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Handbag Business Plan Sample

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Checklist for Starting a Handbag Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Handbag business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

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Guide to Purchasing Management in a Manufacturing Business

Jim Black, the owner of a small foundry, complained bitterly one day about the amount of defective material he was receiving. "The raw material is guaranteed to meet quality specifications so as to contain less than.005% impurities. For the past three weeks, though, our castings have been turning out rougher than they should. I'm sure that last shipment of raw material wasn't as pure as it should have been. What do I do now?"

In another plant, Joe White was wondering what to do about a new supplier of electronic components he had just purchased from. "I got a good price on the first shipment, and so signed an order for two more shipments. The bill I got for this last shipment is almost $600 over that of the first. I told the supplier to take it back or reduce the bill, and he said that his quotation gave him the right to increase prices as inflation and labor expenses rose for him. I know I could get the shipment for less, else­where."

Both these situations highlight the need to follow good purchasing procedures to reduce the incidence of such problems.

In this guide you will review the activities which lead to effective purchasing.  Specifically, you will explore the procurement cycle which concerns decisions on:

how to determine the firm's purchasing needs

finding a supplier who will best satisfy purchasing needs

negotiating and making the purchase

communicating the purchase decision to the supplier and to relevant personnel within your firm, and

a follow-up procedure for evaluating your purchasing decisions

What is the function of a buyer in a manufacturing firm? At first glance, it may seem to be to find and purchase a quantity of material for the best price. But price is not the only con­cern. Low-priced material may not be a bargain if it is of unacceptable quality or if delivery is not reliable.

Clearly, the purchasing function involves more than obtaining the best price. It also involves buying the best value, which means buying:

the right quantity and quality

at the best price

from suppliers who are reliable and provide good service

One way to obtain the best value on a purchase is to set purchas­ing objectives and carefully follow the procurement cycle. This is explained later in this section.

Purchasing Objectives

It is often helpful to state the goals of purchasing for your business. In this way, you will never lose sight of the purpose of the purchasing function and will be able to make more intelli­gent purchasing decisions.

Here is a sample list of purchasing objectives:

to provide an uninterrupted flaw of materials and services for company operations

to find reliable alternative sources of supply

to buy at the most economic order quantities

to buy the best value: a combination of right quality at the best price with the best supplier service

to maintain good relations with vendors

The Procurement Cycle

Effective procurement consists of a series of steps which form a cycle. The steps in the cycle can be described as follows:

1. Determine needs. Before you buy anything, it is necessary to know what you need to buy and how much. It is important to remember that determining what you need involves not only quantity, but quality decisions as well. Determining and specifying appropriate quality requirements, in some situa­tions, is a more difficult task than deciding what quantity to buy.

2. Select the supplier(s). When there are many suppliers to choose from, it is not simple to choose those who will give the best value - not only in price but in service, and consistent quality as well. Selection of suppliers may also mean finding more than one acceptable vendor if the purchased product is so important that you would suffer substantial losses if it were not available. In such a situation, in case the primary supplier cannot meet your needs as a result of a heavy workload, strike, unavailability of raw materials, etc.

When deciding to use more than one supplier, you have to weigh these advantages against the possible disadvantages of higher price and poorer service when you buy smaller quantities from two vendors rather than larger quantities from a single, reliable one.

3. Negotiate the purchase. In addition to specifying quantities and obtaining agreement on price, this can involve guarantees, method of payment, containers and packaging, delivery dates and other details of the purchase. Proper documentation of the purchase agreement is part of negotiation and assures that any questions or disputes that may arise will be settled in line with your expectations.

4. Follow-up. Here you look at the quality of product and service as well as the accuracy of quantities to determine what improvements, if any, are needed for the future.

Determining Purchasing Needs

Determining Quantity

The quantity of material you will need to buy depends on:

a. how much material you will use in production

b. how much may be lost through damage or defects

c. what you have in inventory when you place the order, and

d. the average inventory you are willing to carry

To hold total costs of materials, including purchase price and inventory carrying costs, as low as possible, it is desirable to separate purchased components into A, B, and C categories.

These categories are determined by the characteristics of the materials, their use, and their supply. The more erratically used, expensive, perishable and/or exceptionally bulky class "A" components are generally kept under tight inventory control. Status of these components is reviewed frequently and they are purchased in relatively small quantities against a production schedule (see next heading - Determining Quantity Based on Production Schedule).

Class "B" components are less expensive than the "A" components and are either erratically used or perishable or bulky. They are best controlled using perpetual inventory records which show an order point and the quantity to be bought. In this way, purchasing is a fairly routine activity except during the seasonal or annual review periods when all ordering decisions are evaluated.

Class "C" components are the least important components of the inventory. These "C" components can be kept on a simple visual control system where an order is placed whenever reserve stock has to be used. These materials are usually ordered infrequently and in fairly large quantities.

Everyone Requirements To be familiar with the Decision Making Process. All of us rely on information, and techniques or tools, to assist us in our daily lives. When we head out To eat, the restaurant is the tool that supplies us with all the information required to decide what to purchase and how much to spend. Running a Business also needs making decisions using techniques and information - how much stock to preserve, what price to sell it in, what credit arrangements to provide, just how many people to hire. Decision Making Process in business is the systematic process of identifying and solving issues, of asking questions and finding answers. Decisions usually are created under conditions of uncertainty. The future is not known and sometimes even the last is suspect. This guide opens the door for company owners and managers to learn about the variety of techniques that may be utilised to boost your decision making process in a world of doubt, change, and uncontrollable circumstances. A General Approach to Decision Making Process. Whether or not a scientist, an executive of a significant corporation, or a small business owner you can gain from boosting your decision making abilities. The general solution to systematically solving issues is the same. The next 7 step approach to better management decision making may be used to examine virtually all issues faced by a business. State the problem. A issue first has to exist and be realized. What's the problem and why is it a issue. What is ideal and how do current operations vary from that ideal. Describe why the symptoms (what is going wrong) and the causes (why is it going wrong). Try to define all terms, theories, factors, and relationships. Quantify the issue to the extent possible. If the issue, not accurately and quickly filling customer orders, attempt to ascertain just how many orders were incorrectly filled and the length of time it took to fill them. Define the Objectives. What are the goals of the analysis. Which objectives are the most critical. Objectives are said by an action verb like to decrease, to increase, or to improve. Returning to the customer dictate problem, the significant goals would be: 1) to raise the proportion of orders filled correctly, and 2) to reduce the time necessary to order and process. A sub-objective could include to simplify and streamline the order fulfilling process. Grow a Diagnostic Framework. Next establish a diagnostic framework, that is, determine what approaches are going to be utilized, what kinds of information are required, and also how and where the information is to be found. Is there likely to be a consumer survey, a review of company documents, time and motion tests, or some thing else. Which are the assumptions (facts assumed to be correct) of the study. What are the standards used to evaluate the study. What time, funding, or other limitations are there. What kind of quantitative or other specific processes will be used to analyze the information. (Some of which will be covered shortly). In other words, the diagnostic framework establishes the extent and methods of the whole study. Collect and Analyze the Data. The next step is to gather the information (by following the methods created in Step 3. Raw information is then tabulated and organized to facilitate analysis. Tables, charts, graphs, indicators and matrices are a number of the standard tactics to arrange raw data. Analysis is your critical requirement of audio business decision making. What does the data show. What facts, patterns, and trends could be viewed in the information. Many of the qualitative methods covered below can be used during the step to determine facts, patterns, and trends in data. Of course, computers have been used extensively during this step. Generate Alternative Solutions. After the analysis was completed, some specific conclusions about the character of the issue and its resolution must have been reached. The next step is to develop alternative solutions to the problem and position them in order of the net benefits. But how are choices best generated. Again, there are some well established techniques such as the Nominal Group Method, the Delphi Method and Brainstorming, amongst others. In all these methods a group is involved, all of whom have examined the data and analysis. The method will be to get an informed group suggesting a variety of feasible solutions. Develop an Action Plan and Implement. Select the ideal solution to this problem but be sure to understand clearly why it is best, which is, how it achieves the objectives established in Step 2 greater than its options. Then create an effective method (Action Plan) to implement the solution. At this stage an important organizational consideration arises - who will be responsible for seeing the implementation through and what authority does he have. The chosen manager should be responsible for seeing that all deadlines, tasks, and reports are performed, fulfilled, and composed. Details are all important in this step: reports, programs, tasks, and communication are the key elements of any activity program. There are lots of methods available to decision makers implementing an action plan. The PERT method is a method of laying out an entire interval like an action program. PERT is going to be covered soon. Evaluate, Acquire Feedback and Monitor. Following the Action Plan has been implemented to Solve a issue, management must evaluate its own effectiveness. Assessment Standards have to be determined, feedback stations developed, and observation performed. This Step ought to be performed after 3 to 5 weeks and at 6 weeks. The target is to answer the bottom line question. Has the issue been solved?

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Home » Business Plans » Fashion & Style

How to Write a Handbag Manufacturing Business Plan [Sample Template]

Are you about starting a handbag manufacturing company ? If YES, here is a complete sample handbag manufacturing business plan template & FREE feasibility report. A Handbag Manufacturing business is a wonderful business to start even from the comforts of your room. It can also be started and managed on a part-time basis, and there are also almost no operating overheads to eat into monthly profits. Do not get carried away as this industry is very competitive.

But creating unique designs and making use of uncommon materials can be your competitive advantage and you can sell your products wholesale to fashion retailers or placed on consignment in local retail shops. You can also sell them directly to consumers by displaying the products at fashion or craft shows and selling them online.

The growing competition in the fashion industry has brought about innovations; this in turn has highlighted the swag handbags bring to the wardrobe of both men and women. Meanwhile the fashion and luxury market has a direct impact on the different designs that trend in the handbag industry, as one complements the other.

Starting this business would indeed provide you with the opportunity to make money from doing what you love. This business is ideal for anyone who enjoys creating fashion and helping people achieve their fashion dreams.

But note that your customers will differ based on the style of your bags. They may be for young hip teens and women in their early 20s, or they may be for career women in their 30s and 40s. You could also make large baby bags for mothers or tote bags for beach-goers.

A Sample Handbag Manufacturing Business Plan Template

Table of Content

1. Industry Overview

3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strateg, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.

Reports have it that the united states handbags and accessories market has continued to enjoy uninterrupted growth, but the current slowing growth rate is a concerning threat. Competition is strong in the handbag industry, with a number of big apparel players operating in this segment.

One of the main factors attributed to slowing growth in this industry is the unstable shift in consumer preference from larger bags to smaller ones, which are sold at lower prices.

Another thing affecting this industry is the growing interest of shoppers who prefer to spend more on entertainment and on other services, instead of goods like clothing and accessories. Then when consumers finally decide to spend on bags and accessories, they tend to shy away from big brands, and moving towards more distinctive ones.

Handbags are unique bags carried on the shoulder or in hand, and these products are often designed to accommodate a large amount of contents. Stats have it that the four most popular handbag styles, in terms of the number of internet search queries, are totes, clutches, saddlebags and satchels.

This segment’s share of industry revenue has expanded over the past five years as demand for luxury handbags has grown in most regions of the globe, including strong demand from developing nations like China and india.

The global exchange brought the world market for handbags to $101 billion. The U.S. market for handbags, luggage, and accessories climbed to $9.6 billion, up 3.3% annually from the five years to 2014. The industry is expected to reach $11.8 billion by 2019, growing 4.3% year-over-year.

Also note that a strong growth for men’s handbag has been projected to boost industry sales. It is believed that male gender norms are softening, allowing American men to follow their European counterparts and carry bags without fear of being mocked. This increased acceptance has allowed the men’s bag market to explode, with male bag purchases increasing to 26% in the last year.

2. Executive Summary

Yolture Inc. is a new embroidery fashion line in Detroit that manufactures handbags, clothing and other embroidery materials targeted at males and females between the ages of 18 and 45. Our business will not only develop a unique fashion line, but also to support it extensively with advertising and promotion campaigns. We plan to solidify our partnership with retailers by establishing brand awareness and creating a massive corporate identity in the fashion and luxury industry.

Our plan is to market our line as an alternative to existing fashion lines, and differentiate ourselves through our diverse marketing strategies, exclusiveness, and high brand awareness. We plan to build a fashion line that is classy, innovative, upscale, versatile, and expensive. We have created a diverse promotional plan that includes a range of marketing communications.

Yolture Inc. was formed as a Michigan C-Corporation with principal offices located in Detroit. Note that all our business operations, from administration to marketing strategies, take place at this office location of approximately 487 square feet.

Our business strategy at Yolture Inc. is to aggressively develop and market a full range collection to our target audience. We hope to market our fashion line as an alternative to existing clothing lines and set ourselves apart through our unique marketing strategies, exclusiveness, and brand awareness.

We plan to establish core portfolio of products and overcome any industry challenge by using our company’s expertise in the fashion industry. Our business goal in the coming year is to create an indelible impact in the fashion industry and establish a huge consumer demand for the product.

We have also established an alliance with Pop Lane Entertainment, an entertainment company in Detroit with over 65 artists. We believe that this alliance is very valuable to us at Yolture Inc. because it provides us with the needed exposure and helps us to associate with celebrities. Celebrities are valuable assets because they receive free bags for interviews, concerts, and music videos.

We at Yolture Inc. will offer our clients assorted handbags and many other embroidery services. Our inventories will include shirts, sweatshirts, jackets, hats, sports apparel, and other clothing items with our key suppliers being Denim, Angelo Litrico and Concord collections. We plan to enhance these items through custom embroidery, silk-screening, monogramming, and lettering.

We can also design an insignia or logo and customize the chosen apparel with our standard stitching and silk-screening equipment for large or small orders from individuals, groups, teams and businesses. Our services will be priced at the high end to reflect the quality and exclusiveness associated with the brand.

We at Yolture Inc. plan to make use of high-end materials such as cashmere, a wool blend, and high gauge denim. We believe that when a mark up is placed on our products, customers are willing to pay the premium because of the value and quality guarantee that comes with them.

• Our vision at Yolture Inc. is to build a massive fashion line that will provide unique handbags, custom printing, and embroidery services to the general public.
• Our mission at Yolture Inc. is to provide an alternative choice for consumers, based on style and quality.

Our Business Structure

Yolture Inc. is 50% owned by Martha Lina and 50% owned by Thomas Queens. It’s very important to state that Martha Lina is the most active and hands-on of the two owners. Martha Lina comes from a retail management background with enough experience in the fashion industry; especially embroidery, silk-screening, and promotional products.

Our management philosophy at Yolture is based on responsibility and mutual respect. We plan to establish an environment and structure that encourages productivity and respect for customers and fellow employees.

We also plan to hire workers that are very qualified, truthful, customer centric, good communication skills and are open to help us build a business that can compete in the industry. We plan to employ qualified and competent hands to occupy the following offices;

Chief Executive Officer

Managing Director

Admin and HR manager

• Fashion designers

Marketing and Sales Manager

Information director

• Company accountants
• Sales representatives

Security guard

• She will be tasked with providing work direction for the business
• Charged with building, communicating, and implementing the vision, mission, and direction of the business – which also includes leading the achievement and implementation of the all the business strategy.
• Responsible for fixing prices and signing business deals for the business
• In charge of employment
• Tasked with paying workers salary
• Responsible for Signing checks and documents for and on behalf of the business
• Evaluates the success of the organization
• In charge for managing the daily activities in the company
• Make sure that the facility is in very good shape and conducive enough for employees
• Connects with third – party providers (vendors)
• Tasked with supervising and training new staff members
• Any other duty as assigned by the CEO
• Tasked with overseeing the running of HR and administrative tasks for the company
• Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• State job positions for recruitment and managing interviewing process
• Organize induction for new team members
• Tasked with training, evaluation and assessment of employees
• Tasked with arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Fashion Designers

• Tasked with working through the design process from research sketches and ideas to resolved designs for specific techniques;
• Use hand and machine techniques to produce samples and finished works;
• Use a variety of traditional and contemporary materials to interpret designs;
• Planning the layout of specific designs
• Oversee external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Creates demographic information and analyze the volumes of transactional data generated by customer purchases
• Understand, prioritizes, and reaches out to new partners, and business opportunities et al
• Understand development opportunities; follows up on development leads and contacts
• Keep all customer contact and information
• Represents the company in strategic meetings
• Aid to increase sales and growth for the business
• Tasked with the organization’s website
• Takes care of the ecommerce aspect of the business
• In charge for installing and maintenance of computer software and hardware for the organization
• Take care of the logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Takes care of the organization’s CCTV
• Handles any other technological and IT related duties.

Company accountant

• Tasked with preparing financial reports, budgets, and financial statements for the company
• Gives the managements with financial analyses, development budgets, and accounting reports
• Tasked with financial forecasting and risks analysis.
• Understand cash management, general ledger accounting, and financial reporting
• Tasked with developing and managing financial systems and policies
• Tasked with administering payrolls
• Ensuring compliance with taxation legislation
• Take care of all financial transactions for the business
• Serves as internal auditor for the organization

Sales Representatives

• Quickly attends to customers in a friendly and professional manner
• Explain all available services to customers
• Takes care of any other duty as assigned by the Chief Operating officer/managing director
• Delivers customer’s orders on time
• Delivers correspondence for the facility
• Runs errand for the business
• Any other duty as assigned by the facility manager
• Tasked with cleaning the restaurant facility at all times
• Make sure the toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the manager.
• Tasked with protecting the agency and it’s environs
• Controls traffic and organize parking
• Give security tips when necessary
• Patrols around the building on a 24 hours basis
• Presents security reports weekly

Agreeably, the fashion industry is mature and slow growing, but in it exists a dynamic and competitive environment. That is to why to improve profitability, a lot of companies are restructuring to create leaner organizations and adopt new innovative technologies.

Report has it that consolidation has been prevalent in this industry in the past few years, as larger companies gain leverage in market position and cost cutting. Most companies in this business operate as retailers or manufacturers (wholesalers) or both.

We have analysed our business and we have ensured that we are prepared for anything. We employed the services of a renowned Consulting firm to aid with our SWOT Analysis. Outlined below are the results presented to us at Yolture Inc.

• Our Business location is unique and growing
• Yolture Inc. has no local competition within a 45-minute radius
• We have created an impeccable customer service tradition
• All our vendors have reputation for high quality products and custom workmanship
• We plan to take smaller jobs some of our competitors will not accept
• The industry has slowed down financially over the past three years with the economic downturn
• Our prototype website may not have the ability and sophistication to compete with other competitor websites
• Cash flow for publicity is impaired
• Business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)

Opportunities

In our business location at Detroit, the population of young professionals, artists, and other celebrities is growing and retail is expanding. This dynamic is luring new residents, and former residents returning from other cities, to the city’s Downtown.

Also note that the desire to be closer to the urban scene has also attracted some young professionals to inner ring suburbs such as Ferndale and Royal Oak, Michigan. This is a huge opportunity for us at Yolture Inc.

• Prolonged economic downturn that affects the rebound of area businesses and limits discretionary income
• Industry wide technological advances that could render existing store equipment obsolete
• A new competitor opening in the immediate area

7. MARKET ANALYSIS

• Market Trend

In recent years, major companies in fashion design and production have all showed huge interests in dated prints that include beautiful embroidered details- both large and small. Also personalization is beginning to gain momentum in the industry. Personalization gives clients the chance to add a touch of originality and personality to ordinary items and now customers can do this without leaving their houses.

The industry has just welcomed new personalization based software like Wilcom’s Kiosk, or online web personalization like Wilcom’s web API. It simply means that everyone can decide to personalize their fabrics at home.

Experts do not expect the economy and consumer spending to sustain growth forever, it is expected that the overall fashion industry will continue to post-modest gains. Among cloth makers, it is expected that the best performances will come from companies with strong brand recognition.

Also as more and more companies have adopted casual attire in the workplace, the trend toward casual dressing will continue. This has sustained the need for men and women to establish new wardrobes which includes bags and purses.

Report has it that this has had more effect in the men’s segment, as evidenced by the higher growth rate in sales of that segment in the past year. According to industry experts, branded clothing companies that sell to the department store channel of distribution will grow somewhat faster than the overall industry.

In addition to favourable demographic trends, this segment is benefiting from its strength in design and marketing, which has led to a high consumer awareness of and demand for branded clothing.

We at Yolture Inc. plan to target males and females between the ages of 18 and 45 with a combined household income of more than $38,000. Note that within this group, there are no colour barriers. We believe that our customer at Yolture Inc. is a versatile individual who can fit into any environment and is willing to pay a high price for quality products.

Our target market at Yolture is seen as having enough disposable income to spend on high priced quality clothing. We believe that as growth slows in the mature U.S. Fashion markets, companies are increasingly looking overseas for growth opportunities.

American brands translate well internationally, and many expanding economies overseas are interested in buying U.S. products. International business has therefore become a focus of some U.S. companies. We have considered that option and are inclined to soar high as we expand.

Our competitive advantage

In a market where prospective clients are barraged by advertising and marketing campaigns delivering an onslaught of lifestyle and fashion messages, a corporate identity is a powerful weapon. Note that having a brand is becoming an increasingly important factor in the fashion industry.

A lot of consumers have less time to shop and are spending their disposable income more carefully. Well-known brand names, with their quality image, make the shopping experience easier and faster for many consumers.

For manufacturers, brands build consumer loyalty, which translates into repeat business. Our Business title=”business name” data-wpil-keyword-link=”linked”>business name is not attached to any particular group of customers and it allows entry into different segments of the industry. Also another advantage we possess at Yolture Inc. is our extensive marketing strategies. We believe that that through the use of celebrities, advertising, promotion and giveaways, we can be able to develop its presence in the market.

•  Sources of Income

We at Yolture Inc. will make profits from providing our clients with assorted handbags and many other embroidery services. Our inventories will include shirts, sweatshirts, jackets, hats, sports apparel, and other clothing items. We will also generate income by providing graphic design services to customers that are in need of logos or designs.

We believe that these designs and logos can be purchased as a stand-alone service or for embroidering onto apparel and promotional products. We will also make money from selling embroidered apparel and promotional products to customers. We believe our business will be able to generate margins of 50% on each dollar of sales.

The United States fashion industries are experiencing intense competition and pricing pressures, while facing the need for constant product innovation. Also note that these industries are enjoying a great economic cycle, with low interest rates, low unemployment, strong consumer confidence, and a low savings rate.

Consumers are continuing to spend at a healthy clip. We at Yolture Inc. believe that maker’s with strong brand recognition and those that are closely in tune with consumers’ needs will enjoy average growth. We have established plans to provide our clients with impeccable products and services and we make our assumptions after undertaking extensive research and in good faith. Below are the sales assumptions for Yolture Inc.;

• We project a sales increase of 37% in 2019 due to the addition of a commissioned outside sales representative in July 2019
• We expect a sales increase an additional 30% in 2023 due to the continued effect of adding a commissioned outside sales representative in 2019
• We also forecast a sales increase an additional 15.0% in 2023 due to the continued effect of adding a commissioned outside sales representative in 2019
• The relationship of apparel sales to total sales continues at its present level of 47%
• We expect the cost of apparel continues at its present level of 32% of apparel sales
• We forecast relationship of customization sales to total sales continues at its present level of 35%
• We estimate the cost of customization continues at its present level of 42.5% of customization sales
• We project that the total gross margin remains constant at its three-year average of 52.5%
• Marketing Strategy and Sales Strategy

We at Yolture Inc. plan to create a sales team that will be charged with generating sales leads on a regional and national basis. These individuals will also be responsible for establishing connections with retail outlets. We plan to make our distribution channels a key part of our business success.

We were able to find out that our target audience buys clothing and footwear from a variety of retail outlets. Differences exist in the distribution mix for men’s, women’s, and children’s items. For instance, more women’s fashion items are purchased in specialty and department stores than is the case for men’s fashion.

Men’s items are more prevalent in discount stores and general merchandise chains. In the children’s segment, a considerably higher portion of items are purchased in discount stores. We at Yolture Inc. have analyzed these and have made plans to satisfy our diverse customer base.

Catalogues are another important method of distribution. Most customers will have less time to shop, and for some, catalogue shopping offers a more convenient and pleasant alternative. Another distribution channel we at Yolture Inc. plan to use is the Internet.

Costumers prefer the convenience of being able to shop from anywhere and at any time they wish. Manufacturers with Internet sites use them for marketing and informational purposes. With expected technological advances in hardware, software, and data pipelines in the future, shopping for fashion items online will keep growing.

Our plan at Yolture Inc. is not only to develop a unique fashion line but to support it with advertising and promotion campaigns. Just like we stated above, we plan to strengthen our partnership with retailers by developing brand awareness. We hope to build Yolture into a fashion line known to be classy, innovative, versatile, and expensive fashion items. Our promotional plan at Yolture Inc. is diverse and includes a range of marketing communications:

• Public relations: We plan to issue press releases to both technical trade journals and major business publications such as Playboy Magazine.
• Trade shows:  Our sales representatives will attend and participate in several trade shows such as Kinky in New Orleans.
• Print advertising:  Our print advertising program at Yolture Inc. includes advertisements in magazines such as Flop, and Fashion Pages.
• Internet:  We plan to establish a presence on the Internet by developing a website. Plans are underway to create a professional and effective site that will be interactive and from which sales will be generated worldwide.
• Other:  We also plan to leverage other channels including billboards, radio and television commercials, and a street team.

Agreeably, we at Yolture Inc. have no local competition but we understand that we must compete with internet retailers who offer similar products and services at slightly lower prices. But we believe that our target audience will buy based on superior quality and product wear, excellent customer service, and local business location.

We also know that businesses in our business scope make their money from the interest and commissions they offer their services and products. We hope to keep our prices at the average market rate for the meantime, but will increase as our identity in the market increases.

• Payment Options

Our plan at Yolture Inc. is to create payment methods that will suit our diverse clients. We have also partnered with a renowned banking platform to help serve our clients very well and comfortably. We hope to make available the following payment options for our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment through POS
• Payment through PayPal
• Payment via check
• Payment via bank draft
• Payment with cash

13. Startup Expenditure (Budget)

Our Business strategy at Yolture Inc. is to aggressively develop and market a full range collection to consumers. We plan to market our fashion line as an alternative to existing fashion lines and differentiate our business using our marketing strategies, exclusiveness, and brand awareness.

We also plan to build on our core portfolio of products and overcome any obstacles by using our expertise in the clothing industry. The financial projection and costing of Yolture Inc. is outlined as follows;

• Cost of incorporating the Business – $750.
• Cost for basic insurance policy covers, permits and business license – $10,000
• The cost of acquiring a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $55,000
• The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $12, 000
• The Cost of Launching our official Website – $600
• Our budget for paying at least three employees for 6 months plus utility bills – $36,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Our Inventory fund – $2,000,000
• Miscellaneous: $1,000

From our cost analysis above, we will need $122,850 and our $2million inventory fund to start Yolture Inc.

Generating Funding/Startup Capital for Yolture Inc .

Yolture Inc. is 50% owned by Martha Lina and 50% owned by Thomas Queens. It’s very important to state that Martha Lina is the most active and hands-on of the two owners.  Martha Lina comes from a retail management background with enough experience in the fashion industry; especially embroidery, silk-screening, and promotional products.

Our two founding owners will prefer to fund the business privately for now, but are likely to source for external funds as the business grows. The company will also seek a substantial long-term business loan for the purpose of developing the fashion line.

This funding will cover operating expenses and product development leading to the launch in July 2019. Our Management have been able to raise $1million from the two founding partners ($500,000 each). They have been able to raise this amount through their individual savings and few soft loans from their families.

We at Yolture Inc. plan to use a direct sales force, retailers, and the Internet to reach our target markets. We believe that these channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

We also plan to use a consolidated warehouse before acquiring a warehouse of our own. Note that as companies in these mature industries continually look for ways to compete effectively, U.S. Fashion wears manufacturers have increasingly moved their production facilities to lower-cost locations outside of the United States.

Even though some manufacturers have moved their operations completely offshore, others are keeping together a few production facilities in the United States to manufacture products requiring a quick turnaround time.

Although manufacturing in Asia remains substantial, the growth of clothing manufacturing in Mexico and the Caribbean has been significant due to the North American Free Trade Agreement (NAFTA) and the lowering of tariffs. Items assembled in Mexico and the Caribbean nations from fabric formed and cut in the United States accounted for 39% of all apparel imports in 2015, up from 27% in 2013.

We understand that with an improved economic outlook, Asian currencies have strengthened against the U.S. dollar over the past year. Though this has benefited U.S. exports somewhat, it has put pricing pressures on imported Asian goods. For the vast amount of goods manufactured in China, however, no such benefit is currently expected, as this country’s currency has remained fixed in value versus the U.S. dollar.

Checklist/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

More on Fashion & Style

Handbags Business Plan

Nov 23, 2021

Table of Contents

MAJJ is a multi-functional company that caters to market needs. We provide our clients with the most up-to-date styles as well as the outstanding service they deserve (without making them pay an arm and a leg for them). Clients will no longer opt to shop elsewhere for their handbag requirements because of its trend and quality. MAJJ Handbags will provide a well-maintained and strong relationship with our clients since it keeps up with the latest fashion trends.

Our team devised a clever solution to a common issue based on a student survey: if the females do find a similar bag, it will be much more expensive than MAJJ bags. Many people would at least stop and look at these bags if we sold them (either at faculty or at the mall). They are trendy and inexpensive, so many of these people would purchase them.

Demand Satisfaction

To accommodate consumer demand, we’ve opted to create the items by hand to keep the cost down. Using gently worn long-sleeved t-shirts might also help to reduce the rate. Furthermore, our first priority will be to allow us to market our items during school lunch. Zombies, cats, lions, and dogs will be among our creations.

Model of Organization

Because we are fresh to the business world, MAJJ Handbags will work harder than the competition. Because we don’t know the routes, we’ll be forced to slow down, examine our errors, and correct them, raising the value of our products beyond what they are today.

Profitability

MAJJ Handbags has the potential to be a high-ranking valuable company. Our firm is expected to make at least $500,000 by the end of the year.

After we’ve paid all our bills, we’ll have $300 in our pocket. The majority of this will come from sales at colleges and shopping malls.

profits. If our business takes off and people start buying more of them, we’ll start designing bigger designs, hiring more people (paid labor), and selling them online.

Statement of purpose

We will strive to take in more females between the ages of thirteen and twenty by providing recycled, high-quality, over-the-shoulder luggage at a lower cost than our rivals.

After starting revenue at our school and the Northwest Arkansas mall at the World Trade Expo, we made a $245 greenback profit.

The idea for MAJJ handbags began during the World Trade Expo. We were determined to find a solution to reduce the cost after seeing how much of a demand there was for a low-cost, ecologically friendly handbag.

,,, thought that Northwest Arkansas would be a good spot to start selling since our area has hundreds of female students that want a bag for college and other activities.

MAJJ is now accepting orders to generate product samples. We have a method for making the bags, but after looking at the cost of supplies, we’ve individually decided to contribute a certain amount of money up front so that we may continue shopping for the materials we’ll need. The funds will be used to pay the initial costs of materials and other items necessary to prepare for the World Trade Expo in November.

Because we only carry the designs that are now “in” and at a cheap cost, demand for our goods will continue to grow. We’ll stay up to date on new trends and characteristics and adjust our baggage appropriately. Because our luggage has the most fashionable designs, our target market will follow us.

Goals and objectives

Non-Monetary

Only high-end bags are offered.

Showcase our goods to the people that will be interested in it.

As a team, we must do our best and support each other’s efforts.

Participate at the World Trade Expo Monetary Forum if you are chosen.

When the World Trade Expo is over, expect to earn at least $245.

We put $55 of our own cash aside.

After the Expo, keep selling bags to earn $200 in two months.

Describe the product

MAJJ handbags are stylish and fashionable. Small, medium, and big are some of the sizes available. MAJJ handbags are available in a variety of unique designs, including animals and zombies.

Aspects and Advantages

Our handbags are one-of-a-kind in terms of color and fabric kind. Our bags are designed to reflect the most popular fads and trends. MAJJ purses are fashioned from fun, unique materials that “pop.” We never produce two handbags alike, so each one is unique.

Advantage in the market

MAJJ handbags have an edge over the competition since our costs are much lower than those of similar retailers. Our bags will also no longer come apart after a few days. If this is the case, the buyer is entitled to a refund.

An examination of the market and its competitors

MAJJ Handbags caters to females in their twenties and thirties who live in the United States. Clients will be pleasantly pleased to learn that our rivals’ rates are in the twenties. They will tell their friends and family about the product as soon as they have purchased it. Clients would be drawn to our goods because of the vibrant and cutting-edge colors, as well as the unique and fascinating patterns. Animal lovers and fashionistas will both appreciate these bags.

The Target Market’s Characteristics

Trendy and stylish

New fads are something that you should be aware of.

Affordability

Female teenagers.

Despite the fact that we have several rivals, our pricing are unbeatable. The majority of these foes may be found at or around the Northwest Arkansas Mall. Low-quality messenger baggage is also available at Wal-Mart and Target. To save money, a number of purchasers have attempted to make their own bags. Several websites sell bags, however they come at a greater price owing to shipping and handling costs.

Team of Directors

CEO- was born in Harrison, Arkansas, and is now the Chief Executive Officer.

In the year 2008, he relocated to Farmington. She is in the eighth grade and attends Middle School.

I was in seventh grade when this happened. In addition to Builder’s Club and GT, she is concerned about a number of activities at school. She likes to analyze and volunteer in lifestyle ministries. Currently, she is living with.

, the Chief Marketing Officer, was born in the little town of Ashdown in the state of Arkansas. She is a seventh-grade student at Middle School. is concerned about the

Builders Club, baseball, and figure skating are just some of the activities available. Currently, she is living with.

Missoula, Montana native, is the Chief Operating Officer. She is a seventh-grader at Middle School. is concerned about the

Band, track, basketball, and GT are just a few of the many activities available. Currently, she lives with.

CFO- (Chief Financial Officer) was born in Fayetteville, Arkansas, and

Her whole life has been spent in that location. She is in the sixth grade at the time of this writing.

appreciates solving mathematical puzzles. She is concerned about G.T. and is a member of the Dance Team at school. resides with right now

Structure of the Company

MAJJ purses currently employs four people, all of whom are also Co-Founders. and make all choices together as a group, and value each other’s contributions

viewpoints of others We all work together to manage this company, and we treat each other fairly.

Marketing Strategies (Part VI)

Our product is handbags, which MAJJ handbags provides. Young people and women in their early twenties are our target demographic. They’re constructed from a variety of designs on discarded t-shirts.

We decided that with the one-of-a-kind designs, we would sell our recycled handbags for $7-10 based on our own thoughts and the opinions of our peers. Many of the children and instructors we spoke with said they would purchase them if they were wandering through a mall. Our prices are much lower than those of our competitors. Because we utilize “gently worn” long-sleeve shirts rather than new shirts, this is possible.

Our product will be sold and distributed via four major channels. The internet will be the first place we market them. This, we believe, will aid in the public awareness of our goods. Then, during our lunch break, we’ll start selling it. We hope that by having our peers buy it, we will be able to help spread the message. After that, we’ll promote them in our own churches. If we’re accepted, we’ll use the Northwest Arkansas Mall to market our goods.

Hazards of Importance

We can be profitable because MAJJ has power. To our customers, we’re marketing a genuine product. Only a few retailers sell ecologically friendly bags, and even if they do, their prices are too high to compete with ours. Our crew has worked for or volunteered for a variety of companies. We have parents and experts who provide us with guidance and assistance at every turn. Our colleagues also shared their opinions on what they believe might benefit our community.

We aren’t well-known since MAJJ is just getting started. We will spend money on advertising in order to fulfill this challenge. Posters, brochures, and business cards are among the materials available. Because there are just four of us, we are also at a disadvantage. We’ll strive to be the best we can be. We will compete and produce as much baggage as possible, despite the fact that large corporations have hundreds of people.

Opportunities

The large target market at our campus and at the Northwest Arkansas Mall is one idea that has emerged as evident. Teenagers are prone to purchasing something appealing at a cheap price. Our handbags are stylish and contemporary, and they may flaunt them in front of their friends and family. No one is currently providing luggage to college students during school hours, giving our product a competitive advantage.

Despite the fact that we have few competitors, anyone could come up with the same idea and sell it in a well-known store. To compete, other stores should lower their style purse expenditures. New fads may come and go faster than we can keep up with them, causing our product to become obsolete.

Needed funds

Each MAJJ member will contribute a small sum of money in order for MAJJ Handbags to begin production. We will present our business mission to viable traders once we are up and running and profitable (parents and grandparents.) To begin the bag-making process, we’ll need a few items, including an old long-sleeve T-shirt (gently used), a sewing machine, unique fabric, and embellishments like buttons, jewels, and zippers. We will also purchase or make desk decorations and promotional flyers. All of these will re-create our stylish and fun logo.

Statement of Income

Income Statement for MAJJ Handbags

Revenues for the fiscal year ended December 21, 2012:

Gross Profits

Cost of Goods Sold is a term used to describe the amount of money spent on

Profitable Revenue

Supplies are a part of the operating costs.

Decorations $25

$5 per set of business cards

$35 in total operating costs

$245.00 in profit

Each member of our team contributed $13.75 to help pay for materials that will assist us in starting to make our handbags. A total of $55 in loans should be repaid.

Goods and Services Pricing The amount of money we put into the production of our product when it is sold is the amount of money we invest all at once. This includes items like buttons, trim, beads, fabric, and gently used long-sleeved t-shirts, among other things. A further $35 will be spent on decorations and publicity.

Analysis of Break-Even

Expenses/sales MAJJ Handbags Prize = the number of bags required to break even.

To break even, you’ll need 8 MAJJ Handbags at $55 each.

Explanation: The $65 represents the loan we need from JBU Sife, as well as the money we’ll need to repay ourselves and/or the people we borrowed money from. The original amount for our expenses was $55, but the extra $10 was added to account for any unforeseeable fees associated with the $100 loan from JBU. Our $7 animal purses are expected to sell the most, while our $10 zombie handbags are expected to bring in the least money.

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Home » Fashion

How to Start a Handbag Line Business in 2023 [Business Plan]

A handbag line business is a business that designs and produces a collection of handbags for a target demographic or market. These handbags are sold in retail locations and/or through online stores. It will also be right to say that a handbag line is any business that designs  handbags, selects materials, and outsources the manufacturing process.

A recent report published by Fortune Business Insights shows that the global handbag market size was USD 47.57 billion in 2020. The market is projected to grow from USD 49.63 billion in 2021 to USD 78.46 billion in 2028 at a CAGR of 6.7% in the 2021-2028 period. So also, the luxury handbag market size was valued at $58.3 billion in 2018 and is expected to reach $89.9 billion by 2026, registering a CAGR of 5.6% from 2019 to 2026.

Steps on How to Start a Handbag Line

Table of Content

Conduct Market Research

Choose a memorable business name, register your business, cost analysis and budgeting, write a business plan, marketing plan, financial projection, set up your shop , hire employees, launch the business proper.

The first step in the market research process for your handbag line is to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source information that will help you maximize your business, information that will give you reliable data of what your potential market will be looking out for from a handbag line, and also to help you operate your handbag line with less stress and of course, build the business to profitability within the shortest time frame.

a. Who is the Target Market for Handbag Line?

If you are thinking of opening a handbag line then you should make target demographics all-encompassing. It should include boutiques, bag stores, male and female, socialites, students, entrepreneurs, and every adult in the neighborhood where your handbag line will be located.

b. Is Handbag line a Profitable Business?

Yes, the handbag line business is quite profitable. As a matter of fact, a rise in working women globally is increasing sales of luxury handbags. A global increase in the population of working women is leading to more disposable income, and disposable income is always great for luxury fashion.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to handbag lines. Here are some of them;

• Regular handbags (mass production)
• Customized (craft) handbags
• Luxury and high-end handbags.

d. Who are the Major Competitors?

• GFG Bag Manufacturer
• Clutch Made
• Baikal Inc.
• The Custom Bag Company
• Portchester USA
• Duro Bag, A Novolex Brand
• Giggle Handbag
• Paul Mueller Company
• D. Handbag Factory
• Florence Leather Market
• Niccoli Bags
• True Trident Leather
• Hari Om Leather
• Minh Ha Limited Company
• The Rodon Group
• GFG Bag Manufacturer.

e. Are There County or State Regulations or Zoning Laws for Handbag Line Business?

Yes, there are county or state regulations and zoning laws for handbag line businesses, and players in this industry are expected to work with the existing regulations governing such business in the county or state where the business is domiciled.

f. Is There a Franchise for Handbag Line Business?

Yes, there are franchise opportunities for handbag lines. Here are some of them;

• Handbag Clinic International
• Couture Traders
• Prakriti Maitri.

g. What Do You Need to Start a Handbag Line Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Production Facility and Showroom
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Equipment, Machines, and Raw Materials
• Startup and Working Capital

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a handbag line business are;

• Pinky Lady® Handbag Line, Inc.
• Classic Woman® Handbag Line, Inc.
• Bag Nation® Handbag Line, Inc.
• Tina Couture™ Handbag Brands, Inc.
• Esther Lane® Handbag Line, Inc.
• Savannah Designs® Handbag Line, Inc.
• Queen Esther® Luxury Handbag Line Company
• Cynthia Martins® Handbag Line, LLC
• High End® Luxury Handbag Line, Inc.
• Nelly B® Handbag Line, Inc.
• Ellen Taylor® Handbag Line, Inc.
• Loisa ™ Handbag Line, LLC
• Dora Decoster™ Handbag Line, Inc.
• Broadway™ Handbag Line, LLC
• Mariah Fernand® Handbag Line, Inc.
• Julia Williams® Handbag Line, Inc.
• M Clarissa© Handbag Line, Inc.
• Georgina Paulson™ Handbag Line, LLC
• Jill Newton™ Handbag Line, Inc.
• Jay Leo® Handbag Brand, Inc.

a. What Type of Business Structure is Best for Handbag Line?

Even though there are several options when it comes to the business structure for a handbag line, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Handbag Line?

• General Business License
• Seller’s Permit
• Fire and Safety Permit (Fire certificates)
• Federal Export Licenses
• Zonal Permits
• Signage Permit
• State Occupational Licenses
• Operational State Facility Inspections (Building Permits)

d. What Type of Certification is Needed to Open a Handbag Line?

You don’t need any certifications to open a handbag line.

e. What Documents are Needed to Open a Handbag Line?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a handbag line, usually you may need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to challenge anybody in court for illegally making use of your company’s intellectual properties especially as it relates to your designs or logo et al.

a. How Much Does It Cost to Start a Handbag Line?

When it comes to starting a handbag line, the startup costs vary and could range from $10,000 to over $500,000. This is so because the startup inventory and the equipment and machines needed to start either on a small or large scale will greatly influence the overall cost of starting the business.

b. What are the Costs Involved in Starting a Handbag Line

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
• Marketing promotion expenses for the grand opening of the handbag line – $3,580.
• Insurance – $2,400.
• Cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $123,300.
• Cost for facility remodeling (construction of racks and shelves) – $5,000.
• Other start-up expenses include stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for equipping the production factory – $45,000
• The cost for start-up inventory (materials, sewing supplies, packaging materials et al) – $55,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• Cost for store equipment (cash register, security, ventilation, signage) – $3,750
• The cost for the purchase of furniture and gadgets – $7,000.
• The cost of launching a website: $600
• The cost for our opening party: $3,000
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Handbag Line?

• The size of the handbag line
• The choice of location
• The required licenses and permits
• The type of handbag line business (mass production or handmade)
• The cost for branding, promotion, and marketing of the handbag business
• The cost of furnishing and equipping the handbag production facility
• The cost of the insurance policy covers
• The cost of registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the handbag line.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your handbag line, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a production facility for your handbag line will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Handbag Line?

• Rent and lease
• Supplies and inventory (materials, sewing supplies, and packaging supplies et al)
• Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
• Maintenance of machines
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Executive Officer (President) – $55,000 Per Year
• Factory Manager – $35,000 Per Year
• Merchandise Manager – $32,630,000 Per Year
• Handbag Designers – $32,000 Per Year
• Accountant (Cashier) – $30,500 Per Year
• Marketing and Sales Executives – $28,000 Per Year
• Tailors (Bag Makers) – $26,100 Per Year
• Customer Service Executive – $26,000 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Handbag Line?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

a. Executive Summary

TM Clarrisa™ Handbag Line, LLC is a registered handbag line that will be located in an industrial area in Fort Wayne, Indiana. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.

b. Products and Service

• Customized (handmade craft) handbags
• Luxury and high-end handbags

c. Mission Statement

Our mission is to build a highly successful handbag line whose brand will be known all around key cities in the United States of America and around the globe.

Vision Statement

Our vision is to be among the top 20 handbag lines in the world.

d. Goals and Objectives

The goals and objectives of a handbag line are to produce different types and designs of handbags for the general public.

e. Organizational Structure

• Chief Executive Officer (President)
• Factory Manager
• Merchandise Manager
• Handbag Designers
• Accountant (Cashier)
• Marketing and Sales Executives
• Tailors (Handbag Makers)
• Customer Services Executives
• Security Guard

a. SWOT Analysis

• Ideal location for a handbag production business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Excellent customer testimonials.
• Unique design and styles
• Financial Constraints
• A new business that will be competing with well-established handbag brands.
• Inability to retain our highly experienced and qualified employees longer than we want

Opportunities

• A rise in working women globally is increasing sales of luxury handbags. A global increase in the population of working women is leading to more disposable income, and disposable income is always great for luxury fashion.
• Online market, new services, new technology, and of course the opening of new markets
• Increase the number of the human population within our target market area.
• The arrival of a new handbag line within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses and increasing prices of gas
• Economic uncertainty
• Liability problems

b. How Do Handbag Lines Make Money?

Handbag lines make money by selling a wide range of handbags.

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Place adverts on both print (newspapers and fashion magazines) and electronic media platforms
• Sponsor relevant community-based events / programs
• Leverage the internet and social media platforms like; Pinterest, Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
• Install your Bill Boards in strategic locations all around your city or state
• Distribute your fliers and handbills to target areas
• List your handbag line in local directories / yellow pages
• Advertise your handbag line on your official website and employ strategies that will help you pull traffic to the site.
• Position your Flexi Banners at strategic positions in the location where your handbag line is located.
• Ensure that all your staff members wear your branded shirts and that all your vehicles and trucks/vans are branded with your company logo.

a. How Much Should You Charge for your Product/Service?

The price of handbags depends on the type, size, and brand of the product.

b. How Much Profit Do Handbag Line Owners Make a Year?

It depends, but the available report shows that the national average earnings for handbag line owners are approximately $51,000 per year. Handbag line profits can average between $23,751 and $140,935, depending on your location, line specifics, expenses, marketing efforts, and company size.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the handbag line
• The location the handbag line is covering (online or strictly brick and mortar)
• The management style of the handbag line
• The business approach of the handbag line
• The advertising and marketing strategies adopted by the handbag line.
• The number of years the handbag line is in business

d. What is the Profit Margin of a Handbag Line?

Handbag lines gain a handful of profit on all products. Margins usually range from 20% to around 60-70%. So, the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.

e. What is the Sales Forecast?

• First Fiscal Year (FY1): $340,000
• Second Fiscal Year (FY2): $550,000
• Third Fiscal Year (FY3): $950,000

a. How Do You Choose a Perfect Location for Handbag Line?

• The demography of the location
• The demand for handbags in the location
• The purchasing power of businesses and residents of the location
• Accessibility of the location
• The number of handbag lines and other fashion outlets in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Handbag Line?

• Las Vegas, Nevada
• Los Angeles, California
• Chicago, Illinois
• Boston, Massachusetts
• Silver Spring, Maryland
• Rowland Heights, California
• Portland, Oregon
• New York City, New York
• Atlanta, Georgia
• Dallas, Texas

c. What Equipment is Needed to Operate a Handbag Line?

• Industrial sewing machines
• Pattern makers for crafting designs.
• Hole punchers
• Straight and curved rulers
• Measuring tapes
• Notchers for marking seams.
• Dotted pattern paper.
• Sewing machine needles
• Hand sewing needles.
• Sketching books.
• Drapings tools.
• Bagmaking Stick pins
• Style tapes
• Leather shears
• Soft lead pencil
• Marking pen
• Pattern plotter.
• Pattern-making software.
• CAD tools for designs
• Digital drawing tools
• Digitizer board for pattern scanning.
• Heat transfer machines
• Print tables.
• Labels and Tags.
• Packaging materials
• Supply of bag materials

When it comes to hiring employees for a standard handbag line, you should make plans to hire a competent chief executive officer (president), factory manager, merchandise manager, accountant (cashier), marketing and sales executives, and tailors (handbag makers), handbag designers and security guard.

No handbag line opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the handbag line, you will officially inform people in your city that your handbag line is open for business.

a. What Makes a Handbag line Business Successful?

• Choose a good location and showroom facility to launch the business
• Make sure your handbags are unique and the finishing is topnotch
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your handbag line business
• Leverage all available online and offline platforms to promote your handbag line

b. What Happens During a Typical Day at a Handbag Line?

• The production factory is open for the day’s work
• The facility is cleaned and well-arranged
• Factory swing into action (production of handbags)
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Handbag Line?

• Good handbag and fashion design sense
• Excellent tailoring and bag-making skills
• Excellent customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining and bidding skills
• Work experience in a handbag line environment
• Experience in managing people
• Experience in business administration.

More on Fashion

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How to Start a Handbag Business: A Step-By-Step-Guide

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It’s likely if you’re here, you either have fun buying handbags, you feel like you have a knack for choosing handbags others would like, or you enjoy making them, and you want to know if starting a handbag business is a good option for you. In this article, we’ll discuss how to start a handbag business.

I’ll answer the following questions:

• Is the handbag business profitable?
• How does the handbag business make money?
• What are the start-up costs for the handbag business?
• How do I know if the handbag business is a good option for me?
• How to Start a Handbag Business step by step?

I’ll also talk about the steps to get started. If that’s what you’re looking for, read on.

• 1 Is There Enough Room for Another Handbag Business?
• 2 Is the Handbag Business Profitable?
• 3 How does the Handbag business make money?
• 4 What are the start-up costs for the Handbag business?
• 5 How do I Know the Handbag business is a good option for me?
• 6 How to start a Handbag business step-by-step?

Is There Enough Room for Another Handbag Business?

According to a report released by Grand View Research , the global handbag market is projected to grow at an average annual growth rate of 5.4%, reaching $67.85 billion by 2025.

However, driven by unprecedented supply chain disruptions caused by the global COVID-19 outbreak, the apparel, footwear, and accessories industries have slowed down in 2020.

Nonetheless, given the increasing popularity of e-commerce, the fashion industry is likely to recover within the expected time frame. New fashion trends will support the growth of the market post-pandemic.

Hence, this may be a great time to plan and set up your handbag business to meet the growing demands in the future.

Is the Handbag Business Profitable?

To run a profitable business, you need to set a budget and ensure that your revenue exceeds your expenditure.

This is the formula used to calculate profit:

Revenue-Expense = Profit

You can definitely run a profitable handbag business as long as you make sure your prices are high enough that you can cover your expenses, pay yourself, and still have money left afterwards.

How does the Handbag business make money?

There are many ways a handbag business can make money. 

• You can design your bags and sell them to wholesalers, retailers, or directly to the customers.
• If you don’t want to design, you can sell handbags by established designers as an affiliate, dropshipper, or reseller.
• You can add handbags to another line of fashion products like clothes and shoes that you already sell.
• If you don’t want to invest much in stocking up the product, you can sell only pre-ordered handbags.

What are the start-up costs for the Handbag business?

The initial cost of setting up a handbag business depends on many factors: whether you plan to start a business at home or a store. The channels the bags are sold through. And many other decisions will affect your startup costs. However, let me give you a basic idea of ​​the expenses you are likely to incur in the process.

• Raw materials
• Designing Tools
• Photography
• Advertisements
• Labor charges
• Transportation and Logistics
• License and permits
• Utility bills

How do I Know the Handbag business is a good option for me?

When you create eye-catching handbag designs and your friends and family are ready to pay you for these bags, turning your talent and passion into a business is a good idea.  You can also start a handbag business by procuring handbags from other designers in bulk and reselling them to retail customers.

 The fashion industry is competitive, but if you have a unique idea, a good fashion sense, and a strong will to make it great, you will get there.

How to start a Handbag business step-by-step?

If you are still reading, then I would like to believe that starting a handbag business is on top of your mind. And, I am excited to tell you more about how to establish a handbag business, step-by-step.

1. Create a Business Plan

Planning is the most crucial step. Before you start selling handbags to customers, you should have the brand name, business structure, and processes ready. You need to determine the type of bags you would sell and the way your business will operate. 

You also need to decide how to advertise and promote your business? What would your pricing strategy be, and what are your sales goals?

Your target customers

Handbags have a highly competitive market. Thus, finding your niche is important. Who do you want to sell your bags to, and how do you want to sell them? Do you want to appeal to cosmopolitan fashionistas with luxurious designs, or focus on the more casual and affordable segment? Would you like to sell as a wholesaler or a retailer?

The type of bags you want to sell is critical in determining how to find the customers and reach out to them. Make sure you are clear about your target customers when starting the design process.

You need money to buy raw materials, design tools, and fund other fixed and running costs. It is therefore important to decide how you will finance each expense. Depending on your niche and business size, you may use your savings or withdraw funds from outside in the form of loans and investments. 

Whichever type of financing you choose, make sure you don’t use all of your savings to build your business. I recommend consulting a financial expert for advice on the best funding options.

Prices and services

You shouldn’t set a price that is too high or too low in comparison to other handbag brands in the market. Consider your cost and the market price to determine a reasonable price for your handbags.

You can also get great insights into handbag pricing by researching e-commerce platforms like Amazon, Shopify, and eBay. Find out what types of bags are selling the most on these platforms and at what price. Accordingly, you can set a competitive price for your handbags.

Marketing and advertising

Great designs and quality handbags will make your business profitable. However, before that, you need to market your bags to the target customers. How would they know that your business exists? The marketing and advertising strategy and budget are the most crucial part of a business plan. Before you start selling, plan your marketing channels and advertising expenses. Work on the brand name, logo, and website. Determine whether you would like to sell online, offline, or both, and allocate a budget for each channel. Today, however, a successful business thrives on a robust online presence with the help of a website and social media promotions.

With a pre-defined income, you can better plan your expenses, prices and sales. Include in your business plan how much revenue your business should earn each quarter and annually.

Now you know what to include in a business plan, click here to download our free business plan template.

2. Incorporate

It is critical to establish a legal business entity to save yourself from personal liability if your business gets into legal trouble. You can choose to set up your business as a sole proprietorship, partnership, or limited company. 

If you are not sure which direction to go, turn to legal services such as  Incfile and Swyft Filings for the best way to start up. They also keep the records, help you with the annual reporting, payment of taxes, and other legal requirements you may need to get your business running.

Get licenses and permits

Depending on your state government, you may or may not need licenses and permits to operate your Handbag business. Terms and conditions and fees may vary depending on the location and type of incorporation. Remember, not getting these licenses can lead to legal issues.

Click here to learn more about your state licensing requirements.

3. Build a Website and Social Media Presence

As I said earlier, to run a successful business today, you need to invest in your website and social media promotions. Remember, a bag sells better through a visual medium. 

So, creating a website that resonates with your brand can make the handbags stand out. Add quality pictures and descriptions for your audience to enquire more about your bags.  Make sure the website is mobile-optimized. 

You can try these platforms to create a website and landing page for your handbag business.

● Bigscoots Hosting: Provides you with custom WordPress hosting plans that will make it quick and easy to design your website.

● Leadpages: It provides a landing page builder that can showcase your Handbag business in a top-of-the-line way.

Having a website is a must, but don’t miss out on social media promotions. The fashion industry has grown exponentially with the help of social media platforms like Instagram, Facebook, and Pinterest. 

If you are in the bag business, you shouldn’t ignore the potential of these channels. Use these platforms to get there to target customers and connect with them instantly. You can easily and quickly convert your leads to customers by using these platforms properly.

4. Map your Customer Journey

Another crucial step in running a business is to map your customer journey. Answer questions like:

• How do your customers buy handbags? 
• Do they search for the product online, or do they prefer a store visit? 
• What are the best sellers and what is not liked by your customers? 

When you read your customers’ buying behavior, you get to know them better. With this data, you can design better handbags and reach your customers with the right sales pitch.

You can survey your existing customers to understand their expectations and analyze their online purchase behavior through tools like Google Analytics. I also encourage you to research other handbag sellers to understand the gaps in the buyer expectations and their offers. Once you have a clear idea of what your customers are looking for, you can meet their needs and establish a niche.

5. Get More People to Know About Your Business

You have to promote your offline and online store to reach more and more people. Network with handbag wholesalers and retailers in your area to map your prospective customers and communicate with them through effective advertising. I recommend the following to you:

• Optimize your site with GoogleAdwords to rank high in the SERPs
• Promote your handbag designs on social media. Create quality content on Facebook and Instagram
• Attend fashion fairs
• Ask your family and friends to promote your website and social media accounts
• Connect with other fashion retailers to promote your handbags
• Ask your customers to write feedback and recommendations

You can use your marketing budget to promote your bags through fashion bloggers and social media influencers. They have a strong follower base on social media. Find out which influencers resonate with your brand and leverage their public reach.

There are many more ways you can promote your business. Schedule a Free Consultation to understand how to make more people familiar with your business. Also, check out our Startup Entrepreneur’s Toolkit .

6. Sell Your Product or Service

It’s essential to choose the right sales channel for your business. Even though you make brick and mortar retail stores your primary sales channel, I encourage you to promote and sell your product online. Software such as ThriveCart E-commerce and Shopify E-Commerce provides a convenient platform for selling online. You can use them to set up an online store, upload pictures and descriptions of your cards, attract customers and make sales.

These steps can help you start your business and achieve your income goals. It is not the end but the beginning. To grow in today’s highly competitive world, you need to keep improving your process to meet your business objectives. Here are some things to do consistently:

• Evaluate and set goals and a plan
• Promote your Handbags consistently
• Maintain the legal and financial requirements of your local area
• Improve the design and quality of your handbags by capturing customer feedback

Good planning and correct guidance can help you lay a strong foundation for your business. These tips can help you get your foot in the door. If you’re ready to start your handbag business from here, don’t miss out on our free consultation. Book here to speak with a marketing pro about the next steps. Quality mentorship can help you sail through the tough times as an entrepreneur.

Ready to Take the Next Step to Grow Your Business? If so, Start Here

• Phase Two: Come up with Your Idea

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• June 22, 2021
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Handbags Business plan MAJJ Handbags

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• 1. Contents:- PRODUCT BRAND INTRODUCTION HANDBAG MARKET IN INDIA MAJOR MARKET PLAYER OF HANDBAG IN IDIA MARKET RESEARCH NEED OF NEW PRODUCT FEATURE OF PRODUCT OBJECTIVE, VISION AND MISSION SWOT ANALYSIS Marketing mix STPD MARKETING CHANNEL BUDGET PLAN
• 2. Product brand
• 3. INTRODUCTION:- • “[email protected]$#! Handbags” is a new brand which will provide different variety of handbags to their customers. • We will offer such products that will give self- confidence to women and will give an elegant, classy and fabulous look. • The handbags which we will sell it will not provide customers good look but also ease and comfort too.
• 4. Continue.. Types of handbags:- Pax Tote Pucker Keri Race case leisure
• 5. HANDBAG MARKET IN INDIA:-
• 6. Major market player of handbag in India
• 7. Market research:-  I have conducted descriptive market research where I found that the need of handbag can be best described in relation to Maslow's hierarchy need theory.  Abraham Maslow’s Hierarchy of Needs is a well-known tiered pyramid of human needs.  Humans need to feel a part of something, primarily family and community. Brands play a role here. People want to be affiliated with other like-minded souls and a brand is a badge of affiliation. Retailers can, and often do, capitalize on this by merchandising accordingly.  The next tier in Maslow’s Hierarchy is Esteem where status, acceptance and recognition come to play. People want to be valued by others (and themselves) to gain self-esteem.  A handbag, which is immediately recognized for its style, price and brand affiliation is one quick fashion route to status, recognition and the self-esteem that is derived from it.  Susan Engle, CEO of Portera.com, says, “Bags are so important…they definitely say something about you and are the surest way for someone to know how much you paid. Obvious is key!”
• 8. Need of new product:- • Increase in tourism and travelling in India. • Increasing number of women entering the workforce. • Rising fashion consciousness. • Consumers generating demand for aspirational foreign brands • Consumers endeavor to buy the best brands that they can afford. • Handbags are becoming fashion statement and lifestyle products.
• 9. Objective, mission and vision:- OBJECTIVE:-TO MAKE OUR INDIAN WOMEN LOOK MORE CLASSY,TRENDY AND FABULOUS. VISION:-TO BE MARKET LEADER IN HANDBAG MANUFACTURING AND DISTRIBUTING SEGMENT MISSION:-TO BE A LOYAL HANBAG BRAND
• 10. SWOT ANALYSIS OF [email protected]$#! Handbags:-
• 11. MARKETING MIX PRODUCT PRICE PLACE PROMOTION Local market, Local boutiques Dicounts,advertis ement on amagi,newspaper ad,pamphlets, Price ranges from ₹120- 2000. Depending on design and variety Product of different designs and varieties like pax,pucker,et c.
• 12. STPD SEGMENTATION POSITIONING DIFFERENTIATION TARGET MARKET
• 13. • Segmentation:- Segmentation is based on demography and lifestyle of customers. • Targeting:- Target group is working women, housewives, college going girls and teen agers. • Positioning:- A classy and trendy product. • Differentiation:- Focus strategy:-cost and variety differentiation from competitor’s.
• 14. Product segmentation:- Age group lifestyle Income
• 15. Product positioning:- Resonance Performance Judgment Feeling High loyalty with limited customer base Sophisticated Comfortable Conventional Elite Classic design Fashionable product Excellent quality product Reliable and durable Reasonable price Local brand:-product line designed for younger demographic at different price points affordable for older demographic
• 16. Target market:- Target market College going girls Housewives Teen agers Working women
• 17. Product differentiation:- Product differentiation strategy Design Benefits Price
• 18. Marketing channel:- Blogging Prints Celebrity comparison Storefronts Social media interaction
• 19. Financial budgeting:- ITEMS QUANTITY RATE(RS.) TOTAL AMOUNT INDUSTRIAL SEWING MACHINES 31K 5 7,500 37,500 SCREEN OF DIFFERENT DESIGNS 15 350 5250 RUBBER WIPER 10 125 1250 DYE PASTE STIRRER 4 3600 14400 COTTAGE STREAMER 1 17500 17500 SCISSORS,MEASURI NG TAPES, OTHER EQUIPMENTS - - 5000 TOTAL 80,900 FIXED CAPITAL:- 1. LAND AND BUILDING:-Workspace 150 sq. meters on long term monthly rental basis Rs. 20,000. 2. MACHINERY EQUIPMENT:-
• 20. • FUNITURE AND FIXTURE:- ITEMS QUANTITY RATE AMOUNT(RS.) CUTTING TABLE 2 1700 3400 WOODEN ORKING TABLE 4 2000 8000 CHAIR 10 500 5000 ALMIRAH 2 5000 10000 RECK 2 3500 7000 ELECTRONIC FITTINGS - - 5000 MISC. ITEMS - - 6000 TOTAL 44,400
• 21. TOTAL CAPITAL INVESTMENT PARTICULAR AMOUNT FXED ASSETS 1,25,300 WORKING CAPITAL 400,000 TOTAL 5,25,300 MEANS OF FINANCE AMOUNT PROMOTERS (5*100000) 5,00,000 LOAN 50,000 TOTAL 5,50,000

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Handbags. Business plan. MAJJ Handbags

• Rafe Marshall
• 6 years ago

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