Part 4 v.2 - Clasica Prints

Running head: CLASICA PRINTS BUSINESS PLAN 1

Clasica Prints

Sarah Brennan

MGT699 Capstone Project

Dr. Bob Goldwasser

Grantham University

12/5/2023

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1.0 Abstract

To be completed in week seven

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Table of Contents

1.0 Abstract 2

2.0 Company Description/History/Background 4

3.0 Mission Statement 6

4.0 Goals and Objectives 6

5.0 Stakeholder Analysis 10

6.0 Industry Analysis 11

7.0 Competitor Analysis 14

8.0 Marketing Strategy 19

9.0 Organizational Success Strategies 24

10.0 Financials Plan 25

11.0 Final Remarks

12.0 Appendix

13.0 References

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2.0 Company Description/History/Background

2.1 Company Description

The company name for the startup will be "Clasica Prints." It represents several aspects of

the business, including uniqueness, reflection of the brand, and simplicity. There is a uniqueness

to the name in that the first name refers to the Spanish word for classical. In contrast to focusing

on a generic term that would not stand out, the use of the Spanish translation makes the name

unique. Additionally, the use of the word "Prints" in the name reflects the business's focus on

creating custom-printed items. The use of the second name "Clasica" conveys a sense of

sophistication and class, which is in line with the company's mission to provide high-quality

products and services. Furthermore, the name will serve as a symbol of the brand, considering

that the services that will be offered will be unique. A name that is consistent with the values and

personality of the company is also appropriate. Search engine optimization (SEO) was also taken

into consideration when deciding on the name. By having a unique name, customers will be able

to locate the business and the website will be more visible to them.

2.2 Type of Business

Our company is in the retail sector, dealing with the printing of t-shirts and caps. The retail

industry is growing, which is one of the reasons for the selection of retail. According to Statista

research, retail sales have increased after the Covid-19 pandemic, accounting for $27 trillion in

sales in 2018, and are projected to reach over $30 trillion by 2024 (Sabanoglu, 2023). It is also

easier to implement solutions to customers' problems when they are dealt with in the retail

industry because it provides a better understanding of their needs. Additionally, the retail

industry is an excellent platform for testing innovative ideas and products. This is because the

customers can be directly consulted, and their opinions can be considered. Furthermore, the retail

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industry is highly diverse, with a wide range of products and services available. In most cases,

customers prefer to deal with retailers rather than wholesalers or manufacturers when it comes to

buying items.

2.3 Proposed Ownership / Legal Structure

The proposed legal structure for the business will be sole proprietorship. This is a type of

legal structure where the business is run by one person and there is no distinction between the

business and the (Bernoster, et al., 2019). The choice of a sole proprietorship is due to the

numerous advantages of such a legal structure. A sole proprietorship is easier to start and

considered cost-effective for startups. The owner of the business also has control over the

business, making it easier to make decisions that impact the business, decisions can be made

quickly as the business will be owned by one person. As a retail business, it will be both store-

based and non-store-based leveraging on the internet and social media.

2.4 Unique Product or Service

The business will offer unique products and services. It will deal with the printing of T-

shirts and caps. It will offer both goods and services where companies and individuals can use

their T-shirts and the company will only charge them for the printing services. The company will

also sell customized t-shirts to the customers. Other unique services would include the customers

using the business’ website to create unique messages they want to be printed on their T-shirts or

caps. The company will also help the customers in producing unique messages they want printed

on the T-shirts or caps. The business will offer companies branding services where they will

ensure they print brand messages according to the orders of the company. This will be a unique

way for companies to advertise and improve their brands.

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3.0 Mission Statement

The mission statement is “At Clasica Prints, our mission is to provide efficient and

unique fashion and printing solutions that increase brand loyalty and save time and money for

businesses and individuals alike."

4.0 Goals and Objectives

The strategic goals and objectives of the business are divided into three groups. The

groups are finance goals and objectives, customer-focused goals and objectives, and growth

goals and objectives. These goals are important in the strategic plan of the business. Strategic

goals are long-term goals that the business will set for itself to reach its intended future state.

These goals are to be achieved over a specified period, usually the next three to five years.

4.1 Finance Goals

These are the goals that will center around different financial metrics like financial sustainability

for the business, attaining and maintaining profitability for the new venture, and increasing

revenue for the business. They include.

1. The business should be able to increase its revenue by 20% annually after the third year

of business.

2. The business should make profits by ensuring a net profit margin of 30% for the next five

years.

3. The business should be able to reduce its costs by 20% to increase profitability by 2026

to enhance financial sustainability.

4.2 Customer-Focused Goals and Objectives

These are goals focusing on the customer. As a new business, these goals are supposed to

help the business in breaking into new markets and territories. They are also supposed to help the

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business in developing a trustworthy brand. They are based on metrics like increasing the

number of new customers, increasing customer retention, increasing the number of new markets,

and offering customer value. The goals include.

1. The business should be able to provide the best customer experience in the local market

by 2026 based on numerous factors like reaction time, customer feedback, and increased

orders.

2. The business should ensure a customer retention rate of 5% from 2025.

3. The number of orders from new customers should increase by 30% from 2025.

4.3 Growth

These are strategic goals that show how the business will grow and expand over the next

several years. They are based on metrics like increasing market share, entering new markets, and

brand-building on social media.

4.3.1 Goals Chart

1. The business should be able to increase its revenue by 20% annually after the third year of

business.

● Specific

o The goal ensures business sustainability with an increase in revenue.

● Measurable

o The increase in revenue should be by thirty percent.

● Achievable

o This is achievable as it starts after three years of operations.

● Relevant

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o It is important for the growth of the business.

● Time-Bound

o It is pegged from three years after the operation begins.

2. The business should make profits by ensuring a net profit margin of 30% for the next five

years.

● Specific

o It is specific on profit making for the business. It looks at the net profits of the business.

● Measurable

o Yes, at metrics of 30%.

● Achievable

o Yes, it is a financial measure of whether the business is doing well.

● Relevant

o Yes, important as it will show whether the business is sustainable with a return on

investment.

● Time-Bound

o Yes, for the next five years.

3. The business should be able to reduce its costs by 20% to increase profitability by 2026 to

enhance financial sustainability.

● Specific

o Yes, to the costs the business incurs.

● Measurable

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o Yes, measuring a reduction of costs by 20%.

● Achievable

o Yes, a reduction of 20% of costs can be achieved by budgeting and other strategies.

● Relevant

o Yes, to ensure an increase in profits for the business and ensure financial sustainability.

● Time-Bound

o Yes, to be measured starting in 2026

4. The business should be able to provide the best customer experience in the local market by

2026 based on a range of factors like reaction time, customer feedback, and increased orders.

● Specific

o Yes, pegged on improving customer experience for the business in the local market.

● Measurable

o Yes, measurable based on factors like reaction time, customer feedback, and increased

orders.

● Achievable

o Yes, this can be achieved by leveraging social media to communicate with customers and

capturing feedback in real-time.

● Relevant

o Relevant for increasing market share and number of customers.

● Time-Bound

o Yes, by the year 2026.

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5. The business should ensure a customer retention rate of 5% from 2025.

● Specific

o Yes, customer retention rate to ensure the business does not lose existing customers.

● Measurable

o Yes, based on the metric of 5%.

● Achievable

o Yes, the business can ensure the customer retention rate is low for the business by

implementing different strategies like excellent customer experience.

● Relevant

o Yes, ensures the business maintains its customers.

● Time-Bound

o Yes, by 2025.

6. The number of orders from new customers should increase by 30% from 2025.

● Specific

o Yes, on the number of orders from new customers.

● Measurable

o Yes, an increase of 30%

● Achievable

o Yes, excellent customer experience will ensure the business can get orders from new

customers.

● Relevant

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o Yes, relevant for the growth and expansion of the business.

● Time-Bound

o Yes, from the year 2025.

7. The business should be able to capture 30% of the local market by 2026.

● Specific

o Yes, capturing the local market.

● Measurable

o Yes, by 30%

● Achievable

o Yes, increasing market share can be done by increasing marketing activities.

● Relevant

o Yes, for the growth and expansion of the business.

● Time-Bound

o Yes, by 2026.

8. The business should increase its social media presence by 40% by 2025.

● Specific

o Yes, to the social media growth of the business.

● Measurable

o Yes, the metrics are at 40%

● Achievable

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o Yes, to ensure the business has a social media presence by increasing the number of

followers on social media.

● Relevant

o Yes, the goal is to increase the number of potential customers and new markets.

● Time-Bound

o Yes, by 2025.

5.0 Stakeholder Analysis

Every business has an individual or group with an interest in its operations. Stakeholders

are the individuals or groups that have an interest in the business because they are affected by the

activities of the business. Stakeholder analysis helps in producing strategies that will help in

managing the relations. There are several types of stakeholders divided into internal and external.

The internal stakeholders at Classica include the employees and departments within the

organization. The external stakeholders are customers, suppliers, regulating bodies like the

government, and others. The identification of the stakeholders in an organization is the first step

towards understanding their various needs. The identification of the stakeholders will mean

understanding their influence, interests, and expectations of the business. A knowledge of

stakeholder analysis is sufficient to ensure the business has the right tools for managing the

different stakeholders. There is a need for increased training in understanding the needs of the

various stakeholders to be able to manage them better. Constant knowledge is required in

managing external groups like the government or other regulatory bodies due to the changes in

legislation that affect the business.

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The employees belong to the biggest group of internal stakeholders. Their influence in

the organization is high, which makes understanding their needs critical. They have an interest in

the business as they would want the business to succeed for personal reasons. Due to the high

influence of employees, it is relevant for the organization to maintain good relations with the

employees. The customers fall into the group of external stakeholders and are also highly

influential to the business. Their interests are mostly satisfaction which will lead to an increase in

the number of customers. The business relies on the customers for growth; therefore, it is

important to ensure their needs are met. The suppliers are also external stakeholders and are

influential in the growth of the business. Their influence is also high as the business also relies

on their goods and services to grow. Understanding the key needs of the suppliers is key to

maintaining relations with these stakeholders.

6.0 Industry Analysis

6.1 A brief overview and long-term outlook for growth

The industry is divided into the t-shirt market and the custom t-shirt market. The T-shirt

market is the largest, accounting for over 80% of the global market. The custom t-shirt printing

industry is one of the fastest-growing markets in the world. This has been fueled by the need for

customized t-shirts by companies globally for advertising. Globalization has also led to the

growth of industry with the entire world becoming one marketplace. Technologies like the

Internet and e-commerce have made it simpler for businesses to be able to transact globally. The

revenue from the industry is likely to grow with increased growth annually. An estimated growth

of 11.1% is estimated from 2023 to 2030 (Grandview Research, 2023).

6.2 Review industry size, trends, and target market segment

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An overview of the industry shows that the revenue from the t-shirt market amounted to

$43.94 billion in 2023 (Statista Research, 2023). Its subsidiary the custom t-shirt market account

for $4,310 million in 2022. The average annual growth rate of the market is 11.1% from 2023 to

2030 (Grandview Research, 2023). This is due to the increasing demand for customized T-shirts,

not only from companies but also from individuals. The projected growth of the industry is

supposed to be experienced in markets like Asia where the industry is huge and the United States

which leads in the North American market. Other regions are also expected to show significant

growth with the growth of the Internet and e-commerce.

The current trend in the industry is an increase in the number of corporations using

custom t-shirts for advertising. Companies have over the last years increased demand for

customized T-shirts with their brand names and other aspects like their vision as a form of

advertising. The trend is good for the industry as it has over the years ensured growth in an

increase in revenue each year. There is also an increase in demand for custom T-shirts with

funny slogans, movie titles, TV series, and others.

The target market would be Generation Z. Some of the characteristics of Gen Z include

being more artistic than the other generations. Custom t-shirts are more likely to sell among the

people in this generation. This is because it would represent their style, personality, and

preference. The characteristics of the target market also include being tech savvy as they will be

able to log onto the organization's website and design the message they want on their t-shirt. The

target market has embraced technology globally and would be able to order the t-shirt from any

part of the world.

The secondary target market would be companies. The trend where companies have

increased their demand for custom-designed t-shirts as part of their branding strategy makes

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them an appropriate target market. This will require engaging companies through the available

channels like emails, social media, and direct marketing.

6.3 Identify who leads the industry in terms of:

6.3.1 Price

The average price of a t-shirt is $15 while that of a custom t-shirt would be

between $25 to $50 (Sellfy.com, 2023). The price of custom T-shirts depends on several factors

including the cost of production. The cost of production will entail the design costs. Some of the

websites allow the customer to design their t-shirt, reducing the cost of production. Industry

leaders like UberPrints, Inc. charge based on the content with their prices starting from $15.

6.3.2 Quality

The T-shirts must be of excellent quality to be able to compete with other

businesses in the industry. Inferior quality t-shirts are more likely to lead to loss of business.

Industry leaders like UberPrints, Inc., CafePress, Inc., Custom Ink, and Custom Thread are

known for the quality of the materials that are used.

6.3.3 Market Share

The industry leaders like UberPrints, Inc., CafePress, Inc., Custom Inc, and

Custom Thread dominate the market. These are established companies offering different

services including digital printing and screen printing. This has led to their dominance of

the custom t-shirt market.

7.0 Competitor Analysis

7.1 UberPrints, Inc.

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This is an American corporation with state-of-the-art machinery in design and printing.

This is one of its biggest strengths as the company has heavily invested in equipment. The huge

revenues generated from the business have enabled the company to invest more in its business.

The company is also able to deliver the items to the customers fast. However, one of the

weaknesses of the company is the quality of its hoodies. There have been complaints of mediocre

quality of hoodies which has adversely affected their business.

7.2 CafePress, Inc.

The company has also invested in equipment, making it one of its biggest strengths.

Printing equipment is a major priority in the business, and it is difficult for a company to be

successful without the right equipment. The company also delivers its products to the customers

and the customer is not required to visit the company. Its major weakness is the slow delivery of

finished goods.

7.3 Custom Ink

The company provides a variety of products that appeal to various markets including

sporting and business markets. The company is purely an online company leading to a wide

range of customers. However, this is also a weakness for the company as with no physical

location it is difficult to reach certain customers who do not rely on technology. This also means

there is rarely face-to-face communication with potential and existing customers.

7.3.1 Sales, quality, distribution, price, production capabilities, reputation, and

products/services.

The competition has experience in areas of sales, quality, production capabilities, and

reputation. This makes it difficult for new businesses in the industry to compete. However, a

review of the competition also shows various weaknesses in the areas of sales, quality,

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production capabilities, and reputation. Therefore, leveraging on the weaknesses will ensure the

business remains competitive.

7.3.2 How the product or service measures pricing and identify your

competitive advantage.

Quality products are more likely to sell better and attract more customers. The business

plans to use quality T-shirts and others to ensure quality is delivered to the customers. This will

lead to a competitive pricing strategy. So long as the product is of superior quality the business

will successfully apply a competitive pricing strategy. The required equipment for production

will also ensure quality products. Production equipment for screen printing and digital printing

will help the business become competitive. The competitive advantage will be quality. The

expertise available in design and printing will ensure that the business uses quality as a

competitive advantage.

3-year sales forecast in dollars and units.

Year 1 Year 2 Year 3

Unit Sales

Shortsleeve T-shirt 2000 2300 3000

Long-sleeved T-shirt 1500 1800 2200

Ladies Shortsleeve T-shit 3500 4500 5000

Ladies Long-sleeved T-shirt 2500 2800 3200

Youth T-shirts 3000 3300 3800

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Baby T-shirts 1000 1200 1500

Sweats and Hoodies 1800 2200 2500

Polos 3000 3500 4000

Hats 1000 1300 1600

Sales (USD)

Shortsleeve T-shirt 30000 34500 45000

Long-sleeved T-shirt 22500 27000 33000

Ladies Shortsleeve T-shit 52500 67500 75000

Ladies Long-sleeved T-shirt 37500 42000 48000

Youth T-shirts 30000 33000 38000

Baby T-shirts 10000 12000 15000

Sweats and Hoodies 36000 44000 50000

Polos 51000 59500 68000

Hats 7000 9100 11200

7.4 Sales and Advertising

Leveraging the power of the internet and social media will be an effective strategy to

advertise the business. Social media marketing will help in being able to interact with the target

market (Voorveld et al.,2018). It will be an effective strategy to increase sales as more markets

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are targeted. Social media allows for a wide range of potential customers. The business will be

advertised on all social media platforms including Instagram, Facebook, Twitter, Snapchat, Pin

interest, Tik Tok, and YouTube. Targeting the online market will allow the business to interact

with the members of the target market globally.

8.0 Marketing

8.1 Business Opportunities

The business venture has numerous business opportunities that will ensure profitability

for the business. The business will leverage on various ventures that will ensure the revenue

keeps on flowing. One of the biggest business opportunities for business will be to leverage

technology to ensure the business is stable. This will include selling custom t-shirts on social

media or through third-party companies like Amazon. Social media selling is a viable

ecommerce venture that will involve direct marketing and selling on social media. This will be

done to attract customers to the website and boost the traffic to eh website. The customers will

then design their own T-shirts with the business printing them and ensure they are delivered on

time. This will mean engaging the customers on the various social media platforms to increase

the market of the business.

There are business opportunities when selling t-shirts through third-party companies like

Amazon, Etsy, and Zazzle. These companies are known to sell lots of clothing and are likely to

help attract clients. One of the factors that must be considered is the pricing for these companies.

Amazon has various offers for its vendors, which can be effective for the startup to attract

business. As the biggest e-commerce company in the world, being a vendor on Amazon will help

improve the profile of the young enterprise.

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There are business opportunities in dealing with corporations. One of the current trends in

customized t-shirts is the increase in the number of corporations that are demanding customized

t-shirts for branding purposes. These corporations present business opportunities for the business

as the business will be able to brand the T-shirts for them, increasing the market size of the

business. This will be a good venture that will be able to increase the revenue for the business.

8.2 Target Market

The target market has been identified as individuals between the ages of 18 and 24. These

are the members of Generation Z whose characteristics make them suitable for the target market.

Some of the characteristics include being tech-savvy and artistic, making them suitable as

customers for the business. The target market can be found in various locations. As the business

will be leveraging technology, it will rely on the different social media platforms as a source for

customers. The target market is active users of social media, with an estimated fifty million on

different social media platforms in the United States (Dixon, 2023). The generation is active

users of Instagram, with an estimated 65%. Therefore, the concentration of the different social

media platforms, especially Instagram, YouTube, Snapchat, and Facebook, will ensure the

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business has a location for the customers.

Source Business Insider (2019)

The data on active social media platfors will help in social media marketing for the target

customer. It will help in developing active startegies that will ensure the business is able to

constantly interact with the customers to ensure sales. The secndary target customers will be

engaged through emails. Engaging corporates will be done through emails to the relevant people

in the company. This will be an effective strategy of looking for business in different companies.

8.3 Location

The business will be in New York. The equipment for printing will be based in New

York, as will the offices. The choice of New York is because the city is a business hub and

boasts more than twenty-five million people in the Metro area. There are different companies

that will be considered the secondary target market. The location of a business is an important

aspect, as lots of things must be considered that will determine its success. Targeting

0%

10%

20%

30%

40%

50%

60%

70%

Instagram You Tube Snapchat Facebook Twitter Tik Tok

Active Social Media Platform for Gen Z

Instagram You Tube Snapchat Facebook Twitter Tik Tok

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corporations in the Metro area will help the growth of the business. However, the business will

mostly rely on its online concept to attract customers. This will mean that the business will

leverage social media and its website to attract customers.

8.4 Factors that May Influence Success of the Business

8.4.1 Economic Factors

There are different economic factors that may adversely affect the success of the

business. Recession is a complex factor, as the timing is never known. A recession is a decline in

economic activity that lasts more than several months. The recession will adversely affect the

purchasing power of customers. The competition in this case may be forced to charge lower

prices for their products, which will affect the business, which is still young. If the business is

forced to charge lower prices than the cost, it will end up failing as it will incur losses.

Exchange rates are also a complex factor, as most people look at exchange rates

as affecting only imports and exports. However, in the e-commerce industry, exchange rates are

likely to have an impact when dealing with customers from all over the world. The exchange

rates will affect how much is to be given to international suppliers for them to supply T-shirts

and other clothes that will be used in the business. An example is that if the t-shirts are being

sourced from China, a higher exchange rate will adversely affect the profits. This will be bad for

the business and will lead to failure. However, lower exchange rates will lead to success, and

profits will be high. International customers will also pay in US dollars, and some may decide

not to collaborate with the company as the exchange rates are too high for them. This will lead to

a loss of business for the venture.

Supply and demand will affect the success of the venture (Zvarikova &

Kacerauskas, 2017). When demand for the products is high and supply is low, the business will

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make profits, leading to success. However, when the supply is high and demand is low, the profit

will be limited, or the business will suffer losses.

8.4.2 Demographic Factors

These are the socioeconomic characteristics of a population that a business will

normally use to determine purchasing characteristics. Demographic factors include income, age,

and education level. The income of the customer will have a major impact on the business. This

is because people with high incomes usually have a high disposable income. They can spend

more in comparison to those with limited income. Therefore, if the target market has individuals

with a higher disposable income, then the business will thrive as they are more likely to spend

more on customized t-shirts. However, if the individuals being targeted have lower income

levels, then the business will not thrive as sales will be limited.

The age of the customer is a major demographic factor that will have an impact

on the business. As a variable, the products of the business are supposed to appeal to a certain

age group. If they do not appeal to this age group, the sales will be low. The target customers

have been chosen based on their ages. This is good for business, as the products are likely to

appeal to this age group. This will lead to more sales for the business. The education level of the

customers will also determine whether they will purchase the product or not. The education level

of the customers is usually related to their income. Those with higher education will normally

have a higher income and are likely to purchase more.

8.4.3 Geographic Factors

The geographical factor that may have an impact on the business is

location. This is a customized t-shirt business. The location is good, as the business is not located

in a region where t-shirts are not a common aspect. The convenience of online business also

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helps, as it opens the business to the entire world. People’s buying preference is also affected by

the location of the business. Businesses that are in certain areas may be successful in making

profits, while others may end up making losses. Therefore, the location of the current business

favors the business and makes it more likely to lead to success for the business.

9.0 Organizational Success Strategies

9.1 Summary of the vision of the company’s success.

The vision of the company is “to create quality fashion prints that make people happy.”

The vision statement is based on a common goal which the business will be working towards. It

will function as a guide to the employees which they will be referencing when making decisions.

This is because the goal is ensuring the business creates quality products which will make it

competitive. As a new business the only way it will be able to become competitive is by

producing quality and ensuring that quality is its competitive advantage. One of the main

advantages of ensuring quality products and services is that it will ensure the business to achieve

greater customer satisfaction. This is key towards the success of the company and the long-term

goals of the business.

The emphasis on quality for the business will help in building the brand. It will allow the

stakeholders realize what the business stands for and how they can connect with the brand. This

is great for the long-term success of the company as more people will be able to connect with the

brand. Therefore, the business will ensure they produce products that will not only be able to

match the competition but are better. This is an achievable goal as the focus will be on creating a

competitive brand.

9.2 Show what strategies will be adopted to ensure the overall success.

One of the effective strategies that the business will adopt to ensure overall success will

be on creating short-term and long-term goals. The aim of any business is achieving success in

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the long-term (Turner & Endres, 2017). This can be achieved by creating short-term goals that

will be used in overcoming initial business challenges that mostly impact on the business. These

include short-term finance and marketing goals. The business should also create long-term goals

which will allow the business to achieve market differentiation and improving customer

satisfaction. The business will also employ a strategy of ensuring greater customer satisfaction to

increase on referrals. This will be done on improving on feedback and creating quality products.

10.0 Financial Plans

10.1 Reasons why the Business is Viable

10.1.1 Low Cost and Low Risk Business

Selling personalized t-shirts is a fantastic way to start or grow any business. This

business is especially beneficial for people who are unable to make big first investment

payments. The product has no up-front costs, printer purchases are not necessary, and

supply chain concerns are eliminated. You can use other contractors in your area or a

dependable supplier to manage the printing needs of the business. All technical aspects of

print-on-demand printing, fulfilment, and delivery are taken care of by the business print-

on-demand provider if the business will not have invested in print equipment. The

business will only require selecting a t-shirt, personalizing it with artwork, posting it to

your web store, and advertising it.

The printing company can begin processing and printing each order as soon as the

clients begin placing them. They can then package and mail it after that. This indicates

that neither inventory nor supplies are expensive. Furthermore, there is not much of a

chance of not selling out.

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Every order that is forwarded to the printing company immediately gets processed

as soon as your customer make demands. Printing, packaging, and delivery of the goods

can now begin. Since this is the simplest method available, there are no large inventory or

supply costs, nor are there any greater dangers associated with stock outs. The business

will assign all of the work to your provider so that it can concentrate more on sales and

marketing.

10.1.2 Popular Among the Target Market

T-shirts are a staple item of clothing that are in style year-round. No matter what

the trends are, t-shirts will always be in style. This aspect has been demonstrated over

time (Jayasinghe, 2021). And given how many clothes people wear over the years and

never thrown away; it can be attested that t-shirts remain the staple item for clothing.

Unquestionably, t-shirts whether they are basic or custom-designed remain the most worn

item of apparel for people of all ages. Finding the ideal target market is one of the

complex aspects of the business. The current target market is Gen Z. Custom t-shirts have

become a current fashion item and a means of self-expression for Gen Z. With their

graphic and logo tees, this generation conveys their ideas and thoughts.

The target market utilizes t-shirts in diverse ways other than sharing their ideas

and thoughts. They also use t-shirts to influence others by sharing quotes from their

favorite films or by showing support for a particular band. Thus, in light of this notion, t-

shirts continue to be useful for raising awareness and visibility. Considering these trends

when creating t-shirts, the business stands a better chance of winning over this generation

of consumers. This is why the business decided with Gen Z as the primary target market.

CLASICA PRINTS 27

The current trend also shows popularity of customized t-shirts among the

secondary target market. The current trend shows that companies are using customized t-

shirts to promote their brand. The customized t-shirts are being used in team building

activities, promotions, fundraising events, and inspiration. All these events are being used

by companies to promote their brand. This creates a bigger market for the business in the

corporate world.

10.1.3 Printing Methods are Sustainable

All businesses are aware that when it comes to making purchases, the two most

important considerations are quality and pricing. However, over the last several years,

this trend is history. Customers are becoming more aware of the environmental impact of

their purchases as global warming becomes a major worry. Currently, consumers are

curious in the materials used by brands to produce their goods. In addition, they are

interested in learning how they make it and how they might help the environment. This

means that consumers are putting sustainability more than anything else. Therefore,

business have to consider sustainability in all their decisions for them to become

successful.

Printing on t-shirts also checks this box of sustainability. The business will be

selecting eco-friendly inks and sustainable fabric materials, among other things, in order

to make t-shirt printing sustainable. Additionally, the business will over time procure

from garment producers whose practices are considered ethical and have better

environmental practices.

10.1.4 Increased Customer Loyalty

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Customers typically pick from a wide selection of possibilities for excellent

products and experiences. It is possible for the business to get a fair number of devoted

clients, even though the custom t-shirt printing market has become more competitive in

recent years. Customers will continue to choose a brand of custom t-shirt brand over

rivals if they offer the finest customer service, supply, and quality. The business will

leverage on customer service, supply, and quality to create a competitive advantage in the

market. This will ensure the business will create a name in the market based on these

three aspects. This is likely to increase the number of customers for the business over

time. The greatest product is more likely to win over the customers. Therefore, the

business will always make sure it can give the customers the greatest experience and

product possible.

10.2 Financial Statements

Income Statement Assumptions Year 1 Year 2 Year 3

Revenue 276,500 320,000 400,000

Gross margin % 55.0% 55.0% 55.0%

Cost of sales 146,000 174,000 205,000

Gross margin 130,500 146,000 195,000

Research and development 3,000 2,000 4,000

Sales and marketing 16,000 15,000 18,000

General and administrative 15,000 15,000 19,000

Operating expenses 34,000 32,000 41,000

Depreciation 20.0% 5,000 12,000 9,600

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Operating income 91,500 102,000 144,400

Finance costs 4.0% 800 2,056 3,615

Income before tax 90,700 99,944 140,785

Net income 90,700 99,944 140,785

The revenue are estimates from the various products of the business which include the below

sales estimates;

Year 1 Year 2 Year 3

Unit Sales

Shortsleeve T-shirt 2000 2300 3000

Long-sleeved T-shirt 1500 1800 2200

Ladies Shortsleeve T-shit 3500 4500 5000

Ladies Long-sleeved T-shirt 2500 2800 3200

Youth T-shirts 3000 3300 3800

Baby T-shirts 1000 1200 1500

Sweats and Hoodies 1800 2200 2500

Polos 3000 3500 4000

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Hats 1000 1300 1600

Sales (USD)

Shortsleeve T-shirt 30000 34500 45000

Long-sleeved T-shirt 22500 27000 33000

Ladies Shortsleeve T-shit 52500 67500 75000

Ladies Long-sleeved T-shirt 37500 42000 48000

Youth T-shirts 30000 33000 38000

Baby T-shirts 10000 12000 15000

Sweats and Hoodies 36000 44000 50000

Polos 51000 59500 68000

Hats 7000 9100 11200

The assorted products and services are supposed to increase the revenue being generated.

The cost of sales is from the purchase of t-shirts from vendors. It is assumed the business will

purchase its own printing equipment and will incur costs to run the equipment. These costs are

the general administrative costs. Depreciation is based on reducing balance method. The business

is a sole proprietorship and does not pay corporate tax.

Balance sheet Year 1 Year 2 Year 3

Assets

CLASICA PRINTS 31

Cash 160,744 263,779 291,754

Accounts receivable 44,086 49,452 59,678

Inventory 60,680 65,507 54,764

Current assets 265,510 378,738 406,196

Long-term assets 50,000 60,000 46,700

Total assets 315,510 438,738 359,496

Liabilities

Accounts payable 31,453 28,890 31,342

Other liabilities 7,985 6,896 9,786

Current liabilities 39,438 35,786 41,128

Total liabilities 40,034 72,156 63,842

Equity

Capital 275,476 366,582 295,654

Total liabilities and equity 315,510 438,738 359,496

The long-term assets of the business are the printing equipment that will be purchased.

There are several types of printing equipment, and the business will have to go with quality to

ensure the final work is the best. This is per the strategy of using quality as a competitive

advantage. The cash and accounts receivable are based on the assumptions of the sales estimates.

CLASICA PRINTS 32

11.0 Final Remarks

12.0 Appendix

13.0 References

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and the entrepreneurial success of sole proprietors. Management, 22(2), 273-296.

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platforms from 2020 to 2025(in millions). Statista Research. Retrieved from

https://www.statista.com/statistics/1276021/instagram-snapchat-tiktok-gen-z-users/.

Dennis, G. (2019). The most popular social media platforms with Gen Z. Business Insider

Africa. Retrieved from https://africa.businessinsider.com/strategy/the-most-popular-

social-media-platforms-with-gen-z/3yk67hs.

Grandview Research. (2023). Custom T-shirt Printing Market Size, Share & Trends Analysis

Report by Printing Technique (Screen Printing, Digital Printing, Plot Printing), By

Design, By Sales Channel, By End-use, By Region, And Segment Forecasts, 2023 – 2030.

Retrieved from https://www.grandviewresearch.com/industry-analysis/custom-t-shirt-

printing-market

Jayasinghe, M. R. (2021). Designing an Online Bidding System for Custom Made T-shirts in Sri

Lanka (Doctoral dissertation).

Sabanoglu, T. (2023). Retail Market Worldwide; Statistics and Facts. Statista. Retrieved from

https://www.statista.com/topics/5922/retail-market-worldwide/#topicOverview.

Selllfy.com. (2023). How to price t-shirts (get more sales & profit). Retrieved from

https://blog.sellfy.com/how-to-price-t-shirts/

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Statista Research. (2023). T-shirts Worldwide. Retrieved from

https://www.statista.com/outlook/cmo/apparel/men-s-apparel/t-shirts/worldwide

Turner, S., & Endres, A. (2017). Strategies for enhancing small business owners' success

rates. International Journal of Applied Management and Technology, 16(1), 3.

Voorveld, H. A., Van Noort, G., Muntinga, D. G., & Bronner, F. (2018). Engagement with social

media and social media advertising: The differentiating role of platform type. Journal of

advertising, 47(1), 38-54.

Zvarikova, K., & Kacerauskas, T. (2017). Social and economic factors affecting the

entrepreneurial intention of university students. Transformations in Business &

Economics, 16(3), 220-239.