Sedina Mustabasic Grade: 11 th 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. 1

 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 2

 By Location  Home based business with a website available ▪ aspx 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 CompetitorPriceQuality Greatest Strength Greatest Weakness Michael’s $ 9.99Good Sold where ever Michael’s is located Not made from Bosnian tradition Decorating with Lace $ 12.99Average Beautiful lace designs Not made from Bosnian tradition European Grocers $ 20.00Excellent Beautifully hand made lace figures Not personalized 4

 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 5

PhaseMethodDescriptionCost 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 6

Definition of One Unit 6’’ lace design figure Cost 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) $ minutes or.58/hr$ 4.67 Total Direct Labor Per Unit$ Material DescriptionCost/Total QuantityCost Per Unit ($) Lace$ 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$

Definition of One Unit6’’ lace design figure Selling Price per Unit$ 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$

Business Schedule for a Typical Week Entrepreneurship25 hrs. School Hours50 hrs. Work Hours0 Sleep50 hrs. Free-Time Hours43 hrs. 10

Type of Fixed CostMonthly Cost Entrepreneurial Stipend$ Utilities (from home)$ advertising$ 0.50 Rent (from home)$ Total Monthly Fixed Costs $

MonthUnits Sold January40 February40 March40 April40 May50 June60 July60 August50 September40 October40 November40 December40 Total = 540 Monthly Break-Even Units (Chapter 20) Monthly Sales Projection

Selling Price Per Unit$ # of Units Sold 540 Total Sales (A*B)$ 8, Total COGS (COGS per unit * B)$ Other Variable Costs (Other variable costs per unit * B $ 1.00 Total Variable Costs (D+E)$ Gross Profit (C-F)$ 6, USAIIRD (Yearly)$ 1, Other Costs/Unforeseen$ Total Fixed Costs$ 1, Profit before Taxes (G-H)$ 5, Less Estimated (I *.25)$ 1, Net Profit$ 5,

Entrepreneurial hours needed for start-up (A) Wage I pay myself (B) Total start-up time investment (A*B) 1 hr $ 8/hr$ 8 ItemWhere I will buy this?Cost of Item LaceJo-AnnAlready Owned Knitting NeedleJo-AnnAlready Owned SugarSam’s ClubAlready Owned Gift BoxesPapermart.com $ CASH RESERVE $ Estimated TOTAL START-UP INVESTMENT $

Return on Investment (ROI) Yearly Net Profit ÷ Start-up Investment X % For every $1 dollar invested, my business earned : $

 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. 17

 Business - Sell more than 100 lace designs in the first quarter and expand my business. - I hope to make enough profit to open up my own Lacey Designs store and hire at 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. 18

Thank you for your consideration of Lacey Designs 19 Shop for lace with a smile on your face