“Happy Cosmos” Business Plan

handmade accessories & plush by wendy oliva

ABOUT HAPPY COSMOS Happy Cosmos produces handmade accessories and stuffed toys in a global online marketplace. The company was built by a creative entrepreneur whose mission is to provide young women with confidence and self-expression through one-of-a-kind products.

A one-woman team creates, designs, photographs, ships products, communicates with costumers and punches the numbers driving the company forward. Happy Cosmos currently sells worldwide and has accumulated over 2,500 sales in 5 years of operation.

HISTORY

At the age of 15, Wendy Oliva became inspired to create accessories after watching a video teaching sewing basics.

This gave Wendy inspiration and initiative to start her brand named Happy Cosmos.

Wendy spent two years practicing sewing & creating keychains for two years.

Happy Cosmos was opened in 2010 in an online handmade marketplace named Etsy.

PRODUCTS CURRENT Happy Cosmos offers kitsch products that include bags, pouches, hair accessories, and plush. Each product is designed and created by hand. The store also offers customization services that allow the client to create a new product or alter an existing product. Product pricing for each category is based on cost-of-materials and competitive pricing.

FUTURE The product line will grow to include computer accessories, apparel, paper good, and sewing patterns as well as creating more products in existing product lines. Each product will be designed in house and created by a manufacturing company and distributed and sold to stores around the globe.

PRODUCT PRICING

AWARENESS OF PRODUCT

Product pricing is based on cost-of-material, fees, and cost of labor. The prices range from $2.50 for a keychain to $25 for a bag. The model is based on competitive prices as the shop offers custom products for a lower price that boutiques and custom shops cannot offer.

Since Generation Y or Millennials are connected online, Happy Cosmos intends to have a strong social media presence. Social media sites such as Facebook, Pinterest, Instagram, Tumblr, and deviantArt. There will also be incentives such as giveaways of product to create a buzz on social media to gain more advertisement.

SALES AND DISTRIBUTION Products will continue to be sold online.

After being manufactured, the products will be proposed to companies that fit with the brand in order to get them licensed and distributed. This will allow the products to have more exposure and sales.

OPERATIONS LOCATION AND OFFICE Headquarter would be located in the United States of America.

86.7% of all orders come from the United States 34.2% of site views come from the United States other countries include United Kingdom, Canada, Australia, Germany and France The top city is Miami, Florida 83/1366 fans on Facebook The physical space for headquarters consists of an open layout, 4,036 square feet office space that will be separated into different sections: workshop, designers’ area, formal and informal meeting space, employee facility spaces, and two open offices for operations and management.

PRODUCTION PROCESS

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Designers and sample makers will brainstorm product ideas

The ideas will be revised by the whole team in a pass or fail

Passed ideas will have visuals & 3D mock-ups created

These prototypes will be sent overseas to be manufactured

After 20-25 days, manufactured products will be sold online

COST TO MARKET Direct Costs: 1. Cost of materials 2.Hiring personnel 3. Salary 4. Software 5. Equipment 6. Furniture

Indirect costs 1. Miscellaneous office supplies 2. Indirect labor costs 3. Temporary employees 4. Utilities 5. Rent of building 6. Administrative staff

TOP 10 FINANCIAL ASSUMPTIONS 1. Salary: $180,000 2. Manufacturing expense: $2,500 3. Space rent: $60,000 a year 4. Revenue 2015: $25,000 5. Office furniture: $50,000 6. Expense for equipment: $5,500 7. Legal services: $100-$200 hourly

8. Software expense: $1,000 9. Supplies and materials: $1,000 10. Stationery: $500

TIMELINE 2015

2016

2017

Find and rent office space Hire personnel Start manufacturing products Add new product lines Propose to companies for distribution Get products in retail stores Continue to sell online and retail stores

FUTURE PLANS Happy Cosmos plans to expand in order to gain brand recognition, offer a wider range of products and services physical headquarters to manage the growth. Happy Cosmos will also convert from Sole Proprietorship to a LLC.

The team will grow from one team member to six with two designers, two sample makers, manager and customer service representative.

The elements needed to expand and grow are listed below.

MANUFACTURING Have new and existing products manufactured at home country or overseas.

CAPITAL A small multi-disciplinary team to perform ideatio of new products & marketing strategies.

PHYSICAL LOCATION Carry out company functions from headquarters and have a boutique to sell products.

INCREASE SALES Increase sales by $100,000 over the next five years.

ORGANIZATION ORGANIZATIONAL STRUCTURE

LEGAL

A flat structure with a self-directed, multidisciplinary team will to make the decision-making process easier and faster.

FULL TIME Founder and CCO

FOUNDER & CCO

ACCOUNTANT

PRODUCTION

CUSTOMER SERVICE

PART TIME Product development, sample maker, graphic designer, customer service representative CONSULTANT Legal and accountant

DESIGNERS

COMPENSATION Salary based with deferred payment.

Full-time • Chief designer and owner: $25/hr $48,000/yr Part-Time Employees • Sample Maker: $23/hr $22,000/yr • Product Development: $25/hr $24,000/yr • Graphic Designer: $25/hr $24,000/yr • Customer Service Representative: $15/hr $14,400 Consultants • Accountant & bookkeeping: $100 monthly charge $1,200 a year

MANAGEMENT STYLE • Communication & collaboration • Fairness & respect • Positive, learning environment • Spread of “cuteness” / Be the brand

MARKET ANALYSIS PRIMARY MARKET 87% of Facebook audience are women

Young women (18-24) From around the world

50% are between ages 18-24

Have a like for handmade, kitsch products

Live in 40 countries, mainly USA

SECONDARY MARKET

Mothers (30-44)

26% of Facebook audience are women

From the United States

Second largest audience

MARKET SEGMENTATION

SIZE OF MARKET

MARKET TRENDS

Young women • Like cute and kitsch products • Want function and style • Price conscious • Looking for one-of-a-kind-product

• 18-24 Females in the United States: 15,328,592 according to 2013 census • 30-44 Females in the United States: 30,600,206 according to the 2013 census • 57% or 17,442,118 of Gen X females are having children.

Young women • Shop online • Want quality in products • Price conscious • Looking for a unique product

Mothers • Price conscious • Buying gift for child • Buy party favors for child’s party • Quality and quantity

COMPETITION

Mothers • Run blogs depicting family life • Use certain social media platforms • Stay connected • Look for quality and quantity

COMPETITIVE ADVANTAGE

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Large, corporate retail stores

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Boutique stores

Offers one-of-a-kind products not found in retail stores

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Online Marketplaces

Offers customization services for new and existing products

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Other handmade online stores

Provides products to a global market

Friendly, personalized customer service