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A Sample Embroidery Business Plan Template

Are you about starting an embroidery business? If YES, here is a complete sample embroidery business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting an embroidery business. We also took it further by analyzing and drafting a sample embroidery business marketing plan template backed up by actionable guerrilla marketing ideas for embroidery businesses. So let’s proceed to the business planning section.

Why Start an Embroidery Business?

We all know that the embroidery business is a business that has come to stay; from custom apparels and accessories, to gift items. We can all attest to the fact that the way apparel looks after it has been embroidered makes the dress stand out and beautiful.

That is why some modern designers still use embroidery to push up their clothing lines in all continents. The rich African fabrics usually entail that they are embroidered on, so as to get the best of beauty. This is why tailors, as well as African fashion designers always do all they can to make sure that they offer embroidery services.

Embroidery is the art of making weaves on clothes in a creative manner, so that they appear elegant. These designs can be done in different colours and in different forms. It is important to note that this business is one of the very few businesses that guarantees returns on investment any day and any time because of people quest to always appear fashionable and to remain colourful.

If you have interest in this industry or you’re in love with fashion, or are looking for a way to break into the fashion industry, then you should consider this business strongly. Here is a sample embroidery business plan that you can use to realize the dream of owning your own embroidery business;

A Sample Embroidery Business Plan Template

  • Business Overview

Professional analyst have stated that within five years to 2017, growing per capita disposable income and reduced unemployment briefly stitched away recessionary woes for the Commercial Embroidery Services industry. But operators in this lucrative industry have had to manage with intense external competition, which is believed will to put a barrier to a revenue growth at the end of the five-year period.

But it is believed that as the economy has begun to recover and unemployment has fallen, demand in this industry from downstream buyers, which include the administrative and hospitality sectors, has moved up. It is important to say that the decade-long trend of large multifunctional apparel companies integrating embellishment processes into their business has affected the growth opportunities for the Embroidery industry. This simply means that the industry revenue has risen at an average annual rate of just 1.8% to $831.8 million over the five years to 2017.

Also, after the recession, businesses in this industry have experienced some fresh air: unemployment in downstream markets has begun to reduce and per capita disposable income has increased. But despite the hard work and efforts of businesses in this industry, participants are not expected to experience growth over the five years to 2023. Overarching competitive pressures, which affect the entire apparel-manufacturing sector, are likely to remain hallmark traits of the industry. Consequently, IBISWorld expects industry revenue to decline in the five years to 2023.

Embroidery Business Plan – Executive Summary

Fabric Court (FB) is a new and breathe taking family apparel retailer.  This business we believe will produce on year round basis fabrics such as jackets, shirts, sweatshirts, sports apparel, hats, and promotional items.  We also plan to customize the fabrics that we sell by embroidery, silk-screening, monogramming, and lettering.

FB is in the very middle of the Tri-cities, Washington and is centrally located in the vast counties it serves (Benton, Franklin, and Walla Walla counties).  The area without mincing words is growing in population and demographic information shows it may fare better than many other parts of the United States through the ongoing economic downturn.  Data’s from the US census shows that this business location is home to over 193,567 people and 35,564 businesses. It is believed that the area is highly diversified with no single industry dominating the area’s economy or market.

FB is the only embroidery and silk-screening business within a 45-minute radius, which means we have no local competitions. Our main competitors for now are the Internet companies, but we believe we have an edge over them. Our primary marketing focus at FB are the privately owned ventures in the tri-cities area with a staff of face-to-face customer service providers, or with a vision of “branding” their business by making available uniforms for their employees.

Our secondary marketing focus at FB will be the teams, groups, and organizations in the area seeking lettered uniforms or clothing. We believe that our competitive edge is our unique location, our urge to produce excellent customer service, and the experience and knowledge of our owners who have already marked put the key factors that must be reached to make the store successful and well known.

We believe that increased sales can be reached by creating an outside sales force, by growing the retail hours, and by making use of the benefits of a more breath taking website with shopping cart capabilities. We at FB believe that all these are immediately achievable especially the workforce we have. We believe that heightened profitability can be serving to maintain our gross profit margin and by creating a diligent expense control system, which will push the business higher.

We at FB believe that the future holds substantial promises for us. We also believe that we have far more strengths than weaknesses. We have taken our time to analyse the situation and the industry, we believe that we have the vast opportunities for growth and profitability by simply following our creative business plan.  We believe that the only serious threats we will be facing are the prolonged and worsening economic downturn or a competitor decision to move into our location.

  • Our Products and Services

We at FB plan to offer essentially an identical inventory of apparel as do other retail embroidery and silk-screening businesses in the United States. Our inventories will include shirts, sweatshirts, jackets, hats, sports apparel, and other clothing items with our primary suppliers being VJC, Umbro, and Manny collections.

We at FB will enhance the clothing items through custom embroidery, silk-screening, monogramming, and lettering.  We will sometimes design an insignia or logo simply from an image or an idea and customize the chosen apparel with our standard stitching and silk-screening equipment for large or small orders from individuals, groups, teams, and businesses.

  • Our Mission Statement

Our mission at FB is to provide our prospective customers with “Professional Quality, Hometown Service.”

  • Our Vision Statement

Our vision at FB is to build an expansive facility that will provide graphic design, custom printing, and embroidery services to the general public.

  • Our Business Structure

Fabric Court  is 50% owned by Dennis Brighton and 50% owned by Ethan Magnus . Our LLC formation was chosen as a logical method to reduce personal liability issues for our owners and avoid the double taxation that can render a company penniless.

It is important to note that Ethan Magnus is the most active and hands-on of the two FB owners.  Ethan Magnus comes from a retail management background with vast experience in embroidery, silk-screening, and promotional products. He, we believe is the best hand to handle and run the business.

We at FB hope to keep hire workers that are very qualified, truthful, customer centric, good communication skills and are open to help us build a business that can compete out rightly in the industry, We at FB have also created a profit-sharing arrangement for all our senior management staff and it will be judged based on their performance for a ten years duration.

In starting this prosperous business, we decided to hire qualified and competent hands to occupy the following offices;

  • Chief Executive Officer
  • Managing Director
  • Admin and HR manager
  • Fabric designers
  • Marketing and Sales Manager
  • Information director
  • Company accountants
  • Sales representatives
  • Deliverers
  • Cleaners
  • Security guard

Roles and Responsibilities

Chief Executive Officer

  • He will be in charge of providing work direction for the business
  • He is charged with building, communicating, and implementing the vision, mission, and direction of the business – which also includes leading the achievement and implementation of the all the business strategy.
  • His also responsible for fixing prices and signing business deals for the business
  • His in charge of employment
  • He also pays workers salary
  • His responsible for Signing checks and documents for and on behalf of the business
  • He also Evaluates the success of the organization

Managing Director

  • In charge for managing the daily activities in the company
  • Make sure that the facility is in very good shape and conducive enough for customers
  • Connects with third – party providers (vendors)
  • In charge of supervising and training new staff members
  • Reports to the Chief Executive Officer
  • Settle all Customers complains and enquiries
  • Creates budget and reports for the fast food
  • Any other duty as assigned by the CEO

Admin and HR manager

  • In charge of overseeing the running of HR and administrative tasks for the company
  • Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Stay updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Builds the FB reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • State job positions for recruitment and managing interviewing process
  • Organise staff induction for new team members
  • In charge of training, evaluation and assessment of employees
  • In charge of arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities.

Fabric Designer

  • In charge of working through the design process from research sketches and ideas to resolved designs for specific techniques;
  • Will have to use hand and machine techniques to produce samples and finished works;
  • Will have to use a variety of traditional and contemporary materials to interpret designs;
  • Will have to use a sewing machine and other equipment;
  • Planning the layout of specific designs
  • Tasked with working to a particular style or pattern
  • Charged with producing instructional articles on projects for embroidery publications;
  • Be able to teach in further and higher education, workshops, courses and classes in embroidery techniques.

Marketing and Sales Manager

  • Oversee external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Creates demographic information and analyse the volumes of transactional data generated by customer purchases
  • Understand, prioritizes, and reaches out to new partners, and business opportunities et al
  • Understand development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • In charge for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Create, executes and evaluates new plans for expanding increase sales
  • Keep all customer contact and information
  • Represents the company in strategic meetings
  • Aid to increase sales and growth for the business

Information director

  • Is in charge of the organization website
  • Takes care of the ecommerce aspect of the business
  • In charge for installing and maintenance of computer software and hardware for the organization
  • Take care of the logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Takes care of the organization’s CCTV
  • Handles any other technological and IT related duties.

Company accountants

  • In charge of preparing financial reports, budgets, and financial statements for the company
  • Gives the managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • In charge of financial forecasting and risks analysis.
  • Understand cash management, general ledger accounting, and financial reporting
  • In charge of developing and managing financial systems and policies
  • In charge of administering payrolls
  • Ensuring compliance with taxation legislation
  • Take care of all financial transactions for the business
  • Serves as internal auditor for the organization

Sales Representatives

  • Quickly attends to customers in a friendly and professional manner
  • Explain all available services to customers
  • Takes care of any other duty as assigned by the Chief Operating officer / managing director

Deliverers

  • Delivers customer’s orders on time
  • Delivers correspondence for the facility
  • Runs errand for the business
  • Any other duty as assigned by the floor / line manager

Cleaners

  • In charge of cleaning the restaurant facility at all times
  • Make sure the toiletries and supplies don’t run out of stock
  • Make sure that both the interior and exterior of the facility are always clean
  • Handles any other duty as assigned by the manager.

Security guard

  • In charge of protecting the agency and its environs
  • Controls traffic and organize parking
  • Give security tips when necessary
  • Patrols around the building on a 24 hours basis
  • Presents security reports weekly

Embroidery Business Plan – SWOT Analysis

We at FB understand the need to be prepared and the importance of making adequate plans for ones business. We also understand that a business plan is not complete without a SWOT Analysis, which will tell your flaws and strength. We employed the services of a renowned Consulting firm to aid with our SWOT Analysis. Below are the results presented to us at FB:

Strengths

  • Our Business location is central to the tri-cities area
  • We have no local competition within a 45-minute radius
  • We have an Impeccable customer service tradition
  • Our vendors have high Reputation for high quality products and custom workmanship
  • We can produce smaller jobs that some competitors will not accept

Weaknesses

  • The industry has slowly slowed down financially over the past three years with the economic downturn
  • Our prototype website may not have the ability and sophistication to compete with other competitor websites
  • Cash flow for publicity is impaired
  • Business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)

Opportunities

  • Our Business area is growing in population and median household income
  • We should be able to capitalize on our competitive edge if sales representatives can communicate effectively to local business owners
  • A sophisticated website may attract both local and out-of-area customers
  • Our Planned way of generating fund will surely boost us

Threats

  • Prolonged economic downturn that hinders the rebound of area businesses and limits discretionary income
  • Industry wide technological advances that could render existing store equipment as obsolete
  • A new competitor opening in the immediate area

Embroidery Business Plan – MARKET ANALYSIS

  • Market Trend

Recently the major businesses in the clothing design and production have all showed huge interests in dated prints that include beautiful embroidered details- both large and small. It is also a known fact now that personalization is gaining momentum in the industry.

We all know that Personalization is a relatively little way to add a touch of originality and personality to ordinary items and now customers can do this without leaving their houses. Just with the new personalization based software like Wilcom’s Kiosk, or online web personalization like Wilcom’s web API. This simply means that everyone can opt to personalize their fabrics at home.

Also there has been a rise in embroidery on non-fabric surfaces. We believe that this new trend taking off has been mixing embroidery with carpentry, with many pieces of wooden furniture now sporting embroidered decorations and styles.

Items like bedposts, coasters and even tables and chairs are part of this trend in the industry, with embroidery beautifying regular pieces of furniture in astounding ways. Also we are now seeing embroidery on even stranger surfaces like metal, Perspex, jewellery, food- check and even on skin. It simply means that the industry will keep growing.

  • Our Target Market

We at FB have chosen two focus groups because they possess the highest likelihood of purchasing uniforms and custom apparel and they share the goal of building cohesiveness amongst their team members through a uniform or logo apparel. We believe that even though the largest category of business establishments are those that are primarily home-based, farm related, and non-privately owned, we know that the market segment is the least likely to produce dramatic sales growth since they have very few employees in their establishments.

We hope to target larger businesses that have customer service employees, those eager to brand their business, or have already branded their business and are looking to kick in a notch.  Which is why our primary focus is on privately owned business establishments, whether they are owned by women or men.

We believe that our best possible marketing approach to this segment would be to locate and note each business individually and concentrate initial marketing efforts on those businesses with the most employees performing face-to-face customer service functions.

We believe that the most preferable way of contact will be through our CEO, Managing Director or the sales representative to directly and personally contact each business owner within our target market.  We at FB believe that to be able to target the privately owned business segment, active membership in the local Chamber of Commerce and other local business organizations should be considered to develop contacts and networking opportunities.

We believe that these activities would also be effective with team leaders in sports organizations. We knowthat identifying the organization or league and its leader or official may be hard and time consuming, but the profits could be worth it all.

Our Competitive Advantage

  • Excellent reputation for high product quality and custom workmanship
  • Impeccable customer service
  • No local competition
  • Ability to handle production runs of all sizes

Embroidery Business Plan – SALES AND MARKETING STRATEGY

  • Marketing and Sales strategy

Many business owners have discovered that they must find a competitive edge to survive difficult economic times and to capitalize on good economic times.  One of the ways to do it is to make uniforms and coordinated logo apparel for their businesses. It is believed that Uniforms and coordinated apparel can boost businesses that rely on face-to-face customer service and also create a competitive edge against their competitors.

We at FB believe that our primary means of reaching our target market is to contact the business owners individually. While our secondary marketing will focus on countless teams, groups, and organizations that desire or need uniforms for their facility. While this market segment is also as important as the primary strategy, we believe it will be more expensive. It will include;

  • We plan to implement a local campaign with our targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
  • We plan to develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
  • We will also introduce our business by sending introductory letters alongside our brochure to corporate organizations, accredited investors, top corporate executives and key stake holders in Washington
  • We will also advertise our business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
  • We hope to list business on yellow pages ads (local directories)
  • We will also attend relevant international and local finance and business expos, seminars, and business fairs et al
  • Create different packages for different category of clients (start – ups and established corporate organizations) in order to work with their budgets and still deliver good returns on investment.

Embroidery Business Plan – Publicity and Advertising strategies

  • We plan to build a standard brand page
  • We plan to mount our billboards in all strategic points
  • We plan to build a sophisticated website
  • We hope to Offer different payment strategies
  • We hope to make use of our advertising strategies judiciously
  • We hope to ask our existing customers for referrals

Our Sources of Income

We at FB are very eager to be successful and everything is pointing towards that success. This business was created to be profitable, which is why we went to the length to discuss the source of income. Below is a description of the graphic design and embroidery services we will be offering at FB.

  • Graphic Design Services

We at FB will generate income by providing graphic design services to customers that are in need of logos or designs. We believe that these designs and logos can be purchased as a standalone service or for embroidering onto apparel and promotional products.

  • Embroidered and Logo Products

Our main source of income at FB will be from the sale of embroidered apparel and promotional products to customers. We believe our business will be able to generate margins of 50% on each dollar of sales.

  • Sales Forecast

We at FB are being very careful with each plan and preparation we’re making for the business. We believe that our owners will pump in their various experience from diverse industries into FB. All our assumptions and projections are done with careful analysis with what is applicable in the industry, with no exaggeration. Below are the sales assumptions for FB;

  • We at FB project a sales increase of 30% in 2018 due to the addition of a commissioned outside sales representative in July 2017
  • We expect a sales increase an additional 25% in 2019 due to the continued effect of adding a commissioned outside sales representative in 2017
  • We also forecast a sales increase an additional 15.0% in 2020 due to the continued effect of adding a commissioned outside sales representative in 2017
  • The relationship of apparel sales to total sales continues at its present level of 65%
  • We expect the cost of apparel continues at its present level of 50% of apparel sales
  • We forecast relationship of customization sales to total sales continues at its present level of 35%
  • We estimate the cost of customization continues at its present level of 42.5% of customization sales
  • We project that the total gross margin remains constant at its three-year average of 52.5%

Our Pricing Strategy

Though we at FB have no local competition, we understand that we must compete with internet retailers who offer similar garments at slightly lower prices.  Our research and experience at FB indicates business owners and decision makers would buy based on superior quality and product wear, excellent customer service, and local business location.

This is because their purchase is to positively enhance their business image and awareness. We also know that businesses in our business scope make their money from the interest and commissions they offer their services and products. We hope to keep our prices below the average market rate for the main time, but will increase as our corporate identity increases.

  • Payment Options

It is very easy to note that as our various issues differ, so do our wants and the way we prefer to do their basic transactions also differs. We at FB plan to create a platform that will suit our diverse clients at different times. We have also partnered with a renowned banking platform to entrust serve our clients very well and comfortably. We hope to make available the following payment options for our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment through POS
  • Payment through PayPal
  • Payment via check
  • Payment via bank draft
  • Payment with cash

Embroidery Business Plan – Financial Projection and Costing

Starting a standard embroidery business is not a day job, but a business that comes with accurate planning and packaging. We also understand that the start up cost of starting a business like ours is solely divided into three folds; the cost of organising your office structure, the capital meant for inventories, and the cost of other issues like advertising and business registration.

We’ve been very careful to research and understand the basic things we need to start a business that will be the best in little or no time. The financial projection and costing of FB is outlined as follows;

  • Cost of incorporating the Business – $750.
  • Cost for basic insurance policy covers, permits and business license – $10,000
  • The cost of acquiring a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $55,000
  • The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $12,000
  • The Cost of Launching our official Website – $600
  • Our budget for paying at least three employees for 6 months plus utility bills – $36,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Our Inventory fund – $2,000,000
  • Miscellaneous: $1,000

From our cost analysis above, you will understand that FB is not a trial and error business but a firm with power, plan and opportunities. We believe we will be needing $122,850 and our $2million inventory fund to start FB.

  • Generating Funding / Start up Capital for FB

It is important to note that FB is a business owner by two friends. This unique business was established with a basic love, connection and experience by two individuals who have been together and have extended their bonds from the floor of friendship to the pinnacle of family.

They will prefer to fund the business privately for now, but are likely to source for external funds as the business grows. These are the areas we intend generating start – up capital for FB

  • Raise part of the start – up capital from personal savings
  • Source for soft loans from family members and friends

Note: Our Management have been able to raise $2million from the two founding partners ($1million each). We have been able to raise these amounts through their individual savings and few soft loans from their families. We believe that we have what it takes to fund the business completely, while also giving the best to our clients.

EMBROIDERY BUSINESS GROWTH: Sustainability and Expansion Strategy

We understand that in an industry such as ours where the product purchased by the consumer is very similar to products offered by the competition, ventures have long recognized the benefits of excellent product quality, quick turnaround, impeccable customer service, convenient store hours, the latest technological advancements, and finding economic tools to win and maintain customers.

Even with the technological advancements available in the industry that would also give lesser production costs (for example, a state-of-the-art ink embedding process called sublimation), this technology comes with a big price tag and the possibility of fast obsolescence as the industry continues to revolutionize in this modern age.

Instead of adding all new equipment, we at FB chooses to sustain our own market share by creating a tradition of excellent product quality, quick turnaround, and impeccable customer service.  We also plan to grow our market share through a more aggressive marketing plan that will increasingly highlight our customer service, product quality, and attention to detail while also emphasizing the advantages of dealing with a local business. We will also make our employees very comfortable and reliant.

Checklist/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress
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