MT499-02 Final Assignement-HMarble

Final Assignment

This document is a collaboration of all the assignments of this terms class. It is a business plan for my company,

All That Shines Jewelry.

ALL THAT SHINES JEWELRY

Bachelors Capstone Final Project

Heather M. Marble

MT 499-02

Dr. James Ziegler

Table of Contents

Section 1: Executive Summary (Business Description) ................................................................. 2

Section 2: Code of Conduct ............................................................................................................ 6

Section 3: Marketing Plan (Strategy and SWOT)........................................................................... 8

Section 4: Operations .................................................................................................................... 10

Section 5: Finance ......................................................................................................................... 14

Section 6: Cash Flow Analysis ..................................................................................................... 16

Section 7: Information Management ............................................................................................ 18

Section 8: Management Summary ................................................................................................ 21

References ..................................................................................................................................... 24

Appendix ....................................................................................................................................... 26

Bachelors Capstone Final Project-All That Shines Jewelry

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Section 1: Executive Summary (Business Description)

Type of Business & Products

I am going into this business with a partner. My partner will be fully invested like myself.

She will be making the jewelry, as will I. Both of us will play a part in the creativity of each

piece. We will share in the profits and expenses of the business. We will each put in an equal

amount to the startup costs of the company. As stated by the IRS, “each person contributes

money, property, labor or skill, and expects to share in the profits and losses of the business.”

(Internal Revenue Service; irs.gov)

Inventory

My partner and I already have over 100 pieces of unique jewelry made to get us started.

Our plan is to make at least 10-15 pieces each a day to fill the store. As we see how the demand

is, we will adjust to meet it. For custom pieces, we will have a lead time depending on how

intricate the piece is. We will base our cost on the cost of the material and add at least a 25%

profit. On pieces that have a higher demand, we will increase the profit margin to 30%. For

custom pieces, we will charge a service fee of $5.00 plus the 25% profit. We will purchase our

supplies from wholesalers to save on cost of materials.

Since we plan on going to festivals and craft shows, we will have expenses for our booth.

We will need to get table cloths and display items like small stands and display cases for the

jewelry. We will need to add these to the cost of opening the business. There are several

wholesalers online that sell these things for good prices. Taking the time to research can save us

a lot of money.

Vision Statement & Slogan


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I believe that we all have something to give to our customers. The vision statement for

All That Shines Jewelry is “To become a local resource for customers that want to add some

bling into their lives with hand-crafted jewelry.” This company has the ability to give its

customers uniquely designed pieces that can add spark to any outfit.

The slogan for All That Shines Jewelry is “Our jewels will keep you looking beautiful.” I

think that keeping the slogan simple is the best way to go. Our intentions are to help people look

good by accessorizing with our jewelry.

Location & Target Customers

All That Shines Jewelry will be open six days a week–closed on Sundays. The hours of

operation will be from 10:00 am to 7:00 pm. Our target audience is teenage girls 15-19 and

women 20-85. With special requests, we will do men’s jewelry. Our shop will be located in a

strip mall where other shops that target the same demographics as we do.

Our shop will not be our only source for customers. We will also go to local festivals and

craft shows. We will budget for the cost of the booths. We can use this as a way to advertise our

shop and sell more jewelry. When we go to the festivals and craft shows, we will need to hire

someone to help since one of us needs to be at the store. We can hire someone, possibly a family

member, to work the booths with one of us and pay them a flat fee of $50 per day plus travel

expenses. This allows us a good opportunity to meet with others in the industry and get ideas for

new pieces. Also, customers will get familiar with seeing our products.

Competitive Advantage

We pride ourselves on being unique with our designs. Each piece is hand-crafted and is

one of a kind. Customers will be able to make special requests designs for additional fees. We

will market this feature on our website and on store promotions.


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Marketing Strategy

The marketing strategy for All That Shines Jewelry is important. Our strategy is to create

confidence in our customers that our products are made from quality material and sell at a

reasonable price. We plan to create a marketing campaign that will get our name out to our

potential customers about our products. We’ll let them know that they can shop in our stores and

see and handle the products in person. We also will have a website where customers can shop

online. Our marketing coordinator/salesperson will handle getting information on the web and

mailed to our customers our grand opening. She will also be the one to alert our customers of

new promotions and products.

Initial Financing

There are several steps that need to be done to get the business off the ground. The first

thing that needs to be done is to have a meeting with a financial advisor to make sure we have

the money available to operate the business. My partner and I will both need to take out a loan to

pay for expenses like rent of the building, supplies, utilities, marketing fees and salaries. We both

have our personal money to invest into the company but we want to also use secure loans to help

with the expenses.

Management Style & Start-up Personnel

Our management style will be permissive. “Leader permits subordinates to take part in

decision making and also gives them a considerable degree of autonomy in completing routine

work activities.” (Rensslear Polytechnic Institute; rip.edu) I believe that a good employee needs

to feel a sense of ownership in their job. By letting them make some of the decisions gives them

this sense. The bigger decisions will always be made by me and/or my partner.


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The leadership role that I will have in the company will be several. I will be one that will

make decisions on what we buy for the shop. I’ll also make decisions on what and when we’ll do

an advertising campaign. Another responsibility I will take on is the accounting for the company.

My partner will have some similar roles that I do. She will be involved in some of the

decisions of what gets made for the shop. She’ll also get to have some input on what we put on

the website. One of her roles will be supervising the marketing/salesperson. She will be giving

directions on what we want to put up as in advertisements in the shop.

The marketing/salesperson will have several roles in the company. This person will be

responsible for updating our website with new products and featured products each month.

He/she will also be the person that the customers see in the store. They will have to know a little

about the products that we sale. They will also need to have some marketing experience since

they will be doing our marketing campaigns. As we get our customer base expanded, we plan on

having a quarterly mailing that this person will be responsible for producing with input from me

and my partner. This position will also be required to do the direct mailings.


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Section 2: Code of Conduct

Definition

Every organization whether it is a business, school or club has a particular policy of how

they expect its employees, students or members to act within and outside the organization. This

policy is often referred to as a Code of Conduct. “A code of conduct creates a set of rules for

specified circumstances that become a standard for all who participate in the group and represent

themselves outside of the group.” (Miranda, Kay; www.ehow.com) Code of conduct can be

written or they can be implied.

Code of Conduct for All That Shines Jewelry

The code of conduct for All That Shines Jewelry will be a written policy that each staff

person will have to sign. The code of conducts will include values, principles, personal

responsibility and compliance. Each of these components are important to making sure that our

company stays ethical and financially legal.

Values are important because it deals with how you work day-to-day. “Business values

typically are expressed in terms of how the company performs its day-to-day interactions with

suppliers, employees and customers.” (Sullivan, Jeri; smallbuisness.chron.com) We want to

make sure that our customers are comfortable with our products and our service; that they feel

they are getting a good and honest product and service from our company.

Another key component in our code of conduct is our principles. It is important that our

employee, my partner and I stand by our principles. We want to make sure that our customers are

satisfied by our service and products.

Everyone will have to take personal responsibility for their own actions. “This is meant to

show that it is not sufficient to merely adhere to the values and principles but to help ensure

http://www.ehow.com/


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every employee supports the code of ethics by reporting violators.” (Sullivan, Jeri;

smallbuisness.chron.com) If anyone sees a violation, it is important for them to bring it to either

my partner or my self’s attention for the betterment of the company. To not do this, is like doing

the violation yourself.

One of the most important aspects of our code of conduct is compliance. You can run

into many financial troubles. You also might have issues with the law by not being in

compliance. “Any laws or regulations may be referenced as rules to adhere to as part of daily

business interactions.” (Sullivan, Jeri; smallbuisness.chron.com)


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Section 3: Marketing Plan (Strategy and SWOT)

Marketing Plan

The marketing plan for All That Shines Jewelry is two-fold. It will be a combination of e-

marketing and traditional marketing. E-marketing is marketing that is done using resources

through the internet. Traditional marketing is marketing includes TV, radio and print. There are

benefits and downsides to both methods. “Traditional Marketing require a substantial time and

budget to get the desired result.” (Ho, Jason ; www.allianzclick.com)

“Internet Marketing tracking mechanism can be easily implemented to monitor, assess

and account for your return in investment (ROI), which is very difficult to attain for TV or print

media.” (Ho, Jason ; www.allianzclick.com) Marketing through the internet also allows you to

target specific customers. It is more cost effective than traditional marketing.

I will use traditional marketing by placing ads in local trade magazines about our store

and the products that we sell. I will mostly be utilizing e-marketing using several different

avenues. One method I will use will be to create an email database of customers and send out bi-

weekly and monthly newsletters about the store-some will have specials and coupons. We will

also have a webpage to advertise our products and customers will be able to order on-line.

4 P’s of Marketing

Products: The brand name for all the products is All That Shines Jewelry. There will be

different categories of jewelry as follows: bracelets, earrings, necklaces and specialty items. The

specialty items will be items that are special requests from customers and more expensive

designs that use pieces that are not used in other jewelry.

Price: The pricing will be based on the size and type of product. Earrings will be priced at

cost plus 25% of cost material. The selling price range will be approximately $10-$12. Bracelets

http://www.allianzclick.com/

http://www.allianzclick.com/


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will be priced similarly to earrings. They will be priced at cost plus 25% of cost of material. The

selling price range will be between $12 and $15. Necklace prices will vary the most in price due

to the cost of materials. We will charge a fee that is cost plus 30% of the cost of material.

Specialty items will be charged out at cost plus 30% cost of material with an additional fee for

labor set at a rate of $2 per hour with a minimum of 3 hours.

Placement: Each piece of jewelry will be showcased in the store in several different

ways. Some of the pieces will be mounted on the walls on brackets. Others will be placed in

showcases at the register. Some of the necklaces will be hanging on pegs. Another way we will

display our products will be online. We will have a category for each type of jewelry-earrings,

bracelets, necklaces and examples of specialty pieces.

Inventory will be rotated out on a monthly basis to freshen up the jewelry on display. We

will use a database to track each piece by assigning an inventory number to them. The database

will keep track of when a particular piece was put into inventory. This will also help us to track

sales. We will keep our inventory of jewelry in the back of the store in bins that are labeled with

type of merchandise and piece ID.

Promotion: Our initial strategy for promotion will be to do a pay-per-click ad on

Google’s website. This will target specific customers looking for custom jewelry. Another

promotion strategy we will utilize is to offer repeat customers sale coupons for discounts on

future purchases. We also will target customers that attend craft shows by renting a booth at local

fairs. We will be able to meet new customers and advertise our store and our products. (Internet

Center for Management and Business Administration. Inc .; netmba.com)


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Section 4: Operations

Production

My partner and I will be responsible for creating the jewelry that we sell in the store and

online. We will each schedule our times so that at least one of us is in the store the six days of

the week that we are open. The plan is to work five days out of the week on crafting the jewelry.

The other two days can be dedicated only to matters that pertain to the business end of the

organization. I will handle the financial end of the organization. My partner will handle the

inventory control end. Both of us will make crucial decisions together.

Supplies

We will purchase material for each piece of jewelry from various vendors so that we can

use unique pieces in our designs. My partner and I will get ideas from trade magazines and by

attending craft fairs and by our own imaginations. We will use hand tools to help us shape the

pieces into distinctive designs that are appealing. The tools that we will use are a small jeweler’s

wire cutter, a rounded nose plier, a flat headed plier and crimping pliers. We will use various

materials in our products. Such items are various colors of wire that are silver plated. We will

also use some leather and gold plated material. We will each have our own work space that will

have a place for us to place the beads we will be using for a particular project. We will keep a

reservoir of beads in the back of the store in inventory to save on costs. We’ll have a jewelry

gauge that we can measure the lengths of our pieces against to make sure we get them to the

right size.


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Customer Service

We will attain email addresses from our customers by requested their emails when they

shop in our store and from online customers. We will also attend craft fairs and get customer

names, addresses and email addresses. With this information, we will email customers with

promotions and discount coupons. We hope to get customers by word of mouth, too. We would

like to offer incentives to customers that refer us to their friends by giving them a discount on

their next purchase.

We will also provide gift boxes for each piece that is purchased. The boxes will be small,

white cardboard boxes that will have a lid. This will allow the customer the opportunity to wrap

the box as a gift if they so choose. The box will be of no charge to the customer. It is a simple

way to show our customers that we care about our products and we care about our customers.

Global Business

As I plan to venture out, I see that I could possibly open a similar shop in Canada. There

will be several challenges to operating a business in another country other than the United States.

I will need to evaluate many things before making the move. Canada has different cultures and

economics as well as laws. It is important for any business owner that is looking to move or

expand their business to another country to take the time to research those countries laws and

cultures so that their business can thrive. Just because your business or products are successful in

the United States does not guarantee success in other parts of the world.

Gender Roles

Being a female owned company does not seem to be a deterrent in Canada. “Great

emphasis is placed on diversity in all its facets and a gender blind approach by employers is not

only seen as a legal requirement but also an ethical one.” (3rd

Paragraph;


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worldbusinessculture.com; Women in Business in Canada) Women are accepted in business just

as men are.

Language Barriers

One of the challenges that will be faced is that Canada is bilingual. They speak French as

well as English. “Thus it is politic to provide French translations of any marketing and

promotional literature to be used when trying to enter the market (especially in the area of

Quebec.)” (worldbusinessculture.com; Canadian Communication Styles) Not knowing French

can be a hindrance to our company for several reasons. It can cause miscommunications with the

customers which is bad customer service. It can also prevent customers from coming to our store

because they don’t feel comfortable. The good thing is this is a challenge that can be fixed by

learning a new language and hiring an employee that is bilingual.

Registering Your Business

As with any business in Canada, you have to make sure the name of your company is not

in use by another. Along with making sure my partnership’s name is not taken by someone else,

we have to register the name. “The registration accomplishes at least two things: it lets the public

know where to find you, and it protects your business name from competitors.”

(mycanadianbusinesslaw.com; Sole Proprietorship)

Employees

Canada has several laws similar to the United States when it comes to hiring employees.

“These employment standards can include such things as the minimum hourly rate, the

maximum number of hours that can be worked in a week, vacation rights, the right to not come

to work on statutory holidays, protection from termination, occupational health and safety rights,

worker’s compensation rights, human rights, employment insurance rights, Canada Pension Plan


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rights, responsibilities for deduction of income tax and other payroll taxes and health tax

deductions, depending on what province or territory your business is located in.”

(mycanadianbusinesslaw.com; Being An Employer) Each of these items needs to be investigated

thoroughly to make sure that all are followed accurately. To help make this transition easier, my

partner and I would hire a person that is well versed in Canadian human resources and

employment laws. It would also be beneficial to invest in an accounting program that will

incorporate the tax deductions that are required.


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Section 5: Finance

Start-up Costs

There are many costs associated with starting my company. There is the cost to rent the

building that my partner and I will lease for our store front to sell our jewelry. This will be a

monthly cost. Other monthly costs will be phone, internet and electric bills. All of these are long-

term liabilities. There are also the short-term loans that we will need to take to get our business

off the ground.

Assets

We will be using some of our own savings to start up the company, as well. Each of us

will contribute approximately $25,000 total into the company. Another asset will be our

inventory of jewelry. We will open the store with approximately $6000 of inventory ready to sell

to customers. It is anticipated that each year this amount will grow. We also expect to receive a

net of $150,000 in the first year and continue to increase each year, which will increase our

profits.

Some of our expenses will be prepaid. Such expenses will be material that we make the

jewelry out of—wire, beads, leather strap, Rhine stones, glue, fasteners, and other small pieces.

Each of these items has been purchased before the business was started and has been donated by

each partner. We will also have some fixed assets like furniture and fixtures which will be in the

shop and in the back of the store where we will manufacture the jewelry. The fixtures will be the

displays for the jewelry.

Liabilities

There are several liabilities for any company. Some of the liabilities for All That Shines

Jewelry are accounts payable which include items such as payroll and taxes. We will have one


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employee and will have to pay an income to this person. We will also have to pay the payroll

taxes, states taxes and federal taxes.

We are also responsible for paying on long-term notes. These are loans that we’ve taken

out to fund the business. These help pay the cost of advertising and any of the start-up expenses.

They are also there to help with any unforeseen expenses.

Break-Even Analysis

For my break-even analysis, I figure that my fixed costs will be approximately $1,500.00.

The variable cost is $5 per unit. The unit price is $15. The quantity is 25. With these figures, the

break-even point is at 150 units with net revenue and total is at $2,250 and variable cost is at

$750. This tells me that to break-even I have to produce at least 150 units. If I want to make a

profit I need to sell more than 150 units.

Knowing the break-even point is very valuable because it lets you know how much you

need to sell before you make a profit. This allows you to plan your market strategy and

implement it. “This calculation is critical for any business owner, because the breakeven point is

the lower limit of profit when determining margins.” (Richards, Daniel ;

http://entrepreneurs.about.com)

http://entrepreneurs.about.com/


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Section 6: Cash Flow Analysis

Elements of a Cash Flow Statement

When putting together a cash flow statement, there are several elements that you need to

include. You need to include operating activities. Operating activities are things like revenue and

direct costs of manufacturing a product or service. Another element that needs to be included is

investment activities. “Cash inflows generated by investing activities include sales of noncurrent

assets such as property, plant, and equipment.” (Zions Bank, www.zionsbank.com)

Financing activities also need to be included on your cash flow statement. These are

items such as what you have borrow and loans you are paying on. Two other important items that

need to be included on the cash flow statement are the income flows and cash flows. “There are

two types of items that cause differences between income flows and outflows: noncash income

or expense and nonoperating income or expense.” (Zions Bank, www.zionsbank.com)

Benefits

There are many advantages for a company to have a cash flow statement. “Analysts,

investors, stockholders, potential investors and lenders use these reports in order to assess the

financial health of a business.” (www.moneyinstructor.com) Having this information available

lends to the credibility of your financial situation. It also helps an organization set its budget and

manage its finances. You get to see what you have coming in and going out.

Cash flow statements have many other benefits. “It is also useful in checking the

accuracy of past assessments of future cash flows and in examining the relationship between

profitability and net cash flow and the impact of changing prices.” (www.mca.gov.in) You can

also use the information for planning future transactions.

http://www.zionsbank.com/

http://www.zionsbank.com/

http://www.moneyinstructor.com/

http://www.mca.gov.in/


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Weaknesses & Improvements

As with most things, you have benefits and weaknesses. The cash flow statement is no

different. “The weaknesses with the cash flow statement can be divided into five sections: 1)

differences between commercial and industrial companies versus financial institutions; 2)

problems with operating activities; 3) problems with investing activities; 4) problems with

financing activities; and 5) the role of free cash flow. The authors offer potential solutions to

these problems that could improve the cash flow statement.” (Weiss, Neil S. and Young, James

G.S, www.nysscpa.org)

Each of these weaknesses can be addressed and should be addressed. Some organizations

like financial institutions, there is a need to restructure the cash flow statement to make it a

document that is more useful to those that will be analyzing it. “Concerning the concept of free

cash flows, two points should be emphasized: First, increasing reliance is being placed on free

cash flow numbers by a variety of users, including investor analysts, credit analysts, and finance

and economics theoreticians. Second, as a result of the many users of free cash flow, a variety of

definitions have been introduced for the determination of free cash flow.” (Weiss, Neil S. and

Young, James G.S, www.nysscpa.org)

http://www.nysscpa.org/

http://www.nysscpa.org/


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Section 7: Information Management

Utilization

In my company, All That Shines Jewelry, we will be using information technology in

various ways. We will set-up a network within the store that will link the cash register to our

computer in the back office in the store. The computer will collect data each day at the end of the

business day. The data collected will include sales information like what was sold and the

amount collected. This information will be used to calculate daily sales and to adjust inventory.

Equipment

There are several pieces of equipment that we will need to run our business successfully.

We will need a computer, monitor, keyboard with a mouse and a printer in the back office. In the

store we will need a cash register that is tied into the network. The register will need to be

sophisticated enough that you if can recognize products by item numbers that are entered by the

computer and be synchronized. Along with the cash register we will need a receipt printer.

Products

The computer system will be Windows based. The software we will use will be Microsoft

Office and Expressions and Adobe Illustrator, Photoshop and InDesign, and web-based service

Constant Contacts . We will use Microsoft Outlook for our email. Microsoft Access will be our

database program that will collect the data from the register and store our inventory and sales

data. Microsoft Expressions will be used to maintain our website. The other Microsoft products

will be utilized as needed. The Adobe products will be used to design our marketing material and

website. We will use Constant Contact send out email campaigns.


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IT Services

Our network and internet service will be provided and supported by a 3rd

party provider.

We will also use VOIP service through this company. It will be important for us to have a

reliable voicemail since we have a store and online services. We will need to accept calls from

customers for orders and to take any inquiry from customers. Since All That Shines Jewelry is a

small company, I feel that it is more feasible to hire an outside company to handle the network of

our company. Some of the reasons are they can provide technical support and we won’t have to

hire someone internal to do that for us. Secondly, they will provide backup services that will

protect our data in case of a disaster. It is more economical for us to do this than to hire

additional staff.

Planning & Control Processes

As with most things, planning is a crucial part of information technology (IT). You need

to know what your needs and expectations are for your organization. You can’t just look at your

current needs. You need to look at your future needs when planning for your IT needs. If you

don’t, you will run into problems with expanding your technical needs. Along with planning

your needs, you need to have control over the processes. Both planning and control allow you to

protect the confidential information and prevent loss of information.

There are several ways to protect your confidential information. Make sure that you have

a security system in place that prevents others from getting into your server. Also, you will need

to set-up company policies that state specifically what the rules are about talking about company

information or taking company documents outside the business. Another way to protect company

information is to have passwords on all computer systems.


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I will be implementing each of these methods in my business. This will give me and my

partner control over the planning of our internet technology. We will work together on putting

down our company policies on what information can be shared with our customers and what

information must stay internal and confidential.

Our current needs for information technology include the need for a small network that

connects the computer in the back office of our store to the cash register. We also need access to

the internet and the ability to maintain our website and email.


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Section 8: Management Summary

All That Shines Management

The management team for my company involves several different people. We are a

partnership and both of us are hands on in our management styles. We have one employee to

manage. We allow this person to give some input to certain parts of the organization functions

related to our marketing plan. We have an accountant to help us with our accounting. We also

have an IT company that we rely on for our internet service and any problems.

Team Concept

The team concept for my organization will help my organization run smoother. The

concept is to have a team where everyone know the basic information of what is going on within

our store like promotions, new products and any problems should they arise. This will allow each

member time to react appropriately to the situation. For example, our marketing person can

update our website when we have new products and promotions. If any issues come up like

internet is down, we can contact our IT company that handles our internet service so they can

start working on the issue. Also, my partner, employee and I can put in place our backup plan for

dealing with this failure.

Group Dynamics

For All That Shines Jewelry, my role is the team leader. My partner is the second in

command, so to speak. She will fill in when I’m not available. Our employee’s role is to be on

the team to be given tasks assigned by me and my partner. My partner and I will also have tasks

assigned to us but most of these tasked will deal with handling owner responsibilities like paying

bills, contacting vendors, etc. Our IT company is responsible for our network and phone systems.

They will need to be kept in the loop for any issues we may have with our phone system and


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internet/network system. Our accountant is responsible for making sure our finances are in order

and taxes get paid on time. Communication between the accountant, my partner and I are crucial.

Strengths & Weaknesses

As with most teams, there are several strengths and weaknesses with our team. It is

important for an organization to evaluate both their strengths and weaknesses in their team.

“While this varies within each company depending on what the company does and how it

operates, generally, the team should look at the overall company strengths and weaknesses as

well as the strengths and weaknesses of key areas within the company.” (Baldwin, Dana,

www.strategyletter.com) Without this information, you don’t know where you can tap into the

strong areas and you don’t know the areas that need improvement.

One of the strengths in my organization, All That Shines Jewelry, is the fact there are two

owners that have their own management styles that complement each other. We have sent time

aside to decide what our policies are and have both agreed to abide by them. Another strength is

our employee is very knowledgeable about her job and willing to expand her knowledge. By

using outside vendors to assist with our accounting and IT service, this allows us to concentrate

on other aspects of the company.

Being a small organization, there are several weaknesses with our team. We don’t have a

bigger group of people to give us input and to fulfill tasks. Also, with only having one employee,

we have the issue of being shorthanded if something should happen to her if she gets sick for

example. Another problem is since we don’t have our own accounting and IT service in house,

we don’t have as much control over fixing problems faster.

http://www.strategyletter.com/


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Management Philosophy

The management philosophy for an organization is a set of values shared by its

employees. These philosophies are important to have so that your organization because it is a

way for employees to relate to each other, to management and to customers. The philosophy

concerning communication for All That Shines Jewelry encourages frank and direct

communications, is open for ideas and suggestion from employees and customers, and promotes

teamwork.

The organizational culture that I want to promote for All That Shines Jewelry is a simple

one. The culture is one where employees and customers are dynamic partnerships. We want to

promote a culture that is friendly and happy; one where people want to come back. The

environment needs to be one that cares for the employee’s mental and physical being.


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References

Internal Revenue Service. “Partnerships”. 2/24/12. Retrieved 4/23/12

http://www.irs.gov/businesses/small/article/0,,id=98214,00.html

Rensslear Polytechnic Institute. “Management Styles”. Retrieved 4/24/12

http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles

.htm

Miranda, Kay. “Definition of Code of Conduct”. eHow.com. Retrieved 6/13/12.

http://www.ehow.com/about_5044074_definition-code-conduct.html#ixzz1xgg40DkC

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26

Appendix

SWOT Analysis

Strengths

Unique designs

Talented artists/owners

Personal attention to customers

Weaknesses

Small store

Limited on number of piece able

to manufacture weekly

Opportunities

Expand to new markets online

Add another physical location

Specialize in rare piece jewelry

Threats

Competition

Larger stores

Inflation


27

Balance Sheet

Pro-Forma Balance Sheet All That Shines Jewelry

For 2012 to 2014

(all numbers in $000)

ASSETS 2012 2013 2014

Current Assets

Cash $25 $30 $32

Net accounts receivable $150 $165 $175

Inventory $6 $10 $15

Temporary investment $12 $12 $12

Prepaid expenses $2 $2 $2

Total Current Assets $195 $219 $236

Fixed Assets

Long-term investments $35 $40 $42

Furniture & fixtures (net) $10 $12 $15

Total Net Fixed Assets $45 $52 $57

TOTAL ASSETS $240 $271 $293

LIABILITIES

Current Liabilities

Accounts payable $50 $52 $55

Short-term notes $24 $25 $26

Current portion of long-term notes $14 $14 $14

Accruals & other payables $14 $14 $14

Total Current Liabilities $102 $105 $109

Long-term Liabilities

Rent $12 $12 $12

Other long-term liabilities $126 $154 $172

Total Long-term Liabilities $138 $166 $184

TOTAL LIABILITIES & EQUITY $240 $271 $293


28

Break-Even Analysis

BREAK-EVEN ANALYSIS

FIXED COST 1,500$

VARIABLE COST 5.00$

NUMBER OF UNITS 25

UNIT PRICE 15.00$

NET

UNITS

NET

REVENUE

FIXED

COST VARIABLE COST

TOTAL

COST

TOTAL

PROFIT

0 $0 $1,500 $0 $1,500 -$1,500

25 $375 $1,500 $125 $1,625 -$1,250

50 $750 $1,500 $250 $1,750 -$1,000

75 $1,125 $1,500 $375 $1,875 -$750

100 $1,500 $1,500 $500 $2,000 -$500

125 $1,875 $1,500 $625 $2,125 -$250

150 $2,250 $1,500 $750 $2,250 $0

175 $2,625 $1,500 $875 $2,375 $250

200 $3,000 $1,500 $1,000 $2,500 $500

225 $3,375 $1,500 $1,125 $2,625 $750

250 $3,750 $1,500 $1,250 $2,750 $1,000

275 $4,125 $1,500 $1,375 $2,875 $1,250

300 $4,500 $1,500 $1,500 $3,000 $1,500

325 $4,875 $1,500 $1,625 $3,125 $1,750

350 $5,250 $1,500 $1,750 $3,250 $2,000

375 $5,625 $1,500 $1,875 $3,375 $2,250

400 $6,000 $1,500 $2,000 $3,500 $2,500

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

0

25

50

75

10

0

12

5

15

0

17

5

20

0

22

5

25

0

27

5

30

0

32

5

35

0

37

5

40

0

CO

ST

-VO

LU

ME

-PR

OF

IT

NET UNITS (000)

Breakeven Analysis


29

Cash Flow Statement

Year: 2012 2013 2014

Receipts

Cash sales 143,495 157,500 165,985

Collections from credit sales 6,505 7,500 9,015

Loans received 14,000 14,000 14,000

Other 50,000 50,000 50,000

Total Receipts 214,000 229,000 239,000

Payments

Cash purchases 3,415 5,000 6,500

Payments to creditors 24,000 25,000 26,000

Salaries and wages 37,440 38,480 39,520

Employee benefits 1,800 1,900 2,000

Payroll taxes 4,549 5,000 5,250

Rent 12,000 12,000 12,000

Utiltities 6,000 6,250 6,350

Repairs and maintenance 2,000 2,000 2,000

Insurance 12,000 12,000 12,000

Travel 5,500 6,000 6,250

Telephone 600 625 650

Postage 550 600 625

Office supplies 1,750 1,500 1,525

Advertising 2,000 1,850 1,750

Marketing/promotion 2,200 2,000 1,850

Professional fees 5,500 5,500 6,000

Training and development 1,000 750 750

Bank charges 600 600 600

Miscellaneous 0 0 0

Owner's drawings 130,000 130,000 130,000

Loan repayments 14,000 14,000 14,000

Tax payments 12,500 13,000 13,500

Other 0 0 0

Total Payments 279,404 284,055 289,120

Cashflow Surplus/Deficit (-) (65,404) (55,055) (50,120)

Opening Cash Balance (12,052) (77,456) (132,511)

Closing Cash Balance (77,456) (132,511) (182,631)

3-Year Cash Flow Statement

Documents

MT499-02 Final Assignement-HMarble