Archive for April, 2009

Sad Story Happy Ending

Wednesday, April 29th, 2009

Back in one of the early posts on my blog, I outlined the reasons why I decided to put together a Business Plan.  Here it is again.  $2,000.  Yes, I put my Business Plan together as one of the requirements for a grant application.  The grant was being given by one of my women’s business groups, the Suffolk County Women’s Business Enterprise Coalition, SCWBEC.  More about them in another post.

I got my application together, including Business Plan, business registration, essay and associated paperwork.  I submitted my packet a day before deadline.  Then I waited.  But not too anxiously, because I certainly didn’t expect to win.  Well, maybe if no one else applied, there was a slight chance of my receiving the grant, but other than that . . .

So I waited.  The next week, I received an envelope from SCWBEC.  I opened it and guess what!  I didn’t win.  Don’t worry I wasn’t too disappointed.  What I realized at that moment is that I really DID win!  I had my Business Plan in hand – something I would never have put together, if not for the application.  I was now ready to start my business, with a blueprint in hand for every step.  I didn’t have to think – I could just start doing.  I was on my way!

Every woman who applied for the grant was a winner – even if she didn’t get that $2,000. women-winning

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Posted in Decorative Painting, Starting a Business | 3 Comments »

Perky Update!

Wednesday, April 22nd, 2009

It occurred to me that I have not posted about my dear Miss Perky in a while.   I just downloaded some photos that I thought you might enjoy.

She is about 9 1/2 months old now and pretty obedient for the most part.  She understands when she needs to be on “best behavior” – and when she can get away with some shenanigan!  She is one smart pup.

Perky with a friend from a local farm

Perky with a friend from a local farm

Perky loves to go see the horses. When I start off in a direction opposite to the farm, she stops and looks at me with her head tilted the other way – letting me know she would prefer to go visit the farm. I think she thinks the horses are just big dogs. The horses are just as happy to see her, galloping over to greet her when they see her.

Perky in "uniform," on a walk

Perky in "uniform," on a walk

Perky knows to act like the future Guide Dog that she is, when she has her jacket on. All bets are off when the jacket comes off!

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Miss Perky at rest after some hard play!

Of course, it’s not all work all the time! Perky does live a “dog’s life” – she has run of the house and lots of play time in the backyard where there are all sorts of interesting things to explore, such as squirrel and bunny trails.

What a pleasure to be raising such a wonderful pup!

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Posted in Causes, Guide Dog Foundation | 4 Comments »

The Business Plan – Executive Summary

Saturday, April 18th, 2009

Remember back when we first started the Business Plan?  After the cover page and index, the next section was the Executive Summary.  At the time, I said don’t worry about the Executive Summary – that section goes in last.

the-end1Well, here we are!  The rest of our Business Plan is complete and we need to condense all that information into one or two pages.   The Executive Summary may be the only section read by potential investors and must generate immediate interest.  It should contain highlights of the product, marketing, operations and financial plans.  It must answer the question “What makes your product different?”

In my Executive Summary, I wrote about my business experience and how that would apply to my new business.  I detailed my target market along with my marketing campaign.  I listed my operations priorities for the first year, along with a multi-year financial projection.  All this in one neat page.  I am not seeking outside financing; if you are, your summary may be a bit longer as you will need to discuss your credit worthiness.

There you have it – the basic bones for a working Business Plan.  Click on the “Starting a Business” category or the “Business Plan” tag in any of the posts to bring up all the Business Plan posts.  Go through them at your own pace and put together your own Business Plan – it’s the only way to start a business!  Feel free to email me with questions – or better yet, find a local Small Business Advisor who will walk you through the whole thing.

Next:  The Business Plan and the $2,000 Grant Application

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Posted in Starting a Business | No Comments »

An Artist Has to Eat . . .

Thursday, April 16th, 2009

I have two friends who write food blogs.  They have interesting posts about food and the BEST recipes!  I just have to share – they are that good!

Vicki's Salmon Roulade

Vicki's Salmon Roulade

At Home With Vicki Bensinger features Vicki’s recipes and fascinating food posts.  Vicki has been teaching culinary classes for over 17 years and I only wish we lived in the same area so that she could come to my home and teach me how to be a gourmet cook!  Vicki was recently the star of two TV segments in St. Louis, demonstrating wonderful spring recipes.  If you live in St. Louis take advantage and look Vicki up!  If not, do the next best thing and check out her blog.

Angela's Carrot Cake with Lemon Cream Cheese Frosting

Angela's Carrot Cake with Lemon Cream Cheese Frosting

The other food blog I love is Angela Roberts’s Spinach Tiger.   Angela is also a decorative painter, so she has a real eye for color and texture which she puts to good use when photographing her dishes.  Most of her recipes are deliciously healthy – but sometimes she throws in a recipe that is well worth the calories!  It is very interesting to read about how she comes up with new recipes and also fun to read about her food experiments with her mom, Retro Rose.

So there you go – no more wasting time trying to figure out what to make for dinner.  Vicki and Angela have plenty of great ideas!

bunny-cupcakesJust downloaded the camera and couldn’t resist adding this photo of Easter cupcakes.  My daughter made the adorable bunnies from watching Vicki’s TV segment and I made the coconut cupcakes, from a recipe on Angela’s web site.  There is just something so festive about cupcakes – both were a huge hit!

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Posted in Blog Gems | 4 Comments »

The Business Plan – Financial Analysis & Projections, Income

Monday, April 13th, 2009

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.
mothers-day
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!

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Posted in Starting a Business | 2 Comments »

A Special Piece of Jewelry

Monday, April 6th, 2009

Yesterday I met with a representative of a non-profit organization that is dear to my heart.  She gave me her approval and blessing to embark on a fundraiser for the group.  Since receiving permission, design ideas have been flying through my head.  I have been researching stones and their traditional meanings.  The piece must be beautiful but also evocative of what the organization stands for.

The necklace will have a central pendant; I will write about that as soon as I create a prototype I like.  The next element that came to my mind was something blue – as in “true blue friend.”  My first thought was to use a Swarovski® crystal drop – they have a perfect, deep blue, sapphire color.

I happened to mention my project to a non-jewelry making friend and she asked if I could use lapis lazuli.  From my decorative painting career, I already knew that finely ground lapis lazuli has been used for thousands of years in paintings, retaining its brilliant color to this day.  I also knew that lapis was one of the first gems ever used in jewelry.  However, my friend also mentioned that lapis was thought to have healing properties. I had originally ruled out lapis as too expensive for this piece, but I was intrigued and did a little more research on the stone.

The Brilliant Blue of Lapis Lazuli

The Brilliant Blue of Lapis Lazuli

I discovered that lapis lazuli is considered to be the stone of friendship.  It is said to encourage harmony in relationships.  Now I’m not sure if this is true or not – but it exactly fits what I want this element to represent, especially with the added  connotation of healing.  So I am on the lookout for a company that carries good quality lapis lazuli beads.

If you know of a consistent lapis source for this very special project, feel free to send me an email with details.  Thank you for your help!

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Posted in Causes, Jewelry Making | 4 Comments »

The Business Plan – Financial Analysis & Projections, Expenses

Saturday, April 4th, 2009

The Financial Analysis is quite important.  If you are applying for a business loan it could be the most critical section of all, as these estimates will help determine if you are a good credit risk.    All projections must be based on historical and/or industry information – no “winging” it here!

This post will include projected start-up costs; income will be included in the next post.  Although I am not applying for a small business loan, I still treated this section as rigorously as if I were.  I researched how much the equipment I needed would cost and included the vendor name and item numbers.  I received actual web site design bids.  I used historical data for phone and email newsletter services.  I included accurate costing information for everything I could.

The only estimate that may be a little nebulous is that for my precious metal purchases – findings and raw material that will be incorporated in my work.  The precious metal market is in high flux, due to the economy.  There has been wide variation over the past several months, so I based my precious metal pricing on the market price at the time I put together my Business Plan.  I fully expect it will change and will price my finished goods accordingly.

Although the specific numbers I developed are only useful to my own business, here are the expense categories I used:

  • Initial Web Site Cost
  • Web Hosting & Web Upkeep
  • Logo Design
  • Business Papers
  • Copyright/Trademark Registration
  • Packaging
  • Credit Card Processing
  • Email Newsletter Service
  • Other Marketing Costs
  • Professional Services – accountant., consultant
  • Phone
  • Office supplies
  • Studio Equipment – one time purchases
  • Studio Consumables – sandpaper, mold material, etc.
  • Precious Metal Consumables – becomes an intrinsic part of jewelry.
  • Non-Precious Metal Consumables – becomes an intrinsic part of jewelry.

If you see something I may have forgotten, please let me know in a comment.  As I said in a previous post, the Business Plan is a living, breathing document and subject to change.

Next:  The Business Plan – Financial Analysis & Projections, INCOME!

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Posted in Starting a Business | 3 Comments »

The Business Plan – Operations

Thursday, April 2nd, 2009

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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Posted in Causes, Guide Dog Foundation, Jewelry Making, Starting a Business | 2 Comments »