This is a sample business plan for a fashion boutique business. The sample business name used is X-class Boutique.
The business operates a fashion boutique store and utilizes digital marketing to grow its sales.
The business plan outline used is a simple business plan that follows a standard business summary template used by most business schools and is usable for applying for loans, grants, and equity funding.
You can use this business plan as a guide to develop a business plan for your fashion boutique business.
X-class Boutique is a fashion store based in Lagos, Nigeria. We offer high-quality wear ranging from t-shirts, dresses, caps, hats, denim trousers, corporate wears and shoes.
Through our store location, we offer customers high-quality fashion wear at affordable prices.
We also provide bespoke attires for special events. Customers have to make a booking with us, and we deliver through our partner fashion houses.
X-class Boutique operates as a fashion boutique store located in Lagos. We walk in partnership with several fashion houses and fashion distributors to aggregate the best fashion wears for our customers.
We also import special bespoke wears that are demanded by our high-end customers.
We are different from other boutique stores in the way we position our business. We are a fashion boutique that provides additional fashion services to match our customer requests.
Our addon services include fashion procurement, souvenirs, custom sportswear, print wears and branded t-shirts.
Currently, we operate from one location with over 1,000 fashion inventory, and we consolidate our marketing using digital marketing efforts.
We are looking to open more locations to capture more market share and build our fashion brand.
Our products and services are priced differently, depending on what products our customers demand. Our least priced product costs 800 Naira and our most priced product costs 32,000 Naira. Hence, the average cost of our product is 16,000.
Business Model & Profitability
Our business model focuses on sourcing, buying and selling high-quality fashion wear. We also offer on-demand fashion services to our esteemed customers. Our income comes primarily through the sales of fashion products.
Expected annual customers
We expect to have at least 5 customers per day, six times a week and 24 times a month. Each customer is expected to purchase products or services worth at least 5,000 Naira.
Estimated Annual Revenue
5 customers per day spending at least 5,000 Naira each, would give us a monthly income of 600,000 Naira and a yearly income of 7.2 million Naira.
Customer Acquisition Cost
We spend at least 1,000 Naira to acquire one customer via our digital marketing channels, as well as road shows and music advertising.
We expect to make an average profit margin of 40% per product sale after discounting marketing and product cost price.
X-class Boutique was launched by Solomon, who is currently the CEO of the business.
Solomon has a background in business management and printing technology and has been in the fashion business for over 10 years through apprenticeship and starting his own business.
He is supported by 3 employees, 5 printing partners, and over 20 fashion product suppliers.
Each person on this team brings a unique skill set that is required to drive the business forward and fulfill the needs of our customers.
X-class Boutique was launched in 2015 by Solomon after going through 5 years of apprenticeship at a fashion house.
In the first 3 years, the business has developed over 20 industry partnerships, sold more than 30,000 products, and made sales well worth over 10 million Naira.
Having been in operation for over 5 years, there is a need for X-class Boutique to achieve operational efficiency in the way it delivers its products and services to its customers, so as to boost sales and meet the demands of customers.
We have developed a plan to minimize our importation of products in a bid to patronize Nigerian fashion manufacturers and help them gain market visibility and traction.
This we believe would be a win-win situation, as we’ll be able to leverage these partnerships to increase our profit margin.
Market Size/Target Audience
According to Euromonitor, the fashion market in sub-saharan Africa is worth $31 billion. Nigeria enjoys approximately 15% of that market, which is estimated to be valued at $4.7 billion.
However, since 2010, Nigeria’s fashion industry has grown by over 17% due to the exposure of Nigerian fashion brands via runway events such as Lagos Fashion Week and African Fashion Week.
Currently, the fashion industry in Nigeria is valued at around $6 billion and still growing.
Our target customers comprise over 3,000,000 young people, corporate workers, and sports lovers living in Lagos Island, in Lagos State, Nigeria.
We employ a two-way marketing strategy that employs strategically placed physical signages, and digital marketing via several web and social media platforms.
We currently utilize Jiji, Facebook, and Instagram for our digital marketing, which is consolidated via radio advertising.
Our signages are strategically placed within our store location to capture the attention to both going and coming traffic.
Our economic moat focuses on incentivising and leveraging partnerships with local fashion designers, printers, manufacturers, and importers who already have huge inventory at affordable prices. We focus on helping these partners get the product to the right final consumer.
Strengths: Our Strengths lie in our strategic market partnerships, strong business efficiency, and growing trusted clientele.
Weaknesses: Our identified weak areas are limited markets due to physical nature of business, low financial capital, and reliance on manufacturers and importers.
Opportunity: Our identified opportunities include the growing population and fashion market in Lagos Island, strong local brand identity, and the rising adoption of online platforms like Instagram for purchasing fashion products.
Threats: We see threats to our business in different areas such as Customer price perception, competition via web and social networking platforms, and close location proximity to other bigger fashion markets such as Tejuosho and Eko markets.
X-class Boutique is in need of funds to develop our new business system of direct importation and branding of wears. Funds would go into the purchase of inventory and equipment for the aforementioned purposes.
We are also looking to expand to 2 other locations to capture more market share and consolidate our brand positioning.
If these requirements are met, it would help us meet our business & financial goals.
Over the next two years, we hope to grow our customer base from 360 customers to 5,000 customers quarterly, with an average purchase of
N10,000. In the same period, we plan to scale up our digital marketing effort by building a formidable fashion brand shop on Instagram and making sales directly via the same channel.
We don’t just want to be a fashion boutique store in Lagos Island. We are looking to develop an efficient e-commerce model that would help us reach a wider audience beyond Lagos and grow our sales.
Cash Flow Projection
To create a cash flow Projection for your fashion boutique store business plan, click here to use our Simple Financial Template.