trendy tees final buisness plan
TRANSCRIPT
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Trendy Tees Business Plan
Hit a Low Score with our Golf Couture
Haley Campbell, Founder
Trendy Tees
15 Monteith Drive
Farmington, CT 06032
(555) 555-5555
www.trendytees.biz
mailto:[email protected]:[email protected]://www.trendytees.biz/http://www.trendytees.biz/http://www.trendytees.biz/mailto:[email protected] -
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Table of Contents
1.0 Executive Summary (3)1.1 Introduction
1.2 The Fundamentals
2.0 Company Description (4)
2.1 Mission Statement
2.2 Goals and Objectives
2.3 Business Philosophy
2.4 Target Market
2.5 Industry Description
2.6 Strengths & Core Competencies
2.7 Legal Form of Ownership3.0 Products & Services (7)
3.1 Product Material and Design
3.2 Competitive Advantages
3.3 Competitive Disadvantages
3.4 Pricing
4.0 Marketing Plan (10)
4.1 Intended Market
4.2 Marketing Channels
4.3 Major Competitors
4.4 Niche
4.5 Additional Promotion4.6 Competitive Pricing
4.7 Proposed Location
4.8 Distribution Channels
4.9 External and Internal Analysis
5.0 Operational Plan (18)
5.1 Production
5.2 Location
5.3 Legal Environment
5.4 Personnel
5.5 Inventory
5.6 Suppliers5.7 Management Structure
5.8 Professional Advisory Support
6.0 Startup Expenses and Capitalization (25)
6.1 Start-up Costs
6.2 Break Even Analysis
6.3 Balance Sheet
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Executive Summary
Introduction 1.1
Trendy Tees is a retail online business for young women to have the ability to design their
own golf clothing. This business is crucial for this target market because there is no business like
ours. There is not a lot of choice for young women golfers when looking for clothing. If young
women are able to design the golf clothing that fits their personality, then they will feel confident
on the course. Our products will help young golfers to become better players because once they
feel that they look like the ultimate golfer they will play like the ultimate golfer. Our goal is to
increase the number of young female golfers because golf has been dominated by men. With our
clothing line, we can spread awareness that golfing is a great sport for both men and women. We
would like for an investor to provide Trendy Tees with $200,000 at 33.33% equity.
The Fundamentals 1.2
Trendy Tees will be owned by Haley Campbell the original founder of Trendy Tees LLC.
Our location is in San Diego, California where we have an office and warehouse for inventory.
Our products will be manufactured in Chula Vista, California. Our design team will be educated
on all new athletic and golf fashions in order to provide our customers with the trendiest clothing
possible. Customers will be able to choose from the fashion boards own designs or they can
create their own clothing. Through our easy-to-use website customers can design all aspects of
the clothing item. They can even personalize it which is great for golf teams. Girls will be able to
design shirts, sweaters, jackets, skirts, shorts, pants, and hats. Customers are also welcome to call
our number at (555) 555-5555 and we can help them with any questions they may have.
Trendy Tees will be a successful business because there is a need for our product. As the
number of young women golfers increases, the clothing for these women have not beenavailable. With Trendy Tees women will be able to design their golf clothing the way they
want it and will feel great on the course. Women will be able to Hit a low score with our Golf
Couture.
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Company Description
Mission Statement 2.1
Our vision is to provide women golfers with the opportunity to create their own apparel and
accessories in order to feel more comfortable and confident on the course.
Goals and Objectives 2.2
Company Goals: Trendy Tees strives to create a way for young women to design their own
clothing that they find fashionable, comfortable, and form-fitting. We hope this will ultimately
give girls confidence to play their best golf while providing them with performance clothing. In
addition, we want Trendy Tees to become a leader in the golf clothing industry by obtaining at
least a 25% market share of the girls golf clothing industry within 5 years.
Community Goals: We hope to increase interest and the number of girls playing golf by
sponsoring golf events, providing reduced costs to new golfers, and holding golf fairs. Trendy
Tees believes that golf is a life sport that instills values of determination, discipline, and
sportsmanship in a fun environment.
Philanthropic Goals:Trendy Tees is dedicated to giving back to the community by pledging
5% of all profits to charities such as the Wadsworth Golf Charities and the Amputee Golf
Charities. These non-profits pledge to increase interest in golf especially in younger kids
teaching them important life lessons to improve their game and character.
Business Philosophy 2.3
At Trendy Tees we strongly believe in the success and confidence of young female golfers.
We want to provide a way for women to enhance their golf game while looking stylish and
feeling comfortable on the course. We envision a world where many people can enjoy the game
of golf.
Target Market2.4
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Trendy Tees will be initially marketed just for women because they
are underrepresented in the golf clothing industry. Though our target
market is women, our company will focus on a specific age group.
Trendy Tees is marketed to young females who are interested in
golfing or are already players in an age range from 10-30. According
to Nancy Berkley, President of Berkley Golf Consulting junior girls
(ages 16-17) are holding steady and continue to be the sweet spot in
the market. Women constitute 21% of the US golfing population and
32% are new golfers. (http://nancyberkley.com/771810.html)
The ideal demographics include middle to upper class women with a median household incomeof $95,000 according to Loop Ventures LLC, who are the creators of virtual scorecards. In
addition, 90% of these golfers use the internet regularly and 80% of them have taken a domestic
flight or business trip in the past year. Of those 80% of travelers, 80% of them plan on playing
golf at least once on their trip.(http://www.myloopcard.com/news/item.phtml?id=49) This is
ideal for Trendy Tees because our main sales will be online geared toward this target market.
Industry Description 2.5
Trendy Tees is in the golf fashion industry. According to NancyBerkley, 21% of golfers are women. However, recently the number of
young female golfers is starting to expand. Unfortunately, the womens
golf clothing industry is not matching the growth in girls golf. We have
found a niche in the market focusing on womens golfclothes and
specifically customizable womens golf clothes. Womens golf clothes are
currently a relatively small industry that does not receive as much
attention as mens golf clothes.
Strengths & Core Competencies 2.6
Trendy Tees was built out of need and a desire to change the culture of
golf clothing. Our founder, Haley Campbell, was a young golfer who
http://nancyberkley.com/771810.htmlhttp://nancyberkley.com/771810.htmlhttp://nancyberkley.com/771810.htmlhttp://www.myloopcard.com/news/item.phtml?id=49http://www.myloopcard.com/news/item.phtml?id=49http://www.myloopcard.com/news/item.phtml?id=49http://www.myloopcard.com/news/item.phtml?id=49http://nancyberkley.com/771810.html -
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struggled finding adequate golf clothing to wear. Girls on her golf team struggled to find form-
fitting clothes that combined performance and style.
Trendy Tees will succeed because it is human-centered design. This company fits the needs of
a young female golfer because with Trendy Tees customization is able to meet the customers
specific views. Our strength is that we provide customers with the highest quality clothing that is
entirely customizable from material type to word engravings. According to the U.S. Department
of Commerce, not only is there an increase in demand for customizable clothing, the estimate of
U.S. retail e-commerce sales has increased 4.4% to $59.5 billion in the third quarter of 2012.
(http://www.census.gov/retail/mrts/.pdf) The clothing is made in the U.S. with care and pride.
Trendy Tees stands out from other larger athletic-wears because above all we provide quality
clothing.
Legal form of Ownership 2.7
Trendy Tees will start as a Limited Liability Corporation (LLC) because it is generally easier
to start up than a traditional incorporation. An LLC also gives us a great amount of flexibility
with the way we want to be taxed. LLCs have less requirements for compliance and less
necessary paperwork which makes it easier to keep in good legal standing. LLCs also separates
personal assets and liabilities from company assets and liabilities. An LLC seems to be the best
suitable for Trendy Tees as a new business.
http://www.census.gov/retail/mrts/.pdfhttp://www.census.gov/retail/mrts/.pdfhttp://www.census.gov/retail/mrts/.pdfhttp://www.census.gov/retail/mrts/.pdf -
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Products and Services
Product Material and Design 3.1
There are many items of clothing and accessories a girl can wear on the golf course. Our
company customizes shirts, sweaters, jackets, skirts, shorts, pants, and hats. Depending on the
item, the customer has a list of materials to choose from. For the clothing items customers can
choose between cotton, polyester, or elastane (spandex). There is also a cashmere option for
sweaters. Trendy Tees is looking to make shoes in the future, but as a startup business this is
not necessary for our product line.
Cotton Polyester Elastane (spandex) Cashmere
The customer also has the option to design the appearance of the item. The following are some of
the many options that can be changed for each type of clothing.
Shirts- short-sleeve or long, collar or no collar, buttons or no buttons, type of neckline, and color
Sweaters- neckline, color, and pattern
Jacket- neckline, half-zipper or full-zipper, pullover, collar or no collar, lace, logo, and
personalization
Hat- color and personalization
Here is an example of how the customer goes about customizing a shirt.
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Competitive Advantages 3.2
Trendy Tees custom-made clothing and accessories are high-quality because clothing that isdesigned by the customer will fit better and last longer than any mass-produced golf attire.
Trendy Tees follows human-centereddesign because customers can create the product they
desire. There is a lack of female golf clothing available to golfers and Trendy Tees will attend
to their needs. According to the National Golf Foundation, between the years 2010 to 2020 they
expect the number of golfers to grow by 3 million. (http://cgmaterials.com/pdf/GolfPartic.pdf)
While the number of golfers increases, the market for clothing has not. Young women will no
longer have the hassle of going to the store and not finding a golf outfit that fits them the way
they would like. We will attend to the customers needs for a certain style, fit, and ideal comfort
to better enhance their performance.
Competitive Disadvantage 3.3
At first like most small businesses, Trendy Tees will start out small with minimal management
and a small number of employees. Trendy Tees will be less experienced compared to other
golf retail companies.
Another disadvantage that Trendy Tees has is that while there is not much competition for
girls golf apparel, it is a small target market. However, this may turn into an advantage for
Trendy Tees because it allows us to be more effective and quickly solves the needs of the
market.
Pricing 3.4
Trendy Tees customizable clothing tends to vary depending on the overall design the
customer chooses. Polos will range from $60 to $80. Sweaters can range from $80 to $100
because materials affect the price for example, cashmere would cost more than cotton. Jackets
will range from $80 to $100 as well. Skirts and shorts will range from $70 to $80 depending on
the material and overall design. Pants will range from $90 to $110 depending on material and
design as well. Shoes will vary from $100 to $200 depending on whether the shoe is already
made by Trendy Tees or whether the customer custom designed it. The amount of color and
http://cgmaterials.com/pdf/GolfPartic.pdfhttp://cgmaterials.com/pdf/GolfPartic.pdfhttp://cgmaterials.com/pdf/GolfPartic.pdfhttp://cgmaterials.com/pdf/GolfPartic.pdf -
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personalization added to the shoes add to the large price gap because the more that is added, the
more expensive. Finally, all hats will range from $15 to $25 depending on personalization.
Shipping and handling will also be taken into account because the customer can only purchase
items online. Products that are customized may not be returnable but pre-designed Trendy
Tees clothing must be shipped back to ourlocation for a full refund.
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Marketing Plan
Intended Market 4.1
Trendy Tees has identified its intended market as young females who are interested in or are
currently playing golf and would benefit from customizable golf apparel that is comfortable,
fitting, and fashionable. The number of young female golfers is increasing and Trendy Tees
wants to capitalize and help girls who need adequate golf apparel. Our company will specifically
market to young females between the ages of 9 and 32.The younger girls will most likely not
have jobs and would be dependent on their guardians for financial support when buyingproducts, especially those sold online. We will be targeting consumers in the upper-middle
income range. Additionally, we plan to target to the older range in our target market that have
jobs and are willing to pay money for custom-designed clothing. Trendy Tees would like to
expand and market to female players on the LPGA tour and have the ability to sponsor female
golfers in the near future.
Marketing Channels 4.2
As a new business, marketing is a large part of our goals for the first year. We will use online
and print advertisements. We plan to focus our efforts and budget on golf magazines, golf expos,
trade shows, and online advertisements. Young women golfers attracted to golf magazines like
Golf Digest, Golf Magazine, and Golf World. Other forms of advertisement we plan to utilize are
social media networks like Facebook, Twitter, LinkedIn, and Instagram. We plan to feature our
products on Pinterest boards and the Wanelo feed. One effective way of advertisement that we
will utilize as the decline of commercial continues as a result of TiVo and DVR, are short 15-20
minute films that provide entertainment for our viewers as well as advertising our products,increasing brand awareness, and created a strong reputation among our consumers. These videos
would be featured on YouTube. According to CyberGolf, among those who are members of at
least one online community, 45% are members of Facebook, 34% use LinkedIn, 22% are on
MySpace and 15% use YouTube.
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(http://www.cybergolf.com/golf_news/womens_golf_market_study_unveiled)
Major Competitors 4.3
As an online womens golf clothing store, Trendy Tees has several major competitors. One
competitor would be Golfers Warehouse which is ranked #1 online superstore. However, we
differentiate ourselves from them because they do not make custom-clothing and they do not
specialize just for women. Another competitor would be TaylorMade. This company owned by
Adidas is a well-known company that sponsors many women on tour. Their clothing is more
expensive and does not have much variety in comparison to Trendy Tees where there are
many options. We have indirect competition with websites such as Amazon orEBay due to the
fact that these websites sell a variety of womens golf clothing that is reasonably priced.
However, these websites do not specialize in womens golf wear. We focus solely on womens
golf clothing and our company will provide the best products available. Other competitors
include Nike, and Polo as well.
Niche 4.4
As the number of young female golfers increases, the clothing for them has not. In 1998 a study
was done that showed women constitute 21 % of the U.S. golfing population or 5.2 million golfers.
Additionally, they are 32 % of all beginners. Though the amount of women golfers has increased
over time, golf clothing companies tend to still focus on men since they are dominant in this
sport. The womens clothing available tends to focus on a market for older women and not
juniors or young women. If companies do sell for young females there is a limited choice andusually no reputability that comes with the brand. . Trendy Tees will be able to fill this niche
by allowing young female players to design their own clothing. Trendy Tees expects to grow
progressively over the years due to the high demand for golf clothing for younger female golfers.
http://www.cybergolf.com/golf_news/womens_golf_market_study_unveiledhttp://www.cybergolf.com/golf_news/womens_golf_market_study_unveiledhttp://www.cybergolf.com/golf_news/womens_golf_market_study_unveiledhttp://www.cybergolf.com/golf_news/womens_golf_market_study_unveiled -
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We expect high success rates, brand usage, and brand awareness rates in the future.
http://www.csmonitor.com/1998/0409/040998.feat.feat.1.html
Additional Promotion 4.5
We want to be known for not only our products, but for our philanthropic nature. We want
people to see our company as giving and caring about the community around us. The best
promotional idea to promote a caring image would be to host giveaways at golf tournaments.
Ways to achieve this are:
Hand out brochures at Girl Golf Fairs
Giveaways, incentives, and contests during golf tournaments. Giving a percentage off of purchases when the customer donates to a golf charity organization
Local newspaper ads
Direct mail
Coupons
We also plan to advertise through Golf network & ESPN and golf, sports, and fashion magazines.
We are also researching the pursuit of sponsorships of pro golfers.
Competitive Pricing 4.6Trendy Tees TaylorMade Polo Nike
Products Shirts, polos, hats,shorts, skirts,pants,
Shirts, hats,visors, gloves,golf bags
Shirts, polos, hats,shorts, skirts, pants
Shirts,polos, hats, shorts,pants, sweaters
Special Features Customizable sports fabric-breathable,weather resistant
Price $15.00-$110.00 $20.00-$400.00 $30.00-$395.00 $20.00-$300.00
Quality 5 4 3 3Reliability 3 5 5 5
Company
Reputation with
Golf Apparel
2 5 5 4
http://www.csmonitor.com/1998/0409/040998.feat.feat.1.htmlhttp://www.csmonitor.com/1998/0409/040998.feat.feat.1.htmlhttp://www.csmonitor.com/1998/0409/040998.feat.feat.1.html -
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Location Online, GolfBoutiques
Online, MajorRetailers
Online, own retailstores, other retailers
Online, own retailstores, otherretailers
Appearance 5 5 5 5
Advertising Print, Online,Social Media
Print, Online,Social Media
Print, Online,Commercial, FashionShow, Social Media
Print, Online,Commercial,Social Media
Brand Awareness 1 5 5 5
We plan to set a price range that is competitive with the lower spectrum of our main competitors.
We intend to make our company stand out by setting high quality standards while still
maintaining an average price range. In comparison to our competition, TaylorMade, Polo, and
Nike, our polos which range from $40.00-$60.00 depending on the level of customization, are on
average $20.00 less expensive than the competition. Similarly, our pants range from $60.00-
$70.00 while the competition has a price range of $60.00-$110.00. On average, our lower prices
draw our cautious target market; younger women golfers. Depending on the consumer, price may
not be a big factor. However, according to World Golf, the average price range that has the most
success among women golfers is $0.00-$50.00. This price range comprises 68.6% of the sales in
the women golf apparel industry. Younger women golfers who are purchasing their own apparel
are more cautious about money. Pricing our brand in the lower range of the average price ranges
makes it appealing to both cautious consumers and upper-middle class consumers who may look
for quality first as opposed to price. Factors that also distinguish us, Trendy Tees, from the
competition are quality and appearance.
One benefit of having prices in the lower range makes it easier for people to choose Trendy
Tees as their leading provider of womens golf apparel. An article that appeared on Travel
Golf states that many people are discouraged from trying golf or regularly playing golf beacause
of the high costs.
http://www.worldgolf.com/newswire/browse/62476-Golf-Datatech-Unveils-January-Golf-Apparel-Market-Reports
http://www.travelgolf.com/departments/clubhouse/golfs-too-damn-expensive-1324.htm
http://www.worldgolf.com/newswire/browse/62476-Golf-Datatech-Unveils-January-Golf-Apparel-Market-Reportshttp://www.worldgolf.com/newswire/browse/62476-Golf-Datatech-Unveils-January-Golf-Apparel-Market-Reportshttp://www.worldgolf.com/newswire/browse/62476-Golf-Datatech-Unveils-January-Golf-Apparel-Market-Reportshttp://www.travelgolf.com/departments/clubhouse/golfs-too-damn-expensive-1324.htmhttp://www.travelgolf.com/departments/clubhouse/golfs-too-damn-expensive-1324.htmhttp://www.travelgolf.com/departments/clubhouse/golfs-too-damn-expensive-1324.htmhttp://www.worldgolf.com/newswire/browse/62476-Golf-Datatech-Unveils-January-Golf-Apparel-Market-Reportshttp://www.worldgolf.com/newswire/browse/62476-Golf-Datatech-Unveils-January-Golf-Apparel-Market-Reports -
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Proposed Location 4.7
Trendy Tees is planning to base our headquarters out of San Diego, California. Trendy Tees
does not currently have plans for retail locations. However, this will be compensated through the
sales generated online and in small boutiques and golf stores around the California area at the
start. Manufacturing will be done in Chula Vista, California. This is a short distance from
inventory and headquarters.
Distribution Channels 4.8
Here is an image of our website. We sell
products through our website. We can target
most parts of the United States because
customers can access our online stores to
promote to places that have golf available to
them. They will be shipped directly to our
customers homes through mail order. Trendy
Tees may use companies such as UPS or FedEx to deliver products throughout different
regions in the country. Products will also be available through a catalog and non-customizable
pre-ordered products will be sold at small golf boutiques near local golf courses. We will have
two public relations representatives who will attend golf fairs and sell our products.
The following website contains possible golf boutiques in the California area:
http://www.golflink.com/golf-stores/state.aspx?state=CA
We are planning on contracting with 4 boutiques to begin selling Trendy Tees apparel.
Examples of these would be:
Golfsmith Golf Center
72700 Dinah Shore Dr Ste 200
Palm Desert, CA 92211-0810
Tel: (760) 328-5010
http://www.golflink.com/golf-stores/state.aspx?state=CAhttp://www.golflink.com/golf-stores/state.aspx?state=CAhttp://www.golflink.com/golf-stores/golf-shop.aspx?store=2315&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=2315&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=2315&title=http://www.golflink.com/golf-stores/state.aspx?state=CA -
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Golf Etc. Torrey Highlands
7835 Highland Village Pl Ste D104San Diego, CA 92129-5185
Tel: (858) 538-9700
No Bogey Golf Products
1935 Friendship Dr
El Cajon, CA 92020-1136
Tel: (888) 662-6439
PGA Tour Shop Sacramento
6850 Airport Blvd Terminal A
Sacramento, CA 95837
Tel: (800) 333-7200
The towns and cities that these golf shops are located in are areas with high golf shop
concentrations.
External and Internal Analysis 3.9
External-PEST Analysis
Political Economic
Certain dyes are more expensive
than others because of theiravailability as a resource. Local governments have different
sales taxes. Boys have dominated this sport
and lately there has been a rise inwomen participating in this sport.
Girls would tend to buy girls golf
clothes during the golf season. Lessprofit during the winter. By selling in aplace where golf is year round we canlimit the damage of colder climate
Recession would decrease in thepurchase of luxury goods.
An increase in the unemployment rate
http://www.golflink.com/golf-stores/golf-shop.aspx?store=576&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=576&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=2481&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=2481&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=1840&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=1840&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=1840&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=2481&title=http://www.golflink.com/golf-stores/golf-shop.aspx?store=576&title= -
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This trend calls for a need for moregirls golf clothes.
would most likely cause less people tobuy this product because golf can bean expensive sport.
More girls will buy these clothesduring economic growth because theywill have consumer confidence.
Social Technological
Those that play golf tend to bewealthy, but these clothes areaffordable and will allow more girlsto get out on the range or course
because they will be able to affordit and feel confident.
Will not waste girls time trying tofind clothes, can just design online.
Can use a famous woman golferon the LPGA as a spokesperson
When girls watch tournaments onTV they may be inspired by thewomens fashionable golf clothing
Competition between other golf attirecompanies with websites.
Interactive website or app that allowsa girl to design her own golf attire.
Clothing can be distributed to localgolf stores or warehouses.
Allows large groups of people or golfteams to buy the same product at alower price.
Product will be available throughoutthe world, not just in the U.S. becauseit is accessible online.
Internal/External- SWOT Analysis
Strengths Weaknesses
Internet use or application onsmartphone.
Use LPGA athletes for advertisement
Variety of colors, styles, and sizes for
clothing. Clothing is high-quality and
fashionable. Girls do not have to go out shopping
and waste time not being able to findclothing that suits their needs.
Confined to girl golfers only. Mainly ecommerce, no stores
available. Girls may not know their size when
ordering. Confined to teens and young
adults, no clothes for younger girlsand older women.
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Opportunities Threats
Send clothing in recyclable packaging If teams want to buy the same
clothing they can get a discount. Try to appeal to LPGA golfers and
they may want to customize their owngolf clothes.
Golf clothes are a luxury and if theeconomy is bad, people many notwant to buy this product.
There are other golf clothes forwomen that can be possiblecompetitors.
During the winter, not many peoplegolf which can affect business.
Analyzing our strengths, weaknesses, opportunities, and threats we can create aspirations for the
future that can strengthen our business. The use of technology and online/mobile distribution will
put us in an advantageous level in comparison to competitors that have not yet moved towards
the new technological trends. This is one of the most important factors that can influence the
success of our future business. Another important factor that can affect our business positively is
the possibility of marketing using a LPGA athlete. The advantage of sponsoring a woman golf
player is the ability to get a more positive and influential view of our brand and women in the
golf world overall.
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Operational Plan
Once Trendy Tees receives an order online, immediately the information is sent to the
manufacturer to produce the items needed. This is then sent to our location in Farmington where
it will be shipped.
Production 5.1Below are the steps of producing Trendy Tees products.
All possible designs that a customer may create are sketched and given to manufacture to
create prototypes to be sure the clothing is designed the way intended.
Depending on the item 10 to 70 items will be manufactured each month. At the end of
each month, we will check the inventory which will factor into how many items will be
produced the next month.
Trendy Tees plans to work with Activewear Inc. They have more than 20 years of
experience offering cut and sew services in the United States. They specialize with
stretch materials such as spandex, which is a popular material for active wear. They are
located in Chula Vista, CA.
Every three months Trendy Tees fashion board will design new featured items. The
manufacture must follow the same rules and inventory control as the other customclothing.
Location 5.2Trendy Tees will have some clothing available in different boutiques but sale of our items will
be mainly online. Trendy Tees will have an office space combined with a warehouse facility
for our design team to meet and for storage.
This location is combined with office space and warehouse
space, with more office space available. There is enough
space to have a comfortable office for the employees, and
is in a good location. The total amount of space is 4,260
SF , with 60% (2,556 SF) office space and 40% (1,704 SF)
warehouse space. It has one grade level loading door, so it
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makes it easy to transport inventory in and out of this location.
Brown Deer Park
9155 Brown Deer Rd., San Diego, CA 92121
The rent is $3791.4 monthly.
Legal Environment 5.3
Trendy Tees will have the following.
Tax ID number
An assumed business name certificate Resale ID number for products
Federal and State EIN for employees
There are no companies that have pre-existing patents, trademarks, or copyrights that are in
interference with Trendy Tees.
Personnel 5.4
Trendy Tees will start out with 14 employees who can all work together to obtain a profitable
and quality business. We will find people to employee through job listing websites, the
newspaper, or social connections.
Web Design and
Technical Team
This team will be responsible for managing the software and
website. Trendy Tees is an online business and an efficient
function of the website will be key to the business. The team
will be needed year round to update the new products.
Project Manager The project manager will look over the process of the team.Every two or three weeks he or she will meet with the CEO todiscuss the outlook of the team. Qualifications for the projectmanager include a degree in management, knowledge ofsoftware and web design, and high skills in communication.Salary- $84,000
Web Designer The web designer is responsible for creating and maintaining thewebsite. The developer will design, test, and developapplications and websites to enhance the companys goal.Salary- $59,894 per year
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Software Engineer The software engineer is responsible for creating codes for thesoftware. They will work with the designer and the team tomaintain the system to remove any glitch or problem from the
website. Salary- $64,542
Design Team The design team includes two fashion designers whowill be responsible for designing the golf apparel for
Trendy Tees. The project manager will be
responsible for communicating the designs with the
CEO.
Project Manager The project manager will look over the process of the team.Every two or three weeks he or she will meet with the CEOto discuss the outlook of the team. Qualifications for the
project manager include a degree in management,knowledge of fashion and golf apparel, and high skills incommunication. Salary- $84,000
Fashion Designer (2) The fashion designers will be responsible for sensible andstylish designs for the golf apparel for women. The fashiondesigners will communicate with each other upon creatingthe trendiest design. Creativity is highly needed for thisposition. Salary- $64,530 per year
Marketing Team The marketing team will be responsible foradvertisement and sales of Trendy Tees. They will
also be responsible for selling the product through
forms of marketing.Project Manager The project manager will look over the process of the
team. Every two weeks or three weeks he or she willmeet with the CEO to discuss the outlook of the team.Qualifications for the project manager include a degreein management, knowledge of marketing and sales, andhigh skills in communication. Salary- $84,000
Public Relations Officer The public relations officer will use all forms of mediaand communication to build, maintain and manage thereputation of their clients. They communicate keymessages, often using third party endorsements, todefined target audiences in order to establish and
maintain goodwill and understanding between anorganization and its public. Salary- $54,000
Sales Manager The responsibility of a sales manager is to manage thesales of the company. They will set goals and salesterritories for the company. Also, the sales managerwill advise on ways to improve sales performance andachieve goals. Salary- $60,000
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Finance Team The finance team must be able to manage thecosts and revenues of the company. They would
also be aware of the companys financial
stability and find ways to make it better.
Finance Manager (Project
Manager)
A financial manager is in charge of managing
financial reports, accounting, investmentportfolios, and all sorts of financial analysis for agroup. Their job also includes monitoring of thecash flow for an organization, preparation ofbalance sheets, income statements and budgets,overseeing of accounting and auditing, andconforming to the governments regularityrequirements. The finance manager will beresponsible for communication with CEO. Theywill be the project manager for the Finance Team.Salary- $107,160
Accountant An accountant is responsible for a broad range of
accounting, auditing and tax services forcorporations, nonprofits, governments orindividuals. Duties may include preparingindividual income tax returns, advising companieson tax implications for certain business decisionsor auditing financial statements. Must have a highskill in mathematics. Salary- $62,850
Advertisement Designer The advertisement designer is responsible for planninga new project or ad campaign. They must create eye-catching advertisements or a memorable theme.
Advertising designers edit and manipulate adpresentation according to client specifications. Theymust be able to communicate with management orclients in order to determine the appropriate directionof a project. Salary- $48,324
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Inventory 5.5
Trendy Tees plans to start out small so inventory will be minimal at first. But once the number
of customers starts to expand we will increase our inventory size. First we will start by having
the manufacture produce about $10,000 worth of inventory each month. Then depending on if
theres a surplus or not we will re-evaluate the amount of inventory for the next month.
Suppliers 5.6
Our manufacture is located in Chula Vista, CA. They are called ActiveWear Inc. and they
produce active wear for males and females. Their address is 680 Marsat Court, Suite B, Chula
Vista, CA 91911.
Administration
Team
The administration team is responsible for being in
charge of the company. The team will include the CEOand an administrative assistant. The administrative team
will hold the two or three weekly meetings with the other
team.
CEO/Top Executive The CEO will be responsible of the company and willoverlook the employees as well as the teams. The CEO willhold meetings to discuss the progress of the teams. Inaddition, the CEO should be educated in marketing, finance,advertising, and design. Salary- $183,930
Administrative Assistant The responsibility of an administrative assistant in an officeis very important because they multi task and perform all themain duties in an office. The main purpose of administrative
assistant in any office or company is to clerical support likeanswering phone calls, replying to the clients emails,scheduling meetings and many more. Salary- $33,000
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Management and Organization
Trendy Tees will have a president/owner who will oversee the functions of the company and
make sure everything is running smoothly. The other 14 employees will report to this president
on a weekly basis.
Management Structure 5.7
The production manager is in charge of the design team to make sure they are on task and are
thinking of new products for the manufacture. The top executive is similar to the president and
makes sure all of the teams are on task. This employee must create policies and tasks that the
other employees must follow. The marketing team is not in charge of other teams but must be
able to work with the teams in order to plan a suitable marketing plan.
Professional Advisory Support 5.8
Trendy Tees will have the following professional help in order to stay successful and updated
as a small business.
President/OwnerProject
Manager
Finance
Design
Web Design
Marketing
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Attorney
Insurance Agent
Banker
Consultant
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Startup Expenses and Capitalization
Since Trendy Tees is a retail business it will cost a large amount to start the business and pay
for inventory. Also, health insurance for employees can be very expensive and Trendy Tees
will give employees benefits. It will cost a good amount to buy computers and re-model the
space for where employees will be working and we will need structures to put inventory on to
organize. Rent per month is also very expensive especially the cost up-front. Trendy Tees also
needs to pay for business licenses, legalities, and advertisement as well. We talked to a small
business owner, Bill Campbell and asked him his thoughts on certain costs too. Here are the
start-up costs and monthly expenses.
6.1 Start-Up Costs
1. Purchase price or down payment if buying a business $0.00
2. Office furniture $5,000.00
3. Computer hardware and software $10,000.00
4. Setup, installation and consulting fees $10,000.00
5. Business cards and stationery $500.00
6. Decorating and remodeling $500.00
7. Fixtures, counters, equipment & Installation $1,000.00
8. Starting inventory, raw materials, tools, etc. $10,000.00
9. Deposits with public utilities $100.00
10. Legal and other professional fees $5,000.00
11. Business licenses and permits $500.00
12. Advertising and promotion for opening $20,000.00
13. Signage $800.00
14. Rent & security deposit (often equals 3 months rent) $11,373.00
15. Operating Cash $5,000.00
16. Other $1,000.00
__________
Subtotal $80,773.00
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Monthly Expenses
17. Salary of owner-manager (amount you need to pay yourself) $3,000.00
18. All other salaries, wages, & commissions $50,000.0019. Payroll taxes or self-employment tax $400.00
20. Rent $3791.00
21. Equipment lease payments $300.00
22. Advertising (print, broadcast and Internet) $500.00
23. Postage & shipping costs $1000.00
24. Supplies (inks, toners, labels, paper goods, etc.) $500.00
25. Telephone $200.00
26. Utilities $500.00
27. Internet connection $100.0028. Website hosting and maintenance $200.00
29. General business insurance $50.00
30. Business vehicle insurance $500.00
31. Interest & principal on loans & credit cards (36 months) $3053.53
32. Inventory, raw materials, parts $1,000.00
33. Legal and other professional fees $300.00
34. Miscellaneous $200.00
__________
Subtotal $65,594.53
Calculate total start-up funds
Estimate the number of months needed to find customers andget established
Monthly expense for 3 months $196,783.59
One time start-up expense $80,773
__________
Total start-up costs $277,556.59
Loan amount
$100,000
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Monthly payments
3053.53
Total interest
9927.23
6.2 Break Even Analysis
Selling pricePolo 60-80 70
Sweater 80-100 90Jacket 80-100 90Skirts and shorts 70-80 75Pants 90-110 100Shoes 100-200 150Hats 15-25 20
Average 85
Cost to make
Polo 21Sweater 27Jacket 27Skirts/shorts 22.5Pants 30Shoes 45Hats 6
Average 25.5
Formula
0 = ((1 time start-up costs)+(Monthly Expenses(months)))-((Mark Up)(Months))
1 time start up = $9,0775
Monthly expenses = $6,5594.53
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Months = 12
Mark up = 85-25.5 = 59.5
1 time start-up costs = 90775/59.5 = 1525.63 units sold
Monthly Expenses = 65594.53/ 59.9 = 1102.43
1 time start up + Monthly Expenses = 12 months (Units per month)
Units per month = 1230 units
Units total in one year to break even 14,760
Revenue first year-$878220
Revenue second year-$966042
Revenue third year-$1159250
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Letter to Investor
Dear Potential Investor,
Thank you for taking the time to review the business plan for Trendy Tees, LLC. We
appreciate your time and consideration for reviewing the outline of our small business. We hope
that we have provided you with information and data about Trendy Tees. Feel free to contact
us at (555) 555-5555 or visit our website.
If you are interested in taking part in our business as an investor we welcome you. Trendy
Tees has exceptional employees that are willing to make this business a part of their life. We
hope you enjoy golf retail and are interested in increasing the number of young women golfers.
As an investor, you will be helping thousands of women who use our products to make them feel
confident on the golf course. Trendy Tees allows young female golfers to buy comfortable
clothes they designed personally that they can wear on the course.
Please contact us by e-mail or phone and we will be willing to set-up an appointment with you at
our location in San Diego, CA.
After reviewing our business plan we hope you have confidence in our business and its ability to
expand. There is a need for young womens golf clothing and Trendy Tees is willing to fill
that gap but we need your help!
Thank you for your time and consideration for investing in Trendy Tees LLC.
Sincerely,
Haley Campbell
President of