Contemporary Ti Design

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Custom Jewelry Business Plan

Strategy and Implementation Summary

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

5.1 Competitive Edge

Contemporary Ti Design's 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, Steve is certainly not the only one graced with this skill. Regardless, Steve 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.

5.2 Sales Strategy

Contemporary Ti Design's sales strategy will be targeted at getting a wide range of galleries to carry Steve'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 Contemporary Ti Design designs. Lists can be purchased of different galleries in the country and Steve 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.

5.2.1 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. Steve 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. Steve 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 Steve will hire a sales representative to do the traveling to set up distributors and attend exhibitions to allow Steve to concentrate on his design and production. Month eight will mark a larger increase in the sales.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Retailers (Galleries) $21,593 $38,874 $45,785
Individuals $17,708 $23,545 $29,874
Total Sales $39,301 $62,419 $75,659
Direct Cost of Sales Year 1 Year 2 Year 3
Retailers (Galleries) $3,239 $5,831 $6,868
Individuals $2,656 $3,532 $4,481
Subtotal Direct Cost of Sales $5,895 $9,363 $11,349

5.3 Milestones

Contemporary Ti Design 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. Steve begins design and manufacturing full time.
Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan Completion 1/1/2001 2/1/2001 $0 ABC Marketing
Set-up Office and Work Shop 1/1/2001 2/1/2001 $1,450 ABC Department
Set-up First Distribution Channel. 2/1/2001 3/1/2001 $600 ABC Department
Steve Begins Design and Manufacturing Full Time 8/1/2001 8/1/2001 $0 ABC Department
Totals $2,050