ĒėBusiness plans are often the starting point for would-be entrepreneurs as they outline their business ideas and develop a plan to seek financing. ¬†It is a formal document which describes a good opportunity and outlines a strategic approach to pursue the opportunity.’¬† (Becherer and Helms 80)
Fashion industry is one of the most lucrative industries in the world amounting to billions of dollars in revenue. In accordance to the trends of the fashion industry consumers enjoy visiting not only large shopping centres but also small boutiques as well. But in order for a small fashion shop to be successful and profitable, the best possible solution may be to choose its location wisely: in a small town where only few competitors operate.
- 1.¬†¬†¬†¬† The purpose of business
The purpose of the present small business plan is to outline the strategy of the small boutique establishment. It has to be noted that the strategic concept of this business includes not only brick and mortar business, but also online presence.
The major strategic goal of the fashion boutique is to become the favorite shopping point of the local community. This boutique would like to attract the public by the great range of fashion and design items and by its cozy atmosphere and friendly staff. In addition, the fashion boutique will have a strong online presence: items will be sold online.
- 2.¬†¬†¬†¬† Analysis of the internal and external stakeholders and environment
In the process of strategic planning a few major tasks should be considered by a manager. The strategic analysis is among them.¬† Strategic analysis means ďa review of the organization’s environment, both internal and external.ĒĚ (Garner 6)
In order to determine where an organization is going to be in the future, its current position should be thoroughly assessed.¬†¬† SWOT analysis was originally designed to help in ďassessment of organizational strengths, weaknesses, opportunities, and threats. It constitutes one of the most important aspects in the overall strategic planning process.ĒĚ (Garner 9)
Advanced version of this method is called SWOTT analysis and it will be used in this paper. In addition to strengths, weaknesses, opportunities, and threats, it includes trends as an additional element as well.¬† Advanced analysis of environment will ease the assessment of the competitive situation, new trends emergence, changes in customers’ or suppliers’ behaviors, etc.
Trends should be studied carefully. In order to learn more about them, the company could order special surveys on the fashion industry in general, on the local business, customer studies, product range performance, knowledge of this boutique’s brand, and also its current image and perception in the eyes of local people.¬† (Hines & Bruce 20)
Additionally to the strengths, weaknesses, opportunities, and threats analysis, another SWOT analysis approach may be used. It divides environmental forces into two categories: internal and external forces. I would like to present SWOTT analysis created for a small local boutique that specializes on clothing and d√©cor trade.
Let’s start this analysis with external forces. I will research these external factors that are of the real importance for a small fashion business. These are economic, competitive analysis, regulatory and social. Other factors do not have the substantial influence on this business.