NATIONAL INSTITUTE OF FASHION

TECHNOLOGY

ENTERPRENIURSHIP MANAGEMENT
CREATION OF BUSINESS PLAN

Submitted By
Divya Rana

Submitted To
PROF.SAMEER SOOD
Department of fashion management studies (FMS),
National Institute of Fashion Technology (NIFT)
(Ministry of Textile, Govt. of India)

EXECUTIVE SUMMARY

Adventurequeen.com will be an online website which will offer stylish

women outdoor clothing whether it will be for skieing,snowshoeing,wall
climbing etc. and also the equipment related to it.To make the business
cost effective ,adventurequeen.com will tie up with a manufacturer
company who will take care of its inventory also that is Magic Clothing
Company. Thats how it will reduce the cost of inventory by having
third party.Adventurequeen.com will just got the order online, process
it and get the payment online. Divya Rana and Monika Rawat will be
the owners of the website and will manage all the operations .Further
after we will expand to retail stores.

INTRODUCTION OF BUSINESS

COMPANY SUMMARY

adventur
equeen.com

Adventurequeen.com will offer creative women's outdoor clothing,

online, that is both functional and beautiful. Divya Rana and Monika
rawat, co-owners of Adventurequeen.com, will create a cost-effective
operation that will eliminate the cost of inventory by having a third-party,
Magic Clothing Company, handle all manufacturing and shipping of
clothing to the customer. Adventurequeen.com will process the order and
collect the payment online. The order will then be sent to Magic Clothing
Company to be filled and shipped. Adventurequeen.com will focus on
clothing design and marketing of its products.

1.1

1.2

OBJECTIVES
Create a unique stylish outdoor clothing lines product and offer
them in every part of India by awareness, by the end of year.
Generate retail sales of over Rs. 1, 000, 00, 00 in year one, both on
our site and on other site also.
Maintain a gross margin of over 65%.
To achieve 100 customer positive feedback comments in one year

MISSION

Our mission is to present consumers with designs, styling and clothes that
energizes any outdoor activity. Whether it be snowboarding, running along
the beach, or drifting down a river, Liquid Culture has comfortable,
durable clothing that will look and feel wonderful.

1.3

KEYS TO SUCCESS

Accessible website that is entertaining to surf. Like a trip to your

favorite store where you always find something new that you want.
Establishing a strong advertising campaign in a traditional media
vehicle; i.e. magazines.
Excellent vendor relationship that will facilitate quality
manufacturing of Liquid Culture's clothing and quick shipment of
orders.
Acquiring an excellent design staff.

2.1

COMPANY OWNERSHIP

Adventurequeen.com is partnership Corporation owned by Divya Rana who

is student of National Institute of Fashion Technology and Monika Rawat who
is Head of Designer at Kukreja Institute of Fashion Management, Dehradun.
There are three type of structures from which business can be started, which
are as follow;
Sole proprietorship
Partnership
Joint stock company

2.2

START-UP SUMMARY
Adventurequeen.com start-up costs consists mostly of design and
marketing. It has 56,00,000 in investments and 20,00,000 in a short-term
loan.

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures

20,00,000
10,500
0

Consultants
Insurance
Rent
Leased Office Equipment
Computer Equipment/Software
Website
Other
Total Start-up Expenses

80,000
0
75,000
10,00,00
90,000
70,00,00
0
Rs.33,25,500

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

Rs.10,00,500
0
0
0
Rs.40,00,,500

Total Requirements

Rs. 43,26,000

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

Rs.33,25,000
Rs.10,01,000
Rs.43,26,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

0
Rs.33,25,000
0
Rs.10,01,000
Rs.43,26,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

0
20,00,000
0
0
20,00,000

Capital
Planned Investment
Investor 1

Rs.13,
00,000

Investor 2
Other
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

3.0

Rs.900,000
0
0
22,00,000
5,80,000

Total Capital and Liabilities

Rs.43,26,000

Total Funding

Rs 43,26,000

PRODUCTS
Adventure.com will sell women's outdoor clothing online. We will offer
outdoor clothing for almost every type of active use. We will focus on the
seasonal clothing demands of our customers including the following:

Fleece outerwear.
Rain gear, waterproof breathable, as well as coated nylon.
Synthetic clothing for outdoor activities.
Hats.
Shorts.
Pants.
Shirts.

HOMEPAGE OF
ADVENTUREQUEEN.COM

4.0

MARKET ANALYSIS SUMMARY

In the past 15 years, women's outdoor wear has grown into a billion dollar
niche in the clothing industry. The popularity of the Internet has launched
a number of online stores for women's outdoor wear but no company is
exclusively selling their products online. There are a number of reasons
for this but the strongest is that the concept is new and untested. Will
customers buy something that they wear that can only be seen online?
We believe they will, if the process is fun and the products are great and
cheap.
The key is marketing our target customers in the traditional advertising
medium for fashion, i.e. women fitness magazines.
The ads will focused on the eliminating the middle man in your clothing
budget and stepping up to the distinctive style of Adventurequeen.com.
The company logo will also be an important marketing tool in bringing
customers to our website.

4.1

MARKET SEGMENTATION
Adventurequeen.com will be focusing on two distinct groups of women
that purchase outdoor clothing:

Women 17-25 years of age: Youth drives the market so this is the
important group to attract to the website. They have less money than
the older group so we must give them what they want for less. The
key is to have inexpensive selections in each clothing group that have
the popular cut. The company's logo attractiveness to this group can
not be stressed strongly enough. The initial small purchases will grow
larger over time.

Women 26-40 years of age: They are the core group that will drive our
success. This target group is responsible for the growth of outdoor
women's wear. They will be harder to pull into the website. Once
there, the key will be promoting the quality, attractiveness
and savings. In addition, we will have to assure that the purchase will
fit the way the customer wants it to. It will be crucial that the return
policy is hassle-free and speedy.

STRATEGY AND IMPLEMENTATION

SUMMARY
5.0

Adventurequeen.com will win market share in the women's outdoor

clothing niche by aggressively pursuing visibility with its target customers.
5.1

COMPETITIVE EDGE
Adventurequeen.com competitive edge is its focus on the process than on
product. The website is just the endpoint of an entire marketing program
to drive customers' interest in outdoor activites related to adventure.
Though we have confidence in the quality and attractiveness of our
products, we know that building the road to the website is our most
important job. We will introduce a new clothing measurement feature
that is fun to use and
will reduce
customers confusion on how the
clothing will fit. This will increase customer satisfaction
and reduce
returns.
Monika Rawat will be in charge of the clothing design team. As senior
clothing designer for Woman Clothing with Adventurequeen.com, We are
ready to change how quality women's outdoor clothing is sold.
Adventurequeeen.com agreement with Magic Clothing Company is
another strong competitive advantage. Our design team will work closely
with the Magic's based manufacturing facilities. The Magic Clothing
Company will maintain the inventory and will produce sufficient product to
meet the planned demand. This will keep production costs low for
products and put a cap on our overhead.

5.2

MARKETING STRATEGY
Our marketing strategy is a simple one. In women's fitness magazines
like Self, Shape and Strive,Womens fitness etc. We will introduce
customers to their products and website. We will also advertise in Vogue
and Elle girl magazines.
For the first two months, we will offer 10% off for all purchases under
Rs2000, and 15% off all purchases over Rs2000. We will offer the same
discount strategy three more times during the year when new seasonal
clothing is introduced.

5.2.1

PRICING STRATEGY

Adventurequeen.com pricing strategy is to pass on most of the store

mark-up to the consumer in reduced price for clothing. This advantage
has no negative impact on our sales profit and will also absorb some of

the initial cost of offering discounts during our first three months of
operation.
5.3

SALES STRATEGY
Adventurequeen.com will launch a Rs.20,00,000 ad campaign targeted at
our core customer groups. The focus of the ads will be to "keep the
money you give to the middleman" and use it to get outdoors and enjoy
life. Liquid Culture's attractive logo will be heavily displayed in these ads.
We estimate it will take most of the year to build our sales to the point
where we begin to show a profit.
Adventurequeen.com will offer discounts at various times of the year to
even out seasonality and build initial awareness of the website.

5.3.1

SALES FORECAST

We expect sales to increase at a steady rate for the first year. It will begin
slow as we open, but will quickly pick up as our customer base increases.
We will see a sales increase of 38% between the first and second year. We
feel that we can accomplish this steady goal and maintain this amount of
sales.
Table: Sales Forecast

Sales Forecast
Year 1
Sales
Clothing
Other
Total Sales
Direct Cost of Sales
Clothing
Other
Subtotal Direct Cost of Sales

20,170,000
0
20,170,000
Year 1
Rs.1,249,000
0
Rs1,249,000

Year 2
3,000,000
0
3,000,000
Year 2
Rs1,800,000
0
Rs1,800,000

6.0

MANAGEMENT SUMMARY
I will manage the marketing team, as well as the development and
administration of Adventurequeen.com website. Monika Rawat will be in
charge of the clothing design team. She will also manage the production
of the designs by Magic Clothing Company.

6.1

PERSONNEL PLAN
Besides us, Liquid Culture will have a staff of eight:

Three member clothing design team.

Web administrator.
Two member marketing team.
Office manager.
Accountant.

Table: Personnel

Personnel Plan
Year 1
Marketing/Website Director

Rs1,84,000

Design Director

Rs.84,000

Designers

Rs.44,000

Web Administrator

Rs.48,000

Office Manager
Marketing Staff
Accountant
Other
Total People

Rs.36,000
Rs 96,000
Rs.39,600
0
8

Total Payroll

Rs.5,28,900

I want to start this business because of creating a unique idea of stylish

clothing line for outdoor activities like skieing,scuba diving, surfing etc. Today
in every segment brands are coming up with new clothing lines and
innovations but in outdoor activity ,it comes under athletics so as the brands
which are of sports are into it but Im going to create a unique brand online to
sell the stylish and innovative clothing for outdoor activities basically of
water sports apart from athletics.

SKILLS TO VENTURE BUSINESS

Sales skills are must needed for the business for the projected profit.

Planning: plans realistic and factor in things such as time and budget in
order to make their plans a reality.
Communication is an underlying skill for many others in business (sales
included).
Customer Focus
The ability to manage
Leadership

HUMAN RESOUCES

ORGANISATIONAL CHART OF ECOMMERCE

OPERATION

ECOMMERCE
MERCHANDIS
ER
DESIGNERS
ECOMMERCE
MARKETING

CREATIVE
DIRECTOR
CRM
ECOMMERCE
TECHNOLOG
Y

ROLES AND RESPONSIBILITIES OF KEY

EXECUTIVE:

CEO-The CEO is the founder of ExpectingU.com here which is me and

I will be managing all the activities relating to
merchandising,designing,supply chain to marketing everything.
Head of Supply chain management-The head of
Supply chain manager will make sure that all the work of chain
management from the procurement of the material to the supply will
go smooth and according to the time. He manages and oversee all the
supply chain operations including purchasing and inventory of the
material as well as the selection of appropriate vendors.

E-Commerce Merchandiser-They optimize the

performance of the inventory in the online store environment based on
customer behavior.Also,the Ecommerce merchandiser have to follow
up and coordinate with all the departments like designing ,planning,
sourcing everywhere so that he can approve the right collection or
right merchandise at the right time and at the right place. In
Adventurequeen.com Ecommerce Merchandiser will take up all the
charge of presenting the goods to the website and to look up over its
sales online also.

Marketing Head-The marketing Head of the company need

to take the role of make Adventurequeen.com, actually a brand by the
means of marketing and to look up over all the activities which are
going on in the world ,websites and on digital platforms to market the
brand at a different level.

CRM Manager-The CRM manager basically needs to solve

and look all the issues related to feedback, returns and complaints. He
will have the full responsibility of the website feedback and how to
maintain the relationship along with the customer values.

Designers-As we all know the designers will have to work

according to the innovation in the outdoor wear clothing line and also
things to be kept in mind as such the latest trends.

CRITICAL RISKS

Inventory Management: To operate type of retail store, owners

must keep an adequate supply of clothing on hand. When customers
search for a specific product on the, they expect the merchandise to be
available in the color and size of their choosing. Failure to purchase
enough inventory results in disgruntled customers and lost sales. On the
other hand, businesses that purchase too much inventory may incur steep
losses by selling the excess clothing at discount prices. A second risk of
buying too much inventory is incurring excessive storage costs. Storing
clothing in a temperature controlled warehouse is a time-sensitive cost
that can be reduced or managed by proper inventory management.

Trend Anaysis: Another risk is trend assessment. Trends in the

fashion industry are fickle, ever-changing and often elusive. A successful

business capitalizes on the latest trends and recognizes when such trends
are on the decline. One misstep may result in excessive inventory,
undermined credibility and confused brand identity for the store. All of
these errors may prove fatal . The brand may avoid these mistakes by
hiring experienced buyers, purchasing well-respected brands.

Business landscape

: The nature of the industry as a whole

poses significant risks to business owners. Cutthroat competition is a

large risk .Competition is must in this segment but in my business the
competition is much low as my website includes the innovation in the
maternity clothing.

Marketing: In marketing terms may incur risks through their

marketing strategies. The business must target the appropriate audience
and offer items that correspond with this demographic. Additionally, the
brand must adapt to changing economic conditions. In times of recession,
for example, companies that purvey expensive items should amend their
line to include less costly garments.

QUALITY CONTROL ASSURANCE IN

ONLINE RETAIL E-commerce retailers are responsible for
controlling the quality of both their products and customer service. No
business is perfect, but first impressions matter. Second impressions are
arguably even more important if the first one went wrong. Remember that
your goal isnt to avoid building brand aversion, but to build customer
loyalty.
It is good to formalize the process and procedure and make sure everyone
is fully trained. You can have this QC process manual, or automated within
a system. Either way, just make sure you do have a process. Its important
to review your QC processes anytime you anticipate a higher than normal
order volume to be coming through.
To illustrate how QC works within a system, Ill use my own system,
SkuVault, as an example. SkuVault eCommerce Inventory and Warehouse
Management System has built-in quality control and human error
prevention. In the quality control feature, you scan the order ID, which
then shows everything that should be included on that order. Then you
scan or select the item you want to pass. The picture pops up and you can
confirm if its the right item. If you scan the wrong item, SkuVault will alert
the user that this item was not originally on the order. You can pass or fail
items with custom fail reasons (such as damaged product, or wrong
product) and then theres a full history of who did the quality control and
exactly what they did. If you still have a mis-ship or damaged item go out,
you can see who did it and retrain them or whatever it takes to ensure
that it doesnt happen again.

LOCATION:
520, Chinmaya Mission Hospital Rd, Indira Nagar 1st
Stage, H Colony, Indiranagar, Bengaluru, Karnataka
560038

7.2

PROJECTED PROFIT AND LOSS

The following table and chart are the projected profit and loss for two
years.

Table: Profit and Loss

Pro Forma Profit and Loss

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Sales and Marketing and Other
Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Rent
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes

Year 1
Rs.22,170,000
Rs11,249,000
0
Rs.11,249,000
Rs 1,09,21,000
42.44%

Year 2
Rs.30,000,000
Rs.10,800,000
0
Rs.10,800,000
Rs.28,92,00,00
0
40.00%

Rs5,28,900
2,65,000

Rs.7,28,000
3,40,000

0
0
20,400
0
60,000
79,740
0

0
0
20,400
0
66,000
86,250
0

Rs9,80,000

Rs.11,00,000

Rs.108,2600

1,72,3500

Interest Expense
Taxes Incurred

67,574
20,000

72,281
87,721

Net Profit
Net Profit/Sales

9,95,026
0.02%

15,63,498
3.71%

PROJECTED RETURN ON INVESTMENT

PROJECTED ROI=NET
PROFIT\INVESTMENT*100
NET PROFIT:9,95,026
INVESTMENT:43,26,000
=9, 95,026\43, 26,000*100
=23.001%

PAYBACK PERIOD

STARTUP INVESTMENT/NET PROFIT

=43,26,000/9,95,026
=4.002