DAN BOOME/ /BA Graphic Design/ /Year 2/ /Enterprise and Innovation/ /Business Plan

1.The nature of your business

1. Business name

The Fallen Brave Clothing Company

2. Business activity

Clothing retailer, bringing a fresh approach to t-shirt design with hand designed t-shirts, also printed by hand, using 100% fully organic cotton fibres.

3. Mission statement

The Fallen Brave Clothing Company aims to embody in their designs that feeling everybody goes through in life where we lose the ones we love most, be it the death of a friend, family member or loved one, or losing someone you fell in love with, and over time, their memory fades. With The Fallen Brave we hope to give people something that they will be able to wear to remember those people they have forgotten or lost and through this never forget the ones that we love the most.

We feel that the current t-shirt and clothing markets are stagnated with many designs that are repetitive and boring. We aim to bring a fresh approach and put our own spin on the latest trends, producing designs that will help consumers distinguish themselves from the pack. Customers will know the have the highest quality product, hand made on

4. Business objectives

3 - 12 months

- To have sold 240 t-shirts through the online shop- To have sold 60 hooded sweatshirts through the online shop- Set up a network of online contacts through handing out promotional material at music

venues- Build relationships with 2 bands/artists based in West Yorkshire to wear our t-shirts at

gigs- Purchase printing equipment necessary- Ensure products are available in € for Irish and European potential markets

Next 2 years

- To have sold 960 t-shirts through the online shop- To have sold 600 hooded sweatshirts through the online shop- To have stalls at specific rock shows by supplying t-shirts to and designing for at least

3 bands/artists- To move into selling long sleeved sweatshirts, shirts, and accessories including hats,

beanies and sweatbands - To sell 120 of each new item within a year of going on sale- To advertise within rock magazines such as Kerrang!

(http://www.bauermedia.co.uk/Brands/Kerrang/), Rock Sound (http://www.rocksound.tv/contact) and NME (http://www.nme.com/contact).

- To have a rented space for production of clothing

Dan Boome BA Graphic Design Year 2

5 years

- To have opened a shop/retail space in Sheffield or Leeds- Look towards opening another shop in the West Yorkshire area- To have at least 2 employees- For the company to be paying for itself- To have a network of bands and artists who wear our merchandise and who we design

for- To make available all products for overseas sale, starting mainly with Europe

5. The people in the business

The business will initially be started with Stephanie McKenna as Printer, Samuel Blackburn as Manager and Director, both owners and partners with a 40% share each, with Daniel Boome as Chief Designer, Printer and 20% partner. To begin with we will be working part time as we attempt to grow the business, but as reputation and sales build, within a year we plan to each be working 5 days a week helping with every aspect of the business from printing, promotional work and input into the design process.We will, at times, also employ freelance illustrators and designers, as well as offering competitions to design students. Freelancers will be paid their standard rate plus a negotiated commission; students will work for free but be offered non-monetary rewards.When the business grows to a point where a shop is opened we will employ a sales assistant and a part-time printer, who will be paid above the minimum wage of £5.80 (http://www.hmrc.gov.uk/nmw/), allowing the 3 main partners to concentrate more on the running of the business, new designs, plus extended marketing and promotional strategies.

6. What is the structure of your business?

Dan Boome BA Graphic Design Year 2

7. What is the legal status of your business?

Limited Company

Advantages- No personal liability – in the event of problems with the business personal assets are

not at risk- Protection of name - Companies House will not register another name that is the same- More credibility in the market place – this can be especially useful when dealing with

banks for loans- Ownership and control closely related – shareholders and directors are the same

Disadvantages- Lack of capital due to no share issue- No benefits from economies of scale, i.e. bulk buying, cheaper borrowing etc- Lack of privacy – account balances and company details must be made public at the

end of each year- High accounting and legal costs for keeping of books and accounts

2. Resources

1. Products or services Describe the range of goods/services you are selling

Say what percent of turnover each will provide (e.g. boutique – 20% clothing, 60% jewellery, 20% hats)

Our products would be available in 3 main ways- Online shop- Music venue stands- Retail store

These would provide:

3-12 months- Online shop – 80%- Music venue stands – 20%- Retail store – 0%

Next 2 years- Online shop – 70%- Music venue stands – 30%- Retail store – 0%

5 years- Online shop – 40%- Music venue stands – 20%- Retail store – 40%

2. What resources do you require?

- Screen printer and printing inks for screen printer(£5,000)

Dan Boome BA Graphic Design Year 2

- Mac and software (£1,500)

3. How much stock do you need any stock to start your business? (e.g. clothes for a boutique, food for a café, books for a book shop)

- Range of colours and sizes of t-shirt (20 of each size S/M/L of each colour, 6 colours = 360)

- Range of colours and sizes of hooded sweatshirt (20 of each size S/M/L of each colour, 3 colours = 180)

- Promotional prints and materials including stickers, badges etc.- Postage supplies (boxes, wrap, cost of postage)

(£3,000)

3. Prices

1. How have you worked out your prices?

We would be planning a Penetration pricing strategy. Even though our products would be of a high quality, we are entering a very competitive market. We would not want to undercut our competitors, but also need to be affordable for our target customers, so we would not enter into the situation of many designer brands and labels of so high a price as to be unaffordable for a majority market.We will use competitive pricing as a means of not alienating our market, offering bonus gifts and freebies (such as stickers, badges etc) to add extra value to our products. Each will be limited edition as well adding a scarcity value to the products.

2. How do your prices compare with your competitors?

Competitors Short Sleeve T-shirt Hooded Sweatshirts Other

Drop Dead Clothing (based in Sheffield, UK)

Average price £20.00-£25.00

Average price £45.00-£80.00

Varsity Jacket £60.00

Etnies (based in Lake Forrest, California)

Average price £15.00-£18.00

Average price £25.00-£40.00

Shorts £35.00-£45.00

Atticus (based in LA. California)

Average price £9.99-£17.99

Average price £17.99-£24.99

Shirts £17.99-£24.99

Dan Boome BA Graphic Design Year 2

4. Customers

1. What evidence do you have that anyone will buy your product / service? Is it a popular product / service currently provided by lots of others Is your idea completely new? Is there increasing demand for your product / service?

- There will always be a demand for clothing, it being one of the basic physiological needs in Maslow’s Hierarchy of Needs.

- There is a strong demand for high quality clothing in the West Yorkshire area, there being a large number of shopping centres in various cities, including The White Rose Centre in Leeds, and the Centre 27 outlet in Birstall.

- As a popular product, there is a large amount of competition. However, there are very few independent clothing retailers in the West Yorkshire area.

- Our target market listens to a lot of music and attend many music venues and events. Their clothing choice reflects their music choice and there are a large number of music venues in cities such as Leeds and Sheffield.

- Our online store faces a lot of competition as more and more retailers have a web presence. The majority of major retailers however have standard, predictable designs and the more specialist retailers combine a number of different brands. We would have a single site for our product, allowing us to control the advertising and display of our products, separating us from the pack.

- With the economic recession, now more than ever expensive designer clothing is less affordable. Cheaper, high quality alternatives with innovative, interesting designs can fill the commercial gap left by these unaffordable designer labels.

2. Who are these people?

Market Segmentation

Demographics

16-35 year old male/femaleSingle/without childrenDisposable incomeComputer and web literateWorking classIndependent buyers

Geography

Lives in United Kingdom(For shop) Lives in West YorkshireUrban dwellers – live near cityInternational customers - European

Psychology

Music lovers – rock/alternativeInfluencers and buyersIndividualOriginalThoughtfulSense of belongingSelf-sufficientLook for the experienceHigh valuesStrong emotional coreIndependent thinkers

Behavioural

Seek original clothingLike to be IndividualWill respond to personal touchBuy into an experience, not just a productRegular shoppingTrend buyersSeek exclusive productsEnvironmentally aware

Dan Boome BA Graphic Design Year 2

Political

Product licensesBrand/naming rightsTarget demographics strong views on economy/government/war

Economic

Recent recession affecting product pricingAlso affects start-up on new businessInfluence customers into making purchases instead of, not as well as, other brands

Sociocultural

Recent trends for heavy rock/alternative music (known as ‘emo’)Increased demand for new and innovative band/music t-shirts

Technological

Recent purchase of professional standard screen printerFaster and higher output of product

3. Where are they?

As an initially internet-based company, our customers come from all over the UK. As we expand, with a small store opening, the focus will be also on the city the store is in, namely Leeds or Sheffield. With an ever-growing live music scene (there being multiple venues in Leeds and Sheffield, including: The Cockpit Leeds, The O2 Academy Leeds, Leeds Metropolitan University, The Academy/Academy 2 Sheffield, Sheffield Arena, Boardwalk Sheffield, plus many other smaller live venues) the customer base is large and diverse, but focussed in these cities. We already have 2 local bands from the Leeds/Wakefield area playing these venues, with whom we could provide and sell merchandise for.

4. How many are there of them?

- City Of Leeds has a population of approximately 715,000 (2001 census, office national statistics)

- City Of Sheffield has a population of approximately 535,000 (Sheffield City Council estimate)

- Leeds cockpit capacity 500- Leeds Met Uni capacity 1100- O2 Academy Leeds capacity 2700

Dan Boome BA Graphic Design Year 2

5. Why would they buy from you rather than anyone else?

Drop Dead Clothing

Drop Dead Clothing is a Sheffield based clothing retailer founded by Olli Sykes, lead singer of British band Bring Me The Horizon, and is run and managed by his brother Tom and mother Carol. At the moment they are purely web based, but a flagship store is to be opened in London on May 1st 2010.

Strengths

- British based – sense of loyalty- Founded by Bring Me The Horizon

lead singer – strong established fan base

- Contemporary illustrative design- Website is clean and easy to navigate- Large and expanding band/artist

endorsement

Weaknesses

- Designs are mainly in one style – limited range

- Fairly niche – possible alienation of a larger market

Opportunities

- Build strong base within the music scene

- Keep designs attractive for both a scene and a wider market

- Attractive, simple to use website

Etnies

Established in 1986, etnies is the first skateboarder-owned and operated global action sports footwear and apparel company. etnies not only pushed the envelope by creating the first pro model skate shoe, but it pioneered technological advances and changed the face of skateboard footwear forever.

Today etnies’ vision, led by owner and skateboarder Pierre Andre Senizergues, is to remain the leading action sports company committed to creating innovative products that provide the most style, comfort and protection possible.  etnies stays true to its roots by sponsoring a world class team of skateboarding, surfing, snowboarding, moto x and BMX riders and continues its dedication by giving back to each of these communities. (http://etnies.com/history/)

Strengths

- Large range of products- Clean clear website- Endorsed by a number of professional

extreme sports athletes

Weaknesses

- Products unavailable from main site – sold through other retailers

- A number of US only products

Opportunities

- Clean and clear website- Endorsements increase credibility- International selling is a must

Dan Boome BA Graphic Design Year 2

Route One

Route One, specializes in skateboarding, snowboarding, BMX and inline skating and historically has traded out of high street stores. Given Action Sports' youthful demographic and the specialist nature of each sport, it was inevitable Action Sports retailing would migrate online. Route One was one of the first UK retailers to launch online in 1998 and over the past decade the online business has served over 500,000 riders.

In 2010, Route One celebrates "20 Years of Community Service" and will host community projects throughout the year from its stores in Edinburgh, Guildford, Brighton, Cardiff and Southampton

Strengths

- Established store in Leeds City Centre on the main Briggate high street

- Sells a large number of different brands and products

- UK online store simple to use- Good returns policy

Weaknesses

- Store crowded and over complicated- Expensive delivery costs- No chance for designs to speak for

themselves

Opportunities

- Store needs to be an experience- Try to keep delivery costs down- Focus on the customers needs

6. How much will the average customer spend with you?How often will they spend that amount with you?Will your sales fluctuate due to external forces ( e.g. seasons or cultural /

sporting events)

As of Jan 2010, the average total basket price per online transaction in the UK is £131.76. According to AC Neilsen, in Feb 2008, 38% of those surveyed had purchased clothes online in the previous 3 months. This shows the large trend of purchasing goods online, especially clothing. Based on the assumption that we, as a business, can tap into part of this market share through marketing and strong brand identity and loyalty, we predict the average customer will spend approximately £50 per year for the first year, going up to £100 per year in the second and third, and then £150+ per year from then on. This is the equivalent of 2, 4, and 6+ t-shirts per year respectively. The majority of transactions will involve 1-2 items, though with the introduction of accessories and smaller items this will increase.Our products are unaffected by most external factors. However, in the current economic climate public spending is on a downward trend. This is predicted to rise and right itself within the next year or so sales should be unaffected. Our products are mainly personal purchases from independent buyers, and so are unlikely to be affected by seasonal gift buying, but we would prepare for an increase in sales around the Christmas period as a precaution.Another external factor could be the popularity of the bands and artists we associate ourselves with – should they find critical or commercial success that could lead to a rise in sales.

Dan Boome BA Graphic Design Year 2

5. How will you promote your business?

1. How will you advertise your products / services?(Advertising is not compulsory)

Our main point of advertising to start with will be by word of mouth, spread at gigs and through friends and associates. We would also use fliers, freebies (stickers, bands etc) and promotional print material given out after gigs/at music venues. The bands/artists themselves will be a great, free source of advertising, both in wearing and mentioning the brand and the company before, during and after shows.Longer term our advertising will move into such magazines as Kerrang! and NME and on their websites, posters in and around the music venues, whilst continuing the flier/print based promotion.

2. What other marketing methods would be effective for you?

Personal Selling

I will use personal selling to promote the business through merchandise stands at gigs and events. This will help us to get face to face with customer so the can meet us, the designers and owners, and build a relationship with us. It will be supported by freebies and special editions to make it an event in itself.

Pro’s – - Build a relationship with customers- Persuasion- Face to face means more personal- Negotiable – can offer deals etcCon’s – - Time consuming – always have to be there- Lots of travel- Unsociable hours – being at gigs late etc

Public Relations

For us this will involve relationships with established bands and artists, who will promote us and by association build a relationship of trust with their fans. We will gain a level of credibility and confidence from these fans and hopefully a new set of customers.

Pro’s – - Using bands to promote us- Credible links to artists- Builds relationships of trust with fans- Costs very littleCon’s –- Possibly time consuming- More travel

Promotions

Especially as an emerging business, promotions can be a big factor in attracting new customers. We will use a combination of bundle deals (2 t-shirts for £40) and free give-aways (competition wins with purchase, freebies)Dan Boome BA Graphic Design Year 2

Pro’s – - Bundle deals are attractive to shoppers – lifts sales- Can attract new customers who will hopefully then become regular customers- Clears remaining hard to shift stockCon’s – - is not as cost effective – lose profits on items

Internet

Being initially an online presence only, web support for the site would be hugely beneficial. Promo ads could feature on the online versions of the print based publications we would advertise in.

Pro’s – - Interactive – instant access and response- Quick responses builds relationships- Permanently on – 24 hour promotion- Relatively cheapCon’s – - Needs to be backed up – website should be up to scratch- Needs to be constantly updated

6. Total set up costs

1. Legal costs What legal costs might you incur in setting up your business, on protecting your intellectual property, registering with Companies House ( if appropriate) or using a solicitor to look at your contracts?

It costs £37.00 for 5 years to register with the UK Copyright Service (www.copyrightservice.co.uk) with whom we would upload images and designs for copyright. There is no limit to the amount of work that can be uploaded with this service.A trademark application with the Intellectual Property Office will cost £200. This is separate to company registration with Companies House, where incorporation of a Limited Liability Company costs £20.00.Other costs include:

- £800 Accountancy costs- £500 Legal Advice- £200 other

2. Resources

Capital Expenditure

- Screen Printer £5,000- Printing inks £1,000/year- Mac and software £1,500- Printed promotional material £1,000- Web design £300

Total: £8,800

Materials and goods for the first 6 months will be approx. £3,000Dan Boome BA Graphic Design Year 2

Bills and overheads for the first 6 months will be approx. £2,230

3. Marketing

- Advertising £1500- Printed materials £500- Public relations £100- Samples and freebies £300- Photography £200- Web design £300

Total: £2,900

4. How will you finance the business start up?

We will be using £3,000 of personal funds to start up the business, along with a £10,000 HSBC loan with a fixed interest rate (EAR% 25.8) quarterly repayment plan (AIR% 7.9) over 10 years.

7. How will you monitor your progress>

1. Financial control

As a business we will

- Monthly budgets for stock levels and expenditure- Monthly targets for sales- Keep check of receipts, sales and stocks- Use SAGE accountancy software to manage finances and books

We will also employ an accountant at the end of the financial year to confirm our accounting, and to assess the yearly tax payments.

Company performance will be measured firstly using cash flows, balance sheets and profit-loss statements, at which point we will assess our plan and goals, and set and define new ones for the coming year. We will also conduct surveys, short questionnaires and as for feedback from our customers to ascertain how our customers found us, what they liked about our service, and how we could improve, thus giving us feedback on promotion and advertising methods and the effectiveness of our service.

Dan Boome BA Graphic Design Year 2

BIBLIOGRAPHY

http://www.hmrc.gov.uk/nmw/http://www.bauermedia.co.uk/Brands/Kerrang/http://www.rocksound.tv/contacthttp://www.adbrite.com/mb/commerce/purchase_form.php?zone_id=1558785http://www.nme.com/contacthttp://www.completelyretail.co.uk/property/23582/index.html

http://www.statistics.gov.uk/census2001/pop2001/Leeds.asp

http://www.sheffield.gov.uk/your-city-council/sheffield-facts-figures/population-information

http://www.imrg.org/8025741F0065E9B8/%28httpPressReleases%29/19F5C8FDA48261CA802576AA005156B4?OpenDocument

http://docs.google.com/viewer?a=v&q=cache:BEdWiOpqfTcJ:th.nielsen.com/site/documents/GlobalOnlineShoppingReportFeb08.pdf+shopping+habits+online+clothing+uk&hl=en&gl=uk&pid=bl&srcid=ADGEESijPYsQ4UKdQrZ0T85cYflz_ba06uRu-FXIfNm_20WTcPDeghZ3CmD3cuIHQYch2Olt0sEHv0XCCCgEGoBx-7VtykE_ErsbJIUrIW2NCmP_N8YlU2bhlqEXWgdcjwvXrHdSsjxM&sig=AHIEtbT6ai2w1Vn7pFvjspgNQQTZWfceyg

http://www.atticusclothing.com/

http://www.play.com/Clothing/T-Shirts/3-/3636/2-/promo.html

http://store.iheartdropdead.com/section.php/14/1/store

http://etnies.com/

http://www.rollersnakes.co.uk/manufacturers.php?manufacturerid=5

http://www.ipo.gov.uk/tm.htm

http://www.companieshouse.gov.uk/toolsToHelp/ourPrices.shtml

http://www.sage.co.uk/

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789619&type=RESOURCES

Dan Boome BA Graphic Design Year 2