The Business Plan – Operations

The Operations section is a description of how the product will be manufactured and sold. This should include a discussion of the company facilities, suppliers and product sales.

  • I currently own a studio large enough to accommodate my new business.
  • I currently have the equipment to make beaded and wire-wrapped jewelry, as well as some pieces requiring metalsmithing. Everything will be designed and  handmade by me, with great attention to detail.  A piece doesn’t leave my shop unless I say it does.
  • I have most of the major pieces of equipment necessary to work, including a kiln and flex-shaft. A wider range of hand tools is needed and will be purchased with profit that is put back into the business. Large equipment, such as a rolling mill is slated for purchase next year.
  • All equipment and raw materials are available online with an estimated lead-time of less than two weeks. If one supplier is out of stock, I can always go to another. My supplies are not company specific, so there are no repercussions if a supplier goes out of business. This is an especially important factor, given the current economy.
  • Manufacturing of jewelry would comprise about 70% of the work week; paperwork, web updates, photography, customer service and marketing would take up the remaining time.
  • My cost of goods would include material costs, overhead plus a reasonable labor rate.
  • My sales will be through several venues: my e-commerce web site, an Etsy site, private showings and retail through a high end art gallery. Each of these venues will draw on a different audience to view my jewelry, increasing the odds of purchase.
  • I may have to revisit the shipping question after rates go up on May 11th, but so far, the best shipping value is insured USPS Priority mail. The USPS supplies the Priority shipping cartons for free. Delivery confirmation and a small discount are applied if I print the labels in my studio. Next day pick up service may be requested, at no extra charge, saving on trips to the PO. Although I must say, Perky and I do go to our local PO frequently – it’s good practice for her – plus they love her there!

Well, here we are in the home stretch of our Business Plan with just two sections left!

Next:  Financial Analysis and Projections

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2 Responses to The Business Plan – Operations

  1. Angela April 5, 2009 at 12:20 pm #

    THANK YOU Maria, not just for always coming to see me on my site, but for this information. WE are in middle of doing a business plan for husband’s new business. See you sin. Follow me on twitter @spinachtiger. Are you on twitter. You should if not. Let me know.

  2. Maria April 5, 2009 at 4:31 pm #

    I love your site, Angela! Not only are the recipes mouthwatering – but your photos are wonderful. I find inspiration for my art everywhere. I enjoy seeing the colors and textures of the food against the dishes you choose – some of your settings are like little jewels 🙂

    As for the business, check all my business posts – in the beginning I have lots of links to great resources. If you have a local SBDC, make an appointment – extremely helpful group of people.

    Will twitter someday!