Entrepreneurship

Business plan
Mariyam Rishma Ibrahim
BBM 2
23rd October 2017

Introduction
This is a report based business plan on a fashion designing, manufacturing, and
marketing company for women. The company is named as Chrir (French). This
report will demonstrate the business plan of Chrir. The background information
about the business, the objectives and purpose of the business along with the
short term and long term goals of the company. The business plan will also
comprise the financial plans for the first five years, the market analysis, the
organization and management of the company and last but not least, about the
ownership of the company.

Business opportunities
Business opportunity can be defined as a person or people having a set of tools,
informations or advantages when starting up a business. The fashion industry in
Maldives can rather be described as dull or unexciting right now. There are
less fashion based businesses or entrepreneurs in the Maldivian market. Which
gives Chrir a more relaxed or laid-back entry into the market. Most of the
Maldivian fashion designing brands or business only focuses on functions or
occasional proposes. For example: wedding dresses, brides maid gowns etc.
However, Chrir will mainly focus on a casual clothing line for women. Where our
women can wear our brand of dresses and clothes to their dates, family and
friends gatherings etc. Chrir will also design and produce custom made clothes
and dresses for our customers. As there are fewer businesses engaged in such a
wider phase of women clothing, there are a lot of opportunities in the market for
Chrir.
A- TITLE PAGE/ COVER PAGE

Business Plan Of
CHRIR
BE COMFORTABLE IN YOUR OWN SKIN

OWNERS: SHUHUDHA ABDHUL LATHEEF

MARIYAM RISHMA IBRAHIM
GN. FUVAHMULAH
MALDIVES
RISHMA6349@GMAIL.COM
B- TABLE OF CONTENTS
A- Title page/ cover page
B- Contents
C- Executive summary
D- Body
D.1- background and purpose
D.2- objectives
D.3- market analysis
D.4- development and production
D.5- marketing
D.6- financial plans
D.7- organization and management
D.8- ownership
D.9 critical risks and contentious
D.10- summary and conclusions
D.11- scheduling and milestones
E- Appendixes
C- EXECUTVE SUMMARY
Chrir is a womens clothing line brand located in the capital city of Maldives.
(Male) the business focuses on designing, producing and selling a brand of
clothes where women will be comfortable to wear to any occasion. The business
will mainly focus on a casual line of clothing because as of right now in Maldives
there are no businesses engaged in designing, manufacturing and selling casual
clothes and dresses.
The clothes and dresses are targeted for the youths (women) as the youths are
more concerned about fashion and clothing. Chrir understands the sensitivity of
our religion and culture hence, Chrir will also produce clothes for women
wearing hijab as well. Chrir has big plans to change the way Maldivians perceive
fashion as a whole. Chrir plans on becoming the first brand that comes to
womens mind when they want to shop for clothes. Chrir can proudly
acknowledge the fact that Chrir is the only business engaged in designing,
producing and selling variety of different clothes and dresses to such vast area of
the country. The business will have a showroom, outlets and the customers can
also buy Chrir products online. The mission of the business as Ive mentioned
before, is to design, produce and sell the most trendy and comfortable, clothing
line preferred by women despite the difference of opinion, culture (culture hear
means the different culture of different islands in the country) and skin. The vision
of Chrir is to change the negative view and perception of fashion as whole. In
addition to, that fashion is not just about a specific race, skin tone, or about
nudity. Fashion is about being comfortable and cherishing what you want to wear
and what you wear.
D-BODY
D.1 BACKGROUND AND PURPOSE
The word Chrir originates from the French dictionary. Chrir in English means
cherish- protecting and caring for what you love and holding on. The brand name
was decided by the two founders of the business (Choo and Rish). The reason for
the brand name to be called as Chrir is because Chrir means protecting, caring
and holding on to something you care or love. Resembling as cherishing the taste
of your fashion sense and cherishing what you want to wear and what you wear.
The reason why the founders chose a French word is because France is the known
as the capital city of fashion. Reflecting a uniqueness of fashion and closeness in
the brand name itself. Chrir is a new business in the market and is currently on
the verge of their opening. The purpose of the business is to provide our target
audience with variety of comfortable and the trendiest and fashionable clothes
before any other business/brand.

All of our clothes/dresses will be designed and finalized by the creative director
and head designer Choo. She will sketch the designs and later the designs will be
produced as clothes and dresses by using wools and other raw materials. As our
products will be branded there are no risk of other competitors or businesses to
copy our designs. In such cases legal actions will be taken against such people.
Chrir clothes will reflect a mix of both Maldivian and European taste in the
clothes making Chrir more unique and different from other clothing brand in
Maldives.
D.2- OBJECTIVES
Chrir has both short-term and long-term goals for the business. And big plans
for the future. As of short-term goals the business aims to build a good and
trustworthy relationship between their customers. The business wants to make
sure the customers are satisfied with Chrir products and the customers are able
to give feedback openly. The business wants to have a good and healthy
relationship with the customers as the customers are the number one priority of
the business. In addition to, the business aims to achieve a profit of $250,000 in
the first year with the help of mega promotions and marketing strategies. Chrir
also aims on building a strong, motivated and talented workforce in the company.
The company will employ the most talented and qualified people across the
country and globe. In addition to, the business aims to open their second outlet in
fuvahmulah by the first or second year. Furthermore, looking at long-term goals,
Chrir aims to be the number one designing, manufacturing and selling fashion
brand in Maldives. In addition to, achieving a profit of $1.5 million by four years.
As our first outlet will be in the capital city of Maldives as years go by, we aim to
open outlets in different parts of the country and widening up our business to
widen our market and our customers. The company is not just about producing
and selling. To promote and show our designs and clothing lines, the business
aims to host a fashion show every year in different locations around the country
and hopefully overseas. The business will also host charity events and the
founders of the company wishes to open one of their outlets overseas and to
open a fashion designing school for the youngsters in 12-20 years.
D.3- MARKET ANALYSIS
Even though Chrir is new to the market the business has already done their
researches about the market and about the customers. The clothes we usually
wear in a casual manner are the clothes that are imported from other countries.
There are such shops selling casual clothings around the corner of each house
more than can count. Such businesses buy their shipments from countries like
Bangkok, Thailand and silence etc. the clothes these businesses sell are usually
expensive as well. We can say that one third of the population of the country
(women population) depends on these retail businesses. The other half uses
tailors to stich their casual clothes. On the other hand, looking at the
competitiveness on the market, theres only one business/brand that is close to
compete with Chrir. Its Raidhas Maldives. Raidhas is a Maldivian brand
typically designing and sewing casual clothing line as well. Both Raidhas and
Chrir could have and intense competition once Chrir enters the market.
However Chrir plans on promoting and marketing their business way more
effectively than Raidhas. As we think Raidhas lack marketing their business.
Another competitive factor that Chrir might face is that the people are used to
buying the casual clothes from the retail outlets and might prefer to do the same
in the future. Some people wouldnt like to buy substitute products. However
Chrir is going to sell one of a kind products which would definitely attract the
youngsters. Another factor can be the cost. Chrir products will be more
expensive compared to the retail outlets as Chrir will be producing the products.
In order to produce (the product) the business will have to buy raw materials
from abroad and will have to bear other expenses as well. The target audience
that Chrir has chosen is the youth. Ages from 16 to 30. The target audience is a
wide audience. This particular target audience is more keen and concerned about
the fashion and clothing, making it easier to attract them without higher
advertisement costs. There are some macro-environmental influxes the business
might have to face. One of them are, the government. The taxes can be influential
to the business. Other influences can be people concerned with religion and
culture. Pressure groups. These groups have more power then we think they
have. They have the power to shut down businesses just by their words.
Therefore we will have to focus on a way to keep these groups intact.
 As technology is rapidly growing and changing. The business will have to adapt to
the technological changes as well.
D.5 DEVELOPMENT AND PRODUCTION
The production process of Chrir is a bit complex compared to others. We will
have to buy the finest raw materials from abroad at a cheap or decent price.
When the raw materials are transported to our factory in male. The designs
made by our head designer and the creative department will be put on to work
and the production process will start. Most of our products will be handmade
therefore machines wouldnt be needed. However a huge amount of skilled labor
force will be needed. Once the designs are formed into finished products the
products will then be transported to our showroom and outlets for sale. All of the
raw materials and other equipment needed for the production process will be
imported from abroad as Chrir wants to make sure they have the most qualified
and finest raw materials to produce the products. It is very important to maintain
the quality of the raw materials and finished products. The employees will be
trained to operate the quality guaranteed methods to ensure the quality of the
products. Our head designer and other supervisors will closely supervise and
ensure that quality is maintained
D.6 MARKETING
Marketing is one of the most important areas a business has to focus on. Chrir
makes sure marketing is one of their highest priorities. Marketing the business
and product is highly recommended to every business and Chrir doesnt take
marketing lightly. According to jay Baer marketing is the message and/or actions
that cause messages and/or actions. (2011) Chrir can be described as a product
oriented business. Chrir focuses on the quality and effectiveness of the product.
The customer buys the products the business produces. However this does not
mean that the business doesnt care about the consumers preferences and
needs. A product oriented business can be described as an independent and
successful business. The consumers are always the first priority of Chrir.
Marketing mix is one of the fundamental concepts in marketing and focuses on
four aspects of the business practice. Product, price, promotion, and place (Klein,
2007).
Product
The products of the business are attires and outfits. Chrir will be focusing on
casual clothing line. The attires will be divided into different categories. Some of
the categories include crop tops, evening dresses, pencil skirts, long sleeve,
clothes for women wearing hijab etc. the attires will be in different colors,
patterns, designs and will definitely catch the eyes of our consumers and as well
as their hearts. Regarding our online shipments, the products will be carefully
packaged so that there will be no damage to the product and design. We want to
make sure our customers receive the products in the best and safest condition as
possible.
Price
As this is a branded product and there are high costs involved in producing the
product. The business has decided to use skimming price strategy. Price skimming
can be defined as setting a high price for a new product when it enters to the
market and then lowering the price overtime. The objective of using price
skimming method is to obtain maximum revenue from the market. The reason
why the business decided to use price skimming is because the products that the
business is offering to consumers are one of a kind and uniquely differentiated
from others (branded).
Place
Chrir showroom and outlets are located in the capital city of Maldives, the city is
known as the most populated city in the country. Therefore it is easy to get
customers from the city as well as around the country. People from different
cities/islands travel for leisure purposes. As the business expands Chrir will
widen the business and try to open an outlet in various cities/islands according to
our target audience and population. One of the very first outlets outside the
headquarters will be opened in in fuvahmulah as the city is one of the highest
populated cities in the country as well. The business also has online shopping to
reach the customers more flexibly. Consumers can buy Chrir clothes from the
official website and the products will be delivered accordingly.
Promotion
For promotional events the business has decided to host a fashion show to
demonstrate the Chrir designs/ products. Local models and models from across
the world would be selected to wear Chrir designs/products as they walk the
runway. Chrir hopes on getting a good media reputation from the fashion show
as media is a key factor for promotional events, hence the business will try to
have a good relationship with the media. The business will also have an official
website and pages in major social media platforms like instagram, snacpchat,
twitter etc to promote the business and its products. However the main
promotional events are the fashion shows and the business will host a fashion
show every year as the business runs. Chrir will also host charity and other
various functions for the beneficial of the country and help those in need in the
cause of giving back which will hopefully create a goodwill among our customers
and among the people of the country.
Our distribution channels are pretty simple. As Chrir will be manufacturing the
products, the business itself will sell the products in their outlets and the official
website. No other retail outlets and online shopping websites are allowed to sell
Chrir products whatsoever. Chrir wants to maintain the quality of the product
and will distribute the product on their own with the help of their own
transportation. Online customers products will be delivers through air and land
transportation as it is much easier, faster and more convenient than any other
mode of transportation.
D.7 FINANCIAL PLANS
The financial statements for three years will be included in the appendix. The
investments are made by the founders of the company. With a little bit of help
from their friends and family. The founders have also taken a business loan from
BML.
Rish $50,000
Choo $50,000
BML $50, 000
Total= $150,000
D.8- ORGANIZATION AND MANAGEMENT
The founders of the business are Rish and Choo. Rish has bachelors degree in
business management where else Choo has a bachelors degree in fashion
designing. The CEO of the business is Rish. Rish will be handling the company in a
business aspect. She will be responsible for the whole company. Where else Choo
will be the director of the creative departments and also she will be the head
designer of Chrir. Both partners will have an equal right in any decision the
company makes. As of right now the company doesnt have a board of directors
team, however, both partners are allowed to bring someone for consolation and
advice. The company will have a board of directors team in the near future. Both
partners will likely be included in the BOD team. The recruitments and selection
process is a little different from other businesses. Choo will recruit and select the
employees she needs for the creative department. She will be looking at the
candidates talent and qualification. Rish will be responsible for recruiting the
other employees of the business. (Financial department, human resource
department, marketing. etc) she will also look at the talent and qualification of
the candidates and select the best applicable and qualified candidates of the job.
The recruitment and selection process will be strictly professional and personal
favors will be given as it is against the Chrir laws and regulations.
The organizational structure of Chrir.
D.9-OWNERSHIP
A business which is controlled and run by more than one person is called
partnership business. Chrir is a partnership business with two partners coming
together and running the business. Both partners will share the profits and losses
equally. Each partner has unlimited liability which means n case of loss the
partners personal properties can be taken into account if the loss is not covered.
Both partners have equal right on the business as a whole. Assets, liabilities,
employees etc. in case of liquidation the assets and the business will be divided
into fifty fifty for each partner. Both partners invested $50,000 both partners will
get fifty percent of the profit. The partnership deal is a fifty fity percent deal.
D.10- CRITICAL RISKS AND CONTENGIES
As Chrir is a huge business, there are many risks involved. One of the first risks
that can occur is the quality and transportation of the raw materials. As Chrir will
be importing all the raw materials from abroad. There are risks of delaying in the
raw materials will bring a halt to the production process. Another risk can be
demotivated employees. Our employees are one of the most important assets of
our business. We depend on our employees to bring out the best their effort to
work. To avoid demotivation Chrir has planned yearly bonuses and our human
resource department will closely monitor the needs and wants of our employees
and try to fix it. Another risk can be entering into the market where fashion is
mostly taken negatively and judged by the people. To create a goodwill among
the consumers and the people of the country will be a complex issue. However,
Chrir hopes on getting on the good side of the consumers view.
D.11-SUMMARY AND CONCLUSION
To conclude, Chrir will be on the verge of groundbreaking success in a few years
if the business goes according to the plan. The business have two ambitious
founders with strong and talented workforce to achieve the objective and goals of
the business. Chrir wants to be the reason why people of the country will take
fashion positively and more seriously. There are lot of problems the business
might face. For example, government laws and regulations, competitiveness, new
entrants into the market, demotivation among the employees etc.
however, all these problems will be solves by the amazing team Chrir will have.
To summarize Chrir will be a positive turning point for the young women of
Maldives.
D.12 SCHEDULING AND MILESTONES
- Legal entity formation completed in 2017
- holding a fashion show in the first year itself and continue to hold it every year
- building the website and selling online in first two years
- opening an outlet in fuvahmulah in the first 3 years
- holding a charity fund raising event for the mental health awareness in 4 years
- opening an outlet in adduu city in four years.
- Opening an outlet overseas in 10-15 years
- Opening a fashion designing school in 12- 20 years
D.13- APPENDIXES
Location of the factory and outlet*the red circle represents the factory location
and the black circle represents the outlet and showroom location in male city.
Income statement for three years
details Year 1 $ Year 2$ Year3$

Sales 350,000 550,000 1,000,000

Less: cost of goods sold
Opening stock 100,000 200,000 300,000
Purchases 90,000 95,000 150,000
Airfreight charges 50,000 60,000 80,000
Less: closing stock 90,000 95,000 150,000
(150,000) (260,000) (380,000)
Gross profit 200,000 290,000 620,000
Add: incomes
Discount received 80,000 100,000 500,000
280,000 390,000 1,120,000
Less: expenses
Transportation 3000 4000 5000
Factory expense 2000 3000 4000
Salaries 70,000 75,000 87,000
Advertising 2000 3000 4000
80,000 85,000 100,000
Total net profit 203,000 305,000 1,020,000
 Balance sheet for three years
details Year 1 $ Year 2 $ Year 3 $

*Fixed assets
Premises 100,000 200,000 300,000
*Current assets
Cash 200,000 300,000 500,000
Debtors 3000 4000 5000
Stock 50,000 60,000 70,500
Total assets 353,000 564,000 875,000
*Long term liability
Bank loan 200,000 300,000 400,000
*Short term liability
Bank over draft 100,000 20,000 30,000
Creditors 50,000 6000 7500
total 350,000 326,000 437,500
*Working capital and NP 550,000 770,000 1,000,000
Less: drawings (197,000) (206,000) (125,000)
Total liabilities 353,000 564,000 875,000

REFERENCES

-Klein, G, 2007, Strategic Marketing, GRIN Verlag

- Baer, J., & Naslund, A. (2011). The NOW revolution: 7 shifts to make your business
faster, smarter and more social. John Wiley & Sons