BUSINESS START-UP PROPOSAL

By Zeeshan Mahmood

Zeeshan Mahmood
1 Linden Avenue
Blackburn
Lancashire

Current banking arrangements

Bank name: [Bank]
Branch name: [Branch]
Sort code: [xx-xx-xx]

Contact details
Telephone: 07835384137
Mobile: 07835384137
Email: Clapback96@googlemail.com

01/07/2010

The business idea

Business name
The proposed name for the Shanks Shirts

Business idea
The business idea is [describe idea] the T-shirt business continues to attract start-ups armed with
ideas and enthusiasm, my business idea is to take the EBAY t-shirt wholesale business to a
whole new level by personalising t-shirts for a large audience i.e. 3-50yrs of age as this has not
been done before, Also the custom T-shirt printing business takes orders for contract printing.
The business owner is responsible for setting up a screen print or digital imaging shop to produce
the orders. Screen printers need a T-shirt printing press and a drying machine, along with other
screen printing equipment and supplies. A start-up screen printing shop with a manual rotary T-
shirt press may be set up for several thousand pounds. The new digital imaging technology is
more expensive but is good for short-run, full-colour printing. Typically, the custom T-shirt printing
shop targets businesses and organizations that need a large number of T-shirts, such a
restaurants, schools and summer camps (as summer is coming up this would be ideal). I would
target small businesses and advertise my product as widely as possible.

Key success factors

There has been an explosion in online T-shirt business selling custom designed lines of clothing.
Entrepreneurs can test their line on free online T-shirt sales sites, such as Cafe Press. These
sites fill orders with digital print-on-demand technology and pay a cut to the designer. Many online
T-shirt businesses create their own site to market and sell T-shirts. It takes outstanding ideas and
designs to catch attention in this environment and I think I have some winning ideas -
1. Vision. You need to know who you are, what you're doing, why, etc. This will define how you market your
product, how it looks over all, and all the little details within that you need to do. Yep, so figure that out and
then go nuts because you can't go wrong with a big idea, as long as you know what the big idea is.

2. Marketing. It's essential in today's design world. You might have a good product but if its weak on
branding, labeling, packaging, shelf appeal, matching coat hangers, etc., it'll look bad. Consistency also
needs to be achieved across the spectrum including same font, same style, etc. Designing is totally open to
new creations and ideas, so anything goes, but there are some boundaries that you don't want to cross,
while others you need to break through.

3. E-commerce. Yes, it's fully possible! It will take some setting up though, but I've recently realized how I
can just pick up the phone and order a set of hoodies, wait four days until they're on the doorstep, pay for
them a month later online, etc. Also, I can call up the fabric company down the road, or one in wellington,
get them to send me samples of denim, call them back and order a set amount of denim to be sent to my
garment manufacturer, and then call him and tell him how many of what I want right from my rocking chair at
home.

4. Online selling. Totally possible if you use ebay or know how to set up an E-commerce website yourself,
but getting the credit card system sorted out is a major cost. Lots of girls shop online now, you just need to
know how to market it right and get your products noticed.

5. Promo. Get it out there! Make sure your friends buy your products or you could give out freebies. Put
stickers, advertising your shop, wherever you can. Be shameless because designers are really admired (as
opposed to being a 'salesperson'), especially if your product is favorable.

6. Don't waste your time on silly details. I'll let you figure out what those are.

7. Get your accounts sorted out now. Segregate your personal and business spending, so you can claim
back GST with no problems. Make sure every transaction (sales, purchasing, spending, etc.) goes through
your account, so you can see how well you're doing by looking at your bank statement. Use the ATM
machine for petty cash; your accountant will love you one day for this.

8. Have fun! It's not the end of the world if it doesn't work out. I was just thinking how involved my life is at
the moment with my T-Shirt business. My life revolves around it, which is crazy, but if it all fell apart and
closed down tomorrow I'd be the same person and I'd find something else to do! I make sure I take one day
off during the week to do what I love that doesn't involve my work. I love doing my work, so I'm very lucky in
that aspect, but sometimes it gets boring or tedious so I make sure I stay fresh and focused.

9. Work hard. I still do after three years. I work my butt off and hardly make any money off it, but I know it's
worth it in the long run and the things you learn along the way are invaluable.

10. Give away free stuff! People love free T-Shirts and sponsorship goes a long way. It's also your duty,
being in business and generating wealth, to share that with society in some way (Example: Old stock goes in
recycle clothing bins, etc.).

Location of business
The business will be based at [my home / workshop premises / shop premises / office premises /
other].

Target market
[Describe the type of customer which your business is aimed at, and the geographic area in which
your business will operate. Also describe why you believe customers will be attracted to your
particular business over any other businesses or products that may already exist.]

Skills and abilities

[Describe the particular skills, qualifications and abilities you have which will help make the
business a success, including, for example, previous jobs or businesses.]

Business partners
[Describe any business partners who will be involved in the business, including their skills,
qualifications and experience, and the roles each of you will perform.]

Staff and employees

[Describe the numbers and types of key staff and employees you intend to recruit, including the
principal roles and positions which will need to be filled.]
Financial resources available

Capital available from savings and investments

I am/We have savings and investments which I am/we are able to put into the business, totalling
£[xx].

I/We also intend to raise additional capital of £[x] from [describe where you will raise this from].

Income from sales

I/We estimate that income from sales will be £[x] per month during the first 6 months, starting from
month number [x].

In the second 6 months, I/We estimate that sales income will be £[x] per month.

[Describe the basis for these estimates.]

Grants and training support available

I/We understand that financial support may be available from the following organisations:
[list organisations].

I/We estimate that I/We will receive financial support in the first year totalling £[x].

Security available
I am/We are able to offer the following assets as potential security against any loans which I/We
may require:

Estimated market value of home: £[x]

less: outstanding mortgage: £[x]
less: other loans secured on home: £[x]
Resulting estimated equity in home: £[x]

Security available from other sources:

[list other sources of security, and estimated value.]

Start-up loan
I/We estimate that I/We will require to borrow a total of £[x] from Bank of Scotland as a start-up
loan. [You can omit this section if preferred, and discuss loan requirements with your Bank of
Scotland Manager.]
Business expenditure and costs
Personal remuneration
I/We need to pay myself/ourselves a total of £[x] per month for the first 6 months of the business,
and a total of £[x] per month for the second 6 months of the business.

Start-up costs
I/We expect to incur expenditure on the following items before opening the business:

Equipment: £[x]
Machinery: £[x]
Vehicles: £[x]
Computer System: £[x]
Fittings for Premises: £[x]
Raw Materials: £[x]
Advertising and Promotion: £[x]
Insurance Premiums: £[x]
Professional Fees: £[x]
Other [list other items]: £[x]
Total: £[x]

Running costs
I/We expect to incur the following running costs during the first 6 months of the business:

Rent on Premises: £[x]

Rates on Premises: £[x]
Gas/Electricity Usage: £[x]
Telephone Charges: £[x]
Wages (for others, not yourself): £[x]
Advertising and Promotion: £[x]
Fuel costs & Vehicle Road Tax: £[x]
Despatch Costs: £[x]
Professional Fees: £[x]
Other Items (including stationery) [list other items]: £[x]
Total: £[x]

I/We expect to incur the following running costs during the second 6 months of the business:

Rent on Premises: £[x]

Rates on Premises: £[x]
Gas/Electricity Usage: £[x]
Telephone Charges: £[x]
Wages (for others, not yourself): £[x]
Advertising and Promotion: £[x]
Fuel costs & Vehicle Road Tax: £[x]
Despatch Costs: £[x]
Professional Fees: £[x]
Other Items (including stationery) [list other items]: £[x]
Total: £[x]

I understand that Bank of Scotland does not apply any bank transaction charges during the first
year of my/our new business.

Capital costs
I/We will need to finance the following items of capital equipment during the first year of the
business:
Machinery: £[x]
Equipment: £[x]
Office Equipment (excluding Computer Systems): £[x]
Office Furnishings: £[x]
Computer Equipment: £[x]
Cars [list quantity]: £[x]
Commercial Vehicles [list quantity]: £[x]
Others [list others]: £[x]
Total: £[x]

Finance payments
I/We estimate that the total cost of finance payments in the first 6 months of the business will be £
[x], and £[x] in the second 6 months of the business.

Costs for materials

I/We will need to purchase the following types and quantities of materials:

[list types and quantities of materials needed for manufacturing or resale.]

I/We estimate that these materials will cost approximately [x]% of the price at which we expect to
be able to sell the finished products.

Business protection costs

I/We will ensure that appropriate insurance protection is arranged for the business, and estimate
that the total cost of insurance premiums for the first 6 months of the business will be £[x], and in
the second 6 months, £[x].
Projected cash flows
I/We have prepared cash flow projections, which are attached to this document.