Blog Post
BACK TO HOME
Clothing Business – What Are The Requirements For Writing A Business Proposal

Clothing Business – What Are The Requirements For Writing A Business Proposal

Roti, Kapda Aur Makaan” are the three essentials needed for our survival and this important list “hum na bhoolenge”. The pandemic has made us even more acutely aware of what are the basic items that we require to survive and ‘kapde’ definitely makes it to that list. 

Apart from protecting and sheltering our body, clothes make us feel special. The way we dress up and what we wear every day has been found to greatly affect our work output and general mood too. And the promising figures support the essentiality of clothing and growth of clothing business too, with the share of India’s textiles and apparel exports in mercantile exports being 11% in 2019-20 and the export expected to reach $300 bn by 2024-25, and the Indian textile market expected to grow at 7.6% by 2027.

Writing a business proposal

These promising figures and observations make it evident that the clothing business will always be considered an essential and popular business, one that aspiring entrepreneurs must consider.

However, while planning to start any new business a business proposal is the obvious first step. But before writing a business proposal certain factors need to be considered and some research needs to be carried out for the business too, which is discussed here, for the clothing business.

Writing a Business Proposal

Writing a business proposal

These are the main elements that are required to start a clothing business. Let us consider each of these in detail.

  • Decide On Target Market 

The clothing business is a popular business with the presence of several competitors. Entrepreneurs must thus decide on a targeted market or specialised products that they can specialise in to withstand the competition and create a niche in the market. In order to decide on a niche product or a targeted audience, entrepreneurs must first carry out market research.

  • Market research and analysis
    • This involves a competitive market research study to understand what is the need of the audience, what trends are in demand, and how are the competitors doing business- their speciality products, pricing, marketing strategy, etc. 
    • Also, in times of this pandemic and work from home routines, a market analysis will help understand what clothing items to specialize in. While deciding the niche products or audience the study of the current times, entrepreneurs skill set and knowledge as well as the budget needs to be considered.

In today’s times, aspiring entrepreneurs can consider creating a niche in loungewear, comfort clothing, everyday wear against part and occasional wear owing to the pandemic induced lifestyle. Audience and demographic wise, entrepreneurs can create a niche by choosing to specialize, for instance, millennials and gen z wear t-shirts of the trending series or movies. Thus, an Online t-shirt store would be a good business idea. 

Also, while deciding the target market, entrepreneurs must decide whether they want to manufacture the clothing themselves or source it from wholesalers and dealers. This must be decided after a careful study of the market and the capabilities of the entrepreneur and his team.

  • Finalize Location And Operational Details

Once the product line including the target market and the type of clothing is finalized the next step before writing a business proposal for the clothing business is to finalize the operational details of the business including its location. 

The location can be decided keeping in mind whether the entrepreneur will manufacture the clothes or source them. A clothing business can be started from home too with minimal space and equipment requirements. If the business plans to retail the clothing items via a store then the shop must be located in or closer to the market to ensure greater footfall. The store must be easily accessible, have parking space or arrangement in place, and have a display window where the clothing can be attractively displayed to catch the attention of passers-by. The shop can either be leased or purchased depending on the budget available for investing in the business. 

The operational details consist of decisions such as how many employees will the business require, who will manufacture the clothes and how many tailors will be required, who will handle the accounts and day to day workings of the business,  what will be the salaries of the employees, etc. It consists of details like what equipment will be required for the business- such as sewing machines, embroidery machines, etc along with procuring of packaging materials and the quantity and costing of the same. 

Other operational details such as packaging, storing of stock, as well as shipping methods, need to be considered and noted before starting the business. 

  • Estimate Financial Requirement 

The next step to consider and estimate before writing a business proposal is the financial requirement to start the business. All the essential factors requiring funding must be considered, such as leasing or purchasing of commercial space for the business or to set up a manufacturing unit, cost of the equipment and machinery for the manufacturing, cost of raw materials and to source fabrics or clothing from wholesalers, the total salaries to be paid to the employees, cost of packaging and delivery of goods, and the day to day expenses. All these costs need to be considered and accounted for while planning to start the business.

The next step is to finalise where to procure the required capital for the business. This capital can be loaned either from banks or from non-banking financial companies (NBFCs) or from personal savings or borrowings from friends and family. A loan is however a recommended option.

  • Strategize Marketing Plan 

Another vital factor to finalise before writing a business proposal is to strategize the marketing plan. This consists of planning the various ways in which the business and its products can be advertised and marketed. In the present times of increasing popularity and usage of digital mediums and social media, marketing through them is the obvious step ahead along with traditional marketing methods. Social media marketing is also highly recommended and proven effective in these times of Covid-19 and social distancing. 

A marketing plan involves deciding which social platforms to advertise on, what content to be posted, the schedule for posting, how to engage the customers and increase the sales of the business and increase its brand name. Some entrepreneurs might be novel to the digital world and to marketing methods via these mediums, but through the online starter pack, they can get a headstart in the right direction.

Writing a business proposal

  • Create A Business Plan 

The next step after deciding the niche business segment, deciding the operational and management details, estimating the financial requirement and strategising the marketing plan, is creating the business idea proposal. Before starting any business the recommended first step is always writing a business proposal before actually starting the business. 

A business plan is a written document that outlines in detail the goals and objectives of a business and the necessary steps to be taken to achieve those goals along with the estimated timeline.

Writing a business proposal includes mentioning the following categories in the proposal-

  • Executive Summary
  • Company Description
  • Market Analysis 
  • Operations and Management Description 
  • Financial Summary
  • Marketing Plan

While writing a business proposal, along with mentioning relevant information in the above categories, entrepreneurs must also mention legal permits and registrations required to start the business, such as the business entity, whether One Person Company, Sole Proprietorship, Partnership or LLP along with Shop Act registration (if the shop is within municipal premises) and GST registration. Entrepreneurs can always get expert assistance via the Business Planning and Idea Validation services to create a detailed and thorough business proposal since the proposal is a vital document that is required while applying for a loan and for certain registrations as well.

Writing a business proposal

These are the essential requirements for writing a business proposal for the clothing business. Entrepreneurs can get detailed information as well as assistance for preparing the perfect clothing business proposal at deAsra Foundation.

In today's dynamic world, the concept of entrepreneurship has dramatically evolved, opening doors to numerous opportunities, especially for housewives looking to step into the business realm. With the...

As the calendar flips to 2024, the entrepreneurial spirit among women in India will be celebrated grandly through deAsra Foundation's Entrepreneur Excellence Awards. This prestigious event not only sp...

The Open Network for Digital Commerce, or ONDC, is setting a new precedent in the e-commerce landscape of India, offering a unique platform for sellers across the country. This innovative initiative a...

Obtaining a business loan from a bank is a crucial moment for any entrepreneur. The key to unlocking this door is a well-prepared business plan. This blog isn't just a guide for where you want to take...

Introduction In India's bustling landscape of women-owned small businesses, achieving a harmonious work-life balance is paramount for sustained success. As we commemorate International Women's Day, e...

Leave a Reply

Your email address will not be published. Required fields are marked *