Fashion Entrepreneurship : Retail Business Planning

by Granger, Michele M.

• ISBN13: 9781563672330
• ISBN10: 1563672332
• Edition: CD
• Format: Paperback
• Copyright: 2002-10-01
• Publisher: Bloomsbury USA Academic

Summary

This text provides a background in entrepreneurship for apparel, accessories, textiles and home furnishings business development. In addition, the text delivers the information needed to develop a comprehensive, effective business plan. The chapters include information on merchandising, operating procedures, human resource development and financing. Further examined is the development of a fashion retail business from concept articulation to exit strategies. Included is a discussion of brick-and-mortar businesses, click companies and service firms in the apparel and soft good sectors. The last chapter of the text presents a sample business plan.

Table of Contents

Taking the Road to Entrepreneurship	1	(29)
Introduction	1	(1)
Understanding Entrepreneurship: The Age of the Entrepreneur	1	(2)
Fashion Trends Lead to Entrepreneurial Opportunities	3	(1)
The Entrepreneurial Profile	3	(1)
Do You Have What It Takes?	4	(7)
Traits of Successful Entrepreneurs	5	(3)
Less Successful Traits of Entrepreneurs	8	(1)
Assessing Yourself: Traits and Skills	8	(2)
Assessing Your Business Skills	10	(1)
Timing and Funding Availability	11	(1)
Common Myths About Entrepreneurs	12	(1)
Why Some Businesses Fail While Others Succeed	12	(2)
Development of the Business Concept: What Will the Company Be?	14	(6)
Researching the Concept	16	(2)
SWOT and MECA Analyses	18	(1)
Writing the Concept Statement	19	(1)
Why Business Planning Is Important	20	(1)
Conclusion	21	(8)
Analyzing the Product	29	(24)
Introduction	29	(1)
Defining the Product	29	(2)
Dissecting the Product	31	(1)
The Product Life Cycle	32	(3)
Introductory Stage	32	(1)
Growth Stage	33	(1)
Maturity	33	(1)
Decline Stage	33	(1)
Practice Application	34	(1)
New Uses or Images for Old Products	35	(1)
At Your Service	35	(6)
When the Product Is a Service	35	(5)
When the Product Is Tangible	40	(1)
Branding	41	(6)
Intellectual Property: Brand Names, Trademarks, and Copyrights	42	(1)
Brand Sponsorship	43	(2)
Brand Value	45	(1)
Licensing and Royalties	45	(2)
Conclusion	47	(6)
Researching the Industry and the Market	53	(20)
Introduction	53	(1)
Market Research Defined	53	(2)
Defining the Industry	55	(2)
Describing the Industry	57	(7)
Economic Sectors of the Industry	57	(2)
Industry Life Cycle	59	(1)
Economic Conditions and Cycles	59	(1)
Seasonality and the Fashion Industry	59	(2)
Impact of Technology	61	(1)
Supply and Distribution Channels	61	(1)
Financial Patterns	62	(1)
Competition	62	(1)
The Consumer	63	(1)
Regional Market Feasibility Study	64	(3)
The Regional Consumer	65	(1)
The Regional Location	66	(1)
The Regional Competition	67	(1)
Conclusion	67	(6)
Strategic Planning From Entry to Exit	73	(20)
Introduction	73	(1)
Entry Strategies	73	(7)
Opening a New Business	74	(1)
Purchasing a Franchise Operation	74	(4)
Acquiring an Existing Business	78	(2)
Exit Strategies	80	(9)
Management Succession	82	(1)
Selling the Business to Outsiders	82	(1)
Selling the Business to Insiders	83	(1)
Liquidating the Business	83	(1)
The Process of Valuation	84	(1)
What Is the Business Worth?---Valuation Methods	85	(2)
Offering Memorandum	87	(1)
Looking for Buyers	88	(1)
Structuring the Sale	88	(1)
Negotiating the Sale	88	(1)
Conclusion	89	(4)
Finding a Location for the Business	93	(26)
Introduction	93	(1)
The Location Hierarchy: Region to State to City to Site	94	(3)
The Region	94	(1)
The State	95	(1)
The City	95	(2)
The Site	97	(1)
Location Factors	97	(3)
National Retail Traffic Index	98	(1)
Location Checklist	98	(2)
Finances and Location	100	(3)
Estimating Location Costs	100	(3)
Monthly Expenses Related to Location	103	(1)
Build, Buy, or Lease?	103	(3)
Building a Facility	103	(1)
Buying a Facility	104	(1)
Leasing a Facility	104	(2)
Location and the Business Plan	106	(1)
Designing Effective Selling Space	107	(7)
The Exterior	107	(1)
The Interior	108	(6)
Conclusion	114	(5)
Becoming an E-Trepreneur	119	(30)
Jana Hawley
Introduction	119	(1)
History and Future Projections	119	(2)
Web Demographics	121	(2)
Benefits and Limitations of Going On-line	123	(1)
Building a Business Plan for E-Commerce	123	(4)
E-Models	127	(8)
Storefront Model	127	(1)
E-Catalog Model	128	(1)
Portal Model	128	(1)
Distributed Storefront Model	128	(2)
Affiliate Model	130	(1)
Auction Model	130	(2)
On-line Shopping Malls Model	132	(1)
Content-Attraction Model	133	(1)
Lowest-Price Model	133	(1)
Click-and-Mortar Model	134	(1)
Members-Only Model	135	(1)
Customer Relationship Management	135	(2)
Security and Privacy	137	(1)
Promotion and Marketing	138	(5)
Brand Recognition	138	(1)
The Domain Name	139	(1)
Search Engines	140	(1)
Hyperlinks	141	(1)
Print Web Address on All Communication Materials	141	(1)
Publicity and Promotional Efforts	141	(2)
E-Commerce Challenges and Concerns	143	(1)
Conclusion	143	(6)
A Strategy for Penetrating the Market	149	(24)
Introduction	149	(1)
The Role of the Marketing Strategy	149	(1)
Market Variables: The Ps of Marketing	150	(19)
Product	151	(1)
Place	151	(1)
Price	152	(5)
Promotion	157	(9)
People: Exceptional Customer Service	166	(3)
Conclusion	169	(4)
Exploring Management	173	(26)
Introduction	173	(1)
The Management Team	173	(10)
Building an Organizational Culture	175	(1)
Leadership	175	(3)
Open-Book Management	178	(3)
Effective Communication	181	(1)
Technology and Communication	182	(1)
Intrapreneurship	183	(1)
Organizational Structure	183	(5)
Determining Key Roles and Tasks	184	(2)
Creating Job Descriptions	186	(1)
Creating the Organizational Chart	187	(1)
Hiring the Right Employees	188	(2)
Sources for Recruiting Employees	188	(1)
The Job Interview	189	(1)
Selecting the Advisory Team	190	(1)
Motivating Employees	191	(2)
The Compensation Package	193	(1)
Conclusion	194	(5)
Merchandise Planning	199	(30)
Introduction	199	(1)
The Role of the Buyer	199	(1)
The Resident Buying Office	200	(1)
The Buying and Merchandising Process	201	(20)
Sources for Effective Buying	201	(2)
Market Week	203	(1)
Resource Selection	204	(5)
Managing Fashion Merchandise	209	(4)
Sales Forecasting Factors	213	(1)
Planning the Merchandise Assortment	213	(3)
Preparing the Open to Buy	216	(1)
The Markdown Policy	217	(1)
Markup	218	(2)
Pricing Strategies for Fashion Merchandise	220	(1)
Visual Merchandising and the Buyer	221	(1)
Sales Promotion and the Buyer	221	(1)
Sales Supporting Services and the Buyer	221	(1)
The Buyer's Responsibility for Profits	221	(1)
Stockturn	222	(1)
Stock-to-Sales Ratio	222	(1)
Buying for Nonstore Retail Operations	222	(2)
Conclusion	224	(5)
Selecting a Business Entity	229	(20)
Introduction	229	(1)
Considerations in Choosing a Legal Entity	229	(1)
The Sole Proprietorship	230	(2)
Advantages of a Sole Proprietorship	230	(1)
Disadvantages of a Sole Proprietorship	231	(1)
The Partnership	232	(4)
Advantages of a Partnership	234	(1)
Disadvantages of a Partnership	235	(1)
Limited Partnerships	236	(1)
The Corporation	236	(5)
Forming a Corporation	237	(1)
Operating a Corporation	238	(1)
Different Roles: Shareholders, Directors, and Officers	239	(1)
Issuing Stock	239	(1)
Annual and Other Regular Meetings	240	(1)
Reporting Requirements	240	(1)
Advantages of a Corporation	240	(1)
Disadvantages of a Corporation	241	(1)
Alternative Forms of Ownership	241	(2)
The Limited Liability Corporation	242	(1)
The S-Corporation	242	(1)
Selecting a Lawyer	243	(1)
Selecting an Accountant	243	(1)
Conclusion	243	(6)
Creating and Understanding the Financial Plan	249	(36)
Introduction	249	(1)
The Importance of the Financial Picture	249	(1)
The Financial Statements	250	(17)
The Cash Flow Statement	251	(8)
The Income Statement	259	(3)
The Balance Sheet	262	(4)
Liabilities and Owner's Equity	266	(1)
The Assumptions	266	(1)
Analyzing the Financials	267	(7)
Understanding Key Financial Ratios	268	(4)
The Break-Even Point	272	(2)
Understanding Cash Flow	274	(1)
Accessing Capital	274	(6)
Debt Financing	275	(3)
The Mind-set of the Banker	278	(1)
Equity Financing	279	(1)
Conclusion	280	(5)
Developing Operating and Control Systems	285	(24)
Introduction	285	(1)
Operations and the Facility	285	(3)
Space Allocation	286	(1)
Staff Efficiency	286	(1)
Customer Mobility	286	(1)
Hours of Operation	287	(1)
Lease and Improvements	287	(1)
Utilities and Maintenance	287	(1)
Security	287	(1)
Operations and the Merchandise	288	(3)
Receiving Goods	288	(1)
Marking Goods	288	(1)
Placing Merchandise on the Sales Floor	288	(2)
Paying the Suppliers	290	(1)
Tracking Merchandise	290	(1)
Taking Markdowns	290	(1)
Returning Goods to the Vendor	291	(1)
Operations and the Employees	291	(3)
Training Employees	291	(1)
Compensation and Incentives	292	(2)
Reprimands and Terminations	294	(1)
Communication with Employees	294	(1)
Operations and the Customer	294	(4)
Approaching and Assisting the Customer	294	(1)
Writing Up the Sale---Transaction Flow	295	(1)
Handling Returns	296	(1)
Following Up on Sales	296	(1)
Handling Customer Complaints	296	(2)
Inventory and Operations	298	(2)
Methods of Inventory Management	298	(1)
Inventory Control	298	(1)
Merchandise Fulfillment and Customer Needs	299	(1)
Research and Development	300	(1)
Operations and the Computer	300	(1)
Conclusion	301	(8)
Planning Growth Strategies	309	(16)
Introduction	309	(1)
Strategic Growth Planning	309	(3)
Strategies for Facing New Competition	310	(1)
Strategies for Becoming a Market Leader	310	(1)
Strategies for Creating a Market Niche	311	(1)
Going Global as a Growth Strategy	312	(5)
Avenues to Global Growth	313	(3)
Entry Strategies to Global Avenues	316	(1)
Opening the Doors to Global Growth	316	(1)
Planning for Growth	317	(2)
New Offerings to the Market	318	(1)
Steps to Planning the Growth Stage	319	(1)
Conclusion	319	(6)
Constructing the Business Plan--Creating the Roadmap	325	(16)
Introduction	325	(1)
The Reasons for Developing a Business Plan	325	(2)
Definition of a Business Plan	327	(1)
Analysis of the Business Plan	327	(1)
How the Plan Takes Shape---Components of the Business Plan	328	(10)
Cover Letter	328	(1)
Cover Page	329	(1)
Table of Contents	329	(1)
Executive Summary	329	(1)
Product/Service Plan	330	(1)
Management and Organization Plan	331	(2)
Marketing Plan	333	(2)
Location	335	(1)
Merchandising Plan	336	(1)
Financial Plan	336	(1)
Operating and Control Systems	336	(2)
Growth Plan	338	(1)
Appendix	338	(1)
Tips for Writing a Good Business Plan	338	(1)
Packaging the Business Plan	339	(1)
Conclusion	339	(2)
Sample Business Plan	341	(32)
Appendix A: Resources for the Fashion Retail Entrepreneur	373	(2)
Glossary of Terms	375	(13)
Index	388	(6)
CD-ROM Instructions	394