Business Plan Essay Sample: Concept For a New Business

Published: 2022-07-04 17:33:44
Business Plan Essay Sample: Concept For a New Business
Type of paper:  Business plan
Categories: Business plan
Pages: 6
Wordcount: 1515 words
13 min read
143 views

Starting an entrepreneurship business that makes wooden art carving for sale to homeowners, restaurants, accommodation hotels and offices is a viable business. People are increasingly investing in both interior and exterior decorations that will improve their spaces in residential areas, workstations, eating, and accommodation areas (Feldman 1). The use of exemplary art carvings as a form of embellishment is a sure way of enhancing the ambiance of these places. However, there are just a handful of places to access such artwork (Koenig 1). Hence, the proposed business will exploit the opportunity to ensure that customers can acquire a varied range of solid wood sculptures. Creative wooden carvings for this business will range from human portrait to abstract forms and wild animals.

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The enterprise will begin as a small business that sells well-polished and rustic pieces of wooden carvings to a varied range of customers from low, medium and high-end prices. The proposed company will strategize on reducing the cost of capital by making less than ten wooden pieces as collateral (Feldman 1). Artists will make unique artwork of each product to act as part of the firm's exhibition. Pictures of these exhibitions will circulate on Facebook and tweeter to potential customers (Wood is good 1). Also, the business will make phone calls to several restaurants, real-estate and residential owners as a form of advertisement that looks into their needs for wood carvings. Marketing will also be done through the firm's online website so that customers can access and view the range of products that are available for sale and inquiries on personalized orders of unique art pieces. The business will employ two artists with creative edges for doing art carvings. They will work from Monday to Friday in the business' workshop, which will be in my garage. The strategy will save on rent for renting a room within the commercial areas.

Proposed Firm's Feasibility

It is possible to start and run the business of making wooden carvings because many people like to adorn their houses and workstations. The firm will obtain its workforce by contacting artists with commendable wooden sculpture in art symposiums and competitions like the World Wood Day (Wood is good 1). Candidate for the two positions will need to compete in making carvings with excellent finish and creativity in the workshop. The top two competitors will then have the chance of working in the business.

Also, the business will need little capital to start because raw materials are readily available at affordable prices. Obtaining wood from dealers is easy. Turpentine, paints, and brushes for also readily available in masonry stores. Hence, the business is sure to attain a constant supply of raw materials (Feldman 1). The proposed firm will begin to make profit margins and interest in less than three months. The primary challenge for the firm is to ensure that artists can make carvings for a varied range of prices. These carvings need to have the creativity that meets their decorative use. Hence customers can buy pieces that suit their budgets and at the same time attain a required value from their purchases.

Market Potential

Making and selling solid wood carvings is a good business venture. Wood carvings are part of the residential furniture industry. Analysis indicates that wooden sculptures have a steady market growth. The growth trends showed a 6% increase in new order for solid wood pieces in 2016 (Koenig 1). Trends in wooden handcraft importation also increased by 5% in 2016 (Koenig 1). According to the analysis done by High Point Style Report, trending wooden carvings included those with polished lines. Sculptures that had a mixture of texture and patterns also had good demand. Therefore, the main catch in the proposed business is to utilize contacts point with customers from online or those who make physical visits to the workshop as a way of determining their individual needs. It is crucial to ensure that there are different art pieces to cater to the needs of customers from low, medium and high-end prices. Hence, personalized contact will ensure that the business meets consumers' needs of value in art pieces at considerable costs.

The Freedonia Group predicts that the demand for wooden artwork will increase in 2021 to $34.9 billion (Koenig 1). The increase in personal disposable income will encourage more purchases for art pieces. Also, improvements done within the residential housing market will help in enhancing the sale (Koenig 1). Since homeowners will seek decorations that improve the look of their houses. Also, the reservation given to women as the target group to make purchases of art carvings shows a downward trend because men too are enhancing their interests in owning wooden sculptures (Koenig 1). The decrease in the gap between male and female customers will also become beneficial to handcraft businesses because of the likely increase in demand for woodcarvings. Such findings are sure to propel purchases and earnings in the proposed company.

Business Model

Making wood carvings is financially sustainable because investing in solid wood sculpture is sure to give business returns. The promising trends in the market will ensure that the business operates on profits in a few months after beginning it (Koenig 1). Earnings in the firm will emanate from sales made to accommodation hotel, restaurant, homes, and real estate owners. Investors in real-estates, hotels, and hotels usually seek to improve the general appearance of their spaces as a way of appealing to customers. Therefore, taking advantage of the high demand for wood carvings as decorations will enhance revenue in the art firm.

There are needs to contact companies involved in building homes, home-owners, and hotel/restaurant manager as a marketing strategy. Once they make orders, the proposed business will work hard on ensuring that it meets deadline agreements and thus maintaining them as potential customers (Feldman 1). Since the improvement of residential houses is a continuous process, the business will have consistent customers from real-estate and homeowners. Also, people like to eat in environments with decorated ambient. Creative artworks have for year help in decorating restaurants and accommodation hotels. Therefore, the business will contact numerous restaurants and accommodation hotel to market its wooden carvings. Orders made from these segments will also help in sustaining the business.

Art symposiums always attract personalities that love artworks and are willing to purchase presented pieces or contact artists for personal orders. Therefore, donating creative carvings to art symposium will ensure that the business attracts people who love art pieces to make purchases and place individualized orders (Koenig 1). Hence, the company will also strategize to increase its customers and earnings from this segment. Also, the business will consistently display exquisite artworks by using the online platforms of Facebook, tweeter and its website as a way of reaching out to more customers.

Proposed Business Competitors

Competitors for the new business are importers of art sculpture from foreign nations (Koenig 1). They share a similar market with the proposed firm because they also reach out to clients that need wooden artwork for decorating their spaces. Research finding indicates that importers of handcrafts are experiencing growth in their stores. In 2016, importers of wooden artwork increased their business operations by 5%. Some of these importers include Himalayan Asian Handcrafts, Nepal Handicraft Product, and Zhejiang Ocean Handicrafts (Technavio 1).

Sculptures from Native North American artists, Ten Thousand Villages, and other individual artists also pose competition to this business (OWCA 1). Such competitors make numerous art pieces that include abstract and stylized wild and domestic animals and birds (Wood is Good 1). Artists from North America also make creative art pieces with a touch of their native culture.

However, the competitive advantage for the proposed business is to heavily invest in marketing its products as a strategy of reaching out to as many customers as possible (Drucker 203). Most advertising will use the internet platforms. First, the business will develop a website that contains all the art pieces done in the workshop to enhance customers; access to the business' handcraft. Also, some artwork will circulate through Facebook and tweeter with attached contact details as a way of attracting more customers to the firm.

Since customers have different amounts of disposable finances for art pieces, the business will make wooden carvings of all price ranges. The strategy will enhance purchases from low, medium and high-end priced customers (Koenig 1). Therefore, wood carvings will competitively meet the needs of all types of customers from different economic class categories. Also, the business will strategize on selling simple art pieces to young youths and students.

Works Cited

Drucker, Peter F. Innovation, and entrepreneurship. New York, Harper, 1985.

Feldman, Army. "How artisan Nawa motawi learned manufacturing and pricing and built a $ 3M business." Forbe, 18 January 2017 pp1. Retrieved from https://www.forbes.com/sites/forbessmallbiztalks/2017/01/18/how-tile-artist-nawal-motawi-learned-how-to-manufacture-price-and-build-a-real-business/5/#4bcedebdeff9

Koenig, Karen. "Residential furniture industry: Trends & analysis, 2017." Woodworking Network, 06 December 2017 pp1. Retrieved from https://www.woodworkingnetwork.com/news/almanac-market-data/residential-furniture-industry-trends-analysis.

Ontorio Wood Carver's Association (OWCA). "Magic in wood- Ontario wood carvings championship." Ontorio wood carver's association, 2018.

Technavio. "Global handicrafts market 2015-2019." Infiniti Research Limited, 2015.

Wood is Good. "Woodcarving Show." World Wood Day, 2017. Retrieve from http://www.worldwoodday.org/2017/woodcarving

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