[NAME OF BUSINESS]

BUSINESS PLAN

[date business plan issued]

Contact: [name], CEO [or President][address]

[phone no. & fax no.][email]

[web site]

The information contained in this business plan is confidential and proprietary to [NAME OF BUSINESS] (the “Business”) and is intended only for the persons to whom it is

transmitted by the Business or its representatives. Any reproduction of this document, in whole or in part, or the divulgence of any of its contents without the prior written consent

of the Business, is prohibited.

This is a business plan. It does not imply and shall not be construed as an offering of securities. Persons interested in pursuing an investment should contact their professional

advisors.

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Business Plan Copy No. _______ 2

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by

[NAME OF BUSINESS] in this business plan is confidential. Therefore, the

undersigned reader agrees not to disclose any of such information without

the express written permission of [NAME OF BUSINESS].

It is hereby acknowledged by the undersigned that the information to be

furnished in this business plan is in all respects confidential in nature (other

than such information which is already in the public domain through other

means) and that any disclosure or use of same by the undersigned may

cause serious harm or damage to [NAME OF BUSINESS].

Upon request, this document is to be immediately returned to [NAME OF

BUSINESS].

Signature

Print Name

Date

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TABLE OF CONTENTS

Confidentiality Agreement.........................................................................................1EXECUTIVE SUMMARY..............................................................................................1

The Business.....................................................................................................................................................1Goals ............................................................................................................................................................1Target Markets..................................................................................................................................................1Competition......................................................................................................................................................1Purpose of the Business Plan............................................................................................................................1

I. BUSINESS INFORMATION..............................................................................21.1 History................................................................................................................................................21.2 Goals & Objectives............................................................................................................................21.3 Mission...............................................................................................................................................21.4 Keys to Success..................................................................................................................................21.5 Risk Factors........................................................................................................................................2

II. THE BUSINESS................................................................................................32.1 Background & Structure.....................................................................................................................32.2 Facilities & Operations.......................................................................................................................32.3 Equipment & Fixtures Required........................................................................................................32.4 Outside Consultants and Strategic Alliances.....................................................................................32.5 Suppliers.............................................................................................................................................32.6 Licenses & Permits.............................................................................................................................32.7 S.W.O.T. Analysis..............................................................................................................................4

III. DESCRIPTION OF PRODUCTS & SERVICES...................................................63.1 Products & Services...........................................................................................................................63.2 Future Plans & Opportunities.............................................................................................................6

IV. MARKET ANALYSIS & MARKETING PLAN.....................................................74.1 Industry Analysis................................................................................................................................74.2 Target Market.....................................................................................................................................74.3 Competitors........................................................................................................................................74.4 Competitive Edge...............................................................................................................................84.5 Marketing & Promotional Strategy....................................................................................................84.6 Pricing Strategy..................................................................................................................................84.7 Milestones..........................................................................................................................................9

V. ORGANIZATION OF THE BUSINESS.............................................................105.1 Management & Staffing...................................................................................................................105.2 Accounting & Bookkeeping.............................................................................................................10

VI. FINANCIAL PLAN..........................................................................................116.1 Important Assumptions....................................................................................................................116.2 Start-Up Requirements.....................................................................................................................126.3 Sales Forecast...................................................................................................................................136.4 Projected Profit and Loss.................................................................................................................136.5 Detailed Pricing Strategy.................................................................................................................146.6 Projected Cash Flow.........................................................................................................................156.7 Projected Balance Sheet...................................................................................................................166.8 Business Ratios................................................................................................................................17

APPENDIX “A” [support documents].......................................................................18

2

[NAME OF BUSINESS]BUSINESS PLAN

EXECUTIVE SUMMARY

(NOTE: The Executive Summary is the section of the Business plan in which you give an overview of the Business and highlight the key points and the purpose of your business plan.)

The Business

[NAME OF BUSINESS] (the “Business”) is a sole proprietorship owned and operated by _________________ (the “Proprietor”). The Business will provide custom tailoring and alterations to ___________ [city] and the surrounding area. The Proprietor has ____ years experience in the tailoring industry, and can provide high quality work at a faster turnaround rate than any other local competitor.

The Proprietor has targeted _________ as the opening date for the shop. The location of the Business is _____________. This location is an excellent choice, as it is located near _____________ and allows easy access and plenty of parking for potential customers.

Besides the Proprietor, the Business will employ ______ full-time employees, and will retain additional outside contractors as required.

Goals

The Business’s goals are (i) to provide high quality services to our customers; (ii) to generate a profit; and (iii) to grow at a steady and manageable rate.

Target Markets

Through the Proprietor’s ______ years in the industry, s/he has developed an established clientele who have indicated that they intend to use the Business for their tailoring needs.

The Business will target professional business people, university and college students, and families and individuals in the area, with a particular emphasis on special occasions such as weddings and graduations.

Competition

Competition in the area is limited. The Business’ competitors have failed to meet the public’s demand for high quality at a fast turnaround rate. The Business can meet this market need, and will leverage this into a successful business operation.

Purpose of the Business Plan

The purpose of the Business plan is to secure a loan in the amount of $____________________. The loan proceeds will be used to ____________________ [briefly describe, e.g. to purchase necessary equipment, to lease suitable space, etc.].

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I. BUSINESS INFORMATION

1.1 History

The Business is a new business registered on ___________ [date] to serve the tailoring and alterations needs of the __________________ area. The Business has no prior business history.

1.2 Goals & Objectives

The Business’s long-term goals are (i) to provide high quality tailoring services to our customers in an efficient and expedient manner, so as to encourage repeat business and create a loyal customer base; (ii) to generate sufficient profits to finance future growth and to provide the resources necessary to achieve the other objectives of the Business and its owner; and (iii) to grow at a steady and manageable rate.

The short-term objective is to start up the Business in time to meet the projected opening date.

1.3 Mission

The mission of the Business is to provide the ____________ area with high quality tailoring and clothing alteration services, at a reasonable price and with a faster turnaround time than our competitors. In this way, the Business will provide customer satisfaction and generate enough repeat customers to provide a stable client base and generate sufficient profits to meet the needs of the Business and the financial goals of the owner.

1.4 Keys to Success

The keys to the Business’ success are:

• marketing and networking with the public, creating a brand;• provision of high-quality reliable service in a timely manner;• developing good long-term relationships with customers and suppliers.

1.5 Risk Factors

The Business has identified the following risk factors which could hamper its success:

• problems generating visibility;• overly aggressive and debilitating actions by competitors;• changes in consumer buying trends;• [include any other risk factors]

Worst case scenarios would include:

• determining that the Business cannot support itself on an ongoing basis;• having to liquidate equipment or property to cover liabilities;• [include any other “worst case” situations]

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II. THE BUSINESS

(NOTE: Use this section to describe the history, structure, purpose, operations, management, personnel and strategic alliances of the Business. If you are starting up a new company, describe the proposed structure and management team, and set out the reasons for starting up the Business.)

2.1 Background & Structure

The Business will be a sole proprietorship, owned and operated by ___________, the Proprietor, who has ______ years experience as a tailor / seamstress. While initially a sole proprietorship, incorporation may be explored as a later option. The Business will operate under the trade name “_________”.

The tailoring and alterations business entails custom tailoring, mending and altering clothing, and sewing of non-clothing items such as draperies, bedding, linens, etc.

2.2 Facilities & Operations

The Proprietor has targeted _________ as the opening date for the shop. The location of the Business is _____________. This location is an excellent choice, as it is located near _____________ and allows easy access and plenty of parking for potential customers.

The Business will occupy approximately ________ square feet in the ________ Building. The premises will require some remodeling before the Business can open, including the construction of two dressing rooms. Remodeling is expected to take approximately ____ weeks. A blueprint of the completed premises is included in the Appendix.

Business hours will be ______ AM to _______ PM Monday to Friday, and _____ AM to _____ PM on Saturdays. The Business will be closed Sundays and holidays.

2.3 Equipment & Fixtures Required

The Business requires certain equipment, including ___ regular sewing machines, a serger, a hemming machine, dress forms, and a heavy-duty sewing machine. The Proprietor currently owns _________________ [list equipment owned], and will contribute these to the Business.

The operation will also require a cash register, a computer system, a telephone system with ___ incoming lines, fax machine, furniture for the reception area, an office desk and chair, filing cabinets, _____________ [list other equipment and furniture required].

2.4 Outside Consultants and Strategic Alliances

As the Business grows, the Proprietor will hire an outside consultant to handle the bookkeeping. Accounting will be done by ________________, Chartered Accountant(s). The Business’ legal counsel is _____________.

[Describe any strategic alliances the Business has developed, such as with suppliers, which are advantageous to the Business.]

2.5 Suppliers

The Business will obtain its sewing supplies from ________________________, a sewing supply company which the Proprietor has dealt with for _____ years.

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Office supplies will be obtained through ___________________.

2.6 Licenses & Permits

The following licenses and permits must be obtained before the Business can commence operations:

Item Obtained from Cost Estimated time required for issue

2.7 S.W.O.T. Analysis

The following S.W.O.T. analysis sets out the key strengths and weaknesses within the Business, and describes the opportunities and threats facing the Business.

Strengths

• The Proprietor has ____ years of experience, and already has a customer base of ______ customers. The competitive edge of the Business is our speedy turnaround and high quality work.

• The Proprietor has an established long-term relationship with __________, the major supplier to the Business.

• Another strength is the location of the Business, near to a number of retail clothing outlets, with plenty of parking and easy access from _____________ [name(s) of major street(s)].

• [set out any other strengths the Business has – in covering your strengths be sure to place at least as much emphasis on marketing as on your products and services, if not more]

Weaknesses

• One weakness of the Business is the Proprietor’s lack of business management experience.

• Another weakness is the fact that the Business is a start-up, and has not established a clientele nor created brand awareness in the public. The Business has very little collateral, which could hamper efforts to raise start-up capital.

• The Business will rely heavily on the Proprietor. If the Proprietor becomes ill or is injured, or otherwise hampered from working for any length of time, the Business may not recover.

• [set out any other weaknesses]

Opportunities

• There is a high demand for quality tailoring and alterations with fast turnaround in the ________ area, and there is currently no business that fills this demand. The competition cannot do the job in a timely fashion.

• If the Business proves its quality, speed and reliability to customers, this will provide growth opportunities for the future. The Business could expand its products

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and services, such as adding a pick-up and delivery system, or selling unique clothing lines or accessories.

• The Business has the opportunity to contract with other businesses, such as retailers, for outsourcing their tailoring / alterations to us.

• [set out any other opportunities]

Threats

• The Business faces a threat from its competitors, some of whom offer lower prices. Our prices reflect a higher level of quality and a faster turnaround time, however, as several of our competitors are larger established businesses, they may seek to drive customers away from our door to theirs by offering cut-rate prices.

• The financial plan must be well thought out and organized or the Business could fail. This risk is amplified due to the fact that the Proprietor will primarily run the business, and is currently lacking in business management skills.

• [set out any other threats]

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III. DESCRIPTION OF PRODUCTS & SERVICES

(NOTE: In this section, describe your current products and services, what features or offerings set your products and services apart from your competitors, R&D plans, future enhancements, production and distribution strategies. Include data on proprietary processes, patents, copyrights, etc, which make your products unique.)

3.1 Products & Services

The Business will offer the following products and services, which will initially be provided exclusively by the Business’ owner, and will be reasonably but competitively priced:

• custom tailoring for men, women and children;• clothing alterations;• sewing and alteration of draperies and curtains;• mending, patching, replacing zippers, buttons and linings;• guaranteed turnaround, at a premium price;• bulk service for groups (choir and band uniforms, sports teams, etc.)• [list other services]

The Business does not currently offer pick-up or delivery. Customers are responsible for dropping off and picking up all items. For guaranteed turnaround jobs, items must be dropped off by a specified time and date.

3.2 Future Plans & Opportunities

[discuss how you plan to expand in future, and what you see as future opportunities for the Business to expand, grow and develop]

The Business plans to add a pick-up and delivery service, for an additional fee, in future.

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IV. MARKET ANALYSIS & MARKETING PLAN

(NOTE: Use this section to identify your current market (if an existing business) and/or your target market (for new or expanding businesses), the growth potential of the market, market share, competitors and their products and services, factors which impact your business (such as seasonal sales, niche markets, etc). This section will also be where you outline your marketing plan (sales, advertising, PR).)

4.1 Industry Analysis

[you will need to do some market research to determine the state of the industry, and to give an overview of the current market and factors which could affect the market, either positively or negatively (such as consumer buying patterns, seasonal fluctuations, economic factors, etc)]

According to __________ [quote your sources], the national average annual spend on laundry and garment services in _______ [year] was approximately $_________ per household. This has increased by _____% per year over the last ___ years. Recent surveys have found that in general, women are more likely to pay for alterations than men.

The population of __________ is currently ________ permanent residents, with ____% of the population having an average household income of $__________ per year. About _______ students attend local colleges and universities.

4.2 Target Market

[again, market research is a valuable source of information for identifying and profiling the demographics of your target market, and for determining the growth factors of each market segment in your target market]

The Business will target five market segments: professional people, businesses, students, organizations, and weddings.

Professionals. This segment includes business professionals who purchase high-end clothing and who are typically in a higher income bracket. Professionals require a full range of services. Premium service rates will be offered when speed is essential. This is the segment that will provide the most steady business for custom tailoring.

Businesses. This segment is comprised of businesses that sell clothing, offer alterations, or need clothing repaired, and will include (i) competitors who need to outsource jobs due to heavy workloads, (ii) tuxedo rental shops, and (iii) high-end clothing stores that require additional help.

Students. This segment includes high school, college and university students who attend formal events and require fittings, tailoring and alterations for evening wear.

Organizations. This segment includes choirs, bands, sports teams and other groups which wear uniforms that require sewing or alterations on a regular basis.

Weddings. In _____ [year], there were ___ marriages recorded in _______. The high number of weddings provides an opportunity for substantial work in sewing and altering gowns and tuxedos for the wedding parties.

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4.3 Competitors

[list the types of competitors, identify the strengths and weaknesses of each type, name some of the major competitors in your area, and set out the market share these competitors currently own. Useful sources of information can be your local Chamber of Commerce publications, business directories and the Yellow Pages.]

The Business’ main competition will come from two principal sources, dry cleaning shops and other independent tailors / seamstresses. Some of the larger clothing outlets, such as ______________, also offer these services, but only with purchases. They are therefore not being considered as competitors, as they do not offer services to the general public.

[Describe your main competitors of both types, with strengths and weaknesses of each.]

4.4 Competitive Edge

The quality of work and the _______ years of experience that the Proprietor brings to the Business are the cornerstones of the Business’ competitive edge. Speed is also an important factor, and the fact turnaround that will be offered by the Business will set it apart from the competition.

4.5 Marketing & Promotional Strategy

The Business will put together a brochure outlining our services, for an initial mailout and distribution to target customers along with an introductory cover letter, and print stationery and business cards featuring our logo. The Business will also advertise in traditional print media, including newspapers, local business publications and Yellow Pages advertising.

Several types of promotions will be used to reach the target markets, including offering discounts for special events (Grand Opening specials, Christmas, graduations, etc.).

A powerful marketing tool for the Business will be word-of-mouth referrals from satisfied customers. This highlights the importance of consistently providing timely and high-quality service, and of communicating effectively with our customers and ensuring that we meet their needs and expectations. The Business will also utilize networking techniques to develop referrals and new customer leads. Ultimately, our best marketing strategy will be in guaranteeing customer satisfaction.

The Business will use specific marketing approaches for the target markets we have identified.

Professionals. To reach this market, the Business will buy a [quarter/half/whole] page ad in the Yellow Pages, and will also advertise in the Chamber of Commerce publication and __________ [list any other local business publications]. We will pursue strategic relationships with clothing retailers who do not offer alterations, who will refer their customers to us at the time of purchase, if alterations are required. We will also offer promotional discounts to customers referred to us by these retailers, which will be beneficial to both businesses.

Businesses. In working with other tailoring / alterations businesses, the Business will offer pick-up and delivery service, as well as guaranteed turnaround. The primary means of promotion for this target market will be discounts.

Students. Promotions will be conducted in the schools, generally in the form of handouts or fliers containing a discount coupon. The Business will also cultivate relationships with

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stores that sell formal wear, in order to have customers recommended to us following purchase of evening wear.

Organizations. Marketing aimed at this target market will take the form of mailouts setting out our special bulk rates, speedy turnaround times, and high quality service.

Weddings. Promotions for this market segment will consist of seasonal ads in the local newspapers, beginning around Easter and continuing through the summer and early fall, in order to coincide with the “wedding season”. We will also advertise at local trade shows which feature wedding apparel, and will cultivate relationships with wedding planners, offering discounts to their clients in return for a recommendation.

4.6 Pricing Strategy

[revise this section to fit your pricing strategy]In an industry where quality of work is measured by price and turnaround time, the Business’ basic price will be only ___% higher than those of the competition. This higher price is based on the added value to the customer of the quality of the work.

We will offer premium rates for guaranteed turnaround. For ___-day completion, the increased rate will be ___% above the regular rate. For next day service, the increase will be ___% over the regular rate.

A more detailed breakdown of the pricing strategy is set out in Section VI.

4.7 Milestones

The Business has identified the following key implementation milestones. It is important to accomplish each one on time and on budget.

MILESTONES Start Date

End Date Budget Manager

Business planLogo designBrochures & stationeryMailouts & initial advertisingImprove business management skillsPrepare personal financialsResearch the industryDetermine target marketResearch target market demographicsEstablish business contactsEstablish financial objectivesEstablish pricing strategyEstablish sales forecastDetermine capital needsPrepare marketing planObtain additional equipmentPrepare for openingOtherTOTAL: $

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V. ORGANIZATION OF THE BUSINESS

5.1 Management & Staffing

At the outset, the Proprietor will perform most of the customer fittings, and will also handle the day-to-day operations for the Business. Besides the Proprietor, the Business will employ ______ part-time sewing staff, and will retain additional outside contractors as required.

As the Business expands, the other sewing staff will be employed on a full-time basis.

5.2 Accounting & Bookkeeping

At the outset, the Proprietor will handle the day-to-day bookkeeping. At such time as the volume and complexity of the Business operations warrants it, a part-time or full-time bookkeeper will be hired. The accounting firm of ___________ will file quarterly income reports and year-end financial statements.

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VI. FINANCIAL PLAN

(NOTE: Use this section to describe (for existing businesses) or project (for new or expanding businesses) your company’s capital requirements, projected profits or losses for the next 1-5 years, the intended use of proceeds from your fund raising efforts, if raising money through investors.)

6.1 Important Assumptions

The projections in this Section are based on certain general assumptions, as set out in the table below.

General Assumptions Year 1 Year 2 Year 3Current Interest RateLong-term Interest RateTax RateSales on CreditOther

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6.2 Start-Up Requirements

The Business will require a start-up loan in the amount of $__________, to cover the cost of equipment, renovations, supplies and additional expenses, as set out in the table below.

START-UP EXPENSESLegal costs $###.##Stationery & office suppliesRenovationsAccounting feesInsuranceRentSuppliesEquipment & furnitureOtherTotal Start-Up Expenses

Start-Up Assets RequiredCash Balance on Starting DateOther Current AssetsTotal Current AssetsLong-term AssetsTotal AssetsTOTAL REQUIREMENTSFUNDINGOwner InvestmentOtherTotal Investment

Current LiabilitiesAccounts PayableCurrent BorrowingOther Current LiabilitiesTotal Current Liabilities

Long-term LiabilitiesTOTAL LIABILITIESLOSS AT START-UPTOTAL CAPITALTOTAL CAPITAL AND LIABILITIES

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6.3 Sales Forecast

Sales forecast figures are based on industry figures for the typical growth of a start-up tailoring / seamstress business and reflect repeat business generated through meeting customer needs. The sales forecast below shows projections for the first three years. All forecasts represent the Proprietor’s estimated weekly volumes, with an estimate of 30 average weeks ($_______/week), 11 better than average weeks (average plus __%), and 11 lower than average weeks (average less ___%).

SALES FORECAST Year 1 Year 2 Year 3Sales $ $ $

OtherTotal Sales

Direct Cost of Sales

OtherTotal Direct Cost of Sales

6.4 Projected Profit and Loss

PRO FORMA PROFIT & LOSS Year 1 Year 2 Year 3Sales $ $ $Direct Cost of SalesOtherTOTAL COST OF SALESGross MarginGross Margin %

OPERATING EXPENSESSales and Marketing and Other ExpensesOwner drawPayrollDepreciationLeased EquipmentUtilitiesInsuranceRentPayroll TaxesOtherTotal Operating ExpensesProfit before interest and taxesInterest ExpenseTaxes IncurredNet ProfitNet Profit / Sales

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6.5 Detailed Pricing Strategy

Service Price VolumeYear 1 Year 1 Year 2

Alterations: $ $ $ $Hemming:

Pants (unlined)Pants(lined)Skirt or dress (unlined)Skirt or dress (lined)Jacket or coat (unlined)Jacket or coat (lined)Other

Pants: – cuffsCuffsTaper legsShortenOther

Dress / Skirt – taper, shortenWaists:

Take in (unlined)Take in (lined)Alter bodice seams (unlined)Alter bodice seams (lined)

Sport Coats, Suit Jackets:Shorten sleevesBack seamsShorten or lengthen

Curtains:Shorten (lined)Shorten (unlined)

ZippersJeans – patchMending (small)Mending (large)ButtonsOther

Tailoring:[list items]

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6.6 Projected Cash Flow

PRO FORMA CASH FLOW Year 1 Year 2 Year 3CASH RECEIVEDCash from OperationsCash SalesCash from ReceivablesSubtotal Cash from Operations

Additional Cash ReceivedSales Tax, VAT, HST/GST ReceivedNew Current BorrowingNew Other Liabilities (interest-free)New Long-term LiabilitiesSales of Other Current AssetsSales of Long-term AssetsNew Investment ReceivedSubtotal Cash Received

EXPENDITURESExpenditures from OperationsCash SpendingPayment of Accounts PayableSubtotal Spent on Operations

Additional Cash SpentSales Tax, VAT, HST/GST Paid OutPrincipal Repayment of Current BorrowingOther Liabilities Principal RepaymentLong-term Liabilities Principal RepaymentPurchase Other Current AssetsPurchase Long-term AssetsDividendsSubtotal Cash Spent

Net Cash FlowCASH BALANCE

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6.7 Projected Balance Sheet

PRO FORMA BALANCE SHEET Year 1 Year 2 Year 3ASSETSCurrent AssetsCashInventoryOther Current AssetsTotal Current Assets

Long-term AssetsLong-term AssetsAccumulated DepreciationTotal Long-term AssetsTOTAL ASSETS

LIABILITIES AND CAPITALCurrent LiabilitiesAccounts PayableCurrent BorrowingOther Current LiabilitiesTotal Current Liabilities

Long-term LiabilitiesTOTAL LIABILITIES

CAPITALPaid-in CapitalRetained EarningsEarningsTOTAL CAPITAL

TOTAL LIABILITIES AND CAPITALNET WORTH

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6.8 Business Ratios

RATIO ANALYSIS Year 1 Year 2 Year 3 Industry Profile

Sales Growth

Percent of Total AssetsAccounts ReceivableInventoryOther Current AssetsTotal Current AssetsLong-term AssetsTOTAL ASSETSCurrent LiabilitiesLong-term LiabilitiesTOTAL LIABILITIESNET WORTH

Percent of SalesSalesGross MarginSelling, General & Administrative ExpensesAdvertising ExpensesProfit Before Interest and Taxes

Main RatiosCurrentQuickTotal Debt to Total AssetsPre-Tax Return on Net WorthPre-Tax Return on Assets

Business Vitality ProfileSales Per EmployeeSurvival Rate

Additional RatiosNet Profit MarginReturn on Equity

Activity RatiosAccounts Receivable TurnaroundCollection DaysInventory TurnaroundAccounts Payable TurnaroundPayment DaysTotal Asset Turnaround

Debt RatiosDebt to Net WorthCurrent Liabilities to Liabilities

Liquidity RatiosNet Working CapitalInterest Coverage

Additional RatiosAssets to SalesCurrent Debt / Total AssetsAcid TestSales / Net Worth

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RATIO ANALYSIS Year 1 Year 2 Year 3 Industry Profile

Dividend Payout

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APPENDIX “A”[support documents]

(NOTE: Include such things as resumes of principals, financial statements, copy of the lease, press clippings, budgets, market research, all other relevant documentation)