Business Plan: The Shopify Essential Store

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Business Plan
Executive Summary
Company Profile Summary
The Shopify Essential Store is the customer’s one-stop e-commerce platform that seeks to enter the apparel and cosmetics business in Canada. There will also be a segment that will have sporting goods and equipment for selected sporting activities. Some of the cosmetics products the business will offer include makeup kits, face creams, moisturizers, and sunscreen for every skin type. The aim of any business is to ensure customers are satisfied with the goods and services offered. Having been a part of the group that complained of either late deliveries or the subpar quality of products delivered by online apparel and cosmetics stores, the founders of Shopify Essential Store saw it best to develop a business that caters to their needs. After grasping the real issues that customers grapple with, it becomes easier to develop measures that seek to solve the issues customers face.
Market Research Summary
The apparel and cosmetics markets are quite big. Looking at the apparel market, for example, statista.com (2020) reports that revenue should grow to reach the highs of US$4,566 million in 2020. Projections for 2024 indicate that the fashion market will continue to grow and reach US$9,485 million. This means that the apparel market will also be on an upward trend considering it makes up a bigger percentage of the fashion industry. When it comes to cosmetics, the market is surprisingly big. By 2021, Bedford (2019) reports that the “value of the cosmetics market in Canada was forecast to reach approximately 15.79 billion U.S. dollars.” This is quite a big number. In line with Shopify Essential Store are the face care products which Bedford continues to report are the “current highest-selling skincare and cosmetic product category in Canada.” Shopify Essential Store will seek to make a name for itself in both the apparel and cosmetics markets by mainly targeting young adults who mostly prefer the online shopping experience.
Marketing Summary
The marketing strategy of a company needs to coincide with its marketing objectives. For Shopify Essential Store, the objectives are to enhance sales by a factor of 20% every year as well as increase the customer base by a factor of 20%. To achieve these two, Shopify Essential Store will not rely on traditional marketing strategies. The company will greatly depend on social media marketing. Paid social media marketing will be the main strategy to help bring the company closer to its target market. Also, promotions will be used, but to a lesser extent. Promotions will only be used to try and motivate customers to buy slow-moving products. The focus will, therefore, be on social media marketing as the company seeks to be closer to its target market.
Finance Summary
With only one location, the startup cost is not expected to be a lot. Aside from the headquarters in Ontario, Shopify Essential Store will not have any other location. Everything will be done online. So, the startup cost is expected to be $80,000. Some of the specific expenditures that are expected include the cost of buying office furniture and other equipment. Lease for headquarters...