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