Now here we come to the GOOD part! After all this hard work, how much money do we think we are going to make?
In my last Business Plan post, I included every possible expense I could imagine. I put down what I needed, when I needed it. Yes, the rolling mill purchase could be delayed for a year – but items such as business cards, web site and inventory were needed immediately. Starting a business is an expensive endeavor.
With the income portion of the Financial Analysis, the watchword is conservative! Yes, I think my jewelry is well designed, well made and incorporates unique elements. Yes, people have purchased it and really enjoy wearing it. The question is, how much of an online market share will I be able to grab? The answer will depend on the current economy, marketing, networking, publicity – and yes, on pure dumb luck. Oh to be featured in Daily Candy or to be worn by a celebrity!
My company launched on January 1, 2009. Sales are estimated to be minimal for the first quarter due to ongoing web site construction and income will consist solely of sales made through art galleries and jewelry boutiques. Although my profit margin for store sales is not as high as it will be on my web site, the trade off of selling in exclusive retail venues is added credibility and enhanced reputation of my brand.
For the second quarter, slightly higher sales for the Mother’s Day/Graduation/Bridal season are anticipated. Summer is generally a weak season. Fourth quarter sales are expected to be strong. Always remember – the big jewelry gift giving occasions are Mother’s Day, Christmas, Birthdays and Anniversaries!
I conservatively estimated that I would sell 200 pieces of jewelry during my first year. Profit would be less than half of gross sales, with the bulk reinvested in the company for future equipment and material purchases. I am not too concerned about the sales numbers for the first year and would be happy to be in the same ballpark. It will be a year of experimentation and fine-tuning of my web site and collections, as I find out what works and what doesn’t.
Next: The beginning of the end – or the end of the beginning!