Task 1
You want to start a summer business to earn money. What will you do? You have to consider how much money you can afford to invest in this business, how much it will cost you to make each item, and how much you're going to charge for each item. Research something that would be reasonable to make and sell with the startup investment you have determined.
a. What is the total amount of money you are willing to invest in this business?
b. What item are you going to make and sell? Why?
c. Describe how your business will work. How much will it cost you to make each item? How much will you sell each item for?
d. Do you think your business will be profitable? Explain your answer.
a. The total amount of money I am willing to invest in this business is $5,000.
b. I have decided to make and sell handmade jewelry. This is because making jewelry does not require a large initial investment and there is a high demand for unique and custom-made jewelry items. Additionally, it allows me to showcase my creativity and passion for design.
c. My business will work by creating a variety of jewelry pieces including necklaces, bracelets, earrings, and rings. I will source high-quality materials such as gemstones, beads, and metals for creating the jewelry. The cost of making each item will depend on the materials used, but on average it will cost around $10 to make one piece of jewelry.
For pricing, I will consider the cost of materials, labor, and desired profit margin. I will also research the market prices for similar handmade jewelry products. Based on my market research, I will sell each item for an average price of $25.
d. I believe my business will be profitable for several reasons. Firstly, handmade jewelry is often perceived as more valuable and unique, which allows for higher profit margins compared to mass-produced jewelry. Secondly, I have set the selling price at $25, which provides a decent profit considering the cost of materials and making each item. Additionally, by offering a variety of jewelry pieces, I can cater to different customer preferences and potentially increase sales. However, to ensure profitability, I will also need to maintain reasonable overhead costs, effectively market my products, and consistently deliver high-quality craftsmanship.