Business Plan in Embroidery Point of View
Any business, in any stage of the business cycle, starts up, maturity to even an organization in recession, a business plan is always needed and prepared in advance to not only overcome the problems but more importantly, plan to grow the business and make necessary moves to make it so. A common misconception is that business plan is needed only before one starts the business and then it does not matter. Anyone involved within this sector or aware about the basics of business management would know how necessary and important this plan is for the entire life of the business itself, used by marketing and finance department very often and decision makers treat it like the guiding force for all their decisions for the company.
Embroidery business is no different; it needs a business plan as well. The plan and its specifics vary a lot in the regard to which organization it is prepared for and for small businesses, it may not be as thorough as with huge corporations with a dedicated team of individuals only working on the business plan, but it does exist in some form. Home based embroidery businesses may have a small document with only a few of the items present in a large scale embroidery organization, however still necessary as it is usually one of the biggest reason why investors might choose to invest in the business.
So with all said, lets look at few items that are usually present in a business plan, embroidery and in general.
- Executive Summary is possibly the most viewed aspect of the whole plan. It identifies the main themes in the overall business plan and discusses them (somewhat) briefly but still in enough detail to make sense on its own. Potential investors use this part of the plan as the first impression of the overall business and may choose to read further depending on the executive summary alone. Embroidery businesses, likewise, use this to present their overall document in an effective yet concise manner which highlights their plans for growth or any other endeavor they might pursue for the upcoming foreseeable years.
- Mission Statement, this part is highly important as well. For small and home based embroidery companies, it might not matter as much enough to document this but their sentiment of being morally responsible and efficient for their customers is a mission statement in itself. However if they want to pitch it to an investor, mission statement becomes important again as investor are not only investing in the business but the owner as well and the sentiment with which he/she is approaching the business. Large scale businesses already have a clear mission statement which is part of its business plan and yearly financial reports, available for stakeholders.
- Business description is quite literal, it is description of the business and its processes. Embroidery business will explain their services and operations in as much detail as possible here. For a more established business, any new development plans will also be discussed in this part of the overall plan.
- Moving from the basics, embroidery business (or in general) looks into the environmental factors that might be affecting or will affect the business in the future. Traditional marketing techniques like SWOT is often used in this analysis where embroidery businesses, new or established, identifies their ‘Strengths’ and ‘Weaknesses’ internally, within the business, and also highlights the external factors that might affect the business, ‘Opportunities’ and ‘Threats’. SWOT factors are elements that business might have control over but business plan also considers the other environmental factors which are usually out of its control, commonly referred to as PESTLE by marketers, where issues such as, political, economic, social, technological, legal and other environmental factors are addressed.
- Building on the concerns highlighted by the earlier analysis, it is imperative for embroidery businesses to analyze the embroidery industry itself within the country(ies) they might be operating in. Having knowledge about the market and their competitors is extremely important for the embroidery business to understand if it is possible for the new comers to even penetrate while for the established ones, they want to know how they stand within the competitive commercial embroidery business sector, with now competition from world over because of the globalized opportunities.
- Up until this point, everything has been described and analyzed but now comes the part in the business plan where the actual plans are stated. For embroidery start-ups, this is the second most crucial aspect and becomes more important if they are looking for investors as investors themselves, would like to know how the business objectives, which may sound sweet and dandy on paper, will actually be put into practice for it to achieve any results. Marketing department or the proprietor itself will describe all the plans in this stage, from the embroidering products and services to the pricing methods, leading to turnover, the methods in which the service will be provided, channels of distribution, and how the product will and services be promoted for the customers to choose them over their competitors. Multinationals might take this opportunity to explain their plans to penetrate other borders and discuss plans to position their brand among the local and already established competitors.
Operational plans might be discussed here as to how the marketing aspects will be achieved, what sort of embroidery machine the business has or will own, how fast the turnaround time is or will be, what it is or will be doing to improve the operations, any plans on increasing the operational team to aid the process of embroidery is discussed here.
- Next and usually the final step in the business plan, is the management plan where the personnel working in the company, estimated growth and how the overall company is structured and organized, is discussed. Small business and sole traders may use this opportunity to sell themselves to the potential investors while embroidery corporations have to summarize their management affairs, board of directors, organizational chart, external support (example external auditors) among other such things.
- This is the typical structure of a business plan and as said, it is highly imperative for any business. Although the business plan contains plans for the next 3-5 years, however the business environment is uncertain and revisions are expected within the plans.
Hopefully this article helped with the process of business plan. For start-ups and every other business needing embroidery services, contact us at DigitEMB, the penultimate solution for all digitizing and digital embroidery products and services.