CHAPTER ONE 1.

0 BACKGROUND INFORMATION With todays modern world dressing has become the most attractive and largest area of spending. Many people spend a large percentage of their salaries on dressing because its a necessity and above all people invest more money on this, in order to show their financial status. The desire for most people to be extraordinarily smart when they are having ceremonial parties ,visitations ,meetings and celebrations has made them to demand for distinguished things, .the desire for western kind of dressing makes boutiques the most desired places for shopping for clothes shoes and expensive jewelry. From this observation we have decided to borrow that knowledge and some huge amount of money to top up the little that we gathered to start a boutique so as to satisfy the increasing demand for the items mentioned above. We have realized that desire for such activities parties, celebrations are most common in the urban centre that is why the location of the business is in the urban centre of fort-portal. 1.1 Name and Address of the Business The name of the enterprise is MIGUELS BOUTIQUE The Address of the boutique is; Alexs boutique P.o Box 2323 Fort-portal kabarole (Uganda)

1.2 Name and Address of the manager 1

NIWAGABA EMMANUEL P.o Box 2323 Fort-portal Uganda 1.3 Nature of the Business Miguel enterprise will deal in a number of goods and services and these include the following: Selling of gents suites, ladies clothes, shoes, childrens wear, jewelries such as earrings, watches, hand rings. 1.4 The statement of financing Financing of the business will be through borrowing from friends, financial institutions like banks, donations. 1.5 Statement of confidentiality I declare that the information given in this plan is to the best of my knowledge and ability valid and directly relates to the business and its proprietors. 1.6 Mission To provide products to customers, promote high quality products and advance a good will and reputation of the business. 1.7 Vision To be nationally recognized for the provision of good quality products and great commitment to our business.

CHAPTER TWO 2

2.0 EXECUTIVE SUMMARY 2.1 Introduction This business plan is designed to assist and guide the management of the business. To equip the management team with the skills and knowledge about the running of the business. This will help them to formulate a high quality business and activities that will effectively promote the mandate and mission of the business management. The business plan will aim to assist the business management by setting out procedures and requirements for business planning, reporting, monitoring and evaluation so that it can carry out the business operations successfully in line with its mandate, functions, defined mission and vision. The business will be established in the western part of Uganda in kabarole district, fort portal town on Rukidi 3 Street. The firm will rent a commercial building on plot 106 which will be renovated to suit the business arrangement. The capacity of the premises will be around 50square meters. A range of products will be dealt in while considering all age brackets, lifestyle, career, occasions, parties, ceremonies. 2.2 Product description The range of products that the business will deal in includes ; gents, shirts, jean, trousers, suits Jackets, t-shirts ,trousers ,pants ,stockings Skirts, Blouses, Night dresses, wedding gowns, bras, Play clothes, for children, hand bags, safari bags, designer bags, shades, sun glasses watches ,rings, bungles boots, snickers leather shoes ( open and closed), 2.3 Customer description The business will focus on people from western, central, and eastern parts of the country and different categories of people will be focused on ranging from Children with the age bracket of 5-12 years, teenagers who are of school going age Ladies and Gentlemen most will be the working class whos expenditure is high and They normally engage in several occasions like parties, ceremonies which require them to be smart. 3

The old persons are also to be considered .this will focus on oldies attire i.e. late 90s, Celebrities focus will be put on the musicians, actors, comedians, sports men and women, the middle class like teachers, lecturer and the poor farmers 2.4 Ownership of the business The owners of the business will include the following Kada Djongo Miguel, Niwagaba Emmanuel, Gatta Marius who are entitled to contribute an amount of money that will determine the ratio of profit one will be given. 2.5 The industry, market and competition 2.5.1 Industry The Cloth and wear industry is expected to experience a growth associated with the latest business boom. Nationally, it has been an averaging annual revenue increase of 30% since 18th century. The need for parties, ceremonies; shows has open an opportunity for the success of this industry. 2.5.2 Market Initially the demand for clothing was quite low because people were still putting on backcloths, but as days went on people developed a feeling of being unique from others this called for an increased demand for new fashion and style for clothes and shoes hence rising the demand by the end of the 18th century. Since then demand for this products has kept on increasing each and every year. Its on to this that we will conclude that the demand will steadily increase as years go by. Infact as the trend of birth keeps going high even the market increases. 2.5.3 Customer profile Miguels boutique will have a solid customer base most of whom will have used the product for along time and have realized the quality of the products .From the customer care that will be offered which other boutiques cant offer, it will encourage repetitive purchase from the customers

2.5.4 Competitive analysis Given the current trend in our population and the growth of the urban centre, the demand for our firm will continuously rise. This will offer us an opportunity to expand and grow our business with less fear of uncertainties since its clearly predictable that the demand will continue to increase. Competition that exists now may not be compared to that of some years ahead because as per now a few boutiques have been established but we expect more to be established because of the desire to join the profitable business .though there is competition expected the boutique will have a greater advantage over other boutiques which includes. Location The location of this boutique is more strategic by the fact that it is located at the main street where most people do their shopping unlike others which are located in none busy streets .This gives it a better competitive advantage. Currently, low direct competition of products which exists alongside the supply of services Provides door to door services Up until now, the sales person has to go in the neighboring areas collecting orders and later bring them to the company premises, then delivery of the services has to be made at a later date as agreed upon with the person who will have collected the order. This has made the boutique to have a competitive advantage over other business-related companies who do not provide such door to door services and yet they are competing for the same customers. Transport Services The few boutiques that have been established do not provide transport services for their customers, therefore by delivering products to buyers who will purchase these products in large quantities will encouraging them to buy in bulk or large amounts hence beating the competition 2.5.5 Sources of finance Loan

The management will acquire a loan from Entrepreneurship Development Bank in Uganda (EDBU) amounting to 20,000,000 (Twenty million shillings). Allocation of funds Transport Clothing Jewelry Shoes Labor Furniture and fittings Weaves Wages and salaries 900,000 10,000,000 2,000,000 3,500,000 700,000 6,500,000 5,500,000 900,000

Apart from the loan the owners also have to contribute money amounting to 10,000,000 From the loan of 20,000,000 and the contribution we will be able to obtain large stock of products and charge relative prices in order to maximize sales and as well profit. This will help us to pay the loan promptly.

CHAPTER THREE 3.0 Problem identification In fort portal there are few boutiques and even the few do not deal in a range of items they mostly sell second hand clothes and few first hand, this is not because they do not want to 6

do so but because they could not acquire a large amount of capital .These concentrated on their own saving to establish the business and through inheritance of business from their parents. Almost all the boutiques charge higher prices on even outdated clothes .this higher prices are evident from the decreasing demand of these products. The location of other boutiques is not strategic enough to attract travelers, journalists; tourists who may want have quick purchases because they are far conveniently located in the main street where these people do their shopping. 3.1 Justification The many shortfalls of these boutiques gave an encouragement for establishment of boutique that would deal in wide range of products that are affordable by all kinds of people both poor and rich by charging relatively low prices on some products and charging expensively products that best fit the rich, and above all easily accessible hence necessitating it to be set up in the main street of fort-portal. On other important factor that stimulated the need to establish the type of business is the ease of acquiring a loan which other boutiques have initially failed to do .this has made them to operate with a limited capital as compared to the one that will be employed in this business. The most important aspect of business is the services it offers .the new business will focus on providing a number of services for example providing transport for customers, giving them helpers to off load bulky purchases, and promoting products of agents. 3.2 Objectives of the boutique To establishing branches in urban centre and towns To provide high quality products to our customers To provide the most effective and efficient customer care To capture the biggest market share in the first year of operation 7

To develop new products and market them To build a good reputation and strong relationships with different people To create and initiate new fashion To increase sales and reduce prices To creating and occupying a large market To building good customer care

CHAPTER FOUR 4.0 Business description The business will deal with selling clothing, shoes, expensive jewelries, and bungles for men, women, children and adults. Great focus will be on western kind of dressing like back shows, leggings, and old school type of dressing code. This is because African most 8

especially Ugandans tend to imitate the kind of fashions of the western world. It implies that a large proportion of purchases will constitute modern wears and resent fashions. 20% of the stock will be on the African fashion like legesa, comez, kanzu, etc and oldies fashion, suits of all kind will be available for all age groups. Product description A range of products will be dealt in while considering all age brackets, lifestyle, career, occasions, parties, ceremonies. The range of products includes the following: 1) Clothes 1. gents shirts , 2. jean trousers 3. suits 4. jackets 5. t-shirts , 6. trousers , 7. pants , 8. stockings 9. Skirts, 10. Blouses, 11. Night dresses, 12. wedding gowns, 13. bras, 14. Play clothes, for children Bags 1. hand bags 2. safari bags 3. designer bags 3) Bracelets and jewelry 1. shades, 2. sun glasses 3. watches , 4. rings, 5. bungles 6. boots, 4) Shoes 7. snickers 8. leather shoes ( open and closed) ,

The business will also offer the following services: Providing tailoring services after sales services like transport, business advise, or technical advise or providing transport for customers who have placed large orders 9

making decisions for customers like investment decisions

extending credit for customers helping those who would like to open up outlets giving donation giving bursaries to tailors

CHAPTER FIVE 5.0 Management of business The boutique will be a privately owned business where several people will be invited to buy shares. The business will have the general manager as its head, who will be the overall controller and overseer. The life of the business will depend on him. Below whom is the assistant general manager who takes care of the business when the general manager is not around. An accountant takes care of the business books of accounts. The finance manager, sales marketer, and procurement officer. In the above structure, the management team will be mandated to coordinate and supervise the lower staff. Other shareholders will directly participate in various areas that require various skills and specialties. Apart from these we will also have the procurement officer and the legal adviser.

CHAPTER SIX 6.0 Business premises We intend to establish the business in the western part of Uganda in kabarole district, fort portal town on Rukidi 3 Street. The firm will rent a commercial building on plot 106 which will be renovated to suit the business arrangement. The capacity of the premises will be 10

around 50square meters. The business will have branches in the central and eastern part of the country. For convenience its offices will be located in Kampala along Entebbe road on plot 295 so as to reduce the transport costs for customers from other parts of the country. CHAPTER SEVEN 7.0 Machinery /equipments First and foremost the business requires a large space of about 50 square meters so that there is space for customers to move a round selecting what is of their choice. The boutique require quite expensive equipments like dry cleaners, washing machines, dryers, automatic ironing machines ,sowing machines that will help in case of torn clothes ,necessary furniture fittings and fixtures ,decoration i.e. carpet, lighting .the interior design should actually be attractive. It also requires computers for recording, analyzing and reporting financial data relevant for decision making. Automobiles like generator, vehicles for management and another for ferrying products.

CHAPTER EIGHT 8.0 Product plan 8.1 Source of products We have secured a contract with cloth dealers and shoe manufacturers in America and England therefore Most of the products will be imported from these two countries. The companies include Nike, rebook for shoes and Sean jeans, and leather America. A South 11

African company has agreed to supply the business with all the necessary jewelry .apart from these sources we will purchase some products from some of the local designers like east African designers. 8.2 Materials of products The clothing material is mostly made of cotton, silk and some silver and gold coated for the high class. 8.3 Technology A high technology is to be developed consisting of computers which are to help in accounting purposes, detecting theft, and for inventory control purposes. We intend to install alarms that are connected with the police department. 8.4 Arrangement The products will be arranged in shelves to ease selection .these will be displayed according to their categories .in the categories price tags will be put on every product so that the customer can easily find what suits his or her budget. 8.5 Cleaning To keep the products clean and tidy we intend to employ people to clean the products each day and to organize them when a customer in the process of selecting disorganizes them.

8.6 Delivery of product When the product is imported, it will be delivered up to the main branch which is in kabarole and thereafter distributed to other branches .in every branch a vehicle is available to help deliver products to customers who have bought in bulk. The purchases will be as follows: Clothes Shoes Jewelry 50 bails 5 bails 12 (5x5) meter box 12

8.7 Sales We intend to use the main branch to supply to the western part ,then Kampala branch will have to serve the central part ,the branch in mbale will serve the north and eastern parts in order to help reach all the customers and to maximize sales. We also capitalize in increasing the stock during the festive seasons like Christmas, Easter, iddi days etc.

CHAPTER NINE 9.0 Marketing plan 9.1 Introduction Marketing the product is one of the most important activities that the firm will pursue in order to constantly keep up to-date with its customers the following strategies will therefore be used to market the products. Having established the business it is important to lay down marketing strategies to be used in order to make sure that the product reaches to the people and they get to know what kind of business this is, what products its dealing in, the services offered, and information on prices. A number of strategies will be employed by the management and these include the following: 9.2 Marketing segmentation In marketing our products we mainly segment our market into customer segments where we will mostly concentrate on the rich people who have excess to spend on luxuries and status which call for expensive clothing and wear. We are going to take care of seasonal demands for clothes, shoes because this is when demand for these products is high. 13

9.3 Price Due to the fact that a few people in fort portal earn high income relatively low prices will be charted on the products so as to attract even the low income earners. 9.4 Sales promotion The success of is imagined to going to be based on the promotional factor to be put in place .the following promotional strategies where sought fit for the business to prosper and beat its competitors Offering discount Customers who will purchase in bulk will be given a trade of at least 10% discount and those who buy with cash get a cash discount of 5% .this is viewed at encouraging bulk purchases and at cash. Persuasive adverts will be published in the news papers, writing magazines posters, and developing interesting television advertisements and shows In addition regional shows will be staged will so that the best participants walk away with different products .this increases sales since people will be attracted to buy these items at the promotion.

9.5 Places Products will be delivered to customers who have placed large orders Branches are to be established in at least every region in the country most especially western region like kyenjojo, kasese, Hoima and the central region most especially Kampala, masaka. 9.6 Participating in trade shows every year. When customers come across the products at the trade they will gain interest in the product.

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9.7Advertisement Several advertisements on electronic media such as television, radios internet, websites and other media will be run so as to make prospective buyers aware of our products. Products will be displayed in such a manner that people are able to view products even when they are at the road side. Print media like news papers, magazines, yellow pages, direct mail will be used. Where necessary the word of mouth will be used .this is mostly suitable where people may have no access to the media. 9.8 Organizing competitions Sports and street competitions are to be organized in different region so that people come to discover what kind of products the business deals with .several prices of the products will be given to winners of this competition. 9.9 Provide after sales services After a customer has bought the product, he can be helped in transporting them, packing them in his or her store or outlet and also finding out how their businesses arte doing on. 9.10 Donations and bursaries can be offered to certain special people or customer for example offering a bursary to the child of a customer. 9.11 Credit facilitation Selling products on credit terms to some customers after considering the 6cs of credit i.e. capital, character, collateral, condition, capacity, and connection

CHAPTER TEN 10.0 Organization and Management structure/team for the business

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10.1 General Manager He /she will be responsible for all the activities of the business .he is the controller .he is supposed to guide the entire workers when they are carrying out their activities. 10.2 Assistant general manager Responsible for carrying out activities under the general managers control. He is also required in absence of the general manager to perform the roles which were to be performed by the general manager. 10.3 Accountant He will be responsible for maintaining the books of accounts of the business. 10.4 Sales manager He is required to draw strategies for increasing the sales. 10.5 Marketer Responsible of drafting and draw marketing plans and carrying out strategies on how products should be marketed within the competitive market

10.6 Finance manager Responsible for all the finances of the firm. This includes planning for the sources of finance, the investment plans, and managing the financial inflows and outflows 10.7 Procurement officer Performs the task of searching for better sources of products /services, handles all purchasing activities in the business in terms of quality quantity and type of product material are handled by this person

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10.8 Other workers who include Legal adviser Takes care of all legal activities like leading the firm in courts of law, preparing the legal documents that the firm is required to posses Boutique attendants Welcome customers, arrange products direct customers Security guards Safe guard the business premises and to take care of the customers properties like vehicles, bags. Cleaners Drivers Potters/casual laborers

CHAPTER ELEVEN 11.0 Financial plan 11.1 Assumptions The following assumptions have been made when looking at the financial aspects of the project. The firm is to start operations on 1 November 2010 Our financial year runs from November to December of every calendar year The financing of this project is by the share holders and a loan from the bank The demand and the price will continue to increase 17

 Our competitive advantage will continue to remain stable and favorable The national inflation rate will continue to remain stable The boutique will not only depend on the borrowed funds but it will also lobby some fund from friends and donors to finance its expenditure. Borrowing will be a convenient means of attaining capital although this is risky because some times the business may fail to perform to its expectations to be in position to pay the loan. To counter this problem we decided to develop a financial plan which will guide the financial manager to allocate finances appropriately. According to this financial plan the business will be expected to earn profits as shown below:

FINANCIAL PROJECTION PLAN

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PARTICULARS 2012 UGX 000 18000 3600 14400 180 2013 UGX 000 20000 4000 16000 200

PROJECTED SALES PROFIT 20% SALES PROJECTED EXPENSES AMOUNT OF EARNINGS (5% Profit)

FINANCIAL YEAR 2014 2015 2016 UGX UGX UGX 000 000 000 22000 24000 26000 4400 17600 220 4800 19200 240 5200 20800 260

2017 UGX 000 28000 5600 22400 280

TOTAL UGX 000 138000 27600 110400 1380

DETAILED FINANCIAL BUDGET NUMBER PARTICULAR Snickers (for both male and female) 1 Black shoes 2 Earrings 3 4 Pants 5 Shirts 6 Jeans 7 Jackets 8 Suits 9 Hand Bags 10 Stockings 11 Pants and Snickers 12 T-Shirts 13 Shades 14 Watches 15 Blouses 16 Bracelets 17 Night Dresses 18 Weaves 19 Brass 20 Boots 21 Dolls TOTAL

AMOUNT
50000

20000 5000 30000 50000 30000 500000 100000 10000 3000 12000 20000 15000 2000 40000 2000 1200 23000 1500 20000 3000 498500

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CHAPTER TWELVE 12.0 Risk management plan There is a believe that the business will under go some risks therefore a risk management plan for the business will be taken care of as follows 12.1 Insurance The business will be insured against fire and theft with the national insurance corporation in order to prevent loss of property by either fire or theft which may lead to collapse of the business 12.2 Employing security guards Three security guards will be employed ,one will be outside to watch peoples movements around the boutique and control the parking yard ,the other will be at the entrance to help watch peoples actions at the counter .He ensures that the accountant and customers plus their properties are safe and help to control peoples movements inside. 12.3 Installing C.T.V cameras These cameras are for recording whatever movements that customers make so that incase one tries to malpractice then he or she can easily be caught. If the person is not caught chances of catching him are high because there will be evidence. 12.4 Watch mirrors This are mostly installed on the walls and in some part on the roof so that the attendants can watch people closely. 12.5 Installing alarms Alarms that are connected to police department will be purchased in order to prevent smugglers and thieves.

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CHAPTER THIRTEEN 13.0 Exit strategy In case the business is not not successful as expected we may need to divert to another form of the business and by so doing we will need to adopt ways of systematically disposing some of the products and assets.this include: 13.1 Diversification Products will directly be sold to the consumers at a cheaper price and giving discount so as to acquire enough capital for the new business. 13.2 Auctioning the business In case we need to deal with a completely different product we shall auction the whole business to prospective buyers in a competitive market. This will enable us to acquire a higher price for the assets and inventory because the highest bidder will take it all and hence change the business 13.3 Merging Another option is to merge the old business with the new one incase they are related or deal with the same products. The unnecessary assets and products will be disposed off 13.4 Selling intermediaries We may also sell to those who are willing to take over the business or they need to buy and resale it at a profit. This will make us to avoid losses that would be incurred in the process

13.5 Monitoring and evaluation:

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When the planning is done, the plan has to be followed up by monitoring it and evaluating how much achievements have been made so as to judge the performance of the business We will look at the risks associated with the business for example the level of competition, costs, interest rates and inflation. However, the business will try to reduce the risks where possible, after noticing the business risks. The business will go ahead to evaluate the risks and find out which ones are desired and will lead to the satisfaction of the customers needs. The routine monitoring and the evaluating tools to be used will entail the following; i) ii) iii) Regular meetings among the management team. Use of research questionnaires to find out customer likes and dislikes. Auditing the books of accounts to avoid errors and fraud

Conclusion

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We have decided to choose a boutique because after analyzing the trend in which this industry is not only growing so fast but also its profitability is so high and since there is a bit of less competition in kabarole we have decided to set it up there .on analysis there are many factors that have lead to the growth of this industry some of which include; desire to attend parties ,celebrations ,seminars, meetings which need one to dress smartly ,the desire to portray status in terms of clothing and wear. An inquiry from the select garments, one of the most successful dealers in clothing and wear showed that thus business earns a profit of at least 30% of the capital invested. This thus encouraged us to establish a boutique business. Recommendation From the financial projections that have been shown, the business is expected to earn profits and enable it finance the loan and pay the operating costs and pay the capital interest of borrowed funds. For this case we recommend that you should adopt this plan

APPENDICES 23

Legal requirement According to the Ugandan laws any person is free to establish a boutique as long as he has the necessary capital. However before, when and after establishing the business, it has to meet the following requirements 1. The business must deal in products accepted by both the society, the ministry of trade and the Uganda revenue authority 2. Register with local government 3. Pay tax/license

List of directors Niwagaba Emmanuel ... Managing director Gatta Marius... Assistant managing director Mukani Philip ... Deputy managing director Kada Djongo Miguel ... Financial manager Lauriane Faridah ... Branch manager (Kampala) Kadja Clarisse .. Branch manager (Mbale) Gatta Solange. ... Branch manager (Gulu)

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