Seoul Mate

Business Concept:
Seoul Mate is a start-up clothing retail company that promotes youth fashion by
importing fashion designed Asian clothes to West Coast of Canada. We use the name
Seoul Mate because our largest supplier is from Korea and most of our products are
designed by Korean.
Key Objective:
Our goal is to generate a profit by selling fashion-designed clothes to youth in
Victoria. Not only to meet the needs for local youth consumers, but also to open a
new market for future expansion.
Ownership Structure:
The company is run by sole proprietorship. The owner is Thomas (Hanzhi) Wang, a
senior business student from UVic.
He is the only investor and thus the only owner of the business. In addition Thomas is
also the management team leader.
Product & Service:
To show our products potential, we provide a small sample of what exact clothes &
jewelry, shoes & bags we are selling.








Targeted Market:
According to our market research, youth in Victoria demonstrated an increasing need
for stylish clothes and has a preference for Asian design (Korean, Japan, and China).
However, evidence shows that Shopping in Victoria is becoming boring and pushes
potential consumers to shop in Vancouver or through online websites. Our goal is to
get Victorias youth to go back to their downtown shop and spend money on the
popular products we provide.
Marketing Strategy:
1. Unique Selling Point (USP): Reasonably priced, young people favored,
fashion products, Asian style.
2. Since we are selling clothes that are designed by Asian fashion designers,
Korean, Japanese, Chinese consumers will be more familiar with our concept
and thus willing to spend more on our products, so they are our primary
targets. Local Canadians are also potential clients who will definitely become
interested in our products as more people start to visit.
Promotions will be held both online and through people.
1. We had already got in touch with the local press and University student
bodies. For instance, Chinese student organization holds more than 1000
members a large portion of them are very attracted to the products we offer.
2. Online promotion will be done through social media marketing (Facebook,
Twitter). Discount coupons will be distributed through online promotional
activities. Facebook likes and posts will earn shoppers 5% off coupons.
3. Word of mouth effect is desired while commencing day to day selling.
Our products will be sold through our storefront located in the busy shopping
center of Victorias Downtown Area. Shopping Mall is our best choice as
customers tend to gather in this kind of location.
We expect our consumers to visit our shops as frequent as possible to check out
our greatest selection of clothes which are renewed every two weeks. Buying
cycle of our client should sit between once per week to once every two weeks.
Supply Chain:
By far, we have contacted three suppliers from Korea, China and Japan. Our
management team is composed of two members. Shipping method is also available by
Air or by Ocean. The owner who is responsible for market development and strategic
management. The other member, Xiao Han, who is a specialist in fashion design, is
responsible for product selection and supplier management.
Competitive Advantage:
We are the only local retailer who sells Asian Fashion Clothes. More importantly, the
products we offer unique pricing strategy that makes our products affordable to both
youth and others who shop for more luxurious goods regularly.
Industry Overview:
Clothing retail industry is a great business that brings endless possibility of success as
well as risks that exists in change of tastes and fashion design. It is crucial for our
company to stay ahead of the fashion trend and forecast the future popular design that
will be loved by young shoppers and their friends.
Operations Plan:
Office Location: #408-1631 McKenzie Ave, Victoria, BC, V8N 5M3
Management Team Info:
Owner: Thomas (Hanzhi) Wang (250) 891-6718, whz19910730@gmail.com
Supply & Fashion Specialist: Xiao Han (250) 885-9562
Store Location: TBA
Our products are made in Asia (China & Korea), shipped from Korea to Vancouver
by Ocean Shipping. Then transferred from Vancouver Warehouse to our Victoria
Store location.
Financial Projections Summary:
Based on our pricing strategy and the customer base in Victoria, we forecast our
annual revenue to be $600,000. Major expenses include inventory, shipping, rent,
salary, electrics, and long term asset purchase. We believe we have enough fund for
operating activities, thus, financing and investment are not projected. However, we
welcome investment from outside of our company. According to BC Tax rate, we
estimate the tax rate to be 35% and depreciation of our long-term property would be
5%. The change of expense depends on international fuel price, production costs, and
human labor costs. Ratio of changes are predicted conservatively.
year 1 revenue amount $600,000

revenue growth by year 10%

Direct Cost of Revenue % 40%


Company Expense in 6 categories & Growth Rate

Shippiing $36,000 3% 5%
Rent $100,000 2% 2%
Salary $23,000 0% 0%
Inventory $120,000 5% 10%
Electrics $4,000 1% 2%
Long-Term Assets purchase $10,000 0% 0%

Expected Tax Rate

35%

Expected Depreciation Rate in Years 5%


Income Statement


Year 1 Year 2 Year 3
Revenue $600,000 $660,000 $726,000
Cost of Revenue $240,000 $264,000 $290,400
Gross Profit $360,000 $396,000 $435,600
Gross Margin Percent 60% 60% 60%

Operating Expenses

Shipping $36,000 $37,080 $38,934
Rent $100,000 $102,000 $104,040
Salary $23,000 $23,000 $23,000
Inventory $120,000 $126,000 $138,600
Electrics $4,000 $4,040 $4,121
Long-Term Assets purchase $10,000 $10,000 $10,000
Total Operating Expense $293,000 $302,120 $318,695

Operating Profit $67,000 $93,880 $116,905
Operating Profit % 11.2% 14.2% 16.1%

Depreciation $2,000 $2,000 $2,000
EBIT $65,000 $91,880 $114,905
EBIT % 10.8% 13.9% 15.8%

Interest Expense $0 $0 $0
Tax Accrued $22,750 $32,158 $40,217
Earnings $42,250 $59,722 $74,688
Earnings % 7.0% 9.0% 10.3%

Statement of Cash Flow


Year 1 Year 2 Year 3
Operating Activities

Cash Received $600,000 $660,000 $726,000
Cash Used $555,750 $598,278 $649,312
Net Cash from Operating $44,250 $61,722 $76,688

Investing Activities

Cash Received $10,000 $0 $0
Cahs Used $10,000 $0 $0
Net Cash from Investing $0 $0 $0

Financing Activities

Cash Received $0 $0 $0
Cash Used $0 $0 $0
Net Cash From Financing $0 $0 $0

Net Cash Flow $44,250 $61,722 $76,688
Cash Balance $44,250 $105,972 $182,660