A fashion truck company is a company that operates mobile boutiques and fashion trucks. They travel from one location to another, selling to customers along their routes or in a location they choose to park for some time before moving on.
An ideal fashion truck has a fitting room and some are even equipped with air conditioning. A normal boutique can use a fashion truck to reinvigorate flagging sales. This will also give your long-established boutique a contemporary edge it didn’t have before.
Available data shows that there are about 500 fashion trucks — clothing boutiques on wheels — in the US, and the industry is still growing. The global fast fashion market reached a value of nearly $68,634.9 million in 2020, having decreased at a compound annual growth rate (CAGR) of -3.0 percent since 2015. The market is expected to grow from $68,634.9 million in 2020 to $163,468.5 million in 2025 at a rate of 19.0 percent.
Steps on How to Write a Fashion Truck Business Plan
Table of Content
We Move® Fashion Truck, Inc. is a registered and licensed fashion truck company that will be based in Los Angeles, California. We Move® Fashion Truck, Inc. will be at the forefront of displaying and selling a wide variety of clothes and fashion accessories all across major cities in the United States.
We Move® Fashion Truck, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and Canada. We will ensure that we abide by the rules and regulations guiding the industry. Lizzy Winston is the founder and CEO of We Move® Fashion Truck, Inc.
a. Our Products and Services
We Move® Fashion Truck, Inc. will be involved in the sale of a wide range of authentic female, male, and children’s clothing, footwear, and fashion accessories from different brands in the United States of America and other leading fashion labels from across the globe.
b. Nature of the Business
Our fashion truck company will operate the business-to-consumer model.
c. The Industry
We Move® Fashion Truck, Inc. will operate in the fashion industry.
d. Mission Statement
Our mission is to be at the forefront of our industry and to make sure we build a successful fashion truck company that will operate in the United States of America and Canada.
e. Vision Statement
Our vision of to be listed among the top ten fashion truck companies in North America.
f. Our Tagline (Slogan)
We Move® Fashion Truck, Inc. – Your Preferred Boutique on Wheel!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
We Move® Fashion Truck, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Accountant (Cashier)
- Sales Boys and Sales Girls
- Truck Drivers
i. Ownership/Shareholder Structure and Board Members
- Lizzy Winston (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
- Dennis Winston (Board Member) 18 Percent Shares
- Rich Mendy (Board Member) 10 Percent Shares
- Abel Domino (Board Member) 10 Percent Shares
- Dora Norman (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a fashion truck company
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Large storage facility.
- Excellent customer testimonials.
- Reliable and efficient trucks
- Access to supplies from leading fashion labels and brands
- Financial Constraints
- A new business that will be competing with well-established fashion truck companies and also major boutiques
- Inability to retain our highly experienced and qualified employees longer than we want
- Online market, new services, new technology, and of course the opening of new markets
- The flexibility of movement from one location to another.
i. How Big is the Industry?
The fashion industry that the fashion truck business is part of is very big in the United States of America. According to Fashion United, the industry has a labor force of 3,384.1 million. Its value is equivalent to 3 trillion dollars. That means, it corresponds to 2% of the world’s Gross Domestic Product (GDP).
ii. Is the Industry Growing or Declining?
The fashion industry is a growing industry. The market is expected to grow from $68,634.9 million in 2020 to $163,468.5 million in 2025 at a rate of 19.0%.
iii. What are the Future Trends in the Industry
The fashion industry is changing, and players in the industry are improvising. No doubt, technology (software apps, dashboard cameras, and electric trucking) and ever-changing fashion trends will change the landscape of the fashion industry going forward.
iv. Are There Existing Niches in the Industry? If YES, List them
No, there are no existing niches when it comes to fashion truck companies, but a fashion truck company may decide to specialize in the sale of different types and styles of clothes and other fashion accessories.
v. Can You Sell a Franchise of your Business in the Future?
We Move® Fashion Truck, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving fashion markets in the United States of America.
- The arrival of new fashion truck companies within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses
- Economic uncertainty
- Liability problems (Financing of trucks and vans that are bound to depreciate)
- The transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new business.
i. Who are the Major Competitors?
- Le Fashion Truck – Los Angeles
- Street Boutique
- TopShelf – San Francisco
- Therapie Boutique – San Diego
- Lodekka – Portland
- The Vintage Mobile – Dallas
- Bootleg Austin
- The Trunk – Nashville
- StyleLiner – New York City
- The Fashion Truck – Boston
- The Fashion Mobile – Minnesota.
- Nomad, New York
- Runaway Runway
- JD Luxe
- Shop Truck LA
- Selvedge Dry Goods
- Moda Fashion Truck
- Vancouver Fashion Truck
- Biggest Little Fashion Truck
- Rolling Racks
ii. Is There a Franchise for Fashion Truck Business? If YES, List at least 20 of them and their cost
No, there are no franchise opportunities for the fashion truck business.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Fashion Truck Business?
Yes, there are county or state regulations or zoning laws for fashion truck companies, and players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.
Please note that trucks are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. Driving large trucks and buses requires a commercial driver’s license (CDL) to operate. Obtaining a CDL requires extra education and training.
Drivers of commercial motor vehicles (CMVs) must adhere to the hours of service, which are regulations governing the driving hours of commercial drivers. Drivers must be at least 21 years old to drive on the interstates, with efforts being made to reduce the age to 18.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to do business with us.
ii. Level of Educational
We don’t have any restrictions on the level of education of those who we are ready to do business with.
iii. Income Level
There is no cap on the income level of those that would buy clothes and other fashion accessories from us.
There is no restriction when it comes to the ethnicity of the people that will buy clothes and other fashion accessories from us.
There is no restriction when it comes to the language spoken by the people that will buy clothes and other fashion accessories from us.
vi. Geographical Location
Anybody from any geographical location is welcome to do business with our company.
We Move® Fashion Truck, Inc. will not restrict any client from doing business with us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Fashion Vans and Trucks.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the fashion industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, and referrals (also known as word-of-mouth marketing).
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, We Move® Fashion Truck, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and the full package.
All our pricing strategies will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the fashion industry, and freelancers to help refer clients to us.
We Move® Fashion Truck, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need a wide range of supplies like female, male, and children’s clothing, footwear, and fashion accessories from different manufacturers and brand means that We Move® Fashion Truck, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.
We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business. We Move® Fashion Truck, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options for Customers
Here are the payment options that We Move® Fashion Truck, Inc. will make available to its clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At We Move® Fashion Truck, Inc., we only offer store credit for returns. We do not refund back to your original method of payment. Items can be returned within 14 days from the date your items are delivered or picked up in-store. Items must be in the original condition to receive an exchange or store credit.
Please note that returns may take 2-3 business days to process from the date of arrival. When returning, please securely pack the returned items with the invoice included in an appropriate shipping box or envelope as we are not liable for packages, we do not ship ourselves. We Move® Fashion Truck, Inc does not provide shipping labels for returns. The original invoice must be included in your return packages.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients. We will work with effective CRM software to be able to achieve this. On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnerships and deals that will enable the firm to boost our product offerings and support revenue growth.
a. What Happens During a Typical Day at a Fashion Truck Business?
- The business is open for the day’s work
- The vans and trucks are washed, cleaned, and stocked with a wide range of clothing, footwear, and fashion accessories from different manufacturers (brands).
- The fashion truck moves from one location to another
- Customer orders are taken and they are attended to
- Schedule maintenance of trucks and vans is carried out
- Re-stocking is done
- Marketing/website upkeep
- Administrative duties
- The truck returned to base
- The business is closed for the day.
b. Production Process
There is no production process when it comes to the fashion truck business.
c. Service Procedure
The service procedure of a fashion truck company starts with a customer shopping from our fashion truck. Once the shopping is done, payment will be received and the clothes packed and given to the customer.
d. The Supply Chain
We Move® Fashion Truck, Inc. will rely on key players in the clothing manufacturing industry to supply clothes and other fashion accessories to us. We have been able to establish business relationships with wholesale supplies of a wide range of authentic clothing, footwear, fashion accessories et al from different brands.
e. Sources of Income
We Move® Fashion Truck, Inc. will make money from;
- The sale of a wide range of authentic women’s clothing, men’s clothing, children’s clothing, footwear, and fashion accessories et al from different manufacturers (brands).
- Sale of franchises.
a. Amount Needed to Start your Fashion truck company?
We Move® Fashion Truck, Inc. would need an estimate of $120,000 to successfully set up our fashion truck company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up Inventory (a wide range of clothing, footwear, and fashion accessories et al from different manufacturers – $25,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Purchase of Trucks and Vans: $30,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
We Move® Fashion Truck, Inc. will not build a new facility for our fashion truck company; the nature of our business makes it possible for us to operate our business on the go.
d. What are the Ongoing Expenses for Running a Fashion Truck Company?
- Supplies of a wide range of clothing, footwear, fashion accessories et al from different manufacturers.
- Gas and lubricants
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Trucks and vans maintenance
- Marketing costs
e. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $48,000 Per Year
- Accountant $38,000 Per Year
- Truck and Van Drivers – $36,800 Per Year
- Sales Boys and Sales Girls – $28,000 Per Year
f. How Do You Get Funding to Start a Fashion Truck Company
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and your friends.
a. How Much Should You Charge for your Product?
The price of our clothes and other fashion accessories will be based on the brand and type of the item.
b. Sales Forecast?
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $560,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $150,000
- Second Fiscal Year (FY2) (Profit After Tax): $250,000
- Third Fiscal Year (FY3) (Profit After Tax): $300,000
d. Profit Margin of a Fashion truck company
The ideal profit margin we hope to make will be between 55 and 62 percent on each job carried out irrespective of the distance covered. Typical markup on designer fashions ranges from 55 to 62 percent. If the wholesale price of a silk dress is $50, the retail price might range from around $110 to $130.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
We Move® Fashion Truck, Inc. will grow our fashion truck company by first opening other sales outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why?
We Move® Fashion Truck, Inc. plans to expand first to New York City – New York, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Montpelier, Vermont.
The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest and most thriving fashion markets in the United States.
The founder of We Move® Fashion Truck, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.