1. When planning for a sewing business project, various items to be purchased have to include the business budget. The sewing enterprise is set to operate under a rented premise in the city of New York to target the official people within the city. The startup cost will be high due to the items that will be purchased to enhance the setup and the operation of the business. The list will be as follows;
Purchasing of sewing machines =$10,000
Setup, consulting and installation fee=$100
Permit and business license=$150
Rent and security deposit=$200
Business cards=$15
Advertising and promotion for starting operations=$100
Raw material (fabrics and zipper) =$400
Tools (electric iron, measuring tool, and cutting wheel) =$300
Operating cash=$100
Total; One time startup cost=$11,365.00
Monthly rent=$200
The main starting items will be sewing machines which are capable of making cuffs, shirts, and designs according to customer expectation. The next thing will be the raw material which will comprise of the zippers and the fabrics. Considering the target of this sale which will be after four months, Quality clothing enterprise will focus on developing new designs for garments, sewing formal suits and dresses and advising customers on the best office outfits.
2. In every business, it is very crucial to have a plan on how resources should be allocated to avoid misappropriation. Under this case, since Quality Clothing Enterprise is made up of shareholder, they will be the chief financier of the business. Money invested will be used to purchase the required tools and materials. In terms of human resources, the shareholders will have to agree if to hire an employee based on urgency or professionalism need. Moreover, it is their duty also to fire nonproductive employees. Every enterprise requires physical resources which mainly include supplies and money. In this business, all the material resources are indicated in the startup list above plus monthly rent which account up to $11,565. This amount will enable the company to run for the first year. In the second year, no money injected to the project. However, the profits that the business will be making will be used to run the operation of the emprise through procurement of raw material which will be according to the customers' design and preference.
3. Monthly financial plan
The cost of making one outfit= $300 (cost of material included)
The selling price of an outfit =$500
In one day the machine can make =5 outfits
Number of outfits made in one month= 30 days 5 outfits =150 outfits
Monthly cost= 150 outfits $300 cost of one outfit=$450,000
Expected sales when the outfits are sold=$500 selling price of one outfit150 monthly outfits=$750,000
Expected monthly profit=$750,000 expected sales - $450,000 monthly cost=$200,000
To break even the company will need a profit of $200,000 each month when it is making the same design of outfits which have are not customized based on the customers' instruction.
Milestones
First customer
The first customer will play a huge role since it is an indication that the business has been recognized. Moreover, the customer can be of help to business by having a suggestion or comment on the available designs.
Shareholders returns
The success of the business will be noticed when the business starts operating with its capital. Hence the investor will enjoy the profit and invest more.
Expanding business
When the business has grown, and investor see the need for expansion by setting up another branch of the company, this will improve the enterprise profitability margin
Break even
When the business calculates the profits after deducting all the expenses. This will help the business to propel.
Return customer
They are essential since they will comment on the design and what they expect from the company.
Written business plan
This will mainly help the business during the allocation of resources.
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