A New Business Strategy For Broad Options

Production Costs

Our new strategy for Broad Options will limit initial costs and risks for this new plan aimed towards younger generations. With any change in a business, comes risk; which is why it was so important for us to minimize these risks at the start of implementing this plan. A large way we would be able to do this is keeping the sourcing with the current supplies, whom Broad

Options already has a strong relationship with. Another way to keep incosts minimized is the minimalistic designs. We feel that quality-made minimalistic jewelry is what is trendy and interesting for younger generations. While this jewelry will make a big impact with younger customers, the simplified designs will save money for Broad Options. Their current designs

Hiring a web designer would be an initial cost that would fall into the marketing budget for Broad Options.

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Price

Price is a big factor for this new business strategy for Broad Options. With our aim towards younger customers, means we need a lower price point. Younger customers are not looking to spend a lot of money on jewelry like older generations. Although they have limited budgets in mind, they are still looking for quality. One of the reasons why we believe this strategy and new line will be successful for Broad Options is because of their reputation of quality. The new prices of this line would be $150 - $500 and would range in design and materials. Using the same quality of materials that Broad Options is known for like real gold, silver and diamonds, but with simplified and minimalistic designs.

Since Broad Options has not yet established themselves as a trusted brand in their industry, we would have to price our products slightly lower than competitors. We would want to make sure our prices stay relevant with our market, so customers will be less inclined to buy from our competitors. We would take the competitive pricing strategy of pricing lower than

In the years following the launch year, we expect the units to gradually increase as our customer reach gets expanded more and more. The following year we expect to sell 150 to 225 units and in year 3 we plan to sell 250 to 300 units. We want our young audience to be able to come back to Broad Options and purchase other items as well; not just buy one item from the new jewelry line and never come back. So for years 4 and 5, we expect a lot of returning customers looking to update their accessories and buy the current piece of jewelry that is trending. The number of units expected for the fourth and fifth years are 400 and 500, respectively.

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Sales for First Three Years

The development of this new jewelry line dedicated to younger audiences should have an immediate impact on Broad Options’ revenue. We plan for the sales to increase year after year exponentially. Once we update Broad Options’ website, online purchases will be where most of our future sales will come from. For Year 1 we plan on bringing in around $75,000 in sales. As word spreads and our website reaches more people, Year 2 will bring in $112,500, and Year 3 will generate about $150,000 in revenue.

Pro Forma Statement Years 1-3

Year 1:

Revenue: $75,000