Wholesale Clothing Business Plan

There are several things to consider when creating a wholesale clothing business plan including the source of your clothing, what type of clothing you will import, and how they will be distributed. Some wholesale clothing companies provide the manufacturing, whereas others simply serve as an importer for manufacturers and either sell directly to consumers or enter retail stores. Pro Business Plans has worked with several wholesale clothing companies to create professional business plans. This article covers what is in a wholesale business plan and how it should be structured.

The business model for a wholesale clothing business plan depends upon your relationship in the supply chain. Some manufacturers will setup wholesale clothing companies in order to sell their productions and avoid intermediaries, whereas others only serve as wholesalers to manufacturers and import companies. The profitability depends upon the turnover, sales, and profit margins of the company. If you are seeking outbound investment, financiers will seek to understand the structure of your company and how it impacts your profitability.

A wholesale clothing business plan typically includes three to five year financial projections comprised of an income statement, cash flow projections, and a balance sheet. Investors will want to understand that the financials have adequate profit margins and it is feasible enough to reach sales projections for investors to receive their return requirements. A custom financial model can help you to determine the pricing strategy, wholesale margins, and identity key risks. For instance, performing a break-even analysis can help you to better understand how many units need to be sold in order to break-even from your fixed costs.