SAM’S KIDS STORE, INC

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SAMPLE BUSINESS PLANSAM’S KIDS STORE, INCDisclaimer:This is a sample business plan, so the company and businessinformation are fictitious. This plan reflects our standard businessplan model, and changes in outline and structure can be made as perclient specifications.

GENERAL COMPANY DESCRIPTION.4C.Market Growth:.11E.Market Demand:.15G.Market Potentials:.17H.Market Opportunities:.19I.Barriers to Entry:.19J.Regulations:.19II.Service Potential:.20OPERATIONAL PLAN.32I.Service Execution Model.32II.Legal Environment.33III.Personnel.33A.Management’s Credentials and Expertise.34B.Experience in Management Position:.34Sample Business PlanMARKETING PLAN.8FINANCIAL PLAN.36I-Start-up Expenses Summary.36II-Revenue Forecast (3- Year).38III-Profit and Loss Projection (3-Year).39IV-Pro forma Cash Flows (3- Year).41V-Projected Balance Sheet:.42VI-Breakeven Analysis.43APPENDIX.442BizPlanCorner.com

Executive Summary1. Sam’s Kids Wear (SKW) is a retail store for kids wear with good quality and latesttrends owned by Mr. Samuels Arnold.2. This business will cater to the needs of kids’ age from 6 to 11The Target audiences of the business are:Age5 to 9 years10 to 14 yearsTotal(5 to 14 Years)4. Slogan of the business is:“Kids wear, with care”Population218,522224,012442,534Sample Business Plan3. Location of the business is assume an actual location3BizPlanCorner.com

General Company DescriptionCompany Overview:Sam’s Kids Wear (SKW) is a retail store for kids wear with good quality and latesttrends. We present an extensive range of kids wear that are manufactured usingdifferent fabrics such as Cotton, Silk, Wool and others. Available in a wide range ofgorgeous colors, designs and prints, these apparels are designed keeping in mind themost up-to-date fashion trends.Slogan:“Kids wear, with care”II.Sample Business PlanI.Vision:“To be a distinguished kid-wear retailer known worldwide for the quality of products,setting new trends and lifestyles”III.Mission:“To offer continuous value added products to our customers”.To accomplish this, we focus on exceptional design, innovation, quality, convenienceand interactive communication.4BizPlanCorner.com

IV.Strengths and Core Competencies: Material Cut Design conformation Embroidery Stitching Stability Finish Color fastnessV.Sample Business PlanThe foundation parameters on which we ensure the excellence of our garments are:Challenges: Increasing competition, especially from big chains like Wal-Mart, Gap andLimited Incorporations High cost materials Changing demands and catering to this demand Changing fashions and changing behavior of demographics5BizPlanCorner.com

Services OverviewI.Services:Hooded T-ShirtsWe offer an exceptional range of t-shirts with hoods that are offered in a multitude ofcolors and patterns.Printed T-ShirtsWe make an extensive range of in print t-shirts that are offered in diverse colors andprints.Children's T-ShirtsSample Business PlanFor different age groups, our variety of children wear is offered in different sizes and istremendously comfortable to wear. Our offered clothing collections for kids are:An exclusive range of full sleeve children's t-shirtsHalf Sleeve T-ShirtsWe offer a broad range of half-sleeve t-shirtsCotton KnickersKnickers are one of the trendiest as well as the most comfortable garment for kids,Available in eye catching prints and colors.II.Benefits and Features:Highlighted features:-Lovely designs and prints-Eye-catching colors-Long-lasting Apparels6BizPlanCorner.com

-Comfortable to wear-Available in various sizesIII.Why people need this service? Various variety under a single roof Quality guaranteed goods Customization Capacity to accept mass orders Well-timed delivery Easy payment modes of CashSample Business PlanA number of the factors that have made us the ideal choice of our customers are:7BizPlanCorner.com

Marketing PlanI.Market Analysis:US kids wear market is highly competitive market, especially after big retail stores andchains like Wal-Mart, Gap etc entered in the market. Market is shifting from growth tomaturity. The clothing business saw approximately 167,934 million in retail sales; theshare of the Children's & infants' clothing stores is 7,082 millions, the total share of thestate Illinois is 328.8 millions, the share of Chicago is 43.356 millions.B. Market FactsSample Business PlanA. Market Descriptiona) Market Size:Clothing Industry of USA:In the year 2002, the clothing business saw approximately 167,934 million in retailsales, which were 136,398 millions in 1997. Women's clothing brought in 63,587millions, men's apparel accounted for 27,941 millions, and Footwear, includingaccessories, accounted for 25,948 millions. Jewelry, including watches, watch attach,novelty jewelry, etc accounted for 23,950 millions, Children's wear, including boys,girls, & infants & toddlers accounted for 14,287. Others accounted for 12,218 millions.8BizPlanCorner.com

Product descriptionIndustry totalWomen's, juniors', & misses' wearMen's wearFootwear, including accessoriesJewelry, incl watches, watch attach, noveltyjewelry, etcChildren's wear, incl boys, girls, & infants &toddlersOtherIndustrySales Sample Business PlanSales( mn)167,93463,58727,94125,948These statistics computed on the information taken from US Census official dustry/E448.HTM (11th March 6, 2009)9BizPlanCorner.com

Industry RatiosTotal sales (Mil )Sales per establishment ( 000)Sales per employee ( )Sales per of payroll ( )Annual payroll per employee ( .2214,99512,965Employees per establishment9.58.2Sales per capita ( )582500Establishments per millionresidents519574Sample Business PlanThe clothing business saw approximately 167,934 million in retail sales, which are 136,398 millions in 19972.In total, there was a growth of about 23.1% from 1997 to 2002 in the industry. In thistable, the total sales per establishment stands at 1,121,000 and sales per capita is 519 million. This table also shows other indicators such as sale per employee, salesper payroll, annual payroll per employee and comparison of these indicators with pastdata. In this table, this is clear that for the past 5 years, growth in every indicator issignificantly huge which shows the potential of the market and that the market isgrowing ata/industry/E448.HTM (11th March 6, 2009)10BizPlanCorner.com

Industry totalSpecialty storesDiscountersDepartment storesMajor chainsOff-price storesMail orderOutletsOther storesIndustrySales 736211755384According to the American Apparel Manufacturers Association, the breakdown on totalshare of retail sales was as follows: Specialty stores: 21 percent; discounters: 19percent; department stores: 19 percent; major chains: 17 percent; off-price stores: 7percent; mail order: 6 percent; outlets: 4 percent; and other stores: 7 percent3.Sample Business PlanRetail descriptionIt highlights that discounter stores like Sam’s Kids Wear have the second largest sharein the total retail sales in the USA.C. Market Growth:The total US market for all clothing is 167,934 millions, out of which the share of thechildren's & infants' clothing stores is 7,082 millions which was 4,638m in 1997,almost grown by 50% since last 5 dustry/E448.HTM (11th March 6, 2009)11BizPlanCorner.com

Industry Ratios20021997Total sales (Mil )7,0824,638Sales per establishment ( yees per establishment109.1Sales per capita ( )2417Establishments per millionresidents2218Sales per employee ( )Sales per of payroll ( )Annual payroll per employee ( )Sample Business PlanMarket in 5 years grown very drastically, almost growth rate of 50% can be observedaccording to this graph.In this table with sales, different indicators are shown in a comparison of past 5 yearsand it’s clearly shown that sales per capita and establishments per million residentsincreased drastically with sales, showing immense growth in the industry/E448.HTM (11th March 6, 2009)12BizPlanCorner.com

Industry total Kids MarketSpecialty storesDiscountersDepartment storesMajor chainsOff-price storesMail orderOutletsOther storesIndustrySales %100%21%19%19%17%7%6%4%7%Industry 54424.932283.288495.754In this table, market share is shown as per type of business (Outlet type). If we look at itclosely, major share is taken by specialty stores, discounters, department and chainstores. So for discounters it’s a great opportunity to penetrate in this market.Sample Business PlanRetail descriptionThe above chart shows the share of Children's & infants' clothing stores in the USA as 7,082 millions out of which the total share of state Illinois is 328.8 /industry/E448.HTM (11th March 6, 2009)13BizPlanCorner.com

Sample Business PlanThe above chart presents the share of Children's & infants' clothing stores i.e. 7,082millions. The total share of the state Illinois is 328.8 millions which was 247 millions in1997, which almost increased by 100 millions and 33% in last 5 years6.Kids’ clothing market share of Illinois was 328.8 millions in 2002, out of which the shareof Chicago is 43.356 millions. It highlights that market is growing at the rate of stry/E448.HTM (11th March 6, 2009)14BizPlanCorner.com

D. Market Trends:From 1995 to 2005 break dedicated to children's wear in malls more than twiceE. Market Demand:Shifting demographics made the children's and infants' wear business look attractive tonew entrants and, therefore, the market became tremendously competitive. Big retailchains began to penetrate the market. Sales continued to grow. Fueling this growth wasa climb in birth rates in the late 1980s and early 1990s, which amplified demand forinfants' and toddlers' wear.Industry sales normally peak between late August and December. Throughout thisphase, stores compete for valuable back-to-school sales and holiday gift purchases.Stores normally generate between 30 and 40 percent of their annual sales in thesemonths.Sample Business PlanNationalized brands began producing small-sized versions of their teenager and maturelines and invested a lot in expanding their infant and children outfit’s brands.15BizPlanCorner.com

F. Industry Life CycleKids clothing market is at maturity stage although it’s generating good demand andsales and has good scope for businesses for next few years. The higher birth rate wasobserved in late 90’s and early 2000’s which boomed the market and now demand isstill growing but with slow birth rates as compared to past years. This makes industrystand at maturity level in its life cycle.Cyclical trends in Industry With record high numbers of infants, toddlers, and children attending preschoolduring the year, clothing purchases for this slice are becoming less cyclical. This business has conventionally been highly seasonal, as with other clothingbusinesses, so spring is on the way, this is also the season for weddings, andKids has some gorgeous dresses and suits for wedding parties. New sessions of schools will be starting in month or so (march to august) whichalso boost the sales of kids wear. Month of December also a high sales month due to Christmas celebrationspeople love to shop and buy presentsSample Business PlanAlthough this sector of the industry is season-driven, this cycle will not affect it much.16BizPlanCorner.com

Clothing storesMen's clothing storesWomen's clothingstoresFamily clothing storesOther clothing storesDescriptionClothing and clothingaccess. storesClothing storesMen's clothing storesWomen's clothingstoresFamily clothing storesOther clothing y-0Jun.2200214,177 3Sample Business PlanDescriptionClothing and clothingaccess. storesJan.200210,361As green color filled columns show, sales during March, August, November andDecember is very high in the US7.G. Market Potentials:Shifting demographics made the children's and infants' wear business attractive to newentrants and, therefore, tremendously competitive.Sales will continue to grow in the next 3 dustry/E448.HTM (11th March 6, 2009)17BizPlanCorner.com

In the next 5 years, total sales in kids’ clothing retail market will be 57.66millions and in 2012 will be 76.7 mill. It shows that there’s a huge and profitable market for Children's & infants'clothing stores in the city of Chicago, which is growing at rapid rate. This growth was due to a climb in birth rates, which amplified demand for infants'and toddlers' wear.Retail descriptionIndustry totalSpecialty storesDiscountersDepartment storesMajor chainsOff-price storesMail orderOutletsOther storesIndustrySales %100%21%19%19%17%7%6%4%7%Sample Business Plan Market 3.034518BizPlanCorner.com

The above are the growth potentials for this type of business. It clearly shows if you area discounter, u can penetrate easily and win very huge share almost of 8.24 millions. H. Market Opportunities:Market is growing with a rapid rate so it’s a great opportunity to enter in themarket where demand is increasing drastically Birth rate has remained high in the past 5 years meaning more potential for kids’wear purchasing. Country is going through recessionary period so parents are on tight budget,which is a great opportunity for our business to offer discounts and low pricingpackages to attract our consumers This business has conventionally been highly seasonal, as with other clothingbusinesses, so spring is on the way, this is also the season for weddings, andSam’s Kids Wear has some gorgeous dresses and suits for wedding parties. New sessions of schools will be starting in month or so. With the infants' and children's wear division on the rise, the industry's openingproducts continue to be licensed apparel, such as Scooby Doo, Star Wars, Bobthe Builder, and Blues Clues as well as sports-related licenses and focusing onthese character printed wears business can achieve huge sales as demand ofthese characters is increasing amongst kids.Sample Business PlanEven if you are a simple outlet, you can be in the class to earn 1.73 million markets asjust a starter, which is not a bad option. It shows great potential for small business orany starter in the market.I. Barriers to Entry:Market is highly competitive, so no such barriers exist in the industry.J. Regulations:No such regulations except license required from animator of the character which will beused in printing.19BizPlanCorner.com

II.Service Potential:As our business is clothing for kids, and in this sector trends changes quickly, sopotential products will always be in line with differentiation of colors and design.Targeted Audience:Since our business is kids wear, so our primary target audience will be:Demographics:Primary Target:Age: 6-11 yearsSecondary:FamilyOur target markets for kids’ clothing are Parents (Mother / Father).Sample Business PlanIII.20BizPlanCorner.com

Age5 to 9 years10 to 14 yearsTotal(5 to 14 Years)Population218,522224,012442,534According to US Census BureauCharacteristics of Targeted Customer Groups (sales):DescriptionMarket TotalGirls' clothing & accessoriesInfants' & toddlers' clothing & accessoriesBoys' clothing & accessoriesOther%Sales ( mil)100%50.86%23.77%19.03%6.34%43.3522.05Sample Business PlanTotal population of Chicago is 2,896,016 and our target audience is:10.38.252.75These stats are clearly showing that in kids sectors, girls’ wear sales is 50 % of thewhole kid sector so our products line would be according to the needs of the market andpurchasing trends.21BizPlanCorner.com

IV.Competition:Anne's Kids-Bridal gownsFlower girlsand Bridesmaids4509 N Clark St, Chicago, ILLMNOPProducts:-Missing Dog Head T-ShirtBlack Ladies T-ShirtBabysue T-ShirtSample Business PlanProducts:2574 N Lincoln Ave, Chicago, ILPottery Barn KidsProducts:-Girls' Bodysuits & TopsGirls' Sweaters & JacketsGirls' Dresses & PantsOutfitsBoys' Bodysuits & TopsBoys' Sweaters & JacketsBoys' Overalls & PantsGifts & AccessoriesNewborn Collection22BizPlanCorner.com

-Baby Clothing Sale2111 N Clybourn, Chicago, ILWear Me Out Childs Wear-Children's boutique clothingBoys formal wear and girls formal wearBoys suits and tuxedosSample Business Plan3724 N Southport Ave, Chicago, ILPsycho Baby-Cool Baby Girl ClothesCool Baby Boy ClothesHip Girls' ClothingHip Boys' ClothingCool Baby & Kids' TeesTrendy Shoes1630 N Damen Ave, Chicago, ILV.Market Niche:Our niche market is kids sector or people who buy kids wear.VI.Marketing Strategy Basic strategy of our business is to launch kids wear by the next two months.Initially we launch normal kid’s wear which will cater the needs of masses. By the end of the year, we will launch customized products to cater to the need ofevery individual customer. Later on, school accessories and school wear are also in the pipe line23BizPlanCorner.com

a) Value PropositionSample Business PlanSam’s Kids Wear:Our core value proposition is that we will add value to our product by providingmatchless kids wear with extensive range of color and different sizes in comfortable anddurable fabric with easy mode of cash transactions at comparatively low prices.b) BrandingWe position our selves as a brand, which gives quality products at fairly low prices withextensive range of vibrant colors and continuous value addition to our products withinnovative ideas in design in printing.24BizPlanCorner.com

c) Marketing Objectives To offer continuous value added products to our customers To achieve our financial target Set a benchmark in industry as a cost leader through minimization of waste andimprove performanced) Strategy Meet the demands of market and supply demanded goods on time without anybarrier or hurdle Offer excellent products at low price Make products according to the needs of the customer Give good hassle-free ambiance for shopping, which will help the business andgive edge over rivals Develop a kids-friendly store environment and decoration, which will attractparents to bring their kids in the store and shop with comfort.VII.Marketing Budget:2009Marketing and PromotionSample Business PlanImage ourselves as a brand with competitive edge 150,0002010 350,0002011 350,00025BizPlanCorner.com

VIII.SWOT Analysis Huge Product Line with variations. Business will have longer hours and better prices as compared tocompetitors. Discounts are available for bundle buying. Expertise in getting new products to the market quickly Expertise in providing good customer service Online selling could be a competitive edge over similar rivals Customization available for individual customersWeakness: New in business as compare to rivals Huge capital required to start business as credit is not easily available fromsupplier in start Marketing expense in the start will be huge, to establish brand name requiredlot of advertisingSample Business PlanStrength:Opportunity: Seasonal business: in summer demand is very high as new academic sessionstarts and also a wedding season Sector is growing fast in state and in the area our business operating Girls’ wear demand is huge so adding value in this category will be the greatadvantage High birth rate since past years is another opportunity for kids wear section Animated movies increased the demands and popularity of printed shirts for kidsThreat:26BizPlanCorner.com

Competition is high and big chains like Wall-Mart, Gap and Limited Incorporationintroduced their kid’s shops in the city and penetrating in market People are more conscious for pricing due to recession and going for discountsSample Business Plan 27BizPlanCorner.com

HelpfulHarmfulFor achieving the objectivesFor achieving the objectivesStrengthWeakness Internal Huge Product Line with variationsBusiness will have longer hours andbetter prices as compare tocompetitorsDiscounts are available for bundlebuyingExpertise in getting new products tothe market quicklyExpertise in providing good customerserviceOnline selling could be a competitiveedge over similar rivalsCustomization available for individualcustomersOpportunitiesExternal Seasonal business: in summerdemand is very high as new academicsession starts and also a weddingseason Sector is growing fast in state and inthe area our business operating Girls wear demand is huge so addvalue in this category will be the greatadvantage High birth rate since past years isanother opportunity for kids wearsection New in business as compareto rivals Huge capital required to startbusiness as credit is noteasilyavailablefromsuppliers in start Marketing expense in thestart will be huge, to establishbrand image required lot ofadvertisingThreats Competition is high and bigchains like Wall-Mart, Gap andLimited Incorporation introducedtheir kid’s shops in the city andpenetrating in market People conscious for pricing dueto recession and going fordiscountsSample Business PlanGraphical Presentation of SWOT28BizPlanCorner.com

IX.Marketing Mixa) Product:The different age groups, our variety of children wear is offered in different sizes and istremendously comfortable to wear. Our main wearing collection offered for kids are:Hooded T-ShirtsWe offer an exceptional range of t-shirts with hoods that are offered in a multitude ofcolors and patterns.Printed T-ShirtsSample Business PlanWe present an extensive range of kids’ wear that are manufactured using differentfabrics such as cotton, silk, wool and others. Available in a wide range of gorgeouscolors, designs and prints, these apparels are designed keeping in mind the most up-todate fashion trends.We make an extensive range of in print t-shirts that are offered in diverse colors andprints.Children's T-ShirtsAn exclusive range of full sleeve children's t-shirtsHalf Sleeve T-ShirtsWe offer a broad range of half-sleeve t-shirtsCotton KnickersKnickers are one of the trendiest as well as the most comfortable garment for kids,Available in eye catching prints and colors.29BizPlanCorner.com

b) Price:Sample Business PlanPenetration Pricing will be the pricing strategy for our business, as our business isnew and at the high street of Chicago where competition is huge, so we try to give goodquality at low price to penetrate in the market and try to achieve higher sales volume toset low price and better quality strategy. Once we achieve this objective then try tocharge higher price for our customized products for value addition.c) Place:At one of the high street of Chicago Cityd) Promotion:Advertising:1. Above The Line:-Internet30BizPlanCorner.com

-Radio-Magazines ( Parents and kids magazines only)-Newspapers ( Only Weekends for two or three weeks)-Flyers ( through hawkers)-CouponsSample Business Plan2. Below The Line:31BizPlanCorner.com

Operational PlanI.Service Execution ModelRetail Store: They will open a store in Chicago, Illinois area which will be the primarylocation for their supplies storage also.Online Selling: They will offer their main products on the website, which will provideconvenience to customers in purchasing kids wear and related products.Sam’s Kids Corner2009 launch objectivesSelect LocationMarchAprilMayJuneJuly – Sept.20092009200920092009Sample Business PlanSKW will sell products by following methods: Develop Store Start Basic KidsProducts availablefor Selling Start Online Selling Full services(Customization)Expand ProductLineStart Planning ForNew Location 132BizPlanCorner.com

Location:N Damen Ave Chicago, Illinois.Legal Environment SKW has no legal obligations with their suppliers and customers except for theprinting of animated copyright characters. The company faces no major legal constraints other than the restriction ofmarketing directly to children under age 13 under the Child Protection Laws.III.PersonnelManagement and OrganizationSample Business PlanII.SKW operates with 5 people staff. It helps them controlling budget and decreasingoverhead expenses as well.Mr. Samuels Arnold(Owner/Manager/Accountant)Supervisor Inventory(Retail and Store)TailorSales Person 1(For BasicCustomization)Sales Person 233BizPlanCorner.com

IV.Management StrengthAcademic:Mr. Sam is Business Graduate from University of Chicago having good academicknowledge of retail business.Professional:Mr. Sam has vast experience of retailing and clothing business at top levels in some ofthe biggest chains at international and national level for 5 years.Sample Business PlanA. Management’s Credentials and ExpertiseB. Experience in Management Position: Mr. Sam has worked as a senior manager for clothing section of Wall-Mart foralmost 3 years. He has also worked as Assistant director kids section at Gap international for 2years. He has also been continuously involved in strategic planning and decisionmaking in the companies.34BizPlanCorner.com

Advisor & Consultant:Chicago business consultants group inc.Our Lenders say YES, when your bank says NO.Advance Consulting Group International300 West Adams Street Chicago, IL 60606(312) 357-1840Sample Business PlanRonald J Filian847-839-8810 Phone866-344-4339 Fax35BizPlanCorner.com

Financial PlanI-Start-up Expenses SummaryStartup Expense SummarySam’s Kids WearSources of CapitalInvestment requirement 1,000,000-Total Investment 1,000,000Sample Business PlanThe start-up expenditures for Sam’s Kids Wear (SKW) are summarized below:Startup ExpensesRetail store developmentIn-store StaffCapital ExpendituresConsulting ServicesPromotion 346,000 290,000 150,000 90,000 5,000Total Start-up Expenses 881,00036BizPlanCorner.com

BizPlanCorner.com37Sample Business Plan

II-Revenue Forecast (3- Year)Revenue Forecast (3 Years)Year 1Year 2Year 3Kids Clothing RangeHooded T-shirts 367,500 1,470,000 4,410,000Printed T-shirts 428,750 1,715,000 5,145,000Children's T-shirts 245,000 980,000 2,940,000Half Sleeve T-Shirts 122,500 490,000 1,470,000 61,250 245,000 4,410,000sub total clothing range 1,225,000 4,900,000 14,700,000Accessories- 35,000 42,000Total Revenue 1,225,000 4,935,000 14,742,000Cotton KnickersSample Business PlanSam’s Kids Wear, Inc38BizPlanCorner.com

III-Profit and Loss Projection (3-Year)Year 1Year 2Year 3Kids clothing rangeAccessories 1,225,000- 4,900,000 35,000 14,700,000 42,000Total Revenue (Sales) 1,230,000 4,940,000 14,751,000Retail store development 346,000--In-store Staff 290,000 840,000 940,000Capital Expenditures 150,000 148,200 150,000Consulting Services 90,000 480,000 480,000Promotion 5,000 6,000 6,000Total Operating Expenses 881,000 1,474,200 1,576,000Profit Before Taxes 322,900 3,385,800 13,025,000Taxes (10%) 32,290 338,580 1,302,500Net Profit 290,610 3,047,220 11,722,500Operating ExpensesSample Business PlanRevenue (Sales)39BizPlanCorner.com

B

Marketing Plan I. Market Analysis: A. Market Description US kids wear market is highly competitive market, especially after big retail stores and chains like Wal-Mart, Gap etc entered in the market. Market is shifting from growth to maturity. The clothing business saw approximately 167,934 million in

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