Do you want to start a vintage store and need to write a business plan? If YES, here is a sample vintage store business plan template & feasibility report. Vintage clothing business cannot go out of fashion because people would always appreciate fashion of years going by. Depending on the scale you want to start, the startup capital for this type of business can range from low to moderate.
It is advisable to run a brick and mortar store alongside an online store if indeed you want to maximize profits in this business. Below is a sample vintage store business plan template that will help you write yours within record time.
A Sample Vintage Store Business Plan Template
1. Industry Overview
Vintage is a popular expression that is frequently used to refer to all old styles of clothing. In its modern use, it often indicates that the item is at least 20 years old, while items a century old or more can be considered antique. Today vintage dressing encompasses accessories, mixing vintage garments with new, as well as creating an ensemble of various styles and periods.
Vintage clothes sell at low prices for high end named brands. The vintage business ideas started since World War I as an idea of reusing clothing because of the textile shortage. Vintage clothing can be found in cities at local boutiques or local charities, or on the internet (e.g. eBay and Etsy). Vintage clothing is also known as retro clothing.
Vintage store is a subset of the antiques and collectibles industry and players in the industry retail vintage clothing, antiques and collectibles, such as coins, jewelry, books, figurines and memorabilia. Online sales and auctions of original art pieces are not included in this industry, but auction houses that bring buyers and sellers together and collect a commission are part of this industry.
In the united states and in most countries of the world, popular places to buy vintage clothing include charity-run second-hand clothing shops, consignment shops, garage sales, car boot sales, flea markets, antique markets, estate sales, auctions, vintage clothing shops, textile or collectables fairs.
Usually, in the United States, vintage clothing shops can be found clustered in college towns and artsy neighborhoods of cities. In contrast to thrift stores that sell both vintage and contemporary used clothing, vintage clothing shops are usually for-profit enterprises, with the market mixed between small chains and independent stores.
These stores typically range from 200 to 5,000 square feet in size, and will usually have a fitting room. Vintage clothing stores may obtain clothing from individuals in exchange for cash or store credit. The Antiques and Collectibles Sales industry is a thriving sector of the economy of the United States and the industry generates over $1 billion annually from more than 8,055 antiques and collectible stores.
The industry is responsible for the employment of over 25,204 people. Experts project the industry to grow at a 5.9 percent annual rate between 2014 and 2019. Heritage Auctions Inc. and eBay are the market leader in this industry, they have the lion market share in the industry.
A recent report published by IBISWorld shows that in the Online Antiques and Collectibles industry has experienced strong revenue growth over the past five years. The report reveals that accelerated growth of the economy and the growing e-commerce market has driven demand for industry operators, bringing in greater sales of antique furniture, jewelry and novelty items for the industry.
Revenue growth is anticipated to continue through 2016 with a 2.4 percent increase over the year. Higher per capita income and improved consumer sentiment have encouraged individuals to spend more money on rare items with higher price tags.
As a result of positive economic growth and consumer confidence, IBISWorld expects industry revenue to increase at an average annual rate of 3.5 percent to $1.1 billion over the five years to 2016. In a nutshell, the vintage store business is a profitable business and it is open for any aspiring entrepreneur to come in and establish his or her business. As a matter of fact, with the right location and network, you will just be fine with this business.
2. Executive Summary
Eddy Jones® Vintage Clothing Store, Inc. is a United States registered vintage clothing store that will be located in one of the busiest roads in Los Angeles – California. We have been able to lease a facility along a major road that is big enough to fit into the kind of vintage clothing store that we intend launching and the facility is located in a corner piece property in the midst of a commercial center in Los Angeles – California.
Eddy Jones® Vintage Clothing Store, Inc. will be involved in the sale of vintage clothing and other related merchandize. We will also partner with leading vintage clothing collectors in and around the United States of America.
We are aware that there are several vintage clothing stores all around Los Angeles – California and online, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.
Much more than retailing various types of vintage clothing and accessories, our customer care will be second to none in the whole of Los Angeles – California. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our store.
Eddy Jones® Vintage Clothing Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large their numbers may grow to.
Eddy Jones® Vintage Clothing Store, Inc. is owned by Eddy Jones and his immediate family members. Eddy Jones is an antique and vintage enthusiast, he has a BA. in Sociology and Anthropology, with over 15 years’ experience in the industry, working for some of the leading brands in the United States.
Although the business is launching out with just one outlet in Los Angeles – California, but there is a plan to open other outlets in other key cities in the United States of America.
3. Our Products and Services
Eddy Jones® Vintage Clothing Store, Inc. is in the vintage clothing industry to make profits and we will make available a wide range of vintage clothes and fashion accessories and collectibles from different sources and countries.
We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product and service offerings are listed below;
- Vintage clothing retailing
- Fashion accessories and collectibles retailing
- Listing vintage clothes and collectibles online for third parties
- Other related merchandize
4. Our Mission and Vision Statement
- Our vision is to become the leading vintage clothing stores in California by running a one-stop vintage clothing store.
- Our mission is to establish a standard and government approved vintage clothing store that will make available a wide range of vintage clothing and related merchandize at affordable prices to residents of California and other cities within and outside the United States of America.
Our Business Structure
Our intention going into the vintage clothing store business is to build a standard store in Los Angeles – California. Although our business might not be as big as multibillion-dollar institutions such as Heritage Auctions Inc. and eBay, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Accountants/Cashiers
- Customer Services Executive
- Cleaners
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Store Manager:
- Responsible for managing the daily activities in the vintage clothing store
- Ensures that proper records of vintage clothes are kept and our racks and warehouse does not run out of products
- Ensure that the facility is in tip top shape and vintage clothes and fashion collectibles are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Control distribution and supply inventory
- Supervise the workforce
Merchandize Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of antiques and collectibles in our store
- Responsible for the purchase of vintage clothing and related fashion products for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Source for avenues for us to auction our vintage clothes and generate sales
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- Make suggestions and encourage purchase of products
- Bag or package purchases and gift wrap merchandise
Cleaners:
- Responsible for cleaning the facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the facility
- Handle any other duty as assigned by the store manager.
6. SWOT Analysis
Our intention of starting just one store in Los Angeles – California is to test run the business for a period of 4 to 5 years to know if we will invest more money, expand the business and then open other outlets in key regions within the United States of America.
We are quite aware that there are several vintage clothing stores all over California and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Eddy Jones® Vintage Clothing Store, Inc. employed the services of an expert HR and Business Analyst with bias in new business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Eddy Jones® Vintage Clothing Store, Inc.;
- Strength:
Our location, the business model we will be operating on, varieties of payment options, wide range of vintage clothes and fashion collectibles and our excellent customer service culture will definitely count as a strong strength for Eddy Jones® Vintage Clothing Store, Inc.
- Weakness:
A major weakness that may count against us is the fact that we are a new vintage clothing business and we don’t have the financial capacity to compete with multi – million dollar stores who are already determining the market direction for the industry in the United States.
- Opportunities:
Factors such as improved household expenditure from wealthy consumers will lead to renewed demand. The fact that antiques and collectibles dealers reduced minimum price guarantees, inventory and advertising to remain stable and positive economic factors will encourage spending on antiques and collectibles.
The fact that we are going to be operating our store in one of the busiest commercial districts in Los Angeles – California provides us with unlimited opportunities to sell our antiques, collectibles and related products to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our vintage clothing store.
- Threat:
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new vintage clothing store in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you keep tabs with happenings in the vintage clothing industry, you will notice that they are now looking towards increasing consumer income and access to broadband internet is boosting industry sales. Operators have had to invest heavily in advertising and compete on price to stand out, and also improving productivity and efficiency have driven profit, a trend set to continue.
The advent of the internet has increased the availability of specific and hard-to-get items and opened up prospective markets for sellers around the world. Popular places to acquire garments include online auctions (e.g. eBay), multi-vendor sites (e.g. Etsy), online vintage clothing shops and specialist forums. Many vintage clothing shops with physical locations also sell their goods online.
As a matter of fact, the vintage clothing stores industry have continued to reposition themselves as social institutions, widening their appeal to new audiences and helping them secure government grants. Successful vintage clothing store operators have made use of existing and emerging digital media to offer online virtual museums.
In this era when the online community is growing rapidly, you would do your business a whole lot of favor if you create your own online presence. One of the easiest ways to get people to see you as an expert in your line of business is to blog constantly about your products.
You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter, and others to publicize your vintage clothes and fashion collectibles. You must ensure that your delivery system (shipping) is efficient if you intend to do well with your store.
8. Our Target Market
We have positioned our vintage clothing store to service the residents of Los Angeles – California and the entire United States via our online shop. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to retail a wide range of vintage clothing, fashion collectibles and related merchandize to the following groups of people;
- Theaters
- Students
- Movie producers
- Corporate Executives
- Business People
- Tourists
- Pawn shops (buying vintage clothes and fashion collectibles from them)
Our Competitive Advantage
Looking at our business model, we can boast of the fact that our pricing policy is appropriate, we have a diverse range of customers and of course, our ability to quickly adopt new technology is part of our Competitive Advantage.
We are not ignoring the fact that Eddy Jones® Vintage Clothing Store, Inc. is launching a standard vintage clothing store that will indeed become the preferred choice for vintage clothes lovers in and around Los Angeles – California. Our vintage clothing store is located in a corner piece property on a busy road directly opposite one of the largest commercial hubs in Los Angeles – California.
It will be difficult for customers to visit our store and not make a purchase. One of our business goals is to make Eddy Jones® Vintage Clothing Store, Inc. a one stop vintage clothing store. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Eddy Jones® Vintage Clothing Store, Inc. is in business to retail a wide range of vintage clothes, fashion collectibles. We are in the antiques and collectible stores industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.
We will generate income by;
- Vintage clothing retailing
- Fashion accessories and collectibles retailing
- Listing vintage clothes and collectibles online for third parties
- Other related merchandize
10. Sales Forecast
One thing is certain when it comes to vintage clothing store, if your store facility is well stocked and centrally positioned, you will always attract customers.
We are well positioned to take on the available market in Los Angeles – California and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the antiques and collectible store industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Eddy Jones® Vintage Clothing Store, Inc., it is based on the location of our business and other factors as it relates to vintage clothing store start – ups in the United States;
- First Fiscal Year (FY1): $200,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $550,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Eddy Jones® Vintage Clothing Store, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Los Angeles – California.
We hired experts who have good understanding of the vintage clothing stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Los Angeles – California.
In summary, Eddy Jones® Vintage Clothing Store, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our vintage clothing store in a grand style with a party for all.
- Ensure that we have a wide range of vintage clothes and fashion collectibles and other merchandize in our store at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our vintage clothing store
- Position our signage/flexi banners at strategic places around Los Angeles
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our vintage clothing store.
11. Publicity and Advertising Strategy
Despite the fact that our vintage clothing store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote Eddy Jones® Vintage Clothing Store, Inc.
Eddy Jones® Vintage Clothing Store, Inc. has a long – term plan of opening outlets in various locations all around the United States which is why we will deliberately build our brand to be well accepted in Los Angeles before venturing out. Here are the platforms we intend leveraging on to promote and advertise Eddy Jones® Vintage Clothing Store, Inc.;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – California
- Have in-store ads to promote the fact that people can get a discount if they share a photo of our vintage clothes on Instagram and mention our brand. We will also use a sign outside our store, and have our staff mention this to customers.
- Run Instagram contests where customers can share their photos of our vintage clothing. The photo that receives the most “Likes” can be rewarded with a discount or free clothes.
- On certain days of the week (ideally in areas where we have low foot traffic), let people know they can get a reward (like free clothing) if they post an Instagram photo of our products and mention our brand’s hashtag(s).
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise Eddy Jones® Vintage Clothing Store, Inc. business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing, uniqueness and quality are some of the key factors that gives leverage to vintage clothing stores. We know we don’t have the capacity to compete with bigger and well – established vintage clothing stores, but we will ensure that the prices of all the products that are available in our stores are competitive with what is obtainable amongst stores within our level.
- Payment Options
The payment policy adopted by Eddy Jones® Vintage Clothing Store, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Eddy Jones® Vintage Clothing Store, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for products purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard and one stop vintage clothing store and here are the key areas where we will spend our startup capital;
- 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 Eddy Jones® Vintage Clothing Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $55,600.
- The cost for facility remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including 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 start-up inventory (stocking with a wide range of vintage clothes, fashion collectibles, and other related merchandize) – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $200,000 to successfully set up a standard and one stop vintage clothing store in Los Angeles – California.
Generating Funds/Startup Capital for Eddy Jones® Vintage Clothing Store, Inc.
Eddy Jones® Vintage Clothing Store, Inc. is a private business that is solely owned and financed by Eddy Jones and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $60,000 and soft loan from family members $40,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Eddy Jones® Vintage Clothing Store, Inc. is to ensure that we continue to make available a wide range of vintage clothes, fashion collectibles, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.
We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises. Eddy Jones® Vintage Clothing Store, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money 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
- Leasing of facility and remodeling the vintage clothing store: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of our list of products that will be available in our shop: Completed
- Establishing business relationship with artists and vendors – suppliers of vintage clothes, fashion collectibles and related merchandize: In Progress