EAST WEST UNIVERSITY

Faculty of Business

A Business Plan for Jewelry Shop

An Assignment for the partial fulfillment for the Course BUS 101 (INTRODUCTION TO BUSINESS)

Submitted to
Mrs. Farhana Ferdousi

Submitted by
Md. Tarequl Islam Ashib Mahmud Md. Jony Khan Md. Rafikul Islam G.M. Shaharul Zawwad ID 2010-3-10-027 ID 2010-3-10-114 ID 2010-3-10-113 ID 2010-3-10-115 ID 2010-3-30-050

Date: 6th December 2010

Acknowledgment

i.

Mrs. Farhana Ferdousi - Assistant Professor; Course Director: Introduction to Business, East West University. Special thanks to her for giving us direction and supporting us in all ways. Md. Shahidul Islam Professor; Course Director: Finance, London South Bank University. Thanks to him for giving us guide line. Mr. Kamrul Hasan - manager of Gold Smaith Jewelry shop, Uttara Brunch. For giving us information Mr. Habebulla Nahid - Manager of the Parome Jewelry shop, Uttara Brunch. For giving us information Mr. Nazmul Hasan Manager of the Amin Jewelry shop, Uttara Brunch. For giving us information East West University Library. All of my friends who supported us during our study.

ii.

iii. iv. v. vi. vii.

TABLE OF CONTENTS:

PAGE NO.

1. General Introduction 2. Subject Specific Introduction 3. Definition of Business Plan 4. Government Permission i. Bangladesh Jewelry Somity ii. Tread License iii. Dealing License & iv. TIN number 5. Location 6. Capital Requirement 7. Business Insurance 8. Security System or CCTV camera technology 9. Good Relation with Bank 10. Categorize 11. Competitors 12. How to find Customers and Keep Them 13. Marketing Strategy 14. Pricing 15. Promotion Strategy 16. Conclusion

4 4 4 4 4 5 5 5 5 5 6 6 7 7 8 9 10 10 11 11

17. Bibliography

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General Introduction:
Business plan is very essential part for a business. A business cannot be set up or run without business plan. For every business there must be business plan. It can be said that business plan is a mirror of a business. Business plan varies business to business. For different business there are different plans which are called the business plan of that business. For starting jewelry there should be a proper business plan. Without a business plan it will be difficult to decide where or how to begin a jewelry shop. To get success in jewelry business there must be some unique ideas which should be based on correct information.

Subject Specific Introduction:

Jewelry Business is a very attractive business for those who are specially new to business. In Bangladesh any one can start jewelry business following some rules. In Bangladesh there are many opportunities to start a business. Getting licenses for jewelry business or shop are easier than another country. In Bangladesh there are many possibilities to get success in this business. As our young generation are getting interest more and more to jewelry, if we open jewelry shop it can be profitable.

Definition of Business plan:

A business plan is a document that summarizes the financial objectives of a business and contains the detailed plans and budgets. The definition of Business plan varies writer to writerA written document that describes the business, the goods or service, the customers, the competition, the financing, and all activities necessary to enter business and make or sale a good or service. It is the game plan of the new business. {Staven J. Skinner (1992)} Business plan is the most crucial document for our business enterprise. While writing a business plan, we can often make mistakes. If we are a startup business and seeking funds, these mistakes can be very costly. Following are few of the key mistakes commonly committed by entrepreneurs when we write a business plan. {Korton J. Willium(2007)}

Government Permission:
To start a Jewelry business first of all we need government permission that means the License. To start that business we need four kind of License. That-

1. 2. 3. 4.

Bangladesh Jewelry Somity Tread License Dealing License & TIN number

Lets discuss about this license.

1.

Bangladesh Jewelry Somity (BJS):

To start a jewelry shop first we need the permission by the Bangladesh jewelry somity and become a member in BJS. For that permission we have to pay 5,000/- to 7,000/- taka. Then every year in October we must pay 5000/- to 7000/- taka for our membership.

2.

Tread License:
After getting the BJS license then we need the Tread License by the CityCorporation. For this license we have to pay 4000/- taka. To renew our license we have to pay 1.5% vat in every month within 10th.

3.

Dealing License:
After getting the Tread license then we need the Dealing License by District controller. For this license we need to pay 2900/- taka. To re-new our license we have to pay 2900/- taka in every year.

4.

TIN Number: The last license we have to need the TIN number by the Customs and vat. For this license we need to pay some taka. Its an income tax. And every year we have to pay to re-new our license.

Location:
After getting the licenses we need a shop to start our business. The shop has to be in a proper place in the middle of the market or shopping mall or middle of the residential area, without that we cannot get our target customer. If our shop is not in a proper place then we can not get our target customer. Then a few customers will come and our business will face loss. So we must need a good and proper place to start our business. After analysis the market we get some information about the place. That if we get a shop 500 s. ft. in Gulshan than we need to pay 35000/- taka per month , for the same shop in Dhanmondi we need to pay 30000/- taka per month and if we get a shop in Uttara with same size than we need to pay 25,000/- taka per month. After analysis the market we decide that we get the shop in Uttara. Because if we get a shop in Uttara than we can get lots of facility. Like- because of uttara is a residential area we can get maximum people, our shop rent will be lower cost, and lots of jewelers are here thats why we dont have to go so many far to make the jewelry.

Capital Requirement:
To start the jewelry business we need lots of money. Because of this is the partnership business we decide that we dont take any loan from any bank. But at first we need to decide that how much money we need.

No 1. 2. 3. 4. 5. 6. 7. 8. 9.

For that Bangladesh Jewelry Somity Tread License Dealing License TIN Number Shop rent Shop decoration Marketing Jewelry Other Cost

Taka 7000/4000/2900/3000/1000000/100000/300000/9500000/50000/-

Total

10966900/-

We are the five partner thats why we decide that every one give 2500000/- taka. Than we have 12500000/- taka. 10100000/- taka will be invest and around 200000/- taka we will save for our next investment. If our business will be good then we invest more money to bigger our business.

Business Insurance:
Insurance is a written contract, taken with the insurance company that transfers the risk of loss to the insurer according to the terms of the contract. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accident, theft of property, and fire and storm damage, medical expenses, and loss income due to disability or death. So without a proper insurance policy our business will face a lot of problem. In this way we have a proper insurance policy

Security System or CCTV camera technology:

When it comes to properly protection our business, we know how to basic work: always lock our doors and windows. Install a burglar alarm system that can stop any thief in his tracks. Keep our most precious valuables and belongings locked up in a safe. Now, we have a technology to protect our business, like CCTV camera. It seemed like a futuristic technology is now a present day reality for our business. CCTV cameras are capable of storing several months of data within their hard drive, meaning that we can keep track of our surrounding for longer periods of time. It also provides the vital footage that police need in order to identify and prosecute and burglars. With security cameras, we will not just deter crime; we will actually catch the criminal in the attempted act.

Good Relation with Bank:

As we have the largest amount of jewelry so we can not take all the jewelry in our shop because it is too risky to keep all the jewelry in the shop. That is why we need a bank locker for our jewelry. If we can make a good relation with the bank than any time we can take our jewelry from the bank with security. So we must make a good relation with the bank.

Categorize:
There is a lots of categorize of jewelry. Like Classical Jewelry, Antic Jewelry, Modern Jewelry, Light & heavy weight Jewelry, Diamond jewelry, Gold & Diamond Mix Jewelry, Gold & Stone Mix Jewelry, Design base jewelry etc. lets discus about the categorize of jewelry. Classical Jewelry: Classical jewelry means the old design jewelry. That means those jewelry was design in when Kings was alive. Now those design come again to the market. And the older age customer wants that kind of jewelry. Antic Jewelry: Antic jewelry means the normal jewelry which was spry by some antic color. Modern, fashionable women like this kind of jewelry. Modern Jewelry: Modern jewelry means that jewelry which was design in resent time. That means the new design jewelry. All kind of women likes this kind of jewelry. Because this kind of jewelries are so fashionable.

Light & heavy weight Jewelry: Light weight jewelry means that jewelry which has light weight. Teen age women like this kind of jewelry. And heavy weight jewelry means that jewelry which has heavy weight. Normally the older age women like this kind of jewelry. Pure Diamond Jewelry: Pure diamond jewelry means that kind of jewelry which is made by pure diamond. This kind of jewelry is so expensive. Normally the high society women like this kind of jewelry. Normal women cannot buy this kind of jewelry. Diamond & Gold Mix Jewelry: Diamond and gold mix jewelry means that kind of jewelry which is made by diamond and gold. That kind of jewelry is not so much expensive and not so much cheap. Thats why anyone can buy it. And most of the women like thats kind of jewelry. Gold & Stone Mix jewelry: Gold & Stone mix jewelry is now the most popular jewelry in the market. All the women like and buy this kind of jewelry. In this kind of jewelry jeweler put the stone on the gold plat. There is many kind of stone in many color. Like Ruby, Amanal, American Diamond or AD, Amethyst, joypur stone etc. No. 1 2 3 4 5 Name of the stone Buby Amanal American Diamond or AD Amethyst Joypur Stone Color Red Green White Purple Many color Price in taka 3000/- to 4000/2500/- to 3000/2000/- to 2500/4000/- to 5000/Different price

Design base jewelry: Now in the jewelry market the most popular and sales jewelry is Design Base jewelry. All of the women like this kind of jewelry. And they want to buy this kind of jewelry. Every teen age girl and older age women like that. Just because of the jewelry design. Sometimes customers come to the shop with the design and told the jeweler make jewelry like this design. So, after the market analysis we make sure that in our jewelry shop we will have all categorize jewelry. So we can get all kind of customer. Teen age to older age women all kind of women comes to our shop.

Competitors:
After the market analysis we found that there are lots of jewelry shops in the market. But all the jewelry shop is not good. At first the jewelry market was in the Titepur, Islampur, Chokbazar, Tongi bazaar etc. in that time there is no brand name of the jewelry shop. And the jewelry shop is not available every where. But now the jewelry shop is available in every where. Lots of jewelers are available in the market. Lots of brand name is available. Every one is good. If now I want to open a jewelry shop that is so hard to survive. But this is not impossible. Now in the jewelry market there is lots of brand name like Purobi Jewellers, Amain Jewellers, Apon Jewellers, Vanaz, Dia-Gold, Diamond World, Jououa jewellers etc. Those are the main competitors for us. If i. ii. iii. iv. v. We can make a good relation with the customer Give them good service Give them good quality full product If our product price is low Convince the customer that we are the best

Then we can survive. If our profit is low that is not important if we can sale a large amount of jewelry than we can make up our target sale.

How to Find Customers And Keep Them:

Customers run the business. Without them we can not do anything. So we need customer for our business. To find the customer and keep them we give them some facility. Likei. Our product price will be low: If though we are the new jewelry shop in the market that is why we decide that if our jewelry cost are low and our product quality is high than customer must come to our shop. ii. Good Sales man: In a jewelry shop sales man can do something. If our shop has good sales man who can convince our customer by his or her attitude then customer will come our shop. iii. Credit Card Service: For our customer we will give them credit card service. If they do not have money in cash then we will give them credit card service.

iv. Discount Offer: For our customer we will give them some discount offer in many festivals. Because customer like discount offer. v. Showing them what they want: If we can show that what is customer like and show what is the different between the other products than customer must come to our shop again and again. vi. Offer them some kind of snack or drink: When the customers come to our shop than we will offer them some kind of snacks or drink, then the customer must be buying something from our shop.

Marketing Strategy:
A marketing strategy is an overall plan for conducting marketing activities that enables an organization to use its resources and strengths to meet the needs of the marketplace is a group of people who need and want a product and have the ability, willing, and authority to purchase it. There are three type of marketing strategy: undifferentiated approach, product differentiation, market segmentation approach. Undifferentiated Approach: The tactic of developing one marketing mix for the total market. Product Differentiation: The use of advertising, packaging, or other product characteristics to establish the superiority of a product. Market Segmentation Approach: The division of the total market into segments with a marketing mix directed to one of the segments. As we are new to business and our first target will establishing our business first. So we will follow undifferentiated approach.

Pricing:
Price is the value that buyers exchange for a product in the marketing transaction. The price of a product is one of its most important aspects for both sellers and buyers.

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There are actually three methods of pricing. They are cost-oriented pricing, demandoriented pricing and competition-oriented pricing. Cost-Oriented Pricing: A method whereby a firm determines a products total cost, then adds a markup to that cost to achieve the desired profit margin. Demand-Oriented Pricing: A method based on the level of demand for the product. Competition-Oriented Pricing: A method whereby a firm sets prices on the basis of its competitors prices rather than its own costs and revenues. But cost-oriented pricing will be good for us, because we are going to start business for first time. So we cannot aspect so much profit at first time.

Promotional Strategy:
Promotional message can inform the customer about product and influence them to make a purchase. Without any kind of promotion product can not be survive any more. So promotion is too much important for a product. A product can promote in many ways. There are many way to promote our jewelry. We can promote our jewelry by using newspaper, Television, Direct mail, Radio, Magazines, Outdoor display, Fashion show etc. Just because Customer likes offers so without that kind of promotion we will promote our jewelry in different way. We will give the customer many offer like Coupon offer, Rebates, Premium, Trading stamps, Contest etc. If we can promote our jewelry properly than we can get a huge number of customers. That means we can sale a largest amount of jewelry or we can get a largest amount of profit.

Conclusion:
Bangladesh is a developing country but in this country every women want jewelry. And every day the demand of jewelry is increasing. But the jewelry price is also increasing. Thats why women can not buy jewelry properly though they want to buy. Just because of the price they can not buy the jewelry. If we can go with our policy then we can make a good business. And we believe that we will make a good business.

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BIBLIOGRAPHY:

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