In 2020, the famous Italian carmaker, Ferrari, jumped into the fashion industry with a line of clothing inspired by car drivers and enthusiasts. While fashion designers pondered that move, Ferrari quietly moved on to secure spectacular sales of their introductory fashion line. Currently, Ferrari is earning 2B in revenue from their fashions and sees no reason to slow the production, given such generous returns.
For this reason alone, this fashion style is ready to grow and, if you are preparing to start a premier fashion line dedicated to car enthusiasts, use this business plan template free to fully explore the possibilities of growing your business. There are several reasons to adopt a business plan prior to starting your business and in this article, we will explore the reasons why. Let’s get started.
1. Build Your Fashion Brand Identity
The competition in the fashion industry can be fierce and, although a fashion line dedicated to car enthusiasts may not be in the primary line of sight, you’ll want to build your brand identity and protect it. To do so, include it in the business plan in several places, designating the brand as a key element of your strategic marketing plan, and trademark or copyright any elements that will need protection from theft. It will take some time to process such applications; thus, this is the time to put applications in place.
2. Perfect Your Marketing Strategy
To begin a strategic approach to marketing, compile a demographic picture of who your customers could be and what they will possibly want from your fashion line. Will customers be attached to a certain car manufacturer? Or, will they want to emphasize their allegiance to a model or make of a vehicle? Determine the broad base of potential customers. Answering these questions will allow you to aim your strategies toward your target market. From there, you can build the specifics of your aim to determine the best answers. Focus on driving new business when starting your business and doing so in the broadest format possible to increase the size of the return on your investment.
3. Create a Social Media Following
In the fashion world, the most popular and frequently cited forums are within social media. When individuals are presented with popular race car drivers wearing the clothing from your fashion line, you can be assured sales will follow. Post images across all social media and prominently display your company name, brand identity, logo, and website or ordering portal.
4. Build the Basics
With the brand identity and marketing campaigns underway, it is time to turn your attention to building the structure of your business plan. First, you’ll want to include your goals and objectives in a statement within the plan, which will become your guide and roadmap for the rest of your business choices. Next, assess any competitors within the same field, locate any special offers or unique programs they have for customers and determine how you can overcome any threats they may pose to your business. Add the information you’ve garnered regarding your customer demographic.
5. Complete the Financial Plan & Forecast
You’ll need a full financial picture for your fashion line company, complete with a balance sheet, income and expense report, future expectations of income and expenses, and a forecast of earnings to come. Include these in your business plan.
If you require funding, you may present your completed business plan to interested investors or lenders for funding. Examine any offers carefully before signing.
6. Add an Operational Plan
This will include employees and the roles and responsibilities they hold, the process of manufacturing the clothing, any patterning or special elements to be added to clothing, and a complete administrative arm of the company to assist with human resources and training. Also included will be the distribution plans for the clothing line and any import/export business that requires special tracking.
7. Collaborate with Other Fashion Houses
If you can, secure a relationship with other fashion houses to strengthen your fashion shows and model opportunities. Collaboration among houses is common and models are often a shared expense; take advantage of any offers and extend offers in kind when you can. The fashion line industry is specific and very protective; most houses are frightened (for good reason) of theft of their products, fabrics or patterns. For these reasons, ensure you protect your own fashion line and respect those of others.
These steps will assist in your creation of a business plan that is specific, thorough and compelling to investors. Although it will take time to develop your plan, start now and continue to refresh the plan as needed. As your premier fashion line for car enthusiasts grows, add to the financial projections and enjoy watching the profits grow, as well.