One of One Jewelry Designs specializes in bridge jewelry created as unique, elegant, and contemporary jewelry. Jewelry with a cutting-edge design has always been of interest to a certain class of jewelry buyers. We intend to fulfill that need by researching authentic contemporary designs with fabricated bridge jewelry. Using bridge jewelry metals instead of gold, and precious stone will allow for us to keep our retail price point below $65. This will increase our appeal across all age ranges, and especially in our target market of females under the age of thirty.
General Company Description
One of One Jewelry Design is a Limited Liability Corporation. The business will become an online web-store operational as of December 2009. The purpose is to provide unique wire-wrapped, hand-crafted jewelry to consumers who buy mid-range jewelry for it's one of a kind quality. The art of crafting wire-wrapped jewelry goes back in time at least 4000 years ago. Wire- wrapped jewelry has been found with the relics of the Ancient Phoenicians and the tombs of the once found Egyptians. The art of wire-wrapping jewelry is now flourishing in the United States, Canada and England, with many creative jewelry wire-wrapping artists in each of these countries. The contemporary look of wire wrapped jewelry started in England shortly after World War I. A gentleman by the name of Mr. C. G. Oxley used wire-wrapping as therapy for many veterans at war. His then student, Jim Llewellyn, transported the art of wire- wrapped jewelry to Canada. Mission Statement: To offer a premier level of customer service and professionalism, while providing our clients with a great selection of the most beautiful, unique and one-of-a-kind jewelry skillfully hand-crafted at an exceptional value. Jewelry historically has been purchased by older consumers who's at an age where they could meet the expense of luxury goods, it has been theorized by demographers for many years that jewelry was a "life cycle" buy related to age. They concurred that jewelry demand was determined by both age and income. Therefore, demographically, our target audience is women between the ages of 25-40 years of age. The jewelry industry is in a state of growth. According to analyst Patti Evans of Jupiter Research, the U.S online jewelry sales grew 19.3% from the prior year $2.2 billion or 5.8% (2006) of the total market, while having an expect growth in 2009 of $2.7 billion or a 6.6% market share. With such market growth we plan to offer high-level jewelry made with 10K and 14K gold in the foreseeable future. We have designed a company that can create loyal customers for generational time spans. Our pricing system is a scaled down system based on specific lines that suits our target market across the board. Our customer service is what we believe will take our company into success. When the consumer can reach someone within a company and be catered to for their specific needs it leaves a commitment stamp. We plan to have a 1-800 number for clients to reach us, in which, many hand-crafters don't offer. Chavon has been creating hand-crafted jewelry for two years. She began by stumbling upon a favorite necklace of hers that had broken. She then visited the local bead store for the findings to repair the necklace and while there in the bead store it all began. Chavon began searching the web, buying supplies and tools gaining knowledge of jewelry-making and became a self-taught jewelry designer. Her years of co-managing her husband, who is a musician helped her to understand business and hard-work.
Products and Services
While understanding the notion that many elements in creating jewelry are based on techniques, we plan to expand on these uses of techniques and provide our clients with unique, elegant, and one-of-a-kind meaningful creations that will connect with the buyer/wearer. We plan to capitalize on the use of using quality materials versus costume jewelry materials that use base metals, rhodium, and silver plate. Our jewelry is designed with Argentium (non-tarnish) sterling silver, gold-filled wire and includes semi-precious gemstones, natural stone cabochons, shells and pearls, and Swarovski glass crystals. The sense of design is flowing, contemporary and elegant. The creations include wire-wrapped pendants, rings, earrings, and necklaces. In times of economic pressure it's shown that consumers cut back on discretionary items like jewelry. As a true understanding, the more wealth one has there will be less effect on them during the ups and downs of economic conditions. Therefore, our jewelry will be priced between $30-$65, which will allow us as a company to weather economic swings while offering mid-level bridge jewelry.
Facts about your industry: The jewelry industry on a whole is a $27 billion dollar industry. Fashion jewelry takes up 22% of the market share. The current demand in the fashion jewelry market is sterling silver, and gold filled jewelry. The trends in growth are online selling, and personal tastes in uniqueness.
Features and Benefits
The products that we are initially carrying are:
- Handmade Earrings
- Handmade Rings
- Handmade Necklaces
Our special handcrafted jewelry is featured with Argentium sterling silver and gold-filled precious metals. With such quality materials the consumer benefits include, quality appreciation, pride in purchase, a memory to last forever, and exclusivity of a one-of-a-kind handmade jewelry creation. The after-sale services we will offer will include prompt delivery through the reputable UPS mail and package carrier. Packages will all contain a delivery confirmation to ensure customer purchases. We will guarantee our product through our refund and exchange policies that will be shipped with every package on the invoice and available on the website.
The targeted customers for One of One are women from the Generation Y and Generation X. The buying characteristic of Gen-Yers has shown that they spend an eye-catching $150 billion a year. And they influence another $50 billion in family purchases (Baby Boomers), bumping the total to $200 billion. Generation Y is also, of course, the most digitally world-wise. About nine out of 10 have access to a home computer whereas half have internet access. These groups are also more socially conscious and globally aware.
The demand for jewelry is mostly determined by the disposable income of customers. The increasing amount of wealthy individuals, working women, double-income households and fashion-conscious men has kept jewelry sales strong. When raw material prices fall, jewelry becomes more reasonably priced, and consumer demand elevates. Renewing assurance in the economy has also plays a major role. Online jewelry sales have risen steadily. This has forced retail merchants to adapt and many have moved some sections of their business online. Because jewelry is not often branded, product differentiation is a key point of competition among for One of One Jewelry. High-quality designers are appreciated.
Now that you have systematically analyzed your industry, your product, your customers, and the competition, you should have a clear picture of where your company fits into the world. In one short paragraph, define your niche, your unique corner of the market.
Offer unique, unusual jewelry designs as private label merchandise while creating an opportunity for customers to buy items retailing for under $100, and give the customer a reason to buy through social networking Web sites Facebook, Twitter, and MySpace.
The products of One of One will be produced in a home-based (residential) setting. Explain your methods of:
- Production techniques and costs
- Quality control
- Customer service
- Inventory control
- Product development
The qualities that are present in this location (home) allows for a designated office space that is 12'by 16' to be fulfilling to produce jewelry products. The power and utilities prove to be adequate with white light bulbs for true color. The access to the home-based business serves great for deliveries from suppliers. The hours of operation will run from 10am-5pm.
At this time One of One is looking into trademarking its logo and slogan.
One of One has 2 employees Owner and Co-Owner. The labor that exist between the owners are skilled and professional. At this time One of One is not pursing employees. The owners have a strict schedule of business operations, therefore; provides the quality of each other to speak for itself. The Co-Owner is the jewelry designer and the Owner handles day-to-day business operations.
The inventories that will be kept are supplies, and finished goods. The inventory investment is 15% of bi-weekly sales. The lead time for ordering is 3 weeks.
- MonsterSlayer.com Monsterslayer, Inc. 4187 US Highway 64 Kirtland NM 87417
- Noble Packaging Inc. Noble Packaging Inc. 20 Sand Park Rd. Cedar Grove, NJ 07009
The types of inventory furnished by Monster Slayer are wire and beading components and packaging materials are provided by Noble Packaging. Monster Slayer is my primary source, however; my backup supplier is jewelrysupplies.com. Due to the pricing of Gold and Silver fluctuating we have made a 2% window of budgeting to allow for that.
Management and Organization
One of One is a partnership organized and managed by the owners. Initially, all design, fabrication, and marketing efforts are the responsibility of the owners. As the company grows, these positions will be filled, part-or full-time, as needed. One of One Jewelry Design plans to fund operations principally from cash provided by both gross receipts and owner investments, and will not generally rely upon external sources of financing. The company has in place a jewelry line timed to hit the market at proceeding the holidays of 2009. The company feels sale of this line will provide sufficient cash flow to cover both variable and all operating expenses, with the exception of advertising and marketing, for a one-year period. The company feels cash flow from anticipated sales for this line of jewelry will carry the company at least six months, into 2010. The capital requirements result primarily from purchases of inventory, advertising, and shipping. As the inventory requirements for the jewelry line are known well in advance of production, inventory cash requirements are predictable during the year. Purchasing decisions will maintain a gross margin percentage of 100 percent. Normal jewelry markup is three times this number. However, One on One is a home-based business, lower operating costs will offset the effect of the gross profit margin.
Include details and studies used in your business plan; for example:
- Brochures and advertising materials
- Industry studies
- Blueprints and plans
- Maps and photos of location
- Magazine or other articles
- Detailed lists of equipment owned or to be purchased
- Copies of leases and contracts
- Letters of support from future customers
- Any other materials needed to support the assumptions in this plan
- Market research studies
- List of assets available as collateral for a loan
Refining the Plan
The generic business plan presented above should be modified to suit your specific type of business and the audience for which the plan is written.
For Raising Capital
- Bankers want assurance of orderly repayment. If you intend using this plan to present to lenders, include:
- Amount of loan
- How the funds will be used
- What this will accomplish - how will it make the business stronger?
- Requested repayment terms (number of years to repay). You will probably not have much negotiating room on interest rate but may be able to negotiate a longer repayment term, which will help cash flow.
- Collateral offered, and a list of all existing liens against collateral
- Investors have a different perspective. They are looking for dramatic growth, and they expect to share in the rewards:
- Funds needed short-term
- Funds needed in two to five years
- How the company will use the funds, and what this will accomplish for growth.
- Estimated return on investment
- Exit strategy for investors (buyback, sale, or IPO)
- Percent of ownership that you will give up to investors
- Milestones or conditions that you will accept
- Financial reporting to be provided
- Involvement of investors on the board or in management
For Type of Business
- Planned production levels
- Anticipated levels of direct production costs and indirect (overhead) costs - how do these compare to industry averages (if available)?
- Prices per product line
- Gross profit margin, overall and for each product line
- Production/capacity limits of planned physical plant
- Production/capacity limits of equipment
- Purchasing and inventory management procedures
- New products under development or anticipated to come online after startup
- Service businesses sell intangible products. They are usually more flexible than other types of businesses, but they also have higher labor costs and generally very little in fixed assets.
- What are the key competitive factors in this industry?
- Your prices
- Methods used to set prices
- System of production management
- Quality control procedures. Standard or accepted industry quality standards.
- How will you measure labor productivity?
- Percent of work subcontracted to other firms. Will you make a profit on subcontracting?
- Credit, payment, and collections policies and procedures
- Strategy for keeping client base
High Technology Companies
- Economic outlook for the industry
- Will the company have information systems in place to manage rapidly changing prices, costs, and markets?
- Will you be on the cutting edge with your products and services?
- What is the status of research and development? And what is required to:
- Bring product/service to market?
- Keep the company competitive?
- Protect intellectual property?
- Avoid technological obsolescence?
- Supply necessary capital?
- Retain key personnel?
High-tech companies sometimes have to operate for a long time without profits and sometimes even without sales. If this fits your situation, a banker probably will not want to lend to you. Venture capitalists may invest, but your story must be very good. You must do longer-term financial forecasts to show when profit take-off is expected to occur. And your assumptions must be well documented and well argued.
- Explain markup policies.
- Prices should be profitable, competitive, and in accordance with company image.
- Selection and price should be consistent with company image.
- Inventory level: Find industry average numbers for annual inventory turnover rate (available in RMA book). Multiply your initial inventory investment by the average turnover rate. The result should be at least equal to your projected first year's cost of goods sold. If it is not, you may not have enough budgeted for startup inventory.
- Customer service policies: These should be competitive and in accord with company image.
- Location: Does it give the exposure that you need? Is it convenient for customers? Is it consistent with company image?
- Promotion: Methods used, cost. Does it project a consistent company image?
- Credit: Do you extend credit to customers? If yes, do you really need to, and do you factor the cost into prices?
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