Overestimating growth and income projections
Try to steer away from the temptation of writing overly rosy predictions about how your clothing line will perform in the market. This may seem like a good idea when presenting your plan to investors, but promising too much too quickly can put an enormous amount of stress on your company to fulfill its promises.
Instead, dial down projections to a reasonable level and simply aim to exceed those expectations. Banks and private investors understand how small businesses work, so don’t feel compelled to put up big numbers right away. People with experience in financing clothing lines likely won’t expect enormous short-term returns.
Focusing too much on the details
While you want to avoid a vague business plan, it’s also important to avoid getting too bogged down by tiny details. If you’re not careful, you could end up with something close to the size of an encyclopedia instead of a clothing line business plan. Be as concise as possible when writing each section or you may run the risk of overwhelming your readers with superfluous information.
Making a business plan with all pros and no cons
A business plan that isn’t honest reads more like a sales pitch than a professional strategy for building a fashion brand. Don’t shy away from sharing the potential downsides of your venture, the challenges facing a business like yours, and how these challenges could affect your bottom line.
Few investors will dismiss a business plan because it contains an element of risk or uncertainty. In reality, many readers will appreciate the accuracy of the information presented, making them much more likely to seriously consider your business plan.