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Do you want to start streetwear brand business?
Are you going to launch your own streetwear clothing business? Streetwear clothing is one of the most profitable business niches you can invest in. The popularity of casual clothing which started in the 1990s hasn’t yet faded away, nor will it decrease in the decades to come.
The increasing demand for casual clothing such as jeans, sneakers, and punk shirts make this business extremely profitable, but to make your venture a success, you will have to meticulously plan each and everything before launching it.
You can only do that by creating a well-thought-out streetwear brand business plan. To help you with it, we are providing below a sample business plan of a streetwear clothing startup, ‘Punk Wear’.
Executive Summary
If you are looking to start a streetwear brand, this streetwear business plan sample will help you in the startup, besides also helping you make your own streetwear business plan.
2.1 The Business
Punk Wear will be an Orlando-based clothing line, which will initially comprise of a display center and a production facility. The display center, which will also be the company headquarters, will be started in a 2000 square feet shop in downtown Orlando.
2.2 Management
Punk Wear will be started by Jackie Kit, a serial entrepreneur from Orlando, who will hire an extensive team of employees including production workers, store assistants, accountants, etc., to make his venture a success. Being a serial entrepreneur, Jackie knows how to start a streetwear brand and make it a success.
2.3 Customers
Punk Wear will be a one-stop shop for all streetwear clothing and will provide an assortment of products ranging from casual shirts, to punk jeans, to sneakers. We will provide our high-quality products to the local residential community as well as departmental stores, and our customers will also be able to make a purchase through our online store.
2.4 Target of the Company
Our target is to become the best streetwear company in Orlando by the end of the next two years, and achieve the following profit margin targets for the next three years.
Company Summary
3.1 Company Owner
The company will be started by Jackie Kit, a serial entrepreneur from Orlando, Florida, who moved to the US two decades ago to pursue his degree in entrepreneurship from MIT. After completing his Masters, he went on to start a series of successful ventures.
Starting from an e-commerce store, Jackie moved on to launch a book shop and a vintage musical store. All the three ventures have been a great success and Jackie now looks forward to moving to an even bigger initiative. Due to his extensive business experience spanning decades, Jackie knows how to start a streetwear brand and make it a success.
3.2 Why the Business is being started
Being a serial entrepreneur, starting a streetwear brand business is the next stop for Jackie. Starting this business is undoubtedly the best way for him to invest what he has made from his previous ventures. It is also a good use of his vast knowledge and experience.
3.3 How the Business will be started
A well-thought-out business plan will go a long way in helping you how to start streetwear brand. That’s why Jackie made sure to prepare a comprehensive business plan detailing all aspects of his venture.
Punk Wear will be an Orlando-based clothing line. For startup, the company will procure a clothing production facility as well as a display center. Jackie plans to purchase an existing production facility located on the outskirts of the city and make necessary changes to it.
The display center, which will also serve as company headquarters, will be located in downtown so that it attracts as many customers as possible. A 2000 square feet shop has been procured on lease to serve as Punk Wear display center. The startup requirements summary is given below.
The detailed startup requirements are as follows:
| Start-up Expenses | ||
| Legal | $55 300 | |
| Consultants | $0 | |
| Insurance | $32 750 | |
| Rent | $32 500 | |
| Research and Development | $32 750 | |
| Expensed Equipment | $32 750 | |
| Signs | $1 250 | |
| TOTAL START-UP EXPENSES | $187 300 | |
| Start-up Assets | $220 875 | |
| Cash Required | $332 500 | |
| Start-up Inventory | $32 625 | |
| Other Current Assets | $232 500 | |
| Long-term Assets | $235 000 | |
| TOTAL ASSETS | $121 875 | |
| Total Requirements | $245 000 | |
| START-UP FUNDING | ||
| START-UP FUNDING | $273 125 | |
| Start-up Expenses to Fund | $151 875 | |
| Start-up Assets to Fund | $123 000 | |
| TOTAL FUNDING REQUIRED | $0 | |
| Assets | $23 125 | |
| Non-cash Assets from Start-up | $18 750 | |
| Cash Requirements from Start-up | $0 | |
| Additional Cash Raised | $18 750 | |
| Cash Balance on Starting Date | $21 875 | |
| TOTAL ASSETS | $373 125 | |
| Liabilities and Capital | $0 | |
| Liabilities | $0 | |
| Current Borrowing | $0 | |
| Long-term Liabilities | $0 | |
| Accounts Payable (Outstanding Bills) | $0 | |
| Other Current Liabilities (interest-free) | $0 | |
| TOTAL LIABILITIES | $0 | |
| Capital | $620 125 | |
| Planned Investment | $620 125 | |
| Investor 1 | $0 | |
| Investor 2 | $0 | |
| Other | $0 | |
| Additional Investment Requirement | $0 | |
| TOTAL PLANNED INVESTMENT | $620 125 | |
| Loss at Start-up (Start-up Expenses) | $313 125 | |
| TOTAL CAPITAL | $251 875 | |
| TOTAL CAPITAL AND LIABILITIES | $251 875 | |
| Total Funding | $255 000 | |
Products
Before thinking about how to start your own streetwear brand, one should plan in detail all the services that will be provided to customers. It helps to plan the other components of the startup.
Punk Wear will be a one-stop shop for all streetwear clothing and will provide an assortment of products ranging from casual shirts, to punk jeans, to sneakers. Only the apparels will be manufactured by the company under the brand name of ‘Punk Wear’.
Besides clothing, all other products will belong to famous brands. These products will be offered to encourage sales and provide a one-stop service to customers. Our products include but are not limited to:
- Men’s streetwear: Jumpers, Hoodies, Jeans, Pants, Shirts, Shorts, Singlets, Tees, Backpack, Bag, Button Ups, Footwear, Headwear, Jackets, Watches
- Women’s streetwear: Jumpers, Hoodies, Jeans, Leggings, Pants, Shirts, Shorts, Singlets, Tees, Backpack, Bag, Button Ups, Footwear, Headwear, Jackets, Watches
- Kids’ streetwear: Jeans, Footwear, Headwear, Jackets, Jumpers & Hoodies, Shorts, Tees
- Gifts and accessories
Marketing Analysis of Streetwear Brand Business
Marketing analysis is one of the most important components of your business plan as it helps you develop an effective streetwear brand marketing strategy needed to target and attract customers. You can get help from this streetwear business plan template to carry out a marketing analysis before starting your venture. You can also take to the internet to get streetwear clothing brand name ideas as well as other related information.
5.1 Market Trends
Streetwear clothing is in great demand due to their casual nature and relatively lower prices as compared to other types of clothing. Ever since they started in the 1990s, the popularity of streetwear clothing such as jeans and casual shirts have been increasing. The market for this business niche will continue to increase over the course of the next few decades.
5.2 Marketing Segmentation
It is very important for you to analyze your target audience so that you can develop effective marketing strategies to attract them to you. The marketing segmentation of our potential customers is as follows.
5.2.1 Residential Community
Our first target group will be the local community residing in the vicinity of our display center in Orlando. Punk Wear will provide best-in-class streetwear to men, women, and kids from the residential community.
5.2.2 Departmental Stores
We will also supply our branded clothes to the departmental stores located across Orlando as well as a handful of nearby stores. As our business grows with time, we will increase the number of departmental stores to whom we will supply our streetwear.
5.2.3 Online Purchasers
Customers located across the US will also be able to purchase our products through our online store.
The detailed market analysis of our potential customers is given in the following table.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Residential Community | 32% | 11 433 | 13 344 | 16 553 | 18 745 | 20 545 | 13,43% |
| Online Purchases | 48% | 22 334 | 32 344 | 43 665 | 52 544 | 66 432 | 10,00% |
| Departmental Stores | 20% | 12 867 | 14 433 | 15 999 | 17 565 | 19 131 | 15,32% |
| Total | 100% | 46 634 | 60 121 | 76 217 | 88 854 | 106 108 | 9,54% |
Strategy
After you have conducted a marketing analysis to know who your target audience is, the next step is to create an innovative sales strategy to convert your audience into your costumers. You can download this streetwear business plan pdf to get help with your sales strategy or you can also search the internet for new ideas. Sales strategic plans is an important component of a streetwear business plan so make sure to plan it carefully.
6.1 Competitive Analysis
Our biggest competitive advantage will be our location, which is almost ideal for opening a streetwear store. The residential community located near us will help us a lot in kickstarting our venture. Our clothing line will be relatively cheaper than other similar products but still, they will be of the highest quality possible. It will be another competitive advantage for us. Finally, we will provide exceptional customer service to convert our visitors into loyal customers.
6.2 Sales Strategy
Our experts have come up with the following strategies to advertise and sell our products.
- We will advertise our products through print as well as social media
- We will allow our customers to buy our products online with an easy-to-use online store business plan
- We will offer gift hampers and attractive discounts on our products to encourage sales
- We will provide special discounts on customer referrals
6.3 Sales Forecast
Considering the current market demand of our products and our sales strategy, our experts have forecasted following sales on a yearly basis which are summarized in the column charts.
The detailed information about sales forecast, total unit sales, total sales is given in the following table.
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Men’s streetwear | 1 887 030 | 2 680 320 | 2 588 240 |
| Women’s streetwear | 802 370 | 815 430 | 823 540 |
| Kids’ streetwear | 539 320 | 770230 | 1 002 310 |
| Gifts and accessories | 265 450 | 322 390 | 393 320 |
| TOTAL UNIT SALES | 3 494 170 | 4 588 370 | 4 807 410 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Men’s streetwear | $140,00 | $150,00 | $160,00 |
| Women’s streetwear | $600,00 | $800,00 | $1 000,00 |
| Kids’ streetwear | $700,00 | $800,00 | $900,00 |
| Gifts and accessories | $650,00 | $750,00 | $850,00 |
| Sales | |||
| Men’s streetwear | $2 149 800 | $2 784 000 | $3 383 200 |
| Women’s streetwear | $120 050 | $194 500 | $268 500 |
| Kids’ streetwear | $50 110 | $71 600 | $93 000 |
| Gifts and accessories | $139 350 | $194 600 | $249 850 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Men’s streetwear | $0,70 | $0,80 | $0,90 |
| Women’s streetwear | $0,40 | $0,45 | $0,50 |
| Kids’ streetwear | $0,30 | $0,35 | $0,40 |
| Gifts and accessories | $3,00 | $3,50 | $4,00 |
| Direct Cost of Sales | |||
| Men’s streetwear | $989 300 | $1 839 000 | $2 679 700 |
| Women’s streetwear | $66 600 | $119 900 | $173 200 |
| Kids’ streetwear | $17 900 | $35 000 | $52 100 |
| Gifts and accessories | $19 400 | $67 600 | $115 800 |
| Subtotal Direct Cost of Sales | $1 294 100 | $1 699 400 | $2 104 700 |
6.4 Sales Monthly
6.5 Sales Yearly
Personnel plan
Before starting a streetwear company, you must create a list of the employees required to run your business as well as their job descriptions. It’s always better to hire your staff before launching your startup so that you can train them efficiently.
7.1 Company Staff
The following staff will be hired on a contract basis for the startup.
- 1 Production Manager for managing the production facility
- 10 Production Workers for operating the production plant
- 2 Accountants to maintain financial records
- 3 Fashion Designers for launching new ideas
- 8 Assistants for operating display center
- 2 Drivers for transportation purposes
- 1 Front Desk Officer to act as receptionist
- 1 IT Expert to manage the online store
7.2 Average Salary of Employees
The average salaries of employees are as follows.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Production Manager | $50 000 | $55 000 | $60 000 |
| Production Workers | $445 000 | $450 000 | $455 000 |
| Accountants | $85 000 | $95 000 | $105 000 |
| Fashion Designers | $145 000 | $150 000 | $155 000 |
| Assistants | $350 000 | $355 000 | $360 000 |
| Drivers | $50 000 | $55 000 | $60 000 |
| Front Desk Officer | $42 000 | $45 000 | $48 000 |
| IT Expert | $50 000 | $55 000 | $60 000 |
| Total Salaries | $495 000 | $505 000 | $515 000 |
Financial Plan
The final step you will have to take before starting a streetwear business is to make a financial plan to determine all the costs involved in your startup. The costs include both the direct expenses such as the cost of inventory and indirect expenses such as the overhead costs.
Your financial plan should cover all the financial aspects of your startup so that you can easily manage your startup expenses and the salaries of your employees while also achieving your financial goals.
If you’re starting on a smaller scale, you can take help from various streetwear production business plans available online to make a financial plan for your business. Otherwise, you should seek financial experts to help you through this phase.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10,00% | 11,00% | 12,00% |
| Long-term Interest Rate | 10,00% | 10,00% | 10,00% |
| Tax Rate | 26,42% | 27,76% | 28,12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | ||
| Monthly Units Break-even | 5530 | |
| Monthly Revenue Break-even | $159 740 | |
| Assumptions: | ||
| Average Per-Unit Revenue | $260,87 | |
| Average Per-Unit Variable Cost | $0,89 | |
| Estimated Monthly Fixed Cost | $196 410 | |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309 069 | $385 934 | $462 799 |
| Direct Cost of Sales | $15 100 | $19 153 | $23 206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15 100 | $19 153 | $23 206 |
| Gross Margin | $293 969 | $366 781 | $439 593 |
| Gross Margin % | 94,98% | 94,72% | 94,46% |
| Expenses | |||
| Payroll | $138 036 | $162 898 | $187 760 |
| Sales and Marketing and Other Expenses | $1 850 | $2 000 | $2 150 |
| Depreciation | $2 070 | $2 070 | $2 070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4 000 | $4 250 | $4 500 |
| Insurance | $1 800 | $1 800 | $1 800 |
| Rent | $6 500 | $7 000 | $7 500 |
| Payroll Taxes | $34 510 | $40 726 | $46 942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188 766 | $220 744 | $252 722 |
| Profit Before Interest and Taxes | $105 205 | $146 040 | $186 875 |
| EBITDA | $107 275 | $148 110 | $188 945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26 838 | $37 315 | $47 792 |
| Net Profit | $78 367 | $108 725 | $139 083 |
| Net Profit/Sales | 30,00% | 39,32% | 48,64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40 124 | $45 046 | $50 068 |
| Cash from Receivables | $7 023 | $8 610 | $9 297 |
| SUBTOTAL CASH FROM OPERATIONS | $47 143 | $53 651 | $59 359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47 143 | $53 651 | $55 359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21 647 | $24 204 | $26 951 |
| Bill Payments | $13 539 | $15 385 | $170 631 |
| SUBTOTAL SPENT ON OPERATIONS | $35 296 | $39 549 | $43 582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35 296 | $35 489 | $43 882 |
| Net Cash Flow | $11 551 | $13 167 | $15 683 |
| Cash Balance | $21 823 | $22 381 | $28 239 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184 666 | $218 525 | $252 384 |
| Accounts Receivable | $12 613 | $14 493 | $16 373 |
| Inventory | $2 980 | $3 450 | $3 920 |
| Other Current Assets | $1 000 | $1 000 | $1 000 |
| TOTAL CURRENT ASSETS | $201 259 | $237 468 | $273 677 |
| Long-term Assets | |||
| Long-term Assets | $10 000 | $10 000 | $10 000 |
| Accumulated Depreciation | $12 420 | $14 490 | $16 560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198 839 | $232 978 | $267 117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9 482 | $10 792 | $12 102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9 482 | $10 792 | $12 102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9 482 | $10 792 | $12 102 |
| Paid-in Capital | $30 000 | $30 000 | $30 000 |
| Retained Earnings | $48 651 | $72 636 | $96 621 |
| Earnings | $100 709 | $119 555 | $138 401 |
| TOTAL CAPITAL | $189 360 | $222 190 | $255 020 |
| TOTAL LIABILITIES AND CAPITAL | $198 839 | $232 978 | $267 117 |
| Net Worth | $182 060 | $226 240 | $270 420 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4,35% | 30,82% | 63,29% | 4,00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5,61% | 4,71% | 3,81% | 9,70% |
| Inventory | 1,85% | 1,82% | 1,79% | 9,80% |
| Other Current Assets | 1,75% | 2,02% | 2,29% | 27,40% |
| Total Current Assets | 138,53% | 150,99% | 163,45% | 54,60% |
| Long-term Assets | -9,47% | -21,01% | -32,55% | 58,40% |
| TOTAL ASSETS | 100,00% | 100,00% | 100,00% | 100,00% |
| Current Liabilities | 4,68% | 3,04% | 2,76% | 27,30% |
| Long-term Liabilities | 0,00% | 0,00% | 0,00% | 25,80% |
| Total Liabilities | 4,68% | 3,04% | 2,76% | 54,10% |
| NET WORTH | 99,32% | 101,04% | 102,76% | 44,90% |
| Percent of Sales | ||||
| Sales | 100,00% | 100,00% | 100,00% | 100,00% |
| Gross Margin | 94,18% | 93,85% | 93,52% | 0,00% |
| Selling, General & Administrative Expenses | 74,29% | 71,83% | 69,37% | 65,20% |
| Advertising Expenses | 2,06% | 1,11% | 0,28% | 1,40% |
| Profit Before Interest and Taxes | 26,47% | 29,30% | 32,13% | 2,86% |
| Main Ratios | ||||
| Current | 25,86 | 29,39 | 32,92 | 1,63 |
| Quick | 25,4 | 28,88 | 32,36 | 0,84 |
| Total Debt to Total Assets | 2,68% | 1,04% | 0,76% | 67,10% |
| Pre-tax Return on Net Worth | 66,83% | 71,26% | 75,69% | 4,40% |
| Pre-tax Return on Assets | 64,88% | 69,75% | 74,62% | 9,00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19,20% | 21,16% | 23,12% | N.A. |
| Return on Equity | 47,79% | 50,53% | 53,27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4,56 | 4,56 | 4,56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19,7 | 22,55 | 25,4 | N.A. |
| Accounts Payable Turnover | 14,17 | 14,67 | 15,17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1,84 | 1,55 | 1,26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0,02 | -0,04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120 943 | $140 664 | $160 385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0,45 | 0,48 | 0,51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23,66 | 27,01 | 30,36 | N.A. |
| Sales/Net Worth | 1,68 | 1,29 | 0,9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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