Fashion Business Plan – JSS3 Fashion and Garment Making Lesson Note (Third Term)

A business plan is a simple written document that shows what business you want to start, how you will run it and how much money it needs.

Behavioural objectives

By the end of the lesson, students should be able to:

1. Define a business plan in fashion.
2. State three reasons for writing a business plan.
3. List the five parts of a small fashion business plan.
4. Distinguish between startup costs, running costs and income.
5. Prepare a simple startup budget and write a one-page plan.

What is a business plan?

A business plan is a written guide that explains what you will do, how you will do it and how you will earn money.

• Everyday example: a traveller going from Lagos to an unknown village needs a map so as not to get lost.
• In fashion: the business plan is the map for your sewing or fashion business.

What does a business plan explain?

• What: the business you want to do.
• How: the way you plan to do it.
• Money needed: how much you need to start.
• Money back: how you will earn that money back.

Why do you need a business plan?

A business plan keeps you focused, helps you get support and lets you check your progress.

1. To stay focused: it stops you from wasting money on things you do not need.
2. To get help: parents or a bank will want to see your plan before they lend you money.
3. To track progress: after six months you can check whether you are meeting your goals.

What are the parts of a small fashion business plan?

A small fashion business plan has five parts: business name and vision, product, customers, competition and budget.

• You do not need a 100-page book.
• A one-page plan is enough for a JSS3 student starting small.

1. Business name and vision

• Business name: the name of your shop, for example “Victory Stitches”.
• Vision: what you want to be known for, for example “To be the best school uniform maker in this local government”.

2. The product

The product is what you make or sell.

• Ready-to-wear: Ankara tops made and sold without a customer order.
• Mending: repairing and altering old clothes.
• Accessories: hair accessories made from fabric scraps.

3. The customers

Customers are the people who will buy from you.

• You cannot sell to everybody.
• Possible groups: students, church-goers and nursing mothers.
• When you know who they are, you know where to find them.

4. The competition

Competition means the other people who sell the same thing as you.

• Ask: who else is sewing in your street?
• Ask: what can you do better?
• Possible strengths: you sew faster, or your finishing is neater.

5. The budget

The budget is the list of money you will spend and the money you expect to earn. It is explained in the next section.

What is a budget in a fashion business?

A budget is a plan of the money you will spend and the money you expect to receive.

• It is the most important part of the plan.
• It must show startup costs, running costs and income.

What is the difference between startup costs, running costs and income?

• Startup costs: money spent once to start the business, such as a sewing machine.
• Running costs: money spent again and again to keep the business going, such as thread, fabric and transport.
• Income: money you receive from customers for your work.

Sample startup budget

How do you work out an income plan?

1. Decide how much you will charge for each item.
2. Decide how many items you can make in a week.
3. Multiply the two numbers to find weekly income.
4. Compare the weekly income with the startup cost to see how long it takes to pay back.

• Example: 4 skirts a week at ₦2,000 each gives ₦8,000 a week.
• Payback: ₦79,500 divided by ₦8,000 is about 10 weeks.
• Remember: running costs must also be paid from the income, so real payback takes longer.

How do you write your own fashion business plan?

Use the template below to write a one-page plan for a fashion business you can start during the holidays.

My Fashion Business Plan

1. Name of business: __________________________
2. What I will make: ___________________________
3. Who will buy from me: _______________________
4. Where I will work from: ______________________
5. How people will hear about me: ________________
6. Amount I need to start: ______________________

Tips for writing your plan

• Start writing: a plan does not have to be perfect.
• Improve it: as you learn more, you can change your plan.

Evaluation

1. Define a business plan.
2. Why is it dangerous to start a business without a plan?
3. What is the difference between startup costs and income?
4. Why should you identify your competition before you start?
5. List the five parts of a small fashion business plan.

Assignment

Complete the “My Fashion Business Plan” template for a fashion business you can start during the holidays. Add a list of your startup costs with a total.