2020 Business Plan

Junior Achievement San Diego, California

Torrey Pines High SchoolTeacher: Ashby

Volunteer: Matt Showley

Executive Summary

OUR PRODUCTSoCal Sweatsuits is a smallbusiness, targeted to teens and young adults; where they can buy good quality fashionable sweat suits while still staying within their tight budget. Each month we will have a new style of sweatsuits to keep up and create fashion trends along with adding exclusivity to popular designs.

OUR MISSIONOur mission is to provide a good quality option for women and men who want to be stylish without spending hundreds of dollars. We will also provide support to the less-fortunate by donating product, money, and time to benefit the local community.

COMPANY DESCRIPTIONHere at SoCal Sweatsuits we focus on providing a comfortable and stylishsolution for teens to young adults. We deliver handmade excellence to our customers in order to show off their style while still maintaining comfortability and their wallet.

COMPETITIVE ADVANTAGEThrough our relationships with our supplier, we are able to locally mass produce one of a kind sweatsuits through our proprietary dyeing and printing processes.

Summary of Financial PerformanceSoCal Sweatsuits is still in operation so the financial information is not final. However, as of April 22nd, the company had generated $533.32 in net profit after 26 sales. We broke even in March which was our most profitable month with $1,375 in gross revenue. Some of the financial data provided may be altered in the future due to the COVID-19 crisis.

SUMMARY STATEMENT OF PERFORMANCESoCal Sweatsuits has been very active in the months of March and April. We are currently tie dying our merchandise to be sent out to our customers.

Table Of ContentsExecutive Summary………………………………...1How to Buy ………...………………………………. 2Innovation…………………………………………… 3Marketing……………………………………………. 4Financial Performance…………………………….. 5Break-Even Analysis and Liquidation….………….6Leadership and Organization………………………7Learning Experiences……………………………....8

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1.) Find us on Instagram @SoCalSweatsuits2.) Pick out which color would look the best and figure out

sizing using our guides (posted on each photo).3.) Direct Message us stating the color and sizing you want.4.) Send us a Venmo.5.) Wait as your order will be hand-crafted and ready

within 1-2 weeks.6.) Get comfy when your

customized sweatsuit arrives at your door!

1.) Find us on Instagram @SoCalSweatsuits2.) Pick out which color would look the best and figure out sizing using

our guides (posted on each photo).3.) Direct Message us stating the color and sizing you want.4.) Send us a Venmo.5.) Wait as your order will be hand-crafted and ready

within 1-2 weeks.

1.) Find us on Instagram @SoCalSweatsuits2.) Pick out which color would look the best and figure out sizing

using our guides (posted on each photo).3.) Direct Message us stating the color and sizing you want.4.) Send us a Venmo.

1.) Find us on Instagram @SoCalSweatsuits2.) Pick out which color would look the best and f

3.) Direct Message us stating the color and sizing you want.

STEP BY STEPStep by step model on how to buy from us!

1.) Find us on Instagram @SoCalSweatsuits

2.) Pick out which color would look the best and figure out sizing using our guides (posted on each photo).

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InnovationWe are devoted to following and creating new fashion trends that will

allow individuals to express themselves through their apparel choices. Our tight-knit relationship with our suppliers and design artists allow us to

have first-movers advantage and stay on top of trends that we see. This includes our tie-dye collections, but also gives us the ability to expand into sports team apparel, star collection, etc. Within our lounge-wear focus we can produce our sweatsuits as well as tank tops, sweat shorts, socks, etc. We will continue to serve our local community and instill the same values

that a local business entails, with quick responses and real human interactions. This will be very beneficial in partnerships with school sports

teams and clubs in general.

SoCal Sweatsuits is a local company and we take pride in our community. As we move forward and expand our operations we aim to partner with

certain community initiatives. This will include providing capital, merchandise, time, and our audience in order to help out those less fortunate. We are looking to partner with the Monarch School of San

Diego to give school supplies to students upon every sale. This will further incentive the customer to buy and we will include a letter in each

packaging informing the buyer of where the donation went and more ways to help.

Social Responsibility

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Marketing

MARKET ANALYSISA survey, targeted at teens in high school ages 14-18, has provided us with necessary data to give an in-depth market analysis. According to our survey, 58% of teens knew what a sweatsuit was, but only 15% have ever worn a sweatsuit before. That 15% coincided with 15% saying that they own a sweatsuit. The vast majority (70%) said that a price range of $55-$75 was a fair price for the hoodie and sweatpant combination. Our main competition is located 15 miles up the coast of California and has their prices at $60. Our $55 price is not only cheaper, but we aim to provide a better quality product. Our turnaround time is also three times as fast as our main competitor. As for our larger clothing competitors, they aren't doing the customizability that we offer as their focus is mass production. Therefore, we consider ourselves to be in the loungewear product category in which we plan to dominate.

PRODUCT LINEOur sweatsuits will retail for $55 for both the hoodie and sweatpants. There is also an option to buy seperately for $30 a piece. Our orders are customized for each individual and are ordered based on payment being received. This allows our skus to be unlimited and allows us to fully have the process be customizable. We are able to accommodate for any color combination through our mixing techniques. Our relations with our supplier allows us to get fast shipment of sizes small through double-extra large for both the hoodie and sweatpants. Our supplier has many product lines which will allow us to extend our product line in the future. This includes tank tops, t-shirts, shorts, swimsuits, socks, crewnecks, etc.

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Financial Performance

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ExpensesMerchandise - $820.30 Dye - $50.71Marketing - $25.67Total Expenses - $896.68

The graph above shows all of SoCal Sweatsuits’ financial transactions through April 22, 2020. Revenue is represented by the green line, expenses are shown by the red line, and net income is depicted by the gray line between them. It shows that March was the most profitable month with $1,375 in revenue and $891.05 in profit. This month helped cover some of the start-up expenses in February and allowed us to have capital to reinvest in the future.

SoCal Sweatsuits is still in operation so the financial documents are subject to change in the future. Each sweatsuit costs $25 to make and we ensure at least a 55% profit margin by marking up the price to $55. After some start-up costs in February, we were able to break even in March as depicted by the table on the following page.

RevenueProduct Sales - $1430Total Revenue - $1430

Net Profit: $533.32

Profile of Expenses, Revenue, and Profit

The Break-Even Analysis above shows how SoCal Sweatsuits had $127.92 of start-up costs from purchasing merchandise and dye in February. The company was able to reach the break-even point and start generating a profit in March as depicted by the arrow at the bottom of the chart. The March supply was purchased using the revenue generated by sales.

Break-Even Analysis and Liquidation Strategy

LIQUIDATION STRATEGYThe liquidation strategy for SoCal Sweatsuits at the end of this project is relatively simple. Each member of the group has 20% equity. First, we will pay back the members who invested more of their personal capital. Then, we will divide the remaining profit evenly amongst the members.

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Leadership and Organization

MEET THE TEAM Being a local small business, our whole team works together to create handcrafted and unique sweatsuits. Not only are we creating our product ourselves, we also have the benefit of being part of our target market.

Brynn Wyandt Manager and fashion expert. Never wearing the same outfit twice and constantly online shopping, I know the new and up in coming with fashion! I am a natural leader that is very passionate about SoCal Sweatsuits! Liz Trask Marketing guru. As a very outgoingpeople person I am very good at connecting with customers and spreading the word about ouramazing sweatsuits!

Eric WorkmanFinance crackerjack. After two years of experience in financial literacy classes in high school, I felt prepared to lead the financial aspects of the business. My time as an Accounting student and TA allowed me to have the skills necessary to oversee the finances of SoCal Sweatsuits.

Carter Chasson Supply chain wizard. I am an extremely tech-savvy and motivated individual who is very efficient on the internet in finding the best suppliers to manufacture our products.

Courtney Wayland Sales savvy. As a natural people person, I am extremely comfortable talking to anyone and using my energetic personality to get them excited about our company and products.

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We are all a tightly-knit group of students who all share the love of entrepreneurship. We have each chosen roles that coincide with our specific expertise. That being said, we consult each other on all major business decisions and vote when appropriate. This organization makes our production run very smoothly as we each know our roles, but we also have an equal say in the future of SoCal Sweatsuits. We hold weekly meetings where each person gives an update on their role in the business. We are very focused on organization and each person is responsible for making sure they’re documentation is in order at all times. Our intrinsic motivation drives sales and allows our passion to shine through with each and every sweatsuit that we produce. We each hold an equal stake in SoCal Sweatsuits at 20%.

ORGANIZATION

Learning ExperiencesCreating a company through the Junior Achievement pathway has led

us to a lot of new experiences and taught everyone in a group something valuable we didn’t know before. When we had our product line in mind, all the pieces fell together as we all have different skills to contribute. We found how to apply out unique skills and personalities into certain roles of our company. Even though we all had the same roles in mind, we definitely had our share of different opinions and

strategies to use. We learned how to respect and teammates opinions and work collaboratively to reach an agreement.

By starting a functioning local business we really related to other business owners who are facing tough times, like a natural disaster,

technology shift, economic problems, and in this specific time, a global pandemic. We truly know how it feels to be affected by this in every aspect of business as manufacturers stop producing and customers

become less interested. It is tough, as we still want to keep our business running at top speed, but almost impossible in these times. But, we have learned to adapt and prepare for the future, and work

even harder to continue our pathway to be successful.

In the future we strive to step out of the local market, and be able to deliver our sweatsuits by mail. We want to reach a larger target market by expanding our products to different items of clothing and loungewear. We have seen great success in this company thus far, and are optimistic that we will come out of this program and pandemic with more tools, knowledge and experience to be successful.

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