T -Cycle

T -Cycle. Turn Tees T o Treasure. 010K 00.1 03 seea uana.

Introduction. T-cycle is a revolutionary company concept however there are several closely relator rivals who are performing excellent in terms of revenue and brand awareness across Australian and globe. The sales of second-hand fashion retailers have been dramatically rising in Australia and globally. According to the 2020 resale study issued by ThredUp which is a US based charity shop, the second-hand market encompassing both online and instore is anticipated to reach $36 billion in 2024 and quadruple by 2029 ( Masige , 2020). The report is based on the drafting of a business plan for an second hand clothes shop for the purpose of raising capital. T-cycle is a revolutionary company concept however there are several closely relator rivals who are performing excellent in terms of revenue and brand awareness across Australian and globe. The sales of second-hand fashion retailers have been dramatically rising in Australia and globally. According to the 2020 resale study issued by ThredUp which is a US based charity shop, the second-hand market encompassing both online and instore is anticipated to reach $36 billion in 2024 and quadruple by 2029 ( Masige , 2020). Australia has a large population of female residents. A startup firm is required to create and carry out a broad variety of tasks.business methods for the successful and efficient start-up of a company As a result, the study includes the most importantbusiness tactics that were engaged in the continuance of a company The key tactics that have been addressed include the following: For both the starting and ongoing operations, sales and marketing, operational and financial planning are necessary.the continuation of the business T Cycle Store will be the name of the firm. Clothing, shoes, and accessories are available for purchase online, and are targeted specifically towards the female population of Australia. TheIn addition, the research discusses the techniques used in luring women to its stylish and upscale establishments.Products and services that are fashionable..

SWOT Analysis. Strength • Low-cost apparel goods such as pillows, cushions, and blankets made from recycled clothing. • T-cycle makes use of what they already have rather than developing new things that need a large amount of nonrenewable resources, and the process of creating a product is ecologically beneficial. • T-cycle has a revolutionary business concept involving the conversion of old clothing into various needed items via the use of shredding machinery..

Porter’s 5-forces. Threat of Entrants Threat of substitute Products Bargaining Power of Buyers Bargaining Power of Suppliers Rivalry Among Existing Competitors However, the industry that T-cycle incorporated is novel and limited. The operational cost of business set up and strategies could be achievable and there is medium risk of new entrants in this business. Likewise, the current world is focusing on environmental conservation and our idea could be a vision for other new start up corporations. T-cycle products incudes pillows, cushions and blankest which are easily accessible on stores such as H &M and Kmart. However, the meaningful impact to environment and cheaper price would make T-cycle’s substitutes products threat low. Additionally, people are reusing their old clothes as another form of clothes by recycling. Although having great vision of T-cycle, being a new business must rely on customer’s satisfaction and cheaper price. The bargaining power of T-cycle is between medium and low because the price is already cheaper, and company has a great vision of recycling old clothes. T-cycle would need to bring more variation on its product and try to higher qualities by adding materials as silk and cotton with old, shredded clothes. The bargaining power of suppliers for T-cycle is medium because they collect the unwanted old clothes that has not been used properly. People would be more satisfied due to that solution because there has been poor management of old, unwanted, and seasonal clothes. The shredding equipment and innovative idea of recycling old clothes is unique and novel in Australian recycle market. The competition is relatively low for T-cycle however, the brand recognition and marketing would be a major concern for T-cycle..

Situation Analysis (Problem Statement). Because of the covid pandemic, overall income will drop by 24 percent, to 5.9 billion pounds, from January to September 2020. (Mintel, 2020). Due to the covid epidemic, T cycle does not spend as much in marketing. There has been a consistent rise in online buying activities as a consequence of the pandemic. T cylce does not participate in online shopping because to poor profit margins and high shipping costs, especially when considering the profitability of low-cost apparel. (Mintel,2020).

Inventory. There must be sufficient storage space and organisation of the requisite amounts of goods in the storeroom. The failure to achieve the levels of profitability necessary as a result of inadequate stocks is a major problem. The fact that the apparel they have selected is out of stock or unavailable at the time they demand will not sit well with those who have placed an order online. As a result, it must meet all of the needs and requirements for the upkeep of inventories and inventory records (Bergh 1\2016).The owners should also give consideration to the possibility of giving discounts near the season's end in order to transfer the excess inventory that has resulted as a consequence of the narrowing of profit margins.They must use caution in setting the prices of the items in such a way that the shop will benefit from the sale of the products. Due to the fact that this is a new company, the owners may also have to negotiate with clothes wholesalers in order to set up a scheme for purchasing back the leftover clothing stock that is now in the firm (Nielsen 2015).

Finance. The following are the most important aspects in developing a financial plan: Maintaining a profit margin of around 15 to 20 percent while also paying careful attention to daily expenses as well as the cost of products sold are all important considerations. The goal is to turn inventory around about five times while still generating revenue. Through the use of social media and other forms of advertising, it is possible to increase awareness while also increasing sales..

Balance Sheet. Cu rrent Assets Accounts receivable Total current assets Fixed (Long-Term) Assets Vehicles Eq uipment (Less accumulated Intangible assets Total fixed assets Total Assets Current Lia bilities Accounts payable Bank Charges Payable Short-term loans Accrued salaries and wages Current portion Of long-term debt Total current liabilities Long-Term Liabilities Long •term debt Less: Loan Repayment Total long-term liabilities Owner's Equity Owner' s investnwnt Net Profits Total owner's Total Liabilities and Owner's Equity S 106,050 ss86,oso S127,500 S" 3,550 S IO.(KÅ) s 150,000 S232,220 S264.S(H) s6.930 S216,830 S713,550 S137,OSO S520,ooo S6S7,oso S22,400 S12,800 S51,200 S708,250 S25,ooo S3.ooo S227,765 S90,ooo S7.500 S236.700 S225,ooo S7.735 S243.78S S708,250 S124,650 S749,6S0 s17,920 SIO,880 s.42,240 S791,890 S27,ooo S3.0(K) S12,ooo S130.0(K) S228S7S sso,ooo S248.7%) S275,ooo S16.275 S314S2S S791,890.

Profit and loss Forecast. PROFIT AND LOSS FORECAST Year Revenue Cost of sales Gross rofit Gross Mar in Ex enses/overheads Premises rent, rates Wa es and salaries General ex enses Accountant Fees Pa 11 Tax Utilities Sales and Marketin Posta e and Tele hone Re airs and Maintenance Website Develo ment Ex Lease Pa ents Total nses/overheads Profit before tax Tax Profit after tax Transfer to reserves o o o 1 480,000 330,000 150,000 473,070 18,000 8,000 2,250 20,000 3,800 15,000 18,000 1,650 2,500 35,000 14,000 140,100 2,970 6,930 2 520,000 375,000 512,265 18,000 10,000 2,450 20,000 4,100 17,500 20,000 I ,850 2,750 35,000 16 ooo 133,950 11,050 3,315 7,735 11,050 625,000 608,725 20,000 2,150 19 141,750 23,250 6,975 16,275 23,250.

Common Financial Ratio Forecast.

Buisness model. KEY PARTNERS Suppliers, upstream and downstream capabilities KEY ACTIVITIES Activity entities KEY RESOURCES Capabilities VALUE PROPOSITION What are our differentiators and value drivers? CUSTOMER RELATIONSHIPS How do we engage? CHANNELS How do we serve our customers? REVENUE STREAMS CUSTOMER SEGMENTS What are the clusters of customer needs ? COST STRUCTURE Where are our principal costs, how do they vary? Where does our income come from?.

Competitive Strategy & Positioning. T-cycle is a revolutionary company concept however there are several closely relator rivals who are performing excellent in terms of revenue and brand awareness across Australian and globe. The sales of second-hand fashion retailers have been dramatically rising in Australia and globally. According to the 2020 resale study issued by ThredUp which is a US based charity shop, the second-hand market encompassing both online and instore is anticipated to reach $36 billion in 2024 and quadruple by 2029 ( Masige , 2020). Similarly, a designer named Christopher Raeburn has established a new collection shop called Raeburn by gathering leftover military goods from the U.K and Europe which has formed following results of COVID-19 and environmental concerns (Conti, 2020). There is a vast potential market for the recycle business and competitive strategy analysis would enable T-cycle to fulfil its aim.

PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis:.

Recommendation. • Further segmentation in order to find and create new product lines • Development of an online platform (e-commerce website) • Gathering market knowledge • Obtaining endorsements • Visual Merchandising and the application of technology into retail establishments.

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