Business Plan

This was one of the most interesting parts of the project, but it took a lot of work. A huge thanks to Uldis, who helped organize my chaos. For couple of months I worked around 16 hours per day. I found nighttime to be the best working time for me. I started at 8pm and finished work around noon, when I would go to bed. When I woke up, I’d go back to work. It was a wonderful time.

Because of the unique value of this project, I did a little market study in which I found out that the 13 biggest European countries import men’s underwear in a capacity of 533 million per year.  Clearly I understood that there is no need to be trivial. As the field of action I chose all of Europe and Russia. I made a detailed sales and production plan for next 5 years, which would lead to stable production and a sales capacity of 300 thousand units per year. It was interesting that the second year of working would only occupy 0.28% of the total import market and the company would already have worked to a profit. I created a two-year action plan for myself and all the necessary 78 work candidates. I was convinced that a 1.5 million euro investment, combined with easily attainable materials, would bring an investment return of 29%. Not to mention the projected earnings, because I looked at those from a really pessimistic point of view. I thought that with this product, everything is possible. It turned out to be the opposite; people are not ready to risk such large sums or to take part in these kinds of projects.

I tried to find ways to realize this project and to raise the necessary funds. I cooperated with various financial advisors, all of whom needed a real indication of the consumer market—which is absolutely correct—but in this case, the life cycle of this product cannot be more than 5 years. That meant that everything had to be done very quickly. The plan of development foresaw that on the second year it would be possible to design a full collection of clothing, which would make the company into limited company. From any point of view, if the income would not recover 100% of the contributed capital with briefs, it could be easily done by issuing shares on the stock exchange and with putting out a full line of clothing, where the suits come along with paintings, sweaters come along with caricature, etc. Basically the briefs were only the beginning, and were a tool to make sales channel. They also worked to get fast publicity and were an element for developing marketing connections.

The basic idea of the communication plan was to produce an added value in Moscow, Berlin, Riga; in other words, the transmission of a virtual environment as well as the promotional activities to all countries. Mostly, my intent was to make 3 art centers. In one of the rooms at these centers we would paint the fabric, while in the other room we would create that added value for other products. Everything was thought of through to the very littlest thing, starting the necessary tools and ending with the necessary people. In my mind and elsewhere, everything seemed so real, but I had no money for anything.

This entire plan, no matter how ambitious it might be, was only a small part of the opportunities that would open up in the future. Looking from any point of view, this idea can be an alternative to satisfying the demand for fashion products, and somehow even create a new style of fashion, which would combine the design with other art forms. Somehow it would let us produce consumer products, but also make them absolutely unique and unforgettable. In its own way this idea is revolutionary.

I had no money: interests without money are many, but it is impossible to evolve without resources. Only capital can raise capital – the law of market. I was never focused on profit, but I always thought of profit as the thing that would be needed for the shareholder. I had to look for other routes.

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