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Every business needs a solid business plan, starting a t-shirt business is no exception. A lot of times, many questions and concerns you may have can be answered by having a solid game plan. To save threads I've decided to post a template that would fit for any practical business endeavors that you may have.
Feel free to use it!
Before we get into the actual business plan, here are 10 KEY QUESTIONS you should ask yourself. If you can't answer all of them, don't even bother with the actual business plan, because you're not ready. Write them down, seriously:
What should you do?
In a sentence or a few, describe what your intentions are, what service you are providing or what you intend on selling.
Purpose:
This will help you stay focus of what you are and who you are. This is IMO the most important, since how many times do people whether it be potential customers or friends that ask you "what do you do or what does your business do?"
This allows you have in a sense a canned line that can help you market, so when the time comes you don't blank
Who(niche) and why?
Write down who your ideal customers are; and be realistic, you're not going to target "everyone". So perhaps you are starting an urban clothing line, your ideal niche are teens and young adults.
Next write down WHY your customers are going to buy from you. i.e. You are providing a much more convenient service, better prices than competitors, etc.
Purpose:
Throughout your business ventures, you'll need to refocus who your target niche is. This will help you decide a variety of things such as pricing, type of products and so on. For example when deciding on prices, you're not going to charge teens 50$ dollars for a tshirt(although some are willing to cough out that much nowadays).
Have you researched your markets?
Have you actually spent the time in determining the required costs? Have you actually asked around to see if your potential market exists; or if it will be a flop or be a potential success?
From small businesses to multibillion dollar corporations, EVERYONE spends a large amount of money as well time and effort on this sector. Going into business without doing this is like driving with your eyes closed.
Purpose:
The more research you do in your market, the lower the risks. You'll also be able to identify the potential risks and what the competitor is offering. If you get a chance, getting numbers i.e. prices, what people are willing to pay, etc. That will be even more helpful, and don't just try to get estimates, real numbers are obviously better.
How will you get to your potential customers?
How will you reach your potential clients? Are they going to find out about you from word of mouth, referrals, internet, etc. This is the part where you must connect the dots from your service/product to your customers.
Purpose:
This section is so vital, it should be its own thread, but maybe another day. This is crucial, it doesn't matter how good your service or product is, if you can't get to the customers, you're still empty-handed at the end of the day. This will also allow you to determine additional costs and resources along the ways. i.e. selling on ebay will cost the seller, advertising will also cost you.
Where is your HQ?
You must now decide where you are going to conduct business. Perhaps you like to have a home-business, or perhaps you would rather set up a booth, store, etc. Other factors come into play at this point. If you set up a store at a mall, will your product/service appeal to people there? You must also decide what is more financially possible for yourself. Rent isn't cheap, so if your just starting out, this might not be the ideal thing, unless you have a $$$ and you really don't mind.
How much do you have, and how much do you need(finances)?
The moment of truth, we all wish we had pots of gold, but quite frankly i don't think we are all the fortunate. Finances are probably your most frustrating yet essential factors that will determine the hit or miss of your venture. this one's a long one so pay attention:
(i)Income statements: What will your costs, sales, profits be in the first three years? Note that i said three years since most businesses fail within the first three years, so make sure you have a set of numbers for each year, in other words you should have at least 6 numbers.
you must be realistic at this point, you're not going to make 100,000 dollars in 2 months, and chances are you'll be scavenging for every penny.
(ii)Do you have enough cheddar: You must determine now whether or not you have enough money to even survive the start-up portion of your venture. Usually people will say that you should have at least twice as much cheddar that you expect to spend on starting up; better safe than sorry.
(iii)Cash-flow: Good job on your first few sales! But do they even cover your costs? Are you racking in enough cheddar to even move out of your starting-up stage? More often than not, most businesses barely make enough to stay alive-constantly hanging on that thread, if that's the case, you're business will never truly grow, bye-bye dreams! Surviving the harsh market is only one part, growing is just as important! You must have a solid idea of how much you're going to make, and whether or not those numbers will allow your move on and expand your business.
(iv)Break-even points: Break even point is the point when you start making money, after paying for all costs and resources. You must now have a solid idea of how to price your products so you're not at a deficit(losing money) and that you're on a profit side.
Where am I going to acquire my raw materials and resources?
You must now decide where you are going to get your resources, and trust me, everyone needs to. Where are you getting your shirts from? What if the distributor is gone, do you have a backup? Are the resources going to come on time for me to print all the stuff and deliver it to the client? This should constantly be on your mind. Always have backups btw, you never know what happens.
Can I solo this venture?
I know, I know, we ALL want to be the big man/woman and get all the credit, blah blah blah. But let's be realistic, can you actually achieve your goals by just soloing it? At one point or another, you might need to get a loan from someone, at some point in time you're going to need someone else's expertise or help to get you through the rut. Now is the time to think. I'm in no means saying that you can't achieve your venture by yourself and that you MUST get a partner or a few; but sometimes you have to, there can only be so much one person can do.
Next, say you open a store, are you going to have to hire employees, wages, liabilities, etc. those things will start to kick in.
Do I have a solid team?
Let's face it, if you truly want to grow your business, at some point in time your going to have to get yourself a team of professionals. All major corporations and multinationals like MacDonald's have lines of lawyers and accountants, advisors and so on. If you are truly serious about your business, you will at one point need their expertise.
Purpose:
Let's face it, you can't be an accountant, lawyer, all at the same time, "there is no I in team". You're better off getting professional help. Besides, investors will be more attracted if you have a team that can provide expertise and good advice to drive your venture. Some of you are wondering why you need a lawyer, making a simple tshirt can get you in a whole lotta **** quite frankly. If someone swallows your tag or something, get injured from your packaging, who knows what happens, customers can sue you. I remember reading somewhere that Bic(the pen company) has a line of lawyers ready for anything, apparently every year thousands of adults swallow/choke on pen caps.
What are the risks that are waiting for me?
There will always and always be risks, your job is to determine those risks and if possible prevent them or prepare for them.
In the business world, risk is a common word, it's everywhere, everyday, you just have to live with it. i.e. legal disputes, copyright infringement, employee and staff problems, product won't sell, etc.
Once again, you can assess your risks, but it is of course, better to have a team that can help you with it.
Whew, that was one loooooonnnng post, I hope that helps you guys. I know this isn't the business plan, but as I mentioned earlier, if you can't even answer these questions honestly, you're not ready to make a business plan. You should definitely spend lots of time on these questions, since they'll help you throughout your venture from beginning to end. This will solve you hours of head-scratching and swearing, it will save you money.
Anyhow how you enjoyed it, that was four pages on microsoft word! I'll be posting another thread on how to make a business plan soon, as well as other things that might help you along the way in the near future
Feel free to use it!
Before we get into the actual business plan, here are 10 KEY QUESTIONS you should ask yourself. If you can't answer all of them, don't even bother with the actual business plan, because you're not ready. Write them down, seriously:
What should you do?
In a sentence or a few, describe what your intentions are, what service you are providing or what you intend on selling.
Purpose:
This will help you stay focus of what you are and who you are. This is IMO the most important, since how many times do people whether it be potential customers or friends that ask you "what do you do or what does your business do?"
This allows you have in a sense a canned line that can help you market, so when the time comes you don't blank
Who(niche) and why?
Write down who your ideal customers are; and be realistic, you're not going to target "everyone". So perhaps you are starting an urban clothing line, your ideal niche are teens and young adults.
Next write down WHY your customers are going to buy from you. i.e. You are providing a much more convenient service, better prices than competitors, etc.
Purpose:
Throughout your business ventures, you'll need to refocus who your target niche is. This will help you decide a variety of things such as pricing, type of products and so on. For example when deciding on prices, you're not going to charge teens 50$ dollars for a tshirt(although some are willing to cough out that much nowadays).
Have you researched your markets?
Have you actually spent the time in determining the required costs? Have you actually asked around to see if your potential market exists; or if it will be a flop or be a potential success?
From small businesses to multibillion dollar corporations, EVERYONE spends a large amount of money as well time and effort on this sector. Going into business without doing this is like driving with your eyes closed.
Purpose:
The more research you do in your market, the lower the risks. You'll also be able to identify the potential risks and what the competitor is offering. If you get a chance, getting numbers i.e. prices, what people are willing to pay, etc. That will be even more helpful, and don't just try to get estimates, real numbers are obviously better.
How will you get to your potential customers?
How will you reach your potential clients? Are they going to find out about you from word of mouth, referrals, internet, etc. This is the part where you must connect the dots from your service/product to your customers.
Purpose:
This section is so vital, it should be its own thread, but maybe another day. This is crucial, it doesn't matter how good your service or product is, if you can't get to the customers, you're still empty-handed at the end of the day. This will also allow you to determine additional costs and resources along the ways. i.e. selling on ebay will cost the seller, advertising will also cost you.
Where is your HQ?
You must now decide where you are going to conduct business. Perhaps you like to have a home-business, or perhaps you would rather set up a booth, store, etc. Other factors come into play at this point. If you set up a store at a mall, will your product/service appeal to people there? You must also decide what is more financially possible for yourself. Rent isn't cheap, so if your just starting out, this might not be the ideal thing, unless you have a $$$ and you really don't mind.
How much do you have, and how much do you need(finances)?
The moment of truth, we all wish we had pots of gold, but quite frankly i don't think we are all the fortunate. Finances are probably your most frustrating yet essential factors that will determine the hit or miss of your venture. this one's a long one so pay attention:
(i)Income statements: What will your costs, sales, profits be in the first three years? Note that i said three years since most businesses fail within the first three years, so make sure you have a set of numbers for each year, in other words you should have at least 6 numbers.
you must be realistic at this point, you're not going to make 100,000 dollars in 2 months, and chances are you'll be scavenging for every penny.
(ii)Do you have enough cheddar: You must determine now whether or not you have enough money to even survive the start-up portion of your venture. Usually people will say that you should have at least twice as much cheddar that you expect to spend on starting up; better safe than sorry.
(iii)Cash-flow: Good job on your first few sales! But do they even cover your costs? Are you racking in enough cheddar to even move out of your starting-up stage? More often than not, most businesses barely make enough to stay alive-constantly hanging on that thread, if that's the case, you're business will never truly grow, bye-bye dreams! Surviving the harsh market is only one part, growing is just as important! You must have a solid idea of how much you're going to make, and whether or not those numbers will allow your move on and expand your business.
(iv)Break-even points: Break even point is the point when you start making money, after paying for all costs and resources. You must now have a solid idea of how to price your products so you're not at a deficit(losing money) and that you're on a profit side.
Where am I going to acquire my raw materials and resources?
You must now decide where you are going to get your resources, and trust me, everyone needs to. Where are you getting your shirts from? What if the distributor is gone, do you have a backup? Are the resources going to come on time for me to print all the stuff and deliver it to the client? This should constantly be on your mind. Always have backups btw, you never know what happens.
Can I solo this venture?
I know, I know, we ALL want to be the big man/woman and get all the credit, blah blah blah. But let's be realistic, can you actually achieve your goals by just soloing it? At one point or another, you might need to get a loan from someone, at some point in time you're going to need someone else's expertise or help to get you through the rut. Now is the time to think. I'm in no means saying that you can't achieve your venture by yourself and that you MUST get a partner or a few; but sometimes you have to, there can only be so much one person can do.
Next, say you open a store, are you going to have to hire employees, wages, liabilities, etc. those things will start to kick in.
Do I have a solid team?
Let's face it, if you truly want to grow your business, at some point in time your going to have to get yourself a team of professionals. All major corporations and multinationals like MacDonald's have lines of lawyers and accountants, advisors and so on. If you are truly serious about your business, you will at one point need their expertise.
Purpose:
Let's face it, you can't be an accountant, lawyer, all at the same time, "there is no I in team". You're better off getting professional help. Besides, investors will be more attracted if you have a team that can provide expertise and good advice to drive your venture. Some of you are wondering why you need a lawyer, making a simple tshirt can get you in a whole lotta **** quite frankly. If someone swallows your tag or something, get injured from your packaging, who knows what happens, customers can sue you. I remember reading somewhere that Bic(the pen company) has a line of lawyers ready for anything, apparently every year thousands of adults swallow/choke on pen caps.
What are the risks that are waiting for me?
There will always and always be risks, your job is to determine those risks and if possible prevent them or prepare for them.
In the business world, risk is a common word, it's everywhere, everyday, you just have to live with it. i.e. legal disputes, copyright infringement, employee and staff problems, product won't sell, etc.
Once again, you can assess your risks, but it is of course, better to have a team that can help you with it.
Whew, that was one loooooonnnng post, I hope that helps you guys. I know this isn't the business plan, but as I mentioned earlier, if you can't even answer these questions honestly, you're not ready to make a business plan. You should definitely spend lots of time on these questions, since they'll help you throughout your venture from beginning to end. This will solve you hours of head-scratching and swearing, it will save you money.
Anyhow how you enjoyed it, that was four pages on microsoft word! I'll be posting another thread on how to make a business plan soon, as well as other things that might help you along the way in the near future
looking forward to more information here.
