Trying to write a lingerie business plan? Apparel retailers have struggled to maintain decent margins over the past few years, but the industry is a strong one and there is much optimism that it will return in full. While major players like Victoria's Secret and make some of the best recognized and most broadly purchased lingerie on the market, smaller shops and retail boutiques with unique brands have their own niche. The market need is obvious – some would say timeless – so you've got that in the bag. But why your lingerie business, a banker might ask? What makes your view on the market opportunity something that a bank or investor should inspect closely? You should cover all of the core subjects that any good business plan needs to address, including these:
• What personnel do you think you will need over the life of the business plan?
• How will you market the store itself? The web, print ads, fliers, etc.?
• What sort of brands do you intend to carry?
• Which lingerie makers will you develop relationships with (as suppliers), or do you custom-make everything?
• When can you reach break-even?
• Do you need private investment, or will bank funding (or an LOC) be sufficient?
Most of the financial questions a business plan must answer can be resolved with a standard pro forma (revenues, P&L, balance sheet, etc.), but the market analysis and marketing components require a deep analysis and, often, access to research reports or databases. Look at your target client base in the immediate area and try to determine the major players you'll be up against, along with their price points and margins. If you want some assistance with this analysis or need someone to build the financial model itself (which can be a real challenge!), call MasterPlans today. Our firm has years of experience working with business plans for retail apparel clients and specialty stores like lingerie boutiques. Phone us today at 877-453-2011 to speak with a consultant for a free overview.
