Crochet Business

My crochet business would be anything related to crochets. It may be a hat for a baby,
facemasks or lanyards which are timely, handkerchiefs, bags and many more.

Detailed Procedure
As this business is complex and will rely on skills, practice, time and whatever the clients wish
within my area of practice, a detailed procedure will be impossible. However, to serve as a
guide onto how this business will proceed, main raw materials such as yarn, crochet hooks,
tapestry needle, stitch markers and hook case are to be prepared including a clear mindset.

Product Costing and Pricing Strategy

Costing the product in a conventional method which is the most common among these types of
business would be just reasonable. Let's say you sell a Php150yarn and a baby hat that takes an
hour. The hourly wage is Php60. Analyze your monthly business costs (website costs,
workstation / office costs, marketing, etc.), divide them by your monthly sales goals, and then
add a Php50 fee to each item sold (this amount depends on the cost and the goal) and our
desired profit margin is 50%. Either way, the price of the hat will be: Php150+ (Php60/hour x 1)
= Php210 (wholesale price) x 2 = Php420.

Forecasted Income Statement

Abrenzosa Crochets
Statement of Comprehensive Income
For the month ended 30/04/2022
Revenue
Sales Php10,600
Total Revenue Php10,600.00
Expenses and Losses
Cost of goods sold (goods + freight out) Php5,250
Advertising expense Php100
Store Supplies Php500
Total Expenses Php5,850.00
Net Income Php4,750.00