Hot&Cool Clothing Inc. Where we want to keep the world Hot&Cool, all at the same time. Business Plan Checklist Before you hand in your business plan, make sure you have each of the following: 1. Cover Page 2. Table of Contents 3. Business Overview 4. Management Profile 5. Market Research: Customer Profile 6.A. Marketing Plan: Product 6.B. Marketing Plan: Price 6.C. Marketing Plan: Promotion 6.D. Marketing Plan: Place/Location 7. Suppliers/Inventory 8.A. Financial Plan: Start-Up Costs 8.B. Financial Plan: Sources of Funding 9. Appendix Business Overview Hot&Cool Clothing Inc. will be a self heating and cooling clothes manufacturer that’s located in a warehouse space at 261 11th Ave, New York. Jeus Louise O. Sereneo will be the founder and sole owner of the incorporated company that will employ more than 50 worker’s that will primarily focus on manufacturing both hot and cool air converting clothes. The need for affordable and efficient heat warming clothes in the winter and cool freshening clothes in the summer have created a great opportunity for a local manufacturer to supply clothe selling shops, department stores, super markets, and low budget customers with an affordable alternative to the battery powered self-heating jackets and cool breeze vests supplied by the U.S. The challenge the business faces will be to introduce and persuade customers that the product has consistent quality, is better than the products manufactured by the U.S, will address the needs of the buyer, and will appeal to their customers. The product will be environmentally friendly and unique in that it will donate a portion of its profits and products to various charities and people who are in need. It is hoped that this will appeal to consumers who are becoming environmentally and socially conscious. The clothes will be packaged in the factory and will be sold by sales agents throughout globe. Management profile Hot&Cool Clothing Inc. recognizes that its success will solely depend on a management team that is willing to do everything it can for the companies’ success and bright future. Alexander Davinci will lead the main clothes manufacturing team because of his exceptional clothing expertise which he earned from his 6-year’s experience as the manager at an Aime Leon Dore Franchise and his 4 years in traditional liberal arts college which earned him a BFA. Sean DiCaprio is our leading fabric designer and developer of the newly developed hot and cool air converting fabric, he has a splendid Fabric developing and designing background which include a GED and a bachelor’s degree in fabric designing, he has experience in the field of fabric designing at My Fabric Design for 5 year’s, and he also has a 3-year’s experience in fabric development at Fabric Development Inc. Samantha Dean will be our financial background to the business which includes a CA designation and 10 years of managing the finances of a clothing manufacturer in New York. Donatello Schwarzenegger will be responsible for manufacturing the fabric and the clothes themselves, he has a strong clothe and fabric manufacturing background which include a GED, he worked at his fathers clothe manufacturing business for 10-years and he has a 3-years experience in fabric manufacturing at InPro Corporation. Natalie Galilei will be responsible for developing marketing materials and for managing human resources. She brings 6 years of experience in working for a PR firm with her. All members of the team will be working full-time and be paid a yearly salary. BMO’s accounting firm has been retained to look after book-keeping and Anastasia Hobbs has been retained for legal advice. Customer Profile Hot&Cool Clothing Inc.’s non-battery powered self heating and cooling clothes are a multi-use product that will be used by a variety of customers but will primarily focus on two distinct customers. The primary target for this product is the people who live in high and low-temperature regions. This segment is vastly growing at 32% a year, with 2,550,000 potential customers around the world. People are known to need preserving the heat inside the body and the need to cool off, they are convinced about buying products that will help them in that particular need. The secondary targets are the people who travel across the world like travelers, backpackers, foreigners, tourists, and athletes. This segment is also growing at 16%, with 340,000 potential customers from 2015-2019 with each year. This following year, the ratings dropped by more than 9% due to the pandemic, the number of customers is about 49,000 (yr. 2020) and will likely decrease in the upcoming years if the pandemic continues. Marketing plan A. Product Hot&Cool Clothing Inc. provides the best and state of the art non-battery powered heating and cooling technology that will be put on to clothes to keep the body temperature more suitable to the temperature of the environment depending on what type of clothes you buy and where you will be using the product. Upon entering the shop, you will be greeted by service bots that will give you a survey; questioning what type of clothing you intend to buy and the measurement on the clothes you want to purchase. You can gladly decline the survey, or you can also answer the survey to broaden our information on what you often intend to purchase in our store the next time you enter our store’s premises. After your survey phase either you or the service bots can go around the store and pick the desired clothing of your choosing, you can pick in a variety of jackets, t-shirts, shoes, sweaters, boots, and other clothing styles, you can also ask our floor staff for any help, problems, and /or suggestions, after your done choosing your clothes you can go to the counter and purchase your desired product, and for every time you purchase one or more products you can get a $50 Dollars gift card on each of our stores opening and you can also get a complimentary mug for every five products purchased. B. Price Hot&Cool Clothing Inc. prices its products at an affordable price where it will range at about $35-$150 for its various products, where any customer can purchase in any of our stores and in supermarkets, mall, and marketplace. The affordable price range give us an advantage due to most people having a want and/or need for our product and have the necessary amount to afford our product even if the customer works at a low-wage job. Our product will satisfy the needs of our customer because its affordable and will guarantee to uphold its purpose. C. Promotion The main marketing tool for Hot&Cool Clothing Inc. will be word-of-mouth referrals. New York’s consumers are remarkably loyal and are known for relying primarily on the opinions of friends and family when making purchase decisions. In order to assist with word-of-mouth referrals, Facebook, Instagram, and other social media platforms will be utilized to promote the products among friends, family and colleagues. A website with professional photography will be developed to be used by Social media users who are interested in items. They will be able to click to the page from Social media as well as through web searches and directly through its web address. D. Place/Location Hot&Cool Clothing Inc. will be located at 261 11th Ave in the North-West side of the New York North End retail business district. The location is in the West side of the Manhattan Island, close to the Hudson Yards, and it is a 65,000 square feet ground level location. The location is full of tourist’s, foreigner’s, travelers, and other potential customers across the world. This has given us the advantage that many people will come into our stores and because of the affordable price range most people will definitely purchase our products. Financial Plan The financial plan overviews how much money is needed to start the business and if the business will be profitable. A. Start-Up Costs Insurance 3,000 Down payment (1st Month) 4,400,000 Business Name Search & Registration 550 Labor Costs 800 Design Cost 250 Manufacturing Costs 7,000 Quantity cost 2.600 Marketing cost 200 Incorporation Fees 2,000 Accounting – Books Set-Up 500 Bank Charges 75 Promotion Radio – Grand Opening 800 Newspaper – Grand Opening 750 Furniture Desk & Chair 500 Lamps 450 Filing Cabinets 600 Equipment Computer 2,000 Photocopier/Printer 600 Fabrics 700 Sewing machines 6,000 Sewing Materials 1,500 Start-Up Costs $4,432,175 B. Sources of Funding This section of the financial plan shows where the money will come from to cover business start-up costs. Bank Savings 1,500 Won third place prize on a Cyclist Competition 485 Part time job (16 per day for 3 months) 1488 Bank Loan 4,500,000
