In order to produce a viable business plan, I decided to work with my consultant as well as my collaborative unit AMFI student who is also creating an app to help me understand how to create a financial breakdown projection. I have created one with a schedule, best case and worst case scenario. I have also attached a financial start up cost with a financial breakdown.
Here is my business model attached: Youniform’s competitors are separated by two categories: platforms and mobile applications. News platforms such as HypeBeast / HypeBae, Complex and Highsnobiey are news outlets for the streetwear industry. Grailed, SLYDE, and NTWRK are all mobile application competitors with differing features, from rating users outfits to shoppable video content. Youniform’s unique selling point is that a multi-feature social networking platform for streetwear has never been done before. Platforms such as Grailed (although a marketplace application) and NTWRK (a video marketplace application) have proven that this niche subculture of sreetwear has actually taken over the digital fashion marketplace.Youniform will be sustainable due to Gen-Zers who will run this new community is also known to be Gen ‘Me’, marketed by brands constantly due to their desire to document online in search of status, clout or as a meaning to belong. The target market for this platform would be those involved in the UK (which is the epicenter of this new wave) elevated streetwear community, or those who want to be involved. This target audience is a mix of Gen Z-ers (20-24 years old) and younger millenials (24-28). This audience is important to target as they command $44 billion in buying power (Khoros, 2019). There is a desire from this subculture for a social networking platform to connect the community (Reddit Streetwear group, 2018). The total market of GenZ within the UK is £12,000,000 (statisa, 2020) and within London is number of genZ in London that are in the streetwear community £2,400,000 (BOF, 2018). £720,000,000 is how much as a small start up we can achieve according to our low budget. The business model of Youniform is based upon payment for paid advertisement within the mobile application. Similar to apps like Instagram, Youniform plans to charge users for promotions and advertisements within the application. Initially, Youniform will not need to purchase any property, plant or equipment. In the first year, start up costs will add up to £11,553.64. This start up cost is relatively low to the amount of revenue that will be collected in order to show positive profits and cash flows in year 1. Start up costs will include software and development, salaries and wages and marketing. There is a one-time fee of £1,500 for any coding that cannot be done in house and needs to be outsourced, as well as a one-time marketing fee of £ for the launch. Main costs and expenses to the business include software maintenance, development, salaries and wages and marketing. Marketing will prove to be the largest initial cost to the business because to create a community for initial customers there needs to be a significant amount of initial users to prove value to the business model as a universal platform for community based interactions, inspiration and effective exposure for promotions which will be the company’s main source of revenue in its initial years. First year profits will be reinvested in the business and put towards marketing spend and user capture in the amount of 5,039. In year two, after the launch we will raise our digital marketing expenses by 5%, keep investing in a digital marketing specialist for £700 p/m and will keep spending £64.6 p/m on mobile application hosting. Due to our small team and limited knowledge of digital marketing, there may some failures and loss. If there is money left over from this profit, it will go towards understanding the marketing, attending events and developing future revenue streams. Profit and Loss projections are within the financial breakdown attached.
