Lys Fashion Business Plan Daylys Primary Earnings Business Plan

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Lys Fashion Business Plan

DayLys primary earnings

The company's start up

DayLys proposed start up expenses

Strategy and implementation summary

Marketing strategy

Target market

Sales revenue for the first and second year

Graph depicting the sales revenue

Five-year financial plan

Break-even Analysis

Pro Forma Profit and Loss

Pro Forma Cash Flow

Pro Forma Balance Sheet

Business Ratios

Percent of Total Assets

Percent of Sales

Main Ratios

Activity Ratios

Liquidity Ratios

Additional Ratios

The focus of this project is to draw up the business plan for DayLys Fashion and the start up funding will be $45,000. The paper also provides the pro-forma profit and loss, and the marketing strategies. The financial plan reveals that the company will record profits in the first year and continuing making profits within the next five-year.

DayLys Primary Earnings

DayLys primary earnings will be $62,715 in year 1, $135,771 in year 2,

and $243,806 in year 3.

The Company's Start Up

The start-up fund for the business will be $45,000 and DayLys' business location will be at Chicago in Illinois, and the company will dedicate itself in selling affordable and quality clothing in the market. The company's strength is to maintain sufficient products in the inventory to meet the anticipated demand.

DayLys Proposed Start Up Expenses

The start up expenses will also be $45,000 and the money will be used to purchase all the materials needed to start up the business. The company moto is: Daylys shopping begins here!!!

Strategy and Implementation Summary

DayLys Fashion will sell clothing online focusing on women clothes aged between 13 and 50-year. The company strategy is to offer a quality, brand western wear in different assortment, styles, and sizes to accommodate varying body styles and shapes. Our business strategy is also to use online tools to deliver our product to customer. To achieve this aim, the company will design an appealing website that would assist customer to make a purchase online. In the contemporary business environment, IT (Information Technology) tools have become the powerful weapons that organizations employ to achieve competitive market advantages. (Porter, 2001). Business organizations such as amazon.com, sammydress.com, DollarStore, and host of other successful online stores have been very successful in the online business. Thus, DayLys Fashion will use IT tool using online business strategy to achieve competitive market advantages.

Our company will enjoy several benefits from online shopping.

First, our company will have access to wide number of customer within a large geographical region. Moreover, our company will be able to have access to market opportunities all over the United States as well as international market. Additionally, online business will assist the company to achieve its business objectives since our company does not need to lease an expensive warehouse for business operations.

We will be able to achieve our online business objectives by integrating the following business strategies in our business model:

Creating an appealing website where our customer will be able to have access to our product.

Integrating the shopping cart to assist customer to select and purchase our product with ease and convenience.

Our company will use the open source-shopping cart and integrate it into the payment gateway. The shopping cart will provide features and tools to manage our product catalog. To attract more customers, we will integrate a customized shopping cart that would match the template of our online environment.

DayLys Fashion will accept the credit cards as the major form of payment. In the contemporary online business, credit card is a major form payment for the online business transactions.

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We will accept the major credit cards, which include Visa, and MasterCard. Added to this, we will also accept PayPal as a form of payment since PayPal is an easy and safer way for customer to settle their payments without exposing their credit card and bank account.

DayLys Fashion will derive the following benefits by accepting credit cards as method of payments:

Our company will enjoy faster payments of the product purchased by customer;

The credit card and PayPal payment system will increase the customers' confidence towards our company.

Acceptance of PayPal will attract more business customer to our website.

Our shipping method will be through UPS, USPS, FedEx, and DHL. The benefits of shipping via UPS, FedEx and DHL are that customer will be able to track their orders online. Moreover, we will ship the order via USPS for customers who could not afford to ship their orders through UPS, FedEx, or DHL.

DayLys Fashion will accept return of the products ordered within 30 days of purchase. However, our company will accept the return of unopened item based on the following condition:

Items must be returned with all the original accessories and packaging;

The item must be unworn;

The items must remain new and be in the same original condition;

Items must not be damaged.

Our company will offer the refund of original payment with 2 or 3 weeks after we receive the return item. Our company will exchange an item if returned item is not damaged and be in the same original condition. However, the customer will need to pay additional shipping costs for the exchanged order.

Marketing Strategy

The company marketing strategy will focus on niche positioning, and sale promotion. The marketing expenses will not exceed 5% of gross annual sales and the company promotion will be in line with the company objectives. Other marketing strategies are to:

establish a strong advertising and marketing campaign that would attract customer from every part of the country.

use accessible and appealing website for online shopping where customer could always find product they want.

enhancing excellent vendor relationships that would assist the company to have access to quality and affordable product at all time.

Target Market

The target market will be women between 13 and 50-year. The company will be able to enjoy high market shares from the target market by delivering high quality fashion wears at affordable prices.

Sales Revenue for the First and Second Year

As being revealed in Table 1, the sale revenue for the first and second year will be $284,200 $369,460 respectively and the graph depicting the sales revenue is revealed in Fig 1.

Fig 1: Graph Depicting the Sales Revenue

Five-year Financial Plan

The 5-year financial plan reveals that our company will record total revenue of $284,200 in the first year and the total revenue will increase to $850,000 in the fifth year. Based on the overall total revenue, our company will record the net profits of $49,234 in the first year and $272,165 net profit in the fifth year. (See Table 1 and Fig 1).

Table 1: Five-Year Sales revenue, and Profit

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Year 4

Year 5

Sales / Total Revenue

$284,200

$369,460

$480,290

$660,300

$850,000

Direct Cost of Sales

$142,100

$184,730

$240,145

$330,150

$425,000

Production Expenses

$0

$0

$0

$0

$0

Total Cost of Sales

$142,100

$184,730

$240,145

$330,150

$425,000

Gross Margin

$142,100

$184,730

$240,145

$330,150

$425,000

Gross Margin %

50.00%

50.00%

50.00%.....

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