Introduction
The business I’m creating is called The Clothes Shack. It will be an up to date and stylish shop which will be based in the centre of Cambridge’s busy shopping centre. The main aim is to sell clothes and accessories which are up to date with the latest fashion to the public in order for me to create a profit. My business will be set up as a partnership, which will include myself and my sister.

Initial Funding
The opening of the shop will be funded through the savings which we both have which is a total of £23,000 and then the £10,000 we inherited from our Granddad between us. As this would not be enough to cover our costs we will apply for a mortgage loan with our local bank and ask for £237,000 for the buying of the unit, which we plan to repay monthly.

Location
We will set up the shop in the middle of one of Cambridge’s main shopping centres, the Lion Yard. We have chosen this location as other well known fashion shops such as Topshop and Topman, Newlook and River Island, etc. are also set up here and have similar target markets. However we have to be careful as they will become our new competitors and they are well-known so they have an advantage. With this location it should help to entice the customers into the shop as it’s the location which they are likely to be shopping in as they will in the shops opposite (RiverIsland and Topshop etc). Also the shops unit is on the ground floor instead of the 1st floor. This is an advantage as there are more shoppers passing by as there are more shops on the ground floor meaning they are more likely to notice the shop and come in and take a look around.

The unit is a ground floor unit and has remote storage space. The remote storage space allows us somewhere to hold stock and depending on size maybe even a staff room where refreshments for the staff will be.

Target Market
The target market for our shop will be students. This will mean that the items will have to be reasonably priced as students live on tight budgets and therefore won’t want to pay any more than necessary. We will also accept student discount cards giving them 15% off all items in store, not including sale items as they are already reduced. We will also have promotional discounts such as if you spend £75 in store, get 10% off your next purchase. Our items will include tops, trousers, dresses, jackets, coats, shoes, bags, jewellery, scarves, etc. There will be products for all occasions of a student life, from going clubbing in fresher’s weeks to their graduation outfits.

Advertising
Advertising will need to be significant if the shop is to become a success. The shop front will be all glass with the shop logo and name on a light up sign above the glass windows and doors. The entrance to the shop will be in the middle of two glass windows, on either side of the door will be mannequins dressed in the shop window modelling some of The Clothes Shack’s best sellers and top picks. However one side will be male and the other side will be female; this shows the customers that it sells both female and male clothing and invites them into the shop.

Again advertising the new business will be critical for it to have a successful start. Social media will be key in this. There will be a page set up on Facebook with information about the new shop where customers can like and rate the page. The Facebook page will be linked in with the Twitter and Instagram page. We will also have the advert banners on the side of the Facebook newsfeed allowing the customer to click the link which will lead them straight to the website. Even though these adverts only pop up if you are on a computer. There will also be a Twitter page allowing people to tweet about the shop and be able to keep on top of whatever is happening with the shop. We will also have an Instagram account posting pictures of mannequins, staff and customers in the latest clothes. Giving customers visual pictures of what some of the clothes look like on and an idea of what they could wear with various items. As well as having pictures of the clothes up on the Instagram page we will also promote sales and discounts etc.

As well as having the advert banners on the side of Facebook newsfeeds we will pay for it also to be on other websites. Such as Outlook, Google, etc. The banners will advertise numerous things. Such as if there’s a sale it will give important details about the sale for example some of the top picks, whether it’s just in store, online or both, and how much discount is being taken off. It will also display some of the items the customer may have looked at recently on the website. This creates a personal feeling to the customer. Creating a personal feeling to the customer is important as it shows that we care and that we’re there to provide them of products they want.

Online and social media has an impact on customers. Generally it creates more interest and sales for the business. For instance when someone likes the Facebook page, it comes up on their friend’s newsfeed. Their friends would then click on the link which would direct them to our Facebook page, where relevant information would be about the shop. This is called social media marketing as it acts as word of mouth. Meaning the information is being put out there and it’s getting repeated, therefore more business is being brought to the shop.

In addition when the shop is first set up and running we will have a TV campaign. Advertising mainly the web shop, this is because if we advertise the shop it can only be aired in the Cambridgeshire area. This is because people in Scotland for example aren’t going to come all the way down the Cambridge to check out the new shop and so it would just be a waste of money and time. Whereas if we advertise the online shop it can be aired all over the UK as it won’t matter where the customer is located as the courier can deliver to their specified address. However in the Cambridgeshire area we will also add a short part of the advertisement which informs the viewer of the new shop opening in the Lion Yard in Cambridge. If the TV advert is successful and generates enough business for the shop we will consider continuing to advertise the shop during peak season such as Christmas.

Besides the TV advert we will dress the shop window accordingly. For instance when its winter jumpers and coats will be displayed and when there are sales on in the shop, there will be posters displayed in the shop window informing the customers of what the sales about etc. However the posters shouldn’t block out the mannequins completely. Other wise it doesn’t look very inviting. We will also have window display accessories so it creates a tasteful scene and it isn’t just plain boring mannequins dressed up in the shop window. Also around the shop there will be mannequins dotted around displaying more clothes and also posters on the shop wall. This is so it can show customers some of the clothes we have available to them. Also it gives them ideas for what they could wear with products they may have picked up or similar ones.

How the Shop Will Be Set-Up
Inside the shop will have a sophisticated and stylish feel to it. With the clothes in collection sections, this will subtly suggest to customers what they could wear with their pick. We will also have a denim section in the shop for both sexes’, stocking from black skinny jeans to navy blue high top jeans and denim jackets. This however will be towards the back of the shop as it will always be there and we want to display new collections as and when they come and seasons change. The shop will have 2 tills, one in the women’s section and the other in the males. Beside the till in the women’s section will be make-up products such as The Clothes Rack’s own branded nail varnish, eye shadow, lipstick, mascara and eye-liner. This makes it more convenient for the customers and also is a great place for them to be set-up as when they are waiting to be served they pick up things and look at them and may make that extra purchase. Also we will have two females and males working on the shop floor. Two on tills (female on till in the women’s section and the male in the men’s section) and the others keeping the shop floor tidy and changing rooms running, whilst giving advice to customers who need it. Reason being each customer has the option for both female and male advice.

The clothes rails will be full and neat. The shop floor assistants will be in charge of making sure this is kept up, the clothes will also be in order of size. Starting from smallest and getting bigger, so customers can easily find their size. Another important aspect to the shop is music, there will be music playing in the background as it creates a contemporary feel to the shop, the music will be modern hip hop as it fits in nicely with the modern clothes which will be on sale.

To give the customers an excellent shopping experience we will be using cardboard bags instead of plastic ones. It will have the shop’s name on it and it will be black if it’s from the men’s section and then white if it’s from the women’s. The bags will also create advertisement of the shop as other shoppers may catch the name of the bag and look it up on-line of find the store. Also if we use cardboard bags it is much better for the environment. As cardboard disintegrates over time. Whereas plastic bags don’t, instead they end up just littering our environment which can sometimes cause animals to suffer.
Shop floor plan:

Employees
The employee’s will wear clothes from the shop, however they will have to buy these themselves but they will receive a staff discount of 35% off all items within the shop. However they must have a tidy appearance. This gives the shop a chilled and laid back feeling creating a happy and relaxed atmosphere for the customers yet it still provides a smart service. Whilst modelling some of the clothes in the shop. The service provided by the shop assistants is crucial. If they are not proving a helpful and friendly service with smiles on their faces customers aren’t going to feel welcome or happy with their service. This would reflect badly on the shop and would leave customers unhappy with the service provided, leaving it unlikely for them to return again. Instead we want happy customers who are very satisfied with the service provided in the shop with both the clothes and sales assistants. Hopefully then the customers will spread news about the shop to their friends and family, spreading the word that way.

Online Website
The Clothes Rack will also have an online website. Allowing the customers to make purchases online at the convenience of their own home. It also gives them the chance to check out or purchase new items from the latest collections. One of the main aspects of the website will be a virtual changing room. As well as pictures of the clothes being modelled. By this I mean a virtual model which you can alter to a similar body shape to you, including hair colour/style and colour of skin. This will allow the customer to customize the virtual model to see whether the clothes they are interested in buying suits there figure, colour of skin, etc. Although it will look slightly different on the customer in person, however it gives them an idea of how it may look on them and saves them from returning an item which may not look as flattering on them as they had hoped. Furthermore it allows them to order items they have liked in store which don’t have their size due to being out of stock. If they have ordered the item in store then they will receive free delivery to their home. When completing their online order they have the option to tick the box on receiving both newsletters via email and catalogues through the post, keeping the customer updated.

Another important element to The Clothing Racks online website is the checkout. It is very important that the payment transactions are secure including having the second part to making a payment from the bank’s like HSBC.

The Clothing Racks’ App
As well as having the online website, The Clothing Rack will have an app suitable for all iPhones, iPads and iPod touches which will be free. The reason for creating the app is the target market and how technology is today. People today just order with the use of their Smartphone’s, so rather then them trying to order on there phones on the internet app and having the text and images too small, we will create an app which makes it more convenient to the customer. Also they then have the chance to download the app and they don’t have to search for it every time that they want to look at the website and make an order. However the app will not be launched until later on, once the business is set up and running. We need to make some profit on the business before spend everything.

Finance:
We have set a budget of £10,000 for the website. This should hopefully include paying for the service charge of the website designer and maintenance etc. The budget we have set for renting the shop unit, which is located just opposite Topshop and RiverIsland in the Lion Yard’s shopping centre, £237,500 PA. The initial budget we have set aside for employee’s wages which will include two full-time and part-time employee’s (the part-time employees will only be working weekend shifts and during peak season). The employees will be paid just above minimum wage and so we have allowed £5,000 for their salaries. We have allowed £15,000 for money for buying stock. Reason being such a large budget is we will not buy anything which has underpaid workers who are working stupid hours. Also the cost of furniture for the shop; o tills £2,500 o 12 mannequins £500 o £450 for 3 display tables o £480 for 4 cube shelving (denim area) o £230 for the 4 main clothes rails o £2,970 for the 10 slatwall panels which display the clothes o £3,000 for shop accessories including stools and curtains etc. for the changing rooms
We will also set aside £10,000 for setting up the first photo shoot and having the catalogues and posters printed. The budget we will set aside for the making of the app for Android and iPhone is £7,000. However we’re leaving the app until later.
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The Clothes Shack

Entrance

Women’s window display

Men’s window display

The men’s till

The women’s till

The disabled changing room

The female changing rooms

The male changing rooms

The disabled changing room

The Denim Section

Shelves with jeans, denim jackets, etc. on display

Chairs to put clothes on or sit on whilst in the changing rooms

Where staff and
I will be

The women’s section

The male’s section

Shelves displaying stock

Posters of models modelling the clothes

Mannequins