Business Opportunity Assignment 2 (OWN BUSINESS) PDF

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FUNDAMENTAL OF ENTREPRENEURSHIP (ENT300)BUSINESS OPPORTUNITYCLAY RINGSPREPARED BY:STUDENT NO. NAME GROUP/CLASS2019244716 NUR AISYAH ALYA BT RAMZAN TBA114 4DPREPARED FOR:MADAM NORLAILA IBRAHIMSUBMISSION DATE:27 TH MAY 2021TABLE OF CONTENTSEXECUTIVE SUMMARY................................................

Description

FUNDAMENTAL OF ENTREPRENEURSHIP (ENT300)

BUSINESS OPPORTUNITY CLAY RINGS

PREPARED BY: STUDENT NO. 2019244716

NAME NUR AISYAH ALYA BT RAMZAN

PREPARED FOR: MADAM NORLAILA IBRAHIM

SUBMISSION DATE: 27TH MAY 2021

GROUP/CLASS TBA114 4D

TABLE OF CONTENTS EXECUTIVE SUMMARY........................................................................................................ 1 PROJECT DESCRIPTION.....................................................................................................2 PROJECT OUTCOME...........................................................................................................3 EXPERIENTIAL LEARNING...................................................................................................4 CONCLUSION....................................................................................................................... 6 APPENDICES........................................................................................................................ 7

EXECUTIVE SUMMARY This business activity aims to expose the students to identifying business opportunities in the real world. Entrepreneur offers marketable products or services to an interested buyer in a situation called business opportunities. Providing new ideas and making them happen is the job of an entrepreneur. For this business opportunity, I have decided to sell handmade clay rings. I created the clay rings from scratch, starting from moulding the air-dry clay, waiting for 24 hours to solidify, polishing the rough edges, coating the solid rock clay rings with acrylic colours, and multiple layers of varnish. The prime reason of selling clay rings for this business activity is that I can finally enjoy doing something I am passionate about, alongside clay rings being a trendy accessory item. This product is mainly targeting the young generation amongst the females aged 14 to 22. The business activity took place on a business Instagram account and launched on 7th May 2021. Most of the promotional activities are on my personal Instagram account. After the 12th day of launching the product, I have received orders mostly from my mutual on Instagram, with nine pieces of clay rings being sold. The clay rings are sold at the price of RM8 and RM10. The only difference between the price is the complexity and effort that I put into the RM10 clay rings compared to the RM8 clay rings with a simple design. I admit that the profit I got from selling the clay rings is not up to par with what I had in mind, but I enjoyed doing the whole business process. Next, the valuable knowledge I learn from making the clay rings is the tips and tricks I have learned from YouTube videos. Getting myself educated about the product I sell is essential as it will enhance my technical skills. In addition to that, I have also learned how to measure my ring size easily at home. Aside from that, I have learned to create a logo for my business, identify the differences between a business account and a personal Instagram account, and improve my photography skills. Subsequently, mistakes in the business are commonly found, and I can never escape from them too. Most importantly, the customers have given good feedback regarding their purchases of clay rings.

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PROJECT DESCRIPTION The clay ring is a handmade product made out of airdry clay. It takes about three hours to shape five pieces of clay rings and a complete 24 hours to dry down. The solid clay ring will be polished with sandpaper, painted with acrylic colour coats, and varnished with waterproof adhesive. It is durable and waterproof as it had been coated with varnish. Initially, I started making clay rings as a hobby during the last semester break in February 2021. I always thought of selling clay rings, but the fear of unsold sales and the judgment I received have stopped my intention. Nevertheless, this business opportunity assignment has given me the courage to make it into reality. The supporting reason why I sell this product is that the clay ring is in trend where chunky coloured rings are seen to be fashionable. The target market for this business is mainly directed to young females aged 14 to 22. They tend to be obsessed with purchasing trendy accessories that they have seen on social media such as Pinterest, Tiktok, and Instagram. The media consumption may spark their desire to own the clay ring for themselves as it is trendy and fashionable. Moreover, I have decided to sell it online on the social media platform Instagram. The app is more popular among the younger generation, and it is easy for the targeted customers from all across Malaysia to browse through the product. I have established a business Instagram account on 2nd May with the username @kleistuffs, albeit launching the clay rings on 7th May. The duration for this business is only two weeks after launching. Hence, I will stop receiving orders on 21st May 2021. On top of that, I started to create the first and second batch of clay rings for my business in late April. The earliest concept of selling that I had was to sell the clay rings as a readily available product where one clay ring with one design and a fixed size. However, it is hard to determine the targeted customer’s ring size. Hence, I have changed the concept of selling the clay ring on a pre-order basis; the clay rings that I made will be shown as the display with one fixed size. The customer can request their size with any design that I have posted on Instagram. It will take about five days to complete their order. Correspondingly, promotions have been made on my personal Instagram account, where I posted on an Instagram story about the existence of the business account. Some of my friends have helped me promoting the business account on their feed. By doing this, their mutual can acknowledge my clay ring business. Besides that, I have determined to donate 10% of purchases to the Non-Profit Organizations: Persatuan Kasih Umat Malaysia. I believed that the donations would be used for good as it is conducted under Ustaz Ebit Liew.

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This organization has helped not only people in need but also the starving animals in the zoo. PROJECT OUTCOME After the 12th day of launching the clay rings on 7 May, I have received orders mostly from my supportive friends. The buyers, who mostly are followers on my personal Instagram account, fits perfectly into the target market I had explained earlier. The total number of customers is four, and the amount of clay rings sold is nine pieces. Since I have made 25 pieces of clay rings and only nine pieces are sold, it shows a significant growth in the business. Secondly, the pricing of the clay rings depends on the design where a simple design is sold at RM8, whereas a complex design that required extra effort will cost an additional RM2, making it RM10. The Cost of Goods Sold is the cost of making the clay rings, and it includes the price of airdry clay, the acrylic colour, and the glue varnish, which will be considered RM 1 each, respectively one piece of RM8 clay ring. Meanwhile, the COGS for the RM10 clay ring will have an additional RM1 as time production. Besides, the customer must pay RM7 for the postage fee and I used J&T courier services because it is the nearest courier point to my house. On the other hand, 10% of the total sales will be donated to the selected NGO. Since the deals are RM78, the donation would be RM7.80 and will be rounded off to the nearest whole number, RM8. A simple calculation will be shown below. Calculation for the ring sold at RM8: No.

Name

1. 2. 3. 4.

Hanie Reen Jay Nia TOTAL

Quantity 3 1 1 1 6

COGS (RM) 9 3 3 3 18

Sales Price (RM) 24 8 8 8 48

Calculation for the ring sold at RM10: No. 1. 2.

Name Hanie Jay TOTAL

Quantity 1 2 3

COGS (RM) 4 8 12

Sales Price (RM) 10 20 30

Calculation for the income statement: Item

RM

Revenue 3

Sales - (COGS) Gross Profit Expenses (-) Donation (10%) Net Profit

78 (30) 48 8 40

EXPERIENTIAL LEARNING

Based on the entrepreneurship activity that I have managed to carry out, there are a few experiences that I have gained and multiple new knowledge that I have learned. As well as the mistakes that I have recognized and the rollercoaster emotions that I have to endure. Firstly, I have learned multiple new bits of knowledge while performing the business activity. I have watched a countless video of tricks and tips for making clay rings from airdry clay. One of the new terms for me is slip which is a mixture of clay and water, and it has a consistency of whipping cream. The purpose of slip is to act as glue where it can adhere the clay pieces together. In addition, it can also smoothen the surface of cracked airdry clay. Hence, it is vital to make research and prototypes before selling the final product. Even after selling the products, it is crucial to fill in the room for improvements to create an even better product. Moreover, I have also learned how to measure my ring size. It is so simple because it only needs a thread and a ruler to determine ring size quickly at home. Thus, my customer will only need to measure their size at home without hassle. From the business perspective, I have gained the skills to make my logo for this business. It is not easy to choose the perfect logo that suits the clay ring business. Because of that, I have asked some of my mutual on Instagram to choose the ideal logo. Most of them loved the simple design that I have made on Canva. At the same time, I have polished my photography skills while taking pictures for the clay ring. Honestly, I do not own any ring light at the moment, and the closest substitute is torchlight. I had to take a picture of clay rings at night, and as a consequence, there is not much of a source of light. Hence why I had to use torchlight as my final resort of lighting. Apart from that, I have grasped the differences between a business account and a personal account on Instagram. There are several handy tools for a business owner on a business account to increase their engagement rate. Some of the mechanism provided on this application is needed to pay to use it. Since I do not have any money to spend on marketing, I only received a low engagement rate. Throughout this business opportunity, I have learned the essence of communication by interacting with an interested buyer. The excitement rushed in your body when you receive an inquiry regarding your product. But only for them to turn out to be a joy buyer. In 4

other words, they were not serious about buying the clay rings. Honestly, this discouraged me from replying to customers' inquiries, knowing that they might not buy this product. However, this is not a healthy mindset in performing a business activity. Therefore, I need to control my emotions and not letting them control my thoughts. As someone who just entered the business world, it is more likely for me to make mistakes. I have recognised various mistakes that I have made while executing the business. The first mistake that I discovered is selling the clay ring as a readily available product. I have realised that I had made a mistake by selling ready-made clay rings, assuming that my customer's finger would fit into the ring without considering their finger sizes. After realising this mistake, I have changed it into a pre-order basis where a customer can request their size with the available design that I have made. The pre-order would take around five working days to complete order as the long process of making clay ring. The second mistakes that I have made are not to adopt any pricing tactics. Based on my observation, sellers' most common tactics to attract more customers are product-bundle pricing, price cut for purchase with purchase, and many more. In my case, I should have offered free shipping for purchases of 3 or more clay rings. If you were to browse through online shopping platforms such as Shopee and Lazada, you would know how much the word 'free shipping' actually means to buyers. Most of the time, the term 'free shipping' would influence the buyers to purchase the product without hesitation. Another one of my mistakes was that I did not set any theme nor have seasons for the clay rings. I have made 15 random designs, all of which had been inspired by posts on Pinterest. Instead of making tons of random designs for the clay ring, I should have set a theme or seasons for the clay rings. For example, clay rings inspired by our current pandemic in which I could have painted face mask design onto the clay ring. This way, I could attract more customer and makes them have the desire to purchase one. By opting this way, I could have reduced my resources, time, and effort. As for the selling platform, I had established a business Instagram account which leads to my next mistake. I should have started by selling the rings on my personal account before establishing the business account on Instagram. This way, I would gain more interaction and exposure towards my product. Starting a business account is good, but it is quite a hassle because it will take me ages to gain followers and interactions on the account. Besides, I believe that I receive a higher rate of engagement on my account. This business opportunity is exhausting both mentally and physically. I had to stay up all night long just to make the clay rings. Not to mention, I am slammed with classes and assignments with tight deadlines. The short amount of time given to complete this 5

assignment was why I am not fully prepared to lay out good ideas. Even so, the customers are well satisfied with their purchases. CONCLUSION

To conclude this business opportunity, I have learned many valuable lessons to apply in life. Even though I did not get much profit from this business, the support I received from people around me had blessed me with endless energy to complete this entrepreneurship activity. This road might seem to end here, but another voyage embarks soon.

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APPENDICES

Figure 1: Klei Stuffs’ logo

Figure 2: The process of making the clay rings

Figure 3: Promotional activity on my personal Instagram account

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Figure 4: The designs of the clay rings

Figure 5: Feedback picture from a customer

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Figure 6: A chat with customer

Figure 7: Discussion between my mutual on Instagram

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Figure 8: Donation to Pertubuhan Kasih Umat Malaysia

Figure 9: Business Instagram Account (@kleistuffs)

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