Business Plan for a Home Based Jewelry Business-Anurag Srivastava
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Post on 22-Nov-2014
BUSINESS PLAN FOR A HOME BASED JEWELRY BUSINESSSUBMITTED BY: ANURAG SRIVASTAVA TD VIIDESCRIPTION OF OPPORTUNITY AND ITS POTENTIALAs a jewelry designer, you can make your pieces from scratch or you can buy your supplies or jewels from a wholesaler. Rings, bracelets and necklaces can be created from many materials, too. The more creative you get with your materials, the more you can (often) sell your jewelry for. In fact, the jewelry business has become more and more popular over the past few years as people realize their calling isnt to sit in some office cubicle all day passing paperwork.Valuable skills/Requirements you should find a niche market, and work directly with customers to design the perfect custom piece of jewelry, allowing them to select the stone or material themselves. This is a creative business, but it is easy to learn the skills on your own orfrom training materials available on the Internet. If you are creative and have the ability to envision a design and bring it to thefinished product stage, you may not need to take any courses at all! However, you should check out a bookstore or Amazon.com to get someinformation on tools and tricks of the trade.BUSINESS PLAN COMPANY PURPOSE:Designing, making and selling HOME BASED JEWELERY made by recycling unused materials. PROBLEM:Nature-loving customers look for creative and eco-friendly jewelry. Customers want to try something different from the conventional jewelry. SOLUTION:Encouraging recycling of unused materials for daily-wear purposes, jewelry being a womans best friend. Promoting eco-friendliness and catering to customers who want to buy eco-friendly jewelry for various purposes- following the GO-GREEN MANTRA. WHY NOW? Following the trend of GO-GREEN, saving Mother Nature. Increasing awareness among the customers encouraging use of eco-friendly and organic materials. TARGET MARKET We aim at identifying a niche market, and work directly with customers to design the perfect custom piece of jewelry, allowing them to select the stone or material themselves. COMPETITION: Many companies are focusing on the use of recycled materials like, Fab India, contemporary window, Kalakshetra, etc. Our Competitive Advantage: Custom made jewelry: Working directly with customers to design the perfect custom piece of jewelry, allowing them to select the stone or material themselves.PRODUCT Product Range: Necklaces, Anklets, Bracelets, Earings, Rings, Toe rings, Bangles, Nose rings, and other decoration articles. Product Features: Using natural and unused scrap materials, e.g., bamboo, banana fiber, jute, metal pieces (bottle cans, caps), wood scrap, recycled paper, dried leaves, natural coloring material, stones, etc. Products will be HAND-MADE, thereby employing labor and avoiding any kind of machine/power use. Product Roadmap: Building an interactive website, enabling the customers to choose and design the appropriate jewelry based on their likings and issuing online orders with other special requirements.BUSINESS MODEL Initial investment = Rs. 20,000/- to Rs. 50,000/ Cost price (materials, labor charges, promotion and publicity, overheads, etc.) = Rs. 50,000/- per month Selling Price = Approx. Rs. 549/- to Rs. 44,999/- (depending upon the design complexity varying with the material used and the product)ESTIMATION OF THE OPPORTUNITY BASED ON THE 7 DOMAINS 1.MICRO LEVEL MARKET ASSESSMENT: (A) MICRO LEVEL QUESTIONS ABOUT TARGET MARKETS Is there a target market segment where we might enter the market in which we offer the customer clear and compelling benefits, at a price he or she is willing to pay? Yes, we are aiming at Niche Market where the customers are willing to pay more for EcoFriendly products. Are these benefits, in the customers minds, different from and superior in some way better, faster, cheaper or whatever to whats currently offered by other solutions? Our products are CUSTOM-MADE, faster, better and cheaper than jewelry made of metals like Gold, Silver, Platinum, Diamond, etc. How large is this segment, and how fast is it growing? Segment targeted is niche but it is growing at a fast pace due to the increasing awareness of people about organic products. Example:Is it likely that our entry into this segment will provide us entry into other segments that we may wish to target in the future? Yes, this segment provides us the opportunity to venture into marketing of other products such as Home Dcor, Furniture, etc. in the near future. b) Three ways to define market segments Who the customers are i.e demographic terms (age, gender, education, income etc) if it is business to business, then it will refer to the industry in which the customers do business, plus firm size and firm characteristics. The target customers are of High-Society, Nature Loving. Age group: any Gender: Both 2 . Where the customers are in geographical terms? We are targeting at Urban cities.By how the customers behave (life style terms) or in business to business how the products may be used.Our products include Office-wear, Casual wear, Party wear, etc. c) The micro market test 1. What customer pain will your offering resolve? How strong an incentive do customers have to give you their money? Will customers buy what you propose to offer?Nature-loving customers look for creative and eco-friendly jewelry. Customers want to try something different from the conventional jewelry. Who precisely are the customers that have the pain? The target customers are of High-Society, Nature Loving.What benefits does your offering provide that other solutions dont? Our products are CUSTOM-MADE, faster, better and cheaper than jewelry made of metals like Gold, Silver, Platinum, Diamond, etc.Does the target market have the potential to grow? Yes, Segment targeted is niche but it is growing at a fast pace due to the increasing awareness of people about organic products.Are there other segments that could benefit from a related offering? Yes, there are other segments that could benefit from a related offering. Can capabilities that are transferable from one segment to another be developed? Yes, capabilities like venturing into new products like Home Dcor, etc can be transferred from one segment to another.2.MACRO-LEVEL MARKET ASSESSMENT 1. What sort of business is sought? One with potential to become a hugebusiness, or a small lifestyle operation? Its is a Home-Based Business, with potential to become a huge businesstargeting the High Society segments as well as the International Clientele. 2. How large is the market? The target market is Niche, including the Domestic segments as well as theInternational Clientele. The target customers are of High-Society, Nature Loving. Age group: any and Gender: Both\. How fast can it grow? Segment targeted is niche but it is growing at a fast pace due to the increasing awareness of people about organic products.How quickly can it grow in the next six months or two/three/five years? Segment targeted is niche but it is growing at a fast pace due to the increasing awareness of people about organic products.5. What economic, demographic, socio cultural, technological, regulatory or natural trends can be identified and how will it affect the business?Following the trend of GO-GREEN, saving Mother Nature. Increasing awareness among the customers encouraging use of eco-friendly and organic materials.3.MACRO-LEVEL INDUSTRY ASSESSMENT a) Five macro-level questions to assess your industry: Threat of Entry Is it difficult for companies to enter this industry?No, its a fast growing industry. Supplier power Do suppliers to this industry have the power to set terms and conditions?We are our own suppliers. Buyer power Do buyers have the power to set terms and conditions?Yes, the products are custom made Threat to substitutes Is it easy or difficult for substitute products to steal the market?No, it is not easy for substitute products to steal the market. Competitive Rivalry Competitive rivalry is genteel. Is competitive rivalry intense or genteel? b) The Macro Industry test: 1. What industry will you compete in? Our business competes in eco-friendly jewelry and other Home Dcor products in near future. 2. Based on all five forces, what is your overall assessment of this industry? Just how attractive or unattractive is it? Our business is very attractive for nature loving customers who want to try something new. 4.MICRO-LEVEL INDUSTRY ASSESSMENT How long will it take to attract customers? Not much of time, less than a month. How quickly will customers pay? On delivery, conditions apply. How slowly will suppliers and employees be paid? Monthly basis.5.THE MISSION, PERSONAL ASPIRATIONS AND RISK PROPENSITY TEST FOR ENTREPRENEURS:Whats your entrepreneurial mission? Encouraging recycling of unused materials for daily-wear purposes, jewelry being a womans best friend.Promoting eco-friendliness and catering to customers who want to buy eco-friendly jewelry for various purposes- following the GO-GREEN MANTRA.2. Will you risk your home or time with your family or loved ones? No, we will not risk our home or time with our family or loved ones. 3. Do those you love accept the risks you will take? Yes, very supportive. 6.THE CAN YOU AND YOUR TEAM EXECUTE? TEST What are the few - only a handful, please critical success factors (CSFs) inyour industry? What support can you provide to show that youve identified them correctly? Fast-growing industry, aware customers, Go-Green scenario, customizedproducts. Alternatively, have you identified which CSFs your team is not well preparedto meet, for which you need help in filling out your team? We dont have proper permanent suppliers, we are relying on the scratchmaterials so replication of our products cannot be guaranteed. 7.THE CONNECTEDNESS TEST Who do you and your team know up the value chain in the companies that are likely suppliers to your proposed business and to your competitors? In suppliers to companies in other industries that offer substitute products for yours? Scrap material dealers. Who do you and your team know down the value-chain among customers you will target, both today and tomorrow? Our high-society colleagues and friends, family and relatives, our NRI friends.
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