1.0 Executive Summary

1.1 Introduction

Best Lady Selection point is a retailer and wholesaler of unique gold jewelry. Best lady selection point stocks different designs of jewelry in form of pendants, ribbons and wristbands. All these products are outsourced from China and Japan. In order to grow and remain relevant in the market, the proprietor has decided to increase the number of designs offered to customers by 10% annually.

1.2 The market

Best lady Selection point will be focusing on two different groups of customers. The first group will consist of the direct consumer of the products (retailers) and the other group is the wholesalers who will also be used as a distribution channel. The retailers will be interacting with McCain (proprietor) via his website or directly at the shop. The wholesalers will be met through exhibitions and shows.

 

1.3 Financial considerations

Best lady Selections Point will be financed owners savings and topped up with short term bank loan. The business is expecting to bypass its break-even point at the end of first year. Over the next three years, the business is expecting to earn annual sales revenue of 80000€.

 

 

1.4 objectives

• To increase the number of customers by 10% annually.
• To develop a profitable business for further extension in other countries.
• To develop jewelry manufacturing company to reduce the costs of importations.

 

1.5 Mission Statement

Best Lady Selection point mission is to offer the most unique jewelry to customers in order to attract and maintain them. The services that will be offered is expected to exceed customers expectations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.0 INITIALSITUATIONS

2.1 Location

Best Lady Selection point will be located in Naks Town, KSA. The location is relevant for the business as it is highly populated and attracts people from all parts of the state.

 

2.2 Business ownership

Best Lady Selection point is a sole proprietorship owned by McCain. The importance of starting this business as a sole proprietor is to eliminate the liabilities of little concern(Finch, 2013).

 

2.3 start-up summary

The start-up costs for Best Lady Selection point will include the following items.

• Legal fees
• Website creation fees
• Office furniture
• Computer
• Business stock

 

The following is a summary of the start up requirements,

Start-up Expenses

Legal	600
Stationary	200
Website development	500
Others	150
Total start-up expenses	1450
Start-up Assets
Cash required	12750
Business stock	2800
Long term assets	15550

 

Start-up funding

Start-up expenses	1450
Start-up assets	15550
Total funding	17000
Non cash assets	2800
Owners equity	10000
Additional cash	2750
Cash at start-up	12750
Total assets	15500
Capital and Liabilities
Liabilities
Short term loan	7000
Other current liabilities	0
Owners equity (McCain)	10000
Start-up expenses	-1450
Total capital	15550
Total funding required	15500

3.0 business concept

3.1 products

Best lady Selection point stocks gold jewelry. This jewelry are mostly in the form of pendants, wristbands and ribbons. They are made of gold and wrapped on nice leather boxes designed using chopad style. In addition, the colors of all the brands are powdered with rose and gold crafted letters attached. This feature will make the business products unique in the market and, therefore, attract more customers. The following are the different ranges of stock that will form part of my stock,

• Classical, clean and graceful jewelry
• Pendants made of solid gold/rose gold or gold plated
• Fine leather jewelry boxes
• Silk ribbons in vivid colors instead of the regular gold chains
• Lab created diamonds-a much distinct brand in the market
• Wristbands with charm

McCain has chosen gold jewelry in favor of the unique features. It is appealing to the public and durable. The overall pricing of these products is consumer friendly and is, therefore, expected to attract more customers. The prices of silk ribbons with gold made pendants will retail between 200 to 300, while wristbands with charms will retail between 150- 200.

 

 

 

 

4.0 Marketing Concept

Best Lady Selection point will mainly be focusing on two distinct groups of consumers. One is the retailer and the other is the wholesaler. The retailer will interact directly with McCain via the business website or directly at the business location point. The wholesalers, who will also act as distribution agents, will meet the customers in exhibitions and shows where they will build and sustain a long lasting relationship.

 

4.1 market segmentation

Best lady Selection Point has two main targets of its products, individual consumers (retailers) and wholesalers.

• Individual consumers (retailers) – This group of customers is expected to be familiar with Best Lady Selection point either through browsing through the website, vising the shop or via advertisements in billboards, posters etc.These customers will view the different brands of jewelry available in the website and then place their orders via the website or through emails. This marketing strategy is effective as no distribution costs are incurred and, therefore, raises the profit margin of the business. As a matter of fact, this strategy of marketing will be of great aid to the 20-35 age groups who are the majority users of internet services. In addition, this type of artistic work will generally attract those individuals in the cities, therefore, giving Best Lady Selection Point an upper hand due to its location.
• Wholesalers- This group of customers will mainly be purchasing jewelry in wholesale directly from the shop and distribute to the customers, who are away from the city center, which forms the location of the business. McCain will only contract artisan jewelry shops on the outskirts of the business premises as its sole distributors. Though the profit margin will not be as good as direct sales to customers, wholesalers will ensure good promotion of the products. In addition, creating a long lasting relationship with a third party may also affect sales volume but McCain will put necessary measures to ensure his objective of increasing the number of customers by 10% per year.

4.2 Target market segment strategy

Best Lady Selection point is targeting individuals and wholesalers for the simple reason that they are the majority consumers of jewelry products. The target strategy for individuals will see this group of customer visit the shops exhibition and purchase the products from McCain himself. Similarly, individuals will be referred to the business website, where a complete listing of the variety of products available on stock is made. They can then place their orders online or visit the nearest certified Best lady selection Point approved agent.

On the other hand, the approved wholesale agents of the products will purchase from McCain Shop, where they will be given samples. In case they will be interested, they will purchase small quantities as a long relationship is established. Once the relationship is established, they can purchase in large quantities for distribution to customers.

4.3 industry analysis

As per today, the jewelry industry is quite diverse and large. There are infinite numbers of proprietors in this sector. Additionally, there are also various well established artists specialized in the manufacture of these products. Some of these manufacturers sell to departmental stores, via websites or sell directly to consumers. Most people distribute their jewelry locally while others have national wide connection. It is for this reason that this business plan will have a comprehensive section to counteract the stiff competition that is in the market. Generally, competition takes the following form,

• Companies that have their own in house designers. In this case, everything is done within the company premises such as designing, marketing as well as wholesaling.
• Artists who design and manufacture jewelry on large volumes and distribute throughout the country. In most cases, these people are famous and have national recognition and make a lot of sales.
• Proprietors such as McCain, who outsource his jewelry from abroad (China and Japan) and then sell to customers directly or through his appointed agents.

In this industry, the buying patterns of consumers can be broken into two types: the impulse purchases and gift purchases. Impulse buying is where a person who is doing shopping buys something that he or she is not in need of. They will just see an item and buy it. On the other hand, a gift purchase occurs when a person is looking for a gift for somebody else. The person sees the jewelry and purchases it. Here, the plan was to make a purchase and him or her new where to make that purchase. Lastly, another rare buying pattern occurs where someone was looking for an outfit that will match an accessory and comes around jewelry.

5.0 Course of business, organization and planning

5.1 Course of the business

Best Lady Selection point is a start-up business in a market that is dominated by large companies and manufacturers of jewelry products. To gain acceptance in the market, McCain will first extensive campaigns and promotions using the most relevant advertisement channels. As a matter of fact, the creation of an all inclusive website will act as a vital tool in popularizing the products in mind. In addition, all the products and stock available in the shop will made available in business website which will also be made on the various social media sites available. The fact that Best Lady Selection point will deal with gold and in addition wrapped with genuine leather bands will be significant in the market(Abrams &Kleiner, 2003).

The hours of operation of the business will be from 0700hrs to 2100hrs in the shops premises. However customers will have access to view the various products available on the websites on a 24hr platform. Within the first year, the business is expected to establish one shop in Kingdom Saudi Arabia (KSA) and one in Dubai. Customers will be trading within these stalls via the business homepage.

 

5.2 Organization

Best Lady Selection will be owned and operated by McCain. It will be a sole proprietorship form of business. Since, childhood, McCain has always had passion for jewelry. At his young age, he spent most of his free time with his mother on jewelry stores and demanded for the latest designs. It is that passion of love of jewelry that led him to the university where he pursued a degree in Arts.

 

6.0 IMPLEMENTATION AND PLANNING

Best ladyselection point is McCain’s own business opportunity. Using the skills gained from school and lifetime experience, McCain hopes to fit well in the industry despite the huge competition that is prevailing. McCain hopes to cease from handling all sales activity individually and plans to appoint a sales representative that make him accomplish his goals.

 

6.1 Competitive edge

Best Lady Selection point competitive edge is fairy simple. It is based on unique products that distinguish themselves from similar products in the market. Additionally, McCain is highly skilled in what he does is very cautious of his customers.

6.2 Sales strategy

Best Lady Selection will utilize a sales strategy of appointing a sales representative, that will ensure that the business unique products are circulated everywhere within the country. To do this, two methods have to be applied. The first one is through customers visit to the shop where they will be informed on the qualities of different brands of their choice. The second method is through website, where customers will place their orders online(Truitt, 2002).

6.2.1sales forecast

During, the first month, McCain will set up the work quarters and start building on stock. The second month will be utilized by visiting the appointed sales representatives. Sales activity will marked from the third month. From the third month, sales are expected to increase tremendously. In addition, Main will be spending at least one week per month visiting his agents and getting feedback from them. This is expected to continue until the ninth month where McCain will employ a person to be vising the agents. This will allow McCain to concentrate with his work and increase his sales.

 

Sales Forecast
	Year 1	Year 2	Year 3
Sales
Retailers (Galleries)	$21,593	$38,874	$45,785
Individuals	$17,708	$23,545	$29,874
Total Sales	$39,301	$62,419	$75,659
Direct Cost of Sales	Year 1	Year 2	Year 3
Retailers (Galleries)	$3,239	$5,831	$6,868
Individuals	$2,656	$3,532	$4,481
Subtotal Direct Cost of Sales	$5,895	$9,363	$11,349

7.0 Financial Plan

In this section, I have included important financial information that will be very useful to donars and investors.

7.1 Important Assumptions

This business plan assumed the following,

 

General Assumptions
		Year 1	Year 2		Year 3
Plan Month		1	2		3
Current Interest Rate		10.00%	10.00%		10.00%
Long-term Interest Rate		10.00%	10.00%		10.00%
Tax Rate		25.42%	25.00%		25.42%
Other		0	0		0

7.2 Break-even Analysis

The chart and table below shows the break even analysis

 

 

Break-even Analysis
Monthly Revenue Break-even	3,879
Assumptions:
Average Percent Variable Cost	15%
Estimated Monthly Fixed Cost	3,297

7.3 Projected Profit and Loss

 

Pro Forma Profit and Loss
	Year 1	Year 2	Year 3
Sales	$39,301	$62,419	$75,659
Direct Cost of Sales	$5,895	$9,363	$11,349
Other	$0	$0	$0
Total Cost of Sales	$5,895	$9,363	$11,349
Gross Margin	$33,406	$53,056	$64,310
Gross Margin %	85.00%	85.00%	85.00%
Expenses
Payroll	$27,500	$32,400	$32,400
Sales and Marketing and Other Expenses	$5,200	$1,200	$1,200
Depreciation	$936	$936	$928
Leased Equipment	$0	$0	$0
Utilities	$600	$600	$600
Insurance	$1,200	$1,200	$1,200
Rent	$0	$0	$0
Payroll Taxes	$4,125	$4,860	$4,860
Other	$0	$0	$0
Total Operating Expenses	$39,561	$41,196	$41,188
Profit Before Interest and Taxes	($6,155)	$11,860	$23,122
EBITDA	($5,219)	$12,796	$24,050
Interest Expense	$0	$0	$0
Taxes Incurred	$0	$2,965	$5,877
Net Profit	($6,155)	$8,895	$17,245
Net Profit/Sales	-15.66%	14.25%	22.79%

7.4 Projected Cash Flow

 

Pro Forma Cash Flow
	Year 1	Year 2	Year 3
Cash Received
Cash from Operations
Cash Sales	$13,755	$21,847	$26,481
Cash from Receivables	$18,949	$36,692	$46,956
Subtotal Cash from Operations	$32,705	$58,539	$73,437
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$2,000	$0	$0
Subtotal Cash Received	$34,705	$58,539	$73,437
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$27,500	$32,400	$32,400
Bill Payments	$16,525	$20,725	$25,078
Subtotal Spent on Operations	$44,025	$53,125	$57,478
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
Subtotal Cash Spent	$44,025	$53,125	$57,478
Net Cash Flow	($9,321)	$5,414	$15,959
Cash Balance	$3,429	$8,843	$24,802

7.5 Projected Balance Sheet

 

Pro Forma Balance Sheet
	Year 1	Year 2	Year 3
Assets
Current Assets
Cash	$3,429	$8,843	$24,802
Accounts Receivable	$6,596	$10,477	$12,699
Inventory	$1,105	$1,755	$2,127
Other Current Assets	$0	$0	$0
Total Current Assets	$11,131	$21,075	$39,628
Long-term Assets
Long-term Assets	$2,800	$2,800	$2,800
Accumulated Depreciation	$936	$1,872	$2,800
Total Long-term Assets	$1,864	$928	$0
Total Assets	$12,995	$22,003	$39,628
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$1,600	$1,713	$2,092
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$1,600	$1,713	$2,092
Long-term Liabilities	$0	$0	$0
Total Liabilities	$1,600	$1,713	$2,092
Paid-in Capital	$19,000	$19,000	$19,000
Retained Earnings	($1,450)	($7,605)	$1,290
Earnings	($6,155)	$8,895	$17,245
Total Capital	$11,395	$20,290	$37,535
Total Liabilities and Capital	$12,995	$22,003	$39,628
Net Worth	$11,395	$20,290	$37,535

 

 

 

 

 

 

 

 

 

 

 

 

8.0 Risks and Sensitivity Analysis

Best lady Selection point will not be exposed to a lot of external threats. McCain has made necessary measures to ensure thathis business is in line with the rules and regulations in the jewelry industry. He has made sure that he has registered his business and acquired the required documents. Apart from the competition that is the market, the proprietor is optimistic that his plan fares well.

9.0 Evaluation of the business

As earlier on stated, Best Lady Selection point is solely owned.  McCain will make sure that he reviews his goals after every three months. This will also ensure that he is working according to his goals and whether he is accomplishing his mission.

 

 References

Abrams, R. M., &Kleiner, E.,2003. The successful business plan: secrets & strategies (4th ed.; Deluxe binder ed.). Palto Alto, Calif.: Planning Shop.

Cones, J. W., 2010. Business plans for filmmakers. Carbondale: Southern Illinois University Press.

Finch, B., 2013. How to write a business plan (Fourth ed.). London: Kogan Page Publishers.

Hughes, G., 1998. Jewelry. London: Studio Vista;.

McKeever, M. P., 2008. How to write a business plan (9th ed.). Berkeley, Calif.: Nolo.

Morton, P., 2000. Contemporary jewelry: a studio handbook (Rev. and expanded. ed.). New York: Holt, Rinehart and Winston.

Ryan, J. D., &Hiduke, G. P., 2003.Small business: An entrepreneur’s businesses plan (6th ed.). Mason, Ohio: South-Western/Thomson Learning.

Truitt, W. B., 2002. Business planning: a comprehensive framework and process. Westport, Conn.: Quorum Books.

 

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