Classic Clothes: supporting low-income women and children in London

Business Plan: Classic Clothes

Classic Clothes is a non-profit community service organization that services the public by providing free clothing and household products to women and children and distributing them through various agencies and programs that target these populations throughout London. Our services include providing coats, gloves, and business attire for women entering the workforce, school supplies, and basic household items for women and children at, or just-below the poverty line, or those identified as "at risk." Classic Clothes receives support from charities in the surrounding area and corporate sponsorships. Classic Clothes also solicits local organizations for donations, especially organizations that are in the clothing industry, business attire, and organizations that supply general household items.

According to statistics 25% of women in the UK live in poverty; 22% of women have persistently low income (Rosenblatt & Rake, 2003). Single mothers and women are most at risk for poverty, requiring the most assistance, a result of "sexism and racism," a gender related pay gap, and other factors such as social exclusion (Rosenblatt & Rake, 2003).

A quarter of the population of households in London would qualify for help offered from Classic Clothes. The client base for the agency is low-income, female head of household families, who require help with clothing and basic household necessities. The program would collect items from various organizations and donations from the public for distribution from various points throughout the city. The organization would also pay particular attention to women entering the workforce, or attempting to enter the workforce, assuring they have the business or office attire needed to interview and work as these items are often incurred at great expense.

As the economy continues to decline, Classic Clothes expects the need for these services among women and children will continue to rise. There are many families experiencing increasing poverty especially since the gender gap and pay gap continues to rise especially within the UK where social policies still suggest women are not close to catching up in status to men. Classic Clothes will attempt to assist women in closing the gender gap, and assist in providing essential items to women in need of essentials for work and home.

MISSION

The mission of Classic Clothes is to provide households in need with adequate clothing and basic household necessities so women and children can become self-sufficient and find the employment they need to improve their quality of life and boost self-esteem. Services include business clothing support, coat programs, residential delivery programs and children's services.

START UP ASSESSMENT

Classic Clothes start-up costs are minimal, as much of the supplies needed for distribution are donated or will be donated and many are used. Much of the work that will be accomplished will be done through volunteer services on an as needed basis. Much of the distribution will also be accomplished through inter-agency assistance, which will occur as Classic Clothes begins networking with other social services agencies in the area.

After budgeting and determining what grants Classic Clothes will qualify for as a non-profit agency, the preliminary start-up costs are assessed at $100,000. These costs are associated with distribution trucks and the main warehouse operations facility, and overhead associated with operating the office. The program itself will be funded by charitable donations and grants provided to non-profit organizations that provide relief services to women and children.

SERVICES

According to statistics 25% of London residents qualify for assistance provided by Classic Clothes; these include low-income, at-risk women and children and those living in poverty. These women require basic household essentials and clothing providing by Classic Clothes distribution centers to assist them in becoming self-sufficient.

Classic Clothes plans to partner with several other community programs to direct women toward counseling centers that will assist them in finding employment opportunities and other basic necessities including food. This will help assure that the individuals receiving aid have the best possible chance of succeeding in their mission of becoming self-sufficient. Individual families participating in the program will have access to one coat per family member, and up to 5 additional items of clothing per family member twice each year, and two business suits for women entering the workforce. One pair of shoes will also be offered each family member during the year.

Each family will also be offered school supplies for each family that has children entering school during the school year. On a limited basis, the center will direct families to financial services to assist with emergency needs.

MARKET ANALYSIS

Some studies suggest as much as 44% of the population in London consists of single women. Of these it is difficult to determine how many will be able to re-enter the workforce after their children are of school age. Some never make it. There are a number that never make it to the workforce, with the reported number of teen pregnancies on the rise. Child Poverty Action Group studies showed that 20% of children in the UK are subject to poverty, and that while child poverty rates are decreasing from the 1980s, the trend must continue.

Classic Clothes estimates that with continuous improvement, within the next five years, it may be possible to cut the poverty rate among children by another 5%.

MARKET SEGMENTATION

Classic Clothes surveys of the public show that 25% of the market consists of poverty stricken single women, with 20% of children living in poverty as of May, 2011. Given this, women and children are a primary concern for Classic Clothing services. Women are shown to be paid less than men with a gender gap, and social distinction, having a much harder time acquiring employment and receiving equal pay and social status in London and throughout the UK.

The number of single women continues to rise in the UK, so it is even more critical that Classic Clothes work to boost women's self-esteem, so they can have "healthy hearts" and work to become even more self-sufficient, and care for their children.

SERVICE OUTREACH

Classic Clothes recognized that the most efficient method for distribution of its products is through local social services programs and charities that women already utilize and are familiar with. These include programs that service low-income women and children. Clients are likely to visit several of these agencies, including food banks and social services, including counseling or low or free medical care programs, for themselves and children, several times a month. Because these programs have volunteers, they can be used to help distribute clothing and other household goods to women and children.

Programs that can be taken advantage of include programs that help teen parents, and programs that help address abuse and domestic violence against women.

STRATEGY AND IMPLEMENTATION

Classic Clothes marketing strategy will focus on improving its relationships with local charitable organizations that already serve the low-income community, especially those that target women and children. It will work with schools so it can establish a means of distributing supplies including school supplies and coats on an as-needed basis. Advertising literatures will be distributed to local community service centers and will be readily available at local libraries and social service agencies so consumers are aware of the services offered.

INCOME GENERATION

Classic Clothes will begin a Fundraising campaign each spring focusing on collecting donations from car washes, planting gardens and collecting from local grocers to gather gently used items from people that are done with their winter items and ready to donate them to families that will need them the following fall. They will target large corporations that are willing to donate money and fund educational centers. Spring is likely to be one of the highest collection months for clothes, as most people are likely to invest less in clothing and winter is one of the times that low-income residents require clothing the most. School starts in the fall, and it is one of the times that clothing is also in highest demand.

Management SUMMARY

Classic Clothing executive team will include a board of directors that will oversee operations and ensure that Classic Clothing mission is carried out. The organization will also have a CEO who will oversee operations.

PERSONNEL

Other personnel that will help carry out operations within the organization will include the following: (1) Treasurer, who will be responsible for handling financials, including grant applications and revenues and donations coming into and going out; (2) Volunteer Coordinator, responsible for all volunteers; (3) Distributions & Inventory Manager.

Each month personnel will gather for a monthly meeting to update the CEO on the progress of the team on carrying out the mission of the organization, and the CEO will review the budget with the team and then the Board of Directors.

FINANCIAL PLANS

Classic Clothing funding comes primarily from donations received from charitable organizations, the public, and from grants received from government and private agencies. Funding will be lowest at the start of business, and during the first two years, after which time the organization expects that funding will level out, and each year the organization will be solvent. Program expenditures will come primarily in the way of overhead and the distribution center, as salaried employees will be paid minimally and equally.

The financial plan considers the current state of the economy, and the fact that the organization serves a low-income population. The organization plans to re-apply for the same grants each year, and expects that the grants the organization applies for will be renewed. (Thus, the organization plans to apply for renewable grants). The organization intents that or assumes that the need for continued assistance by the clients will not disappear, thus the continuing need for ongoing assistance to low-income women and at-risk children.

CASH FLOW

Classic Clothing cash flow will come in the way of collected donations and funding provided by organizations that offer charitable contributions on a monthly basis. The organization will have a website that represents the company's mission statement and objectives, and will allow companies to provide donations online; credit donations however, will not necessarily be credited during the same month that they are made. Thus, cash flow will have to be calculated in the way of receipts received monthly and will need to be exact. After the company has been in operations one year, the company can predict approximately how much it can expect in monthly cash flow from season to season based on the previous year's expenditures and receipts.

The net worth of the company during the first year is expected to be approximately $50,000. In the subsequent two years of operation, the company expects to be at approximately $100,000 net worth, stabilizing at approximately this amount steadily during the first five years of operation.

As most of the items for donation will include used items, and not new items, there is not much expenditure associated with the cost of doing business. The company will solicit clothing manufacturers and local stores for "newer" items that may be defective in some manner (missing a button) that may be given to women for purposes of business wear and office attire. These items will be a valuable resource to the organization and may be considered assets to women looking to become self-sufficient. Such items however, will not "cost" the organization anything in the way of monetary expense.