Vision/Mission Statement and Goals
Greenville Closet is the place for everyone with a taste for trendy clothes and apparel. Customers come first, and the business is committed to ensuring that it does everything possible to create lasting relationships with the customers with the aim of attracting a loyal consumer base. The business sets itself apart from other businesses in the industry by providing customers with unique offerings that meet their specific needs. The company’s founder and who heads the management team is a fashion enthusiast who is committed to providing customers with the best experiences.
Goals and Objectives
The company understands that there is a need for the establishment of concrete goals that will be of the essence in facilitating the achievement of business objectives. The team that will have the responsibility for management plays an important role in the achievement of the company’s goals and objectives. One crucial objective at first is to secure funds that the startup requires and identify sources of funding in the future through investing and debts. Through robust marketing and sales programs, the business will expand its clothing line and acquire at least 15% of the branded apparel industry. In the first three years of operation, the company seeks to ensure consistent sales revenue. With time, the company will enter the global market.
Keys to Success
Greenville Closet is a business that remains committed to success. The keys to success will be informed by the company’s vision, and this gives the management a basis to ensure that the company succeeds. For it to succeed, the company has to be among the industry’s leaders in the provision of branded apparel. The management will also be expected to create a sustainable brand and increase efforts to promote it. All operations of the business have to be based on best practices, including sourcing and manufacturing ethically and honest reporting of financial results.
Greenville will sell clothes and apparel and is committed to customer relations. Its founder, Smith Liam, had a great taste in fashion, and this explains his interest in investing in a clothing line. The establishment of the company dates back to 1998 when Mr. Smith managed a group of young musicians. He thought about an idea to create a clothing line that bore the group’s name, logo, and slogan. The idea was a success, and the group ended up selling T-shirts in various local stores. Today, the time has come for Greenville Closet.
Resources, Facilities, and Equipment
The current operations of the company are based in the home of the founder. After the necessary funds have been acquired, operations will move to Greenville. A sufficiently large office and storage space will be rented. The business will hire sales assistants on an hourly basis, and they will act as the link between the senior management and the customers. A local contractor has been approached to build required shelves and other related equipment. Negotiations will continue with the contractor and the provider of the office and storage space to agree on the terms of payment and the amount to be paid.
Greenville Closet has pursued strategic alliances with various players in the entertainment sector, including Sony and ABC Studios, to help the company’s marketing efforts. This will help expose the company’s products through celebrities. Wal-Mart has been contacted for a contract to help in advertising and the use of its stores.
Management and Organization
Greenville Closet seeks to put together management that is responsible, respectful, and is focused on leading the company to profitability. The CEO position will be held by the company’s founder, Mr. Liam Smith, who will be reporting to an appointed Board of Directors. He will lead the company on many fronts, including operational work, strategy, finances, and corporate culture. Mr. Martin McConnell will hold the position of Vice President of Strategy Development. The management is yet to fill other management positions because the search is still in progress to find individuals who are most suited to fill the positions.
These positions are for Vice President of Sales and Marketing, Financial Manager, and Human Resources (HR) Manager. The team of two that is already in place has the capability to drive the company forward. Mr. Smith has worked in the music and clothing industries for a combined 20 years, and he is a renowned champion for the plight of the less fortunate in society. Mr. McConnell has a Master in Business Administration and has worked in the clothing and apparel industry for nearly three decades. Once fully established, the Human Resources department will take care of salaries and review of employees.
Lines of authority
Currently, the company is privately held, and it is a Limited Liability Corporation entirely owned by Liam Smith. The business needs to be registered, and a seller’s permit obtained. Fees will also be paid to facilitate the company’s incorporation.
Social responsibility is voluntary, and it entails approaches by a business in the management of its social, environmental, and economic duties and feedback from parties that are key to its sustainability (Voronkova et al., 2020). Greenville Closet, as the name suggests, is a business that takes issues of the environment seriously. Therefore, the company will only obtain products from ethical manufacturers who have adopted environment-friendly practices. Employees will be trained on the best practices to dispose and recycle waste to avoid damaging the environment. The company will take part in the affairs of the communities it operates in. For example, an idea has been suggested to establish a design school in the future. Furthermore, local charities will be funded by the business to help communities.
The company has the strength of being established in a high-income area, and this ensures its success because of the potential for high sales volumes. However, because the company is new in the industry, it may take time to win loyal customers from established companies. One core competence for the company is offering customers uniquely customized clothing and apparel. The company will introduce the idea of all-family-shopping, that is, a shopping model where families will be able to order products for everyone in the family at discounted rates.
Products and/or Services
Greenville enters the clothing and apparel to offer unique and trendiest products in the industry. The company will sell casual wear products, among them jerseys, T-shirts, and cotton denim jackets. In the area of sportswear, the company will focus its efforts on sweatshirts and suits. Workout gear will also be sold to the company’s customers. Greenville will provide motorbike jackets and pants as part of its leather products. Baseball jackets and headgear are other products that the company will be selling.
Part of the company’s sourcing strategy includes working exclusively with organizations that embrace fair labor practices. The company will sell differentiated products that are tailored to the specific needs of customers, which will help create unique products for the clients. Only high-quality products manufactured using sustainable materials will be sold. Customers will have the opportunity to enjoy big discounts during special sales days chosen by the company’s will.
Examining the General Market
The current market involves the segments of men, women, and children. There are no notable barriers, and the consumers come from different backgrounds. Women are an important component of the market because they are the ones who spend on clothing and apparel. The same applies to teenagers and people aged above 45 years because they wear most of the sports apparel. Each of the segments has a different potential for growth. The threat posed by established global apparel and clothing companies, including Nike and Ralph Lauren, may hinder the successful launch of the business in the selected area.
This is because the company aims at creating unique products, but customers already associate with the reputable brands’ products. Analysis of the competitive nature and environment of the industry shows that recognized retail companies in the U.S. are the greatest source of competition. A notable trend shows an increase in spending by African-Americans on fashion products, and this indicates a change in perception. The company can exploit this opportunity for success.
The customers vary in terms of age, ranging between 1 and 60 years. Adults will be offered adult clothing and apparel. There will be junior clothing that will be offered to teenagers. Sportswear products will be sold to those aged above five years and those aged below 60 years. The business will also sell to those aged below five years by offering children’s wear. Adults above 60 years will be targeted by providing clothing and apparel that they identify with. Customers have always wanted specially customized clothing and apparel, and this is a problem that the business will solve at individual and family levels. Customer loyalty will be ensured by providing high-quality products and customer experiences.
In the current industry, the business that leads the way is the one that is able to provide unique products to its customers. Specifically, the ability to provide products that are tailored to the specific needs of consumers is key for survival.
The strategic partnerships in entertainment and retail that have been pursued by the company provide it with a competitive edge. Greenville Closet is an ideal brand name that consumers can identify with at a time when caring for the environment is receiving increased awareness. Differentiation, customer relations, and corporate social responsibility will inform the company’s marketing strategy.
The initial operations of the business will not involve production. The business will obtain its products from other companies and customize them through logos and other specific branding requirements preferred by clients.
The business requires different resources for effective operation and delivering its promise to its consumers. To achieve its goals and objectives, the company will require certain human resources. Experts in management, sales assistants, point-of-sale cashiers, and support staff will be hired to work for the company. In terms of finances, the company will require funds to pay the workforce and meet costs for products and equipment. Arrangements will be made with suppliers to agree on viable payment structures. The company’s operations will require big storage space to sell the products and a warehouse to hold new inventory.
In the process of sourcing or procuring, the company’s decisions will be based on cost and quality. Suppliers will be approached differently, and this depends on various factors. Dealers offering high-quality products will be approached to supply necessary products. When it is deemed appropriate and cost-effective, the company will source directly from manufacturers.
The employees in the sales department will ensure that the company makes adequate sales locally and nationally. The company’s plan is to use different channels to distribute its products. In this regard, supercenters such as Wal-Mart and established supermarkets and boutiques will be used. The company will also ensure the use of e-commerce, much to the convenience of Internet enthusiasts. As a promise to consumers, the company will offer competitive prices for its products. It will continually monitor key expenses and costs to ensure that this pricing strategy is maintained.
Consumers will be able to buy products from the company’s store, as well as through the online platform. In addition, customers will access the products they need from retailers and stores across the country that the company partners with.
A plan to advertise and promote products is needed to increase sales and awareness. Achieving this marketing goal will require a promotion strategy that is able to reach the intended target market and deliver the intended message. Apparel and clothing magazines, direct mailing, and media such as radio and television, and promotion events will be used to serve this purpose, which will ensure more sales revenue and brand awareness. Through its website, www.greenvillecloset.com, the company will have a platform to promote its products and also enhance brand awareness.
It is crucial that the company mitigates the various risks it faces to ensure its survival in the competitive industry it will operate in. The business will seek to protect itself from style pirates by safeguarding its creations through copyrighting. Hedging may help the company deal with risks resulting from its supply chain and future economic difficulties. The company will make sure that its store and warehouse building mitigate against potential risks, including theft and fires.
The progress of the business will be monitored through the number of sales it is able to make over a certain period of time and whether it achieves profitability. In the first year of operation, the company should have to create achieved profitability, and sales should increase from one period to the next. Employees’ performance will be gauged on the revenue their areas of sale bring. The management team’s effectiveness will be monitored through the impact of strategic actions on the business.
The owner will directly invest their money into the business. However, the largest part of the funds needed to start the business will come from investors and capital debt financing. Local banking institutions are the ideal providers of debt funding for the business. Investors have provided $7,000, while $15,000 has been obtained through grant funds. The company remains confident that through the different efforts to market its products, sales of between $500,000 and $600,000 will be realized on a monthly basis in the first year of operation. Given that the business is not capital-intensive in nature, a debt-to-equity ratio of less than 1.5 would be preferred.
Close monitoring of the market through the use of different econometric and statistical approaches and external advice is key to mitigating the financial risks that the company may face. The business will ensure that it always has an operational cash flow budget that will track the cash coming in and what is being spent. This practice helps in ensuring that there is enough money to service debts. Inventory turnover is an important element of the business that will be regularly monitored to understand the type and amount of new inventory needed. The company will also closely monitor its return on revenue with the aim of ascertaining how well resources available are leveraged.
Even when everything does not go as planned, the business idea and its success will be pursued through other means. An emergency fund will be set aside to deal with emergencies, for example, a case where the current cash flow budget is unable to facilitate paying off debts.
Voronkova, O. Y., Melnik, M. V., Nikitochkina, Y. V., Tchuykova, N. M., Davidyants, A. A., & Titova, S. V. (2020). Corporate social responsibility of business as a factor of regional development. Entrepreneurship and Sustainability Issues, 7(3), 2170. Web.