Clothing Retail Business Plan

Start your plan
Start my business plan

Start your own clothing retail business plan

Mahogany Western Wear

Financial Plan

Forecast

Key Assumptions

The growth of Mahogany Western Wear will be moderate and the cash balance will always be positive. Being a retail environment we will not be selling on credit. We will accept cash, checks, and all major credit cards. TeleCheck Services will be used as the check guaranty system to help reduce the percentage of loss on bad checks. Marketing and advertising will remain at or below 5% of sales. We will continue to reinvest residual profits into company expansion, and personnel.

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

We anticipate $8,000 of pre-launch startup expenses including…

  • Pre-launch rent: $3K One month of prepaid rent
  • Pre-launch fixup: $2K. We will do most of the work ourselves
  • Legal: $1K
  • Prelaunch marketing expense: $2K. Includes branding, logo, social media, pre-launch marketing. We plan to do most of this ourselves. 

We also need $70K pre-launch assets:

  • $18K cash on hand
  • $30K inventory
  • $2K other current assets
  • $20K furniture, shelves, signage, etc. 

Total starting costs are $78K. 

Sources of Funds

We will start with $35,000 of founder investment. We will have a $20,000 dollar line of credit from our bank. We plan on getting a $27,000 Accion loan to help with our startup.  

Statements

Projected Profit & Loss

FY2019 FY2020 FY2021
Gross Margin $284,780 $327,150 $415,969
Operating Expenses
Salaries & Wages $149,400 $185,800 $258,654
Employee Related Expenses $26,400 $32,360 $45,731
Telephone / Cell Phone $1,800 $1,800 $1,800
utilities $4,500 $4,500 $4,500
Rent $30,000 $30,000 $30,000
Marketing $5,400 $5,400 $5,400
Sales $4,800 $4,800 $4,800
Other $6,000 $6,000 $6,000
Amortization of Other Current Assets $0 $0 $0
Interest Incurred $923 $489 $439
Depreciation and Amortization $1,500 $1,500 $1,500
Gain or Loss from Sale of Assets
Income Taxes $5,406 $5,450 $5,714
Total Expenses $584,194 $677,949 $872,944
Net Profit $48,651 $49,051 $51,431

Projected Balance Sheet

Starting Balances FY2019 FY2020 FY2021
Cash $18,000 $29,908 $58,642 $111,312
Accounts Receivable $3,418 $3,221 $4,092
Inventory $30,000 $99,963 $127,083 $127,083
Other Current Assets $1,000 $1,000 $1,000 $1,000
Total Current Assets $49,000 $134,289 $189,947 $243,487
Long-Term Assets $15,000 $15,000 $15,000 $15,000
Accumulated Depreciation $0 ($1,500) ($3,000) ($4,500)
Total Long-Term Assets $15,000 $13,500 $12,000 $10,500
Accounts Payable $10,000 $33,926 $42,062 $42,062
Income Taxes Payable $1,723 $1,363 $1,427
Sales Taxes Payable $11,541 $11,359 $14,441
Short-Term Debt $2,458 $2,914 $2,985 $3,059
Prepaid Revenue
Total Current Liabilities $12,458 $50,104 $57,770 $60,989
Long-Term Debt $24,542 $22,033 $19,475 $16,864
Long-Term Liabilities $24,542 $22,033 $19,475 $16,864
Paid-In Capital $35,000 $35,000 $35,000 $35,000
Retained Earnings ($8,000) ($8,000) $40,651 $89,702
Earnings $48,651 $49,051 $51,431

Projected Cash Flow Statement

FY2019 FY2020 FY2021
Net Cash Flow from Operations
Net Profit $48,651 $49,051 $51,431
Depreciation & Amortization $1,500 $1,500 $1,500
Change in Accounts Receivable ($3,418) $196 ($871)
Change in Inventory ($69,963) ($27,121) $0
Change in Accounts Payable $23,926 $8,136 $0
Change in Income Tax Payable $1,723 ($360) $64
Change in Sales Tax Payable $11,541 ($182) $3,082
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions
Change in Short-Term Debt $456 $71 $73
Change in Long-Term Debt ($2,508) ($2,559) ($2,610)
Cash at Beginning of Period $18,000 $29,908 $58,642
Net Change in Cash $11,908 $28,734 $52,669
Download link edge graphic Download this plan

Start your own clothing retail business plan

Start your own business plan

LivePlan logo Start planning

Your business plan can look as polished and professional as this sample plan. It's fast and easy, with LivePlan.

Get the Bplans newsletter:

Expert business tips and advice delivered weekly.