For the last two decades, the number of people across the globe (both young and middle aged) preferring urban and casual wear keeps on rising every day. The reason behind it is the growing trend of modernization, urbanization and the need to appear decent and fitting in the current society. Influence from celebrities, influential figures such as actors, artists and pop stats have also played a role in this, and this has therefore facilitated and brought about a ready market for these clothes and other urban products. Buyers of a product are known to be highly lured into buying a commodity by the influential persons they look up to (Luther, 2001).
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In my proposed business plan I intend to open a store selling urban clothing with my clothing line products. The products will cater for all people regardless of their gender or age, but with particular emphasis on children, teenagers, young adults and the middle-aged, since I intend to provide the market with products for ladies, men and children. These from research have proved to be the most dedicated and loyal market for urban products. The store will mainly deal with selling shirts, sweaters, fitted hats and jeans. The reason I chose to venture into this business is that the need and demand for these products keep on rising and many people are willing to buy them.
This segment will at the overall description, objectives and goals of the business that I intend to set up. The reason behind coming up with this idea, as earlier stated, is because demand for urban wear keeps on rising each and every day and this will therefore provide a ready market for the products. The store will be set up in an urban area or in its outskirts where the demand is high and it will concentrate on targeting the middle income earners, going by a researched market analysis. Setting up the business in the urban area will not only be advantageous in the sense that there are many customers, but also transportation of the products from the wholesalers to my retail shop will also be easier and faster. Physical contact with potential and actual customers will also be made efficient.
Before venturing into any business activity, it is of utmost importance to first critically analyze the situations under which the business shall be based on (Hisrich, R., Peters, M., & Shepherd, D., 2010). This includes the number and distribution of actual and potential customers, how concentrated and competitive the industry is. It’s also important to take a closer look at your knowledge and skill in the targeted venture. Knowledge in bulks will assist the entrepreneur to make informed decisions especially in serious decision-making situations. When analyzing the situation, it is advisable to look at the current market situation so as to know how to handle the probable existing barriers for example competition and other aspects for example transport, suppliers etc.
Since there has been a rising trend in the demand for urban-wear, this implies that there is a sufficiently ready market for my products. Higher demand for my products is an advantage to me because marketing of the products will be easier and faster, because majority of actual and potential buyers are already conversant with the goods that I intend to be selling at my store.
Market entry strategy
I intend to market and sell my products domestically because as a small scale entrepreneur, a lot of capital will be required to penetrate the foreign market. Secondly, fully maximizing on the domestic clients through aggressive marketing will as well give me the desired outcome and at the same time maximize on profits. The domestic market is well conversant with the products that I will be selling, and at the same time exploring a foreign market will require a lot of vigorous advertising, marketers and sales persons. When penetrating into the market, the best pricing strategy to use is the competition-based pricing method, whereby when setting the prices for the products, I will have to consider my competitors’ prices and set mine within the same range, but at a price that will be more attracted to the customer comparing to my competitors. Companies with a high amount of start up capital usually prefer high levels of entry (Kennedy, 2006). This is an important note to consider when pricing.
Minimizing personal risks
Every business venture leaves the entrepreneur prone to various risks for example financial hurdles. To minimize these risks, it is important to budget the venture’s finances through an expenses forecast. Insuring the business is something else that I will have to do, to cover it in case of fire accidents, looting, collapse etc. I will also observe safety measures in my new venture to prevent myself from health hazards and physical risks. This is achievable through observing safety precautions, putting fire extinguishers at work premises.
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Hisrich, R., Peters, M., & Shepherd, D. (2010). Entrepreneurship. 8th Ed. New York: McGraw Hill.
Kennedy, D.S. (2006). The Ultimate Marketing Plan: Find Your Hook. North America: Adams Media.
Luther, W.M. (2001). The Marketing Plan: How to Prepare and Implement It. New York: AMACOM.