Design Your Style 1.
Executive Summary:
Design Your Style is the most ultimate and exciting internet purchasing experience that allows
people and corporate to custom design their own clothes/Uniformsat their convenient. And targeting all the applicable communities that may conduct group events, and support them with the required custom at their convince price. (i.e.: universities, companies, clubs, birthday parties, anniversary events Corporate & individuals- etc) By choosing from the available materials and models of the (cloth/workers uniform), then the (image/logo), that desired on the: 12345Front and/or back. Side arm. Side leg. Water marks. Mix of the above.
Then see the final look and design before the decision of purchasing. In which will terminate the worry and suspicious of how look the final design will be.
Products
Design Your Style will offer our clients a variety of several options for designing their own
custom clothes/uniforms. The majority of orders will be for consumer clothes, however other designs will be available for corporate and schools. DesignYourStylestrategy, depends mainly on the high quality Egyptian cotton, that known worldwide with its quality. And that would contain a carefully selected:
12345678-
Shirts. T-Shirts. Polo Shirts. Schools T-Shirts Underwear. Workers Overalls. Trousers. Socks.
Design Your Style
Competitive Edge
DesignYourStylehas two potential competitive edges to be assist in market penetration.
The first edge is a tremendous catalog of graphics and images. Which could match any type or gender, or class. The second edge is the ability to upload your own (graphic/ image/ logo, ,etc). According to your choice, and convenience.
Management
DesignYourStyle will be led by its owners, and shares are divided equally among them:
1- X: who is experienced in sales and marketing, and has a huge knowledge in Data services. And will gain from his valuable insight into the market, the products, and the customer's needs and desires. 2- X: Who spent a long time in management & planning, and work force operation, with a background in a number of multinational telecommunication companies, and will be an added value from his useful business and professional contacts, and optimizing relationships with business partners, suppliers, and reduce cost of goods sold for DesignYourStyle. 3- X: Who is expertise in managing, and collection process, with a huge background and experience, will use his educational skills, and his previous collection experience to make DesignYourStyle profitable, in our electronic commerce payment system. 4- X: An engineer, who is experienced in a telecommunication company, for several years that will give a huge support in our DesignYourStyle project technicalities. 5- X: Who is experienced in quality assurance and customer service, and customer satisfaction surveys, will provide with a notable insight about customer needs and their level of satisfaction.
Design Your Style
Organizational Structure:
General Manager
Finance and collection Manager Senior Accounta nt Accounta nt Rep. Senior Financial Financial Rep.
Marketin g Manager Marketin g Executive Marketin g Research Marketin g Research
IT Manager
Operatio n Manager MIS & Planning Operatio n Rep Operatio n Rep Operatio n Rep Operatio n Rep
Customer Service Manager Superviso r Senior Agent
Deputy IT
System Eng. Help Desk Web Develope r
Agent
Agent
Agent
Design Your Style
1.1 Objectives
To establish our business and become a very known as the premier custom cotton clothes sublimation service. Achieve profitability within one year. Design and implement strict financial controls to help ensure success.
1.2 Mission
DesignYourStyle mission is to offer the most exciting experience in web designing
customssublimation production.
DesignYourStyle will offer customers the best products at the best price. Customer's expectations
will always be exceeded. 1.3 Keys to Success
Leverage cutting edge technology as a competitive advantage. Employ careful financial and accounting analysis to ensure efficiency and proper controls. Competitive pricing. Exceed customer expectations by offering high quality products at reasonable prices with quick turnaround times. 5. Develop a repeat-business base of loyal customers.
1. 2. 3. 4.
Company Summary
2.1 Company Ownership
Equal Shares distributed among the five founders:
x x x x x
Design Your Style
Products and Services:
DesignYourStyleis a sublimation company for custom clothes which allow customers to design and
choose imagery (whether theirs or outs) to apply it to any type of clothes (like shirts, pullovers, underwear, socks, swim suits, gloves, scarves, and cotton belts). The imagery can be applied to: Front and/or back. Side arm. Side leg. Water marks. Mix of the above. The process of "sublimation" is to transfer ink into a fabric surface such as pullover, shirt or swim suits using heat. There is alternative method for making the clothes design called "Silk Screening", where in this method the screen is made with an image which transferred into clothes after that. The "Silk Screening" has disadvantages: For small number of production, it is not cost effective due to high set-up cost. It inhibits the breathability due to apply thin layer of ink to the clothes surface. While the "Sublimation" process overcomes the disadvantages of "Silk Screening" as it became cost effective in small production runs with recent technological advances and it solved the breathability problem where ink isembedded in the fabric and is not printed on the fabric's surface. It is possible to offer sublimation in single production runs but the computer based sublimation process will produce lower image quality. DesignYourStyle, other than existing technologies, takes sublimation one step further by producing the graphic images at a higher resolution.
DesignYourStylecan offer custom sublimation on many types of clothes with different styles and
customers will be able to select the material they prefer (cotton-blend or all natural fiber cotton). Customers also will be able to select from pre-existing graphics (from an extensive catalog) or custom artwork. DesignYourStylewill develop strategic relationships with number of companies that can offer a wide range of graphics and images to customers. These relationships will allow
Design Your Style
DesignYourStyleto put the images and graphics of other companies within their catalog thereby
significantly options. It will be possible to view and order these images online and provide customers with flexibility and [Link] allow customers where ever they are to make their orders through a comprehensive Website.
DesignYourStylecan offer as well custom artwork or graphic options for sublimation. DesignYourStyleartist can turn customer's pencil drawing and even thoughts into a new design. DesignYourStylewill offer a range of different clothes options and styles.
Market Analysis Summary
DesignYourStylehas segmented the market into two groups, categorized by the product type that they
will purchase. The customers of first group are those who desire an already created graphic image to be placed on the clothes they will purchase, while the customers of the second group are those who prefer custom artwork on their clothes. DesignYourStylehas divided the market by the products that they purchase where it offers an easy method of targeting the two different groups and because the demographics for the buyers of the two products are distinct enough to group them separately.
Market Segmentation
As already mentioned before, DesignYourStylehas segmented the market into two distinct groups, and these two segments are grouped by the product type that they chose. DesignYourStylehas effectively divided the market by age as well as by product type since the customers who may purchase the custom artwork clothes tend to be older than the group desiring the readymade graphics. Graphics -- The customers of this group will purchase any type of clothes and has an existing graphic placed on the clothes. This option is the less expensive one and it lends itself to low production numbers, as low as one, since there is not the inherent expense of artwork creation. The customers characteristics of this segment are:
Ages between 14-25 The majority are students (69%) Average individual income is 15,000 EGP
Design Your Style
Go out 3.4 times a weekto eat Listen to music 3.6 hours a week
Artwork -- The customers of this segment prefers having custom artwork created and placed on the clothes they purchase. In general they have the image and style in mind and will ask the artist to create it. Sometimes the customer will not have an exact image in mind and in this case they rely on the artist's skills to help shape the image they desire whether they will use DesignYourStyleartist, or any other one like a friend or service provider to develop the art. The customers characteristics of this segment are:
Ages between 24-43 Average individual income is 40,000 EGP Go out 2.7 times a weekto eat Listen to 3.3 hours of music a week
Market Analysis Potential Customers
Graphics Artwork Total
Growth (%)
7 8 7.43
Year 1
7,879,664 5,969,854 13,849,518
Year 2
8,431,240 6,447,442 14,878,682
Year 3
9,021,427 6,963,237 15,984,664
CAGR (%)
7 8 7.43
Target Market Segment Strategy
One of the reasons for choosing these two markets segments by DesignYourStyle is their demographics which are reasonably young and have the highest probability to purchase custom clothes.
Design Your Style
Music considered as well an important interest for the target markets as both segments listen to and watch more than average amount of music. At music events T-shirts are particularly popular. Customers will be allowed to select what aesthetic or idea they want to communicate through expression form will be provided by DesignYourStyle.
Service Business Analysis
The industry of clothes design is a primarily brick and mortar based industry. Most companies offer to local customers silk-screening services. There is number of companies which offer these printing services for uniforms, team jerseys, etc. In this industry most of the participants fall into two categories, those that sell to individuals and those that sell in multi-unit production runs. The companies which sell to individuals are almost silkscreeners and have a limited number of silk-screens already developed. The customer chooses which one they want and the clothes are made. While the second type of sells, most of their products in larger production lots. It can be explained by the fact that it is not cost effective to produce in small lots for custom work, whether for silk-screens or sublimations. The current technology used by various companies is in its infancy and is of low resolution, while the new technology allows offering sublimation using computers, with best image quality in average. DesignYourStylewill be able to leverage proprietary technology as a competitive edge to produce much higher quality computer sublimation.
Competition
DesignYourStylehas no competitors in Egypt that offers computer sublimation or custom clothes
which allow customers to design and choose imagery to apply it on any type of clothes.
Design Your Style
Setting Market Strategies DesignYourStylethe main idea is to focus on the ability to customize your own design of T-shirts, pullovers, socks, swim suits, gloves, scarves, and cotton belts, by selecting and customizing your personal and favorite design by sharing a huge catalog of graphic images that could meet and match different style and taste, the Marketing campaign Will target the Youth events and student groups by encouraging the teenage to design what is favorite and what they would like to wear And then will penetrate such style of business by using the word of mouse referrals. The Competitive Edge The main advantage to achieve market penetration using the model of DesignYourStylewill be the following,
Large catalog of graphics the search engine for the existing image catalogs which allow you to choose whatever is favorable to your style , in addition to the ability of designing your own image by sharing the easy tools to follow your design Cotton Quality as the project idea is depending on the high quietly Egyptian cotton so its necessary to maintain and guarantee the quality produced to attract the homogeneous levels of genders who are seeking for the quality aspect Delivery: will ensure the fastest turnaround time possible Customer Service : Having excellent customer service will guarantee the customer's interest and then will lead to boost sales
Design Your Style
Sales Strategy The main purposes of the sales strategy will revolve on the fact that ordering your own style of closes from our website which will be an easy and pleasing experience. The sales effort will work on the continual development of the website (customer interface ) the web portal must be friendly, easy to use & obvious for two main reasons. To eliminate the end user web confusion due to cumbersome or difficult instructions, The second reason is that the large portion of sales might be placed on the website.
Sales Forecast Sales forecast is the backbone of any business plan. Companies usually measure the business and its growth by sales, thus sales forecast sets the standard for expenses, profits and growth by measuring the potential and the expected sales with the actual sales The following tables and charts shows sales forecasts by both month and year The sales forecast highlight two types of products or business lines, 1 st is the unique Interior portal graphic and the 2nd is your private artwork. "Graphics" means that consumers will use the existing graphic, Private Artwork means that consumers will create their designs or will be created to them by us
Design Your Style
50000 45000 40000 35000 30000 sales private artwork 25000 20000 15000 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 12 sales portal graphic month
Design Your Style
450000 400000 350000 300000 250000 200000 150000 100000 50000 0 1 2 3 4 sales private artwork sales portal graphic Year
Marketing Strategy
The marketing campaign will revolve on improving the concept of DesignYourStyle by using the following approaches.
Advertising -- doing more ads by targeting teen/young adult magazines , portals and social websites as well Youth events being as a sponsor for some sports and educational events
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Web Plan Summary
DesignYourStyle! Will have a very well developed Website that support the companys strategic goal of expansion. We identified the main pillar in to achieve this goal through the customer satisfaction and providing the best customer experience. DesignYourStyle will have a high quality user-friendly website that encourage and ensures having the same customer customers again, in addition to spreading an outstanding word of mouth. We plan to expand the functionality of our website so that it becomes a substantial revenue stream for DesignYourStyle through availing the entire product catalog on the site for customers to place orders. As it one of the imperatives to provide wide ranges of graphic image choices, it will be critical to ensure that the site is easy to navigate through all the available options. Also there will be a computer kiosk for customers to access the graphics catalog. The customer can then place the order online or take the information to an employee to place the order. Although the initial cost of the website will be the largest, yet, we believe the potential exists for Internet sales to become a substantial percentage of our revenue. And the monthly maintenance costs will be marginal relative to the development and design costs.
6.1 Website Marketing Strategy
The website will be essential in DesignYourStyle!'s marketing effort and achieving the marketing strategy, as the site is a key sales tool for both local and distant customers and is a main channel. The URL address will always be used in promotional material, encouraging people to check out the company, concept, and the products. In additional to inclusion in the traditional marketing campaigns.
DesignYourStyle! Website will be accessible through a variety of searching engines, which is expected
to significantly increase the number of hits on the site and the inquiries from people searching out custom shirts. Also well make a number of strategic partnerships with some of the related brands in pants and well also be available and accessible through their website, in return well do the same, in addition to the an agreed upon commission percent. This well increase our exposure and will provide an extra in the penetration and marketing strategy.
Design Your Style
Another strategic pillar and one of the priorities, same as having different types of products and options, to have different types of customers. So DesignYourStylewill expand its channels not only of a corporate-to-consumer business, but also will explore the corporate-to-corporate business. This will be through availing our service to all the companies and factories which desire to have specific tshirts or uniforms for its employees. DesignYourStylewith its varieties and provide options will be the best choice in this. Another track in the marketing strategies is the existence in the different types of events (companies gatherings, yearly events, celebration parties, music partiesetc). DesignYourStylewill make a clear difference by the offered solution having specially designed and customized T-shirt that could match each event.
6.2 Development Requirements
A highly qualified computer programmer/designer with a carefully selected competencies has been identified as a candidate to manage the design, implementation, and maintenance of the website, and will help in transforming the management plans and direction in to a true materialized fact on DesignYourStyle website. The majority of the tasks will be completed by him, a few tasks that are outside of his skill set will be subcontracted to his associates.
Management Summary
DesignYourStyle! has been founded and will be led by the founders (X,X,X,X,X,X) who were
introduced previously in details, and will be referred to here as founders.
7.1 Personnel Plan
DesignYourStyle! will require the following personnel for operations:
X: who is experienced in sales and marketing, and has a huge knowledge in Data services. Adham with his valuable insights into the market, the products, and the customer's needs and desires will be leading the marketing and sales strategies in terms of existence in the market, penetration, distribution, brand awareness and having a clear edge for DesignYourStyle over competition.
X: Who spent a long time in management & planning, and work force operation, with a background in a number of multinational telecommunication companies, and will be an added value from his useful business and professional contacts, and optimizing relationships with business partners, suppliers, and reduce cost of goods sold for [Link] with his
Design Your Style
operational experience will be aim having the best people and operation utilization to grant the maximum value returned.
X: Who is expertise in management, especially in the credit and collection processes, with a huge background and experience, will use his educational skills, and his previous collection experience to make DesignYourStyle profitable, in our electronic commerce payment system. Also will apply and focus on providing a unique payments terms and conditions with many option to be an extra competitive edge in the market. X: An engineer, who is experienced in a telecommunication company, for several years that will give a huge support in our DesignYourStyle project technicalities, Mostafa will be leading all the technical tracks and will focus on having an up-to-date technologies that will grant providing our customers with the best-in-class services and solutions. X: Who is experienced in quality assurance, quality control and customer service, will focus on providing our customers with a real world class customer experience, that will help in having the best results according to international customer satisfaction [Link] will be working people in the front lines and will focus on the quality of service provide and the calibers representing DesignYourStyle..
Financial Plan
Important Assumptions The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. Major fixed expenses are payroll,rent and marketing. Stable economy, without major new recessions Three of the more important underlying assumptions are: Current Interest Rate 9.5%
Long-term Interest Rate 9.5% Tax Rate 20%
Design Your Style
Projected Income Statement Projected Income Statement is shown in the below table, with sales increasing from L.E 1080000in the first year close 3,240,000 by the third year. We will reach profitability in the middle of our first year. We are projecting very conservatively regarding cost of sales and gross margin. We prefer to project conservatively so that we make sure we have enough cash. The average industry GP is from 65% to 70% but we are built our module on only 60%. The Major expense we have is personal expenses it represent around 28% from total expenses and we were conservative with it too because added around 5 % above the average salary in this industry.
Sales, Year 3, 3,240,000
Sales, Year 2, 2,160,000 Gross Profit, Year 3, 1,944,000
Gross Profit, Year 2, 1,296,000 Sales, Year 1, 1,080,000 EAT, Year 3, 894,004 Gross Profit, Year 1, 648,000 EAT, Year 2, 508,818
EAT, Year 1, 67,710
Sales
Gross Profit
EAT
Year 1 Sales Cost of Goods sold Gross Profit 1,080,000 432,000 648,000 60% Expenses Labor and wages Marketing & sales Rent 300,924 95,800 101,435
Year 2 2,160,000 864,000 1,296,000 60%
Year 3 3,240,000 1,296,000 1,944,000 60%
373,923 47,735 190,939
477,423 53,373 244,342
Design Your Style
Other Expenses Total Expenses EBITDA Depreciation EBIT Interest Expenses EBT Tax EAT 50,717 548,876 99,124 10,000 89,124 7044 82,080 14370 67,710 39,779 652,376 643,624 10,000 633,624 4144 629,481 120663 508,818 46,277 821,415 1,122,585 10,000 1,112,585 3856 1,108,729 214725 894,004
Projected Cash Flow Cash flow projections are critical to our success. The annual cash flow figures are included here. The following cash flow projections show the annual amounts .
Cash Balance , Year 3 , 1,846,728
Net Cash flow , Year 3 , 1,296,919
Cash Balance , Year 2 , 549,808 Net Cash flow , Year 2 , 448,117 Net Cash flowCash Balance , Year 1 , , Year 1 , 101,691 101,691
Net Cash flow
Cash Balance
Year 1 Cash in Cash from operation Sales Cash from finance Total Cash in Cash Out Payment for purchasing Payment for assets Expenses & other Loan payment &Interest 336,059 97,206 349,781 30,430 1,080,000 150462 929,538
Year 2
Year 3
2,160,000 2,160,000 648,033 205,843 676,243 61,101
3,240,000 3,240,000 972,062 294,679 380,155 81,460
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Tax Payment Total Cash out Net Cash flow Cash Balance 14,370 827,847 101,691 101,691 120,663 1,711,883 448,117 549,808 214,725 1,943,081 1,296,919 1,846,728
Projected Balance sheet
Year 1 Assets Long term Assets Fixed Assets ( Net) Total Long term assets Current Assets Cash Inventory Other debit accounts Total Current assets Total Assets Current Liabilities Accounts Payable Other current liabilities Total current Liabilities Long term Liabilities Owner's Equity Capital Current Year Profit Retained Earning Total Equity Total Liabilities & Equity 70,441 57,198 127,639 240,344 35,220 482,486 33,646 557,569 682,044 35,220 858,745 480,354 1,374,578 1,500,914 32,403 9,862 42,265 70,441 70,773 25,856 96,630 27,845 90,548 22,830 113,378 12,958 101,691 73259 14933 189,883 212,002 549,808 106077 39779 695,665 745,140 1,846,728 121863 43192 2,011,782 2,054,974 44237 22118 65967 49475 51830 43192 Year 2 Year 3
Our sales growth year over year will increase by 200% by the second year and then will be 150% by the third year which mean around and expected to remain the upward trend till the fifth year. Our total expenses will decline by end of the third year as a result of the economy of scale. Net profit will increase from 5% in the first year and reach 27% by the end of the third year.
Design Your Style
Sales growth, Year 2, 200% Sales growth, Year 3, 150%
Gross Profit % , Year Gross Profit % , Year Gross Profit % , Year ROI , Year 2, 70% 1, 60% 2, 60% 3, 60% ROI , Year 3, 57% Total Expenses , Total Expenses , Net Profit % , Year 3, Net Profit % , Year 2, Year 1, 32% Year 2, 31% 27% Total Expenses , ROI Net Profit % , Year 1, , Year 1, 23% 22% Year 3, 12% 5% SalesGross Profit %1, growth, Year Net Profit % Total Expenses ROI Sales growth 0
Year 1 Sales growth Gross Profit % Net Profit % Total Expenses ROI
Year 2
Year 3
60% 5% 32%
23%
200% 60% 22% 31%
70%
150% 60% 27% 12%
57%