I. EXECUTIVE SUMMARY
Opportunity & the Description of the Business There are many selections of T-shirts available in the market today. However, does it fulfill what does young people want in terms of design and style? We believe that some people are not satisfied with the current selections of design available for T-shirts, That’s why we intend to create T-shirts that are distinguished from other kind of T-shirts in terms of style and design. Competitive Advantage The advantage of making T-shirt Company is that it’s easy to run and has low set up cost compared with other business. For instance, you just need to use computer as a media of transforming your design ideas into production. Besides that, it is very flexible because you can adjust any design to what the customers’ demands. Besides that, our competitive Advantage is creative and provocative design in our tee shirt. Target Market Our target market is any young people that like to wear T-shirt. When we decide to go with this idea, we ask ourselves: Does everybody likes to wear T-shirts? Yes, they do! Almost every university students wear T-shirts when they go to campus. Not only university students, high school students and older people also like to wears T-shirts. Our priority is to sell Tshirts to the students of Economics Faculty UI and around UI campus, including Faculty of Law, Engineering, and FIB. The Management Team The management team consist of 4 division, which are design, production,financing, and marketing. Our group consist of 6 people, there are 2 people in charge of production, searching suitable printing company that can print our T-shirt designs. Then, there are 2 people in charge of marketing, who spend their times promoting our design to potential customers and also analyze what kind of T-shirt design that young people like to have and wear. Another one is design section, consist of 1 person, who in charge of creating good Tshirt designs and research on target market. The last but not least is the finance division,
consist of 1 person, who set the basic price of the t-shirt and also collect the capital earned from each individual members. The type of working system we adopt is matrix system or cross functional division. So, we always share our ideas together and all division are working not individual, but always together. Financial Projection We will raise the capital from each of our members. We forecast that we will sell around 100 T-shirt, that’s why we need around Rp 750,000/ each person for the start-up cost. However, we might change our financial strategy depending on what the market demands. Exit strategy The payback period of investment in this company is occurring when the two-third of the entire product are sold. If all of the products are sold the company will get the expected profit that we already figure in financial projection. On the other hand if the product is not sold then each of members in this company will face the loss.
II. THE BUSINESS
A. The Opportunity
Throughout the 1980s and ever since, T- shirts have flourished as a personal expression. These garments allow consumers to flaunt their taste and expression in an inexpensive way, in addition to being decorative. These cause the product become popular among teenagers and young adult. This opportunity allow us to produce TShirt with creative design that can attract our target consumer.
B. The Description on Business
Our business runs on garments industry, especially in Tee Shirt which is a shirt that is pulled on over the head to cover most of a person's torso. These garments allow consumers to flaunt their taste or expressing Political and social statements an inexpensive way, in addition to being decorative. Our team agreed that tee shirt is the most suitable types of garments in our business, thus we decided to use this as our product. For marketing and profit purpose, we also produce Keychain as a package, so customer will be more interested in buying our product. Our mission is not only to gain profit but also to increase social consciousness in national’s spirit.
C. Competitive Advantage
Our competitive Advantage is the quality of our product’s material and competitive price. We also provide creative, motivational and provocative design that attractive for our target market.
D. Current Status and Requirements
Based on our projected timeline and current status, we are already producing keychain and in a next few days we will start the production of shirt. For further information, you can look in our business timeline. Our requirements for now is collecting capital for shirt production and deeper planning and strategy for marketing.
III.MANAGEMENTTEAM A. Management Team
The team members has a many kind of background, therefore it may lead to that each member has a different technical expertise which really supporting us in running in this business simulation project.
For instance, Mikky as our Project Officer have a speciality in designing object, admitedly he often joined anykind of designing team in anykind of event. In this project, he is the conceptor of the design. Secondly, both Angra and Theo have a numerous partner in t-shirt production which also helping us to compare those stores then select the best quality and price among them. Next is Dhini. She is good at accounting, that is why we choose her to responsible of every money activity including its book keeping during this business simulation. Lastly, the marketing team. Eventhough, all of us are going to do the seabout the marketing activity, marketing concept and strategy are maintained by Asti and Diva as our marketing team.
IV. Company Structure, Intellectual Property, and Ownership
A. Organizational Structure •
Organizational Chart
•
Description of organizational structure
1. Head company and creative departement Head of company are responsible as the leader of company and manage the subordinat department of it. Creative department will make a design and idea for product that will be sell by company.
2. Operational Departement In operational department they are responsible for the operation of the company, which is inluding the production of the product.
3. Marketing Departement Introduce the product to the market are job that assign to marketing department. They will promote the product to the market that hopefully will help the selling of the product.
4. Financial Departement Financial departement will manage the financial of company, this is includes the cash flow of company and also the financial report of company.
B. Ownership Structure
Actually in this company the head of company will have 20% share of company. Then the rest member of company wil have 16% of total share. Those percentages is reflected from their contribution in investment. So, the profit and loss will also divided equal to the contribution from each member. Each of us should responsible and perform well in particular departement we assign for.
C. Intellectual Property
The business is in the beginning period and also the production of our product is still on the small scale that is why we have not made the copyright, trademark, or patents for our product.
V. INDUSTRY ANALYSIS
A. Industry description
Our project is in clothing industry, ever since clothing is one of basic needs for every person, then we designed it to be more attractive so that in fulfill our needs and do it in style.
B. Target Market
Actually, our target markets are varies, but our main targets are teenager and youth, ages from 16 to around 26; both female and male. We set a reasonable price for youngsters, compare to many outlets around Jakarta. We offers a good cotton which has the same quality as “distro” and it is also include “Garuda Indonesia” keychain, not only useful for keychain but also for opening the bottle and at the same time we encourage them to proud to our National Logo, so basically our product is available for anyone.
C. Competitive Analysis
Probably competitor will not affecting very much since this design very rare, but the problem is not every people would like our product, since this t-shirt will only have a few design, it is a bit hard to meet the market satisfaction.
VI. MARKETING PLAN
A. Pricing Strategy
We will set up the price with middle price level, around maximum Rp. 70,000,for each t-shirt including key chain; because our target is a teens and youth, we do not want set up the price too high.
B. Channel of Distribution
We are going to divide the same quantity of our product to our team member, then we use direct marketing as our main strategy. We are planning to give everyone who helping us in introducing the product a Rp. 5.000 as a comission. And all about ordering and delivering are excluded from their responsibilities, it is ours. Hopefully this would stimulate the selling of our product.
C. Promotion and Advertising
The promotion and advertising strategy are : 1. Direct marketing 2. Mouth to mouth 3. Poster in wall magazines 4. Website (Facebook, Twitter, Kaskus, Blog) 5. Direct message (SMS, e-mail) 6. Etc
VII. OPERATIONS PLAN
A. Method of Production
Our method of production is simply by creating a design for products (In this project Tee Shirt and Keychain) and ordering the product from trusted printing business. We are using economic of scale whereby we can cut some cost in production.
B. Quality Control Our Quality control is by assuring and failure testing the design and production of products to meet or exceed customer requirements. However we also assuring our quality by selected high quality assuring tee shirt printing business.
C. Customer Supports We provide customer supports by replacing malfunction or broken Keychain or Tee shirt. And we also provide size changing if the size of tee shirt is not suitable for the consumer however it depend on its tee shirt size availability.
VIII. Financial Plan
A. Capital Requirement
Source of fund of this company is came from the members of this company. For the leader of company, he invest 20% of total investment for running business. Then the rest of its member will invest 16% from the tolat of investment. All the source of fund will directly allocate for the production of company.
B. Overview of Financial Projections
The financial projections are prepared in order to know when the breakeven point of this company will happen. Also how much the profit company will get after all the product of company are sold. That is why the the financial projections is made.
C. Payback and Exit Strategy The payback period of investment in this company is occur when the half of all the product are sold. If all of the product are sold then company will get the expected profit that we already figure in financial projection. On the other hand if the product are not sold the each of member in this company will face the loss.
FINANCIAL PLAN
Balance Sheet In Beginning Period
ASSET Current Asset Cash* Total Asset
LIABILITIES & OWNER’S EQUITY Liabilities
-
Owner’s equity
2,100,000
Total Liabilities & owner’s equity
2,100,000
2,100,000 2,100,000
Income Statement For Ending Period
Sales*
3,800,000
Cost of goods sold*
1,955,000
Other expense
145,000
Net Income
1,700,000
For the profit , we divide the net income equally, which is: = Rp 1,700,000 / 6 = Rp 283,333.33
*assumption in cash Investment each member = 350,000
*assumption in sales 1 T-shirt
= 55,000
1 Key chain = 5000
*assumption in COGS 1 T-shirt
= 28,000
1 Key chain = 2750
A. Supplier detail •
T-Shirt factory Name : Mr. Stefanus
Address : Gedung Mugi Griya Lt.2 Jakarta Timur •
Keychain Supplier Name : Mr. Basan Email :
[email protected] Phone Number : 08197244456 Address : Jl. KH Syahdan. gg keluarga no 39s Jakbar 20811, Indonesia
IX. CRITICAL RISK FACTORS
In tee shirt or Keychain business our risk is not too high however our risk factors are including failed in production where the tee printing business failed to printed our desired tee shirt design [Colors or design] and don’t take any responsibility on it. We also need to be careful in sizing area and research on most demanded tee shirt size
Entrepreneurship Timeline
PERSON IN CHARGE TIME
DESCRIPTION
November 09 2009
First Revision for Shirt and Keychain Mikky
November 11 2009
Second Revision for Shirt and Keychain Mikky
November 9 - 12 2009
Searching for Supplier
Anggra and Theo
November 11 2009
Keychain Finished
November 13 2009
Fixed Supplier and Design Start Selling Pin
All
November 16 2009
Production Starts
Anggra and Theo
November 17 2009
All Financial Conducted
November 30 2009
Shirt Production Finished
Anggra and Theo
November 30 2009
Start Selling Products
Asti and Diva
December 14 2009
Deadline for Selling Products
Asti and Diva
Production
Report Dhini
Conduct all financial report December 14 2009
All
