entrepreneurship, innovation and creativity
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Student’s Last Name Goes Here 1
ENTREPRENEURSHIP, INNOVATION AND CREATIVITY
by Student’s name
Course code+name
Professor’s name
University name
City, State
Date of submission
Student’s Last Name Goes Here 2
Table of Contents
1.0 Executive summary 1.1 Business ideas and goals 1.2 Marketing 1.3 Operations 1.4 Finance
2.0 Background 2.1 Mission statement 2.2 Company History 2.3 Business goals
3.0 Marketing 3.1 Market research 3.2 Market analysis 3.3 Marketing plan
3.3.1 Products/services and target market 3.3.2 Placement 3.3.3 Promotion and advertising 3.3.4 Pricing strategy 3.3.5 Evaluation of marketing
4.0 Operations 4.1 Legal and licensing requirements 4.2 Management details 4.3 Organization and structure and staffing 4.4 Professional advisers 4.5 Insurance and security issues 4.6 Business premises 4.7 Equipment required 4.8 Production process 4.9 Critical risk/contingency plans
5.0 Financial projections 5.1 Basic assumptions and information 5.2 Analysis of financial forecast
5.2.1 Capital expenditure forecast 5.2.2 Sales forecast 5.2.3 Cash flow forecast 5.2.4 Projected profit and loss statement
Conclusion and future 6.0 Timetable 7.0 Appendices
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Entrepreneurship, Innovation and Creativity
1.0 Executive summary
1.1 Business ideas and goals
The idea of the business is to manufacture locally and retail business clothes combining
classical style and modern accents. Possibility to order the suit or other business clothes in the
preferable colour or size is considered to be one of the most essential proposals for the success.
1.2 Marketing
The Company “Clever and bright” puts an emphasis on exceptional design, inflow of innovation,
high quality of manufactured items. Business clothes will be sold directly at two clothing
boutiques situated in Sydney and Melbourne near the biggest business centres. Target customers
are successful business people aged 22-50 desiring to wear specially designed business clothes
and having the opportunity to order any model according to their size and taste. Advertisements
in the leading fashion journals, involving several FM stations, implementing cumulative discount
system and memorable opening ceremony will be the part of new business promotion.
1.3 Operations
The Company will be organized as a partnership with three members. They will invest
AUD$ 15 thousand equally. Production will be organized in the rented sewing workshop in the
suburb of Sydney; the readymade clothes will be transported to the two clothing boutiques in
Sydney and Melbourne.
1.4 Finance
To cover extensive capital expenditures AUD$ 30 thousand 4-year loan at St. George Bank
Limited will be taken. The biggest expenses are sewing equipment, repair and equipment of
boutiques, employees’ salaries, and rent of two stores at the business centres and sewing
workshop.
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2.0 Background
2.1 Mission statement
The mission of the boutique of business clothes “Clever and bright” is to propose high-quality,
professionally tailored clothes for business woman and men with the range of main accessories
with the possibility to design and tailor suit or business dress on order depending on the
consumer tastes and variety of sizes especially bigger one or non-standard figure.
2.2 Company history
This clothing retail business is new. Clothing boutiques will be opened as a new business line.
2.3 Business goals
Company’s business goals are the following:
- to penetrate the clothes market by attracting and keeping customers that prefer to wear
classical both strictly tailored clothes and stylized fashion clothing;
- to gain 0.6% of market share in retail clothing industry at the end of the first operating
year and 1% at the end of the second year. This forecast was made taking into consideration the
figures provided by Productivity Commission of Australian Government (2011) where the
biggest retailers in clothing industry Just Group and Specialty Fashion have 5 and 4 percent of
the market share correspondingly;
- to open three more boutiques during first three years in Brisbane, Perth and Adelaide.
In the short time frame, it is expected to minimize the ratio losses and volume of costs and
reach the minimum level of income. In the long term run, in two years period the profit will be
increased as a result of successful marketing policy and gaining the popularity among the target
customers. Second year is expected to end with net profit of AUD$ 146 529. The number of
staff employed will no vary greatly and will include 12 employees including partners-owners of
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the business who will take an active part in all company’s activities. Product range will include 6
clothing groups each offered in several colours and sizes.
3.0 Marketing
3.1 Market research
Statistical data and analytical materials from government departments and industry
associations in particular Australian bureau of statistics, Australian Taxation Office, Department
of Commerce, Business Licence Information Service, Australian Retailer’s Association were
used for analysing the Australian textile, clothing and footwear industry, gathering the data about
the market volume, its potential and growth possibility, getting information on competitors, their
number and marketing strategy.
Smith (2012) stated that “the Australian clothing, textile and footwear industry is valued at
close to $3 billion, with retail and wholesale sectors adding another $7.5 billion, and employs
more than 200,000 people”.
3.2 Market analysis
Retail clothing industry is influenced greatly by the increased activity and presence of
global players and growing number of shopping websites. According to the Australian bureau of
statistics (2011) for the period 2009-2010 clothing manufacturing is characterized by AUD$
3477 mln of sales and services income, AUD$ 618 mln wages and salaries and AUD$ 1144 mln
of industry value added. Employment number was 19655 workers. Concerning the survival rate
of the new entries in retail business beginning from 2007, the percent of the survival is 56,9
percent in 2011 (Australian bureau of statistics 2012).
The main competitors in fashion design clothes are Nick Gower and Jean-Claude
Abouchar; Carla Zampatti (47 years at the market); Josh Goot, Dion Lee. Nick Gower and Jean-
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Claude Abouchar presented at the market since 2008 as Grand Social, weekly sales amount to
600 items. “In its first year in 2008, The Grand Social generated $450,000 in sales”. By 2011,
annual sales accounted already for $1.8 million. Carla Zampatti owned 14 stand-alone retail
stores where tailoring and evening clothes are represented. 95 per cent of this fashion designer
business is produced in Sydney. Josh Goot was awarded with Tiffany & Co Young Designer
Award in 2005. His collections have the highest prices comparing to others modern fashion
designers. Dion Lee used silk and wool from Italy and Japan. Designer’s collections are sold
locally, and one store is opened internationally Net-a-Porter (Smith 2012).
SWOT analysis of the chosen business is the following. Strengths that will allow the
business to survive in the first operational year and provide profit in the further periods are:
- producing and retailing high quality clothes;
- well trained and dedicated staff providing high level of services and thus increasing the
level of satisfaction and frequency of repeated purchases;
- appealing to the narrow niche of business people and those one who want to close
modern business clothes with twist and some kind of challenge to the classic tailoring clothes;
Weaknesses:
- huge funding for the beginning of the business;
- small scale of operations;
- relatively high price as for the beginner at this market;
- unknown label and brand;
Opportunities for the business are:
- to increase the market share by enlarging the business scale – opening new boutiques all
around the country.
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- to attract more customers with non-standard figures and tailor the clothes specially y for
them accordingly increasing the price for such a services and items manufactured.
- government actions towards tax incentive for the small businesses;
Threats imply the following situations:
- worsening the economic situation in the country that will cause the reducing the expenses
for luxury goods such as proposed by “Clever and bright” specially designed clothes;
- small number of customers due to high price and unknown yet brand;
- new competitors entering the market with the lower prices and lower production and
maintenance costs;
- global players with their huge clothing stores and discounts, internet stores.
3.3 Marketing plan
3.3.1 Products/services and target market
The “Clever and bright” company will propose 6 main business clothing direction:
women’s and men’s business suits (trousers), women’s suits (skirts), women’s dresses, women’s
skirts and blouses. Target customers of the company “Clever and bright” are 22-50 years
business people desiring to demonstrate their individuality and perfect fashion tastes. They are
working at different level of organizations from the specialists to top manager’s positions.
Sydney and Melbourne – two cities for the clothing boutiques opening- were chosen as the most
intense cities in terms of population and economic activity. According to the Australian bureau
of statistics (2011) the population of Sydney is 4.61 million people as for the June 2011. 31% of
Sydney's population was aged 20 to 39 years. The population of Sydney at working age is 3.21
million people. This figure accounts for around two-thirds of the state's total population. The sex
ratio is 98,2 males to 100 females. 4.17 million people live in Melbourne. Similarly with
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indicators of Sydney, 31% of Melbourne's population is aged 20 to 39 years. People of working
age (15 to 64 years) accounted for 69% of Melbourne’s population. The sex ratio for Melbourne
is 97.4 in June 2011, indicating that there are 97.4 males for every 100 females.
The key to success of implementing this business idea and competitive advantage of
proposed goods consists of the following:
- first two stores will be situated near the biggest business centres in Sydney and
Melbourne that will get the business people more informed of the new brand;
- possibility to tailor the business clothes for the specific events or individual sizes will be
the great advantage;
- high quality of all items will be proved by the certificates of quality;
- the stores will propose business clothes both for men and women together with the main
accessorizes like designed bags and belts;
- strong advertisement company will accompany the open of these new boutiques.
3.3.2 Placement
“Clever and bright” business clothing boutique will be opened near the biggest business
centres in Sydney and Melbourne. The advantages of the chosen places for the clothing
boutiques opening is transport accessibility, location near the places of high pedestrian activity,
the presence of the parking lot near the surrounding large business centres (Walsh 2009).
3.3.3 Promotion and advertising
Preconditions for the success of the chosen direction in business in particularly focused on
specific customer tastes and needs are:
- favourable location;
- intuition and knowledge of the existing market in choosing the demanded product
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- providing such level of service that make the customer loyal to the brand;
- highly professional and dedicated staff;
- efficiently organized organisation process: from supply and production to logistics
systems;
- attention to details in routine daily operations and strategic planning;
- great attention to pricing strategy, promotion and advertising policy.
It is planned to organize vivid and memorable ceremony of opening clothing boutiques.
More than 100 invites will be sent to Company’s potential customers and big corporations with
hundreds of employees working at office. According to accepted schedule the opening of the
new business clothing boutiques will be at November 2013 before the great period of December
holidays. 5% discounts cards will be proposed to the 20 first buyers. The system of cumulative
discounts cards will be introduced. According to Duffy (2004) such a system will be an effective
tool to attract more customers.
Naturally, the personal web site will be created with the aim to receive feedback from the
Company’s customers and enlarge the scale of sales. It will be also one of the steps in promotion
the new business clothing stores, the source of information about Company’s seasonal
collections and the discounts proposed. Advertisements in the Fashion Journal, Cosmopolitan
Australia as far as radio advertisements on several FM radio stations will be made.
The “Clever and bright” will propose the possibility for the customers to return or
exchange any business clothes that was bought within 14 days. It will be fulfilled with the aim to
build trustful relationship with Company’s customers and create a loyalty to brand.
3.3.4. Pricing strategy
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To introduce new business and to raise consumer’s interest to the specifically designed and
tailored business clothes low-price strategy or the penetration strategy will be chosen. According
to Sullivan and Adcock (2002) such a strategy provides the new player at the clothing market to
stimulate demand, to win over the competition and win market share.
After the consumers will be aware of the brand and proved high quality of clothes
produced price strategy will be shifted to setting higher price for each item. It is originally
assumed that this business will be focused on wealthy buyers who are interested in quality,
unique product, that is, a segment of the market where demand is independent of price
movements.
Prices were set upon the calculation of the full costs for production and retailing and were
adjusted with the market trends according to the data provided by Smith (2012). The authors
gave the statistics on the main Australian fashion designers - Nick Gower and Jean-Claude
Abouchar; Carla Zampatti, Josh Goot, Dion Lee and the price range on their clothes. Nick Gower
and Jean-Claude Abouchar propose their collections from AUD$ 500 to AUD$1600, Carla
Zampatti sells the clothes from AUD$ 149 to AUD$ 1249, Josh Goot’s clothing line is proposed
from AUD$195 to AUD$2945. Dion Lee produces two clothing lines: cheaper varying in price
from AUD$180 to AUD$600 and more expensive one selling from AUD$250 to AUD$2500.
Pricing range for the “Clever and bright” clothes from the AUD$200 to AUD$1300 for ready
clothes and it is calculated in each specific case when the customer orders to tailor clothes for his
size or taste.
3.3.5. Evaluation of marketing
Evaluation of the marketing efforts in promotion and advertising will be checked on the
quarterly time period based on the sales volumes, numbers of customers visiting the store and
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making the purchase. Moreover, small questionnaires that will state the main service criteria will
be propose for Company’s customer to be filled in. Based on the obtained results the
management of the Company will improve the quality of service or award the employees in case
of positive feedbacks.
4.0 Operations
4.1 Legal and licensing requirements
The name of the business is “Clever and bright”. It will be organized as a partnership
among the three partners with equal contributions to the share capital of 15 thousand AUD.
30 thousand AUD$ will be borrow as the long term loan at St. George Bank Limited at 7%
interest rate. The loan will be paid off in 2017.
The licenses will be needed for two business directions Clothing Manufacturing and
Clothing Retailing. According to the Business Licence Information Service (2012) it is required
to have street trader's license, national business name registration, registration of a trade mark,
sound recording reproduction license agreement, TFN application/enquiry - partnership.
4.2 Management details
Ownership will be divided among three partners with equal share in profits. It should be
mentioned that between three of the partners who will invest in this business, Steve Assad will
be responsible for the purchasing of high quality materials, textiles and inventory control, second
partner John P is a designer of women's and men's clothing lines, and third partner Mark P will
be responsible for the production and sales.
4.3 Organization and structure and staffing
Retail industry especially clothing boutiques is labour intensive (Australian Retailer’s
Association 2010) that is required salespeople who will keep the atmosphere of friendliness and
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customers for enjoyable shopping. The task for management for successful business operating is
to find four office employees for the clothing store who will be working with clients and four
tailors sewing the clothes according to the sketches of the designers-partners.
It is planned to hire two sales clerks who will be responsible for the correct merchandize of
the clothes at the boutique and will be accountable for the final settlement with the customers,
two sales consultants who will be charged to consult the customers on the needed size, quality of
goods and others functions related to the customer service. All personnel will have 2 or more
years of professional experience in retail business preferably in luxury goods or clothes selling.
For the manufacturing process, four tailors will be hired. They will work at sewing workshop
from 9 a.m. till 6 p.m. All requirements of the labour legislation according to the Australian
Department of Commerce (2012) including paid vacation, sick leave and others will be fulfilled.
The average rate of monthly wages for the sales clerks will be approximately $AUD 3500.
Sales consultants will earn near $AUD 4500 monthly. Additionally, the sales plan and the
incentives upon reaching the established sales figures will be introduced. $AUD 100 will be
additional monthly bonus for attracting the client who would like to order special suit or dress
designed. Tailors and dressmakers will earn near $AUD 3800 monthly (Australian bureau of
statistics 2012). All positions will be proposed as permanent full time positions.
4.4 Professional advisers
Grosvenor Management Consulting will be a consultancy company for the advices on the
optimization of planned and actual expenses and reaching the target level of net profit. This
company has several subsidiaries in Sydney, Melbourne and Canberra. The main office is
situated at Level 12, 220 George Street, Sydney. Moreover, it is planned to use outsourcing
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accounting services form Taylor Woodings Company with the headquarters in Sydney for the
record-keeping and financial consultancies.
4.5 Insurance and security issues
To predict and secure all unexpected events in the operational activity of the clothing
retailing clothing business insurance covering public liability, burglary, fire and other defined
events, money, glass, shortage in turnover/business interruption, machinery/equipment
breakdown, personal injury and illness, workers compensation will be needed. This insurance
package costing will be provided from the Australian based insurance company NRMA
insurance.
4.6 Business premises
The first store will be opened in the surroundings of the Grosvenor Street business centre.
The appropriate 60 square meters store will be rent. Rent price is AUD$ 43 200 per annum. The
same store will be opened in Melbourne near the Exchange Tower Business centre. The gross
area will amount to 70 square meters. The expenses for rent this store are AUD$ 41 000 per
annum. The stores will be relatively small in space because the emphasis is made on
compactness and the right merchandise of clothes.
It is very important to make an impressive interior design with an emphasis on the
laconism and few accents in the form of men and women silhouette at office work. Spectacular
signboard and well design showcases will be the first step in attracting target customers. Each of
the stores will have one dressing room.
4.7 Equipment required
There are two lines of capital expenditures for this clothing business. First line of capital
expenditures will be connected with the purchasing of professional equipment for the sewing
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workshop. It will be two sewing machines, embroidery machine, two ironing presses, and irons
(Johnes 2006). Together with the furniture the total amount of the capital expenditure for this
direction will be $AUD 10 866.
Second line of capital expenditures will be connected with the equipping of the boutiques.
It will be necessary to repair the leased premises. New chandeliers, wallpapers, mirrors,
accessories will be bought to keep the chosen classical style with modern bright “touches”.
Signboard, cash registers, software for the recording of inventory and sales turnover,
mannequins, shelving supplies, clothing slant-arm racks, fixtures, wooden hangers,
Tagging supplies (sale, layaway and hand tags, loops for security) and packing supplies
(protective covers) will be needed. The estimated costs for this equipment are $AUD 15 000. It is
also needed to purchase accounting software costing near $AUD 1500.
4.8 Production process
The management of the company “Clever and bright” decided from two opportunities of
business process:
- to concentrate the efforts on the outsourcing;
- to produce goods by itself that is to conduct in-house production.
It will be clearly easier to buy a franchise of the world known company and to make
money by selling copyright. The desire to propose unique clothes combining classics and
modern, and allowing its owner to stand out from the crowd of ordinary suits and dresses
prevailed.
The partner responsible for the purchasing fabrics and accessories for business clothes
tailoring chose the supplier. It is Sydney based company E&M Greenfield, a wholesale supplier
of fabrics and haberdasheries operating 58 years at the market and collaborating with the fashion
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industry. Fabrics that will be purchased are wool, silk, organza, lace, velvet, cotton for the total
sum of $AUD 10 000. The office for the sewing workshop will be rented at the Sydney suburb.
The cost for such a rent is $AUD 2000 monthly. Readymade clothes will be transported to the
clothing boutiques.
4.9 Critical risk/contingency plans
The critical risks that should be taken into account are:
- too low demand and sales for designed;
- fire or other disaster;
- loss of key supplier
- loss or illness of key employee
- illness of one of three business partners;
- robbery.
5.0 Financial projections
5.1 Basic assumptions and information
It is assumed that inflation rate will not vary significantly and interest rates will be the
same as in the year of business opening. It is also assumed that there will be some decrease in
sales in summer and boost during the December-January holiday period. All information on
current taxes was taken from the Australian Taxation Office (2012) information.
5.2 Analysis of financial forecast
5.2.1 Capital expenditure forecast
Manufacturing and retail business require extensive investing. The projected figure is
given in the Table 1.
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Table 1
Capital expenditure forecast
Item Price for one item,
AUD
Quantity Total Figure
Sewing machine Singer 3 458 2 6 916
Embroidery machine 1 750 1 1 750
Ironing press 800 2 1 600
Iron 150 2 300
Furniture (chairs,
cabinets, shelves)
300
Equipment for the
boutiques
15 000
Total amount 25 866
According to the Australian Taxation Office (2012), Company “Clever and bright” is an
eligible small company for an income year, whereas it carried on a business in that year and had
an aggregated turnover of less than AUD$2 million. That is why the Company can use the
simplified depreciation rules: “depreciating assets costing less than $1,000 each can be written
off immediately and other depreciating assets with an effective life of less than 25 years are
pooled in a general small business pool and deducted at the rate of 30%” (Australian Taxation
Office 2012).
5.2.2 Sales forecast
To prepare the sales forecast Company’s products were divided into 6 categories: category
1 - women’s business suits, category 1 - men’s business suits (trousers), category 3 - women’s
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suits (skirts), category 4 - women’s dresses, category 5 - women’s skirts and category 6 –
women’s blouses. 2-year forecast is presented in the Table 2.
Table 2 Sales forecast (AUD$)
year 1 year 2
Cat 1 units sold 150 200
Sale price/ unit 1 000,00 1 100,00
Cat 1 TOTAL 150 000 220 000
Cat 2 units sold 170 200
Sale price/ unit 1 115,00 1 115,00
Cat 2 TOTAL 189 550 223 000
Cat 3 units sold 120 160
Sale price/ unit 800,00 900,00
Cat 3 TOTAL 96 000 144 000
Cat 4 units sold 150 190
Sale price/ unit 1 200,00 1 300,00
Cat 4 TOTAL 180 000 247 000
Cat 5 units sold 250 300
Sale price/ unit 300,00 350,00
Cat 5 TOTAL 75 000 105 000
Cat 6 units sold 175 250
Sale price/ unit 400,00 450,00
Cat 6 TOTAL 70 000 112 500
Total 760 550 1 051 500
5.2.3 Cash flow forecast
The cash flow forecast for two operational years is described in the Table 3.
Table 3 Cash Flow Forecast (AUD$)
Cash on Hand 45 000 33 217
CASH RECEIPTS
Cash Sales 760 550 1 051 500
Collections fm CR accounts
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Loan/ other cash inj. 30 000
TOTAL CASH RECEIPTS 790 550 1 051 500
Total Cash Available (before cash out)
835 550 1 084 717
CASH PAID OUT
Purchases (fabrics and accessories)
11 200 15 600
Gross wages (exact withdrawal) 374 400 380 600
Payroll expenses (taxes, etc.) 112 468 114 568
Outside services 61 500 72 000
Repairs & maintenance 12 000 2 000
Advertising 2 000 4 000
Accounting & legal 47 890 58 000
Rent 111 200 115 000
Telephone 1 200 1 300
Utilities 800 1 000
Insurance 32 000 32 000
Interest 1 859 1 713
Other expenses (specify) 450 2 000
SUBTOTAL 768 967 799 781
Loan principal payment 7 500 7 500
Capital purchase (equipment) 25 866 1 934
TOTAL CASH PAID OUT 802 333 809 215
Cash Position 33 217 275 502
5.2.4 Projected profit and loss statement
Table 4 is the Projected profit and loss statement of the “Clever and Bright” Company
Table 4 Projected profit and loss statement (AUD$) Year 1
%
Year 2
%
Sales $760 550 100,00% $1 051 500 100,00% Cost/ Goods Sold (COGS) 250 400 32,92% 410 500 39,04%
Gross Profit $510 150 67,08% $ 641 000 60,96%
Operating Expenses
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Salary (Office & Overhead) $192 000 25,24% $ 196 000 18,64%
Payroll (taxes etc.) 57 621 7,58% 58 832 5,60%
Outside Services 54 000 7,10% 55 000 5,23%
Repairs/ Maintenance 12 000 1,58% 2 000 0,19%
Advertising 2 000 0,26% 4 000 0,38%
Accounting and Legal 24 500 3,22% 26 000 2,47%
Rent & Related Costs 108 200 14,23% 108 200 10,29%
Telephone 1 200 0,16% 1 300 0,12%
Utilities 800 0,11% 1 000 0,10%
Insurance 35 000 4,60% 35 000 3,33%
Interest 1 859 0,24% 1 713 0,16%
Depreciation 4 256 0,56% 5 426 0,52%
Total Expenses $493 436 64,88% $ 494 471 47,03%
Net Profit 16 714 146 529
Conclusion and future
The idea for this business appeared as a great desire to provide Australian business women
and men with the possibility to create their own style while being clothed in classic and business
style. It should be underline that the main idea for the business is to design and tailor clothes
with twist that is to propose the fashion-conscious customers a modern look with sense of
individuality and personal charm. Fashion is a good business for gaining good profits but
efficient marketing policy should be applied. It is planned to increase production and enlarge the
scale of sales by opening new clothing boutiques.
6.0 Timetable
The following Table 5 provides the information on the milestones for the business opening
at the beginning of November 2013.
Table 5
Timetable of planned obligatory actions
Date Tasks to be achieved
August 2013 Obtain all needed licenses and permissions including registration for goods and
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services tax and tax file number
End of
September
2013
Find an appropriate stores for rent and signing the leasing contract
mid-October
2013
Hire professional service company to repair the stores
June 2013 Buy sewing equipment and other equipment for the sewing workshop
October 2013 Purchase equipment for the clothing boutiques
June 2013 Sign a contract with the fabrics and accessories supplier, find an office for the
sewing workshop for lease
June-
October 2013
Produce first clothes in the sewing workshop
End of
October 2013
Opening ceremony preparation (flyers and invitations sending)
7.0 Appendices
Projected Balance Sheet (AUD$)
Year 1 Year 2
Assets
Current Assets
Cash in bank $ 45 000 $ 33 217
Accounts receivable - -
Inventory 12 080 14 881
Prepaid expenses - -
Other current assets - -
Total Current Assets $ 57 080 $ 48 098
Fixed Assets
Machinery & equipment $ 16 487 $ 18 421
Furniture & fixtures 6 865 7 621
Leasehold improvements - -
Land & buildings - -
Other fixed assets - - (LESS accumulated depreciation on all fixed assets) (4 256) (5 426)
Total Fixed Assets (net of depreciation) $ 19 096 $ 20 616
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Other Assets
Intangibles $ 1 500 $ 1 500
Deposits - -
Goodwill - -
Other - -
Total Other Assets $ 1 500 $ 1 500
TOTAL Assets $ 77 676 $ 70 214
Liabilities and Equity
Current Liabilities
Accounts payable $ 507 $ 2 360
Interest payable 1 859 1 713
Taxes payable 310 500
Notes, short-term (due within 12 months) - -
Current part, long-term debt 7 500 7 500
Other current liabilities - -
Total Current Liabilities $ 10 176 $ 12 073
Long-term Debt
Bank loans payable $ 30 000 $ 20 641
Notes payable to stockholders - -
LESS: Short-term portion (7 500) (7 500)
Other long term debt - -
Total Long-term Debt $ 22 500 $ 13 141
Total Liabilities $ 32 676 $ 25 214
Owners' Equity
Invested capital $ 45 000 $ 45 000
Retained earnings - beginning - -
Retained earnings - current - -
Total Owners' Equity $ 45 000 $ 45 000
Total Liabilities & Equity $ 77 676 $ 70 214
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