Managing a business is a sensitive activity that involves proper planning and approach to business situations. Planning in a business is important as it ensures that the activities are carried out in an organised manner. Moreover, it helps in managing any uncertainties that may emerge in the business. In order to succeed a new business has to ensure that it caters for the uncertainties that may occur. Thus, when planning to open a company one needs a business plan. The latter will take into consideration the company`s location and the nature of the business that is being initiated. For instance, when planning to open a fashion boutique in Saudi Arabia, factors of the locality of the business will be considered. In addition, the nature of the fashion boutique will be a key factor in the business plan. The goal of such a business plan is to enable the company to manage uncertainties in an efficient and appropriate manner.
Business Plan Concept
The basic element of a business plan is what it relies on. A business plan will portray certain concepts that distinguish the fashion boutique from other fashion boutiques in the region. A business plan for the fashion boutique will take into consideration local fashion designs in the region (Edwards, 2009). Aspects of culture and legal policies will be highly prioritised in the business plan. For instance, the fashion boutique will ensure that the clothes, which it sells, are culturally upright according to Islamic tradition. Western fashion will be minimally involved in the clothes offered by the boutique.
In addition, the boutique will integrate specialisation of products by ensuring variety of fashion items in it. It will enhance the boutique’s uniqueness and quality, which will distinguish it from other boutiques in the region (Scholey, 2005). The boutique will involve products such as beauty cosmetics that are friendly to Islamic culture. For instance, perfumes and nail polishes will be also offered by the boutique. Moreover, the uniqueness of the fashion boutique will be enhanced by its location. That way, it will be located in a fashion-oriented town in Saudi Arabia. The uniqueness of the boutique will be inclusive of customer advantages such as price reductions and discounts. These concepts of the business plan will be the main concern of the fashion boutique to ensure that the business is not a franchise or a duplicate of an existing business.
The concepts of the fashion boutique that lead to its uniqueness greatly help in the maintenance of the business in the fashion market. The fact that it will offer a variety of products will ensure that the uncertainties within the fashion boutique are well managed for efficient running of the business (Edwards, 2009). The uncertainties that may come as a result of poor business planning include market unreliability and customer prioritisation issues. However, with the help of the business concepts, the uncertainties are solved much easily. Market unreliability and customer prioritisation issues are solved through a provision of a variety of fashion products in the fashion boutique. Therefore, the concepts will help the fashion boutique succeed in Saudi Arabia.
Market competition will be highly regarded in the business plan of the fashion boutique. Identification of market competition is an important aspect for success of any business. The business plan will be much concerned about the market trends in Saudi Arabia, which are determined by the competitors in the fashion boutique arena in Saudi Arabia. Among the main competitors are the Farfetch.com and the Adaa Fashion Boutique. The success of the fashion boutique depends on competitive advantage of the business, which makes the business more competitive in the fashion market. The business will be located in a location accessible to upper-class people. In addition, the boutique has to offer quality clothes. This will create a competitive advantage of the fashion boutique over the others. Customer specification will also remain a key motivating factor for the boutique (Scholey, 2005). Therefore, the business must suit the tastes and preferences of upper-class people. This will make the customers give priority to the fashion boutique among other boutiques. Therefore, market competition of the fashion boutique will be enhanced by the fact that many upper class people will visit it, as they are looking for expensive and unique clothes. That way, the business plan will ensure that all the elements that will boost the fashion boutique in Saudi Arabia are included in the actual boutique practices.
Products and Services of the Business
Products offered by the business are an important factor for the performance of the business. The business will ensure that it sells products that are fast-moving and that bring revenue to the business (Edwards, 2009). In order to succeed in Saudi Arabia, the products that the business will offer will be clothes and beauty cosmetics that correspond to Islamic traditions. The clothes will be the main focus of the business and they will be classified into the following categories: kanzus and dresses for ladies, and kanzus and caps for men. The categories represent the basic clothes of the Muslims.
On the other hand, since the fashion boutique targets upper-class people in Saudi Arabia, the designs involved in the attire will be highly creative. For instance, the kanzus that the business intends to sell will be presentably designed to attract wealthy customers. In addition, the clothes that the fashion boutique chooses to sell will be of the latest fashion. This will help in attracting wealthy customers while enhancing the uniqueness of the boutique. The business plan will entail the competition distinction whereby the fashion updates and the presentable design of the products will ensure that the fashion boutique offers the kanzus in a different approach than other boutiques.
Most importantly, the beauty cosmetics that the boutique will offer must correspond to Islamic tradition. The boutique will offer the newest cosmetics in the market to attract wealthy customers. To create uniqueness of the boutique in cosmetics trade, the business will offer make-up application services (Scholey, 2005). For instance, nail polishing, manicure and pedicure will be the main services the business offers. Therefore, the uniqueness of the products and services the business offers makes the business competitive and therefore, uncertainties in managing the business are reduced. This means that a business plan will function appropriately in describing the uniqueness and competitiveness of the products of the fashion boutique.
Pricing of the products and services that the boutique wishes to offer is a major component of the business plan. The market for the boutique’s products is upper class people. Therefore, the products will be of high quality and presentable to rich people (Scholey, 2005). The high quality and presentable nature of the products the boutique offers will result to high prices of the products. The clothes offered for sale in the boutique will be made by the tailors employed by the boutique. The designs created by the tailors would result to the clothes’ high prices.
Therefore, the prices of the clothes will be high due to the high cost of inputs. The pricing costs of the products in the business plan will consider integration cost, delivery cost, parts` cost and economies of scale. The four aspects will ensure that they favour wealthy people. In addition, the business plan will focus on the aspect that will determine the end of season. This helps in creating a peak season for the sales of the products by the boutique. Thereby the pricing of the products hikes with respect to the rate of upper class people in Saudi Arabia. This will help in minimising uncertainties for the business. Therefore, a detailed presentation of the products` prices would assist in making the fashion boutique`s performance effective. The prices will range from 99 SAR to 249 SAR in order to ensure that they are within the range of the prices of other products presented in the market.
Risk management is another important aspect of management of uncertainties. Every business has a chance to be exposed to risks. The only difference is how the business approaches the risks (Edwards, 2009). Therefore, risk management is an important aspect for the business. The fashion boutique in Saudi Arabia will also ensure that it implements effective risk management policies. The profit and revenue levels will remain attractive for the operation of the boutique. The random change in the boutique’s revenue and profit level will be approached in an intelligent way because they create risks for the boutique. The reputational and financial risks are the main risks that any business faces (Scholey, 2005). The risks depend on the boutique changes. For instance, customer-boutique relationship is very most important to the successful operation of the boutique. The deterioration of the relationship results to financial risks. Therefore, the relationship between the boutique and the customers will be detailed in the business plan to ensure the risks are adequately managed.
The suppliers are also important in risk management. The fashion boutique depends on the services of the suppliers. Therefore, the relationship with the suppliers will be maintained in close and favourable terms. This will help in risk reduction within the boutique and risk management. Therefore, it will be much easier for the boutique to handle uncertainties if risk management processes are included in the boutique`s business plan.
Business budgeting is an important and sensitive element of a business. This means that for the fashion boutique, budgeting details are important in management of business uncertainties. The elements that build up the budget of the fashion boutique will be included in the business plan together with the policies to ensure favourable terms. The main elements to be featured in the budget include revenues, expenditures and profit margin of the company (Scholey, 2005). The expenditures of the fashion boutique will be inclusive of the following elements: boutique’s business location, advertisement, equipment, personnel and legal requirements. The expenditures of the boutique will contribute to its revenue generation. In addition, profit margin of the boutique depends on its expenditures. Therefore, the policies related to the company`s expenditures will be detailed in the business plan to ensure that the budget management is effective. The following is a summary of the budget:
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Marketing and Advertisement of the Boutique
Marketing and advertising are other aspects that the business plan will entail to ensure management of the uncertainties. Advertising creates brand awareness of the boutique.. Therefore, advertising will help the fashion boutique increase its sales (Edwards, 2009). Therefore, the business will ensure that the advertising methods applied attract a large number of customers. The business will ensure that the social media has been extensively used to advertise the products to wealthy customers. It is important for the business to have its website. This helps in the advertisement of its products. Creation of newsletters as a means of advertisement will be used. Therefore, the advertising platforms will be intensified and actively used.
The interdependencies of the advertising channels are important for the boutique’s success in the market. Marketing aspects are related to the interdependencies of the advertising channels. Therefore, the business plan will ensure that the interdependences correspond to the advertising channels, which will be included in the business plan (Scholey, 2005). Advertising ensures that the uncertainties that might be faced by the boutique are well managed hence leading to the boutique’s effective performance.
In conclusion, the business plan of the fashion boutique in Saudi Arabia will be inclusive of all the important details. The elements of the business plan will ensure success and competitiveness of the boutique. The products, advertising channels, budget definition, risk management and pricing of products will remain efficient and effective for the performance of the fashion boutique in Saudi Arabia. They will consider the geographical and cultural background of the area. Therefore, uncertainties faced by the business will be easily handled due to the effectiveness of the business plan. The boutique targets rich people in the region, meaning that the products will have to correspond to tastes and preferences of those people.