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CHAPTER ONE

1.0 BACKGROUND INFORMATION

With todays modern world dressing has become the most attractive and largest area of

spending. Many people spend a large percentage of their salaries on dressing because its a

necessity and above all people invest more money on this, in order to show their financial

status.

The desire for most people to be extraordinarily smart when they are having ceremonial

parties ,visitations ,meetings and celebrations has made them to demand for distinguished

things, .the desire for western kind of dressing makes boutiques the most desired places for

shopping for clothes shoes and expensive jewelry.

From this observation we have decided to borrow that knowledge and some huge amount

of money to top up the little that we gathered to start a boutique so as to satisfy the

increasing demand for the items mentioned above.

We have realized that desire for such activities parties, celebrations are most common in

the urban centre that is why the location of the business is in the urban centre of fort-portal.

1.1 Name and Address of the Business

The name of the enterprise is MIGUELS BOUTIQUE

The Address of the boutique is;

Alexs boutique

P.o Box 2323

Fort-portal kabarole

(Uganda)

1.2 Name and Address of the manager

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NIWAGABA EMMANUEL

P.o Box 2323

Fort-portal

Uganda

1.3 Nature of the Business

Miguel enterprise will deal in a number of goods and services and these include the

following:

Selling of gents suites, ladies clothes, shoes, childrens wear, jewelries such as earrings,

watches, hand rings.

1.4 The statement of financing

Financing of the business will be through borrowing from friends, financial institutions like

banks, donations.

1.5 Statement of confidentiality

I declare that the information given in this plan is to the best of my knowledge and ability

valid and directly relates to the business and its proprietors.

1.6 Mission

To provide products to customers, promote high quality products and advance a good will

and reputation of the business.

1.7 Vision

To be nationally recognized for the provision of good quality products and great

commitment to our business.

CHAPTER TWO

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2.0 EXECUTIVE SUMMARY

2.1 Introduction

This business plan is designed to assist and guide the management of the business. To

equip the management team with the skills and knowledge about the running of the

business. This will help them to formulate a high quality business and activities that will

effectively promote the mandate and mission of the business management.

The business plan will aim to assist the business management by setting out procedures and

requirements for business planning, reporting, monitoring and evaluation so that it can

carry out the business operations successfully in line with its mandate, functions, defined

mission and vision.

The business will be established in the western part of Uganda in kabarole district, fort

portal town on Rukidi 3 Street. The firm will rent a commercial building on plot 106 which

will be renovated to suit the business arrangement. The capacity of the premises will be

around 50square meters. A range of products will be dealt in while considering all age

brackets, lifestyle, career, occasions, parties, ceremonies.

2.2 Product description

The range of products that the business will deal in includes ;gents, shirts, jean, trousers,

suits Jackets, t-shirts ,trousers ,pants ,stockings Skirts, Blouses, Night dresses, wedding

gowns, bras, Play clothes, for children, hand bags, safari bags, designer bags, shades, sun

glasses watches ,rings, bungles boots, snickers leather shoes ( open and closed),

2.3 Customer description

The business will focus on people from western, central, and eastern parts of the country

and different categories of people will be focused on ranging from Children with the age

bracket of 5-12 years, teenagers who are of school going age Ladies and Gentlemen most

will be the working class whos expenditure is high and They normally engage in several

occasions like parties, ceremonies which require them to be smart.

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The old persons are also to be considered .this will focus on oldies attire i.e. late 90 s,

Celebrities focus will be put on the musicians, actors, comedians, sports men and women,

the middle class like teachers, lecturer and the poor farmers

2.4 Ownership of the business

The owners of the business will include the following Kada Djongo Miguel, Niwagaba

Emmanuel, Gatta Marius who are entitled to contribute an amount of money that will

determine the ratio of profit one will be given.

2.5 The industry, market and competition

2.5.1 Industry

The Cloth and wear industry is expected to experience a growth associated with the latest

business boom. Nationally, it has been an averaging annual revenue increase of 30% since

18th century. The need for parties, ceremonies; shows has open an opportunity for the

success of this industry.

2.5.2 Market

Initially the demand for clothing was quite low because people were still putting on

backcloths, but as days went on people developed a feeling of being unique from others

this called for an increased demand for new fashion and style for clothes and shoes hence

rising the demand by the end of the 18 th century. Since then demand for this products has

kept on increasing each and every year. Its on to this that we will conclude that the

demand will steadily increase as years go by. Infact as the trend of birth keeps going high

even the market increases.

2.5.3 Customer profile

Miguels boutique will have a solid customer base most of whom will have used the

product for along time and have realized the quality of the products .From the customer

care that will be offered which other boutiques cant offer, it will encourage repetitive

purchase from the customers

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2.5.4 Competitive analysis

Given the current trend in our population and the growth of the urban centre, the demand

for our firm will continuously rise. This will offer us an opportunity to expand and grow

our business with less fear of uncertainties since its clearly predictable that the demand

will continue to increase.

Competition that exists now may not be compared to that of some years ahead because as

per now a few boutiques have been established but we expect more to be established

because of the desire to join the profitable business .though there is competition expected

the boutique will have a greater advantage over other boutiques which includes.

Location

The location of this boutique is more strategic by the fact that it is located at the main street

where most people do their shopping unlike others which are located in none busy

streets .This gives it a better competitive advantage.

Currently, low direct competition of products which exists alongside the supply of services

Provides door to door services

Up until now, the sales person has to go in the neighboring areas collecting orders and later

bring them to the company premises, then delivery of the services has to be made at a later

date as agreed upon with the person who will have collected the order. This has made the

boutique to have a competitive advantage over other business-related companies who do

not provide such door to door services and yet they are competing for the same customers.

Transport Services

The few boutiques that have been established do not provide transport services for their

customers, therefore by delivering products to buyers who will purchase these products in

large quantities will encouraging them to buy in bulk or large amounts hence beating the

competition

2.5.5 Sources of finance

Loan

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The management will acquire a loan from Entrepreneurship Development Bank in Uganda

(EDBU) amounting to 20,000,000 (Twenty million shillings).

Allocation of funds

Transport 900,000

Clothing 10,000,000

Jewelry 2,000,000

Shoes 3,500,000

Labor 700,000

Furniture and fittings 6,500,000

Weaves 5,500,000

Wages and salaries 900,000

Apart from the loan the owners also have to contribute money amounting to 10,000,000

From the loan of 20,000,000 and the contribution we will be able to obtain large stock of

products and charge relative prices in order to maximize sales and as well profit. This will

help us to pay the loan promptly.

CHAPTER THREE

3.0 Problem identification

In fort portal there are few boutiques and even the few do not deal in a range of items they

mostly sell second hand clothes and few first hand, this is not because they do not want to

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do so but because they could not acquire a large amount of capital .These concentrated on

their own saving to establish the business and through inheritance of business from their

parents.

Almost all the boutiques charge higher prices on even outdated clothes .this higher prices

are evident from the decreasing demand of these products.

The location of other boutiques is not strategic enough to attract travelers, journalists;

tourists who may want have quick purchases because they are far conveniently located in

the main street where these people do their shopping.

3.1 Justification

The many shortfalls of these boutiques gave an encouragement for establishment of

boutique that would deal in wide range of products that are affordable by all kinds of

people both poor and rich by charging relatively low prices on some products and charging

expensively products that best fit the rich, and above all easily accessible hence

necessitating it to be set up in the main street of fort-portal.

On other important factor that stimulated the need to establish the type of business is the

ease of acquiring a loan which other boutiques have initially failed to do .this has made

them to operate with a limited capital as compared to the one that will be employed in this

business.

The most important aspect of business is the services it offers .the new business will focus

on providing a number of services for example providing transport for customers, giving

them helpers to off load bulky purchases, and promoting products of agents.

3.2 Objectives of the boutique

To establishing branches in urban centre and towns

To provide high quality products to our customers

To provide the most effective and efficient customer care

To capture the biggest market share in the first year of operation

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To develop new products and market them

To build a good reputation and strong relationships with different people

To create and initiate new fashion

To increase sales and reduce prices

To creating and occupying a large market

To building good customer care

CHAPTER FOUR

4.0 Business description

The business will deal with selling clothing, shoes, expensive jewelries, and bungles for

men, women, children and adults. Great focus will be on western kind of dressing like

back shows, leggings, and old school type of dressing code. This is because African most

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especially Ugandans tend to imitate the kind of fashions of the western world. It implies

that a large proportion of purchases will constitute modern wears and resent fashions.

20% of the stock will be on the African fashion like legesa, comez, kanzu, etc and oldies

fashion, suits of all kind will be available for all age groups.

Product description

A range of products will be dealt in while considering all age brackets, lifestyle, career,

occasions, parties, ceremonies. The range of products includes the following:

1) Clothes

1. gents shirts ,

2. jean trousers3. suits

4. jackets

5. t-shirts ,

6. trousers ,

7. pants ,

8. stockings

9. Skirts,

10. Blouses,

11. Night dresses,

12. wedding gowns,

13. bras,

14. Play clothes, for children

Bags

1. hand bags

2. safari bags3. designer bags

3) Bracelets and jewelry

1. shades,

2. sun glasses

3. watches ,

4. rings,

5. bungles

6. boots,

4) Shoes

7. snickers

8. leather shoes ( open and

closed) ,

The business will also offer the following services:

Providing tailoring services

after sales services like transport, business advise, or technical advise or

making decisions for customers like investment decisions

providing transport for customers who have placed large orders

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extending credit for customers

helping those who would like to open up outlets

giving donation

giving bursaries to tailors

CHAPTER FIVE

5.0Management of business

The boutique will be a privately owned business where several people will be invited to

buy shares. The business will have the general manager as its head, who will be the overall

controller and overseer. The life of the business will depend on him. Below whom is the

assistant general manager who takes care of the business when the general manager is not

around. An accountant takes care of the business books of accounts. The finance manager,

sales marketer, and procurement officer. In the above structure, the management team will

be mandated to coordinate and supervise the lower staff. Other shareholders will directly

participate in various areas that require various skills and specialties.

Apart from these we will also have the procurement officer and the legal adviser.

CHAPTER SIX

6.0 Business premises

We intend to establish the business in the western part of Uganda in kabarole district, fort

portal town on Rukidi 3 Street. The firm will rent a commercial building on plot 106 which

will be renovated to suit the business arrangement. The capacity of the premises will be

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around 50square meters. The business will have branches in the central and eastern part of

the country. For convenience its offices will be located in Kampala along Entebbe road on

plot 295 so as to reduce the transport costs for customers from other parts of the country.

CHAPTER SEVEN

7.0 Machinery /equipments

First and foremost the business requires a large space of about 50 square meters so that

there is space for customers to move a round selecting what is of their choice.

The boutique require quite expensive equipments like dry cleaners, washing machines,

dryers, automatic ironing machines ,sowing machines that will help in case of torn

clothes ,necessary furniture fittings and fixtures ,decoration i.e. carpet, lighting .the interior

design should actually be attractive.

It also requires computers for recording, analyzing and reporting financial data relevant for

decision making.

Automobiles like generator, vehicles for management and another for ferrying products.

CHAPTER EIGHT

8.0 Product plan

8.1 Source of products

We have secured a contract with cloth dealers and shoe manufacturers in America and

England therefore Most of the products will be imported from these two countries. The

companies include Nike, rebook for shoes and Sean jeans, and leather America. A South

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African company has agreed to supply the business with all the necessary jewelry .apart

from these sources we will purchase some products from some of the local designers like

east African designers.

8.2 Materials of products

The clothing material is mostly made of cotton, silk and some silver and gold coated for the

high class.

8.3 Technology

A high technology is to be developed consisting of computers which are to help in

accounting purposes, detecting theft, and for inventory control purposes. We intend to

install alarms that are connected with the police department.

8.4 Arrangement

The products will be arranged in shelves to ease selection .these will be displayed

according to their categories .in the categories price tags will be put on every product so

that the customer can easily find what suits his or her budget.

8.5 Cleaning

To keep the products clean and tidy we intend to employ people to clean the products each

day and to organize them when a customer in the process of selecting disorganizes them.

8.6 Delivery of product

When the product is imported, it will be delivered up to the main branch which is in

kabarole and thereafter distributed to other branches .in every branch a vehicle is available

to help deliver products to customers who have bought in bulk.

The purchases will be as follows:

Clothes 50 bails

Shoes 5 bails

Jewelry 12 (5x5) meter box

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8.7 Sales

We intend to use the main branch to supply to the western part ,then Kampala branch will

have to serve the central part ,the branch in mbale will serve the north and eastern parts in

order to help reach all the customers and to maximize sales.

We also capitalize in increasing the stock during the festive seasons like Christmas, Easter,

iddi days etc.

CHAPTER NINE

9.0 Marketing plan

9.1 Introduction

Marketing the product is one of the most important activities that the firm will pursue in

order to constantly keep up to-date with its customers the following strategies will

therefore be used to market the products.

Having established the business it is important to lay down marketing strategies to be used

in order to make sure that the product reaches to the people and they get to know what kind

of business this is, what products its dealing in, the services offered, and information on

prices.

A number of strategies will be employed by the management and these include the

following:

9.2 Marketing segmentation

In marketing our products we mainly segment our market into customer segments where

we will mostly concentrate on the rich people who have excess to spend on luxuries and

status which call for expensive clothing and wear.

We are going to take care of seasonal demands for clothes, shoes because this is when

demand for these products is high.

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9.3 Price

Due to the fact that a few people in fort portal earn high income relatively low prices will

be charted on the products so as to attract even the low income earners.

9.4 Sales promotion

The success of is imagined to going to be based on the promotional factor to be put in place

.the following promotional strategies where sought fit for the business to prosper and beat

its competitors

Offering discount

Customers who will purchase in bulk will be given a trade of at least 10% discount and

those who buy with cash get a cash discount of 5% .this is viewed at encouraging bulk

purchases and at cash.

Persuasive adverts will be published in the news papers, writing magazines posters, and

developing interesting television advertisements and shows

In addition regional shows will be staged will so that the best participants walk away with

different products .this increases sales since people will be attracted to buy these items at

the promotion.

9.5 Places

Products will be delivered to customers who have placed large orders

Branches are to be established in at least every region in the country most especially

western region like kyenjojo, kasese, Hoima and the central region most especially

Kampala, masaka.

9.6 Participating in trade shows every year. When customers come across the products at

the trade they will gain interest in the product.

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9.7Advertisement

Several advertisements on electronic media such as television, radios internet, websites and

other media will be run so as to make prospective buyers aware of our products.

Products will be displayed in such a manner that people are able to view products even

when they are at the road side.

Print media like news papers, magazines, yellow pages, direct mail will be used.

Where necessary the word of mouth will be used .this is mostly suitable where people may

have no access to the media.

9.8 Organizing competitions

Sports and street competitions are to be organized in different region so that people come

to discover what kind of products the business deals with .several prices of the products

will be given to winners of this competition.

9.9 Provide after sales services

After a customer has bought the product, he can be helped in transporting them, packing

them in his or her store or outlet and also finding out how their businesses arte doing on.

9.10 Donations and bursaries can be offered to certain special people or customer for

example offering a bursary to the child of a customer.

9.11 Credit facilitation

Selling products on credit terms to some customers after considering the 6cs of credit i.e.

capital, character, collateral, condition, capacity, and connection

CHAPTER TEN

10.0 Organization and Management structure/team for the business

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10.1 General Manager

He /she will be responsible for all the activities of the business .he is the controller .he is

supposed to guide the entire workers when they are carrying out their activities.

10.2 Assistant general manager

Responsible for carrying out activities under the general managers control.

He is also required in absence of the general manager to perform the roles which were to be

performed by the general manager.

10.3 Accountant

He will be responsible for maintaining the books of accounts of the business.

10.4 Sales manager

He is required to draw strategies for increasing the sales.

10.5 Marketer

Responsible of drafting and draw marketing plans and carrying out strategies on how

products should be marketed within the competitive market

10.6 Finance manager

Responsible for all the finances of the firm. This includes planning for the sources of

finance, the investment plans, and managing the financial inflows and outflows

10.7 Procurement officer

Performs the task of searching for better sources of products /services, handles all

purchasing activities in the business in terms of quality quantity and type of product

material are handled by this person

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10.8 Other workers who include

Legal adviser

Takes care of all legal activities like leading the firm in courts of law, preparing the legal

documents that the firm is required to posses

Boutique attendants

Welcome customers, arrange products direct customers

Security guards

Safe guard the business premises and to take care of the customers properties like vehicles,

bags.

Cleaners

Drivers

Potters/casual laborers

CHAPTER ELEVEN

11.0 Financial plan

11.1 Assumptions

The following assumptions have been made when looking at the financial aspects of the

project.

The firm is to start operations on 1 November 2010

Our financial year runs from November to December of every calendar year

The financing of this project is by the share holders and a loan from the bank

The demand and the price will continue to increase

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Our competitive advantage will continue to remain stable and favorable

The national inflation rate will continue to remain stable

The boutique will not only depend on the borrowed funds but it will also lobby some fund

from friends and donors to finance its expenditure.

Borrowing will be a convenient means of attaining capital although this is risky because

some times the business may fail to perform to its expectations to be in position to pay the

loan. To counter this problem we decided to develop a financial plan which will guide the

financial manager to allocate finances appropriately.

According to this financial plan the business will be expected to earn profits as shown

below:

FINANCIAL PROJECTION PLAN

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DETAILED FINANCIAL BUDGET

NUMBER PARTICULAR AMOUNT

1 Snickers (for both male and female) 50000

2 Black shoes 20000

3 Earrings 5000

4 Pants 30000

5 Shirts 50000

6 Jeans 30000

7 Jackets 500000

8 Suits 1000009 Hand Bags 10000

10 Stockings 3000

11 Pants and Snickers 12000

12 T-Shirts 20000

13 Shades 15000

14 Watches 2000

15 Blouses 40000

16 Bracelets 2000

17 Night Dresses 1200

18 Weaves 23000

19 Brass 150020 Boots 20000

21 Dolls 3000

TOTAL 498500

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PARTICULARS FINANCIAL YEAR

2012 2013 2014 2015 2016 2017 TOTAL

UGX000

UGX000

UGX000

UGX000

UGX000

UGX000

UGX

000

PROJECTED

SALES

18000 20000 22000 24000 26000 28000 138000

PROFIT 20%

SALES

3600 4000 4400 4800 5200 5600 27600

PROJECTED

EXPENSES

14400 16000 17600 19200 20800 22400 110400

AMOUNT OF

EARNINGS (5%

Profit)

180 200 220 240 260 280 1380

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CHAPTER TWELVE

12.0 Risk management plan

There is a believe that the business will under go some risks therefore a risk management

plan for the business will be taken care of as follows

12.1 Insurance

The business will be insured against fire and theft with the national insurance corporation

in order to prevent loss of property by either fire or theft which may lead to collapse of the

business

12.2 Employing security guards

Three security guards will be employed ,one will be outside to watch peoples movements

around the boutique and control the parking yard ,the other will be at the entrance to help

watch peoples actions at the counter .He ensures that the accountant and customers plus

their properties are safe and help to control peoples movements inside.

12.3 Installing C.T.V cameras

These cameras are for recording whatever movements that customers make so that incase

one tries to malpractice then he or she can easily be caught. If the person is not caught

chances of catching him are high because there will be evidence.

12.4 Watch mirrors

This are mostly installed on the walls and in some part on the roof so that the attendants

can watch people closely.

12.5 Installing alarms

Alarms that are connected to police department will be purchased in order to prevent

smugglers and thieves.

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CHAPTER THIRTEEN

13.0 Exit strategy

In case the business is not not successful as expected we may need to divert to another

form of the business and by so doing we will need to adopt ways of systematically

disposing some of the products and assets.this include:

13.1 Diversification

Products will directly be sold to the consumers at a cheaper price and giving discount so as

to acquire enough capital for the new business.

13.2 Auctioning the business

In case we need to deal with a completely different product we shall auction the whole

business to prospective buyers in a competitive market. This will enable us to acquire a

higher price for the assets and inventory because the highest bidder will take it all and

hence change the business

13.3 Merging

Another option is to merge the old business with the new one incase they are related or deal

with the same products. The unnecessary assets and products will be disposed off

13.4 Selling intermediaries

We may also sell to those who are willing to take over the business or they need to buy and

resale it at a profit. This will make us to avoid losses that would be incurred in the process

13.5 Monitoring and evaluation:

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When the planning is done, the plan has to be followed up by monitoring it and evaluating

how much achievements have been made so as to judge the performance of the business

We will look at the risks associated with the business for example the level of competition,

costs, interest rates and inflation.

However, the business will try to reduce the risks where possible, after noticing the

business risks. The business will go ahead to evaluate the risks and find out which ones are

desired and will lead to the satisfaction of the customers needs.

The routine monitoring and the evaluating tools to be used will entail the following;

i) Regular meetings among the management team.

ii) Use of research questionnaires to find out customer likes and dislikes.

iii) Auditing the books of accounts to avoid errors and fraud

Conclusion

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We have decided to choose a boutique because after analyzing the trend in which this

industry is not only growing so fast but also its profitability is so high and since there is a

bit of less competition in kabarole we have decided to set it up there .on analysis there are

many factors that have lead to the growth of this industry some of which include; desire to

attend parties ,celebrations ,seminars, meetings which need one to dress smartly ,the desire

to portray status in terms of clothing and wear.

An inquiry from the select garments, one of the most successful dealers in clothing and

wear showed that thus business earns a profit of at least 30% of the capital invested. This

thus encouraged us to establish a boutique business.

Recommendation

From the financial projections that have been shown, the business is expected to earn

profits and enable it finance the loan and pay the operating costs and pay the capital interest

of borrowed funds. For this case we recommend that you should adopt this plan

APPENDICES

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Legal requirement

According to the Ugandan laws any person is free to establish a boutique as long as he has

the necessary capital.

However before, when and after establishing the business, it has to meet the following

requirements

1. The business must deal in products accepted by both the society, the ministry of

trade and the Uganda revenue authority

2. Register with local government

3. Pay tax/license

List of directors

Niwagaba Emmanuel ... Managing director

Gatta Marius...Assistant managing director

Mukani Philip ... Deputy managing director

Kada Djongo Miguel ... Financial manager

Lauriane Faridah ... Branch manager (Kampala)

Kadja Clarisse .. Branch manager (Mbale)

Gatta Solange. ... Branch manager (Gulu)

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