T-Shirt Business Plan Template
If you want to start a T-Shirt company or expand your current T-Shirt business, you need a business plan.
The following T-Shirt business plan template gives you the key elements to include in a winning T-Shirt company business plan.
T-Shirt Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a start-up T-shirt company that sells cool, trendy and artsy t-shirts for men and women, as well as children. [Company Name] provides a variety of shirts styles and designs, each made to order. They can also make any item with custom artwork provided by the client.
Products Served
Below is [Company Name]’s initial product list:
- Kids t-shirts
- Women’s t-shirts
- Men’s t-shirts
- Tank tops
Customer Focus
[Company Name] will primarily serve the residents who live within a 10 mile radius of our location and many others through our website and via other online retailers. The demographics of local customers are as follows:
- 65,800 residents
- 3,000 workers (who do not live the neighborhood)
- Average income of $56,500
- 33% married
- 31.5% in Mgt./Professional occupations
- Median age: 32 years
Management Team
[Company Name] is led by [Founder’s Name] who has been in the clothing business for 10 years. He was director of operations at a well-known clothing company in [location]. As such [Founder] has an in-depth knowledge of the business including:
- Management and operations
- Clothing design basics
- T-shirt marketing
- Hiring and training workers
[Founder] graduated with a degree in business management at [University Name] and also took courses in fashion design at [School Name].
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- There is currently no clothing brand devoted to local manufacturing in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched, both from customers and from suppliers.
- The T-shirt business is a proven business and has succeeded in communities throughout the United States.
- Market trends such as the growth of the graphic t-shirt market support our business opportunity.
Financial Highlights
[Company Name] is seeking a total funding of $120,000 to launch its store.
Specifically, these funds will be used as follows:
- Office/Workspace Design & Build-out: $55,000
- Equipment: $35,000
- Working capital: $30,000 to pay for supplies, marketing salaries and lease costs until [Company Name] reaches break-even.
Top line projections over the next three years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a start-up T-shirt company that sells cool, trendy and artsy t-shirts for men and women, as well as children. [Company Name] provides a variety of shirts styles and designs, each made to order. They can also make any item with custom artwork provided by the client.
The company takes pride in their unique designs and good quality materials that are all locally sourced, supporting other small businesses. In every collection, the company collaborates with local artists as well, to give them a medium to showcase their art.
The company’s tagline, “art through fashion” is the company’s mission.
[Company Name]’s History
[Founder’s Name] began planning and conceptualizing [Company Name] in [year] which then became a registered business on [Month, Year]. [Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the most desirable location for its physical store.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website located at www…
- Determined the list of suppliers for t-shirts, fabrics, etc
- Determined equipment and inventory requirements
- Identified local artists who are willing to collaborate with the designs
[Company Name]’s Products/Services
Below is [Company Name]’s initial product list:
- Kids t-shirts
- Women’s t-shirts
- Men’s t-shirts
- Tank tops
III. Industry Analysis
Over the past five years, the T-Shirt industry surged, bolstered by a greater number of broadband connections and rising per capita disposable income levels. Operators also benefited from the growing popularity of e-commerce, as more consumers turned to e-tailers due to their added convenience and relative accessibility compared with traditional brick-and-mortar retailers. Moreover, industry operators have benefited from a rise in the number of mobile internet connections, which increased consumers’ ability to find and purchase industry goods on-the-go from their smartphones. Due to these positive drivers, industry revenue will continue to grow.
As the retail space has become more saturated with entrants, the operating environment has become more competitive, and operators have attempted to undercut one another on price and product quality. Offering amenities such as free shipping and competent customer service associates has become more and more important for industry players to remain attractive in this competitive space.
Further, retail behemoths are able to exert strong negotiating and buying power over upstream wholesalers and manufacturers, enabling them to procure items at a lower price than smaller retailers. This buying power lets these retailers pass cost savings on to the consumer, and these competitive prices keep them attractive.
In recent years, there has also been a growing industry trend toward using a social-commerce business model, which encourages the integration of social media. This new type of open-sourced business model alleviates the risk associated with product development because each shirt produced already has inherent demand.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas.
The area residents we serve are affluent and are expected to spend more on clothing items than the national averages.
The precise demographics of the town in which our retail location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following three customer segments:
- Fashionistas: The store will attract people who appreciate fashion. The clothes it offers are incredibly unique, but also comfortable everyday wear
- Millennials: Our modern graphic art shirts are expected to be popular among the younger demographic. With its artistic designs, it will capture the interest of the younger generation.
- Tourists: Tourists visiting the area will be interested in locally made clothes. [Company Name] will become a tourist destination due to its unique t-shirt designs that no one can find anywhere else.
V. Competitive Analysis
Direct & Indirect Competitors
Press-on Tees
Press-on Tees operates an online service that connects millions of buyers and sellers of print-on-demand products. If you’ve dreamed up a catchy slogan or an arresting image, the company’s flagship website will print it for you on a T-shirt, hat, mug, poster, or other product; post it on cafepress.com for sale; and then ship it off and collect payments, keeping a nominal base fee for itself. The company boasts more than 19 million members across all of its properties. Founded in 1999, Press-on Tees went public in 2012.
Bubble Tees
Bubble Tees operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers in Australia, the United States, the United Kingdom, and internationally. It provides an Internet based marketplace platform and associated logistics services to facilitate the sale of goods from artists to those who want to purchase goods bearing the artists’ designs. The company enables 600,000 independent artists to sell their designs, such as apparel, stationery, housewares, bags, wall art, etc. It offers its services through its Website and three foreign language sites. The company was founded in 2006.
T-Shirt Republic
Founded in 2012, T-Shirt Republic is an ecommerce platform that connects independent artists with their fans and allows them to sell their art on t-shirts, apparel, and accessories. Artists simply upload their design to the site, and T-Shirt Republic fulfills all orders.
Artists may join, upload, and sell designs without a charge from the platform. T-Shirt Republic pays commission on each sale. In addition, the site encourages both artists and non-artists to create affiliate pages, where they maintain a storefront for their and/or others’ designs. This business model appears to take advantage of each storefront’s marketing capability to help spread awareness, in a social commerce way. Affiliates also earn a commission from each sale.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Locally-Made t-shirts: [Company Name] will work with the best local suppliers and artists for its items, ensuring that 90% of items will come from within a 100 mile radius of the store. Local residents appreciate support for local businesses and tourists appreciate that they will find items that they cannot find where they are from.
- Management: Our management team has years of business experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for [x] years, [Founder’s Name] knows all of the local leaders and newspapers, as well as furniture suppliers. As such, it will be relatively easy for us to build branding and awareness of our store and to establish a product line.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offering high-quality, locally-made clothing items
- Telling the “stories” of artists within the store
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals living within a 10-mile radius of its store. The Company’s promotions strategy to reach these individuals includes:
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will offer discounts and/or provide other inducements for people to visit the store.
Public Relations
We will contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].
Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for local merchants and press contacts to create buzz and awareness for [Company Name].
Online Marketing
[Company Name] will maintain a website and create an online shop with the list and pictures of products available for sale. It will be active in social media platforms and send out a weekly newsletter to provide its followers an update on on-going promotions and discounts.
VII. Operations Plan
Functional Roles
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Service Functions
- Sales and customer service
- Janitor/maintenance personnel to keep the store clean
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing suppliers and managing supplier relations
- Sourcing featured designers and providing collateral for their displays
- Hiring and training staff
Milestones
[Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the clothing business for 10 years. While [Founder] has never run a business himself, he was director of operations at a renowned clothing brand company in [location]. As such [Founder] has an in-depth knowledge of the business including:
- Management and operations
- Clothing design basics
- T-shirt marketing
- Hiring and training workers
[Founder] graduated with a degree in Business Management at [University Name] and took courses in fashion design at [School Name].
Hiring Plan
[Founder] will serve as the store manager. In order to launch the store, we need to hire the following personnel:
- Sales manager (requires retail experience in the clothing industry)
- Sales professionals (3 to start)
- Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of t-shirts and other clothing items.
The major costs for the company will be the cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $120,000 to launch its store. The capital will be used for funding capital expenditures, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Office/Workspace Design & Build-out: $55,000
- Equipment: $35,000
- Working capital: $30,000 to pay for supplies, marketing salaries and lease costs until [Company Name] reaches break-even.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease (per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
