Most streetwear designers start out by funding their own line or getting an investor to believe in their vision. Unless you are a major streetwear brand, your first task is to create a business plan that will express your vision better than words can.
Potential investors will want to see your plan before partnering with you so unless you are pitching the line to family and friends or just have a business idea; the written plan is your strategic road map, which will help you achieve your goals.
Before you get started with your business plan, you must prepare some information beforehand. The plan will contain details about your fashion label, competitors, marketing, distribution, and financial information. You will also need to define what type of brand you are, whether you want to focus on christian clothing, retro t-shirts, urban streetwear shirts or high end products. You will need to know the following:
• Understand your brands’ vision and mission. You must have a business model and once you decide on your vision for your brand, you can take the next steps — always keeping your vision in view.
• Production strategies like outsourcing production can sometimes save you money but could create quality issues. You will have to make a decision before you create your plan.
• Estimate the costs that you’ll incur. Designing, manufacturing, marketing, and distribution require capital. Amend these estimates based on what resources you have available and calculate accordingly.
• Identify your target customer in terms of gender, age, socioeconomic level, and location. Choose a price point based on this analysis and how delivery will affect your price.
• Who are my competitors and why am I different? These questions and more will help you understand your competition and plan an effective marketing strategy.
Now that you know your business, customers, and competitors, you can create a business plan that will show investors that you are serious about being the next top streetwear brand.
Your business plan should address the below sections effectively. It needs to reveal the basic foundation of your business, and in an organised method, show your approach from concept to market.
Executive and company summary – This should appeal to your investors. Use this section to summarize your vision for the brand while revealing your label and its unique qualities.
Products – You need to describe your line in detail. Explain how your clothes will stand out from all the others.
Market analysis – From the data gathered during your research, describe how you’ll bring your line to your target consumers.
Competition – An analysis of your competitors should highlight their strengths and weaknesses. You should take this opportunity to explain how you plan to do better.
Strategy and implementation – Explain your business strategy. Including marketing and operational plans. The end-goal of this section is to reveal your plan for growth.
Management summary – Who else is on your team? Your investors will want to know who your team members are and why they should trust them with their money.
Financial plan – Finally, your budget, projections and balance sheet is a must for any business plan. Your street label might already have some income or even debts. This is a good opportunity to come clean to your potential investors.
Writing a business plan for your streetwear brand will improve your chances of success. It will help you plan and project as well as convince people to back you with money. Some manufacturers and sales representatives may even ask to see your business plan before doing business with you.
This article is written by Visual Humans, a streetwear brand based in the UK. View all our products here.