Introduction
It is important to note that apart from creating a new small business plan, the latter needs to be evaluated by conducting a comprehensive feasibility analysis. The given analysis will primarily focus on four core areas constituting the business feasibility of Im His Priority®. These include industry and market feasibility, product or service feasibility, financial feasibility, and entrepreneurial readiness. The assessment reveals the business is feasible, but minor modifications are needed.
Industry and Market Feasibility
Firstly, the industry and market for Im His Priority® are competitive, and the business will only be feasible through a strong brand identity and marketing. Porter’s Five Forces Model can be used for this aspect of the evaluation (Scarborough & Cornwall, 2015). It comprises five major elements: “the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and competitive rivalry” (Bruijl, 2018, p. 1).
Regarding potential entrants, the barriers are relatively low, and substitutes, such as religious-themed jewelry, offer alternative ways for individuals to express their faith. Both suppliers and buyers in the faith-based clothing market hold bargaining power, with suppliers impacting the cost and quality of the product and buyers having a variety of alternative brands to choose from. For rivalry in the industry itself, it can be stated that competition is high. Still, Im His Priority® can differentiate itself with its unique focus on empowering women and girls and commitment to high-quality, fashionable clothing.
Product or Service Feasibility
Secondly, Im His Priority® mainly offers products to its customers. It is stated that market research and census data are effective ways to conduct a product feasibility analysis (Scarborough & Cornwall, 2015). Evidence suggests that almost 60% of women consider religion as ‘very important,’ indicating a large market for the product (Pew Research Center, 2023).
In other words, a significant portion of the adult women’s population would be interested in expressing their religiosity through faith-based clothing. It is a positive sign for product feasibility due to the sheer size of the potential market. In addition, the rising trend of personal expression through fashion underscores the potential success of Im His Priority® in today’s market (Pew Research Center, 2023).
In addition to the large base of religious women, the brand could attract those who are seeking unique, meaningful clothing that allows them to express their individuality and beliefs. Thus, based on the cultural trends and the substantial potential market, Im His Priority®’s product feasibility appears promising, positioning the brand for potential success in the faith-based fashion industry.
Financial Feasibility
Thirdly, the business is financially feasible because it is inexpensive due to being a sole proprietorship. This part will focus on estimated earnings and return on investment (ROI) because the business model is non-complex (Scarborough & Cornwall, 2015). The initial investment will be $30,000, including costs related to website development ($2,000), product design and initial production ($2,500), and legal expenses for business registration and trademark registration ($500). As mentioned, the main ongoing cost would be boosting social media presence. A budget of $500 per month or $6,000 per year is estimated.
The cost of printing on clothes is relatively inexpensive ($10), and the cost of an average-quality shirt is around $20. Since it will be sold with a $5-10 markup, an annual net profit of $24,000-$54,000 is projected after all clothing, printing, and social media costs have been subtracted. The ROI after the first year would range between 80% and 180%. Even with this increased initial investment, Im His Priority® remains a financially feasible venture, capable of generating a substantial return.
Entrepreneurial Readiness
Fourthly, based on the observations above, it can be stated that entrepreneurial readiness is high. The main reason is that the proposed business model is adjustable for the most part, which means that proving that a viable market exists can be done without losses (Scarborough & Cornwall, 2015). The initial investments, such as the website, are not significant.
In the case of social media marketing and clothing stocks, they can be increased or reduced depending on demand. For example, if there are problems with clothing stocks or the printing rate, social media ads can be scaled down to reduce demand. In addition, the market pool is large, meaning even taking on a small portion offers enough income to sustain the business.
Conclusion
Lastly, the business needs to be slightly modified to be focused on brand building. Instead of pure social media advertisement, it should emphasize building brand identity by associating itself with faith-related influencers. It will likely perform without losses on small revenues, but the business must stand out to scale.
If the brand can collaborate with proper influencers, it will be able to capture a larger market share and build its brand quickly through the partnership. Thus, the initial investment will need to be increased, and relevant influencers will need to be identified. It could be YouTube bloggers who practice Christianity with many followers or popular pastors who preach online. Local community church events can also be used to promote the brand. In other words, the business should not be about the clothing itself but rather the brand, which can be popularized by being active within the community through collaboration with bloggers.
References
Bruijl, G. H. T. (2018). The relevance of Porter’s Five Forces in today’s innovative and changing business environment. Social Science Research Network, 2, 1-22. Web.
Pew Research Center. (2023). Religious landscape study. Web.
Scarborough, N., & Cornwall, J. (2015). Entrepreneurship and effective small business management (11th ed.). Pearson.