Textile Shop Business Plan [Sample Template]
By: Author Tony Martins Ajaero
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Are you about starting a textile shop? If YES, here is a complete sample textile shop business plan template & feasibility report you can use for FREE .
Okay, so we have considered all the requirements for starting a textile shop. We also took it further by analyzing and drafting a sample textile shop marketing plan template backed up by actionable guerrilla marketing ideas for textile shops. So let’s proceed to the business planning section .
It has been proven over and over again that businesses that are worth going for are businesses that people need their services or products from time to time.
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A business like textile shop falls into this category; you can be certain that there would be ceremonies at least once in a week in your city or town and people will always shop for textiles. So, if you are looking for a business to start as an aspiring entrepreneur who has interest in selling stuffs, then one of your options is to open a textile shop in your city.
One good thing about this type of business is that you don’t need to enroll in a conventional school to learn how to start and run the business; it is a business that requires basic business skills such as customer service, accounting, bargaining, networking and of course overall business management skills.
If you have decided to start a textile shop business, then you should ensure that you carry out feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching the business.
Below is a sample textile shop business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Textile Shop Business Plan Template
1. industry overview.
Textile shops fall under the Fabric, Craft and Sewing Supplies Stores industry and players in this industry basically retail sewing and craft supplies, fabrics, patterns, yarns, needlework accessories, seasonal decorations and related stuffs.
A study conducted by IBISWORLD reported that fabrics are expected to account for the majority of the industry revenue in 2017, representing roughly 60.3 percent of total sales. This segment includes fabrics, such as cotton, satin, silk and corduroy, that are used for apparel construction, home decor and quilting projects.
This segment has experienced a moderate rise in its share of revenue over the past five years. Driven by the do-it-yourself (DIY) fashion, a growing number of Americans have started creating their own clothes and household decor items.
As a result, demand for fabric materials has increased. Sewing and craft supplies account for 37.0 percent of the revenue generated in the industry. The Fabric, Craft and Sewing Supplies industry is a thriving and profitable business venture in most countries of the world.
Statistics have it that in the united states alone, the Fabric, Craft and Sewing Supplies Stores industry generates over $4 billion annually from more than 23,437 fabrics, craft and sewing supplies outlets scattered all around the United States of America.
The industry is responsible for the direct employment of well over 46,156 people. Experts project the fabrics, crafts and sewing supplies shop industry to grow at a -1.3 percent annual rate between 2012 and 2017. Hobby Lobby Stores Inc., Jo-Ann Stores and Michaels Stores have a lion market share of the industry.
The Fabric, Craft and Sewing Supplies Stores industry has minimal barriers to entry, with low startup capital and no specific licensing requirements.
The majority of textile shops operate as a one-outlet business and the capital costs of establishing textile retail outlets are not substantial relative to many other retail industries such as department stores with chains of outlets all over the country.
On the other hand, the high level of competition and market saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to start their own textile business. Most players in the Fabric, Craft and Sewing Supplies industry are small to medium size establishments that cater to the local community.
The Fabric, Craft and Sewing Supplies business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner like the average mom and pop business or you can choose to start on a large scale with several outlets in key cities all across the United States of America.
2. Executive Summary
Quincey Couture™ Textile Shop, LLC is a standard textile shop business that will be located in one of the busiest market districts in Baton Rouge – Louisiana.
We have been able to lease a shop that is large enough to fit into the design of the kind of textile shop we intend launching and the shop is located in a corner piece property directly opposite the largest shopping mall in Baton Rouge – Louisiana.
Quincey Couture™ Textile Shop, LLC will be involved in retailing a wide variety of textiles, sewing supplies and accessories such as fabric, patterns, upholstery materials, yarns, needlecraft supplies, sewing machines and seasonal decorations et al.
We are aware that there are several large and small textile shops all around Baton Rouge – Louisiana, which is why we spent time and resources to conduct thorough feasibility studies and market survey so as to offer much more than our competitors will be offering.
We have delivery service options for our customers, and our outlet is well secured with the various payment options. Our customer care will be second to none in the whole of Baton Rouge – Louisiana. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our textile shop.
Quincey Couture™ Textile Shop, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position Quincey Couture™ Textile Shop, LLC to become a leading brand in the textile shop line of business in the whole of Louisiana, and also to be amongst the top 10 textile shops in whole of the United States of America within the first 10 years of opening our first textile shop.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are confident that Baton Rouge – Louisiana is the right place to launch our textile shop business before spreading to other parts of the United States.
Quincey Couture™ Textile Shop, LLC is a family business that is owned by Quincey Maxwell and her immediate family members. She has robust experience, qualifications and skills that will help her grow the business from startup to profitability within the shortest time possible.
Although the business is launching out with just one outlet in Baton Rouge – Louisiana, but there are plans to open other outlets around key cities in the United States of America.
3. Our Products and Services
Quincey Couture™ Textile Shop, LLC is in the fabrics, crafts and sewing supplies industry to make profit and we will ensure we go all the way to make available a wide range of textiles, sewing accessories and other related merchandise to our clients. Our product offerings are listed below;
- Retailing textiles (fabric)
- Retailing patterns
- Retailing sewing supplies
- Retailing upholstery materials
- Retailing yarns
- Retailing sewing machines
- Retailing seasonal decorations
4. Our Mission and Vision Statement
- Our vision is to become the leading textile brand in the whole of Louisiana and also to be amongst the top 10 textile shop brands in the United States of America.
- Our mission is to establish a textile business that will make available a wide range of textiles and sewing accessories at affordable prices to the residents of Baton Rouge – Louisiana and other cities in the United States where we intend opening of chains of textile shops.
Our Business Structure
Quincey Couture™ Textile Shop, LLC is a textile shop that intends to start small in Baton Rouge – Louisiana, but looks to grow big in order to compete favorably with leading textile shops in the United States.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class textile shop business we want to own. This is why we are committed to only hiring the best hands within our area of operation.
At Quincey Couture™ Textile Shop, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions in our organization;
- Chief Executive Officer (Owner)
- Shop Manager
Merchandize Manager
Sales and Marketing Manager
- Accountants/Cashiers
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Shop Manager:
- Responsible for managing the daily activities in the store
- Responsible for overseeing the smooth running of HR
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
- Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
- Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Control goods distribution and supply inventory
- Supervise the workforce
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure quality textiles and sewing accessories are available in our shop
- Responsible for the purchase of stocks for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders for vendors
- Ensures that the organization operates within stipulated budget
- Manage external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volume of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follow up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding sales
- Document all customer contact and information
- Help increase sales and growth for the company
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risk analysis
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make inquiries
- Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits
- make suggestions and encourage purchase of products
- Bag or package purchases and gift wrap merchandise
- Responsible for cleaning the shop facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the shop manager
6. SWOT Analysis
Our intention of starting just one outlet of our textile shop in Baton Rouge – Louisiana is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all across the United States of America.
We are quite aware that there are several textile shops all over Baton Rouge – Louisiana and even in the same location where we intend locating ours, which is why we are following the due process of establishing the business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Quincey Couture™ Textile Shop, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Quincey Couture™ Textile Shop, LLC;
Our location, the business model we will be operating on (brick and mortar shop and online store), varieties of payment options, wide range of textiles and sewing related accessories and our excellent customer service culture will definitely count as a strong strength for Quincey Couture™ Textile Shop, LLC. So also, our management team has what it takes to grow a business from startup to profitability with a record time.
A major weakness that may count against us is the fact that we are a new textile retail store outlet in Baton Rouge – Louisiana and we don’t have the financial capacity to compete with multi – million dollars fabric, craft and sewing supply outlets like Hobby Lobby Stores Inc. Jo-Ann Stores and Michaels Stores when it comes to retailing at rock bottom prices.
- Opportunities:
The fact that we are going to be operating our textile shop in one of the busiest streets in Baton Rouge – Louisiana provides us with unlimited opportunities to sell our merchandise to a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our textile shop; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new textile shop in same location where ours is located. We are not ruling out the fact that unfavorable government policy can also pose a threat to our business.
7. MARKET ANALYSIS
- Market Trends
In this era where the online community is growing rapidly, you would do your business a favor if you create your own online presence. One of the easiest ways to get people to see you as an expert in your line of business is to Instagram and blog constantly about fabrics and fashion styles.
You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter, and others to publicize your textile business.
One smart thing you may do for your business is to prepare a comprehensive catalogue that contains all form of textiles and sewing accessories. Your catalog should be your number one marketing tool so you must ensure that it is well designed and of high quality. You should be ready to always update your catalog when you have new fabrics..
Another key factor that could help you grow your business fast is to leverage on existing platforms. You can join a textile shop owners’ association in your area.
8. Our Target Market
When it comes to selling items that are found in textile stores, there is indeed a wide range of available customers. Our target market won’t be restricted to just a group of people, but all those who reside in the locations where we intend opening our textile shop.
One thing is certain, we will ensure that we only retail quality and affordable textiles and sewing accessories in our shop. In view of that, we have positioned our textile shop to service the residents of Baton Rouge – Louisiana and every other location where our textile shops will be located all over the United States of America.
We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail our supplies to the following groups of people;
- Fashion Designers
- Every adult that resides within our textile shop location
Our Competitive Advantage
A close study of the fabrics, crafts, and sewing accessories shops industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are well prepared to compete favorably with other textile shops in Baton Rouge – Louisiana.
Quincey Couture™ Textile Shop, LLC is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Baton Rouge – Louisiana. We have enough parking spaces that can accommodate well over 20 cars per time.
Our location, the business model we will be operating on, varieties of payment options, wide range of textiles and related accessories and our excellent customer service culture will definitely count as a competitive advantage for Quincey Couture™ Textile Shop, LLC.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the florist industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
Sources of Income
Quincey Couture™ Textile Shop, LLC is in business to retail a wide range of textiles, sewing accessories and related products. We are in the fabric, craft and sewing accessories industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
Our source of income will be from;
- Retailing textiles
- Retailing sewing craft supplies
10. Sales Forecast
One thing is certain when it comes to the textile shop business, if your shop is well stocked and centrally positioned, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Baton Rouge – Louisiana and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the fabrics, crafts and sewing accessories industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
- First Fiscal Year: $120,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $750,000
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown, and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Quincey Couture™ Textile Shop, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents of Baton Rouge – Louisiana.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the fabrics, crafts and sewing accessories industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Baton Rouge – Louisiana.
In other to continue to be in business and grow, we must continue to sell the stocks that are available in our shop which is why we will go all out to empower or sales and marketing team to deliver. In summary, Quincey Couture™ Textile Shop, LLC will adopt the following sales and marketing approach to win customers over;
- Open our textile shop in a grand style with a party for all
- Introduce our textile shop business by sending introductory letters alongside our brochure to tailors and fashion designers, households and key stakeholders in and around Baton Rouge – Louisiana
- Ensure that we have a wide range of textile (fabrics), sewing accessories and other related merchandise in our shop at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our textile shop
- Position our signage/flexi banners at strategic places around Louisiana
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our textile shop
11. Publicity and Advertising Strategy
Despite the fact that our textile shop is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote Quincey Couture™ Textile Shop, LLC.
Quincey Couture™ Textile Shop, LLC has a long – term plan of opening outlets in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Baton Rouge – Louisiana before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Quincey Couture™ Textile Shop, LLC;
- Place adverts on community based newspapers, fashion magazines, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, Snapchat and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Baton Rouge – Louisiana
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise Quincey Couture™ Textile Shop, LLC business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members wear our branded shirt or cap at regular intervals
12. Our Pricing Strategy
Pricing is one of the key factors that gives leverage to retailers, it is normal for consumers to go to places where they can get quality fabrics, sewing accessories and related merchandise at affordable price which is why big players in the industry will continue to attract loads of consumers.
We know we don’t have the capacity to compete with bigger and well – established textile shops, but we will ensure that the prices of all the products in our textile shop are competitive.
- Payment Options
The payment policy adopted by Quincey Couture™ Textile Shop, LLC is all inclusive because we are quite aware that different customers prefer different payment options, but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Quincey Couture™ Textile Shop, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for stocks purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a textile shop business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
- Marketing promotion expenses for the grand opening of Quincey Couture™ Textile Shop, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring business consultant – $2,500
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600
- The cost for shop remodeling – $20,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 )
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking a wide range of fabrics, sewing accessories and other related merchandise) – $100,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $350,000 to successfully set up our textile shop in Baton Rouge – Louisiana.
Generating Startup Capital for Quincey Couture™ Textile Shop, LLC
Quincey Couture™ Textile Shop, LLC is a private business that is solely owned and financed by Quincey Maxwell. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $100,000 ( Personal savings $70,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers they have, the capacity and competence of the employees, their investment strategy and their business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Quincey Couture™ Textile Shop, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our textile, sewing accessories and other related merchandise a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Quincey Couture™ Textile Shop, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of our list of products that will be available in our shop: Completed
- Establishing business relationship with vendors – suppliers of textile, sewing accessories and related merchandise, wedding planners and other stake holders: In Progress
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