Craving Pink’s Business Plan

Atlanta Georgia, USA

 EXECUTIVE SUMMARY
The purpose of this business plan is to develop a blueprint of the company's vision and strategy
and then use this plan to as a guide to develop and grow the business. This business plan will
also be used to align the various elements of the company to create a coherent system of
sustainable customer satisfaction and profitability.

The Jewelry Store “Craving Pink” (CP), will be located in Atlanta Georgia, USA initially. It is a
new business. We will offer a great selection of jewelry in various designs, colors and sizes. Our
jewelry will include bracelets, bangles, necklaces, earrings and rings. CP will stock a wide
selection of jewelry made of gold, diamond and platinum. We will offer a service to make
custom pieces for shoppers on demand. All sales for the business will be through the stores itself.

CP will sell jewelry through four main formats, which are uniquely positioned to address
different consumer segment needs. Firstly, ‘The Exclusives’ range offer high-end luxury jewelry,
secondly, ‘The Semi-Exclusives’ range offer stylish and sophisticated products for the discerning
consumer ; thirdly 22K and fourthly 18K range offer trendy, fashionable and stylish products at
competitive prices.

The Jewelry Store will specifically carry gold, diamond and platinum jewelry that is designed for
the professional and sociable woman. Our selection will range in various colors, sizes and styles
to meet the unique needs of the everyday woman. The jewelry will be designed for casual,
business and formal occasions.

The Jewelry Store ‘CP’ will focus on one primary market, women. We will concentrate our
marketing efforts for the professional and sociable woman. We will sell to these customers by
suggesting styles for various outfits and occasions demonstrating our knowledge of fashion
design and customer service targeted at individual shoppers. Customers can purchase premade
jewelry or request a customized piece designed for them at the store.

Management will rely on customer feedback and sales reports to eliminate or introduce particular
sizes, colors and styles.

In this industry trends are in our favor. Gold and diamond jewelry are popular because of their
unique natural colors and features; they are ideally suited for both informal and formal
occasions. They complement and can dress up any outfit on a woman.
 THE BUSINESS

The Company

Craving Pink is located in Atlanta Georgia USA, is a custom manufacturer of jewelry. CP has a
wide range of jewelry offerings, from pendants, to pins, to earnings. All of the pieces are made
with proper care and quality. CP sells the pieces direct through his website as well as through
selected galleries and art shows. CP plans to hire a sales representative by month eight to handle
customer interaction.

Guiding Principles

Passion
We will always have, and show, our passion for using jewelry as a component of
an entire outfit focusing on the combination which best fits the person, their
clothes, personality and occasion.
Happiness
By showing our feelings of happiness and well being at all times through our
‘always smiling’ appearance and upbeat conversations our happiness will be
contagious to our customers.
Fairness
Be fair to all; offer exceptional service and products at fair prices, respect and
accommodate customer’s wants and needs, and be fair in all business practices
both internal and external to the Jewelry Store Craving Pink.

Keys to Success

In order to succeed in the jewelry industry the Jewelry Store Craving Pink must:

• Showcase an assortment of sizes, colors and designs to fit the needs of our target
customer base.
• Provide customers with high quality personalized customer service.
• Provide relevant fashion design recommendations to our customers.
• Continuously review our inventory and sales and adjust our inventory levels
accordingly.
• Provide for the satisfaction of 100% of our customers and employees. Both are very
valuable to us and we will design a customer care plan to manage complaints,
implement employee and customer feedback, manage supplier accounts, and predict
potential conflicts.
 • Create a visible, accessible and welcoming mall Craving Pink to position us as the
premier choice for our products within the mall.

Objectives

Our primary objective is to be a leading brand in the jewelry and fashion industry and delight our
customers by offering luxury wrapped in trust. The primary objectives of the business plan for
The Craving Pink are listed below:

• To create a product-based Jewelry whose goal is to exceed customer’s expectations in

design styles, quality and customer service.
• To develop a sustainable merchandising unit that sells gemstones and customized
jewelry to meet the needs of the professional and outgoing woman.
• To increase the number of products sold by 20% each year.
• To introduce a minimum of three new designs weekly.
• The utilization of Craving Pink designs in at least 40 different galleries.
• The utilization of Craving Pink designs in at least 40 different galleries

Mission

Craving Pink’s mission is to make innovative pieces of art in jewelry form out of titanium. We
exist to attract and maintain customers. When we adhere to this maxim, everything else will fall
in to place. Our services will exceed the expectations of our customers. An exceptional level of
customer service and personalized fashion recommendations tailored to the individual customer.
We exist to attract and maintain customers through our unique combination of designs, quality,
and customer service and fashion recommendations.

Start-up Summary

Craving Pink start-up costs will include the following equipment for the home-based business:

• Legal fees.

• Website creation fees.

• Home office furniture including desk, file cabinet, chairs.

• Computer including printer, CD-RW.

• DSL hookup.

• Copier and fax machine.

• Extra land phone line.

• Cutting tools.

• Raw materials (titanium sheet and wire).

• Anodizing equipment.
 Products

The Jewelry Store Craving Pink will specifically carry gemstone jewelry that is designed for the
professional and sociable woman. Our selection will range in various colors, sizes and styles to
meet the unique needs of the everyday woman.
Management will rely on customer feedback and sales reports to eliminate or introduce particular
sizes, colors and styles.

The jewelry takes the form or pendants, approximately, and pins. All of the jewelry is made out
of titanium. All of the products are designed and made by Craving Pink. CP has chosen titanium
because of its unique characteristics. It is stronger than steel, yet similar in weight to aluminum.
It is inert and hypoallergenic.

Most of the jewelry is left unfinished. The grey of the titanium by itself looks quite nice. Some of
the pieces are anodized. Anodizing adds a broad range colors to the titanium. Anodizing occurs
by immersing the titanium in electrically charged water or hooking up the titanium to a electrical
power source. When charged with electricity, a light film or oxide will form on the surface of the
titanium and this produces color.

Product Description

Our jewelry store Craving Pink will carry wide selection gemstone jewelry with various styles
and price ranges. Each piece of jewelry will focus on designs which accent and bring focus on
the gemstones in that piece. The jewelry will be designed for casual, business and formal
occasions. We will offer gemstone jewelry that includes necklaces, rings, bracelets, and earrings.

Customers can purchase premade jewelry or request a customized piece designed for them
onsite.

Product Sourcing

Raw jewelry making supplies will be sourced from countries such as India, Brazil and China.
The owner of the business has contacts in these countries for purchasing quality gemstones and
supplies not only at wholesale prices, but also providing credit arrangements and flexibility in
payment terms. This in turn provides some flexibility in the owners’ day to cash flow
requirements. Orders of supplies which are small in size and weight will be air shipped; whereas,
larger and heavier orders will be shipped LCL (Less than a Container Load). All products and
supplies will be stored at the owner’s residence. While custom designs will be made on site
while the customer waits, the standard selection of premade designs will be made at the owner’s
residence.

Inventory Management

In order to run the Craving Pink successfully approximately $50,000 in inventory is required.
This inventory will be stored at the owner’s residence. The owner will utilize bins to store and
organize jewelry supplies. Final jewelry products will be kept at the Craving Pink. Since this is a
small business with limited inventory, all inventories will be managed in a spreadsheet.

Warehousing and Fulfillment

Since jewelry and jewelry supplies tend to be small items a warehouse is not required for the
business. All supplies will be warehoused in the owner’s basement, final jewelry products will be
kept at the Craving Pink in the mall.

Future Products/Services

By its nature, jewelry is a constantly changing business. As trends and styles change from year to
year, and season to season, it is necessary to keep flexibility in our product lines. Since all
jewelry will be designed and made by the owner of the business, the product line will quickly
change with changing styles and trends.

As the business matures we may add services that complement our jewelry such as cleaning and
care products as well as service and repair. However, the focus of our products will remain
gemstone jewelry.
 The Market

The jewelry industry is highly fragmented with thousands and thousands of artisans competing
for distribution contracts and fame. Some work and distribute locally, others have national
distribution systems set up. Some artists will design products for larger companies to
manufacture; others will design and make the pieces themselves. Competition for Craving Pink
takes the following forms:

• Artists creating designs that are then manufactured on a large scale and distributed
nationally.

• Companies that has their own designers in-house. In this case everything is done in-house,
design, marketing and wholesaling.

• Artists such as Craving Pink who design and make all of the pieces themselves, and then do
the wholesaling or retailing themselves.

Craving Pinkwill be focusing on two distinct groups of customers. One is the end consumer; the
other is galleries, to be used as a distribution channel. The end consumer will be interacting with
Craving Pink via his website as well as through personal contact at exhibitions/shows. The
galleries (museum shops, jewelry stores) will also be met through the exhibitions and shows.

Financial Considerations

Contemporary Ti will be completely financed by equity capital provided by Craving Pink

Artificer. We will pass our break-even point within the first year. Conservative projections based
on sales over the next three years yield annual revenue of $75,000 by Year 3. The company
expects its cash account to remain healthy.
Market Analysis

The Jewelry Store Craving Pink is specifically targeting women in the Atlanta Georgia,
USAMall. Women in the workplace, as well as women that are sociable in the evenings (i.e.,
events, parties, etc.) are the primary focus for the Jewelry Store Craving Pink’s high fashion
gemstone products. We chose this area as it is situated in USA. Atlanta Georgia, USA serves as
one of the nation’s most affluent and densely populated areas.

Despite the recent recession and the nation’s current credit crunch, people still have an appetite
for beautiful things. Women can appreciate how easy it can be to change their look with jewelry
without the expense of purchasing a whole new outfit.

Jewelry has been one of the fastest growth areas. In today’s society, the majority of jewelry is
still sold to women, and it doesn’t look like that fact will be changing any time soon. However,
as the interest in this jewelry grows with women, it seems that men are not far behind in finding
interest in such items as well.

One of the most trendy and fashionable types of jewelry on the market is diamond jewelry.
While various types of diamond jewelry is popular, there are different jewelry trends each year.
One year it may be considered extremely fashionable to wear ruby earrings while the next year
rubies may be out.
MARKET CATERING

There are about 28,000 specialty stores selling jewelry. The industry is highly fragmented with
the top 50 jewelry chains accounting for less than half the total revenue. USA encompasses
roughly 25 % residents earning an average household income of about Rs.400,000 and above
that accounts for 50.9% of women.

Market Segmentation

Craving Pink has two targeted groups of people, galleries and individuals:

Galleries

These buyers are purchasing jewelry wholesale in quantity and reselling it to the public.
Some of the galleries are private galleries, some are artisan jewelry shops, some are
museum stores, the margins are not as good compared to sales to individuals and there is
also the expense of setting up relationships with the galleries to sell the art pieces, but
galleries move a large quantity of work. The galleries and stores that typically are
interested in Craving Pink work are more upscale and modern. They appeal to a crowd
that favors progressive or industrial design.

Individuals

These buyers are familiar with Craving Pink either from stumbling across the website,
saw some examples of Craving Pink 's work at a showing or art festival, word of mouth,
or some other avenue. The individual would then view the different available pieces on
the website and place the order via the Web, phone, fax, or mail. The margins for
individual sales are greater because there is not a distribution layer involved; it is direct
from Craving Pink to the end consumer. The individuals that are typically attracted to this
type of art work are generally from cities and are fairly progressive. The reason for this is
that the jewelry, while not flashy, is not all that conservative looking. They are intricate
pieces, typically using organic shapes and industrial design. This is the reason that more
progressive people will appreciate the Craving Pink pieces.
Target Market Segment Strategy

Craving Pink is targeting galleries and individuals because they are the most likely purchasers of
the jewelry. Galleries typically purchase works of art from many different artisans. The galleries
will first come into contact with Contemporary through examples of the work at an exhibition, or
the retailer is contacted by Craving Pink (or sales rep) and shown samples. If there is interest,
the gallery will place an order for a few representative pieces. This is hopefully the beginning of
a long-term relationship where the gallery will then reorder more pieces to replenish their stock
as well as to hopefully broaden their product offering.

Craving's target segment strategy for the individuals will also be based on exhibitions. The
individual will see examples of Craving Pink 's work and either purchase the product right then,
or will be referred to the website where a complete product listing is available and all pieces are
sold. Additionally, individuals will come across our website, either from a referral or a targeted
Web search. The individual is able to make a purchase, or find out what galleries carry Craving
Pink pieces to view them in person.
Industry Analysis

The jewelry industry, or even broader the art industry, is quite large and diverse. There are
countless different artisans making so many different pieces of work. There are artists from
every state that manufacture products. Some sell to large department stores, some to galleries,
some sell them only via a website, others will travel with the products and sell what they are
carrying.

Competition and Buying Patterns

As previously stated, the jewelry industry is composed of thousands upon thousands of people.
Some work and distribute locally, others have national distribution systems set up. Some artists
will design products for larger companies to manufacture; others will design and make the pieces
themselves. This business plan will have an abridged competition section. This is because of the
very large and distributed nature of artisan jewelry design, the market is entirely too dispersed to
have a complete catalog of the competition.

Competition does take the following forms:

• Artists creating designs that are then manufactured on a large scale and distributed
nationally. The artists might be famous enough to have their own one-name studio that they
create designs and the product is made and sold under the larger company’s name. If the
artist does not have national name recognition, the designers might belong to a firm that is
hired to develop designs for a company who will manufacture and sell the product.

• A company that has their own designers in-house. In this case everything is done in-house,
design, marketing and wholesaling. Another variation would be in-house designers,
marketers and wholesalers with the manufacturing contracted out.

• Artists such as Craving Pink who design and make all of the pieces themselves, and then do
the wholesaling or retailing themselves.

The buying patterns of consumers fall into typically two types: gifts and impulse purchases. A
gift purchase occurs when the buyer is looking for a gift for someone, sees the art piece, and then
purchases it. In this case the plan is to make a purchase, it is just not known what or where that
purchase will be made. The other buying pattern is an impulse purchase. Someone will be
shopping; they are not in need of anything, will see the item and have to have it, buying it on the
spot. One last pattern that occurs less frequently is if someone was looking for an "accessory"
that would match an outfit and happens to come across the piece of jewelry and buys it.

Selling costs are high for jewelry retailers, who generally wish to project an upscale image,
because high quality sales space, furnishings, and expert sales personnel are expensive.

Credit is an important concern for all jewelers, since credit availability is essential to sell an
expensive product. The typical cash purchase is usually much lower than the average credit sale.
About 50 percent of a typical jeweler’s sales are financed on credit cards. Some local jewelers
extend credit themselves on large purchases to well-known customers. Big chains typically offer
a private credit card through a third party, taking no credit risk themselves. Most small retailers
avoid risk by taking only third party credit cards.

Market Size

Annual revenue from jewelry stores is about $30 billion. There are about 28,000 specialty stores
selling jewelry. The industry is highly fragmented with the top 50 jewelry chains accounting for
less than half the total revenue (First Industry Research, 2010).

Industry Participants

Major participants include Wal-Mart, Zales, Tiffany’s and Sterling Jewelers. Large jewelry
chains account for less than half of the industry’s total revenue (First Industry Research, 2010).

Main Competitors world wide

The mall competition for the Jewelry Store Craving Pink includes the following:

Direct Competitors

• Aria collections – This company has a large Craving Pink in the mall. It currently
sells sterling silver pendants, gemstones – young and old styles. The median
prices range from $20 to $100.
• A+ Elegance – They have a small Craving Pink of sterling silver pendants, some
pearls and gemstones. The sales representative was not very knowledgeable in
jewelry. The median prices were from $20 to $50, but they are willing to
negotiate.
 • Golden Land Jewelry – This company sells sterling silver 925 pendants and
earrings in a large Craving Pink priced at $25. It also has sapphire and ruby
gemstones from $500 to $3000.
• Gold Palace – This large Craving Pink is Indian owned and offers Indian styles in
gold chains pendants, watches, belly rings, gemstones and rings. Their prices
range from $100 to $300.
• Temptation – This is an inline store that only sells costume jewelry from $8 to
$25.
• Kay Jewelers – Kay is an inline store selling diamonds and some lower priced
pendants, rings, pearls and a few gemstones. Median prices range from $50 to
$3000.

Indirect Competitor:

• Piercing Pagoda – They are very well established and have been in the
business since 1969. For 40 years they have been the leader in shopping mall
Craving Pinks. They not only have a large Craving Pink in the Atlanta
Georgia, USAMall but also has a well established online presence. However,
this company mainly focuses on piercings, so they are not a direct competitor.

Market Segments

The Atlanta Georgia, USAarea encompasses roughly 698,101 residents earning an average
household income of about $128,587. Women account for 51.9% which is indicated in the chart
below.

Table: Market Analysis

Market Tests

Janet Wilson has sold her jewelry online through third party shopping sites such as Ebay and
Etsy. Her jewelry has proven to be highly sellable with many buyers sending positive feedback
after receiving their purchases. The majority of the complements have been on the designs and
quality of the products. Although this marketing has been informal and conducted on a part-time
basis, sales have been positive with nearly 50% of her listed items selling. Sales through these
sites have grossed approximately $2,000 to $2,500 per month for the past six months.

Target Market Segment Strategy

We are targeting women in the Atlanta Georgia, USAarea. This is a sophisticated community
and there is no doubt that the community is the centerpiece of stylish shopping. In addition, since
women are the primary end consumers of jewelry, it’s natural for our Jewelry Store Craving Pink
to spend most of its marketing resources targeting this largest market.
Market Needs

The jewelry we will market will meet the needs of woman who are looking to dress up their
outfit with quality gemstone jewelry. The jewelry will be suitable for both formal and informal
events.

Market Trends

One of the most trendy and fashionable types of jewelry on the market is gemstone jewelry.
Gemstone jewelry is made in various designs, colors, and styles with a design, which contains
one or more beautiful gemstones as a focal point. While various types of gemstone jewelry are
popular, there are different gemstone jewelry trends each year. One year it may be considered
extremely fashionable to wear ruby earrings while the next year rubies may be out.

• The latest red carpet fashion trend is pear shaped, gemstones drop earrings. Tacori is at
the front line of style. These earrings are versatile and can go from a day to night, from
jeans and ballet flats, to a sexy little black dress.
• Amethyst is another popular gemstone especially in the fall. It is a great accessory to any
ring or necklace. Considered to be a precious stone, amethyst ranges in shades from
lavender to an intense, deep purple.
• Another trendy gemstone is the moonstone, a gorgeous, translucent gemstone in shades
of peace, blue, pink, and white. Moonstone jewelry continues to be all the rage.
• Rutilated Quartz is made from needles of the mineral known as rutile which is embedded
in crystal quartz. Rutilated Quartz is known to ease depression. Gemstones of this type
are often found in various types of jewelry from necklaces to bracelets.
• Chandelier earrings are becoming increasingly popular. These earrings are an exotic,
Indian inspired design and appeals to women all over the world. Anyone would feel
absolutely radiant when wearing this type of jewelry.
• Big, bold, and colorful jewelry is among the gemstone jewelry trends. Black jewelry with
large gemstones is very popular amongst various individuals today.

Market Growth

Gemstone jewelry has been one of the fastest growth areas. In today’s society, the majority of
gemstone jewelry is still sold to women, and it doesn’t look like that fact will be changing any
time soon. However, as the interest in this jewelry grows with women, it seems that men are not
far behind in finding interest in such items as well.

Positioning

We will position our jewelry to be of high quality with designs that inspire conversation. We will
be known for not only quality and trendy designs, but primarily for our service. We will be
knowledgeable of design trends and will offer advice on how to accent specific outfits with
specific jewelry pieces. Our customers will feel confident that they can approach us with their
jewelry related questions and confident that we will offer good advice.

Strategy and Implementation Summary

Craving Pink is Craving Pink Artificer’s design and manufacturing company. Contemporary's
competitive edge is Craving Pink’s artistic skill. While Craving Pink does not have a monopoly
of artistic skill, his level of creativity and expertise is encountered very infrequently. Craving
Pink will be applying his competitive edge in the development of some wonderful pieces of art.
These works will be sold initially by Craving Pink through shows and exhibitions, as well as
through strategic relationships with retail outlets. Toward the end of year one Craving Pink will
cease handling sales activity personally and hire an independent sale representative to handle
exhibitions and retailers.

Competitive Edge

Craving Pink competitive edge is fairly simple. It is based on creative, unusual designs. While
this strategy can be replicated, it is not easy. Creative, unusual designs require skill. While not
everyone has artistic skill, Craving Pink is certainly not the only one graced with this skill.
Regardless, Craving Pink is very skilled in what he does, and every piece that he manufactures
incorporates an element of creative, unusual, eye catching design that stands out from most
jewelry.

Sales Strategy

Craving Pink sales strategy will be targeted at getting a wide range of galleries to carry Craving
Pink’s products. This will be done with two methods. The first is attendance and display at
different shows. The shows are typically craft shows, art shows or art festivals. Although final
consumers attend these shows, buyers from galleries attend these shows to meet artists and form
relationships with them. The other method of reaching the galleries is through the
process of traveling to different galleries and speaking with the buyer or owner and showing
them the pieces that Craving Pink designs. Lists can be purchased of different galleries in the
country and Craving Pink or a sales representative will travel and show off the "wares."
To reach the consumer, one of the methods is the same, the shows. As stated in the previous
paragraph, end consumers attend these shows and many different pieces will be sold. In addition
to this method, a complete catalog of the collection can be viewed and purchased over the Web.
While some people like to hold the actual piece before purchasing, the photos on the Web are
quite detailed and people often feel comfortable ordering a piece directly from the website.

Sales Forecast

The first month will be spent setting up the work quarters and building up inventory. The second
month will be spent traveling around visiting galleries trying to set up distribution channels.
Month three will mark the first month of some sales activity. Craving Pink will have been to
several exhibits and sold products as well as pieces sold through the website. From month three
on sales will increase incrementally. Craving Pink will be on the road usually about a week per
month traveling to different galleries and exhibits. This will occur till month eight. Month eight
will mark the time when Craving Pink will hire a sales representative to do the traveling to set
up distributors and attend exhibitions to allow Craving Pink to concentrate on his design and
production. Month eight will mark a larger increase in the sales.
Demographics

Women ( ages 18 and above )

Sociable or professional

Lives in a higher income group•

Strategy Pyramid

Strategy: Be the jewelry fashion consultant expert

Tactics: Build awareness of our fashion consultation service
Offer the highest level of fashion consultation service
Programs: Display signage in our Craving Pink advertising this free service
Develop a tagline, which promotes this service
Develop printed articles and worksheets for our customers
Educate all staff on fashion design principles

Strategy: Actively engage prospective customers

Tactics: Draw shoppers walking near our location to our Craving Pink
Develop a two-way conversation with potential customers
Programs: Develop engaging lines to draw potential customers to our Craving Pink (i.e.
complements
on items they’re wearing, suggestions on how to complement the clothes they’re
wearing, etc.)
 Train staff on how to ask open-ended questions and take an interest in our prospects
to develop a conversation, rather than pitching a sale at them.

Unique Selling Proposition (USP)

The Jewelry Store Craving Pink will offer personalized fashion consulting to our customers with
onsite custom jewelry making service. We will demonstrate our extensive knowledge in
gemstones, clothing/jewelry color combinations and current fashion design trends. We will offer
advice on how to dress for specific occasions and which jewelry goes best with which clothing.
If we don’t have the right piece of jewelry to meet their needs we will be able to design and
create that piece while they wait. We will be the one source people turn to when they need
advice on how to dress and how to accent with jewelry.
Pricing Strategy

The Jewelry Store Craving Pink will use a dynamic pricing model. All jewelry will be clearly
marked with prices – – however, our pricing policy will allow for some flexibility. In order to
increase sales revenues, our sales representatives will be authorized to offer a maximum
predetermined discount to extend to their customers. This incentive will provide the customer the
perception of extra value and a bargain purchase.

Since we are operating from a Craving Pink and not an online store we will need to maintain
somewhat reasonable and affordable prices. Some items will sell as low as $20, but most of the
products will be priced from $50 to $150 with an average price of $100. There are a few pieces
that will sell for $200 to $300.

Promotion and Advertising Strategy

Our primary promotion and advertising strategy will be word-of-mouth.

Website

Due to the nature of this business being a mall Craving Pink there are no plans to develop a
website during the initial startup of the business. We will develop a website after the first six to
twelve months which will be an informational site and will not list our products. The website
will have our location, fashion related articles and announcements of new products.

Marketing Programs

Our marketing program will primarily consist of our highly visible and centrally located Craving
Pink in the Atlanta Georgia, USA Mall location.
 Milestones
Craving Pink will have several milestones early on:

1. Business plan completion. This will be done as a roadmap for the organization. While we do
not need a business plan to raise capital, it will be an indispensable tool for the ongoing
performance and improvement of the company.

2. Set up office and work shop.

3. Set up the first distribution channel.

4. Craving Pink begins design and manufacturing full time.

Management Summary
Craving Pink is owned and operated by Craving Pink. It will be formed as a sole proprietorship.
Craving Pink was always an artistic child, even at a young age instead of playing sports such as
baseball and kickball would make things. He would often find ordinary things lying around
school and transform them into a piece of art. Most of his free time was spent crafting things, this
is what he enjoyed.

Craving Pink pursued his undergraduate degree from the Cleveland Institute of Art (CIA). At the
Craving Pink studies graphic design. Craving Pink worked throughout school at a local design
firm that did a wide range of design work including company logos, furniture design, and
product design.

Upon graduation Craving Pink was unsure what direction in the art industry he wanted to pursue
so he decided to pursue a Masters in product design from Iowa State University. While at Iowa
Craving Pink met E. Douglas Wonder, a designer who primarily used titanium. Craving
Pink worked with Douglas for two years, an event that sealed his fate. Craving Pink realized that
he needed to develop his own business, specifically a jewelry design and manufacturing studio,
also specializing in titanium. Recognizing that location of the studio was not that important,
Craving Pink moved out to Hood River, OR with his wife because of the proximity to the
mountains and opened shop up in the basement of his house.
 Organization & Management
Organizational Structure

As a small business with one owner and minimal employees the Jewelry Store Craving Pink
doesn’t require an organizational structure. The owner will manage all key roles and
responsibilities.

Management Team

Formed as a sole proprietorship, The Jewelry Store Craving Pink is owned and operated by Janet
Wilson. With an early interest in art at an early age, the owner attended a graphic design school
to learn the skills of the trade. While pursuing her undergraduate degree, she worked at a local
design firm where he mastered the skill of product design. Upon graduation, she knew that she
wanted to start her own business as a jewelry designer.

Management Team Gaps

The owner has very good marketing, sales and product design experience; however, she does not
have experience in financial management. She will fill this gap by hiring a part time bookkeeper
to assist in setting up her books and managing them on a monthly basis.

Personnel Plan

Craving Pink, for the first eight months will wear many different hats. He will be designer and
manufacturer of the jewelry. He will also handle all ordering of the raw material and sales of the
pieces. Craving Pink will bring on board an independent sales representative to take over the
sales and marketing of the pieces.
 Financial Plan

The following sections will outline the important financial information.

Important Assumptions

The following table highlights some of the important financial assumptions for Craving Pink .

Break-even Analysis

The following table and chart show our Break-even Analysis.

Projected Profit and Loss

The following table indicates projected profit and loss.

Projected Cash Flow

The following chart and table indicate projected cash flow.

SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses the Jewelry Store Craving Pink must address. It also allows us to examine the
opportunities presented to The Jewelry Store Craving Pink as well as potential threats.

Strengths

• Strong relationships with suppliers that offer credit arrangements, flexibility, and
response to special requirements.
• Excellent and knowledgeable staff, offering personalized customer service. The jewelry
Craving Pink sets itself apart from the competition by providing customized jewelry
designs while the customer waits.
• Great retail space with an attractive, inviting atmosphere.
• The owner keeps overhead low 1) by purchasing directly from India, Brazil, and China
and 2) self creating the majority of the merchandise.
Weaknesses

• Access to additional operating capital.

• Revenues in the industry are cyclical; the majority of revenues are earned during the
fourth quarter and 25% are earned in the month of December.
• Owners are climbing the retail experience curve.

Opportunities

• Increase in higher income of target market.

• Addition of other jewelry related products and services.

Threats

• Local and emerging competitors.

• Shoplifting.
• Sales tied to economic growth.