Scenario – Business Planning Michelle Smith had recently graduated from a business program at her local university. Afte
Posted: Mon May 30, 2022 8:31 am
Scenario – Business Planning
Michelle Smith had recently graduated from a business program at
her local university. After graduation, she took the summer off to
enjoy some down time, and then started looking at the job market.
After several months, had not figured out what she wanted to do.
The problem was most job opportunities did not appeal to her.
Some of Michelle’s peers who graduated with her had started
working for big corporations, and others had been able to secure
jobs with the government. However, Michelle did not want to work a
9-5 job, but she did want to earn a lot of money. She had a few
ideas, and while contemplating her options, Michelle decided she
was going to open her own handmade jewellery boutique. She loved
jewellery and had been making her own for friends and family for
years. She already had some supplies and tools, could get a small
retail space in the mall and create an online website to sell her
products. She had it all worked out in her mind, and although she
took several business courses in university, did not get around to
writing out her business plan.
Michelle did some research and found out she might qualify for a
government new business loan. She also knew she needed to do
some market research and find out who her target market was, and
how much they would want to spend on her type of product. From a
quick search on the internet, Michelle was able to find the average
household spending in her geographic area and the number of
households. It looked something like this:
160,000 households
$627 annual average spending for Jewellery and Watches
(160,000 x $627) = $100,320,000
Michelle continued her research and found out there were 158
retailers selling jewellery products in the area, and in addition
to her own store, this equalled 159 retailers. However, she
specialized in handmade jewellery, and some of the others had much
higher end products. If they equally shared the profits, this meant
there was an average of $630,943 each. However, some of the
retailers were very well established and well known in the area.
Michelle wanted to get a better estimate of the potential sales of
her business but wasn’t sure what to do next.
Now that you have familiarized yourself with Michelle’s
situation, answer the following questions:
What steps
Michelle Smith had recently graduated from a business program at
her local university. After graduation, she took the summer off to
enjoy some down time, and then started looking at the job market.
After several months, had not figured out what she wanted to do.
The problem was most job opportunities did not appeal to her.
Some of Michelle’s peers who graduated with her had started
working for big corporations, and others had been able to secure
jobs with the government. However, Michelle did not want to work a
9-5 job, but she did want to earn a lot of money. She had a few
ideas, and while contemplating her options, Michelle decided she
was going to open her own handmade jewellery boutique. She loved
jewellery and had been making her own for friends and family for
years. She already had some supplies and tools, could get a small
retail space in the mall and create an online website to sell her
products. She had it all worked out in her mind, and although she
took several business courses in university, did not get around to
writing out her business plan.
Michelle did some research and found out she might qualify for a
government new business loan. She also knew she needed to do
some market research and find out who her target market was, and
how much they would want to spend on her type of product. From a
quick search on the internet, Michelle was able to find the average
household spending in her geographic area and the number of
households. It looked something like this:
160,000 households
$627 annual average spending for Jewellery and Watches
(160,000 x $627) = $100,320,000
Michelle continued her research and found out there were 158
retailers selling jewellery products in the area, and in addition
to her own store, this equalled 159 retailers. However, she
specialized in handmade jewellery, and some of the others had much
higher end products. If they equally shared the profits, this meant
there was an average of $630,943 each. However, some of the
retailers were very well established and well known in the area.
Michelle wanted to get a better estimate of the potential sales of
her business but wasn’t sure what to do next.
Now that you have familiarized yourself with Michelle’s
situation, answer the following questions:
What steps