New Look, Inc.

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Clothing Manufacturer Business Plan

Company Summary

Mission

The mission of the company is to provide a new look for consumers, based on style and quality.

Legal Business Description

New Look was founded as a Tennessee C-Corporation with principal offices located in Memphis, TN. All operations, from administration to marketing strategies, take place at this leased office location of approximately 500 square feet.

Strategy

The New Look strategy is to aggressively develop and market a full range collection to consumers. The company intends to market its line as an alternative to existing clothing lines and differentiate itself through its marketing strategies, exclusiveness, and brand awareness. New Look intends to build on its core portfolio of products and overcome any obstacles by using the company's expertise in the clothing industry.

The company's goal in the next year is to make an overwhelming impact on the fashion industry and create a large consumer demand for the product. The company's goal in the next 2-5 years is to venture into women's and children's clothing. It plans to also license a line of cologne and perfume, bedding, underwear, small leather goods, jewelry, and eyewear. According to Standard & Poor's (S&P's), women's apparel accounted for 52% of total apparel sales in 1998.

Strategic Relationships

The company has strategic alliances with Music Records and the Entertainment Group. These alliances are valuable to New Look because they provide the needed exposure for its line and the association of its products with celebrities. Celebrities are valuable assets because they receive free clothing for interviews, concerts, and music videos.

Past Performance
1997 1998 1999
Sales $0 $0 $3,000,000
Gross Margin $0 $0 $750,000
Gross Margin % 0.00% 0.00% 25.00%
Operating Expenses $0 $0 $1,200,000
Collection Period (days) 0 0 34
Inventory Turnover 0.00 0.00 6.00
Balance Sheet
1997 1998 1999
Current Assets
Cash $0 $0 $445,000
Accounts Receivable $0 $0 $420,000
Inventory $0 $0 $1,545,000
Other Current Assets $0 $0 $105,000
Total Current Assets $0 $0 $2,515,000
Long-term Assets
Long-term Assets $0 $0 $525,000
Accumulated Depreciation $0 $0 $80,000
Total Long-term Assets $0 $0 $445,000
Total Assets $0 $0 $2,960,000
Current Liabilities
Accounts Payable $0 $0 $1,000,000
Current Borrowing $0 $0 $1,090,000
Other Current Liabilities (interest free) $0 $0 $410,000
Total Current Liabilities $0 $0 $2,500,000
Long-term Liabilities $0 $0 $355,000
Total Liabilities $0 $0 $2,855,000
Paid-in Capital $0 $0 $70,000
Retained Earnings $0 $0 $35,000
Earnings $0 $0 $0
Total Capital $0 $0 $105,000
Total Capital and Liabilities $0 $0 $2,960,000
Other Inputs
Payment Days 0 0 30
Sales on Credit $0 $0 $2,250,000
Receivables Turnover 0.00 0.00 5.36