Do you want to start a leggings production company? If YES, here is a detailed sample leggings manufacturing business plan template & FREE feasibility report.
Starting leggings manufacturing business is of course one of the many businesses that can be started in any part of the world and the owner of the business can still penetrate the world market once the design is good and it meets a need in the fashion market; every female whether old or young have need for leggings.
The bottom line is that there is always a ready market for manufacturers of leggings. All a designer needs to do is to ensure that he or she carve a niche for his business and they work hard to build their brand name to be accepted beyond his / her city of operations.
A Sample Leggings Manufacturing Business Plan Template
1. Industry Overview
The hosiery mills industry that leggings manufacturing business is a party of comprises establishments that primarily manufacture hosiery and sock products. In facilities leased or owned by the company, producers form raw materials, such as cotton and polyester, into hosiery and socks.
These products are then sold to wholesalers and retailers for resale to consumers. The leggings manufacturing business is a business whose products are used all across the world by females. It is fact that there is no cultural barrier to the usage of leggings.
As a matter of fact, you can’t be a sport woman without making use of leggings. The Hosiery Mills industry is indeed a large industry and pretty much active in all the countries of the world especially in countries such as the China the united states of America, France, Italy, Thailand and South Korea.
Statistics has it that in the United States of America alone, there are about 685 registered and licensed hosiery mills cum leggings manufacturing companies scattered all across the United States responsible for directly employing about 8,792 people and the industry rakes in a whooping sum of $1 billion annually.
The industry was projected to grow at 0.2 percent annual growth within 2014 and 2019. In the United States of America, Renfro Corporation and Golden Lady Company SpA has the lion market share of the available market in this industry. Their products can be found in every nooks and crannies of the United States and also in most countries of the world.
A recent report published by IBISWorld shows that over the five years to 2019, changing consumer preferences regarding hosiery products have adversely affected demand for the Hosiery Mills industry. Casual dress and bare legs have become more acceptable in the workplace and, thus, fewer women are wearing hosiery.
During the current period, industry revenue has fallen. The industry has suffered from the dominance of imports and a rise in offshoring activity, which have driven downstream demand from consumers away from US-produced goods. With the hopes of lowering labor costs and retaining competitiveness, many operators have offshored a large portion of their manufacturing capabilities.
The report further shows that over the five years to 2024, industry revenue is forecast to continue falling. To counteract increasing offshoring, operators are expected to boost demand through product innovation and marketing strategies, including new fabrics, more product options and improved cutting precision through laser and ultrasonic technology.
Lastly, it is important to point out that hosiery (leggings) mills industry operators in the United States are not able to compete on price against manufacturers in developing countries, so it is important for firms to continually innovate to maintain growth.
Innovation in this industry refers to differentiation through fashion, designs or technology. The ability of firms to differentiate themselves from less expensive Asian substitutes is essential to remain competitive in the global marketplace. Innovation is also needed to create international demand for US brands.
Rising urbanization, brand awareness and rapid retail growth are attracting consumers to branded intimate apparel, fueling the growth of an organized hosiery and intimate apparel market. This presents an opportunity for US operators. Additionally, US firms are forecast to increase productivity by implementing new technological innovations.
2. Executive Summary
Nancy Rowlands™ Hosiery Brand, Inc. is an international leggings manufacturing company that will be located in Broken Arrow – Oklahoma.
We have been able to secure a large warehouse in a strategic part of town that will be converted to our leggings manufacturing factory. We were able to out rightly buy over the facility with the help of our bank and support from family and friends.
Nancy Rowlands™ Hosiery Brand, Inc. will be involved in the production of leggings, hosiery and sock products for females or all age range including babies.
Our business goal is to become one of the leading leggings manufacturing companies in the United States and we will make sure that every leggings, hosiery and sock products that leaves our factory can favorably compete with the best brands in the industry.
Our workers are going to be selected from a pool of talented leggings, hosiery and sock products designers in and around Broken Arrow – Oklahoma and also from any part of the world as the business grows.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading leggings manufacturing companies in the United States and throughout the globe.
We have put plans in place to build a state of the art leggings manufacturing factory in Broken Arrow – Oklahoma, which is why we have entered agreement with some manufacturers of sewing machines to produce customized sewing machines for us that will give us the quality of leggings, hosiery and sock products that we want to be known for.
Our factory will be well equipped and we will ensure that we follow the trend in the industry. Nancy Rowlands™ Hosiery Brand, Inc. will manufacture high quality leggings, hosiery and sock products for both the high – end customers and also for low income earners; we want to become one of the people’s choice wherever our leggings, hosiery and sock products are put up for sale.
Apart from mass production of leggings, hosiery and sock products, we will also be engaged in customized production of leggings, hosiery and sock products for customers based on their demands.
We are quite aware that there are some clients such as sporting clubs, political parties, schools, dance artists, churches and organizations that would need quality customized leggings, hosiery and sock products for specific purposes and we are well prepared to deliver as requested.
Nancy Rowlands™ Hosiery Brand, Inc. is own by Nancy Rowlands and his immediate family members. She is an American fashion enthusiast with over two decades of experience in the fashion industry. She will occupy the position of the chief executive officer (CEO) / President of the organization.
Nancy Rowlands has Degree in Fashion Designing from New York School of Fashion and also an MBA from Harvard. She is a well – respected figure in the fashion industry, prior to starting Nancy Rowlands™ Hosiery Brand, Inc. she was the creative director in one of the world’s leading fashion label that is based in New York.
3. Our Products and Services
Nancy Rowlands™ Hosiery Brand, Inc. is established with the aim of producing high quality and highly fashionable leggings, hosiery and sock products for females of all age range including babies.
We know that quality is a key factor that will help us sell our brand which is why we have but in place a competent quality assurance team that will ensure that all our leggings, hosiery and sock products meet and even surpass our customers’ expectations.
We will work hard to ensure that Nancy Rowlands™ Hosiery Brand, Inc. is not just accepted nationally in the United States of America, but also in other parts of the world. Here are the products we will manufacture;
- Knitting and finishing leggings
- Manufacturing full- and knee-length hosiery for women and girls
- Knitting and finishing nylon and sheer hosiery
- Knitting and finishing pantyhose
- Manufacturing sheer stockings
- Manufacturing socks for men, women and children
- Knitting and finishing tights
- Knitting and finishing athletic socks
- Knitting and finishing sheer footies
4. Our Mission and Vision Statement
- Our vision is to establish a leggings manufacturing company whose products will not only be accepted in the United States of America, but also in other parts of the world.
- Our mission is to establish a leggings manufacturing company that will design and produce high quality leggings, hosiery and sock products for females of all age groups including babies; a leggings manufacturing label that will compete favorably with international clothing labels like Renfro Corporation and Golden Lady Company et al at the global stage.
Our Business Structure
Nancy Rowlands™ Hosiery Brand, Inc. is a leggings manufacturing company that intends to start small in Broken Arrow – Oklahoma, but looks to grow big in order to compete favorably with leading leggings manufacturing companies both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class leggings, hosiery and sock products manufacturing business we want to own. This is why we are committed to only hiring the best hands within our area of operations.
At Nancy Rowlands™ Hosiery Brand, Inc., we will ensure that we hire people that are qualified, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
Chief Executive Officer (Owner), General Manager, Human Resources and Admin Manager, Sales and Marketing Executive, Accountant, Fashion Designers (With Bias Leggings, Hosiery and Sock Products), and Quality Control Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
- Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Contributes to team effort by accomplishing related results as needed.
- Responsible for managing the daily activities in the factory
- Responsible for supervising all the employees
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of the business
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Designers and Mills Machine Operators
- Responsible for knitting and finishing leggings
- Responsible for manufacturing full- and knee-length hosiery for women and girls
- Responsible for knitting and finishing nylon and sheer hosiery
- Responsible for knitting and finishing pantyhose
- Responsible for manufacturing sheer stockings
- Responsible for manufacturing socks for men, women and children
- Responsible for knitting and finishing tights
- Responsible for knitting and finishing athletic socks
- Responsible for knitting and finishing sheer footies
- Responsible for sewing corporate and casual leggings, hosiery and sock products as instructed by the supervisor / fashion designer
- Responsible for cutting clothing materials to fit the expected design and size
- Research and advice the organization on style, size and other trendy fashion statements.
Quality Control Officer
- Ensures that all the corporate and casual leggings, hosiery and sock products in our production line meets the required quality before they are released in the market
- Make certain that production and manufacturing lines perform efficiently, coordinate employee efforts, and facilitate communications between management and production departments.
- Devise ways of improving the manufacturing process to ensure higher-quality and durable leggings, hosiery and sock products
- Ensure that manufacturing production lines run smoothly and generate a consistently suitable output for their employers
- Ensures that the organization work in line with international best practices
- Handles any other responsibility as assigned by the general manager
6. SWOT Analysis
Nancy Rowlands™ Hosiery Brand, Inc. intends to build a world class leggings manufacturing business that will manufacture leggings, hosiery and sock products for females of all age groups including babies. We will be based in Broken Arrow – Oklahoma, but we will not restrict the sale of our leggings, hosiery and sock products to the U.S market alone, we will sell our product in other parts of the world.
In other to achieve this in a highly competitive industry like the fashion industry, we must ensure that we critically look through our strength, our weaknesses, the opportunities available in the industry and the threats that we will are likely going to face.
Because of the nature of the business we are involved in and the brand we want to build, we were able to hire the services of an HR and Business consultant with bias in fashion and retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Nancy Rowlands™ Hosiery Brand, Inc.;
Perhaps one of our strongest strength could be attributed to the quality of employees and the latest machines and equipment that we have in our leggings manufacturing factory. Our chief executive officer, Mrs. Nancy Rowlands will be bringing his vast wealth of experience to the table and that is indeed a huge positive for Nancy Rowlands™ Hosiery Brand, Inc.
A major weakness that may count against us is the fact that we are a new leggings manufacturing company and we don’t have the financial capacity to compete with multi – billion dollars fashion label like Renfro Corporation and Golden Lady Company SpA et al when it comes to controlling the market or dictating the trend.
Despite lower margins, the industry has been able to maintain profitability because many consumers consider its products a necessity. One thing is certain, whether good or bad, people will always look for leggings, hosiery and sock products to wear and on the average, they go for leggings, hosiery and sock products simply because it is cheap.
Besides, the opportunity for us to sell our leggings, hosiery and sock products is massive and we hope to leverage on these opportunities to sell our leggings, hosiery and sock products.
Industry growth also continues to be hampered by an increase in offshoring activity, as many firms try to increase profitability and reduce costs. The rise in offshoring has also been supported by downstream pressure from retailers and consumers who continue to demand low-cost, high-quality items.
As a result, industry imports continue to increase at a faster rate than exports, highlighting US manufacturers’ decreasing ability to compete with low-cost foreign producers. These are threats we are going to be confronted with.
7. MARKET ANALYSIS
- Market Trends
In recent time, the fashion industry relies more on mass market sales for them to make the kind of income that will sustain the business. The mass market takes care of a wide range of customers that cuts across both the rich and the poor.
Most of the new clothing line that are trying to catch – up with the market ensures that they produce ready-to-wear leggings, hosiery and sock products using trends set by leading fashion labels.
What they do is that, they try to see the direction of the trend as established by renowned fashion brand before producing their own versions of the original look by making use of cheaper fabrics and simpler production processes which can easily be done by machines.
They can comfortably sell such product at a cheaper price to the masses who can’t afford to by the original which is often way too expensive for the common man.
Leggings, hosiery and sock products manufacturers now leverage on the runway – fashion expo to promote and attract market for their products. Any fashion designers who is recognized in Paris, Milan, New York City, or London can comfortably become a global recognized fashion label.
Lastly, firms have also undergone extensive cost-cutting measures, including slashing employment and reducing inventories.
The future of the industry is expected to continue to follow the trends experienced over the previous five-year period. Declines in industry revenue, employment levels and establishment numbers all point to a difficult operating period ahead.
8. Our Target Market
When it comes to selling leggings, hosiery and sock products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those especially female folks who resides in the locations where we intend opening our leggings manufacturing company.
Despite the fact that Nancy Rowlands™ Hosiery Brand, Inc. will start operation from a single factory in Broken Arrow – Oklahoma, we have a holistic view of the kind of business we want to build; we want to grow to the level where we will build factories in Thailand and China. Our leggings, hosiery and sock products – brand is going to be specifically designed to penetrate not just the United States market, but also the world’s fashion industry.
We want females from all walks of life across the globe to someday put on our leggings, hosiery and sock products; we want to see our leggings, hosiery and sock products being worn in Paris, London, Tokyo, Lagos, Madrid, Johannesburg, Bueno Aries, Sao Paulo, Port Elizabeth, Dubai and all over the nooks and crannies of the world. We are in business to retail our leggings, hosiery and sock products to the following groups of people;
- Sports Clubs
- Dance Artists and Groups
- Every female that resides within the locations where our leggings, hosiery and sock products will be retailed
Our Competitive Advantage
A close study of the leggings, hosiery and sock products manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other leggings manufacturing companies both in the United States of America and other part of the world. Nancy Rowlands™ Hosiery Brand, Inc. is launching a standard leggings manufacturing company that will indeed become the preferred choice of residence, dealers and end users in and around Broken Arrow – Oklahoma.
Another competitive advantage for Nancy Rowlands™ Hosiery Brand, Inc. is the quality and robust wealth of experience of its management team. The management team comprises of professionals who have worked with some of the leading international brand in the fashion industry.
Our latest machines and equipment also count towards our advantage especially when it comes to competing with other leggings manufacturing companies within the same category that we operate. The quality of every leggings, hosiery and sock products that comes out of our production line must be certified ok before they are released to the market.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups leggings manufacturing companies) in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Nancy Rowlands™ Hosiery Brand, Inc. is in business to retail a wide range of leggings, hosiery and sock products both in the United States and other countries of the world. We are in the leggings, hosiery and sock products manufacturing industry to
- Full- and knee-length hosiery for women and girls
- Nylon and sheer hosiery
- Sheer stockings
- Socks for men, women and children
- Athletic socks
- Sheer footies
10. Sales Forecast
One thing is certain when it comes to leggings manufacturing business, if you into the manufacturing of a wide range of leggings, hosiery and sock products, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in and around Broken Arrow – Oklahoma and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the leggings, hosiery and sock products manufacturing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Broken Arrow – Oklahoma.
Below are the sales projections for Nancy Rowlands™ Hosiery Brand, Inc., it is based on the location of our business and other factors as it relates to leggings manufacturing company start – ups in the United States;
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.5 Million
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Nancy Rowlands™ Hosiery Brand, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Broken Arrow – Oklahoma.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the leggings, hosiery and sock products manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Oklahoma.
In other to continue to be in business and grow, we must continue to sell the leggings, hosiery and sock products that we manufacture which is why we will go all out to empower or sales and marketing team to deliver. In summary, Nancy Rowlands™ Hosiery Brand, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our leggings manufacturing company in a grand style with a party for all.
- Introduce our leggings label by sending introductory letters to sport clubs, schools, political parties, dance and music groups, and other establishment that wear leggings, hosiery and sock products in and around Broken Arrow, Oklahoma
- Attend fashion expos in the U.S and in other parts of the world
- Organize our own fashion show; in order for us to display our designs / leggings, hosiery and sock products
- Advertise our leggings label in newspapers, TV and radio stations
- Canvass celebrities to wear leggings, hosiery and sock products and help us promote our label
- List our business on yellow pages ads / local directories
- Leverage on the internet to promote our business
- Engage in direct marketing
- Leverage on word of mouth marketing (referrals).
11. Publicity and Advertising Strategy
Publicity and advertising as it relates to the fashion industry involves being in touch with the organizations target market and being very creative and proactive. Beyond every reasonable doubt the media plays a very big role when it comes to helping a leggings label gain international significance.
The social media also plays an important role in modern day fashion publicity and advertisement; it gives fashion label the ability to reach out to a wide range of customers all over the world within a short period of time and of course at a very cheaper price when compared to other publicity and advertising platforms.
Any player in the leggings, hosiery and sock products manufacturing industry that wants to take on the market must be deliberate when it comes to building brand awareness and credibility.
Most often than not, big – time clothing labels ensures that they create great hype whenever they are about to release any unique design from their stable. Social media, such as blogs, micro blogs, podcasts, photo and video sharing sites are some of the tools fashion designers leverage on to promote their labels.
Some of the preferred social media platforms that are used in the fashion industry are Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites. Here are the platforms we intend leveraging on to promote and advertise Nancy Rowlands™ Hosiery Brand, Inc.;
- Place adverts on both print (newspapers and fashion magazines) and electronic (radio and TV) media platforms
- Sponsor relevant community programs like school fashion shows et al
- Leverage on the internet and social media platforms like; Instagram, Tumblr, WordPress, Facebook, twitter, YouTube and other sharing sites.et al to promote our brand
- Attend local and intentional fashion expos
- Organize our own fashion show
- Promote our clothing label on our own official websites and online fashion community
- Build relationship with celebrities especially in the entertainment industry and sports to endorse of clothing label.
12. Our Pricing Strategy
Nancy Rowlands™ Hosiery Brand, Inc. will make sure that we design and manufactured leggings, hosiery and sock products that will meet the financial capacity of different classes of people in different parts of the world. The prices for all our leggings, hosiery and sock products will be affordable and at the same time competitive with what is obtainable in the leggings, hosiery and sock products industry.
- Payment Options
The payment policy adopted by Nancy Rowlands™ Hosiery Brand, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Nancy Rowlands™ Hosiery Brand, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for leggings, hosiery and sock products purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The machines and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a leggings manufacturing business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Nancy Rowlands™ Hosiery Brand, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring business consultant – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of lease for manufacturing factory for 24 months – $350,000
- Factory remodeling (construction of racks and shelves) – $20,000
- The amount required for the purchase of industrial sew machines and leggings, hosiery and sock products making tools – $200,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $250,000
- The cost for start-up inventory (stocking with a wide range of fabrics (textiles), sewing accessories and other related merchandize) – $100,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $2.5 million to successfully set up our leggings manufacturing factory in Broken Arrow – Oklahoma. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Nancy Rowlands™ Hosiery Brand, Inc.
Nancy Rowlands™ Hosiery Brand, Inc. is a family business that is solely owned and financed by Nancy Rowlands and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $500,000 (Personal savings $400,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $2 million from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Nancy Rowlands™ Hosiery Brand, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our leggings, hosiery and sock products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Nancy Rowlands™ Hosiery Brand, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the manufacturing factory: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of industrial sewing machines and sewing equipment / tools: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of textile (fabrics), sewing accessories and related merchandize, leggings, hosiery and sock products wholesalers and other stake holders: In Progress