Business Plan: C-Tech, General Company Description

Company name: C-Tech Jewelry
Business plan
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Executive summary
Nearly every woman in our society, no matter what social class they come from, will want to own at least one piece of unique jewelry and this provides a unique business opportunity for customized jewelry. We plan to employ the most sophisticated technology of software design to achieve unique designs and a 3-d printer that will be able to produce the designs. Through technology we can get any shape we want. The most important aim is achieving unique designs that cannot be offered by any other dealer in the industry. Our product aims at infusing different cultures into our design in order to achieve that unique and special design that will stand out. We will mainly deal with gemstones over diamonds since it is cheaper, although we will also make diamond jewelry at the request of our customers. Gold will mainly be used to coat the wax mold produced by our 3-d printer. Designer Gold jewelry will also be made our shop at the request of our clients. After we start operations, we expect to venture into the international market after cornering the local market using our unique design. Our business will be located in one of the busiest states to ensure sales. The initial investment amounts to $100,000 all contributed by the three partners. Our aim is to make double the amount in profits each financial year once the business starts to do well in the industry.
Table of ContentsExecutive summary………………………………………………………………………………………………………………2General company description……………………………………………………………………………….……………….4Product and services……………………………………………………………………………………….…………………….5Marketing plan……………………………………………………………………………………………………………………..5Economic……………………………………………………………………………………………………………………………6Product………………………………………………………………………………………………………………………………7Customers……………………………………………………………………………………………………………..…………..7Competition……………………………………………………………………………………………………………..………..7Niche…………………………………………………………………………………………………………………………….……7Strategy ………………………………………………………………………………………………………………………….…7Distribution channel……………………………………………………………………………………………………….……7Sales forecast…………………………………………………………………………………………………………..………….7Operating plan…………………………………………………………………………………………….………………………….8Production………………………………………………………………………………………………………….………………8Location………………………………………………………………………………………………………………………………8 Legal environment……………………………………………………………………………………..………………………8 Personnel……………………………………………………………………………………………….…………………………….8 Inventory……………………………………………………………………………………………………………..……………..9 Supplies……………………………………………………………………………………………………………………………….9 Credit policy………………………………………………………………………………………………………………..……….9Management and organization…………………………………………………………………………………………..…….9Startup expenses and capitalization……………………………………………………………………….…………………9Financial plan………………………………………………………………………………………………………………...……….10Projected monthly income statement……………………………………………………………………………..10Projected cash flow………………………………………………………………………………………………………….16Initial balance sheet………………………………………………………………………….……………………………..16Manufacturing industry………………………………………………………………………….………………………..16
General company description
We have come up with C-Tech as the name of our partnership which will mainly deal with custom made jewelry. We are going to set up our business in one of the major streets which will occupy one large stall that is to be subdivided into two parts. The front part of the stall will be the display area where customers can come in and check some of our work with the aim of showing them some of our designs they can choose from. The second part will be the customizing area where the machinery will be located and the main work of making the jewelry will be done. Our mission statement, “quality infused with culture” was most appropriate since we are looking to customize our jewelry according to the customer’s cultural background. The statement also captures one of our goals of producing high end jewelry using modern technology to produce the best quality possible. Our main goal is to customize jewelry to match our customer’s culture just like the fashion industry where clothes are mostly inspired by the cultural background of many designers. Our objectives will include;
* Maximizing our return through the sale of quality products
* We will start selling our product at the local market with the aim of expanding to the international market after 7 years.
* Coming up with new designs in order to capture a big percentage of the market.
* We plan to employ modern technology to reduce the time taken in making custom jewelry and reduce our salary expenses.
We are venturing into an already established market where our main strength will be our unique designs, pricing of our product and quality of product that we are going to produce. If we manage to combine the three strengths, we will produce a product that is able to compete with our competitor’s product. Our competitor’s main advantage is that they are already established and recognized throughout the country. This implies that we will have to come up with a very aggressive marketing strategy to make our product known and accepted in the market. The partnership will only have a maximum of three partners whom will contribute the same amount of investment capital and own the business equally.
Product and services
In order to come up with our product we will require uncut gemstones, molding wax and precious material such as gold and diamonds. We will mainly deal with gemstone jewelry since gemstone is cheaper than diamond. The first process will be cutting the gemstone to meet the customer’s specification, then we use custom application developer (CAD) to develop the sapphire ring or chain that will hold the gemstone or diamond rock. Then we use a 3-d printer to produce a wax mold of the design achieved by the application. We will use ultraviolet rays to harden the wax mold. We melt the gold which will coat the wax molt through a centrifugal process which disperses the molten gold into the ring or chain cavity. It will take a minimum of six hours to produce a complete custom ring and approximately eight hours to produce a custom chain. This will be our main product, but we will still make handmade gold ring to meet our customer’s specification. Most of our products will mainly be designed by the customer will the help of our designer who will be able to use the application to come up with the clients design. We will also be making expensive jewelry which will be leased out to clients who are not willing to buy the product. Customizing our jewelry using the application and a 3-d printer will enable us to get any design possible and this will give us a competitive edge in the market. We will price our products according to the amount of material used and type of precious material that we use for the making of the product.
Prices will also with the customer’s design. To reduce our production expenses we plan to buy the raw material in bulk since it will be cheaper and the importation costs will be cheaper ensuring our products will not be expensive. We will also have to consider the hourly labor rate and overhead expenses when coming up with the commodity price. Our hourly labor rate will be $6 while the prices of gemstones will range from $60 to 200$ depending with size while the diamond stones will be a bit expensive since the price will range from $500 to $1,000 also depending with size. A ring with a gold coating and a gem stone fitting will sell at $350 but when we fit a diamond rock, it will sell at $1,200. When leasing our products, the customer will have to pay the whole leasing amount before they can leave with the jewelry for insurance purpose.
Marketing plan
We are going to capitalize on using celebrity advertising to make the market familiar with our product. This will be effective in advertising our high end jewelry which will include diamond rings and chains. Fashion Journals and magazines will also be effective in making our product known since they will give the readers a very brief description of our product and where to find our shop. We mainly used secondary data to come up with our marketing strategies since we found out that most people looking for jewelry will read a fashion magazine or journal to gather relevant information. We are planning on having a startup capital of $100,000. $40,000 will be used to purchase all the equipment required will the remaining $60,000 will be used to purchase the raw material and cater for the first years` operation expenses. We estimate that we will have to sell 30% of all the jewelry that we produce to at least break even during the first month of operation with a 20% percent increase in sales annually for the next 7 years.
Economics
The United States provides the largest market base in the world since there are already different competitors who have already established themselves in the market and still there are market gaps both in the states and international...