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T-Shirt Business Plan
If you’ve got a passion for t-shirt designs or a dream of starting your own t-shirt business, you’re in the right place.
And isn’t it exciting to know that the global t-shirt industry is booming?
The global custom t-shirt printing market was valued at $4.87 billion in 2021 and is anticipated to reach $10.37 billion by 2030 .
So, it’s clear that there is a lot of earnings in this exhilarating adventure of starting a successful t-shirt company.
Now that your idea is validated, have you thought about planning it before diving into execution? Whether you want external investment or not, our t-shirt business plan will help you in every step of your journey.
This step-by-step guide assists you through the process of creating a t-shirt brand that leaves a mark on potential investors or partners.
Let’s dive in and discover the essential elements to kickstart your t-shirt business plan writing.
Key Takeaways
- Clearly identify your niche and establish your unique selling proposition(USP) that sets you apart from other t-shirt businesses.
- Draft a persuasive executive summary that outlines your goals, marketing plan, and financial forecast to attract potential investors.
- Make a realistic and strategic budget plan to assess startup costs and secure adequate financial funding.
- Do thorough market research and industry analysis to get a better idea about fashion trends, consumer needs, and preferences.
- Effectively promote your brand by developing a comprehensive sales and marketing approach.
- Highlight the importance of high-quality fabrics to build trust and loyalty among customers.
- Create a strong online presence to reach a wider audience and adhere to legal compliance to protect your brand.
How to write a business plan for a T-shirt Business?
1. get a business plan template.
Before you start writing a business plan for your t-shirt business, it is recommended to get a business plan template first.
It’s like having a guide that makes your business planning process more simpler and easier. It is a structured format and assists you in adding all the essential information to your plan.
However, you can effectively organize your thoughts and accurately draft a professional business plan according to your business requirements and preferences.
Not only that, a well-crafted business plan template helps you describe each section in detail with utmost care. And it will save you valuable time and effort.
Whether you are a newbie in the business world or looking for a polished template, choose Upmetrics’ business plan template now! It will be your go-to companion for a blossoming t-shirt business.
Our business plan template guides you through the essential elements of a T-shirt business plan and ensures that you present your business plan cohesively and professionally.
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2. Write an Executive Summary
The executive summary is a brief overview of your entire t-shirt printing business plan. It should feature an interesting description of your t-shirt business idea.
Try to summarize a few important topics of your business, from mission-vision statements to financial projections that will be explored in greater detail within the plan.
An executive summary should be clear, concise, and engaging as it attracts readers to delve further into your plan. Here’s how you can outline this section:
- Business description
- Market Opportunity
- Products and services offered
- Management team
- Financial highlights
You can also add a 3-year profit forecast as it entices investors to delve further into your plan. Here is an example illustrating the profit margin for the t-shirt business:
Lastly, conclude this section with a persuasive call to action for inviting potential investors or readers if they are curious about your business.
3. Provide a Company Overview
Now, it’s time to focus on key aspects of your t-shirt printing business that help you turn your idea into something real and concrete.
Provide all the basic details of your t-shirt company including
- Name & concept of your business (a physical store or online t-shirt business)
- Company structure & legal entity (sole proprietorship, Limited Liability Company (LLC), partnership firm, or some other)
Clearly define your business owners’ or partners’ names with the percentage of shares. And emphasize your passion for fashion and commitment to quality with mission and vision statements.
Here is an example of defining the mission statement of a t-shirt company using Upmetrics:
Discuss a little bit more about the business history and how your company operates. Here, don’t forget to answer questions like:
- When did you start your t-shirt business?
- What is the purpose and long-term objective of your t-shirt brand?
- What milestones have you accomplished? It could be the number of customers served, positive reviews, new t-shirt store openings, etc.
Also, represent any regulations or licensing requirements that affect your t-shirt company.
4. Conduct an Industry and Market Analysis
Starting a t-shirt business requires a strategic roadmap and a comprehensive t-shirt industry analysis. So, take some time to go further and locate more accurate data.
Consider answering the below questions to filter the most pertinent facts:
- What is the relevant market size of the t-shirt printing business?
- Is the market growing or dropping?
- Who is your target audience, and what are the habits of your ideal consumer?
- Who are the key players in the t-shirt printing industry?
- What are the market trends affecting your business?
- What is the potential growth forecast for the next 3-5 years?
This market research outlines a clear picture for planning every practical aspect of your business. Include below essential elements in your t-shirt business plan:
Market size and growth potential
It’s a major t-shirt market in the U.S. and it implies that there is an ongoing demand for new t-shirts. So, you need to explore specific data about various markets in which your company operates to ensure success and profitability.
It’s a well-diversified market as t-shirts are highly popular among an assortment of consumers. In 2023, the US t-shirt market revenue is projected to be $5.2 billion and is expected to grow annually by 3.56% (CAGR 2023-2027).
This report depicts the size of the t-shirt business market and serves as a practical example of what to incorporate in this section of your business plan.
Target market
In this section, you can give details of the customers you serve or expect to serve. Conduct market research, define your ideal customer, and describe the types of products or services they prefer.
College students, sports lovers, soccer mothers, techies, teens, and baby boomers are a few examples of customer segments.
While creating a buyer persona, consider demographics, style preferences, buying behavior, and their needs. Also, illustrate how your t-shirt designs cater to specific market segments.
Competitive analysis
Now, it’s time to identify the top competitors in the t-shirt industry. Let’s categorize them into the following two parts:
- Direct competitors can be other t-shirt businesses
- Indirect competitors can be other types of shirts and apparel items
Analyze their strengths and weaknesses, and explain what differentiates your T-shirt brand from them in terms of design, quality, and brand identity.
Emphasize what are your competitive advantages in the market. You can also perform a SWOT analysis to find your business position. Here is an example of a SWOT analysis using Upmetrics:
- Market trends
The dynamics of the fashion industry and emerging market trends can potentially influence buying and selling patterns. So, make sure your t-shirt company will potentially cope with all the trends.
Refer to updates from fashion and business publications to get the latest insights into the current industry trends for t-shirt businesses.
5. Propose Your Product Offerings
Begin this section with a quick introduction to your T-shirt business’s product line. As per t-shirt designs, your t-shirt offerings can be any of the following:
- Men’s t-shirts
- Women’s t-shirts
- Children’s t-shirts
- Toddler’s t-shirts
- Printed t-shirts
- Customized t-shirts
- Pet T-shirts for dogs and cats
Afterward, list each product with a relevant title and pricing information. Be transparent about the pricing strategies as positioned for premium, affordable, or mid-range.
Keep language simple that resonates with your target customer while crafting compelling descriptions and specifications of your t-shirt offerings or unique designs.
Ensure to accentuate the key features and fabrics used in the product descriptions. For specifications, summarize size options, material specifics, and available color variations.
Also, highlight the essence of what sets your t-shirts apart in the competitive market, whether it’s special t-shirt designs, eco-friendly materials, or a clear brand story.
Emphasize quality control measures, such as inspections or testing, that assure the durability and comfort of your products. Give clarity to potential customers and help in making informed decisions.
Refer below example written using Upmetrics’ AI writing assistant :
1. Classic Cotton Collection
Price: $20 per T-shirt
- Each T-shirt is meticulously crafted from premium, 100% organic cotton, ensuring a luxurious feel against the skin.
- These shirts boast supreme comfort, exceptional durability, and a versatile style that seamlessly transitions from casual outings to special occasions.
Specifications
- Sizes Available: S, M, L, XL
- Color Options: Various classic colors, including white, black, navy, and gray
- Special Features: Tagless design for added comfort, reinforced seams for enhanced durability
2. Personalized Graphic Tees
Price: $25 per T-shirt
- Made from soft cotton blends, these T-shirts are a perfect canvas for self-expression, allowing customers to wear their stories.
- Sizes Available: XS, S, M, L, XL
- Color Options: Diverse color palette for personalized designs
- Customization Features: Option to choose from curated designs or submit personal design ideas
- T-shirt printing method: High-quality digital printing for detailed and vibrant graphics
Lastly, detail any additional services like customization options, selling t-shirts online, or print-on-demand services if applicable. You can also offer details about return policies and warranties offered.
6. Outline a Sales and Marketing Plan
In this highly competitive t-shirt marketplace, being noticed is crucial, which is why you need a tangible sales and marketing plan to reach your target market.
Therefore, communicate the objectives of your sales and marketing strategies. It could be maximizing outreach, fostering engagement, and achieving sustained growth for your t-shirt company.
While writing the sales and marketing section, keep in mind to outline the below strategies to attract new customers and retain existing ones:
Unique Selling Proposition (USP)
Define your Unique Selling Proposition (USP) and these distinctive features place your t-shirts apart from competitors. It will create a powerful brand stand for your t-shirt company.
Pricing Strategy
Research and analyze the pricing strategies of top players in the industry and create a competitive yet profitable pricing strategy. Set value-based average price for a t-shirt. Besides, sell t-shirts by offering discounts.
- Marketing strategies
Develop a marketing approach that encloses online and offline marketing tactics. Consider using social media channels, influencer alliances, email marketing, brochures, print marketing, and Google Ads campaigns.
Sales strategies
Mention sales strategies that diversify t-shirt sales through a multi-channel approach(website, e-commerce platform, retail collaboration). Draw new customers through periodic promotional sales and referral incentives.
Customer retention
Mention how your t-shirt company will retain customers and build loyalty, such as with the help of loyalty programs for repeat purchases, personalized service, or special events
7. Introduce Your Team
A powerful management team is paramount to demonstrate your t-shirt business’s ability to flourish. Spotlight your key managers’ backgrounds, including skills and experiences that ascertain their capability to grow your t-shirt company.
Let’s have a look; an example of mentioning the management team using Upmetrics:
Consider incorporating the organizational chart (visually introducing the team structure and hierarchy) and compensation plan(including salaries, incentives, or employee benefits) in this section.
You can also present an advisory board by adding 2 -3 individuals who act like mentors to your business. They would help answer questions and guide you with strategic direction.
8. Outline Business Operations
Now, let’s emphasize the business operational plan, as detailed information on daily activities is essential for reaching business goals and fulfilling customer commitments.
Start with a quick introduction that outlines the pivotal role of daily operations. Then, give a meticulous summary of the day-to-day activities involved in driving the t-shirt business.
Wondering what to write in your t-shirt business’s operational plan? Well, here is a guideline:
Production process
Explain how these t-shirts are made, whether it is via in-house production or outsourcing to a third-party manufacturer. If you are designing t-shirts on your own, you can follow below 4 ways of printing t-shirts:
- Screen printing
- Heat transfer printing
- Direct-to-garment printing
- Embroidered printing
Supply chain management
Represent the supply chain procedures, from sourcing raw materials and manufacturing to distribution. Clarify how the supply chain supports product quality and fulfills customer demand.
Highlight the staffing structure and pinpoint their roles & responsibilities for seamless operations. Briefly draft the tasks assigned to each employee and state their contributions to daily functions.
Not only that, prepare a hiring plan if your team is lacking and want to increase the team’s size. You can also employ temporary workers, or even subcontract services for peak periods of activity.
If any third party is involved, you don’t need to hire staff for inventory management. For instance, with print-on-demand service, the printing process, packing operation, and order shipping activity can be carried out by your print-on-demand provider.
Equipment and Technology
Describe the equipment required and the technology used in daily operations. Your t-shirt business involves production facilities, specialized machinery, inventory control systems, or order processing software.
Take reference from the below example written with the help of Upmetrics:
- Production Facilities: [Your T-Shirt Business Name] takes pride in its purpose-built production facilities, meticulously designed to optimize the T-shirt manufacturing process. Dedicated to cutting, sewing, printing, and printing on demand to ensure an efficient and streamlined workflow.
- Specialized Machinery: Our arsenal includes state-of-the-art machinery, from advanced cutting machines to high-speed sewing units. Digital printers for intricate designs and precision-driven heat press equipment are the backbone of our graphic application processes.
- Technology for Design and Customization: Creativity takes center stage with the technology employed for T-shirt design and customization. Graphic design software, digital mockup tools, and innovative virtual try-on features empower customers to unleash their creativity and personalize their T-shirts effortlessly.
- Order Processing Software: This software is designed to manage customer orders with precision, featuring order tracking, automated invoicing, and integration capabilities to streamline the entire order fulfillment process.
Customer satisfaction
Highlight the steps for ensuring prompt and accurate order fulfillment, from order placement to shipping and delivery. If running an online store and selling t-shirts, specify some customer service protocols to address queries and manage returns or exchanges.
9. Prepare Financial Projections
Generally speaking, you need a well-structured and in-depth financial plan for a successful t-shirt business. This section involves strategic calculations that showcase your expenses and profit margins.
You can include the income statement, cash flow statement, and balance sheet for 3-5 years. You can estimate the break-even point and funding needs from these financial projections.
So, define all the major components explained below:
Income statement
It is most commonly known as a Profit and Loss statement, or P&L, describing the gross profitability of your t-shirt business by subtracting costs of goods sold from revenue.
This part is an overview of the revenues, costs, and expenses accumulated within a designated time frame.
- Initial investment for equipment
- Costs of raw materials and supplies
- The outlay for marketing, bills, rent, subscriptions, taxes, maintenance, personnel
- Working capital
- Print-on-demand costs (if applicable)
Cash flow statement
A cash flow statement helps you notice how much money you need to start or grow your business and avoid running out of cash. After launch, maintain this statement even for certain months before earning profits.
But sometimes, you get profits but still encounter financial issues that could lead to bankruptcy. Thus, you will require appropriate cash flow planning to avoid such cases.
Balance sheet
It is a financial aspect to display whether your t-shirt business has what it bears to pay and ultimately yield profit. Use this formula: total assets = total liabilities + total equity.
For instance,
- Assets would be your printed t-shirt business inventory, equipment, and investment cash.
- Liabilities would be taxes, subscriptions, eventual debts, and payments to suppliers.
Break-even analysis
It is a projection of the exact point at which your company will sell enough T-shirts to cover all its expenditures. From this threshold, you can expect to start making purely returns.
All the above financial aspects can help you identify the funding requirements and estimate the funding resources for your t-shirt company, including bank loans, SBA-guaranteed loans, angel investors, and personal savings.
However, figuring out all the financial statements from scratch can be a challenging task. But not to worry; here is an easy way.
Use Upmetrics’ financial forecasting tool to prepare all the financial aspects for initiating your own t-shirt business.
Well, having realistic financial projections at your hand can help you to reveal the financial feasibility and sustainability of your business.
T-Shirt Printing Industry Highlights 2024
Let’s go through some t-shirt printing industry trends and statistics:
- The sustainable fashion market is expected to grow to $9.81 billion in 2025 and $15.17 billion in 2030 at a CAGR of 9.1%.
- By 2027, the volume in the t-shirt market is projected to reach 1.0bn pieces units, and there will be a volume growth of 3.1% in 2024.
- The global custom t-shirt printing market size reached $5.09 billion in 2022 and is estimated to hit around $14.81 billion by 2032. It will grow at a CAGR of 11.27% during the forecast period of 2023-2032.
- In the US, online t-shirt business revenue share will overtake offline sales and will account for 50.7% of the market revenue in 2024.
- The volume of children’s t-shirts market sold is predicted to reach 0.5 billion pieces by 2027; an expected volume growth of 3.0% in 2024.
- As per Statista, the US market is currently experiencing a surge in demand for vintage-inspired graphic t-shirts for women and sustainable and ethically-made t-shirts for men.
- The digitally printed t-shirts segment is estimated to register the fastest CAGR of 12.0% from 2023 to 2030.
Download a T-shirt business plan template
Are you ready to start writing a t-shirt business plan? And want to get help with your business plan? Well, here you can download our free t-shirt business plan pdf and start writing.
This advanced investor-friendly template has been crafted with t-shirt businesses in mind, whether a physical or online store. With step-by-step instructions and examples, this template helps you draft your t-shirt business plan.
Import data into your editor and start your business plan writing.
The Quickest Way to turn a Business Idea into a Business Plan
Fill-in-the-blanks and automatic financials make it easy.
Start preparing your business plan with AI
Now, it’s time to craft a blueprint to turn your entrepreneurial vision into reality. Launch your t-shirt business with confidence and precision by leveraging the power of Upmetrics AI assistant .
Whether you are an experienced entrepreneur or a novice to the business world, our innovative tools and tailored business plan templates simplify your planning process and guide you through each crucial step.
Don’t wait; seize the opportunity to bring your unique t-shirt designs to the online marketplaces. Start preparing your printed t-shirt business plan with Upmetrics and set the stages for a successful t-shirt business journey.
Let’s pave the way to the fashion landscape!
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Frequently Asked Questions
How much does it cost to start a t-shirt business.
A fair estimation for a small-scale t-shirt business can start around $5,000, while larger-scale ventures may demand a more significant investment. It can vary widely depending on equipment costs, inventory, website development for online sales, marketing, and working capital.
Is a t-shirt business profitable?
A t-shirt business is one of the most profitable business ideas and it can be successful with the right business strategy and market positioning. The profitability of the t-shirt business depends on a well-executed business plan, high-quality designs, custom t-shirts, and effective marketing.
Do you need a business plan to sell t-shirts online?
Of course, you need a proper business plan for selling t-shirts online. A well-thought-out business plan helps you define your business goals, target audience, marketing plan, and financial projections.
What is the easiest way to create a t-shirt business plan?
The easiest way to create a tshirt business plan is to use effective business plan templates available online. Platforms like Upmetrics offer user-friendly templates that guide you through the important sections of the business plan and make the process seamless and accessible.
What to consider before starting a t-shirt business?
Consider the following factors before starting a t-shirt business:
- Niche and USPs
- Financial projections & funding
- Target audience
- Competitor analysis
About the Author
Vinay Kevadiya
Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more
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T-Shirt Business Plan Template
Written by Dave Lavinsky
T-Shirt Business Plan
You’ve come to the right place to create your T-shirt business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their t-shirt companies.
Below is a template to help you create each section of your T-shirt business plan.
Executive Summary
Business overview.
Comfy Style Tees is a startup T-shirt company located in Philadelphia, Pennsylvania. The company is founded by Scott Smith and Mike Anderson. Scott Smith is an established graphic artist who will be creating the designs for the company’s T-shirts. Mike Anderson is a graduate of Pennsylvania University with a Master’s degree in Marketing. Together, the pair is ready to open their own T-Shirt business, Comfy Style Tees. Scott has been creating unique graphic art for over a decade and has gained a substantial following as an artist on social media. Mike has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers who are interested in purchasing apparel featuring Scott’s artwork. The duo plans to hire a small team of professionals to manage the day-to-day complexities of running a retail business including accounting, customer service, sales, and inventory management.
Comfy Style Tees will offer comfortable T-shirts made from premium 100% cotton. Each T-shirt will feature artwork printed using a direct-to-garment (DTG) printing method that allows for Scott’s detailed and colorful designs to come to life. Comfy Style Tees will create and sell limited edition T-Shirts in small batches.
Product Offering
The following are the products that Comfy Style Tees will provide:
- Men’s T-shirts
- Women’s T-shirts
- Children’s T-shirts
- Toddler’s T-shirts
- Pet T-shirts for dogs and cats
Customer Focus
Comfy Style Tees will target people of all ages and genders who value wearing unique T-shirt designs that can’t be found off the rack. The company will target men, women, children, and people with dogs and cats. Comfy Style Tees will target fans of Scott’s artwork as well as individuals that are unfamiliar with it. No matter the customer, Comfy Style Tees will deliver the best communication, service, and high quality products.
Management Team
Comfy Style Tees will be owned and operated by Scott Smith and Mike Anderson. Scott Smith is an established graphic artist who will be creating the designs for the company’s T-shirts. Mike Anderson is a graduate of Pennsylvania University with a Master’s degree in Marketing.
Scott Smith has been creating unique graphic art for over a decade and has gained a substantial following as an artist on social media. Mike Anderson has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers who are interested in purchasing apparel featuring Scott’s artwork.
Success Factors
Comfy Style Tees will be able to achieve success by offering the following competitive advantages:
- The most flexibility in the customers’ shopping experience: customers can order online for delivery or in-store pickup, come into the physical store and shop, and return items through the mail or in-store no matter which method they purchased them through.
- All tees are carefully printed using the latest DTG printing machines and meticulously inspected to ensure quality.
- Comfy Style Tees doesn’t sell to other retailers or white label its products, so if a customer wants an authentic Comfy Styles Tees product, they know they will be able to get it exclusively from the shop or the online store.
Financial Highlights
Comfy Style Tees is seeking $120,000 in debt financing to launch its T-shirt business. The funding will be dedicated towards securing the retail space and purchasing DTG printing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll, rent, and marketing expenses. The breakout of the funding is below:
- Retail space build-out: $30,000
- DTG printing equipment, supplies, and materials: $30,000
- Three months of overhead expenses (payroll, rent, utilities): $40,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Comfy Style Tees.
Company Overview
Who is comfy style tees.
Comfy Style Tees is a newly established boutique T-shirt shop in Philadelphia, Pennsylvania. Comfy Style Tees will offer the most fun, unique, and stylish tees around. Comfy Style Tees will provide a wide range of sizes for adults, children, and pets. Customers can purchase the one-of-a-kind Scott Smith designs online or in-store. T-shirts are DTG printed in small batches and each unique design is offered for a limited time only, so customers who want a particular design will need to act fast before they are sold out.
Comfy Style Tees will be able to provide the best customer service through its friendly and knowledgeable in-store associates and its use of the latest AI technology for online support. The management team is composed of professionals who are highly qualified and experienced in customer service, marketing, and operations. This strong management team allows Comfy Style Tees to serve all customers with attention and care, removing all headaches from the shopping experience.
Comfy Style Tees History
Comfy Style Tees is owned and operated by Scott Smith and Mike Anderson. Scott has been creating unique graphic art for over a decade and has gained a substantial following as an artist on social media. Mike has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers.
Since incorporation, Comfy Style Tees has achieved the following milestones:
- Registered Comfy Style Tees, LLC to transact business in the state of Pennsylvania.
- Has a contract in place to lease the retail space.
- Reached out to numerous potential suppliers to get samples and quotes for their wholesale garments that will become the company’s DTG printed T-shirts.
- Began recruiting a staff of accountants, marketers, and sales associates to work at Comfy Style Tees.
Comfy Style Tees Services
Industry analysis.
The global T-shirt market size was an estimated $206B in 2018 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.0% by 2027. In the United States, the T-shirt market reached an estimated $43.47B in 2022 and is expected to grow at a CAGR of 3.9% by 2026. The market for T-shirts can be segmented by materials and printing techniques. Most T-shirts that sell well are made from cotton, polyester, linen, rayon, lycra, or a blend of these fabrics. Two of the most popular printing techniques are screen-printing (estimated revenue share of 56% in 2021) and digital printing, which is expected to grow by 10.9% by 2030.
Over the years, the T-shirt industry has evolved from practical, plain white tees to designer labels, custom designs, and graphic prints. The market outlook for the T-shirt industry is positive with increased ecommerce and more people looking for unique styles. Although online shopping is increasing, more revenue is still currently being generated through physical retail. The top five countries generating the most revenue from T-shirt sales are China, the United States, India, Germany, and the United Kingdom.
Customer Analysis
Demographic profile of target market.
Comfy Style Tees will target people of all ages and genders who value wearing unique T-shirt designs that can’t be found off the rack. The company will target men, women, children, and people with dogs and cats.
The precise demographics for Philadelphia, Pennsylvania are:
Customer Segmentation
Comfy Style Tees will primarily target the following customer profiles:
- Young adults (ages 18-29)
- Men and women (ages 30-45)
- Men and women (ages 46+)
- Children (ages 4-17)
- Toddlers (ages 0-3)
- People looking for stylish T-shirts for their dogs and cats
Competitive Analysis
Direct and indirect competitors.
Comfy Style Tees will face competition from other companies with similar business profiles. A description of each competitor company is below.
Simple Tee, LLC
Simple Tee, LLC provides comfortable T-shirts at affordable prices. Located in Philadelphia, the Simple Tee retail shop is able to provide a wide selection of custom tees for its customers. The company makes form-fitting T-shirts for men, women, and children using 100% premium cotton and cotton blends. Simple Tee, LLC uses screen-printing technology to produce quality T-shirts to suit any style.
Simple Tee, LLC’s promise is to deliver top notch customer service, quality products, and great prices. The company’s team checks each T-shirt to ensure the highest quality before placing it on the sales floor. Simple Tee also sells its tees online and wholesale to other retailers.
Cool Trends T-Shirts
Cool Trends T-Shirts is an Philadelphia, Pennsylvania-based apparel company that provides outstanding customer service and fun art prints on all of its T-shirts. Cool Trends T-Shirts uses screen-printing and digital printing technology to make its one-of-a-kind tees. The company makes tees for young adults, children, and toddlers. You can buy Cool Trends T-Shirts through its online Shopify store. Cool Trends T-Shirts does not have a physical store, which saves the company money. These savings are passed on to the customers in the form of deep discounts on all Cool Trends products.
Dezyned T-Shirt Co.
Dezyned T-Shirt Co. is a trusted Philadelphia T-shirt company that provides superior service to customers at all three of its retail locations in Pennsylvania. The company makes its own DTG printed tees for the whole family. Dezyned T-Shirt Co. is able to provide unique tees designed by its founder and artist in residence, Alice Johnson. The company’s tees are priced in the high-end because they are made from premium cotton and printed in small batches, with Alice’s unique designs feature on each one.
Competitive Advantage
Comfy Style Tees will be able to offer the following advantages over their competition:
Marketing Plan
Brand & value proposition.
Comfy Style Tees will offer the unique value proposition to its clientele:
- All tees are made from 100% premium cotton, carefully printed using the latest DTG printing machines, and meticulously inspected to ensure quality.
- Comfy Style Tees offers unique pieces that can’t be found anywhere else.
Promotions Strategy
The promotions strategy for Comfy Style Tees is as follows:
Social Media/Referrals
Scott Smith has built up an extensive social media following of fans that love his artwork. Once Scott advised them he is going to be creating his own T-shirt business, many have signed up to receive updates on the new line and have opted to refer a friend for a promotional discount. As more friends are referred, the potential customer base continues to grow.
Print Advertising
Comfy Style Tees will invest in professionally designed print ads to display in magazines, flyers, and direct mailers.
Website/SEO Marketing
Comfy Style Tees will use an online platform like Shopify for its website and ecommerce store. The website will be well organized, informative, and list all the products available. As marketing director, Mike Anderson will also manage Comfy Style Tees’s website presence with SEO marketing tactics so that when someone types in the search engine “unique T-shirts in Philadelphia” or “T-shirt store near me”, Comfy Style Tees will be listed at the top of the search results.
The pricing of Comfy Style Tees will be competitive to premium, so customers feel they receive value when purchasing the high quality T-shirts.
Operations Plan
The following will be the operations plan for Comfy Style Tees.
Operation Functions:
- Scott Smith will be the Owner and Designer. He will oversee the design and printing process and manage all supplier relations. Scott has spent the past year recruiting the following staff:
- Mike Anderson – Marketing Director who will provide all marketing and sales initiatives for the company including managing the website, social media, and online marketing.
- Kate Johnson – Bookkeeper who will provide all budgeting, accounting, tax payments, and monthly financial reporting.
- Sam Lee – Lead Sales Manager who will manage all sales associates activities and schedules as well as oversee the day-to-day operations of the sales floor.
Milestones:
Comfy Style Tees will have the following milestones complete in the next six months.
9/1/2022 – Finalize contract to lease the retail space.
9/15/2022 – Finalize personnel and staff employment contracts for the management team.
10/1/2022 – Finalize contracts for suppliers.
10/15/2022 – Begin the marketing campaign.
10/22/2022 – Begin printing the first limited edition batch of tees.
11/1/2022 – Comfy Style Tees opens its store for business.
Comfy Style Tees will be owned and operated by Scott Smith and Mike Anderson. Scott Smith is a graphic artist who will be creating the designs for the company’s T-shirts. Mike Anderson is a graduate of Pennsylvania University with a Master’s degree in Marketing.
Scott Smith has been creating unique graphic artwork for over a decade and has gained a substantial following on social media. Mike Anderson has been a marketing director for another T-shirt business for over five years. He is confident that his marketing and sales skills will allow the company to quickly gain new customers who are interested in purchasing apparel featuring Scott’s artwork.
Financial Plan
Key revenue & costs.
The revenue drivers for Comfy Style Tees are the fees the company will charge customers for the T-shirts. The price range for Comfy Style Tees is $35-$375.
The cost drivers will be the payroll cost, DTG printing cost, and the cost of the T-shirts themselves. Other expenses will be rent, utilities, supplies, and marketing materials.
Funding Requirements and Use of Funds
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Average number of T-shirts sold per month: 750
- Average revenue per month: $10,000
- Retail space lease per year: $60,000
Financial Projections
Income statement, balance sheet, cash flow statement, t-shirt business plan faqs, what is a t-shirt business plan.
A t-shirt business plan is a plan to start and/or grow your t-shirt business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your t-shirt business plan using our T-Shirt Business Plan Template here .
What are the Main Types of T-Shirt Businesses?
There are a number of different kinds of t-shirt businesses, some examples include: Women’s T-Shirt Business, Men’s T-Shirt Business, Unisex T-Shirt Business, and Children’s T-Shirt Business.
How Do You Get Funding for Your T-Shirt Business Plan?
T-Shirt businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a T-Shirt Business?
Starting a T-shirt business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A T-Shirt Business Plan - The first step in starting a business is to create a detailed T-shirt business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your T-shirt business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your T-shirt business is in compliance with local laws.
3. Register Your T-Shirt Business - Once you have chosen a legal structure, the next step is to register your T-shirt business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your T-shirt business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary T-Shirt Equipment & Supplies - In order to start your T-shirt business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your T-shirt business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful T-shirt business:
- How to Start a T-Shirt Business
Where Can I Get a T-Shirt Business Plan PDF?
You can download our free t-shirt business plan template PDF here . This is a sample t-shirt business plan template you can use in PDF format.
Other Helpful Business Plan Templates
Ecommerce Business Plan Template Clothing Store Business Plan Template Retail Business Plan Template
T-Shirt Business Plan Template
If you want to start a T-Shirt company or expand your current T-Shirt business, you need a business plan.
The following T-Shirt business plan template gives you the key elements to include in a winning T-Shirt company business plan.
You can download our T-Shirt business plan template (including a full, customizable financial model) to your computer here.
T-Shirt Business Plan Example
I. executive summary, business overview.
[Company Name] is a start-up T-shirt company that sells cool, trendy and artsy t-shirts for men and women, as well as children. [Company Name] provides a variety of shirts styles and designs, each made to order. They can also make any item with custom artwork provided by the client.
Products Served
Below is [Company Name]’s initial product list:
- Kids t-shirts
- Women’s t-shirts
- Men’s t-shirts
Customer Focus
[Company Name] will primarily serve the residents who live within a 10 mile radius of our location and many others through our website and via other online retailers. The demographics of local customers are as follows:
- 65,800 residents
- 3,000 workers (who do not live the neighborhood)
- Average income of $56,500
- 33% married
- 31.5% in Mgt./Professional occupations
- Median age: 32 years
Management Team
[Company Name] is led by [Founder’s Name] who has been in the clothing business for 10 years. He was director of operations at a well-known clothing company in [location]. As such [Founder] has an in-depth knowledge of the business including:
- Management and operations
- Clothing design basics
- T-shirt marketing
- Hiring and training workers
[Founder] graduated with a degree in business management at [University Name] and also took courses in fashion design at [School Name].
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- There is currently no clothing brand devoted to local manufacturing in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched, both from customers and from suppliers.
- The T-shirt business is a proven business and has succeeded in communities throughout the United States.
- Market trends such as the growth of the graphic t-shirt market support our business opportunity.
Financial Highlights
[Company Name] is seeking a total funding of $120,000 to launch its store.
Specifically, these funds will be used as follows:
- Office/Workspace Design & Build-out: $55,000
- Equipment: $35,000
- Working capital: $30,000 to pay for supplies, marketing salaries and lease costs until [Company Name] reaches break-even.
Top line projections over the next three years are as follows:
II. Company Overview
Who is [company name].
The company takes pride in their unique designs and good quality materials that are all locally sourced, supporting other small businesses. In every collection, the company collaborates with local artists as well, to give them a medium to showcase their art.
The company’s tagline, “art through fashion” is the company’s mission.
[Company Name]’s History
[Founder’s Name] began planning and conceptualizing [Company Name] in [year] which then became a registered business on [Month, Year]. [Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the most desirable location for its physical store.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website located at www…
- Determined the list of suppliers for t-shirts, fabrics, etc
- Determined equipment and inventory requirements
- Identified local artists who are willing to collaborate with the designs
[Company Name]’s Products/Services
Iii. industry analysis.
Over the past five years, the T-Shirt industry surged, bolstered by a greater number of broadband connections and rising per capita disposable income levels. Operators also benefited from the growing popularity of e-commerce, as more consumers turned to e-tailers due to their added convenience and relative accessibility compared with traditional brick-and-mortar retailers. Moreover, industry operators have benefited from a rise in the number of mobile internet connections, which increased consumers’ ability to find and purchase industry goods on-the-go from their smartphones. Due to these positive drivers, industry revenue will continue to grow.
As the retail space has become more saturated with entrants, the operating environment has become more competitive, and operators have attempted to undercut one another on price and product quality. Offering amenities such as free shipping and competent customer service associates has become more and more important for industry players to remain attractive in this competitive space.
Further, retail behemoths are able to exert strong negotiating and buying power over upstream wholesalers and manufacturers, enabling them to procure items at a lower price than smaller retailers. This buying power lets these retailers pass cost savings on to the consumer, and these competitive prices keep them attractive.
In recent years, there has also been a growing industry trend toward using a social-commerce business model, which encourages the integration of social media. This new type of open-sourced business model alleviates the risk associated with product development because each shirt produced already has inherent demand.
IV. Customer Analysis
Demographic profile of target market.
[Company Name] will serve the residents of [company location] and the immediately surrounding areas.
The area residents we serve are affluent and are expected to spend more on clothing items than the national averages.
Customer Segmentation
We will primarily target the following three customer segments:
- Fashionistas: The store will attract people who appreciate fashion. The clothes it offers are incredibly unique, but also comfortable everyday wear
- Millennials: Our modern graphic art shirts are expected to be popular among the younger demographic. With its artistic designs, it will capture the interest of the younger generation.
- Tourists: Tourists visiting the area will be interested in locally made clothes. [Company Name] will become a tourist destination due to its unique t-shirt designs that no one can find anywhere else.
V. Competitive Analysis
Direct & indirect competitors.
Press-on Tees Press-on Tees operates an online service that connects millions of buyers and sellers of print-on-demand products. If you’ve dreamed up a catchy slogan or an arresting image, the company’s flagship website will print it for you on a T-shirt, hat, mug, poster, or other product; post it on cafepress.com for sale; and then ship it off and collect payments, keeping a nominal base fee for itself. The company boasts more than 19 million members across all of its properties. Founded in 1999, Press-on Tees went public in 2012.
Bubble Tees Bubble Tees operates as an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers in Australia, the United States, the United Kingdom, and internationally. It provides an Internet based marketplace platform and associated logistics services to facilitate the sale of goods from artists to those who want to purchase goods bearing the artists’ designs. The company enables 600,000 independent artists to sell their designs, such as apparel, stationery, housewares, bags, wall art, etc. It offers its services through its Website and three foreign language sites. The company was founded in 2006.
T-Shirt Republic Founded in 2012, T-Shirt Republic is an ecommerce platform that connects independent artists with their fans and allows them to sell their art on t-shirts, apparel, and accessories. Artists simply upload their design to the site, and T-Shirt Republic fulfills all orders.
Artists may join, upload, and sell designs without a charge from the platform. T-Shirt Republic pays commission on each sale. In addition, the site encourages both artists and non-artists to create affiliate pages, where they maintain a storefront for their and/or others’ designs. This business model appears to take advantage of each storefront’s marketing capability to help spread awareness, in a social commerce way. Affiliates also earn a commission from each sale.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Locally-Made t-shirts: [Company Name] will work with the best local suppliers and artists for its items, ensuring that 90% of items will come from within a 100 mile radius of the store. Local residents appreciate support for local businesses and tourists appreciate that they will find items that they cannot find where they are from.
- Management: Our management team has years of business experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for [x] years, [Founder’s Name] knows all of the local leaders and newspapers, as well as furniture suppliers. As such, it will be relatively easy for us to build branding and awareness of our store and to establish a product line.
VI. Marketing Plan
You can download our T-Shirt business plan template (including a full, customizable financial model) to your computer here.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offering high-quality, locally-made clothing items
- Telling the “stories” of artists within the store
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals living within a 10-mile radius of its store. The Company’s promotions strategy to reach these individuals includes:
Direct Mail [Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will offer discounts and/or provide other inducements for people to visit the store.
Public Relations We will contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].
Advertising [Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.
Pre-Opening Events Before opening the store, [Company Name] will organize pre-opening events designed for local merchants and press contacts to create buzz and awareness for [Company Name].
Online Marketing [Company Name] will maintain a website and create an online shop with the list and pictures of products available for sale. It will be active in social media platforms and send out a weekly newsletter to provide its followers an update on on-going promotions and discounts.
VII. Operations Plan
Functional roles.
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
Service Functions
- Sales and customer service
- Janitor/maintenance personnel to keep the store clean
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing suppliers and managing supplier relations
- Sourcing featured designers and providing collateral for their displays
- Hiring and training staff
VIII. Management Team
Management team members.
[Company Name] is led by [Founder’s Name] who has been in the clothing business for 10 years. While [Founder] has never run a business himself, he was director of operations at a renowned clothing brand company in [location]. As such [Founder] has an in-depth knowledge of the business including:
[Founder] graduated with a degree in Business Management at [University Name] and took courses in fashion design at [School Name].
Hiring Plan
[Founder] will serve as the store manager. In order to launch the store, we need to hire the following personnel:
- Sales manager (requires retail experience in the clothing industry)
- Sales professionals (3 to start)
- Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)
IX. Financial Plan
Revenue and cost drivers.
[Company Name]’s revenues will come from the sale of t-shirts and other clothing items.
The major costs for the company will be the cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $120,000 to launch its store. The capital will be used for funding capital expenditures, marketing expenses and working capital.
Key Assumptions
5 Year Annual Income Statement
5 Year Annual Balance Sheet
5 Year Annual Cash Flow Statement
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T-Shirt Business Plan Template
Written by Dave Lavinsky
T-Shirt Business Plan
Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their t-shirt businesses.
Get our t-shirt business plan template and step-by-step instructions below to quickly and easily create your own t-shirt business plan today.
Download our Ultimate T-Shirt Business Plan Template here >
What is a T-Shirt Business Plan?
A business plan provides a snapshot of your t-shirt business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes research into the t-shirt industry to support your plans.
Why Do You Need a Business Plan for a T-Shirt Company?
If you’re looking to start a t-shirt business or grow your existing t-shirt business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your t-shirt business in order to improve your chances of success. Your t-shirt business plan is a living document that should be updated annually as your company grows and changes.
How to Write a T-Shirt Business Plan
Executive summary.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of t-shirt business you are operating and the status; for example, are you a startup or do you have a t-shirt business that you would like to grow.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the t-shirt business industry. Discuss the type of t-shirt business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
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Company Overview
In your company analysis, you will detail the type of t-shirt business you are operating.
For example, you might operate one of the following types:
- Women’s T-Shirt Business: this type of t-shirt business offers a wider variety of t-shirts styles, such as cap sleeve, thin strap, tanks, etc.
- Men’s T-Shirt Business: this type focuses on men’s/male t-shirts
- Unisex T-Shirt Business: creates neutral t-shirts
- Children’s T-Shirt Business: this type of t-shirt business targets children with design and sizing
In addition to explaining the type of t-shirt business you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
While this may seem unnecessary, it serves multiple purposes.
First, researching the t-shirt business industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards particular designs or themes for t-shirts, it would be helpful to ensure your plan calls for the ability to quickly add or alter inventory.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
In your industry analysis, you need to provide an overview of the t-shirt business.
The following questions should be answered in the industry analysis section of your t-shirt business plan:
- How big is the t-shirt business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your t-shirt business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section of your t-shirt business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of t-shirt business you operate. Clearly baby boomers would want different product options, and would respond to different marketing promotions than teens.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most t-shirt businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other t-shirt businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes other types of shirts and apparel items.
With regards to direct competition, you want to detail the other t-shirt businesses with which you compete. These are other types of t-shirts your target customers purchase.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior t-shirts?
- Will you provide t-shirt options that your competitors don’t offer?
- Will you provide better customer service?
- Will you offer better pricing?
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a t-shirt business plan, your marketing plan should include the following:
Product: in the product section you should reiterate the type of t-shirt business that you documented in your Company Analysis. Then, detail the specific products you will be offering.
Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products you offer and their prices.
Place: Place refers to the location of your t-shirt business. Document the location(s) in which customers can purchase from you. Will you have a storefront? A website? Operate kiosks or locations at events? Will you sell through other retailers or websites? Document your distribution strategy here.
Promotions: the final part of your t-shirt business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Social media marketing
- Advertising in local papers and magazines
- Reaching out to local bloggers and websites
- Banner ads at local venues
Think about ways you will outperform your competition and document them in this section of your plan.
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Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your t-shirt business such as serving customers, procuring supplies, manufacturing shirts, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
Management Team
To demonstrate your t-shirt business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the t-shirt business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in t-shirt businesses and/or successfully running retail and small businesses.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement: an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets: While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $25,000 on building out your t-shirt business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say an entertainment company approached you with a massive $100,000 branded t-shirt contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for manufacturing, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a t-shirt business:
- Office location build-out
- Cost of equipment
- Cost of maintaining an adequate t-shirt inventory
- Cost maintaining an adequate amount of supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease. Putting together a business plan for your t-shirt business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the t-shirt business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful t-shirt business.
How Do I Download a Free T-Shirt Business Plan PDF?
You can download our t-shirt business plan PDF template and use our sample t-shirt business plan to write your own business plan. This is a business plan template you can use in PDF format to sell t-shirts online or in a brick-and-mortar t-shirt store. If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate T-shirt Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.
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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
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Custom Printed T-Shirts Business Plan
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Your T-Shirt!
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
Imagine the ability to create a totally custom shirt. You choose the material and style of the shirt, and then the image or graphic you want on the front and/or back. This is the ultimate form of expression. There are no limits to what you can communicate. Some people might show their fanaticism for a particular sports team, others a musician. Or you might have a social message or cause on your shirt. Whatever you may decide, you can print any image on your shirt.
Your T-Shirt! is an exciting new business that allows people to custom design a shirt (specifically the design on the front or back) any way that they would like. By intelligently leveraging cutting edge technology, Your T-Shirt! will harness the power of computer sublimation to allow custom shirt printing in production runs as small as one unit.
Your T-Shirt! has segmented the market into two groups, organized by the type of product that they purchase. The first group is customers that desire an already created graphic image to be placed on the their shirt. The second group are those that prefer custom artwork to be placed on their shirt. Your T-Shirt! has decided to divide the market by the products that they purchase because it offers an intuitive, easy method of targeting the two different groups. An additional reason for segmenting the market based on the two products is because the demographics for the buyers of the two products are distinct enough to group them separately.
Competition
Your T-Shirt! has identified three competitors, two are local companies, the third is an Internet-based shirt designer.
- T-shirt World — This local competitor specializes in silk-screening. 70% of their business is silk-screening with the remaining 30% sublimation. They require a minimum order of 10 with a 2-3 week lead time. This company only uses pre-existing designs for their silk-screening and for sublimations you must use their artist.
- Shirt Shack — This local retailer is geared toward organizations or teams with production runs of 20 or more. They do fairly good work but are rigid regarding custom work.
- Design House — This is an Internet-based retailer that primarily offers computer sublimations. Design House has a catalog of approximately 200 images for the customer to choose from. They do allow customers to use their own graphic. The quality of the sublimations is mediocre at best because they can only use off the shelf technology.
Our mission is to offer the finest in custom shirt sublimation production. We will offer customers the best product at the best price. Customer’s expectations will always be exceeded.
Expectations
We are going to grow our business to start making a modest profit in year 3. Our name will become synonymous with high quality fashion forward T-Shirts. Everyone will come to us when they want to wear something custom made. We will be able to pay off friends and family by year 5.
Financial Highlights by Year
Financing needed.
We will be getting a total of $84,500. David will be contributing $19,500 of his own money. We have a loan of $65,000 which will be fully paid by year 5. We will make a small profit starting year 3 and will consider taking on more staff by year 4 or 5 after we pay off the loan completely.
Problem & Solution
Problem worth solving, our solution, target market, market size & segments.
Market Segmentation
Your T-Shirt! has segmented their market into two distinct groups. As mentioned previously, the two segments are grouped by the type of product they chose. Although Your T-Shirt! is dividing the market by product type, it is effectively dividing the market by age as well since the customers who purchase the custom artwork shirts tend to be older than the group preferring the ready-made graphics. While this is not a hard and fast rule, it is a fairly accurate generalization.
Graphics — This is group purchases a shirt and has an existing graphic placed on the shirt. This is the less expensive option and lends itself to low production numbers, as low as one, since there is not the inherent expense of artwork creation.
- 69% are students
- Median individual income is $26,000
- Go out to eat 3.4 times a week
- Listen to 3.6 hours of music a week
Artwork — This segment prefers having custom artwork created and placed on their shirt. They generally have the image or style in mind and will direct the artist to create it. Occassionally when the customer will not have an exact image in mind but will rely on the artist’s skills to help shape the work. Some of these customers will use Your T-Shirt!’s partner artist, others will have a friend or other service provider develop the art.
- Median individual income is $42,000
- Go out to eat 2.7 times a week
- Listen to 3.3 hours of music a week
- 18% are using the shirt as a form of communication for a cause or a message
4.2 Target Market Segment Strategy
Your T-Shirt! has chosen these two market segments because their demographics (reasonably young) have the highest likelihood of purchasing a custom shirt. Both of these segments are reasonably young. This is important because most of Your T-Shirt!’s products are T-shirts and younger people tend to wear them frequently.
Music is also an important interest for the target markets since both segments listen to and watch more than average amount of music. T-shirts are particularly popular at music events. This phenomenon may be explained in part by the expressive nature of both music and T-shirt graphics. Your T-Shirt! will provide a form of expression, allowing each customer to choose what aesthetic or idea they want to communicate.
Lastly, the business will be located in Seattle which has a young, hip scene. There are many music and other venues that cater to Your T-Shirt!’s demographic and these will be useful in developing awareness of Your T-Shirt!
Current Alternatives
Our Advantages
Your T-Shirt! has two advantages that will use to their advantage to achieve market penetration.
- Large catalog of graphics — Your T-Shirt! is developing several strategic relationships with existing graphics companies that have an extensive images catalogs. It would be difficult and expensive for Your T-Shirt! to create their own library of graphics but by developing relationships with companies who own existing libraries, Your T-Shirt! is able to offer its customers an expansive array of imagery. Your T-Shirt! pays a royalty for use of these graphics.
- Quality of the sublimation — Due to its networking contacts at Hewlett-Packard, and the use of prototype technology, Your T-Shirt! will be able to produce sublimations of much higher quality than any of their competitors. This gives Your T-Shirt! a fantastic competitive edge. At some point within the next two years this technology may be available to the public, however because of the close contacts Mr. Inkler shares with HP, Your T-Shirt! will always have cutting edge technology available, well in advance of any public release.
Keys to Success
Our keys to success is:
- Leverage cutting edge technology as a competitive advantage.
- Exceed customer expectations by offering high quality products at reasonable prices with quick turnaround times.
- Employ careful financial and accounting analysis to ensure efficiency and proper controls.
Marketing & Sales
Marketing plan.
The marketing campaign will seek to increase visibility for Your T-Shirt!, emphasizing the ability of the customer to completely customize their design. Your T-Shirt! will use several different venues to communicate this message.
- Advertising — Your T-Shirt! will run ads in several teen/young adult magazines whose readership demographics are similar to Your T-Shirt!’s.
- Youth events — Many different events will be sponsored as a means of increasing visibility. These include but are not limited to music festivals and sporting events along with the new genre of extreme sporting events.
- Student groups — Your T-Shirt! will attempt to gain awareness of the different student groups who actively purchase shirts for their members. Awareness will be achieved through a combination of sponsorship of student organization events as well as advertisements in magazines that specifically target this demographic.
The sales strategy will emphasize the fact that ordering a shirt from Your T-Shirt! is a very easy and pleasing experience. The sales effort will work on the continual development of the website, the main tool used for ordering. It will be quite important to have a friendly, easy to use web interface for two main reasons. One, there are so many choices available that it could become daunting to the customer. The second reason is that a large portion of sales will be placed on the website. It is imperative to make it so easy that people don’t stop part way through ordering due to cumbersome or difficult instructions. The website embraces the philosophy of making the experience so easy and pleasing that the customer comes back to buy more.
Your T-Shirt! will also rely on three other factors to help boost sales. The first is exemplary customer service. Having excellent service will provide the customer with the feeling that the business is looking out for the customer’s interest. Second, when a customer places an order, they will probably be excited to see the finished product, so Your T-Shirt! will ensure the fastest turnaround time possible. Lastly, sales will be boosted by offering customers a high quality product. We will use high grade cotton shirts and state-of-the-art sublimation printing materials.
Locations & Facilities
We are going to have a small store front with one computer where our customers can put in their own designs. We will have a counter and cash register for those who would like to have help. It will be set up somewhat like a fedex kiosk, most of the work will be done online and offsite at HP.
Your T-Shirt! will offer customers a variety of options for creating their own custom shirts. The majority of orders will be for t-shirts, however other style shirts will be available. Your T-Shirt! has developed a strategic relationship with Hewlett-Packard (HP) printer division. We will use their printer sublimation technology that allows a computer image to be applied to a shirt in a high quality, high resolution, economically feasible manner. This technology creates an image durable enough to withstand thousands of washings. Its photo-like quality, due to significantly higher printer resolution than anything on the market, will show off any image. The technology is cost effective enough to offer customers the ability to order just one unit. Most other competitors’ costs prohibit printing custom shirts in one-off production runs. Finally, the customer may choose from an extensive library of existing images, supply their own image, or have an artist create an image for them
Equipment & Tools
The store will have a computer kiosk for customers to access the graphics catalog. The customer can then place the order online or take the information to an employee to place the order.
Milestones & Metrics
Milestones table, key metrics.
Our Key Metrics are:
- # of page views and shares on Facebook
- # of tweets and retweets on Twitter
- # of Customers in a month
- # of higher priced custom t shirts
- # of searches for our websites
- # of customers calling for more info
Ownership & Structure
Your T-Shirt! is a start-up organization. It has been formed as a Washington registered L.L.C. by David Inkler. The L.L.C. formation was chosen as a way to minimize personal liability issues for the owner and avoiding the double taxation found in traditional corporations.
Management Team
Your T-Shirt! will be led by David Inkler and is not his first t-shirt venture. While in college David produced and sold tie-dye shirts. This early business experience gave David valuable insight into the market, the products, and the customer’s needs and desires. Since leaving college David worked in Hewlett-Packard’s printer division, and it was this experience that provided useful business and professional contacts within the shirt sublimation technology industry that he is currently leveraging. After three years in marketing at HP, David went back to school to earn his MBA. David will use his educational skills, his technological business contacts, and his previous shirt industry experience to make Your T-Shirt! profitable. Sales forecasts indicate that Your T-Shirt! will achieve sterling sales for years two and three respectively. Net profit will correspondingly be untarnished.
Personnel Table
Financial plan investor-ready personnel plan .">, key assumptions.
Our key assumptions are:
- There are people with disposable income that will be interested in buying custom t-shirts
- People like wearing shirts that say something as a fashion and personal statement.
- Our customers will find us on our website
- Our customers will appreciate the convenience of getting t-shirts shipped to their house and will be willing to pay for it.
Revenue by Month
Expenses by month, net profit (or loss) by year, use of funds.
Your T-Shirt! will incur the following expenses for start up:
- Two Apple Macintosh computers — These will be high end models and utilize the following software: Microsoft Office, Adobe Photoshop and Illustrator, Macromedia FreeHand, and QuickBooks Pro.
- HP XX Laser Printer — This is a prototype printer not available to the public.
- In-store computer kiosk — This allows customers to view options for shirts and existing imagery.
- Website — This will be used for information disbursement as well as ordering.
- Shelving display unit — To display assorted graphic images on paper for easier viewing.
- Broadband Internet connection.
- Two desk/chair/office supplies sets.
- Small shirt inventory — Inventory will be kept small to lower overhead. This will be accomplished by using a shirt vendor who is one shipping day away, effectively using a just-in-time (JIT) system for managing inventory.
- Heat application unit — To make the sublimation transfer.
Start-up Expenses
Legal $1,200
Stationery etc. $200
Computer equipment $6,200
Office furniture $1,000
Sublimation heat transfer unit $2,000
Wesite development $6,500
TOTAL START-UP EXPENSES $17,100
Sources of Funds
We will need a total of $84,500. David will give 19,500 of his own money. He secured a loan for $65,000 for the startup expenses. Since we are able to break even by the second year, and make profit on the third year. He will start hiring more staff to up the sales by year 5 after he pays off the loan.
Projected Profit & Loss
Projected balance sheet, projected cash flow statement.
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