store currently operates out of a warehouse and office building located in Rohini. The
20 square foot facility provides enough room for storage of the stock which is received
from the suppliers and storing in bulk as well as administrative office space. A two year
lease has been signed at Rs.2, 000 per square foot with options to extend the lease. The
facility can be expanded an additional 30 square feet at any time to accommodate growth
of the store.
The small warehouse is bought on rent. The amount of the rent is nearly Rs. 4,000 per
month which is paid every month even if the store earns profit or not.
Once when the business will earn supernormal profits the there is a plan to hire own ware
house which is much bigger in size as compared the current rented warehouse so that more
and more stock can be stored and kept safe in the warehouse.
Factors to be Considered in Choosing Retail Locations:-
1. Size of the city's trading area.
2. Population and population trends in the trading area.
3. Total purchasing power and the distribution of the purchasing power.
4. Total retail trade potential for different lines of trade.
5. Number, size, and quality of competition.
6. Progressiveness of competition.
4.2 Plans for expansion
Our retail growth strategy is to increase retail sales and profitability by expanding our
network of retail store and improving the performance of existing store.
Our retail locations build brand awareness and contribute to market penetration and growth
of the brand in concert with our wholesale operations. The store will also consider opening
stores in the different states in the next years.
4.2.1 My long-term plan for the business

1. To invest the capital more in the future to expand the business.
2. To keep my own inventory of different stuff of clothes.
3. To engage the fashion designers to make hand-made creative and more beautiful
clothes.
4. To advertise my shop through online advertising.
5. To arrange workers up to 20.
6. To keep more accessories like jewellery, make-up accessories.
7. To arrange latest equipments for stitching clothes.
8. To earn the profits 5 times of the today’s profits.
9. To built a big showroom from the small store.
10. To expand the business in the whole country and opening of the stores in different
states.
4.3 Product modification necessary to adapt to local environment
However, it is beginning of the shop so modification is not much required at the first stage
of the business. My store already has the collection of clothes which are not expensive can
be easily sold anywhere in small area. This shop is also suitable for middle class income
group people, upper middle class income group people and low class income group people.
The modifications if required can be followed are as follows:-
1. Availability of the big brand clothes.
2. Less availability of the stock of other clothes like sportswear, track suits and hats.
3. No availability of the rest corners and rest rooms in the shop.
4. Procedure of payment of bill through credit card may not be available.
5. Less availability of the whole inventory if warehouse facility will not be there.
6. Non-availability of other accessories.
7. Clothes repairing facility may not be available like stitching, Knitting and embroidery.
8. Quality of a product.

9. Quality of a textile material.
10. Quality of a process of production.
Chapter-5
Personnel strategies
5.1 Personnel needed to manage business

The shop will be open seven days a week during the summer when people are shopping
the downtown the whole area. Through the winter season we will close on Monday as do
most of the downtown retailers. For the Holiday season we will extend our hours to two
nights a week to accommodate those after work shoppers. We will be located next to a well
known upscale other grocery shops and germent shops in the area, throughout the summer
customers line up to wait for new stock. We will be able to capture that traffic. As long as
there is a customer in the store we will stay open and serve them.
The personnel information of my shop is as follows:-
1. Number of salespersons: - 3
2. Salespersons (girls):- 2
3. Salespersons (boys):- 1
4. Salespersons (part-time workers):-2
As it is small shop, I have only 5 full-time workers and 2 part-time workers and I also
sometimes engaged in the process of selling and field work if the workers take leave and
on the half-day.
The salary of the workers is also negotiable and it is based on the working hours and skills
of the employees.
Salary of the employees:-
1. Full-time workers= 2,000 per month
2. Part-time workers= 1,000 per month
For extra working hours:-
1. For 2 hours overtime a day= Rs.150 for full-time workers
2. For 2 hours overtime a day= Rs.100 for part-time workers
The overtime is counted only for the workers if the workers will in the field for more than
2 hours and less than 2 hours of work, the overtime will not be counted.
Holidays/leaves given to employees:-

1. Casual leave= 3
2. Sick leave= 2
The leaves are also negotiable with the type of the worker in the shop.
For full-time workers:-
1. Casual leave= 5
2. Sick leave= 3
For part-time workers:-
1. Casual leave= 3
2. Sick leave= 2
5.2 Experience and expertise of the existing personnel
Retail salespersons typically learn their skills through on-the-job training. Although
advancement opportunities are limited, having a college degree or a great deal of
experience may help retail salespersons move into management positions.
Qualification of the workers:-
1. Minimum 10+2 with 50% percent with HSC and CBSC for part-time workers.
2. Minimum graduate with 45% percent marks from recognized university.
3. The candidates who have experience of 6 months in other discount and departmental
stores will be highly preferred.
5.2.1 Education and training
There usually are no formal education requirements for retail sales positions, but employers
often prefer applicants with a high school diploma or its equivalent. This may be especially
important for those who sell technical products or “big-ticket” items, such as electronics or
automobiles. A college degree may be required for management trainee positions,
especially in larger retail establishments.
Most retail salespersons receive on-the-job training, which usually lasts anywhere from a
few days to a few months. In small stores, newly hired workers usually are trained by an
experienced employee. In large stores, training programs are more formal and generally

are conducted over several days. Topics often include customer service, security, the store's
policies and procedures, and cash register operation. Depending on the type of product they
are selling, employees may be given additional specialized training. Due to providing the
best possible service to customers is a high priority for many employers, employees often
are given periodic training to update and refine their skills.
5.2.2 Other qualifications
The employers look for people who enjoy working with others and who possess good
communication skills. The employers also value workers who have the tact and patience
to deal with difficult customers. Among other desirable characteristics are an interest in
sales work, a neat appearance and a courteous demeanor. The ability to speak more than
one language may be helpful for employment in communities where people from various
cultures live and shop. Before hiring a salesperson, some employers conduct a background
check, especially for a job selling high-priced items.
5.2.3 Advancement
The opportunities for advancement vary. In some small establishments, advancement is
limited because one person is often the owner and does most of the managerial work. In
others, some salespersons can be promoted to assistant manager. Large retail businesses
usually prefer to hire college graduates as management trainees, making a college
education increasingly important. However, motivated and capable employees without
college degrees still may advance to administrative or supervisory positions in large
establishments.
As salespersons gain experience, they often move into positions with greater responsibility
and may be given their choice of field in which to work. This opportunity often means
moving to areas with higher potential earnings and commissions. The highest earnings
potential usually lies in selling big items such as jewelry and other items although doing
so often requires extensive knowledge of the product and an excellent talent for persuasion.
The previous sales experience may be an asset as when one is applying for positions with
larger retailers or in nonretail industries, such as financial services, wholesale trade or
manufacturing.
5.3 Training needs of existing personnel staff

Training and development continues throughout an employee’s career and is supported by
an annual performance review that identifies possibilities for further progression and
associated training and development needs. Managers in stores or other internal trainers
carry out most of our training.
When the employees develop, the career develops. The yearly performance reviews for all
employees are a common practice.
Our training structure is based around non-mandatory training that is relevant to all human
resource operations globally. In addition to the global induction training modules that every
employee needs to complete, there are individual induction training modules for certain
tasks tailored to the role, such as for store managers, floor managers and visual
merchandisers.
These training modules cover knowledge such as: what it means to be good retailers, staff
development, garment presentation and controlling. Allied to these, there are a number of
non-mandatory global training modules. It also offers training courses at every level that
are tailored to each workers specific need.
The training consists of different subjects:-
1. Garment handling and care.
2. The security.
3. Customer service.
4. The textiles.
5. The CSR (Corporate Social Responsibility).
The three key methods of delivering training successfully which follow a set format like in
group’s in-store and individual in-store training.
The training consists of two parts and is integrated into daily morning meetings in store.
These are: - customer service focused training and pre-campaign training.
The customer service-focused training is provided during the 15-minute morning meeting
for all employees in every store, six days a week throughout the month. Every other week
the morning meetings also cover pre-campaign product information.
In some stores we have already seen positive results. This initiative will continue and will
also cover challenging customer situations.

5.3.1 Stores and warehouses
In-store job rotation may mean that a person's duties vary from customer service, the cash
desk and fitting rooms through to visual display and the follow-up of advertising.
The employees also alternate between different tasks, for instance unloading, counting,
labeling and loading garments.
5.3.2 Cross store
When new stores are opened either in existing sales in new markets, the new employees
are supported by more experienced co-workers. This can take the form of colleagues from
established human resource procedures for supporting a new store for a period before,
during and after opening.
Chapter-6
Market research
6.1 Market conditions
A successful new venture sells customers goods and services they want or need and
continually grows a base of satisfied customers. Hundreds of people consider starting new
businesses each year and each of them will ask themselves the same questions:- Does my

product or service fill a need? Who will buy my product or service? What will my price
point be? What are the trends in my industry? Who are my competitors?
Market research helps in the following factors:-
1. Communicate effectively
The targeting can be done through advertising and promotions. By researching your
customers and their spending and buying habits, it can create marketing campaigns to meet
their specific interests and needs.
2. Identify and understand opportunities
That exists in the marketplace. For example, through primary research, you might find an
opportunity to start your business in a geographic location you had not considered before,
where little or no competition exists for your product or service.
3. Pinpoint potential obstacles or problems
Through research, it may uncover direct or indirect competitors that had not considered
before who may inhibit ability to gain a competitive advantage in the market. It might also
discover future development plans that could include big-box retailers in the target market
location.
4. Benchmark and evaluate your success
By knowing the size of your market, how the competitors are doing and who their
customers are, it can set goals to reach the market, grow customer base and track the
relation to the competition.
6.2 Existing demand of target market
1. Medium demand in the market where my shop is located.
2. The buyers are generally belong to low and middle income group levels.
3. Moderate availability of the branded stock in most of the shops.
4. The people who have high demand are girls, women and school going kids.
5. Mostly the daily wear clothes and household items are highly demanded.

6. The specialty stores have grown in popularity with the 13-to 25-year-old segment and
department stores have declined in popularity with the same age group.
7. Minimum percent of consumer bought the majority of their casual wear at department
stores and 21 percent of their dress wears in the area where my shop is located.
6.3 Competition
It is located on a strip that includes a variety of businesses, but none of which create any
competition. The other competitive edge we have developed is the atmosphere and
reputation.
Traffic is moderate to heavy, especially near the lunch and dinner hours. The closest
competing urban wear store is at least 10 miles away, located in Rohini area. There are no
other urban wear stores in the direct vicinity of my shop location.
Our location of the shop is a very important competitive edge. We are there, right at the
point of entering or exiting the market. The nearest competitor is at least 5 miles away.
We will also offer more personal attention to our customers than the larger mall retail
stores.
Women's and Girls' Clothing:-
 Rs 22,500 hundred per month
 Rs 5,200 hundred every week
 Rs.750 hundred each day
 Rs.75,000 every hour
Men's and Boys' Clothing:-
 Rs.16,000 hundred per month
 Rs,3,750 hundred every week
 Rs,550 hundred each day
 Rs,53,150 every hour
The Consumer Spending Patterns Report states that the average amount spent on
clothing per household in Rohini area is:-

I have specified the amount in U.S. dollars as basically in most of the areas it is
calculated in dollars so that easy comparison can be done.
6.4 Strengths and weakness of the industry- barrier to entry
6.4.1 Strengths of my shop
1. Current location in the center has high traffic, in an area with several other shops
targeting the same market which draws people to the area.
2. Our innovation is in our sales technique and point of sale displays.
3. Unique brands protected by sole supply agreements.
4. Successful relationship marketing.
5. Shop size is restrictive.
6. Our product is effective quality despite low level brands, high margin and low volume
in comparison.
7. The stock is the same as our competitors. One can pick and choose what styles to stock.
8. Branded and local clothes are available in my shop.
9. Easy to attract people in the market.
6.4.2 Weaknesses of my shop
1. We only sell a few of brands of clothes.

2. Small store size and inability to find an expansion, resulting in stocking a limited product
range.
3. Shop name is not well known.
4. Limited industry experience and industry knowledge.
5. Yet there are no contractual restrictions to us adding products to the store, store size is
an issue.
6. There is not a lot of competitive advertising in the market where my shop is located and
price is not so much of an issue to our customers.
6.4.3 Barriers and obstacles faced while entering in the market
1.The need of the huge capital to start up such as equipment, building, and raw materials
and we have not invested much in the beginning.
2. The large and experienced retail owners can generally produce goods at lower costs than
small and inexperienced retailers.
3. The government regulations may make entry more difficult or impossible. In the extreme
case, a government may make competition illegal and establish a statutory monopoly.
Requirements for licenses and permits may raise the investment needed to enter a market,
creating an effective barrier to entry.
4. The sunk costs and lost money cannot be recovered if a retailer decides to leave a market.
5. The incumbent retailers can seek to make it difficult for new competitors and entrants
by spending heavily on advertising that new retailers would find more difficult to afford.
6. If a single retail shop owner has control of a resource essential for a certain industry,
then other retail shop owners are unable to compete in the market.
7. When a good or service has a value that depends on the number of existing customers,
then competing players may have difficulties in entering a market where an established
retail shop and a showroom has already captured a significant user base.

7.1 Distribution strategy
The distribution involves a number of activities centered on a physical flow of goods and
information. At one time the term distribution applied only to the outbound side of supply
chain management, but it now includes both inbound and outbound.
Management of the inbound flow involves these elements:-
1. Material planning and control.
2. The purchasing.
3. The receiving.
4. Physical management of materials via warehousing and storage.
5. Materials handling or handling of the stock.
Management of the outbound flow involves these elements:-
1. Order processing.
2. Warehousing and storage.
3. Finished goods management.
4. Material handling and packaging.
5. The shipping.
6. The transportation.
Distribution channels are formed to solve three critical distribution problems: functional
performance, reduced complexity and specialization.
The distribution strategy defines how you are going to create and satisfy demand for your
products. A distribution strategy defines how you are going to move products from point
of creation to points of consumption, in a cost-effective manner. It must also define how to
manage the brand.
For my shop:-

The suppliers supply the stock to my shop every 15 days and sometimes also asked if there
is an urgent requirement of clothes in my shop.
No particular procedure for distribution is followed but the salespersons in my store
communicate to the people who came to my shop and ask their requirements. Then, they
start serve the customers by showing clothes to them.
7.2 Pricing strategy
Pricing is the process of determining what a company will receive in exchange for its
products. Pricing factors are manufacturing cost, market place, competition, market
condition and quality of product. Pricing is also a key variable in microeconomic price
allocation theory. Pricing is a fundamental aspect of financial modeling and is one of the
four Ps of the marketing mix. The other three aspects are product, promotion, and place.
Price is the only revenue generating element amongst the four Ps, the rest being cost
centers.
Pricing is the manual or automatic process of applying prices to purchase and sales orders,
based on factors such as: a fixed amount, quantity break, promotion or sales campaign,
specific vendor quote, price prevailing on entry, shipment or invoice date, combination of
multiple orders or lines, and many others. Automated systems require more setup and
maintenance but may prevent pricing errors. The needs of the consumer can be converted
into demand only if the consumer has the willingness and capacity to buy the product.
In my shop, I have fixed the reasonable prices along with the discount and with free gifts,
so that it attracts different customers in the market.
Some of the shop products and their prices includes:-
o T-Shirts
o Men's, Long Sleeve, Small to 5XL: Rs.300.00
o Men's, Short Sleeve, Small to 5XL: Rs.200.00
o Women's, Long Sleeve, Small to 5XL: Rs.250.00
o Women's, Short Sleeve, Small to 5XL: Rs.200.00
o Denim Jackets
o Denim Pants
o Men's/Women's: Rs.700.00

7.3 Promotion strategy
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing or persuading a potential buyer's purchasing decision.
However, there are three basic objectives of promotion. These are as follows:-
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
The questions arise in the promotion are:-
1. Where and when can you get across your marketing messages to your target
market?
2. When is the best time to promote? Is there seasonality in the market? Are there any
wider environmental issues that suggest or dictate the timing of your market launch
or the timing of subsequent promotions?
3. How do your competitors do their promotions? And how does that influence your
choice of promotional activity?
For my shop:-
I have promoted my shop by giving advertisement in the newspapers not on daily basis
but only once in a month to control over my expenses and displayed a banner outside my
shop.
My shop banner is designed as:-
“Trendzz”
(Completing the family)
All categories of clothes offered-
Jeans Kurtis
Tops Shirts
Contact -Esha Sharma, Shop no-12, D-12 block,

SECTOR-7, ROHINI, NEW DELHI-110085
7.4 Products strategy
The product is the catalyst for the start of a business and the development of product
strategy one of the most important decisions a marketer will make since product plays a
crucial role in demand, competitiveness and success. The managers analyze the
ramifications of the product strategy on other areas of marketing like price, distribution
and promotion.
The product strategy involves the various elements which a company has to take into
account when developing a product, e.g. price, design, and availability.
For my shop:-
In my shop there is no special set of the prices but my basic objective to set prices
reasonable which can be easily purchased by everyone.
Types of products available in my shop:-
The products available in shop are t-shirts, denim jackets, denim pants, sweat shirts,
sweat suits, gym tops & bottoms, socks, jackets and many more items.
Category of the pricing set in my shop:-
1. T-Shirts
o Men's, Long Sleeve: Rs.300.00
o Men's, Short Sleeve: Rs.200.00
o Women's, Long Sleeve: Rs.250.00
o Women's, Short Sleeve: Rs.200.00
2. Denim Jackets
4. Denim Pants
Men's/Women's: Rs.700.00
4. Sweatshirts
o Men's/Women's, Long Sleeve, Small to 5XL: Rs.200.00

o Men's/Women's, Short Sleeve, Small to 5XL: Rs.150.00
5. Sweat suits
6. Workout Tops
7. Workout Bottoms
8. Socks
o Women's, Fits Up to Shoe Size 15: Rs.100.00
9. Jackets
7.5 STP (Segmentation, Targeting and Positioning)
7.5.1 Segmentation
Categorization of the customers:-
1. Teenage girls: - Aged between 11 to 19. Middle class & upper middle class people.
2. Women: - Aged 40 to 60. Middle class & upper class people.
3. Kids: - Aged 1 to 10. Middle class & upper class people.
4. Boys and gents: - Aged 1to 59. Middle class & upper middle class people.
According to our information, there are approximately 150,000 males and 165,000 females
in the area where my shop is located, totaling 315,000 people. Of those 315,000 people,
186,000 are between the ages of 18 and 54 years of age. Seventy-six percent of the 315,
000 people have a household income of more than Rs. 40,000. My shop basically targets
market is men and women between the ages of 18 and 54 of middle class people, upper
middle class people and low income class people.

7.5.2 Targeting
For my shop, I target the market and the customers by the following ways:-
1. Designing an attractive shop banner.
2. Offering minimum price of clothes to the customers.
3. Offering the coming customers in the shop the snacks and other refreshments.
4. Introducing a seating arrangement for aged people.
5. Offering other services like repairing of the clothes.
6. Introducing offers of exchange of the clothes.
7. Providing discount offers on jeans and shirts.
Chapter-8
Financial decisions

8.1Financial statements and cash flows
Financial planning is the task of determining how a business will afford to achieve its
strategic goals and objectives. Usually, a company creates a Financial Plan immediately
after the vision and objectives have been set. It describes about the activities, resources,
equipment and materials that are needed to achieve these objectives, as well as the
timeframes involved.
Basically, the financial plan section of the business plan consists of three financial
statements, the income statement, the cash flow projection and the balance sheet and a brief
explanation/analysis of these three statements.
The list of operating expenses may include:-
1. Salaries (staff salaries).
2. The telecommunications.
3. The utilities.
4. The inventory.
5. The storage of the inventory.
6. The promotion of the shop and stock.
7. Office supplies.
8. The maintenance.
The expenses which I incurred before opening of the shop are:-
1. Initial investment
a) Machines & equipments= 10,000
b) Furniture= 10,000
c) Storage cabinets & stools= 20,000
d) Hangers and stands= 2,000
e) Stationary materials= 1,000
2. Salary & incentives

a) Cost of stitching, patchwork & final touch= 700
b) Discount on final product= 10%
Salary of the employees:-
1. Full-time workers= 2,000 per month
2. Part-time workers=1,000 per month
For extra working hours:-
1. For 2 hours overtime a day= Rs.150 for full-time workers
2. For 2 hours overtime a day= Rs.100 for part-time workers
Estimated income earned on monthly basis:-
1. Monthly sales per month Jan Feb Mar Apr May
0.22 0.23 0.22 0.21 0.22
2. Average sales per unit 20 26 22 25 23
3. Income per month 26,000 28,000 22,000 29,000 27,000
8.1.1Cash flow statement
The amount of the cash inflow and cash outflows is estimated on the basis of the product
sales, the inventory sold to the customers and the availability of the inventory in the shop.
Cash inflows
Basis Jan Feb Mar Apr May
Collection of A/R 2,640 5,280 7,260 7,260
OtherIncome/Sales 8,000 8,000 6,000 8,000 8,000
Total Cash Inflow
8,000 10,640 11,280 15,260 15,260

Cash outflows
Accts. Payable 8,000 8,000 6,000 8,000 8,000
Accts. Payable Operating Expenses 5,319 5,119 4,919 4,619 4,619
Taxes 10,000 8,000 9,000 11,000 12,000
Other Expenses - - - - -
Total Cash Outflow 13,508 13,208 11,208 13,208 13,708
Cash Position 7,396 8,248 11,100 1 1,952 14,964
Ending Cash 6,196 7,048 9,900 10,752 13,764
1.3.8 Profit and Loss analysis
I have assumes the profits and losses which will be incurred by me in the running course
of business. I have estimated the profits and losses for 3 years.
Baisis Year 1 Year 2 Year 3
Sales Rs.513,503 Rs.599,403 Rs.609,402
Direct Cost of Sales Rs.204,820 Rs.237,520 Rs.239,896
Total Cost of Sales Rs.204,820 Rs.237,520 Rs.239,896
Gross Margin Rs.308,683 Rs.361,883 Rs.369,507
Expenses
Advertising Rs.4,800 Rs.4,800 Rs.4,800
Depreciation Rs.4,889 Rs.4,889 Rs.4,889

Start-up costs Rs.5,500 Rs.5,500 Rs.5,500
Education & training Rs.1,200 Rs.1,500 Rs.2,000
Workman's compensation Rs.3,372 Rs.3,500 RS.3,600
Insurance - property Rs.6,204 Rs.6,200 Rs.6,300
License & permits Rs.110 - -
Maintenance - shop Rs.2,400 Rs.2,400 Rs.2,400
Marketing Rs.9,600 Rs.10,000 Rs.10,000
Miscellaneous Rs.3,600 Rs.3,600 Rs.3,600
Postage & Delivery Rs.600 Rs.600 Rs.600
Prof fees - accounting Rs.1,500 Rs.1,500 Rs.1,500
Prof fees - legal Rs.1,000 Rs.500 Rs.500
Repairs Rs.600 Rs.600 Rs.600
Supplies - shop Rs.4,200 Rs.4,200 Rs.4,200
Telephone Rs.1,440 Rs.1,440 Rs.1,440
Utilities Rs.2,100 Rs.2,100 Rs.2,100
Employee benefits Rs.9,000 Rs.9,100 Rs.9,100
Other Rs.2,400 Rs.2,400 Rs.2,400
Total operating expenses Rs.248,876 Rs.251,490 Rs.268,065
Profit Before Interest and
Taxes
Rs.59,806 Rs.110,393 Rs.101,442

EBITDA Rs.64,696 Rs.115,282 Rs.106,331
Interest Expense Rs.6,753 Rs.5,963 Rs.5,138
Taxes Incurred Rs.15,916 Rs.31,329 Rs.28,891
Net Profit Rs.37,137 Rs.73,101 Rs.67,412
Net Profit/Sales 7.23% 12.20% 11.06%
8.2 Identification of key assumptions
For shop:-
1. Growth drives to the market.
2. Future growth forecasts.
3. Competitors identified for the target market.
4. Competitive advantages in different markets.
5. Barriers to entry to those segments targeted.
For market:-
1. Products offered to the customers.
2. Pricing relative to the competition.
3. Promotion techniques.
4. Distribution of the products.
5. Growth in the market and market share.
Identification of key assumptions
For shop:-

1. Growth drives to the market.
2. Future growth forecasts.
3. Competitors identified for the target market.
4. Competitive advantages in different markets.
5. Barriers to entry to those segments targeted.
For market:-
1. Products offered to the customers.
2. Pricing relative to the competition.
3. Promotion techniques.
4. Distribution of the products.
5. Growth in the market and market share.
8.3 Current source of funding
Unless a potential small retail business owner is independently wealthy and looking for a
hobby, he or she will need to find financing for the new business. Financing a small retail
business can take make forms and may include a variety of funding sources to cover the
initial costs of opening and operating the business. Banks and government lending
institutions such as the Small Business Administration (SBA) typically require a personal
investment by the business owner showing a willingness to share the burden of risk with
the lender. Even franchises that offer in-house financing for new franchise operators
require a percentage of the initial investment to come from the business owner. The savings
and personal lines of credit from previous employers often are tapped to cover the personal
investment.
For my shop:-
For my shop, no appropriate source of funding followed but the capital is invested from
my side only.
If there is needed for funds in future then loan can be apply by me through the banks. The
loan is not applied in the beginning of the business as the field of the business is new to

me and somewhat to the workers. If there are losses incurred ispite of the profits then we
can’t able to pay back the amount of lended loan to the bank.
I have also taken loan from my father as the capital to invest in the business.
8.4 Future needs of funding
Most people cannot afford to open a new business on their own. With a little research it
will find a number of places or individuals that are willing to put money into new
businesses. Trying to stay away from high interest loan situations and look for grants and
smaller donations that will be straight forward to pay back. It may have family that is
interested in helping out.
For my shop if future needs are required then the following strategies if followed:-
1. Loans from the banks.
2. Borrrowing funds from other small scale businesses.
3. If funding is not possible, then inventory of the shop may be decrease to cut costs.
4. Asking for mutual schemes.
5. Asking through bank the best source of funding.
8.5 Tax consequences of the business
When the business case refers to a non taxpaying government or non-profit organization,
the question of tax effects on the business case is non-issue. For tax-paying companies,
however, it is an important question. The results of "before tax" and "after tax" business
cases can look quite different.
Here are some ways that taxes can impact the business:-
1. Taxes lower overall gains
Where the business case shows gains or net cash inflows, taxes operate to lower overall
gains because operating income and capital gains are normally taxed.
2. Taxes also reduce overall cost and expense impacts
Where the business case shows losses or net cash outflows, tax effects operate to reduce
the overall loss.

3. When the business case includes capital assets, tax savings from depreciation improve
the bottom line
Where the business includes the acquisition of capital assets, tax savings from depreciation
can operate to increase overall cash flow. Depreciation expenses themselves do not
contribute to cash flow, they are an accounting convention that impacts reported income,
but not a real cash outflow. However, the depreciation expenses lower reported income,
they also lower the tax liability, which does impact real cash flow.
8.6 Potential risk and source of protection
The process of identification, analysis and either acceptance or mitigation of uncertainty in
investment decision-making. Essentially, risk the occurs anytime an investor or fund
manager analyzes and attempts to quantify the potential for losses in an investment and
then takes the appropriate action (or inaction) given their investment objectives and risk
tolerance. Inadequate risk management can result in severe consequences for companies as
well as individuals.
The potential risks involved in my business of the shop:-
1. Not having sales.
2. Loss of the capital employed in the business.
3. Not earning profits.
4. Demand of the workers regarding salary and wages.
5. Inability to create demand for the products in the market.
6. Damage due to fire, theft and loss.
7. Does not able to create image of the shop in the market.
8. Debts like loss of stock and damage of the stock.
Source of protection for my business:-
1. Reduce the cost in salespersons and secure guards;

2. Improve the shopping atmosphere and avoid watching customers directly by workers
and let the salespersons pay more attention to introduce the commodities and increase their
shopping desire.
That can create a better psychological circumstance to increase your profit
3. Installing a camera in the shop for observing the movement of the employees.
4. Borrowing funds from the banks.
Risk in business

The following are the risks involved are as follows:-
1. If the inventory in the store will create effective demand in the market.
2. If the people in the market will come to the shop or not.
3. If the business will earn the profits which is the main target or not.
4. Fear of incurring loss despite of gains.
5. If the business will run smoothly.
6. If the workers will work with their full efforts and contribute to the profits.
7. If the inventory of the shop is liked by the people.
8. As the owner of the clothing retail store, it will encounter different sorts of customers,
employees and vendors & cannot complain and say that not your job because by the time
you open that door, all of it will be yours.
9. If the way of advertising will catch attention of the people.
10. Do the people encourage the categories of clothes offered to them?
Implementation schedule

The schedule of the main activities supporting this marketing plan is presented in the table.
This includes the promotion schedule and evaluation and control activities. An evaluation
of the ongoing business will be conducted on a quarterly basis as well as a more detailed
evaluation at the end of the year. A risk assessment will be conducted as part of the
performance reviews of the business.
Activities 1 month 2
Month
3 month 4 month 5 month
Develop a garment business Yes in the
month of
Jan
- - - -
Develop floor plan and retail
store
Yes in the
month of
Jan
- - - -
Hire key staff for the business 3 (full-
time)
2 ( part-
time)
- - -
Liaise with the local
government
- - - - -
Local press advertisement and
press releases
Yes through
fliers in
newspapers
on monthly
basis
- - - -
Website development - - - - -
Launch of retail store Yes - - - -
Salary of full-time workers 2,000 2,000 2,000 2,000 2,000
Salary of pat-time workers - 1,000 1,000 1,000 1,000
Quality assessment of products Medium
and low
medium medium medium medium

Appendices
I have conducted a small survey in only few shops which are located in the market itself.
The survey is done through personal interview method.
I have surveyed the shops in the market where the store is located.
The questions which are asked in the interview are:-
Q1. What is the name of the shop?
Q2. Who is the owner of the shop?
Q3. How many employees/salespersons are engaged in the shop?
Q4. What is the pay scale of the salespersons?
Q5. What type of inventory is available in the shop?
Q6. Do they have part-time employees also?
Q7.What is the timings for the opening and closing of the shop in the day?
Q8.What is the daily expenses of the shop?

Q9.Is relationship selling is followed or not?
Q10.What type of people does the shop target?
Bibliography
Books
1. Marketing book by Lovelock’s.
2. Kotler Philip, Marketing Management.
3. Planning Implementations & Control, Edition-1998.
4. Prentice Hall of India Ltd. New Delhi.
5. Human resource management by C.B.Gupta.

Magazines Journals & Newspaper
1. Business today.
2. The Times of India.
3. The Hindustan times.
Websites
1. WWW.google.com.
2. WWW.yahoo.com.
3. WWW.rediff.com.

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