Your production plan will give you an idea of your operating requirements, who suppliers are, and how much time you need,
not only for designing but also for the actual
creating of your handcrafted jewelry.
This plan is the third component of your complete Business Plan. and should have a brief description of the process involved in producing your products plus any operating requirements that concern either the production process or the business itself.
To ensure your production plan is complete ask yourself the following questions and any other questions you think that might pertain to the production of your products. Prepare a list of all your requirements describing what you need, how much it's going to cost and where you are getting it from.
The Production Plan
- What federal, provincial or state and municipal government regulations must you comply with?
What necessary licenses or permits must you obtain?
i.e.: Do you plan to sell your products retail at craft shows?
Then you need a Vendor's Permit.
- Do you have the proper insurance necessary to carry out your business?
i.e. If your studio burns down or a customer is hurt in any way from one of your products are you insured to cover any damages or law suits?
- Identify your physical requirements such as size and type of work area, equipment, tools, storage space.
Where are you going to produce your products—in the garage, basement, spare room, studio? Is your work area big enough or do you need to expand? What tools and equipment do you already have and what do you need to acquire? Do you have the necessary equipment to carry your business through the initial stages of your plan?
- If you plan to market at craft shows what do you need for your display?
What are you using for fixtures and props? What do you need for furniture and lighting? Is you display portable, easy to set up and take down? Do you have an area in your display for writing up receipts and wrapping merchandise? Do you have an area for storage or maybe to set up a dressing room? (For more information on designing display booths see Displaying Jewelry to Sell)
- What office supplies do you need?
Do you need special packaging materials and boxes? Do you have order forms, receipts, brochures, sale tags, business cards, stationary, etc.? If you are selling your products directly to your customers do you have bags and tissue paper?
- What raw materials do you need?
Can you purchase your raw materials in bulk? Do you have storage area to keep all your raw materials?
- Who are your suppliers, where are they located and what are their credit terms? Can you change your suppliers easily if required?
Do your suppliers give volume discounts? Do you have more than one supplier or know of more suppliers incase you need them?
- Personnel required - Do you need to hire more help?
Full-time, part-time, skill level, availability, training required.
Now that you know how many total products you must produce to reach your goal, prepare a time schedule indicating how much time will be spent on a particular job and how many items you expect to produce in that time period. In production plan, prepare your time or production schedule considering the following:
- How many items must you produce each day, each week, each month?
- Are you piece working your items, producing in an assembly-line effect or do you finish one product at a time?
- Assess how much time your business is likely to take and how best to manage it. Be specific. If you think you will be working between 9:00 A.M. and 3:00 P.M., list those hours. If you think you may put in a few hours in the evening, add those.
- Don't forget to also allot time for your other business chores, such as taking orders; preparing products for shipping; ordering supplies; finding new sales outlets—retail shops, craft shows, etc.; time spent exhibiting at craft shows; and any other business or administrative matters that you need to deal with.
For more detailed information on developing a business plans see the this article: A Business Plan for Your Home Jewelry Business.
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