Kamarri Williams

OPPORTUNITY RECOGNITION & BUSINESS STRUCTURE

1.1 Business Opportunity
My product is already an existing product. Everyone needs to be aware of the time, and
accessories can really make an outfit great. So (especially with watches making a comeback
in style) watches are a huge want with a very high demand.

1.2 Type of Business

I have found an amazing wholesale source online to provide me with plenty of quality
watches at a high quantity for a moderately low cost. I will sell directly to the customer, thus
being a retail business.

1.3 Type of Business Ownership

I want to be a sole proprietor. One of the main advantages of a sole proprietorship is
complete and total control of the business. Not to mention full profit from the business.

1.4 Mission Statement

Committing to provide an inexpensive, stylish wrist accessory for stylish young individuals.

1.5 Social Responsibility

For every ten watches sold, the profits from the tenth watch will be donated to the Alameda
County food bank. Thousands in Alameda County go hungry and with the ability to abolish
the hunger, I will use the resources available to me to help the food bank.

1.6 Qualifications
I am a dedicated young gentleman who is very qualified due to my ability to not take no (or
maybe) for an answer. I also use new and existing knowledge and apply it situations of need,
so my ability to adapt is useful and unique. My business/tech savvy background also attracts
customers of all kinds, even though who would not usually buy my product, thanks to my
commitment and persuasion skills to get the job done.

Kamarri Williams

MARKET RESEARCH
2.1 Market Research
My market research has lead to me understanding more about my market. The selling of
product has not been really tapped into compared to other markets so this is a great chance to
take that opportunity and take over it. According to my research, 98% of people surveyed would
buy an inexpensive, quality, watch. This allows me to be comfortable and confident in selling to
my potential market.

2.2 Target Market

Demographic Information: Around 50,000 of targeted population consisted in the three cities:
San Leandro, Oakland, and Hayward
Geographic Information: San Leandro, Oakland and Hayward. Age13-20, income not necessary
Psychographic Information: The personalities of students at San Leandro High School consist of
frugal students who search for the best deal possible and look as best as they can
Buying Patterns: Buy one every year and a half

2.3 Competitors
Direct Competition: Malls with kiosks, clothing stores, internet retail, and other entrepreneurs.
Indirect Competition: Other entrepreneur around school (especially the Business Academy) and
websites designed for the selling of watches.

2.4 Competitive Advantage

1. Lower price with the same quality
2. More personalized experience with customer and assistance
3. Smaller variety for an easier decision for the customer
4. No tax

Kamarri Williams

2.5 Business Growth

Short-Term Business Goals: Start making around $200.00 a month in profit and establish a loyal
customer base.
Long-Term Business Goals: Start making around $1100.00 a month in profit with a full running
website that can provide a sizable amount of wealth.

2.6 Challenges
Short-Term Business Challenges: Getting enough start up capital to buy initial product. Getting a
name out there for reliable sales every month
Long-Term Business Challenges: Staying consistent in selling product. Also keeping up with the
demand for product will be a minor, but prevalent challenge.

3 PROMOTION AND SALES

3.1 Marketing Plan
Kamarris Watches for Men will market only to the targeted market of young men between the
ages of 13-20 in the San Leandro, Hayward, and Oakland area. The marketing plan will highlight
the following customer benefits:
1. Convenient device for time
2. Attractive accessory
3. Easy use
4. All colors and sizes to fit the customers personal preference and style
5. Quality and affordable

Kamarri Williams

3.2 Promotion
Kamarris Watches for Men is going to heavily rely on inexpensive promotion to relay his
product to his targeted market. Kamarri has decided on five promotional activities that best fit his
business and budget.
1. Web site: Kamarris Watches for Men is going to engage in a web enabled business. So
Kamarri will design a website to sell his quality watches online, to reach a broader audience.
2. Incentive: Incentives will be one of Kamarris main draws for customers. For example if you
buy two watches, you can purchase another one for 50% off of the original price. This will be
used as an attraction like 50% OFF
3. Business Cards: Kamarris Watches for Men will use business cards to get returning customers
and use them for free promotion through word of mouth. This will also develop a loyalty with
customers to return if they wish to purchase more. The business card will include the name, and
number of my business.
4. Internet Advertisement: Google offers advertising on other websites for a fee. Using
demographics, Kamarris Watches for Men can advertise on websites that his target market
frequents.
5. Local Promotion: With the use of flyers, selling around personal, etc. Kamarri will utilize a
large market of customers at school, around home, and in the three main areas of San Leandro,
Hayward, and Oakland.

3.3 Sales Method

Kamarris Watches for men will mostly depend on personal selling and customer interaction; to
not only provide a quality product, but a quality human experience. Also, while not dependent,
Kamarri will use internet sales with a business website to reach a broader audience.
Steps a consumer follows to purchase my product:
1. Customer will buy a product from my website using PayPal
2. A customer will purchase in person or one of my commissions

3.4 Sales Estimates

Factor
Market Analysis
Maximum Capacity

Influence on Sales
The number of targeted customers, 50,000, in the three East Bay
cities of Hayward, Oakland, and San Leandro, Kamarri will need to
sell to 0.014% of his targeted market
Kamarri has a maximum capacity of selling 15 units per week (35
hours), which leads to a maximum of 60 customers in a month. This

Kamarri Williams

means Kamarris sales estimates are based on his maximum capacity

Break Even Units

Seasonality

Month
January
February
March
April
May
June
July
August
September
October
November
December
Annual Total

Kamarris business should be affected a little during seasonal

changes, due to with cold weather; less people are outside shopping
and what not.

Units
60
70
60
60
60
50
45
45
50
55
60
85
700

Revenue
$2100
2450
2100
2100
2100
1750
1575
1575
1750
1925
2100
2975
$24,500

Kamarri Williams

3 FINANCIAL INFORMATION & OPERATIONS

4. FINANCIAL INFORMATION & OPERATIONS
4.1Definition of One Unit
One unit is defined as one watch sold to a customer.
4.2Variable Expenses

Material Description
Watch
Small Box

Materials
Bulk
Bulk
Price
Quantity
$65.00
5
$15
5
.00
Total Material Costs

Quantity
per Unit
1 Watch
1 Box

Cost per
Unit
$15.00
$3.00

per Unit

$18.00

No Labor

Labor
No Labor

No Labor

Material Costs
$18.00

EOU
Labor Costs
N/A

TOTAL EOU
$18.00

4.3Economics of One Unit

Selling Price per Unit
Variable Expenses per Unit
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold
Other Variable Expenses
Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses
Contribution Margin per Unit
4.4Production Process

$40.00

$18.00
N/A
$18.00
$0.00
$3.00
$ 3.00
$21.00
$19.00

Kamarri Williams

Description of Step
1. Consult with customer on what style and color of
watch they wish to purchase and complete
transaction of money and product.

Time
5-10
minutes

Cost
$18.00

Kamarri Williams

4.5Fixed Expenses for One Month

Expense Type
Insurance
Salary
Advertising

Monthly
Cost
$0.00
$0.00
$10.00

Interest

$0.00

Depreciation

$0.00

Utilities

$11.29

Rent

$60.00

Other Fixed
Expenses
Total Fixed
Expenses

$17.98
$99.27

Explanation
No insurance will be needed for this
product
Kamarri will use profit from every month
as his salary.
Advertising will be used in the form of
flyers and word of mouth. Also the
occasional local event will be explored for
giving out business cards
No loans will be taken out to provide start
up for this business.
Since Kamarri will not be using any
equipment to sell his product,
depreciation is not a factor.
The utilities that Kamarri will use that are
associated with his business are cell
phone, PGE, and internet.
Kamarris business will pay for 10% of his
rent, because that occupied space will be
focused on his business.
Kamarris other fixed expenses is
comprised of his shipping cost.

Kamarri Williams

4.6Income Statement for First Year of Operations

REVENUE
Gross Sales
Sales Returns
Net Sales
VARIABLE EXPENSES
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold
Other Variable Expenses
Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses

$24,500.00
$24,500.00
0.00
$24,500.00

$12,600.00
0.00
$12,600.00
$0.00
3,500.00
0.00
$3,500.00
$16,100.00

CONTRIBUTION MARGIN
FIXED OPERATING EXPENSES
Insurance
Salaries
Advertising
Interest
Depreciation
Utilities
Rent
Other fixed expenses
Total Expenses
PRE-TAX PROFIT
Taxes (15%)
NET PROFIT
4.7Startup Investment

$8,400.00

$0.00
$0.00
$10.00
$0.00
$0.00
$135.48
$720.00
$17.98
$874.46
$7525.54
1128.83
$6396.71

Kamarri Williams

Item
Watches
Watch Box

Why Needed
Vendor
The main product
Online
that needs to be sold manufacturer
Help separate
Online
product from other
manufacturer
business and stand
out
Total Startup Expenditures

Emergency Fund (1/2 of startup expenditures)

Reserve for Fixed Expenses (covers 3 months of fixed expenses)
Total Startup Investment

Cost
$1300.0
0
500.00

$1800.
00
900.00
297.81
$2997.
81

4.8Financial Ratios
Return on Sales (ROS):
Annual Net Profit
Total Annual Sales

$6396.71
$24,500.00

26%

$0.26

Return on Investment (ROI):

Annual Net Profit
Total Startup
Investment

$6396.71
$2997.81

213%

$2.13

Breakeven Units (Monthly):

Fixed Monthly
Expenses
Contribution Margin

$99.27
$19.00

5.22%

6 units