Part 5 - Clasica Prints

Running head: CLASICA PRINTS BUSINESS PLAN 1

CLASICA PRINTS 2

Clasica Prints

Sarah Brennan

MGT699 Capstone Project

Dr. Bob Goldwasser

Grantham University

12/5/2023

1.0 Abstract

To be completed in week seven

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 12

6.0 Industry Analysis 13

7.0 Competitor Analysis 15

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

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 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. 

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

· Measurable · The increase in revenue should be by thirty percent.

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

· Relevant · It is important for the growth of the business.

· Time-Bound · 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 · It is specific on profit making for the business. It looks at the net profits of the business.

· Measurable · Yes, at metrics of 30%.

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

· Relevant · Yes, important as it will show whether the business is sustainable with a return on investment.

· Time-Bound · 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 · Yes, to the costs the business incurs.

· Measurable · Yes, measuring a reduction of costs by 20%.

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

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

· Time-Bound · 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 · Yes, pegged on improving customer experience for the business in the local market.

· Measurable · Yes, measurable based on factors like reaction time, customer feedback, and increased orders.

· Achievable · Yes, this can be achieved by leveraging social media to communicate with customers and capturing feedback in real-time.

· Relevant · Relevant for increasing market share and number of customers.

· Time-Bound · Yes, by the year 2026.

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

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

· Measurable · Yes, based on the metric of 5%.

· Achievable · Yes, the business can ensure the customer retention rate is low for the business by implementing different strategies like excellent customer experience.

· Relevant · Yes, ensures the business maintains its customers.

· Time-Bound · Yes, by 2025.

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

· Specific · Yes, on the number of orders from new customers.

· Measurable · Yes, an increase of 30%

· Achievable · Yes, excellent customer experience will ensure the business can get orders from new customers.

· Relevant · Yes, relevant for the growth and expansion of the business.

· Time-Bound · Yes, from the year 2025.

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

· Specific · Yes, capturing the local market.

· Measurable · Yes, by 30%

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

· Relevant · Yes, for the growth and expansion of the business.

· Time-Bound · Yes, by 2026.

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

· Specific · Yes, to the social media growth of the business.

· Measurable · Yes, the metrics are at 40%

· Achievable · Yes, to ensure the business has a social media presence by increasing the number of followers on social media.

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

· Time-Bound · 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.

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

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 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.

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, 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
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 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.

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 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 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 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 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 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.

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.

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

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
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
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
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.

10.2 Forms of Business

A sole proprietorship will be the suggested legal form for the business. Under this kind of legal arrangement, the business is managed by a single individual which means the business and the owner are the same. The numerous benefits of having a sole proprietorship as a form of business. A sole proprietorship is thought to be more cost-effective and simpler to establish. It will be easier to set up the business as there are fewer legal hurdles required. The only registration required will be the registration of the Doing Business AS (DBA). As the name has already been established it will be easier to begin trading using the name “Clasica Prints.” Because there will only be one owner, decisions affecting the business may be made more swiftly and with more ease. The owner also retains control over the business. As a retail company, it will use social media and the internet for both in-store and out-of-store operations.

10.2.1 Projections

Income, Expenses, and Source of Funds

	Year 1	Year 2	Year 3
Income
Revenue	276,500.00	310,000.00	360,000.00
Operating Expenses
Accounting and Legal	5,000.00	5,000.00	5,000.00
Sales & Marketing	16,000.00	15,000.00	18,000.00
Depreciation	6,250.00	7,500.00	5,837.00
Insurance	100.00	100.00	100.00
Interest Expense	80.00	90.00	120.00
Maintenance and Repairs	120.00	150.00	170.00
Office Supplies	240.00	270.00	300.00
Postage	250.00	250.00	300.00
Rent	8,000.00	8,000.00	8,000.00
Salaries and Wages	12,000.00	15,000.00	17,000.00
Taxes and Licenses	800.00	800.00	800.00
Telephone	500.00	500.00	600.00
Utilities	90.00	100.00	100.00
Web Hosting and Domains	200.00	100.00	100.00

The revenue is based on the current trends and competition analysis. Based on the competition analysis, the average price of a shirt is between $20-$50. The same has been used in coming up with the sales figures. The current trend shows that the average growth rate of the custom t-shirt market is 11.1% (Statista Research, 2023). The average growth rate has been used in estimating the sales figures for the next three years. The same has been used in estimating the expenses for the next three years. Another aspect of the market that shows that there will be growth is the demand for customized t-shirts. The rising demand for personalized T-shirts among both consumers and businesses. The United States, which dominates the North American market, and markets like Asia, where the sector is enormous, are expected to witness the industry's predicted rise. As the Internet and e-commerce expand, it is anticipated that other regions will also experience notable growth.

The expenses have been used based on historical and current trends. They are based on the current costs for the various expense items for the king of business. An example would be web hosting and domains where the first-year cost would be high as it would involve the cost of web design. The other two years would only involve web hosting costs. The same applies to the other costs like telephone, office supplies, and others.

The depreciation charges are based on a straight-line method of calculating the cost of the asset. The assets are based on the current market process of printing equipment that will be used in the business. In the first year, printing equipment worth $50,000 will be purchased and the depreciation charge will be 12.5% of the same cost. The price of printing equipment depends on which equipment is being purchased. In the first year, the business will have to purchase a heat press, vinyl pressing machine, screen printers, sublimation printers, and textile printing machinery. The business will purchase more equipment as the business picks up.

10.2.2 Startup Costs

Fixed Assets
Equipment
Heat press	300.00
Vinyl pressing machine	2,000.00
Screen printers	1,500.00
Sublimation printer	2,000.00
Textile printing machinery	44,200.00
Total	50,000.00
Expenses
Business Registration	100.00
Inventory	10,000.00
Office Space	8,000.00
Marketing	1,600.00
Website and Hosting	300.00
Utilities	100.00
Shipping	300.00
Salaries and wages	12,000.00
	32,400.00
Total	82,400.00

The startup funds will be used to purchase the equipment that is part of the startup costs. They will be used to ensure all the equipment is purchased as the business will not be functional without the equipment. Therefore, the first step will be ensuring all the fixed assets or equipment are purchased. The startup funds will also be used to offset the startup costs. The budget estimates in the startup budget will be used as a guide.

10.2.3 Sources of Capital

The sources of capital include personal investment, loans, and family and friends.

Personal Investment	50,000
Family And Friends	20,000
Business Loan	40,000

Currently, I have $50,000 which can be considered a personal investment in the business. The amount is the capital required for the business to start. This amount is part of my savings and can be used as part of the funding for the business. However, since the amount is not enough, I would require additional funding from other sources. Family and friends have agreed to help in the venture and will be able to contribute $20,000. I have a strong credit score which will be used in obtaining a business loan that will be part of capital. The credit score can allow me to get up to $40,000 which can be used in the business. The interest rates for personal business loans are lower in comparison to other loans. Banks like Peoples Bank are known to offer up to $100,000 to small businesses (Peoples Bank, 2023). Therefore, I would be a beneficiary of a small business loan since the loan is less than $100,000.

10.3.3 Cash Flow Statement

Cash Flow Statement	Year 1	Year 2	Year 3
Net income	90,700	99,944	140,785
Add back depreciation	5,000	12,000	9,600
Changes in working capital
Accounts receivable	44,086	-49,452	-59,678
Inventory	60,680	-65,507	-54,764
Accounts payable	-31,453	28,890	31,342
Other liabilities	7,985	6,896	9,786
Cash flows from operating activities	176,998	32,771	77,071
Cash flows from investing activities	0	0	0
Repayment of long-term debt	0	-17,530	-19,463
Cash flow from financing activities	0	-17,530	-19,463
Cash flow	176,998	15,241	57,608
Beginning cash balance	10,000	186,998	202,239
Ending cash balance	186,998	202,239	259,847

11.0 Final Remarks

12.0 Appendix

13.0 References

Bernoster, I., Khedhaouria, A., & Thurik, R. (2019). Positive affect, the entrepreneurial process, and the entrepreneurial success of sole proprietors. Management, 22(2), 273-296.

Dixon, S. (2023). Number of Generation Z users in the United States on selected social media 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).

Peoples Bank. (2023). Commercial Loans. Retrieved From https://www.peoplesbank-wa.com/business-banking/commercial-loans/?gad_source=1&gclid=Cj0KCQiAm4WsBhCiARIsAEJIEzVgtJpcJaVJacEDIkL1cTUHlKStDQTWto8Iun9cl0pBWCSGp-oj4bsaAl23EALw_wcB

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/

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.

Active Social Media Platform for Gen Z

Series 1 Instagram You Tube Snapchat Facebook Twitter Tik Tok 0.65 0.62 0.51 0.34 0.23 0.11