Reading Margin of Safety Document and Using Jean's Jeans instructions and documents, complete the analysis of whether to make or buy your jeans:

use your own words, i will upvote!!!!

EEEEEEEE ... *** ........ -------- *** . . RE . ... RETETTELEREPETIT RE "H HHHHHH FERRER BERE BERBELEEEEE REVENUE Jan Feb Mar Apr May Jun July Aug. Sept Oct Nov Dec 1st Year Units sold Direct Style #1 #units sold 20 30 60 80 100 130 150 175 200 220 225 230 1620 $32.95 $659.00 $988.50 $1,977.00 $2,636.00 $3,295.00 $4,283.50 $4,942.50 $5,766.25 $6,590.00 $7,249.00 $7,413.75 $7,578.50 $53,379.00 Style #2 #units sold 18 40 60 80 100 120 130 140 160 173 190 220 1431 $29.95 $539.10 $1.198.00 $1,797.00 $2,396.00 $2,995.00 $3,594.00 $3,893.50 $4,193.00 $4,792.00 $5,181.35 $5,690.50 $6,589.00 $42,858.45 Style #3 #units sold 15 30 45 65 85 99 123 1431 160 170 198 221 1354 $24.95 $374.25 $748.50 $1,122.75 $1,621.75 $2,120.75 $2,470.05 $3,068.85 $3,567.85 $3,992.00 $4,241.50 $4,940.10 $5,513.95 $33,782.30 Style #4 #units sold 25 35 45 55 65 90 100 124 144 163 181 2007 1227 $22.95 $573.75 $803.25 $1,032.75 $1,262.25 $1,491.75 $2,065.50 $2,295.00 $2,845.80 $3,304.80 $3,740.85 $4,153.95 $4,590.00 $28,159.65 SUBTOTAL-Units 78 135 210 280 350 439 503 582 6643 726 794 871 5632 SUBTOTAL-$$ $2.146.10 $3,738.25 $5,929.50 $7,916.00 $9,902.50 $12,413.05 $14,199.85: S16,372.90 S18,678.80 $20,412.70 $22,198.30 $24,271.45 S158,179.40 Units sold wholesale Style #1 #units sold 40: 50 60 70 80 90 100 110 120 130 140 150 1140 $12.42 $496.80 $621.00 $745.20 $869.40 $993.60 $1,117.80 $1,242.00 $1,366.20 $1,490.40 $1,614.60 $1,738.80 $1,863.00 $14,158.80 Style #2 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.95 $478.00 $597.50 $717.00 $836.50 $956.00 $1,075.50 $1,195.00 $1,314.50 $1,434.00 $1,553.50 $1,673.00 $1,792.50 $13,623.00 Style #3 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.05 $442.00 $552.50 $663.00 $773,50 $884.00 $994.50 $1,105.00 $1,215.50 $1,326.00 $1,436.50 $1,547.00 $1,657.50 $12,597.00 Style #4 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $9.75 $390.00 $487.50 $585.00 $682.50 $780.00 $877.50 $975.00 $1,072.50 $1,170.00 $1.267.50 $1,365.00 $1,462.50 $11,115.00 SUBTOTAL Units 160 200 240 280 320 360 400 440 480 520 560 600 4560 SUBTOTAL $$ $1,806.80 $2,258.50 $2,710.20 $3,161.90 $3,613.60 $4,065.30 $4,517.00 $4,968.70 $5,420.40 $5,872.10 $6,323.80 $6,775.50 $51,493.80 TOTAL Units Sold 238 335 450 560 670 799 903 1,022 1,144 1.246 1.354 1,4711 10,192 TOTAL REVENUE $3,952.90 $5,996.75 $8,639.70 $11,077.90 $13,516.10 $16,478.35 $18,716.85 $21,341.60 $24,099.20 $26,284.80 $28,522.10 $31,046.95 $209,673.20 COGS $5.25 per pair S1,249.50 $1,758.75 $2,362.50 $2,940.00 $3,517.50 $4,194.75 $4,740.75 $5,365.50 $6,006.00 $6,541.50 $7.108.50 $7,722.75 $53,508.00 GROSS PROFIT $2.703.40 $4.238.00 $6,277.20 $8,137.90 $9,998.60 $12,283.60 $13,976.10 $15,976.10S18,093.20 $19,743.30 $21,413.60 $23,324.20 $156,165.20 GROSS MARGIN 68.39% 70.67% 72.66% 73.46% 73.98% 74.54% 74.67% 74.86% 75.08% 75.11% 75.08% 75.13% 74.48% EXPENSES $13,160 $11,660 $13,960 $14,210 $11,460 $12,960 $13,210 $11,960 $12,960 $14,210 $11,460 $12,960 $154,170 EBITDA (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $766.10 $4,016.10 $5,133.20 $5,533.30 $9,953.60 $10,364.20 $1,995.20 Taxes - 28% S252.84 $286.16 $320.32 $348.88 $379.12 $411.88 $2,853.76 NET PROFIT (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $513.26 $3,729.94 $4,812.88 $5,184.42 $9,574.48 $9.952.32 (5858.56) Accum loss ($10,456.60 ($17,878.60 ($25,561.40 ($31,633.50 $33,094.90 $33,771.30) . EEEEE ------ ---- HELLES ESSERE 11 TEEEEE EEEEEEEEEEEEE January February March April May June July August September October November December Annual Expense $9,270 $111,440 $2,000 $2.000 $2,000 $24,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2.000 $2,000 $4,000 $4,000 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4.000 $1,000 . $200 .... $48,000 $12,000 $2,400 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600 $600 $600 $50 $780 $260 $880 $200 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 OTHER HER $9,360 $3,120 $10,560 $200 $42.730 $2,400 $1,440 $2,400 $600 $200 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $200 $120 $200 $50 $200 $120 $200 $50 $120 $200 BE $50 $50 EXPENSES Expense Catagory FIXED Rent Salaries Self Secretary Bookkeeper-Parttime Insurance Company Employee Liability Taxes Social security pmts @15% Medicare deduction @5% FICA for Self @ 22% Fees/Lic. VARIABLE Utilities Telephone-office Cellphone(s) Internet Office Supplies Computer expenses Printer cartridges Paper Goods Co Stationarylenvel Misc. Postage/Mailing. GMS Bus. Travel Hotel Meals Airline Car rental Marketing Expenses Printing Mkting Pieces Give A-ways" Trade Shows Booth Rental Registration Set-up Entertainment for Shows Meals Gifts Misc Demo & Inventory General Misc Expenses TOTAL EXPENSES $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240 $240 $240 $240 $240 $240 B. $20 $20 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $3,200 $1,600 $4,800 $2,400 $1,000 $500 $1,500 $450 $200 $250 BRE $500 $200 $100 $500 $200 $100 $1,000 $400 $200 ---- $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $11,660 $1,000 $500 $13,160 $1,000 $500 $13,960 $1,000 $500 $11,460 $1,000 $500 $12,960 $1,000 $500 $13,210 $1,000 $500 $11,960 $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $12,960 $500 $200 $200 $12,000 $6,000 $154,170 $1,000 $500 $11,460 $1,000 $500 $12,960 I'm going to startJean's Jeans. Hawaiian print denim jeans Identified (I created) 4 prints to start, plus an animated Pineapple appliqu on the back pocket. A. Jean's Concept 1. Need a plan to protect my intellectual property a. Do I trademark or copyright my patterns? i. How do I get it? ii. How long will it take? iii. Do I need legal representation? v. What w it cost? b. I discover I need a license from state of Hawa for two of the patterns. i. How do I get it? . How long will it take? iii. Do I need legal representation? iv. What will it cost? 2. How do I test my product concept? a. What market research do I need to do to demonstrate to others (financial, partners, workers) that I have a chance to succeed? i. Need to develop a plan ii. How long will it take? iii. What will it cost? 3. Establish company DNA re social responsibility and ethical philosophy. 4. Identify market focus a. What age group am I focusing? b. What is my pricing focus? c. Is this to be a luxury item or am I going to focus on the Target/Wal-mart market? 5. Initial distribution model? a. Boutique? b. Department stores? c. Online? Etc.? 6. Perform breakeven Analysis 7.Identify business model & analyze SWOT analysis of a. Competition b. of me. B. My Company 8.Form my business entity a. Who does it (me or lawyer)? c. What will it cost? d. Time to complete? e. Requirements? f. What structure is best for me? g. Lawyer cost too much; how do I find out what I need to know to do it myself? 1. Select geographic location 2. Determine physical needs. a. Proximity to business support needs. Airport etc.? b. Space requirements c. Investment in build-out needed d. Budget developed e. Work contracted f. Timing to complete? 11. Select specific location. 12. Identify local, state & federal laws, regulations and agencies established to protect employees, employers, customers & others with special needs. 13. Identify and comply with laws affecting the apparel design, manufacturing, distribution & retail industries. a. What licenses do I need? b. Cost c. Time to acquire 14. Identify any legal impact on selection of location? No manufacturing or toxic chemicals allowed. 15. Negotiate lease Is legal review needed? Cost? 16. Identify business equipment needs a. buy vs lease C. Let's Get Started 17. Create Gantt chart and milestone identification. 18. Create Start-up and first year budgets to achieve plan (review detail in depth!!!) 19. Create business plan review all the pieces!!! a. How am I going to make money? b. How am I going to make money for my financial partner? g. When will breakeven be achieved? h. Do I have enough money to reach breakeven? i. What is my plan to finance my startup expenses? 20. Identify funding targets 21. Seek professional review of plan & modify as necessary 22. What if" plan? Nobody bites? OR I have the money, now what do I do? 23. What does my financial partner expect regarding ROI and timing? D. My Product Development Plan 24. Identify raw material needs 25. What's my sourcing strategy? 26. What is my sourcing chain? a. Which country(s)? b. Which factory(s)? c. What are my selection criteria? d. How do I make my selection? 27. Identify any import/export &/or quota issues? 28. Identify resolution &/or alternative solution(s). 29. Identify raw material potential sources 30. Evaluate pros/cons relating to each 31. Select vendor(s) 32. Identify alternates 33. Develop and negotiate contracts to ensure Supply 34. Identify treatment requirements of denim 35. Create treatment specs and QC testing to Qualify vendor 36. Locate resource for treatment 37. Test selection specs & QC testing 38. Printing of fabric - research processes to insure quality specs met 39. Qualify potential vendors (printers) 40. Select printer 41. Negotiate costs 42. Identify processing resources for appliqu a. Source of design work? You? Someone else b. Source of patterns? 43. Develop specification and QC documents 44. Sample patterns approved 45. Strike-offs produced and approved 46. Strife-offs not approved 47. Patterns redone/ retested repeat until approved 48. Calculate cost per cycle to repeat 49. Identify trim requirements and sourcing (thread, zippers, etc.) 50. Identify label requirements 51. Source labels 52. Cutting & assembly resources identified 53. Specs and Quality control processes established and agreed upon 54. Resource capability tested 55. Resource fails to meet standards 56. Redo or go to alternate resource? a. Cost in dollars and time to redo? b. Cost to go to alternate? Milestone point will factory carry out some or all of these tasks and thus cost is included in the price of the product from the factory OR will you carry out (manage) these tasks and thus cost is included in your overhead determine best strategy for your business at this point in time. This is a make vs buy decision. How does each possible decision/approach affect you bottom line? E. Financial Analysis 57. Generate logistics map for manufacturing 58. Develop Full Value Cost Analysis. Analyze completely burdened cost to manufacture per unit delivered to retailer and test against breakeven analysis and business plan assumptions sold to financial partner. SHOW CASH TO CASH ANALYSIS 50. Establish FOB (Landed Duty Paid) costs 60. Establish CMT costs 61. Contingency plan what could go wrong, Try to identify ALL possibilities. What will I do if it does? F. Implementation & Planning 62. Create prototypes for sales demo. 63. Test original budget assumptions and original breakeven analysis 64. Implement marketing, advertising, sales and distribution plans laid out in Business Plan. a. timing b. costs c. resources required 65. Develop a human resource plan? a. Who do I need? b. When do I need them? c. How do I know if I can afford them? d. What do I need to have in place to be an employer? Legal responsibilities? Obligations? G. The Future??? Pineapple jeans catch on: Am I going to license to Licensing Agent, Licensing Manager, or work through a Distributor? What percentages will I give? I need more money to grow. Sources? Financial analysis? Financial documentation. Financial presentation to lender. Somebody copies my trademarked pattern concept. What is my plan of action to protect? Actions to be taken? Could happen in process of selling the company??? I meet or exceed my 3yr business plan. How do I protect my market share? How do I continue to grow it? At what sales volume will I need more space? More equipment? Somebody big wants to invest in me buy part of my company. What are my considerations? How do I value that part? Somebody wants to buy all of my company. Should I sell? How do I value my company? EEEEEEEE ... *** ........ -------- *** . . RE . ... RETETTELEREPETIT RE "H HHHHHH FERRER BERE BERBELEEEEE REVENUE Jan Feb Mar Apr May Jun July Aug. Sept Oct Nov Dec 1st Year Units sold Direct Style #1 #units sold 20 30 60 80 100 130 150 175 200 220 225 230 1620 $32.95 $659.00 $988.50 $1,977.00 $2,636.00 $3,295.00 $4,283.50 $4,942.50 $5,766.25 $6,590.00 $7,249.00 $7,413.75 $7,578.50 $53,379.00 Style #2 #units sold 18 40 60 80 100 120 130 140 160 173 190 220 1431 $29.95 $539.10 $1.198.00 $1,797.00 $2,396.00 $2,995.00 $3,594.00 $3,893.50 $4,193.00 $4,792.00 $5,181.35 $5,690.50 $6,589.00 $42,858.45 Style #3 #units sold 15 30 45 65 85 99 123 1431 160 170 198 221 1354 $24.95 $374.25 $748.50 $1,122.75 $1,621.75 $2,120.75 $2,470.05 $3,068.85 $3,567.85 $3,992.00 $4,241.50 $4,940.10 $5,513.95 $33,782.30 Style #4 #units sold 25 35 45 55 65 90 100 124 144 163 181 2007 1227 $22.95 $573.75 $803.25 $1,032.75 $1,262.25 $1,491.75 $2,065.50 $2,295.00 $2,845.80 $3,304.80 $3,740.85 $4,153.95 $4,590.00 $28,159.65 SUBTOTAL-Units 78 135 210 280 350 439 503 582 6643 726 794 871 5632 SUBTOTAL-$$ $2.146.10 $3,738.25 $5,929.50 $7,916.00 $9,902.50 $12,413.05 $14,199.85: S16,372.90 S18,678.80 $20,412.70 $22,198.30 $24,271.45 S158,179.40 Units sold wholesale Style #1 #units sold 40: 50 60 70 80 90 100 110 120 130 140 150 1140 $12.42 $496.80 $621.00 $745.20 $869.40 $993.60 $1,117.80 $1,242.00 $1,366.20 $1,490.40 $1,614.60 $1,738.80 $1,863.00 $14,158.80 Style #2 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.95 $478.00 $597.50 $717.00 $836.50 $956.00 $1,075.50 $1,195.00 $1,314.50 $1,434.00 $1,553.50 $1,673.00 $1,792.50 $13,623.00 Style #3 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.05 $442.00 $552.50 $663.00 $773,50 $884.00 $994.50 $1,105.00 $1,215.50 $1,326.00 $1,436.50 $1,547.00 $1,657.50 $12,597.00 Style #4 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $9.75 $390.00 $487.50 $585.00 $682.50 $780.00 $877.50 $975.00 $1,072.50 $1,170.00 $1.267.50 $1,365.00 $1,462.50 $11,115.00 SUBTOTAL Units 160 200 240 280 320 360 400 440 480 520 560 600 4560 SUBTOTAL $$ $1,806.80 $2,258.50 $2,710.20 $3,161.90 $3,613.60 $4,065.30 $4,517.00 $4,968.70 $5,420.40 $5,872.10 $6,323.80 $6,775.50 $51,493.80 TOTAL Units Sold 238 335 450 560 670 799 903 1,022 1,144 1.246 1.354 1,4711 10,192 TOTAL REVENUE $3,952.90 $5,996.75 $8,639.70 $11,077.90 $13,516.10 $16,478.35 $18,716.85 $21,341.60 $24,099.20 $26,284.80 $28,522.10 $31,046.95 $209,673.20 COGS $5.25 per pair S1,249.50 $1,758.75 $2,362.50 $2,940.00 $3,517.50 $4,194.75 $4,740.75 $5,365.50 $6,006.00 $6,541.50 $7.108.50 $7,722.75 $53,508.00 GROSS PROFIT $2.703.40 $4.238.00 $6,277.20 $8,137.90 $9,998.60 $12,283.60 $13,976.10 $15,976.10S18,093.20 $19,743.30 $21,413.60 $23,324.20 $156,165.20 GROSS MARGIN 68.39% 70.67% 72.66% 73.46% 73.98% 74.54% 74.67% 74.86% 75.08% 75.11% 75.08% 75.13% 74.48% EXPENSES $13,160 $11,660 $13,960 $14,210 $11,460 $12,960 $13,210 $11,960 $12,960 $14,210 $11,460 $12,960 $154,170 EBITDA (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $766.10 $4,016.10 $5,133.20 $5,533.30 $9,953.60 $10,364.20 $1,995.20 Taxes - 28% S252.84 $286.16 $320.32 $348.88 $379.12 $411.88 $2,853.76 NET PROFIT (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $513.26 $3,729.94 $4,812.88 $5,184.42 $9,574.48 $9.952.32 (5858.56) Accum loss ($10,456.60 ($17,878.60 ($25,561.40 ($31,633.50 $33,094.90 $33,771.30) . EEEEE ------ ---- HELLES ESSERE 11 TEEEEE EEEEEEEEEEEEE January February March April May June July August September October November December Annual Expense $9,270 $111,440 $2,000 $2.000 $2,000 $24,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2.000 $2,000 $4,000 $4,000 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4.000 $1,000 . $200 .... $48,000 $12,000 $2,400 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600 $600 $600 $50 $780 $260 $880 $200 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 OTHER HER $9,360 $3,120 $10,560 $200 $42.730 $2,400 $1,440 $2,400 $600 $200 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $200 $120 $200 $50 $200 $120 $200 $50 $120 $200 BE $50 $50 EXPENSES Expense Catagory FIXED Rent Salaries Self Secretary Bookkeeper-Parttime Insurance Company Employee Liability Taxes Social security pmts @15% Medicare deduction @5% FICA for Self @ 22% Fees/Lic. VARIABLE Utilities Telephone-office Cellphone(s) Internet Office Supplies Computer expenses Printer cartridges Paper Goods Co Stationarylenvel Misc. Postage/Mailing. GMS Bus. Travel Hotel Meals Airline Car rental Marketing Expenses Printing Mkting Pieces Give A-ways" Trade Shows Booth Rental Registration Set-up Entertainment for Shows Meals Gifts Misc Demo & Inventory General Misc Expenses TOTAL EXPENSES $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240 $240 $240 $240 $240 $240 B. $20 $20 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $3,200 $1,600 $4,800 $2,400 $1,000 $500 $1,500 $450 $200 $250 BRE $500 $200 $100 $500 $200 $100 $1,000 $400 $200 ---- $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $11,660 $1,000 $500 $13,160 $1,000 $500 $13,960 $1,000 $500 $11,460 $1,000 $500 $12,960 $1,000 $500 $13,210 $1,000 $500 $11,960 $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $12,960 $500 $200 $200 $12,000 $6,000 $154,170 $1,000 $500 $11,460 $1,000 $500 $12,960 I'm going to startJean's Jeans. Hawaiian print denim jeans Identified (I created) 4 prints to start, plus an animated Pineapple appliqu on the back pocket. A. Jean's Concept 1. Need a plan to protect my intellectual property a. Do I trademark or copyright my patterns? i. How do I get it? ii. How long will it take? iii. Do I need legal representation? v. What w it cost? b. I discover I need a license from state of Hawa for two of the patterns. i. How do I get it? . How long will it take? iii. Do I need legal representation? iv. What will it cost? 2. How do I test my product concept? a. What market research do I need to do to demonstrate to others (financial, partners, workers) that I have a chance to succeed? i. Need to develop a plan ii. How long will it take? iii. What will it cost? 3. Establish company DNA re social responsibility and ethical philosophy. 4. Identify market focus a. What age group am I focusing? b. What is my pricing focus? c. Is this to be a luxury item or am I going to focus on the Target/Wal-mart market? 5. Initial distribution model? a. Boutique? b. Department stores? c. Online? Etc.? 6. Perform breakeven Analysis 7.Identify business model & analyze SWOT analysis of a. Competition b. of me. B. My Company 8.Form my business entity a. Who does it (me or lawyer)? c. What will it cost? d. Time to complete? e. Requirements? f. What structure is best for me? g. Lawyer cost too much; how do I find out what I need to know to do it myself? 1. Select geographic location 2. Determine physical needs. a. Proximity to business support needs. Airport etc.? b. Space requirements c. Investment in build-out needed d. Budget developed e. Work contracted f. Timing to complete? 11. Select specific location. 12. Identify local, state & federal laws, regulations and agencies established to protect employees, employers, customers & others with special needs. 13. Identify and comply with laws affecting the apparel design, manufacturing, distribution & retail industries. a. What licenses do I need? b. Cost c. Time to acquire 14. Identify any legal impact on selection of location? No manufacturing or toxic chemicals allowed. 15. Negotiate lease Is legal review needed? Cost? 16. Identify business equipment needs a. buy vs lease C. Let's Get Started 17. Create Gantt chart and milestone identification. 18. Create Start-up and first year budgets to achieve plan (review detail in depth!!!) 19. Create business plan review all the pieces!!! a. How am I going to make money? b. How am I going to make money for my financial partner? g. When will breakeven be achieved? h. Do I have enough money to reach breakeven? i. What is my plan to finance my startup expenses? 20. Identify funding targets 21. Seek professional review of plan & modify as necessary 22. What if" plan? Nobody bites? OR I have the money, now what do I do? 23. What does my financial partner expect regarding ROI and timing? D. My Product Development Plan 24. Identify raw material needs 25. What's my sourcing strategy? 26. What is my sourcing chain? a. Which country(s)? b. Which factory(s)? c. What are my selection criteria? d. How do I make my selection? 27. Identify any import/export &/or quota issues? 28. Identify resolution &/or alternative solution(s). 29. Identify raw material potential sources 30. Evaluate pros/cons relating to each 31. Select vendor(s) 32. Identify alternates 33. Develop and negotiate contracts to ensure Supply 34. Identify treatment requirements of denim 35. Create treatment specs and QC testing to Qualify vendor 36. Locate resource for treatment 37. Test selection specs & QC testing 38. Printing of fabric - research processes to insure quality specs met 39. Qualify potential vendors (printers) 40. Select printer 41. Negotiate costs 42. Identify processing resources for appliqu a. Source of design work? You? Someone else b. Source of patterns? 43. Develop specification and QC documents 44. Sample patterns approved 45. Strike-offs produced and approved 46. Strife-offs not approved 47. Patterns redone/ retested repeat until approved 48. Calculate cost per cycle to repeat 49. Identify trim requirements and sourcing (thread, zippers, etc.) 50. Identify label requirements 51. Source labels 52. Cutting & assembly resources identified 53. Specs and Quality control processes established and agreed upon 54. Resource capability tested 55. Resource fails to meet standards 56. Redo or go to alternate resource? a. Cost in dollars and time to redo? b. Cost to go to alternate? Milestone point will factory carry out some or all of these tasks and thus cost is included in the price of the product from the factory OR will you carry out (manage) these tasks and thus cost is included in your overhead determine best strategy for your business at this point in time. This is a make vs buy decision. How does each possible decision/approach affect you bottom line? E. Financial Analysis 57. Generate logistics map for manufacturing 58. Develop Full Value Cost Analysis. Analyze completely burdened cost to manufacture per unit delivered to retailer and test against breakeven analysis and business plan assumptions sold to financial partner. SHOW CASH TO CASH ANALYSIS 50. Establish FOB (Landed Duty Paid) costs 60. Establish CMT costs 61. Contingency plan what could go wrong, Try to identify ALL possibilities. What will I do if it does? F. Implementation & Planning 62. Create prototypes for sales demo. 63. Test original budget assumptions and original breakeven analysis 64. Implement marketing, advertising, sales and distribution plans laid out in Business Plan. a. timing b. costs c. resources required 65. Develop a human resource plan? a. Who do I need? b. When do I need them? c. How do I know if I can afford them? d. What do I need to have in place to be an employer? Legal responsibilities? Obligations? G. The Future??? Pineapple jeans catch on: Am I going to license to Licensing Agent, Licensing Manager, or work through a Distributor? What percentages will I give? I need more money to grow. Sources? Financial analysis? Financial documentation. Financial presentation to lender. Somebody copies my trademarked pattern concept. What is my plan of action to protect? Actions to be taken? Could happen in process of selling the company??? I meet or exceed my 3yr business plan. How do I protect my market share? How do I continue to grow it? At what sales volume will I need more space? More equipment? Somebody big wants to invest in me buy part of my company. What are my considerations? How do I value that part? Somebody wants to buy all of my company. Should I sell? How do I value my company