Page 2 

Table of Contents 
Table of Contents 2 

Executive Summary 3 

Business Rationale 4 

About the Business 5 

External Environment 8 

Financial Planning 11 

 
   
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Executive Summary 
Our mission at Suburban Outfitters is to make an effective, enriched apparel shopping experience 
by providing complete, designed outfits in order to help teens embrace change in appearance and attire. 
While many retail clothing companies focus on their individual products, at Suburban Outfitters we strive to 
provide full outfits to our customers. Many times, teenagers get stuck in the same loop of clothing. Season 
after season, teenagers are repeating the same style over and over again. Additionally, many shoppers have 
trouble finding individual pieces of clothing that will look good and end up matching to make an acceptable 
outfit. This could cause people to feel self-conscious about themselves when going out. On top of that, this 
shopping process is usually time-consuming and dulling. Being able to purchase full outfits allows our 
customers to expand upon their usual outfits and get out of their comfort zone. Here at Suburban 
Outfitters, we supply our customers with complete, high quality, stylish outfits from top brands that will 
make anyone wearing them feel confident and look good. There are also many consumers who are uncertain 
of what will look good on the body. 
The main goal here at Suburban Outfitters is to end the year with a profitable revenue. We plan to 
achieve this goal by having creative advertising and marketing strategies to sell our handpicked outfits. Our 
continuously updating website with new outfits throughout the year will help us sell fresh fits all year long. 
Adding new products monthly allows our customers to stay up to date with the latests trends. We would 
like to maintain and update our social media with the latest fashion trend and keep our customers wanting 
to come back. Nevertheless, we want to keep a positive and productive work environment. Keeping our 
employees thoroughly satisfied is something that we take pride in at Suburban Outfitters. Additionally, we 
hope to improve the confidence of our customers. We aim to transform individuals through innovatively 
designed. The outfits will allow for teens around the world to be confident in their outfits, knowing that they 
have been planned and designed meticulously. By maximizing the effort we put into keeping our styles 
fresh, we hope to improve the success and impact of our company. 
Our target demographic is high schoolers, males and females ranging from the ages of 16-19 years 
old. We are targeting people who like to stand out and who like to spend their money on clothes. People 
who are willing to spend money on their desires. Additionally we hope to target people into fashion that 
want to stand out with the latest releases. Targeting middle to upper class young adults because of the 
prices of our products. Middle class would be more geared towards the more casual outfits, while our 
upper class customers would be pushed towards the higher end outfits. 
As we are a new company we will need a loan in order to maximize our potential. We are receiving 
a $200,000 loan with an interest rate of 7.25%. The interest rate is based on real Illinois small business 
loan interest rates. We will make 5 payments starting in December until we have completely paid off the 
$200,000 principal and $3,639.56 interest in April. This loan makes up most of our cash balance at the 
end of October. 
Sales will start slow in November, but are projected to increase by each month. We will attend two 
trade shows; the first is in November for the Southern Regional Trade Show and the other is in February at 
the Great Lakes Regional Trade Show., which will increase revenue a lot in those months. We also hope to 
make three contract sales during the months we are not attending trade shows to balance the sales 
(December, January, and March). At the end of the year, Suburban Outfitters is projected to make 
$1,281,000 in combined sales. 
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Business Rationale 
Customer Empathy 
Here at Suburban Outfitters, the customer’s opinion is always heard and valued. We prioritize the feedback 
of our customers and disagreements are settled with this in mind.  
- Making our customers happy is our primary concern. 
- We will always take suggestions and never argue. 
- Listening to our customers’ complaints will allow us not only to further understand our customer 
base but also to make improvements to our goods and services. 
 
Problem/ Solution Statement 
Suburban Outfitters is addressing a few common problems found in society. Many shoppers have trouble 
finding individual pieces of clothing that will look good and end up matching to make an acceptable outfit. 
This could cause people to feel self-conscious about themselves when going out. On top of that, this 
shopping process is usually time-consuming and dulling. Here at Suburban Outfitters, we supply our 
customers with complete, high quality, stylish outfits from top brands that will make anyone wearing them 
feel confident and look good. There are also many consumers who are uncertain of what will look good on 
the body. To fix this problem, we show examples of our outfits on models to show how our product will look.  
 
Company Goals 
Suburban Outfitters’ main goal is to end the year with a profitable revenue. We plan to achieve this goal by 
having creative advertising and marketing strategies to sell our handpicked outfits. Our continuously 
updating website with new outfits throughout the year will help us sell fresh fits all year long. We would 
like to maintain and update our social media with the latest fashion trend and keep our customers wanting 
to come back. Nevertheless, we want to keep a positive and productive work environment. Additionally, we 
hope to improve the confidence of our customers. We aim to transform individuals through innovatively 
designed. The outfits will allow for teens around the world to be confident in their outfits, knowing that they 
have been planned and designed meticulously. By maximizing the effort we put into keeping our styles 
fresh, we hope to improve the success and impact of our company.  
 
   
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About the Business 

Company Overview 
Suburban Outfitters is your one-stop outfit shop. We are a primary business retail company that sells 
complete outfits from head to toe. Our company's legal name is Suburban Outfitters, Inc. We are a C 
corporation because it will allow our company the easiest path to grow and doesn’t limit the number of 
shareholders that can invest in our company. This was the best route for us because we might want to go 
public in the future and this also allows our company to be separate from the owners when being taxed. The 
duration of our company will be one year. Suburban Outfitters was founded by a group of ambitious teens, 
seeking to improve the confidence of individuals through their style.  
 
Mission Statement 
Suburban Outfitters aims at making an effective, enriched apparel shopping experience by providing 
complete, designed outfits in order to help teens embrace change in appearance and attire. 
 
Organization 
By organizing our firm, the company’s structure and responsibilities are established. The firm can work 
together to each take on the duties of leadership to enhance the success of the company.  
 

 
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SWOT Analysis 
Strengths  Weaknesses 
● Wide variety of clothes combinations for  ● Could be hard to come up with different 
customers choosing  outfits 
● Different type of product outside of other  ● Keeping up with the latest fashion trends 
mainstream companies  ● It will take time to reach a break-even 
● Large marketing team of 8 members  point 
● Experienced creative services team   

Opportunities  Threats 
● Trade shows for publicity  ● This is our companies first year so we have 
● Win competitions to gain awareness from  no former identity 
other companies  ● Other clothing and apparel companies 
● Fundraising  ● People wanting individual pieces of 
● Create sales contract with other VEI  clothing and not the whole outfit set 
companies  ● Customers not being satisfied with our 
preset clothing 
   
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External Environment 
The fashion industry market value is $406 billion. In the United States, 1.8 million people are employed in 
the fashion industry.  
 

 
 
Target Market & Market Segmentation 
Target Market:​ High schoolers from ages of 16-19   
Demographics:​ High schoolers, males and females ranging from the ages of 16-19 years old. With an 
average annual salary of $20,000-$35,000. 
Geography:​ Rural, Suburbs (Targeting teens/young adults that live in suburban areas) 
Psychographics:​ We are targeting people who like to stand out and who like to spend their money on 
clothes. People who are willing to spend money on things they may not need, but more what they want. 
People into fashion that want to stand out with the latest releases. Also people who value nice things, like 
their clothes, jewelry, and shoes.  
Socio-economic:​ Targeting middle to upper class young adults because of the prices of our products. 
Middle class would be more geared towards the more casual outfits, while our upper class customers 
would be pushed towards the higher end outfits. 
 
Marketing Mix 
Product: ​We sell clothing and accessories from a variety of different brands. We put the products together 
into certain outfits, created by our marketing executives, so that our customer doesn’t have to; However, 
our customers will be able to purchase certain products separately so that they don’t have to buy the full 
outfit. We sell our products at 2 different price points (Casual & High-End) so that any customer will find 
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the right outfit for them at their preferred price. We decided to sell our products to meet our customers 
needs in terms of price point and also to meet their wants, such as a clothing line that they would find 
appealing.  
 
Pricing: ​We have a variety of different prices for our different sets of outfits. Our pricing for casual outfits 
range from $272 to $608 with complete outfits that our customers can choose from. We believe these 
prices are good representation of priced outfits, we do have a 60% markup to allow our company to make 
a profit. For high-end outfits, our prices soar into $3,163 to $3,972 with a markup of 55%. Though our 
prices are higher, we believe that we offer high quality clothing that represents the prices we have chosen. 
 
Placement: ​Our product lines will be sold digitally on our website and we also will sell our products at the 
trade shows that we will be attending. We will be attending trade shows in Tennessee in November and also 
a trade show in Chicago in February. These trade shows will be prime opportunities for us to sell our 
products in person to our specific target market. The Tennessee trade show will indicate that everything in 
our firm is ready to go and we have begun to make sales. All the sales at these trade shows will combine 
with the sales that we will make on our digital website. We feel as if this website will be a good asset but 
will not generate as much revenue as trade shows. More specifically we anticipate that our sales will be 
generated in these percentages: 35% of sales will be from the website, 20% of sales from trade shows, 
and 45% from out-of-network contracts. We have come to these numbers because of other examples we 
have seen from other firms and also our own personal research.  
 
Promotion: ​There will be multiple ways that we plan to get our firm name out there to help us generate 
sales. We plan on using multiple social media platforms as well as using the trade shows that we are 
attending to get our name out there. The social media platforms that we will be using will be Twitter and 
Instagram. For the most part, we will be using these platforms by posting pictures of our outfits and clothes 
we will be selling. We will be posting our products all throughout the year as they change. This change is a 
specific promotional plan that we wanted to utilize to keep customers coming back as we release new 
products throughout the year. We plan on releasing new products every month that relate the the month 
they are being released in. This could be a variety of changes from the color of the new line of products, to 
the entire style or material of the products. We be promoting these new product line releases on our social 
media platforms so that we can get a good reach of people who get intrigued by our new products. 
 
Positioning: ​We plan on using our target market to our advantage in order to try to create a positive view 
of our firm. This is because our target market is people our age so we feel that we can create a good 
connection with our customers. We plan that our overall market will react very well to our products as we 
try to make the connections to their real life options for clothing. We do this to try to get the customer to 
think “Oh yeah, I’d buy that” and then have that impulse decision to buy what they would but in real life. 
We also want to connect with our market using our social media to try to generate that favorable image of 
our firm. 
 
   
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Discussion of Business Risks 
We plan to create a fully functional company that decreases the amount of potential risk factors and 
threats. As a clothing company that creates complete outfits, on a spectrum from casual to high end. Our 
higher end items have a larger ticket price that may turn away customers. Also, they have a higher cost, 
creating a higher markup in order for us to turn a profit. To counter this, we sell outfits within the casual 
sector of our clothing that are cheaper for customers. We operate within a virtual business environment, 
and salaries are paid twice a month. This will create an irregular sales pattern as our high end outfits have 
a higher cost, and will require customers to save up. To counter this, our casual outfits are more affordable 
for customer’s monthly salary. Another factor is that we have no established customer base. Suburban 
Outfitters is building its brand from the bottom up, and our social media outlets (Instagram and Twitter) 
will allow us to directly market to our customer base and shape our image. With the fast paced spread of 
information on the internet, company's reputation can change quickly. This could affect our sales, but our 
regularly updated shop tailored to holidays, we can reinvent our image and stay current. Some threats are 
that other companies with lower prices on similar clothing can threaten our market share, and our clothing 
derives from name brand stores that others can use. What makes our company different is that we sell 
style, efficiency, and an experience. Our brand is bigger than the individual components of the outfits that 
we sell. 
 
   
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Financial Planning 
Break-even Analysis 
Our Break Even Report an estimate of how much money we need to generate in sales (revenue) to pay for 
the purchasing of the products and running of the company. With a fixed cost of $536,375.00 (year’s worth 
of salaries, interest, rent, utilities, etc.) and our variable cost being calculated with the average cost of all 
the products on our website multiplied by the units sold (average cost of goods sold = $259.21), Suburban 
Outfitters must sell 1,203 units (at an average selling price of $705.15 per unit) in order to break even. This 
means approximately selling 201 units per month. 
 
 
Average selling price per sale  $705.15 
Average cost of goods sold per sale  $259.21 
Average profit rate  63.24% 
Annual fixed cost  $536,375.00 
 
 

 
 
 
 
 
 
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Break even point in sales dollars:​ Average selling price x Breakeven point in units 
Total sales at break even: ​$848,151.84 
 
Break even point in # of sales: ​Fixed costs/(Average selling price per unit - average variable cost per unit)  
Break even point in units: ​$1202.80 
 
X  Y  Y  Y  Y 
Units Sold  Revenue  Variable Cost  Fixed Cost  Total Cost 
100  $70,515.00  $25,921.00  $536,375.00  $562,296.00 
200  $141,030.00  $51,842.00  $536,375.00  $588,217.00 
300  $211,545.00  $77,763.00  $536,375.00  $614,138.00 
400  $282,060.00  $103,684.00  $536,375.00  $640,059.00 
500  $352,575.00  $129,605.00  $536,375.00  $665,980.00 
600  $423,090.00  $155,526.00  $536,375.00  $691,901.00 
700  $493,605.00  $181,447.00  $536,375.00  $717,822.00 
800  $564,120.00  $207,368.00  $536,375.00  $743,743.00 
900  $634,635.00  $233,289.00  $536,375.00  $769,664.00 
1,000  $705,150.00  $259,210.00  $536,375.00  $795,585.00 
1,100  $775,665.00  $285,131.00  $536,375.00  $821,506.00 
1,200  $846,180.00  $311,052.00  $536,375.00  $847,427.00 
1,300  $916,695.00  $336,973.00  $536,375.00  $873,348.00 
1,400  $987,210.00  $362,894.00  $536,375.00  $899,269.00 
1,500  $1,057,725.00  $388,815.00  $536,375.00  $925,190.00 
1,600  $1,128,240.00  $414,736.00  $536,375.00  $951,111.00 
1,700  $1,198,755.00  $440,657.00  $536,375.00  $977,032.00 
1,800  $1,269,270.00  $466,578.00  $536,375.00  $1,002,953.00 
1,900  $1,339,785.00  $492,499.00  $536,375.00  $1,028,874.00 
2,000  $1,410,300.00  $518,420.00  $536,375.00  $1,054,795.00 
 
 
 
   
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Summary Profit & Loss Statement 
As calculated from the Sales Projection Summary, total revenue at the end of April 30, 2020 is $1,281,000. 
Suburban Outfitters obtains merchandise in wholesale, making the cost of goods sold amount to 
$469,588.10 at the end of April 30, 2020. This establishes our gross profit margin of 63.34%. As for 
operating expenses, the largest portion by far is the Salaries expense, followed by Payroll taxes expense. 
Other operating expenses include 401(k) which Suburban Outfitter matches the 3% of employee 
contributions, rent, depreciation, insurance, utilities, and miscellaneous. At the end of the year, we will have 
made a net income of $251,791.75 before taxes. Based on the 2019 corporate tax table, Suburban 
Outfitters is expected to owe $81,448.78 corporate income tax. On April 30, Suburban Outfitters’s net 
income after taxes is $170,342.97. 
 

 
 

 
 
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Balance Sheet 
We are receiving a $200,000 loan with an interest rate of 7.25%. The interest rate is based on real Illinois 
small business loan interest rates. We will make 5 payments starting in December until we have completely 
paid off the $200,000 principal and $3,639.56 interest in April. This loan makes up most of our cash 
balance at the end of October. Since we have not officially launched our business yet, most accounts have a 
zero balance, like Merchandise Inventory. By the end of the fiscal period in April, we hope to have incurred 
a lot more assets, specifically cash. The two current assets that will have a smaller balance is Merchandise 
Inventory and Supplies,because hopefully we have sold most of our products and used a majority of our 
supplies. As for fixed assets, we will have less than what we started with in October due to depreciation. 
The depreciation rate for our fixed assets is 20% per year, which is equivalent to 1.667% per month. As for 
the liabilities, the main difference is that we have incurred Corporate tax because we made a net profit. 
Our retained earnings have also increased due to revenue. In both the actual October Balance Sheet and 
Projected April Balance sheet, assets equal to both liabilities and stockholder’s equity. 
 
Balance Sheet 
As of October 31, 2019 
 

 
 
Loan Payable: Suburban Outfitters is taking out a $200,000 small business loan 
Sales Stock: The $20.000 balance in capital stock comes from the beginning-of-the-year VE investment 
Retained Earnings: The building Suburban Outfitters rents came included with supplies and all fixed assets 
 
 
 
 
 
 
 
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Balance Sheet 
As of April 30, 2020 

 
 
Computer Accumulated Depreciation: ​All fixed assets depreciate by 20% per year (1.67% per month) 
Payroll Tax Payable: This is based on the April 2020 Salaries Expense of $79,996.03 
401(k) Payable: All employees have 3% of their gross pay taken out per pay period to contribute to his/her 
401(k) 
Unemployment Tax Payable - State: SUTA is calculated based on the Illinois unemployment tax rate, which 
is 3.25% 
Corporate Tax Payable: Corporate tax payable is calculated based on the $251,791.75 net income as of April 
30, 2020 
Retained Earnings: Retained Earnings consists of initial $15,150 balance in October 31 and the $251,791.75 
net income as of April 30, 2020 
 
 
 
Sales Projection Summary 
As a new firm, Suburban Outfitters is hoping to provide customers with stylish, complete outfits during our 
November launch. Sales will start slow in November, but are projected to increase by each month. We will 
attend two trade shows; the first is in November for the Southern Regional Trade Show and the other is in 
February at the Great Lakes Regional Trade Show., which will increase revenue a lot in those months. We 
also hope to make three contract sales during the months we are not attending trade shows to balance the 
sales (December, January, and March). At the end of the year, Suburban Outfitters is projected to make 
$1,281,000 in combined sales. 
 
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  Nov. 2019  Dec. 2019  Jan. 2020  Feb. 2020  March 2020  April 2020  Total 
Sales Revenue               
Online Sales  $ 44,000  $ 64,000  $ 75,000  $ 80,000  $ 83,000  $ 85,000  $ 431,000 
Trade Show Sales  $ 102,000  $ -  $ -  $ 148,000  $ -  $ -  $ 250,000 
Contractual Sales to 
non-VE entities  $ -  $ 200,000  $ 200,000  $ -  $ 200,000  $ -  $ 600,000 
Total Sales Revenue  $ 146,000  $ 264,000  $ 275,000  $ 228,000.00  $ 283,000  $ 85,000  $ 1,281,000 
 
 
 
Screenshot of Company Bank Account