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LO N G I SLA N D C I T Y,1110 1
SPEC I A L_ SST O N ES

SPEC I A L_ STO N ES

B U SI N ESS PLA N
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 TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................. 2
BUSINESS RATIONALE ................................................................................................ 3
Customer Empathy.............................................................................................................. 3
PROBLEM STATEMENT ......................................................................................................... 3
Ideal State............................................................................................................................ 3
Company Goals ................................................................................................................... 3

ABOUT THE BUSINESS................................................................................................. 4

COMPANY OVERVIEW .......................................................................................................... 4
MISSION STATEMENT ........................................................................................................... 4
Organizing........................................................................................................................... 4
Directing & Organizing ..................................................................................................... 4
Management Functions ....................................................................................................... 5
SWOT Analysis .................................................................................................................. 6

EXTERNAL ENVIRONMENT ................................................................................................ 7

CURRENT ECONOMIC .......................................................................................................... 7
MONTHLY SALE PROJECTION............................................................................................... 8
INDUSTRY ANALYSIS-REAL & VIRTUAL .............................................................................. 9
REAL WORLD COMPETITORS ............................................................................................... 9

MARKETING PLAN ..................................................................................................... 10

TARGET MARKET ............................................................................................................... 10
MARKET SEGMENTATION .................................................................................................. 10
Psychographics ..................................................................................................... 10
Benefits ............................................................................................................................. 10
Marketing Mix .................................................................................................................. 10
Discussion ............................................................................................................ 10
Product .................................................................................................................. 10
CATEGORIES .......................................................................................................... 11
PRICING ................................................................................................................. 11
PROMOTION ........................................................................................................... 11
POSITIONING .......................................................................................................... 11
DISCUSSION OF BUSINESS RISK.......................................................................................... 11

FIANANCIAL PLAN ..................................................................................................... 12

BREAK-EVEN ANALYSIS .................................................................................................... 12
Balance Sheet .................................................................................................................... 13
Summary Profit & Loss Statement ................................................................................... 14
Detail Profit & Loss Statement ......................................................................................... 15
Financial Write Up ............................................................................... 16
Cited Work ......................................................................................... 17

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 EXECUTIVE SUMMARY
Special Stones aims to provide safety through your everyday accessories. As technology
evolves throughout the years, innovators started to create gadgets that would benefit their
consumers. Special Stones create jewelry that embodies proper safety using modern technology.
The accessories have features for an endangered situation; all the jewelry has its own unique
feature.

The products include distinctive features that will assist the victims when they are in
danger. The earnings have a specific button, when you click it will contact 911 immediately. The
necklaces have a micro-lens that will record any actions made towards the victim. It will be
Bluetooth connected, so you can record whenever you want to. The rings and the bracelets have
a GPS tracker that will track your exact location without turning any devices on in order to track
your location. There is an option to connect your GPS tracker with any cell phone. The watches
have a micro flashlight, so when the attacker decides to act, especially when it is dark, the
flashlight would benefit the victim.

Our Mission: Special Stones is made to keep our customers safe. Our line of accessories
carries the functions of safety and fashion to make sure you are defending yourself.

Special Stones primarily targets Generation Y, individuals of ages ranging from 23-38-
year-old. Being a massive market segment, Millennials are top of mind for most brands. More
than 80 million Millennials live in the U.S., according to the census bureau.
According to our break-even analysis, our company’s needs totals sales of $844,299.77 to
break even and the average selling price per sale is $196.68, so the average profit rate is 51.70%.
We are purchasing our goods at wholesale prices making our average cost of goods sold per sale
is $95.00.

Special Stones’ goals are to find ways to expand our company overseas, be the new trend
of technology, grow on social media platforms and find ways to promote our products to the
consumers.

Over the past years, over 50,000 people are trafficked into the United States each year. In
2018, over 50 percent of criminal cases in the United States were sex trafficking cases involving
children. The International Labor Organization estimates that there are 40 million victims of
human trafficking globally, with hundreds and thousands in the United States. With the help of
the current advance technology, Special Stones creates a route for safety through jewelry and
protective features.

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 Business Rationale
Customer Empathy
Special Stones is highly aware of the world surrounding us. As we are a part of this century, we
have been introduced to so much new technology that benefit the lives of consumers. But this
new technology hasn’t helped the lives of those who were a victim of Human Trafficking and
other violence’s in the world. People haven’t been able to reach help in time and haven’t been
able to defend themselves properly. In New York alone, in the year 2018, a whopping 492
Human Trafficking cases were reported. The numbers are going to continue to grow if nothing is
being done to stop it. Special Stones operates to make sure that no one is going to fall victim of
Human Trafficking and other violence’s by using our products. While maintaining your safety,
we also seek to make sure our consumers are looking stylish.

Problem Statement
As the rates of human trafficking are increasing tremendously, people aren’t fighting back. They
are left in vulnerable situations in which they aren’t able to defend themselves. Certain Self-
Defense tactics help fight off the situation for a short period of time, but they don’t allow you to
fully get out of the situation and report the trafficker right away. Our company wants to help
fight against traffickers and ensure the safety of young adults.

Ideal State
To solve the problem at hand, our line of products provides added security to young adults, so
they don’t fall victims to human trafficking. Each product provides a feature that would help you
defend yourself as well as allow you to report the situation, so the trafficker is off the streets
ASAP. Our line of jewelry has things such as flashlights, HD cameras, GPS tracking devices,
and more to help keep you safe and still look fashionable doing it.

Company Goals
Goal #1: Gain social media presence so people are aware of our products
Strategy: promote our social media to numerous people fitting of our demographic so they can
see our products and what they are about. By Year 3, we hope to develop an app that will make it
easier for those to purchase our products
Goal #2: To make more features for our products
Strategy: give our customers a survey in which we can see what new features that they would
like to see in our company’s products and how they can connect with our already existing
products.

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Goal #3: coordinate pop up shops for people to physically purchase our products Strategy: as
Special Stones grows, we hope to create pop up shops in different cities to expand our services .

About the Business

Company Overview
Special Stones is a company that focuses on the safety of our customers and the modern styles
that are worn today especially with nice jewelry. The jewelry included special features for
survival and protection. The company was thought by our most current problem in the world,
kidnapping, human trafficking, and more. People have not been able to protect themselves and
weren’t able to call 911 on time. On the other hand, modern technology has advanced into many
new and useful items. In our social media for example Instagram @special_sstones, we update
on our products and new and better design with special protection inside those Jewelry such as
necklace, bracelet and rings as well as men's watches.
Special Stones officially opened on the year of 2020 with all the office employees ready to
launch the product on websites, social media and promote around the area. The department of
accounting entered the breakeven analysis, and sales as well as graphics worked on prices and
design. Web designer worked on the website. Department of Human Resources worked on
training and keeping track of everything being submitted on time.

Mission Statement
Special Stones is made to keep our customers safe. Our line of accessories carries the functions
of safety and fashion to make sure you are defending yourself. We, the employees want to make
sure you feel safe as soon as you step out of your house or wherever you are. With the profit we
get, we donate a percentage of it to Restore NYC to help with Human Trafficking .

Organizing

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 Directing, Organizing
Special Stones has 10 full-time employees, the team is divided into three sections. The Chief
Executive Officer is at the top and oversees each department and works with the Vice president
of administration and the Vice president of Human Resources. All three work together in order
for the company to function. The chief executive assigns work and the Vice President of Human
Resources distributes the work along with the Human Resources manager. The Vice President of
Administrative is the right hand of the CEO and helps out with the work that is provided with.
For example, every work is given at the beginning of the week assigned by the Vp of Admin, and
then the VP of Human Resources makes sure that the employees are doing the work that is given.
If there is any misconduct, the HR manager keeps the VP of HR up to date.

Management Functions:

 Planning

Goal#1- see who benefits our products and finds ways to make our product popular by
promoting our products on social media and advertisements.
 Special stones will make advertisements and our social media to keep in contact with our
customers.
Goal#2- be an international company as we get bigger.
 As we expand special stones, we want other people around the world to feel safe and be
protected. This way our product can launch anywhere, and people can come in our stores
and see the special stones for themselves and which will be useful for them and fit their
style.
Goal#3- be on the
cutting edge

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of technology.
 Special Stones will be the new trend of technology every time a new product like
bracelet, necklace, etc. this way many people will be waiting to see what new jewelry and
safety programs we have put into our products.
Goal#4- grow on social media presence.
 Special Stones will provide new protection technology for our customers and trendy
jewelry. To be able to promote Special Stones, our Instagram and Twitter need to exceed
followers and advertise our products.

 Controlling

Special Stones greatly expects the safety of our customers with the latest technology as well as
fashion. Our company has founded ways to make our product in everyday wear but also the
protection of any harm from the outside world. Our company provides great leadership,
communication and technical skills and employees who put their best effort in giving reports of
our process. Special Stones recognizes great work and encourages to hard work employees
provide to the company. Special stones CEO and VP of Human resource have employee
evaluations every month and holds one on one meetings to discuss the expectations as well as
our process in the work field. We also provide meetings to make sure if they have any concerns
or questions and address them new tasks to complete.

In addition, Special Stones also recognizes hard work. When an employee goes an extra mile
into completing their work they are given “employee of the month”. We also have weekly task to
note down the task that they were doing each day and given to the VP of human resource and the
human resource manager to revise their daily activities.

SWOT Analysis:

 Strengths:
Special Stones serves to prevent danger and something you could use in everyday life. Each
accessory will have their own safety specialties which makes them unique in their own way. The
company is very creative and forward with the works and everyone’s goal is to protect our
customers and be prepared in any dangerous situation. Our company provides well developed
technology without harmful to skin. Our diamonds are well thought out to its quality and safety.
Our qualities are different from other competitors in a way. Our employees are always working
on making the best presentation and their strong teamwork as well as the VP of HR making sure
everything is hand in on time. The company employees are always timely on their work and
know our products and goals within the company well to pursue it.
 Weakness:
The inevitable, the company lacks certain criteria in terms of our products being new to the
market. Special stones are not well known to the public so the product may not sell as much. The
product Special Stones created is new to the market as we designed jewelry with tools for
protection. The Stones are really hard to find, and it comes from deep within the earth. Our

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resource may be limited as the stones and tools will have to be modified to be able to work
properly
 Opportunities :
Special stones offer diamonds that won’t cause skin irritation and will be safe to wear. Since we
are new to the market it would also be a benefit because our product will be new, and more
customers will rely on us for their own safety and will recommend more tools we could use that
are more convenient. Our media will
become on how our product is
showing how technology is becoming
more advanced and our product is a
perfect example on putting tools of
safety in beautiful design jewelry
products.
 Threats:
Our company may face problems with
competitors in the future because upon
seeing our products, they will want to
launch their own way of being safe
and use tools in other items beside
jewelry. Our environment will
depend on the crime rate and the
security on the place. Many people don’t have the option but to live in a dangerous environment.
To prevent unwanted circumstance this product will have basic necessities for the safety of our
customers. The media or press may put negative opinion our product saying it’s impossible or
not worthy of buying

External Environment

Current Economic conditions

With the current economy sustaining a moderate economic growth and relatively low amounts of
inflation it should still be important to keep an eye on the economic outlook just in case a drop
may happen.
Any type of reduction that affects the balance of trade will have an impact on our product price
distribution if a lack of materials/ demand were to shift.

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An example would be if the pricing of gold were to depreciate by a large margin , the previous
profit that was established would have to be adjusted , completely throwing off any original
goals that are now potentially more difficult to obtain.

However, with our primary market being about Jewelry has an already
established firm, valued at 278.5 billion USD as of 2018 and is continuing to grow
shown from the site “Grand View Research”. The expansive commodities such as earrings,
necklaces , rings bracelets will always have their niche due to personal value, cultural
significance which can be tailored to meet and attract consumers.

Monthly Sales Projection

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 The monthly sales projection portrays the trade show budget should be roughly 3x the
amount you plan to spend on your exhibit. (20x20 Display)- ranges from 40-60k. These prices
were determined through how much money we usually would spend on trade shows. We decided
to not go over $60,000 since the pricing ranges around $40k-$60k, therefore, we settled for
$30,000. From November to April, we spent the least on online trade shows, around $190,000,
and we spent the most on other methods for our source of revenue, around $237,500 which for
example, can be selling the product in person to earn revenue.

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 Industry analysis real & virtual

 Real:

 Size (Small)- For a business to be classified as a small one depends on what type of
service it provides , In this case Special Stones is a company that distributes enhanced
jewelry in terms of additive features that can assist you in case of an emergency or menial
tasks such as calling. What would make us classified as a small business is the number of
employees , influence on other companies and financial accumulation.

 Since Special Stones is a starting company the current number of employees and
financial backing makes us a small company as a result, we have to stand out more to
attract customers and contend with any larger businesses that may follow a similar
pattern in the general industry.

 Size (Large)- A typical large business houses about 500 or more employees and usually
are mining and manufacturing industries. In Special Stones case what would make us a
large business is our foothold on the allocation of materials such as cubic zirconia and
diamonds and influence over the jewelry market. Drawbacks if any at all would be
employee management , training and an even greater competition with other large
companies to stay relevant.

 Virtual

 Currently there are over 61,235 businesses in the United States , with a steadily declining
annual growth rate of -2.4% on top of a decreasing industry employment of 157,750 as of
2019. With this information it's only logical that this industry is starting to shrink , though
gradual Special Stones will work around these issues by having a more personalized
approach towards our customers.

Real world competitors

 In the real, there are various organizations that produce similar products just like Special
Stones. Pandora, a jewelry business that makes customizable charm bracelets, designer
rings, and necklaces. Another real-world competitor would be Apple because it is a
technology company that develops and sell consumer electronics and computer services.

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 Marketing Plan:

Target Market:
Special Stones primarily targets Generation y- individuals of ages ranging from25-39 due to their
access to the virtual marketplace. Those of Generation y are in their adulthood which means they
know what they are doing and have experience with the marketplace. Since they are adults they
have worked and have some type of money saved up so they can afford to purchase special stone
products.

Market Segmentation

*Psychographics*:

Special Stones targets our jewelry towards the “Explorers” psychographic. “Explorers” are in
search of new experiences and are typically to try new brands. Special Stones provides an
introduction to investment, budgeting, and catering to the desires of this psychographic.

Benefits
Special Stones jewelry is not only good lasting jewelry that looks good, but we also have jewelry
to fit your budget. Special Stones jewelry is unique for the technology in them, the technology is
used for safety. There is a button you can press when there is an emergency so you can alert the
cops.

Marketing Mix

*Product*

Special Stones offer unique stones that will fit your budget and your style. Each jewelry
is unique and has their own style, not every jewelry is the same. These stones are
handmade, and they are crafted with care.

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 Categories:

Special Stones jewelry makes bracelets, necklaces, rings, and watches. With bracelets
you have a choice of stone and design. With necklaces you also have your choice of
stone and how much stones you want on it. For the ring it’s the same you get to design
it your own way.

Pricing:

Special Stones utilizes a competition-based strategy when pricing its products. The
company conducted research into the jewelry industry in order to determine what
customers were willing to pay for similar jewelry.
 Product production: was determined through research into the cost of each
different type of stone. Each stone is priced differently.

Promotion:

A big percent of America’s population uses social media so that is a good way to
promote our product. Special stones will take advantage of the widespread popularity of
social media by utilizing a myriad of social media outlets, the main platforms being
Instagram and YouTube; followed by Snapchat, Twitter, and Facebook. Special Stones
social media accounts will be linked to the website and inform the customers for further
deals.

 Positioning: Special Stones mission of creating a sustainable environment

through unique, high quality jewelry. Current Threads positions itself as an
environmentally conscious lifestyle jewelry brand that steers toward consumer
affordability.

Discussion of Business Risks:

Social media can be giving bad information about the brand; it can have a bad link to the
website. The pop-up shops can be in a location where people can’t go, and they are
going to miss out. The features can be things that some people might not like so it really
depends on the customer.

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Financial Planning

Break-Even Analysis

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Balance Sheet

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 Summary Profit & Loss Statement

The costs of from the total revenue and costs of goods sold were formulated to be as close as
possible to the prices of the product. The five products we used (Necklaces, Bracelets, Watches,
Rings and Earrings) were calculated to their closest real-world prices and multiplied by the
amount we would like to sell.

 Watches being the most expensive unit to sell compared to the other 4

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Detail Profit & Loss Statement

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 Financial Write-Up

In the break-even analysis, we calculated the average selling price per sale to average
around $196.68. This was calculated by taking the profit and dividing that by the unit sold to see
the average amount of money we would make. The average cost of goods sold per sale is
determined by how much we invest in our jewelry to be able to sell them to our customers.
Based on the chart, we spend at least $95 for each jewelry piece out of the 5 including necklaces,
bracelets, rings, earrings, and watches. Since we decided to sell different jewelry with different
defensive purposes, each piece has a different price which is partially determined through our
customers and their preference and how much money we invest in each, enough to make a good
amount profit. Additionally, another factor that determines the price is how much stones we are
placing on each piece. Of course, the price will vary because different stones have different
values although it serves the same purpose of beautifying the jewelry. In conclusion, our average
profit rate grew about 52% in a year resulting in our annual fixed cost to be around $436,487.70
if our prices for our products do not change. Lastly, based on our prices, the total sales
breakdown is about $844,299.77.

The balance sheet’s initial cash starts with $456,487 including the first investment of
$20,000. Since our company is new, we do not have any investments nor any inventory. Our
total current assets include computers, furniture and fixtures, and office equipment, totaling up to
$17,611 including its depreciation throughout the first year. Considering that our company is
new, we do not owe much money from purchasing/investing because we do not have enough to
pay back and can cause our company to go bankrupt. Our current liabilities only count for
salaries payable to the 10 employees, and payroll tax payable, making the total current liabilities
to be $512,965. Stockholders Equity is around $176,409 after the total liabilities. In total, the
liabilities and stockholders’ equity amount to $634,329.

On the summary profit and loss statement, the costs of from the total revenue and costs of
goods sold were formulated to be as close as possible to the prices of the product. The five
products we used (Necklaces, Bracelets, Watches, Rings and Earrings) were calculated to their
closest real-world prices and multiplied by the amount we would like to sell. The watches were
the most expensive ranging to the earrings which were the least expensive. The total gross
margin and the total operating expenses are calculated by the amount of profit we earn. Our
gross pay was how much we earned before tax deductions, and the total operating expenses is
how much we owe for operating a business on a normal day. Lastly, for net income, we lost
around $362,106 due to tax deductions and expenses.

The monthly sales projection portrays the trade show budget should be roughly 3x the
amount you plan to spend on your exhibit. (20x20 Display)- ranges from 40-60k. These prices
were determined through how much money we usually would spend on trade shows. We decided
to not go over $60,000 since the pricing ranges around $40k-$60k, therefore, we settled for
$30,000. From November to April, we spent the least on online trade shows, around $190,000,
and we spent the most on other methods for our source of revenue, around $237,500 which for
example, can be selling the product in person to earn revenue.

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 Cited Works

https://www.grandviewresearch.com/industry-analysis/jewelry-market (External Environment)

https://www.ibisworld.com/united-states/market-research-reports/jewelry-stores-industry/
(External)
https://www.thebalance.com/us-economic-outlook-3305669 (External Environment)

https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis (swot analysis)

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