Business Plan of a T Shirt Company by mqm16808

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									SEIZE DISEASE




                  Business Plan
                        Seize Disease Co.
                         Erick Molina, Jeff Reed,




                                                    2010




            801 N TEXAS BLVD DENTON, TX 76201
Business Plan – Tees for Disease                                                                                                                2010



       TABLE OF CONTENTS
       1.     Executive Summary ................................................................................................................. 4
            1.1    Objectives............................................................................................................................ 4
            1.2    Mission .................................................................................................................................. 4
            1.3    Keys to Success ................................................................................................................... 4
       2.     Company Summary ................................................................................................................ 4
            2.1    Company History / Ownership ......................................................................................... 4
            2.2    Company Start-Up Plan .................................................................................................... 4
            2.3    Company Locations and Facilities .................................................................................. 5
       3.     Products ..................................................................................................................................... 5
            3.1    Product Description ........................................................................................................... 5
            3.2    Competitive Description ................................................................................................... 5
            3.3    Sales Literature .................................................................................................................... 5
            3.4    Sourcing ............................................................................................................................... 6
            3.5    Technology .......................................................................................................................... 6
            3.6    Future Products ................................................................................................................... 6
       4.     Market Analysis ......................................................................................................................... 6
            4.1    Market Segmentation........................................................................................................ 6
            4.2    Target market Segment Strategy .................................................................................... 7
              4.2.1 Market Needs ................................................................................................................ 7
              4.2.2 Market Trends ................................................................................................................ 8
              4.2.3 Market Growth .............................................................................................................. 8
            4.3    Industry Analysis .................................................................................................................. 8
              4.3.1 Industry Participants ..................................................................................................... 8
              4.3.2 Distribution Patterns ...................................................................................................... 8
              4.3.3 Factors of Competition................................................................................................ 8
              4.3.4 Main Competitors ......................................................................................................... 8
       5.     Strategy and Implementation ............................................................................................... 9
Business Plan – Tees for Disease                                                                                                            2010



            5.1   Strategy Pyramids ............................................................................................................... 9
            5.2   Value Proposition................................................................................................................ 9
            5.3   Competitive Edge ............................................................................................................ 10
            5.4   Marketing Strategy ........................................................................................................... 10
              5.4.1 Positioning Statement ................................................................................................ 10
              5.4.2 Pricing Strategy ........................................................................................................... 10
              5.4.3 Promotion Strategy..................................................................................................... 10
              5.4.4 Marketing Programs ................................................................................................... 10
            5.5   Sales Strategy .................................................................................................................... 10
              5.5.1 Sales Forecast.............................................................................................................. 10
              5.5.2 Sales Programs ............................................................................................................ 10
            5.6   Milestones .......................................................................................................................... 10
       6.     Management Summary........................................................................................................ 11
            6.1   Organizational Structure ................................................................................................. 11
            6.2   Management Team......................................................................................................... 11
            6.3   Management Team Gaps .............................................................................................. 12
            6.4   Personnel Plan ................................................................................................................... 12
       7. Financial Plan ........................................................................................................................... 12
            7.1   Important Assumptions .................................................................................................... 12
            7.2   Key Financial Indicators .................................................................................................. 12
            7.3   Breakeven Analysis........................................................................................................... 13
            7.4   Projected Profit and Loss ................................................................................................. 13
            7.5   Projected Cash Flow ........................................................................................................ 13
            7.6   Projected Balance Sheet ................................................................................................ 13
            7.7   Business Ratios ................................................................................................................... 14
            7.8   Long-Term Plan ................................................................................................................. 14
Business Plan – Tees for Disease                                                         2010



       1. EXECUTIVE SUMMARY
       Our team Seize Disease has a goal to help the fight against HIV/AIDS. We plan on
       reaching that goal by developing an e-commerce site that will provide a method for
       people across the world to purchase t-shirts that support our fight against HIV/AIDS.
       Seize Disease will donate 100% of every dollar receive from the sale of each t-shirt to the
       United Nations.


       1.1       Objectives
       Our objective is to render as much aid as possible while expending as few dollars as
       possible with the resources available.

       1.2       Mission
       Our mission is to have halted by 2015 and begun to reverse the spread of HIV/AIDS

       1.3       Keys to Success
                To have a solid business plan foundation
                Clear vision
                Determine to reach our goal
                Provide a good product for a good cause



       2. COMPANY SUMMARY
       Seize Disease is an online retail company that sells t-shirts to support the fight again
       AIDS. Its efforts will raise awareness of the HIV/AIDS epidemic around the world and help
       reach the United Nation’s End Poverty 2015 Millennium Development Goal to combat
       HIV/AIDS, Malaria, and other diseases.

       2.1       Company History / Ownership
       Seize Disease was founded is owned by Jeff Reed in 2004. When his brother passed
       away from complications of AIDS he decided to start a company to fight against the
       disease. Seize Disease is currently operated under the management of team Seize
       Disease.

       2.2       Company Start-Up Plan
       Seize Disease start-up costs will be minimal or low in comparison to most start-up
       companies. Since we will not be a traditional brick and mortar our costs will be mostly
Business Plan – Tees for Disease                                                           2010



       equipment, development and infrastructure costs.



                                         Start-Up Expenses
       Web hosting                                                                         $1,500.00
       Development costs                                                                  $10,000.00
       Manufacturing expenses                                                            $150,000.00
       Legal expenses                                                                      $5,000.00
                                                                                  Total: $166,500.00



       2.3       Company Locations and Facilities
       Seize Disease has one small office located in Dallas, TX where we team Seize Disease
       meets and manages the company/site. This office is a small facility of 500 sqft; this
       minimizes overhead costs, such as utility bills, etc.



       3.        PRODUCTS
       3.1       Product Description
       Seize Disease provides a variety of custom designed t-shirts for all ages at an affordable
       price of $10 per t-shirt. All t-shirts will be sold through our e-commerce site. We will sell
       and market our product predominantly online. We expect and hope to sell our product
       to millions of customers around the world.

       3.2       Competitive Description
       Our customer base will be broad. We will have many designs of t-shirts for all ages and
       sizes. Being a non-profit organization we will not have any competitors. Our goal is to sell
       as many t-shirts as possible to then donate 100% of those earnings to fight/reverse the
       spread of HIV/AIDS.

       3.3       Sales Literature
       Seize Disease plans not have any hard copy sale literature but do all marketing and
       sales online. We believe this will minimize costs and be more efficient. Below is a list
       online or electronic means of promoting our mission:

                E-Commerce Website
                Facebook
Business Plan – Tees for Disease                                                              2010



                Twitter
                MySpace
                Search Engine Optimization
                E-Newsletters

       3.4       Sourcing
       Seize Disease will partner with a clothing manufacture that supports their mission and is
       willing to enter in an agreement to make the t-shirts for a cost of $2 (or less) per t-shirt.
       Seize Disease will also request donations from organizations and government agencies
       (such as Center Of Disease Control) for to support the e-commerce site and staff.

       3.5       Technology
       Seize Disease will rely highly on technology since all of their sales be through their e-
       commerce site. The e-commerce site will be developed Visual Studio 2008 Professional
       and coded in C#. The software below will require for the development and
       maintenance of the site:

                Visual Studio 2008 Professional
                Microsoft SQL Server 2005
                Microsoft Server 2003 (IIS)
                SSL Certificate

       3.6       Future Products
       Seize Disease mission and plan is simple. There are no future plans to sell other products
       besides t-shirts at this time.



       4.        MARKET ANALYSIS
       4.1       Market Segmentation
       The t-shirt industry as a whole touches almost every market segment defined with
       marketing analysis. Therefore, we will attempt to cover as many of the segments as we
       possibly can. Initially we will introduce 10 styles of t-shirts that will entice various market
       segments from toddlers to teens to adults. Within each of these three age groups we
       will offer male, female, and gender neutral versions of each t-shirt.
Business Plan – Tees for Disease                                                           2010



       4.2   Target market Segment Strategy
       Although the t-shirt industry touches all walks of life, team Seize Disease feels it is
       important to specifically target teenagers within the t-shirt marketplace. Since Seize
       Disease will be primarily operated via an e-commerce based website it only makes
       since to target the market which utilizes the World Wide Web the most frequently. Since
       most teenagers enjoy shopping over the internet and are trendsetters, we will target this
       subgroup the most aggressively. A recent survey conducted at 4 different malls in
       Dallas, Texas, encompassing 4,000 customers was taken in attempt to discover how
       many people wear t-shirts and what their ages were. Here are the numbers.


                            Percentage of t-shirt wearers
             90
             80
             70
             60
             50
             40                                                           Percentage of t-shirt
             30                                                           wearers

             20
             10
             0
                  Under 25 years        25-40            over 40
                       old




              4.2.1 Market Needs
              The teen target market primarily has a need to be encompassed directly within
              the latest trends and fashionable attires. Therefore, Seize Disease will focus on
              creating a hip line of t-shirts to target the teen desire to be up to date with the
              latest fashions.
Business Plan – Tees for Disease                                                        2010



             4.2.2 Market Trends
             After the devastating earthquake that Haiti has had to endure, today’s teens
             have witnessed first-hand what it means to help out your fellow fallen man. With
             the spirit of the Good Samaritan increasing in its prominences, today’s teens will
             be looking for other ways to help out across the globe. Therefore, Seize Disease
             will utilize this trend of giving and put it towards a good cause.

             4.2.3 Market Growth
             With the overwhelming major of our society leaning towards more casual dress
             patterns, and people constantly feeling the need to express themselves through
             t-shirts, the t-shirt market has a positive future and will continue to grow. The
             Dallas, Texas mall survey involving 4,000 random people calculated that 60-65%
             of mall customers were wearing t-shirts. That number should continue to climb.

       4.3   Industry Analysis

             4.3.1 Industry Participants
             Selling t-shirts has become big business and it’s a growing industry on the Internet
             where there are already thousands of shops and websites where you can
             purchase almost any t-shirt style imaginable. Needless to say the t-shirt business
             online has turned into a fierce competitive battle.

             4.3.2 Distribution Patterns
             Seize Disease will follow the already successful industry distribution model that
             has laid the ground work for many of the successful t-shirt companies today. This
             pattern will entail the systematic approach of design, print, and ship.

             4.3.3 Factors of Competition
             The main factors of competition will be price, shipping times, manufacturing
             costs, distribution costs, and long standing t-shirt company corporations.

             4.3.4 Main Competitors
             Cafepress, Snorg Tees, Zazzle, and Busted Tees are all successful companies that
             have each had their moments in the sun. But as general rule the competition is
             so varied and widely dispersed that getting a definite grasp on industry leaders
             can be somewhat of a crapshoot. However, we do not anticipate those pesky t-
             shirt launchers to be a part of this group.
Business Plan – Tees for Disease                                                              2010



       5.        STRATEGY AND IMPLEMENTATION
       5.1       Strategy Pyramids


                Strategy: To sell t-shirts in various sizes and designs to as many customers as
                 possible to maximize our earnings and donate 100% to the UN’s AIDS awareness
                 program.

                Tactics: We will advertize online and on government sites, will distribute
                 pamphlets, and will keep a flat rate for all over designs and sizes.



                Program: Website development, Donation, email.




                                              Strategy



                                            Tactics


                                         Programs

       5.2       Value Proposition
       we are a non-profit company. Our goal is to sell as many t-shirts so that we can donate
       100% of our earning to UN’s aids awareness program.
Business Plan – Tees for Disease                                                                2010



       5.3   Competitive Edge
       We are not competing within our market as we are a non-profit company but our
       strategy is to sell as many t-shirts to help solve our goal. For this all our t-shirts, any design
       and any size, all cost the same.

       5.4   Marketing Strategy

              5.4.1 Positioning Statement
              Positioning Statement: To sell as many t-shirts so that we can donate 100% of our
              earning for a UN’s cause to help prevent AIDS.

              5.4.2 Pricing Strategy
              Just to make our t-shirts affordable so that any one can buy it, we have kept a
              flat rate of $10/each, any design and any size.

              5.4.3 Promotion Strategy
              Being a non-profit organization we are not offering much promotions. We will be
              shipping it for free to any part of the world and might give discount price on very
              large orders of 100 t-shirts or more.

              5.4.4 Marketing Programs
              We plan to market our website online. We will use online social sites like
              facebook, twitter and will also use google search engine. Will also publish our
              pamphlets in government organizations like UN.

       5.5   Sales Strategy

              5.5.1 Sales Forecast
              We forecast our first quarterly sale to be somewhere around $80,000 and there
              by increasing as more people will become aware of our goals and will buy t-shirs
              form us.

              5.5.2 Sales Programs
              Will be done online through our e-commerce website. Some big orders can be
              places via phone as well.

       5.6   Milestones
       We hope to complete all of our milestones (listed below) as schedule but have
       prepared a contingency plan for unexpected issues.
Business Plan – Tees for Disease                                                     2010



                 Business Proposal
                 Website Design/ Documentation Prototype
                 Website Prototype
                 Website Documentation Final Draft
                 Final Site Version
                 Website Presentation



       6.        MANAGEMENT SUMMARY
       6.1       Organizational Structure



             Founder / CEO                                    Jeff Reed




                                               Snehansh                    Rojan
                 CFO & CMO                        Sati                     Thapa



                    CIO &
                                       Erick                              Graphics
                 Development          Molina
                                                        Developer
                                                                          Designer
                    TEAM


       6.2       Management Team


             Team Seize Disease
             Jeff Reed                  Founder & CEO
             Snehansh Sati              Chief Financial Officer
             Erick Molina               Chief Information Officer
             Rojan Thapa                Chief Marketing Officer
Business Plan – Tees for Disease                                                           2010



       6.3        Management Team Gaps
       Seize Disease is currently seeking developers and graphics designers for the design and
       maintenance of the e-commerce site.

       6.4        Personnel Plan
       The expected pay for the open positions are listed in the table below:

                   Position Title                   Salary                   Job Description
                                                                         Design, develop, deploy
                   Sr. Developer                   $60,000             and maintain e-commerce
                                                                                   site.
                                                                          Create all company
                                                                       graphics art logos. Assist in
                 Graphics Designer                 $50,000              the design, development
                                                                         and maintenance of e-
                                                                             commerce site.




       7. FINANCIAL PLAN
       7.1        Important Assumptions
       Going forward Seize Disease will make the following assumptions:

                        Donations: We assume that we will have donators support our mission to
                         help satisfy overhead expenses such as, storage and shipping costs.
                        Manufacture’s agreement: we assume the manufacture will honor their
                         agreement and not break their commitment.
                        Demand: Since our product is not a “demand” from the customer instead
                         more of a charitable purchase, we rely on the notion that people will see
                         and agree with our mission to fight HIV/AIDS.

       7.2        Key Financial Indicators
       Seize Disease is a non-profit organization so our financial indicators are the following:

                 Sales
                 Expenses
                 Assets
Business Plan – Tees for Disease                                                         2010



                Funds provided to the UN

       7.3       Breakeven Analysis
       As a nonprofit, Seize Disease is not profit motivated. Our objective is to render as much
       aid as possible while expending as few dollars as possible with the resources available.
       Ideally, the goal is to break even; revenues should equal costs.

       7.4       Projected Profit and Loss
       Because we will donate 100% of our earnings, we will not generate a profit. We want to
       avoid making at profit for it may prevent us from not receiving donations/funding
       because contributors will feel their support is not needed.

       7.5       Projected Cash Flow
                                          Cash Flow Summary
              Month              Opening Balance        Cash Flow              Ending Balance
       April                         112,887             -12,657                   110,675
       May                           110,675               5,323                   115,888
       June                          115,888               4,898                   120,111
       July                          120,111              -2,342                   118,732
       August                        118,732               7,876                   125,321
       September                     125,321               2,356                   127,876


       7.6       Projected Balance Sheet


                                               Seize Disease
                                              Balance Sheet
                                       April 1, 2010 to May 1, 2011
                 Assets
                        Cash                                   $                 55,000.00
                        Inventory                              $                 98,765.00
                        Accounts Receivable                    $                 13,565.00
                 Total Assets                                  $                124,765.00

                 Liablities
                         Accounts Payable                      $                  3,676.00
                         Notes Payable
                         Payroll
                 Total Liabilities                             $                  3,676.00
Business Plan – Tees for Disease                                                    2010



              Equity
                      Owner’s equity                            $          -
              Total Equity
              Total Liabilities & Equities                      $          121,565.00


       7.7   Business Ratios


       • Gross Margin = (Net Income – Cost of Goods Sold) / Net Sales

       • Profit Margin = Net Income / Net Sales

       • Return on Investment = Net Income / Average Owners’ Equity

       • Current Ratio = Current Assets / Current Liabilities

       7.8   Long-Term Plan
       Our goal is to Have halted by 2015 and begun to reverse the spread of HIV/AIDS. We
       plan to have an impact worldwide and continue to fight HIV/AIDS past 2015.

								
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