Cross-stitch4uCross-stitch4u“We will convert your idea into cross-stitch pattern. It’s “We will convert your idea into cross-stitch pattern. It’s online, fast and with a touch of love to cross-stitch art”online, fast and with a touch of love to cross-stitch art”

PatternsPatterns

Cross-stitch suppliesCross-stitch supplies

ForumForum

ClassesClasses

My key service would be converting picture or My key service would be converting picture or image into cross-stitch pattern or creating a custom image into cross-stitch pattern or creating a custom pattern from customer’s detailed description using a pattern from customer’s detailed description using a

computer based converting program.computer based converting program.My short term goalsMy short term goals

To learn how to create a website and explore specifics of online To learn how to create a website and explore specifics of online servicesservices

To research the market for PC products for creating cross-stitch To research the market for PC products for creating cross-stitch designsdesigns

To get to know the competitionTo get to know the competition

My long term goalsMy long term goals

To offer more services for online ordering: supplies for cross-To offer more services for online ordering: supplies for cross-stitching, advice columns, and a blog for sharing ideasstitching, advice columns, and a blog for sharing ideas

To find a space for opening a store in addition to online servicesTo find a space for opening a store in addition to online services To add knitting into all aspects of the businessTo add knitting into all aspects of the business To offer classes and organize a club to learn cross-stitching/knitting To offer classes and organize a club to learn cross-stitching/knitting

and to share ideas and experience.and to share ideas and experience.

Personal Skills, Experience and Personal Skills, Experience and Resources Resources

Cross-stitching is my hobby. I make art work as Cross-stitching is my hobby. I make art work as little as few sq. in. and as big as 180 sq. in. I get little as few sq. in. and as big as 180 sq. in. I get my work framed and it makes a perfect gift or my work framed and it makes a perfect gift or thank you piecethank you piece

I have a PC based program for converting images I have a PC based program for converting images into cross-stitch designs. I use these designs or into cross-stitch designs. I use these designs or buy ready designs from a storebuy ready designs from a store

I am working in accounting, therefore, I have a I am working in accounting, therefore, I have a knowledge in handling business accountsknowledge in handling business accounts

I bring into the business:I bring into the business:- my time- my time- computer- computer- computer based program for converting images - computer based program for converting images into the cross-stitch designsinto the cross-stitch designs

Break Even AnalysisBreak Even Analysis1 unit1 unit 1 sq. in. of pattern1 sq. in. of pattern $0.20$0.20

Direct costDirect cost Time spent working on 1 Time spent working on 1 unitunit

$0.10$0.10

Contribution Contribution marginmargin

Price – Direct costPrice – Direct cost $0.10$0.10

Monthly Monthly overheadoverhead

Internet service + Internet service + Marketing + Time for Marketing + Time for processing ordersprocessing orders

$240$240

Break even unitsBreak even units Monthly overhead/Monthly overhead/

contribution margincontribution margin2,400 units per 2,400 units per monthmonth

Average pattern Average pattern 110 units or $22110 units or $22

Break even units/Break even units/

Average patternAverage pattern22 patterns per 22 patterns per monthmonth

Average 1 Average 1 pattern per daypattern per day

Market PotentialMarket Potential I was thinking to start my business online. Therefore, it is very difficult to I was thinking to start my business online. Therefore, it is very difficult to

define market. For that matter, I chose to start from researching market define market. For that matter, I chose to start from researching market around my living area, Albany, because it gives me benefit of knowing the around my living area, Albany, because it gives me benefit of knowing the area and ability to reach a customer on a more personal level. area and ability to reach a customer on a more personal level.

Cross-stitching is the leisure craft for anyone who enjoys art and has Cross-stitching is the leisure craft for anyone who enjoys art and has patience to make it themselves. These criteria can fit many people:patience to make it themselves. These criteria can fit many people:

Mostly woman and teenage girls who are not interested in very active lifestyleMostly woman and teenage girls who are not interested in very active lifestyle Retired, mature men, who are not afraid to reveal their interests anymoreRetired, mature men, who are not afraid to reveal their interests anymore Any person who is interested in self-made crafts and artsAny person who is interested in self-made crafts and arts

According to infousa.com, there are 565,664 potential customers (one per According to infousa.com, there are 565,664 potential customers (one per household) in the surrounding four counties (Alameda, Contra-Costa, Marin, household) in the surrounding four counties (Alameda, Contra-Costa, Marin, San Francisco). All these people have access to personal computers, San Francisco). All these people have access to personal computers, therefore, the online service might be appropriate for them. therefore, the online service might be appropriate for them.

Survey and its Results AnalysisSurvey and its Results Analysis Survey to get information about:Survey to get information about:

Are people interested in cross-stitching;Are people interested in cross-stitching; What ways people get patterns for their cross-stitching;What ways people get patterns for their cross-stitching; Are people interested in getting pattern creating service;Are people interested in getting pattern creating service; How much they are willing to pay for the service;How much they are willing to pay for the service; What other services they would be interested to get in addition to What other services they would be interested to get in addition to

this one.this one.

I distributed Survey through eperalta.com/spring2011, I distributed Survey through eperalta.com/spring2011, amazon.com, e-mailsamazon.com, e-mails..

Results:Results:

56% don’t know how to cross-stitch and don’t want to learn it;56% don’t know how to cross-stitch and don’t want to learn it; Ones who are interested in cross-stitchingOnes who are interested in cross-stitching::

makes their own patterns using PC program or looks for it in the stores makes their own patterns using PC program or looks for it in the stores (Jo-Ann, Michaels);(Jo-Ann, Michaels);

63% are interested in a service for converting images into cross-stitch 63% are interested in a service for converting images into cross-stitch patterns;patterns;

80% would be willing to pay $21-$30 for the service;80% would be willing to pay $21-$30 for the service; In addition to the pattern creating service, respondents also would like to In addition to the pattern creating service, respondents also would like to

buy cross-stitching supplies and frame their workbuy cross-stitching supplies and frame their work

Competitive AnalysisCompetitive AnalysisCompetitorsCompetitors StrengthsStrengths WeaknessesWeaknesses My advantageMy advantagewww.goldenkite.comwww.goldenkite.com -has 9615 members from has 9615 members from

around the Worldaround the World-pattern making servicepattern making service-has busy forum with advice has busy forum with advice column column

-located in Sweden, Europelocated in Sweden, Europe- no local classes offeredno local classes offered- very expensivevery expensive

-local classeslocal classes-not expensivenot expensive

www.crosstitch.comwww.crosstitch.com -converts images into cross--converts images into cross-stitch patternsstitch patterns

-has message blog -has message blog

- no local classes offered - no local classes offered -local classes-local classes

-advise column-advise column

www.picturecraftworkwww.picturecraftwork.com.com

-converts images into cross--converts images into cross-stitch patternsstitch patterns

-not expensive -not expensive

-no classes-no classes

-no forum-no forum-local classes-local classes

-forum and advise -forum and advise columncolumn

www.laydenwithstitchwww.laydenwithstitches.4t.comes.4t.com

-provides detail tutorial and -provides detail tutorial and advice for converting advice for converting images into patterns by you images into patterns by you

-does not convert images does not convert images into patterns into patterns

-no classes-no classes

-no forum-no forum

-pattern making -pattern making serviceservice

-local classes-local classes

-forum-forum

www.welcomestitcherwww.welcomestitchery.comy.com

-everything I would want in -everything I would want in the shop the shop

-does not convert images does not convert images into patternsinto patterns-located in Crystal Lake, IL located in Crystal Lake, IL - no local classes offered no local classes offered

-pattern making -pattern making serviceservice

-local classes-local classes

Marketing strategiesMarketing strategies Product Lines:Product Lines:

Service of creating custom cross-stitch pattern from:Service of creating custom cross-stitch pattern from: digital picturedigital picture detailed description of an imagedetailed description of an image

Positioning:Positioning: I would offer not expensive service of creating cross-stitch pattern;I would offer not expensive service of creating cross-stitch pattern; Will create forum for sharing ideas and advice;Will create forum for sharing ideas and advice; Will offer classes for cross-stitch learning: Will offer classes for cross-stitch learning:

at first, online detail instructions with chat and advice column;at first, online detail instructions with chat and advice column; later, live local classes for neighborhood children (in association with later, live local classes for neighborhood children (in association with

schools, YMCA, or local youth clubs) and adultsschools, YMCA, or local youth clubs) and adults

Pricing:Pricing: The product is priced according to how many price units it contains. The product is priced according to how many price units it contains.

Price unit is 1 sq. in. of pattern.Price unit is 1 sq. in. of pattern. Prices are not high comparing to competitors because:Prices are not high comparing to competitors because:

I will start business online;I will start business online; I have computer;I have computer; I have PC based program for converting images into cross-stitch patternI have PC based program for converting images into cross-stitch pattern I have full-time job to cover my living expenses and I organize my I have full-time job to cover my living expenses and I organize my

business only for love for cross-stitching.business only for love for cross-stitching. I chose to price product per sq. in. of the pattern because that way I chose to price product per sq. in. of the pattern because that way

customer has clear idea how much would pattern cost depending on customer has clear idea how much would pattern cost depending on its size.its size.

Marketing Strategies (cont’d)Marketing Strategies (cont’d)

Placement and Distribution:Placement and Distribution: Service will be provided onlineService will be provided online Customers can place orders through:Customers can place orders through:

service website;service website; ads in other needlework websites with pricing and ads in other needlework websites with pricing and

downloadable order form;downloadable order form; mail-in order form from ad in a local print.mail-in order form from ad in a local print.

Finished orders will be distributed by:Finished orders will be distributed by: e-mail as attachment;e-mail as attachment; through mail (standard price for chosen kind of mail through mail (standard price for chosen kind of mail

will be added to a total service price).will be added to a total service price).

Marketing Strategies (cont’d)Marketing Strategies (cont’d)

Promotions:Promotions: Advertising tools:Advertising tools:

Pay Per Click advertising in related websites;Pay Per Click advertising in related websites; Use share advertisement with provider of complemented product;Use share advertisement with provider of complemented product; Ads in e-zines, online classified ads, and blogs;Ads in e-zines, online classified ads, and blogs; Add service website link to search engines and directories;Add service website link to search engines and directories; Pass out flyers or business cards at local schools, colleges, stores

and other public areas; Ads in local printed Yellow pages, classified ads, newspapers, and

billboards. Public relations and Networking:

Free classes/presentations in local public events; Organize local club with promotional sessions for school students

and YMCA members; Join PTA and sponsor local school events

Other: To ask customers to send a picture of finished work and open a

gallery of art for others to enjoy and to show service at its work