Tuesday, November 5, 2013

Budget Planning

After a failed initial budget meeting with my primary investors in the company, I went back to the drawing board. They suggested I come back for my second proposal with a more concrete plan. Here is what I have so far:

Cheapest Option:
8 looks, at least 3-5 yards per look.
24 yards of fabric at $7 per yard
--fabric would be cheaper and lower quality, wouldn't be able to make a complete profit
Total cost: $168 for fabric, plus an estimated $50 for zippers, buttons, thread and finishing tape

Middle Option:
6 looks, 4 yards of fabric per look
24 yards of fabric at $12 per yard
--fabric would be higher quality than the cheaper option, and provides the most opportunity for profitable turnaround 
Total cost: $288 for fabric, plus an estimated $40 for zippers, buttons, thread and finishing tape

Most Expensive Option:
6 looks, 4 yards of fabric per look
24 yards of fabric at $15-17 per yard
--fabric would be of extremely good quality, would be able to sell clothes for more money therefore has potential for either a highly profitable turnaround or no sales at all because of higher prices on clothin
Total cost: $360-408 for fabric, plus an estimated $40 for zippers, buttons, thread and finishing tape

A closer look at the typical Etsy buyer: choosing the best budget
 
http://www.alexa.com/siteinfo/etsy.com - a credible website with a ton of info on the everyday etsy buyer
Etsy is the 42nd most visited site in the US and the 142nd most visited site worldwide 
Buyers often spend around ten minutes on the site at a time, meaning pictures must spark a quick initial interest
A large majority of the demographic is female, meaning clothes made for women have buying potential

Final budget planning:
My parents have chosen to give me the initial budget of the cheapest option and to up the budget based on fabric needs of particular looks.
We have also decided to create a line with only the initial six looks to ensure well made clothing and a reasonable time commitment 
The current goal is to design and produce the line for sale around springtime (lighter, cheaper fabrics that would allow for a more profitable turnaround to increase sales and continue the business further on from the initial 6 looks)


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