Sedina MustabasicGrade: 11th

18 Years

I decided to open up my own lace designs business in state of Connecticut because there are no businesses in this state and traditional Bosnian lace is very hard to find.

Type of Business: Retail I satisfy my consumer’s want for lace by

providing beautiful hand made Bosnian lace at a reasonable price.

Legal Structure:

Sole Proprietorship I selected sole proprietorship because it is the

easies type of legal structure and I can be my own boss, therefore I can keep all my profits.

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Opportunities There are not any Bosnian Lace Design places in the state of

Connecticut Satisfy the customer by making custom made lace designs

Qualifications Great customer satisfaction skills Family owned store for 11 years in Hartford 4 family generation of lace work designing Done lace work along side my mother since I was 8 yrs old

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By Location Home based business with a website available▪ http://lace.web.officelive.com/default.aspx

By Population

Women who love decorating and making their homes beautiful.

By Personality Customer mostly female, who love to keep

their homes beautiful while having a little flavor of Bosnian tradition

By Behavior Purchase lace design decorations for homes or

any area needing some improvement By Income

$15,000+3

Competitive Advantage (Chapter 8)

• Uniqueness combined with Bosnian tradition that lead to a beautiful personalized lace figure.

• Very rare item sold in the United States

Competitor Price QualityGreatest Strength

Greatest Weakness

Michael’s $ 9.99 Good Sold where ever Michael’s is located

Not made from Bosnian tradition

Decorating with Lace $ 12.99 Average Beautiful lace designs

Not made from Bosnian tradition

European Grocers $ 20.00 Excellent Beautifully hand made lace figures

Not personalized

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Price: $15.00 – Represent combination of materials as

well as an equal amount of profits. Place:

Sold product through international stores such as; European Grocers,

Product: Personalized lace design figure with a hint of

Bosnian tradition for customers to make their homes beautiful

Promotion: Business website, Business cards $.50,

International Stores promoting my item

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Phase Method Description Cost

Awareness Word of mouth,Business Cards,International Stores

International stores will promote my items which will have my business cards on them

$10/200 (extra 200 cards)

Purchase Descriptions &Personalization

I will make sure that customers understand my product is traditional and can be personalized in any way they desire

$6.39

Retention Customers get 20% off my product if they recommend by product to others

If customer recommend new customer to come to my business, they will receive 20% of their purchase

$3.00

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Definition of One Unit 6’’ lace design figureCost of Sales Per Unit

Direct Labor

(Labor Cost per Hour) (A)

Time (in hours) to make 1 unit (B)

Direct Labor Cost Per Unit (A)*(B)

$ 8.00 35 minutes or .58/hr $ 4.67

Total Direct Labor Per Unit $

Material Description Cost/Total Quantity Cost Per Unit ($)

Lace $ 1.50 $ 1.50

Sugar $ 11.72/25 lbs $ 0.01

Gift Boxes $ 21.00/100 $ 0.21

Total Material Cost Per Unit $ 1.72

Variable Costs Per Unit (shipping) $ 1.00

Cost of Sales Per Unit $ 7.398

Definition of One Unit 6’’ lace design figure

Selling Price per Unit $ 15.00

Direct Labor Per Unit $ 4.67

Materials Per Unit $ 1.72

Total COGS Per Unit $ 6.39

Variable Costs Per Unit (outgoing shipping)$ 1.00

Total Cost of Sales $ 7.39

Gross Profit Per Unit $ 7.61

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Business Schedule for a Typical Week

Entrepreneurship 25 hrs.

School Hours 50 hrs.

Work Hours 0

Sleep 50 hrs.

Free-Time Hours 43 hrs.

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Type of Fixed Cost Monthly Cost

Entrepreneurial Stipend $ 50.00

Utilities (from home) $ 30.00

advertising $ 0.50

Rent (from home) $ 30.00

Total Monthly Fixed Costs $ 110.50

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Month Units Sold

January 40

February 40

March 40

April 40

May 50

June 60

July 60

August 50

September 40

October 40

November 40

December 40Total = 540

Monthly Break-Even Units (Chapter 20) 15

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Monthly Sales Projection

Selling Price Per Unit $ 15.00

# of Units Sold 540

Total Sales (A*B) $ 8,100.00

Total COGS (COGS per unit * B) $ 1725.30

Other Variable Costs (Other variable costs per unit * B

$ 1.00

Total Variable Costs (D+E) $ 1726.30

Gross Profit (C-F) $ 6,373.70

USAIIRD (Yearly) $ 1,326.00

Other Costs/Unforeseen $ 100.00

Total Fixed Costs $ 1,226.00

Profit before Taxes (G-H) $ 5,147.70

Less Estimated Taxes @25% (I * .25) $ 1,286.93

Net Profit $ 5,086.7714

Entrepreneurial hours needed for start-up (A)

Wage I pay myself (B)

Total start-up time investment (A*B)

1 hr $ 8/hr $ 8

Item Where I will buy this? Cost of ItemLace Jo-Ann Already Owned

Knitting Needle Jo-Ann Already Owned

Sugar Sam’s Club Already Owned

Gift Boxes Papermart.com $ 40.00

CASH RESERVE $ 331.50

Estimated TOTAL START-UP INVESTMENT $ 379.50

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Return on Investment (ROI) Yearly Net Profit ÷ Start-up Investment X 100

1340%

For every $1 dollar invested,

my business earned :$13.40

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$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

ROI

Original $1invested inbusiness

Amount of $gained/lossed byoriginal dollarinvested

My business will give 3 % of my annual net profit to St. Jude Children’s Research Hospital.

I will have the business boxes and my business cards created with the St. Jude logo which will tell my customers that my business is a sponsor of St. Jude.

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Business

- Sell more than 100 lace designs in the first quarter and expand my business.

-I hope to make enoughprofit to open up my ownLacey Designs store and

hireat least 2 employees.

Educational

- Graduate from SMSA with high honors and get accepted to a University of my choice.

- Graduate from the University of my choice with the degree in Dentistry.

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Thank you for yourconsideration of

Lacey Designs

http://lace.web.officelive.com/default.aspx

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Shop for lace with a smile on your face