FINANCIAL INPUT TO START A NEW BUSINESS
Initial Investment * : ₹2,63,00,000
Office Space requirement (sq.ft.): 1,400
Turnover to Break Even: ₹3,98,75,000
Number of staff required: 23
Typical Time Required to Breakeven: 15 months
Gross Profit Margin: 40%
|Running Expenses||Per Month||Annually|
|Staff Cost (23 staff)||₹7,80,000||₹93,60,000|
|Total Running Expenses||₹11,10,000||₹1,33,20,000|
*Initial Investment Breakup:
Furniture & Infra : ₹8,50,000
Deposit for rental place : ₹3,50,000
Website : ₹1,00,000
Initial stock (Merchandise) for 2 seasons : ₹2,50,00,000
For any fashion brand, there are typically 4 seasons in a year when new products are launched. It is assumed that a new business owner will be able to cater to only 2 seasons in the first year. The merchandise expense for each season will be approximately INR 1.25 crores. Though a typical fashion brand startup would entail selling both offline and online, the costs for offline setup have not been included in the above-outlined budget but can be planned out separately as it is a separate profit-making concept. The above budget is estimated based on women's western wear brand. The budget would be moderated as per product category and end market. The above budget is drawn out with careful speculation on the quality of staff by hiring the staff from a premium institute like NIFT on top management and having international designers also involved to create a more global look for the startup.
Office Space requirement of 1,400 sq. ft. includes cubicles for management, meeting room and a small showroom for sample display. 23 staff includes: 2 Senior Managers, 4 Merchandisers, 3 Quality Control (1 senior and 2 junior), 2 Designers (1 Head and 1 Assistant), 8 comprising Online Support Team, 2 Offline Support Staff, 1 for Accounts & Admin, and 1 Peon. The top 3 mistakes to avoid to be successful in this business are: 1. Hiring part-time consultants OR non-professionals to save costs. 2. Keeping Low budget for procurement or buying lesser options to test the market. 3. Not keeping a watch on the Monthly Sales report religiously. These numbers have been obtained by interviewing a business owner based in Gurgaon. Your numbers may vary based on your location and other factors. If you want to launch a women's wear fashion brand, you can also talk to an expert business owner. Simply scroll below to schedule your call.
Talk with Business Owners
Schedule a one-on-one call with business owners. Over a 1-hour call, have all your pressing questions answered before starting your business. Know the common mistakes you must avoid, understand current market trends and discuss customer acquisition strategies that you could adopt.
Business Owner : Amit K Kansal
Amit Kansal @ Gurgoan is the founder of InLeague Sourcing Pvt. Ltd. which has been operating in the area of Fashion and Home Products Manufacturing / Sourcing / Inspections / Consultancy since 2009.
InLeague has presence with their own offices in India, Bangladesh, UAE, and Spain and soon expanding to Canada and USA.
Amit is a NIFT Fashion Tech graduate from 1999 batch NIFT, Kolkata and MFTech 2016 Batch NIFT, New Delhi. He has experience of working for full circle in his line of business, right from working in Factory to Buying Agency to working with lifestyle brand in design & buying role.
InLeague has been working with top retail brands across USA, Canada, UK, Europe, Japan, Malaysia, Australia having shipped goods worth more than 250m US dollars in their Sourcing and Manufacturing profile.
With the boom in online retail business, InLeague has also been working with start-up brands from the past 5+ years whereby InLeague provides assistance with a complete blue print or roadmap for the investor to get an overview of the ROI, and also involves itself further with such brands in ethical sourcing and production of the products for the brand.
InLeague vouches for the quality and on-time deliveries. With a proven track record in quality and customer satisfaction, InLeague has been able to supply to customers in Japan where the quality tolerance level is 0%. To achieve this, InLeague gives 100% attention on overall fine management of the orders and processes.
Next Availability :
Tuesday, 24-May-22 Between 5-6 PM
Friday, 27-May-22 Between 5-6 PM
Saturday, 28-May-22 Between 11-12 PM
Per call charge :