IA3

Personal Business Plan

Mission Statement
To connect people to a place or a memory through the senses.

Business Environment
-           What industry will you be competing in? - I will be competing in the arts/photography industry. I plan to take photographs, make prints of them, then accessorize them with scents, frames, and decorations that are specific to each individual photograph.
-           How does the industry look like in the global environment? - It’s easy to enter, because anyone with a device that can take photos (phones, tablets, cameras) could potentially start the same business. Many people all over the world sell prints. They only need a photo-capturing device, printing supplies, and a means to open an online store. In fact, O*NET reports that 64% view photography as an extremely competitive market.

I also decided to pull statistics from Etsy, because it’s a popular, global e-commerce site that artists use to sell their items, and it is also what I would use to sell ProductMe. 83 countries do business via Etsy. 92% of buyers felt that the goods offered on Etsy couldn’t be found anywhere else. According to Statistica, in 2017, Etsy’s revenue was over 440 million dollars. It is the second most popular online market, behind Amazon. There’s almost 2 million sellers and 33 million buyers.

27-4021.00 - Photographers. (n.d.). Retrieved April 08, 2018, from https://www.onetonline.org/link/summary/27-4021.00

Statista - The Statistics Portal for Market Data, Market Research and Market Studies. (n.d.).

Retrieved April 08, 2018, from https://www.statista.com/

-           What economic forces influence the supply and demand of opportunities in your industry?

--Technology. E-commerce is growing. In 2017, 180 million people bought goods online. That number is projected to increase to 200 million by 2020.

--Employment rates- low unemployment would mean more people are earning money with which to buy ProductMe.

--Inflation/Recession; factors that result in customers having less disposable income. Then, they would be less likely to spend money on luxury items such as ProductMe.

--Interest Rates- low interest rates cause people to buy more, as they can borrow money without having to worry about paying exorbitant amounts of interest.

Cole-Ingait, P. (n.d.). How Do Economic Forces Affect E-Commerce Organizations? Retrieved

April 08, 2018, from http://smallbusiness.chron.com/economic-forces-affect-ecommerce-

organizations-76681.html

Entrepreneurship and Strategy
-           As the CEO of the startup Company Me, what challenges do you envision "promoting" and "selling" Product Me? – It’s easy for people to take photos. If a person has the money to buy a print, they surely also have the money to buy a camera, or even buy printing supplies so they can make a print themselves. Photos are a luxury item. I hope to differentiate ProductMe through innovation, by incorporating scents and objects into the “capture a memory” theme of photography. However, there are DIY tutorials out there for people to make scented photos themselves. Therefore, I would need to show how my product is truly special and unique—why people should buy it instead of trying to recreate it themselves.
-           What potential strategies would you consider, starting out, as an "entrepreneur?" Consider Company Me as a Startup!

1. Identify Core Values. These will supplement the mission statement by helping to determine what my company stands for. They will help guide my business decisions by providing an outline of what’s important and what’s acceptable when conducting activities.

2. Conduct a SWOT analysis. I need to know what my own company’s strengths and weaknesses are, and how it compares to the rest of the business world. I’m going to need to know my competition. I have to look at what my competitors are selling, how their products are similar and different to what I’m offering, and how they are promoting their products. This way, I can properly differentiate myself in the market. Then I could have an idea what to improve upon and work towards. Perhaps I may even be able to take advantage of my competitor’s weaknesses.

3. Research technology that I’m using to make/sell ProductMe. This will ensure that I’m being efficient and taking full advantage of anything that could improve my operations. It will maximize efficiency and effectiveness. It’s also important to stay up-to-date on technology, as it rapidly changes.

4. Find/master a niche. I must pinpoint what demographic ProductMe appeals to in order to effectively promote/sell it. I should fully understand ProductMe’s market in order for it to be a successful product. I also believe that “mastering” ProductMe’s niche would help me if I ever decided to expand the target market.

5. Set goals and objectives. I go into detail about this in Management’s Setting and Achieving Goals section. It’s important to have something to work towards and make the company better, and a means to achieve those milestones. It would also be beneficial to have tactical, operational, and strategic plans.

6. Be responsive to change. The business world is rapidly changing and evolving. I’m going to need to be adaptable and willing to change my business if the situation requires, otherwise it’ll likely result in a business failure. This also involves listening to customer feedback.

Management
-           As the General Manager of Company Me, how would you be planning, organizing, directing, and controlling Company Me? – I plan to have this company be a dual partnership. My mom has been running a sole proprietorship for many years. She has an online store, is experienced with e-commerce, and keeps track of her business transactions herself. She would be a good mentor for me. Also, she makes/sells candles and other scented products, so she could supply the “scent” part of ProductMe. It would make sense for her to be my business partner. In fact, I would probably integrate the basic structure of her business plan as my own; since hers has been proving successful, it’s probably not a bad idea to model mine after it. Additionally, I would have a decent sense of how much revenue I need to make per year in order for my business to turn a profit. I’d also be able to glean how much resources (money, materials) I need to carry out business.

-           How would you motivate yourself?  - Setting goals so that I have something to work towards seems like a good idea. However, Kevin Granville says in his article, “How to Manage Your Career” that “taking an interest in something unrelated to your work can be a way to energize your interest in all things. Studies have shown that stimulating hobbies and interests correlate with less burnout and a greater ability to overcome adversity in your job.”

Granville, K. (n.d.). How to Manage Your Career. Retrieved April 08, 2018, from

https://www.nytimes.com/guides/business/manage-your-career?smid=fb-nytimes&smtyp=pay&smvar=guides

For instance, I’ve always wanted to volunteer at an animal shelter. Getting to go there could become a type of reward for me. Plus, I might meet people through adoptions, or people who work there that could expand my network.

-           Set and achieve goals? – Peter Drucker offers this advice from his article “Managing Oneself” when it comes to setting goals: “Where and how can I achieve results that will make a difference within the next year and a half? The results should be hard to achieve, but also within reach. The results should be visible and measurable. From this will come a course of action; what to do, where and how to start, and what goals and deadlines to set.”

Drucker, P. F. (2005). Managing Oneself. Harvard Business Review, 83(1), 100-109.

-           Attract yourself to the right industries or professions? – Kevin Granville also makes the point in his article that “Building a network doesn’t require you to be an expert at networking. It just requires you to be an expert at something.” This goes along with the three questions Drucker believes you should be able to answer about yourself: What are my strengths? How do I perform? What are my values? You must be able to sell yourself, as well as your product.

Marketing
-           As the CMO of Company Me, how would you promote Product me? – I would primarily use social media as a means of promotion. I would promote the product as a bridge between an image and one’s memories. Scent is connected to memory, and infusing photographs with different scents customized for that photograph would bring it to life. The viewer would be more connected with it.

With ProductMe, I’m essentially creating a brand. It should be unique and memorable. A color scheme, logo, and one-of-a-kind font would help differentiate ProductMe. Making a name for the company would help it seem reliable, trustworthy, and encourage people to buy. I can make my name public by networking. Displaying my work at arts festivals, for instance, and handing out business cards while there would get some good publicity.
-           Who are your potential customers? – People with higher levels of income that have money to spend on luxury items such as ProductMe. “Millennials, those consumers aged 18 to 34, remain the key age demographic for online commerce, spending more money online in a given year than any other age group.” “Online shoppers tend to live in households with higher-than-typical incomes” – which is part of why I think selling on Etsy is a good idea.

Smith, C. (2015, February 23). The surprising facts about who shops online and on mobile. Retrieved April 15, 2018, from 

http://www.businessinsider.com/the-surprising-demographics-of-who-shops-online-and-on-mobile-2014-6

Looking at my Instagram, I can see that the people who follow me and like my photos are about 80% women, specifically white women ages 18-55. Through research, I’ve found that when it comes to art, women are typically the buyers. Women also buy on Etsy more than men, so it makes sense to assume that middle to upper-class white women ages 18-55 are my potential customers.
-           What would be your marketing mix and Four Ps?

1. Developing a product that meets the needs of the target market – my target market wants pretty objects that can be displayed in a home or apartment: art that is a good investment. They want art that has excellent value, looks amazing, and has some kind of meaning to them. ProductMe is more valuable and meaningful than the average photograph because it is infused with scents and keepsake objects.

2. Setting a price for the product – I will factor in the cost of supplies and labor. The price also depends on my competitor’s prices and consumer expectations. And, of course, I want to make a profit. I’ll set the price depending on how much revenue I want/need to bring in each year.

3. Distributing the product—I plan to distribute ProductMe through e-commerce, by using Etsy. I will make, package, and ship ProductMe myself.

4. Promoting the product – I will inform potential buyers about ProductMe digitally: online and through social media. I’ll use a variety of different platforms to communicate the same message. I’ll include a link to my website or online store on my social media platforms so that there is an easy gateway for potential customers.
-           How would you design and develop Product Me as an innovative offering that would attract potential customers? - I plan to make ProductMe innovative through customization. In addition to having preset photo/scent/decoration combinations, I’ll make there be a custom option so that people can pick a print and then select scent and decoration combos themselves. Or, people can give me a digital copy of a photograph that they took, and I can decorate it for them according to how they want. I want customers to feel engaged and believe they’re getting the most out of what they are buying.
-           How would you apply digital marketing skills to promote Product Me?

One way to digitally market is by building a website, with my brand name as my domain name. I would then create content designed to target an audience, bring in traffic, and initiate sales. Incorporating compelling visuals, quality content, and head-lines with specific keywords and phrases would help with search engine optimization. Using the right keywords and phrases is important for all social media platforms, not just a website.

Accounting and Finance
- As the CFO of Company Me, create a simple hypothetical balance sheet when you get your first job.

Balance Sheet as of April 16, 2018
Assets		Liabilities		Owner's Equity
Cash	3,000	Notes Payable	2200	Capital Stock	200
Inventory	0	Accounts Payable	900	Retained earnings	800
Supplies	2,000	Loans	1400
Accounts Receivable	500
Total Assets:	5500	Total Liabilities and Owner's Equity:			5500

- How would you create a financial plan for Company Me?

1. Forecast sales

2. Create an expenses budget

3. Develop a cash flow statement

4. Income projections

5. Projected balance sheet

6. Breakeven analysis

Information Systems and Operations
- As the CIO of Company Me, what information systems tools and analytics would you consider using to optimize your productivity and operational efficiency?

Etsy has tools that allow business to keep track of their transactions through the site. Google Analytics would be extremely helpful in evaluating the performance of ProductMe by using data to determine customer experience. It’ll help me understand a buyer’s process.

I also found a list of resources through Pennsylvania’s Small Business Development Center: http://www.pasbdc.org/services/research-tools.

The most useful would be:

Industrius CFO – provides financial profiles and performance information for over a million companies. This would be useful for measuring my competition.

SBDCNet – provides demographics customized to your industry or geographic location. This would be useful to determine who my target audience is and whether that target changes.

First Research – provides market analysis tools and key statistics on competitive operating conditions, business challenges, industry trends, and current or historical industry growth.