Sunday, September 4, 2011
Tuesday, May 10, 2011
Legal
My business will be set up as a corporation out of the state of Delaware. It will be founded in Delaware because that state has no corporate income tax and is the home of many e-commerce businesses. My physical factory will also be their because of shipping distance and operation costs. In order to incorporate myself I will need to file for a corporate business license. This will cost around $270 including all fees from both a legal consultant and fees from the state. Once incorporated I will no longer be personally financially responsible for my business and I will not be liable for my business’ operation.
I will also need to trademark my upside down “4” logo. That, depending on what state I register my trademark in will cost around $130 including the state fee and the fee for hiring a lawyer to file the papers. If I create templates that will be carved into the casket and one of them becomes a popular option for customers I may consider copyrighting that symbol so it is exclusive to my company. The cost of copyrighting a symbol or picture will be about $90 plus the fee for hiring a lawyer, making the total cost about $190. when I decide on what my companies name and website will be I will also need to trademark those names for about $130 each.
For insurance, I will need shipping insurance, insurance for my warehouse, and insurance for my employees because they will be working in a factory. My shipping insurance will need to be about $15,000 of coverage for each product shipped. That would cover both shipping costs and the cost of the product itself. My warehouse, including all the equipment within it, will need about 2 million dollars worth of coverage. In addition, coverage for my workers in case they are hurt on the job would be about $10,000 per employee totaling about $300,000. In total I would need about 2.5 million dollars worth of insurance. To pay for this much coverage I would need to pay about $10,400 a month.
I will also need to trademark my upside down “4” logo. That, depending on what state I register my trademark in will cost around $130 including the state fee and the fee for hiring a lawyer to file the papers. If I create templates that will be carved into the casket and one of them becomes a popular option for customers I may consider copyrighting that symbol so it is exclusive to my company. The cost of copyrighting a symbol or picture will be about $90 plus the fee for hiring a lawyer, making the total cost about $190. when I decide on what my companies name and website will be I will also need to trademark those names for about $130 each.
For insurance, I will need shipping insurance, insurance for my warehouse, and insurance for my employees because they will be working in a factory. My shipping insurance will need to be about $15,000 of coverage for each product shipped. That would cover both shipping costs and the cost of the product itself. My warehouse, including all the equipment within it, will need about 2 million dollars worth of coverage. In addition, coverage for my workers in case they are hurt on the job would be about $10,000 per employee totaling about $300,000. In total I would need about 2.5 million dollars worth of insurance. To pay for this much coverage I would need to pay about $10,400 a month.
Monday, April 11, 2011
V. Product Description a. Technological Specifications i. Description of Hardware/Software My product will be the physical caskets I make as well as the software that allows you to make it. The software will allow customers to choose all the options they want and personalize their arrangements. The software will go step by step showing the available options for each category such as color, material, and size. There will be a list showing the cost of each option, what option was chosen and the total estimated cost based on what options were chosen. Then once all the options are chosen, the item will be paid for and the information will be stored with us and added to the customers will. The customer can then choose a payment plan or pay for it all at once. The material for the casket will be purchased and stored waiting to be assembled and shipped when they are needed. In order to assemble them I will need a metal pressing machine, plasma cutters and robotic riveters. Those machines will actually form the shape and put the product together and then the workers will be able to paint it and add details before it is moved to the final assembly line where it is inspected for defects and is shipped. ii. Web Connectivity My website will use Verizon FiOs as our internet service provider. We will use the 2nd fastest connection that has speeds of 35 megabytes per second both upload and download. This plan will work best because it is fast enough to stream live video, upload/download large files, and handle multiple transactions at once. I chose Verizon because they have a fiber optic system that is very reliable and faster than most other internet service providers. It will cost $95 a month to maintain but should be able to handle most of our needs. I will design my website with 1&1 website builder. I will pay one of their webmasters to design my website how I want it. They have very cheap websites with interactive tools, such as slide shows and sound with moving graphics. I want these tools on my site because I feel they are easy to use and grab people attention. It would only cost me $30 a month and it has more than enough space and can handle more people than I expect to have as of right now. For encryption I will use VeriSign’s best package, security pro, which will cost $2,700 for 2 years of service. I will use VeriSign’s service because they have higher brand recognition rates that MacAfee or other competitors. I will be able to have a green address bar, lock symbol, as well an animated V that will include a link to VeriSign’s page with my certificate on it. This way I can ensure that my customers feel safe when shopping online. Also, because most internet shoppers are tech savvy I will also use Google’s check out tool in order to create a safe and reliable way for people to buy things from my website. Google’s tool makes it very easy for repeat customers to buy from me, they simply sign in and click buy. This will make a quick, easy and even safer buying experience for my shoppers. In order to prevent Credit card fraud we will have software that will alert us of suspicious activity, such as large orders, or a strange combination of “normal” activity such as express delivery to an address that is different than the billing address and they don’t wan to sign for the package. The combination of these three things can trigger a red flag that this person may not be who they say they are. It is rare that a customer that it honest would do such a thing. Google’s checkout tool will also help protect my company from fraud as all orders submitted through Google are automatically and extensively checked for possible fraud. I will also require a phone number from customers in case a problem occurs with their order. For very large orders I will also require a signature at delivery confirming that they received the product and possibly phone confirmation that they really want that many and it was not a mistake or even a second phone number and credit card from someone that will pay for it if the original person cannot, like with cars. (assuming someone ever actually wanted to buy that much) b. Website Functionality The websites home page will have a description of what our company is and how we can help you. It will also have a large button that says “make an account.” The first thing a customer needs to do is make an account so we can store the product information for them as they select what they want. This will allow them to make several different designs over the course of more than one sitting and they do not need to finalize anything until final checkout. The top of all of my pages will have a “sign in” and “sign out” button as well as several tabs that will allow them navigate to their account page, go to the customization tool page, see estimated costs, and contact customer support.
Tuesday, February 1, 2011
About us
CustomCaskets.com is a website that will sell personalized coffins. The website will feature a dichotomous-key like drop down menu that will allow customers to be as specific as they want in creating whatever they can think of. This can range anywhere from a standard casket engraved with a poem or bible passage down to an Egyptian sarcophagus if that is what the person wants. People will have the ability to submit their own drawings or art to be superimposed on the coffin as well as choose from our selection of standard designs. People will be able to see a projection of what the final product will look like and get a price estimation using our “digital design” tool. Once they are happy with the selection they will order and pay for the coffin, we will assemble it and ship it to the funeral home. Just as people have been writing final messages on tombstones for thousands of years, so too can they now add a unique touch to their coffin to honor their loved ones. It is becoming common when a firefighter dies to have the fire department’s seal on the coffin, also service men and women can have their group or company insignia placed on the coffin. We will also sell standard metal black coffins but some groups feel that the standard coffins are too sad and depressing and more and more people are purchasing colored coffins and black ones are losing popularity. Colorful designs let us focus more on the happy memories we shared with this person and remind us that the person is in a better place. Other options will include the jersey numbers of athletes, allowing us to remember all that person’s victories and the legacy they leave behind. The website will also allow a section for customizing the shape and size as well at the appearance. Here the customer will also be able to design pet coffins and control the size eliminating space where they don’t need it allowing them to save money. CustomCaskets.com also sells personalized and engraved urns for those that choose cremation. As well as matching accessories to go along with the casket, such a flower vases.
Thursday, January 27, 2011
III. Analysis of Business Environment a. Business Analysis i. Self Analysis: I think I am fit to be CEO of my own company for many reasons. I am very financially organized and keep track of my finances and will handled invested money very wisely. I know accounting and can set up clear, detailed and specific budgets for the company. As a manger I operate very efficiently, I have strong leadership skills and clearly communicate to and run large groups. I have been the leader of many business projects before and have experience assigning the correct people based on skills to the problem that most needs their unique attention. I was recently awarded a metal for placing in the top ten for my category in NY at the 2011 DECA state level. I am also very creative and can think on my feet very quickly to handle difficult business decisions. I feel this strong combination of important skills qualifies me to accept this responsibility. ii. SWOT Analysis: Strengths: My business’ strengths are it has a consistent demand and is not heavily affected by the economy. This consistent demand is a major strength for my organization. Also because my product is made to order, large storage and warehousing is not needed. Supplies can be bought and stored on an as needed basis and we do not need to worry about being over or under stocked. Another important strength is I have relatively little competition because of the uniqueness of my product line. My product line is extensive and should appeal to a large target market due to the fact that it is based on customization. Weakness: One weakness of my business is it is new and is unknown as of yet. It will need a lot of start up money because we need to buy heavy machinery in order to cut the metal needed for the caskets. Also we will need to spend a lot of money shipping out products quickly where ever they need to go. Opportunities: A major opportunity for my business would be making the casket of a famous person. Thousands of people from all walks of life pay respects to role models when they pass on. Making a custom casket for a celebrity would generate huge publicity for my business. In addition another opportunity would be teaming up with a funeral home or homes to offer customers more options exclusivity to certain locations as apposed to selling the to general public. This would make my caskets rare and exclusive “luxury” items. Threat: A threat to my business is my competition, mostly funeral homes that have a flat charge for a full package, casket included. Some homes offer a flat fee for the flowers, casket, and reception itself. They try to convince people that it is “easier this way” because the funeral home will “handle everything.” However if I get the word across the that you will save money buy purchasing from me rather than an overpriced funeral home package I think I can over come this. iii. PEST Scan: Political: Most funeral homes provide all the arrangements in a package deal rather than the client selecting options individually. However, if a client chooses to personalize the arrangements using my services the funeral home is required to accept my products in replace of their own without charging any additional fees. The Federal Trade Commission passed the Funeral Rule act on April 30th, 1984. The act regulated the funeral industry to control the exponential price growth in that area. The law stated that “package deals” that included the full nine yards from embalming to burial was a form of monopoly. The law stated that under this new standard, the “package deal” was the same as buying your car, gas, tires, fixing the car and paying highway tolls all to the same company. The law further stated that all prices must be broken down and are optional unless required by state law. Some states require the body to be embalmed and buried in a casket and others only require the body to be wrapped and buried before decay sets in. The law also states that funeral homes must have local laws in writing presented to the customer at the time of purchase stating exactly what is required by law and what is not and what options the customer has selected along with prices (like a recite). In addition the funeral homes were restricted from making “dramatic profit margins” and when listing services without an exact price the estimate must be “within reason” or the customer has the right to refuse to pay. The law closed by stating no funeral provider is allowed to make false claims regarding any process that charges a fee. This is important to my business because if I am to operate online when a customer checks out I must ask them what state the funeral will take place in and must give them a list and explanation of all charges on the bill. I will also not be allowed to advertise in the area of “quality” as the law states that all materials involved will not last indefinitely and statements regarding quality are therefore speculations and are “false” and illegal. My website will also have to be licensed with the government and I will need a legal department to handle any conflicts that may arise. Economic: My business should not be heavily affected by the current state of the economy because I provide a necessary service. My overhead cost will be affected by the price of electricity, metal, and materials such as paint and flowers. My shipping cost will also change based on weight and fuel costs. However my business should change slowly overtime and will be have resilience ageist sudden drops in the economy because my target market should stay consistent. Social: More and more people are choosing to do legal tasks online because of the privacy and speed relative to sitting down with a lawyer. LegalZoom.com is an example of a company that allows people to quickly, easily and privately create and manage a wide variety of legal documents including wills. It is predicted that in the future people will be able to carry out most tasks of their working life online. Everything from banking to shopping to even ordering food and dry-cleaning will be able to happen online. This presents an opportunity for me to advertise on websites that allow people to make wills to click on my website and lock in the price now and pay overtime as opposed to waiting and prices going up or worse, putting the responsibility on your family. Technological: Like the car industry, almost all big metal products are created using robots on assembly lines. This will allow me to not have to worry about salaries, work hours or injuries on the job. The robots ability to never make a mistake, work 24 hour shifts and work fast with superhuman strength is a major advantage to my business. They will allow me to run an entire factory without having to hire tons of employees. Computer controlled plasma cutters can customize the product without the need to hire artists and like all technology, the robots necessary will only get more advanced, smaller and cheaper. IV. Business Operations a. Organizational Structure: I will employ 19 people in total. 14 workers at the plant to monitor the machines and move the parts from the end of one assembly line to the start of another and check quality during production. The workers will make $27 dollars an hour working 8 hour overlaying shifts. The first shift 9am to 5pm then 5pm to 1am and 1am back to 9am. 4 workers will work each shift and 6 will work during the day from 9 to 5. I will then have 1 assistant manger per shift and a general manager on staff during the 9 to 5 shift. The total operating cost of the factory per a 24 hour day will be about $4,000. I will also need a lawyer on staff to add finished orders to customers wills as well as handle the legal aspects of my pricing policy. b. Proposed Location: My business will operate out of rural Delaware. This location was chosen for a number of reasons. Delaware has absolutely no sales taxes and a relatively low business license tax under 4%. State corporate income tax is fixed at 8.7% and a gross receipt tax is added and capped at 2%. This total tax rate of 14.7% is worth the convenient location equidistant from the east coast’s largest cities. Although states such as South Dakota don’t have income tax, they are not located near my target market. Delaware is the best choice for a northeastern target market. This combination of low taxes and short shipping distance is very beneficial to my company. c. Proposed Pricing Structure: My business will have a flexible-price policy. The price will be based on the specific levels of customization. To start off my business I will use penetration pricing to lure customers to by business. The prices will be lower than my competition until people start learning about it and I get a consistent flow of sales. At that point the price will be raised to match that of my competition; at that point the added profit margin can be used to possibly expand my business depending on how fast it is growing. At this point it is very difficult to judge how much my services will cost. The Funeral Rule act of 1984 limited my total profit margins and set strict guide lines. In addition it also called for extreme transparency; all aspects of the total cost must be broken down and explained. The law also limits “package deals” I am not allowed to group services together and discount them because they are buying everything through me. That means that regardless of whether the customer buys everything from me or only one thing that total cost for them will come to about $9,000. 2009 Funeral Costs Cost of regular adult funeral including following basic items. *Does not include cemetery, monument/marker costs or miscellaneous cash advance charges such as for flowers or obituaries. Item Price* Non-declinable basic services fee $1,817 Removal/transfer of remains to funeral home $250 Embalming $628 Other preparation of the body $200 Use of facilities/staff for viewing $395 Use of facilities/staff for funeral ceremony $450 Use of a hearse $275 Use of a service car/van $125 Basic memorial printed package $125 Subtotal without Casket: $4,265 Metal Casket $2,295 AVERAGE COST OF A FUNERAL $6,560* Vault $1,195 Total Cost of a Funeral with Vault $7,755 Source 2010 NFDA General Price List Survey.
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