Lacey Designs Shop for lace with smile on your face Sedina Mustabasic Grade: 11th 18 Years

Business Profile Type of Business: Legal Structure: I decided to open up my own lace designs business in state of Connecticut because there are no businesses in this state and traditional Bosnian lace is very hard to find. Type of Business: Retail I satisfy my consumer’s want for lace by providing beautiful hand made Bosnian lace at a reasonable price. Legal Structure: Sole Proprietorship I selected sole proprietorship because it is the easies type of legal structure and I can be my own boss, therefore I can keep all my profits. 1

Opportunity Opportunities Qualifications There are not any Bosnian Lace Design places in the state of Connecticut Satisfy the customer by making custom made lace designs Qualifications Great customer satisfaction skills Family owned store for 11 years in Hartford 4 family generation of lace work designing Done lace work along side my mother since I was 8 yrs old 2

Consumer Profile http://lace.web.officelive.com/default.aspx By Location Home based business with a website available http://lace.web.officelive.com/default.aspx By Population Women who love decorating and making their homes beautiful. By Personality Customer mostly female, who love to keep their homes beautiful while having a little flavor of Bosnian tradition By Behavior Purchase lace design decorations for homes or any area needing some improvement By Income $15,000+ 3

Competition Competitive Advantage (Chapter 8) Competitor Price Quality Greatest Strength Greatest Weakness Michael’s $ 9.99 Good Sold where ever Michael’s is located Not made from Bosnian tradition Decorating with Lace $ 12.99 Average Beautiful lace designs European Grocers $ 20.00 Excellent Beautifully hand made lace figures Not personalized Competitive Advantage (Chapter 8) • Uniqueness combined with Bosnian tradition that lead to a beautiful personalized lace figure. Very rare item sold in the United States 4

Marketing Mix Price: Place: Product: Promotion: $15.00 – Represent combination of materials as well as an equal amount of profits. Place: Sold product through international stores such as; European Grocers, Product: Personalized lace design figure with a hint of Bosnian tradition for customers to make their homes beautiful Promotion: Business website, Business cards $.50, International Stores promoting my item 5

Marketing Plan Awareness Purchase Retention Phase Method Description Cost Awareness Word of mouth, Business Cards, International Stores International stores will promote my items which will have my business cards on them $10/200 (extra 200 cards) Purchase Descriptions & Personalization I will make sure that customers understand my product is traditional and can be personalized in any way they desire $6.39 Retention Customers get 20% off my product if they recommend by product to others If customer recommend new customer to come to my business, they will receive 20% of their purchase $3.00 6

Cost of Materials/Direct Labor Definition of One Unit 6’’ lace design figure Cost of Sales Per Unit Direct Labor (Labor Cost per Hour) (A) Time (in hours) to make 1 unit (B) Direct Labor Cost Per Unit (A)*(B) $ 8.00 35 minutes or .58/hr $ 4.67 Total Direct Labor Per Unit $ Material Description Cost/Total Quantity Cost Per Unit ($) Lace $ 1.50 $ 1.50 Sugar $ 11.72/25 lbs $ 0.01 Gift Boxes $ 21.00/100 $ 0.21 Total Material Cost Per Unit $ 1.72 Variable Costs Per Unit (shipping) $ 1.00 $ 7.39 8

Economics of 1 Unit Definition of One Unit 6’’ lace design figure Selling Price per Unit $ 15.00 Direct Labor Per Unit $ 4.67 Materials Per Unit $ 1.72 Total COGS Per Unit $ 6.39 Variable Costs Per Unit (outgoing shipping) $ 1.00 Total Cost of Sales $ 7.39 Gross Profit Per Unit $ 7.61 9

Business Schedule for a Typical Week Time Management Plan Business Schedule for a Typical Week Entrepreneurship 25 hrs. School Hours 50 hrs. Work Hours Sleep Free-Time Hours 43 hrs. 10

Average Monthly Fixed Costs Type of Fixed Cost Monthly Cost Entrepreneurial Stipend $ 50.00 Utilities (from home) $ 30.00 advertising $ 0.50 Rent (from home) Total Monthly Fixed Costs $ 110.50 11

Monthly Sales Projection Units Sold January 40 February March April May 50 June 60 July August September October November December Monthly Break-Even Units (Chapter 20) 15 Total = 540 13

Projected Yearly Income Statement Selling Price Per Unit $ 15.00 # of Units Sold 540 Total Sales (A*B) $ 8,100.00 Total COGS (COGS per unit * B) $ 1725.30 Other Variable Costs (Other variable costs per unit * B $ 1.00 Total Variable Costs (D+E) $ 1726.30 Gross Profit (C-F) $ 6,373.70 USAIIRD (Yearly) $ 1,326.00 Other Costs/Unforeseen $ 100.00 Total Fixed Costs $ 1,226.00 Profit before Taxes (G-H) $ 5,147.70 Less Estimated Taxes @25% (I * .25) $ 1,286.93 Net Profit $ 5,086.77 14

Entrepreneurial hours needed for start-up (A) Start-Up Investment Entrepreneurial hours needed for start-up (A) Wage I pay myself (B) Total start-up time investment (A*B) 1 hr $ 8/hr $ 8 Item Where I will buy this? Cost of Item Lace Jo-Ann Already Owned Knitting Needle Sugar Sam’s Club Gift Boxes Papermart.com $ 40.00 CASH RESERVE $ 331.50 Estimated TOTAL START-UP INVESTMENT $ 379.50 15

Return On Investment 1340% $13.40 Return on Investment (ROI) Yearly Net Profit ÷ Start-up Investment X 100 1340% For every $1 dollar invested, my business earned : $13.40 16

Social Responsibility Plan My business will give 3 % of my annual net profit to St. Jude Children’s Research Hospital. I will have the business boxes and my business cards created with the St. Jude logo which will tell my customers that my business is a sponsor of St. Jude. 17

Business & Educational Goals - Graduate from SMSA with high honors and get accepted to a University of my choice. - Graduate from the University of my choice with the degree in Dentistry. Business - Sell more than 100 lace designs in the first quarter and expand my business. -I hope to make enough profit to open up my own Lacey Designs store and hire at least 2 employees. 18

Lacey Designs Thank you for your consideration of Shop for lace with a smile on your face Thank you for your consideration of Lacey Designs http://lace.web.officelive.com/default.aspx 19