Business plan example: retail industry

Business plan for

Mama Africa Closet,

second-hand clothing store

Executive Summary

Mama Africa Closet is a retail business in Durban, South Africa, specializing in second-hand clothing for men, women, and children. With a focus on affordability and sustainability, we provide stylish, pre-loved fashion at prices accessible to the local community.

Our goal is to become a popular destination for budget-conscious shoppers and fashion enthusiasts in Durban. Within the first year, we aim to establish a loyal customer base, achieve a monthly turnover of R40,000, and expand our inventory to include vintage and branded items.

1. Business Strategy

Core Business: Retailing second-hand clothing with a focus on quality, affordability, and sustainability.

Target Market:

  • Budget-conscious families in Durban.
  • University students and young professionals looking for affordable fashion.
  • Fashion enthusiasts seeking vintage or branded items.

Objectives:

  • Achieve a monthly turnover of R40,000 by month six.
  • Build a customer loyalty program within the first year.
  • Launch an online store by the second year to expand reach.

2. Marketing Plan

Client Profile:

  • Local families looking for everyday clothing.
  • Young adults interested in unique or branded pieces.

Competitor Profile:

  • Local charity shops and informal second-hand traders.

Product Profile:
Our collection includes:

  • Everyday wear for men, women, and children.
  • Branded items like Levi’s jeans and Adidas sneakers.
  • Vintage pieces such as retro dresses and jackets.

Pricing Strategy:

  • Everyday items priced between R50 and R150.
  • Branded and vintage items priced from R200 to R400.

Promotional Strategy:

  • Social media campaigns showcasing new arrivals.
  • Loyalty program offering discounts after every 5 purchases.
  • Collaborations with local influencers to promote the store.

3. Operations Plan

Store Setup:

  • Located in a busy shopping area in Durban with high foot traffic.
  • Store layout designed for easy browsing, with sections for men, women, and children.

Inventory Management:

  • Clothes sourced from wholesalers and community donations.
  • Regularly update stock with fresh items to keep customers returning.

Quality Control:

  • All items inspected, cleaned, and repaired before being placed on the shelves.

4. Staffing Plan

Initial Team:

  • Owner/Manager (handles buying, marketing, and overall operations).
  • Two retail assistants (customer service and inventory).

Growth Plan:

  • Hire an online sales assistant once the e-commerce store is launched.

5. Financial Plan

Start-Up Costs:

  • Store renovations: R50,000.
  • Initial inventory: R20,000.
  • Marketing: R10,000.

Monthly Costs:

  • Rent: R12,000.
  • Salaries: R18,000.
  • Utilities: R3,000.

Revenue Projections:

  • Initial target: 500 items sold per month at an average price of R80 = R40,000.

Break-Even Point: Expected within six months.