Business Canvas Model Project

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1 Business Canvas Model Project Taylor Egan Period 3 May 7, 2016

2 Customer Segments When I started making ladder yarn necklaces in my first year, my customers have been mostly young girl ages five and up, and women to elderly women. We are creating value to everyone, but TayKayes makes Custom Fashion Accessories and women desire that more than men. It s hard to target men, because they don t wear jewelry or don t wear it quite often as women do. Some men do buy for themselves, or they buy for their children, wife, and/or girlfriend. I wanted to get into the teen market after my first year of success. That's when I decided to add more products such as earrings, ladder yarn lanyards, jewelry stands, beaded bracelets, and scarves. I've been noticing a lot of my customer's and consumer's behavior lately and they want to buy more than just one product alone. I added new products to the line and still keep coming up with new ideas in the process. I've been coming up with new ideas so that I can be able to get my business into more of the male market. Female market is really good right now; now it's time to make something that will get the males into buying a great product for a great deal! The teen market is in the middle of the target market. I started taking my business out on social media to get the teenager s attention. Teens these days are having their eyes stuck on their phone on social media nonstop. I can try to get my business to social media more. The more that they will notice the posts/notifications and events, the more they will follow and sooner later buy! Teens are into the ladder yarn necklaces, ladder yarn lanyards and some earrings and bracelets. Value Propositions

3 TayKayes carries handmade custom fashion accessories such as ladder yarn necklaces, ladder yarn lanyards, earrings, jewelry stands, beaded bracelets, and scarves. I'm still in the process of coming up with new ideas and accessories in my line of products. In my first year, I only learned how to make ladder yarn necklaces from my grandma. It used to take me an hour to make one necklace. "Practice makes perfect!" my grandma Sandra Neel taught me when I was under a lot of stress into making these. I finally had a lot of practice and I finally got down into making a necklace in less than five minutes. The necklaces are the bread and butter of my business. I've earned a lot of revenue in my first year. I only had girls, women, and elderly women as my target market in my first year of business. In my second year, I wanted to get more into the teen market. That's when I decided to start make more products such as ladder yarn lanyards, and earrings. I've had a couple teens buy a lot of the ladder yarn products and earrings. In my third year, I added jewelry stands, beaded bracelets, and scarves in my line of products. I also had the idea of coming up with gift wraps/bundles. I put together a gift set of a jewelry stand with a necklace, an earring, and a beaded bracelet of the customer's choice. After they pick their bundle of products for the set, I wrap the gift all together in a nice see through plastic wrap with a colorful bow tie around the plastic wrap to hold it all in one place. This I usually charge $26 for the whole set, but I mark down the price to $20. I decided to add these gift wrap sets/bundles for any special occasion such as Christmas, Mother's Day, Valentine's Day, Birthdays, Easter, and more! People wanted more than one different product at a time. That's another reason why I put more than one product in a gift set/bundle. I even tell my customers and consumers that they can put together a gift set of their own, and I take off a certain price to make them feel more satisfied with their purchase.

4 Channels My first process into starting with my business was to go out and sell my products out to local farmers markets. I went to Kaysville Farmers Market in my first year, and it turned out to be a success. Over the time, I've wanted to explore more local farmers markets, and also do a couple of shows, expos, and boutiques. I stayed in Kaysville Farmers Market, went to Syracuse Farmers Market, What a Women Wants show, and home show boutiques at friends and neighbor's houses. This made it more fun, adventurous, and exciting for me and to the new customers in the market. This is how I got my product out to my Customer Segments. I created my own website at taykayes.com, and I got business cards to let people know about me, my business, and my website. My website grabbed people who live far away from where I distribute my products. That's where they buy the product online if they couldn't make it to an event where I show/sell my products. This brought in a larger market! Social Media has helped out a little too. I posted about a Hometown Living Expo that I went to April I took pictures of my products and posted them on Facebook, to let them know what's going to be over at the event. This has expanded the market so big; many people shared the post to bring more attention out to the public. Customer Relationships In my first year of selling, I did face-to-face conversation with every customer that came over to my booth at Local Farmers Markets. I would give them the details about how to use the product, the ladder yarn necklace, as a necklace, a bracelet, a headband, and an anklet. I would also give them the price of the necklace that would be $5 each, or Buy 4 Get one free!

5 I gave personal assistance when a customer is interested and is ready to buy the product from me. This happens a lot at face-to-face events and conversation. I do automated services online, when they want to get a closer look at the product. The online store has been very helpful for those who couldn't make it to the face-to-face events. It s more expensive to pay online, but it does come with free shipping after you made your purchase. The online purchasing is done with a transaction through PayPal. PayPal does take a certain amount from the total purchase when it makes a transaction to TayKayes savings account. There are payments for services, like credit card transactions and delivering the product. This is why Online Purchasing is the most expensive channel. Personal Assistance is free, and so is Co-creation. Personal assistance is just talking to the customer at hand. Talking doesn't cost a thing to the customer, because you're describing the product and convincing them to buy that product. Co-creation is asking the customers their opinion about the product and how they want to see it better in their own perspective. I make new products and modify the old ones to make them look better to easily use and handle. Revenue Streams TayKayes does amazing deals to generate more revenue to make more profit. I first only had my necklaces at $5 each, but I realized overtime that people wanted more than one necklace. That's when the Buy 4, Get 1 Free deal came in. Instead of paying $25 for 5 ladder yarn necklaces, you're only paying $20 and have saved $5 on your purchase! I even tell the customer if they only bought like 2 necklaces, they can show me the necklaces they bought next time and they can buy 2 more and get the 5th necklace for free. They can even go over the limit and still get the 5 th necklace for free (Example: 10 Necklaces = $40 instead of $50). This makes the customer feel more satisfied and relieved by saving money.

6 I do gift sets/bundles, which comes with any jewelry stand, beaded bracelet, earring, and a ladder yarn necklace of the customer's choice. This would normally cost $26, but I take $6 off the set so that the customer pays an even $20. They can even create their own gift set with any of the products, and I take a certain price off their purchase, but only for a gift set! After they pick their gift set, I wrap it in plastic wrap so that it's easy to see the product, and comes with a colorful ribbon that's wrapped around the plastic wrap. People pretty much buy only one or two products at a time, and some buy the 5 for $20 deal or gift set. People like to pay with even dollar bills. I don't include tax with the customer's purchase, or else it would be more time consuming to calculate the payment, and harder to keep track of all the money. Plus, the customer would get all mixed up in their wallet or purse to find the extra change. I make it simple and easy that they would only pay in $5's, $10's, $15's, and $20's so they don t have to worry about change and not pay tax. People only like to pay with mostly cash and credit/debit cards. I do PayPal transactions with my phone if the customer doesn't have their cash or check book with them. I do take checks, but that happens once in a while if the customer doesn't have any cash or a credit or debit card with them. All Revenue Streams contributes to overall revenues! Key Resources In order to keep the business going, there has to be stock, and for stock, there's got to be material needed to make stock. It does take time to know what the best material is, and the best deal for that material. It even takes time and money to travel and pay online into getting the material. The materials I get are ladder yarn for the necklaces and lanyards. I get this material at Bennion Crafts, Knit Craft, and the Needle Point Joint. Lanyards come with a free charm from Avery Beads.

7 For the earrings, I buy on Etsy from a user who sells studs, backs, and glass domes for a good deal for a certain amount I pay for. I get scrap book paper form Bennion Crafts and Michaels for the top design of the earrings. The Beaded Bracelet material is from Michaels and from bead store in Layton called Avery Beads. For the Jewelry Stands, I buy nice picture frames and glass candle holders from the DI (Donated Items). For the scarves, I buy yarn from Knit Craft, Needle Point Joint, Michaels, and Bennion Craft. Knit Craft and Needle Point Joint sells many yarns in many designs. Michaels sells yarn, beads, and many other craft materials. Etsy user sells earring material. Hobby Lobby sells clips for lanyards. Avery Beads sells beads, charms, and jewelry making material. Pocket Change sells color party bags that I use to put the products in when a customer makes a purchase. This makes it so that the products don't get mixed up in the customer's bag or purse, and easy to carry. The following Revenue Streams I have in my first year was $500 in sales, and $ in profit. The second year was $1,000 in sales, and $900 in profit. Finally, my third year was $3,000 + in sales, and $2,700-2,800 in profit. Key Activities This was a simple strategy, but it does take time to make the product to be ready for any event and for online. It used to take me an hour to make one ladder yarn necklace. Now it takes me less than 5 minutes to make one ladder yarn necklace. It was so easy and fast, that I made a ton of ladder yarn necklace for production, and this was the reason why I stared my business. Selling was my thing and I love making necklaces. I also had to do some shopping to get the material at my Key Resources. Those Key Resources are Knit Craft, Needle Point Joint, Bennion Craft, Michaels, Hobby Lobby, Etsy, and Pocket Change. This Key Activity had to take some time to get everything I need to get ready

8 into production. Without the material, there would be no production, and there wouldn't be a business and no business model. Problem Solving is another Key Activity. People wanted more colors, I invested in more colors. People wanted more products; I invested into making more than one product. People even ask about warranty. If it breaks, return it, and I will fix it, or give a new one. Problem Solving is a big thing to get, keep, and grow the customers. I make sure to satisfy my customers as best I can to make them stay and come back and bring/buy more. If there isn't any solution to the problem, then it cannot be fixed. Selling is a big Key Activity! Going out to the public and selling the product is the main reason to keep the business going. Giving personal assistance, dedicated personal assistance, and face-to-face communication is helping the customer into making the decision to buy or think about the product. Without selling, there's no point in keeping the business going. Selling is the key to a successful business! Key Partnerships First, it started out in local farmers markets. The first year in local farmers markets was super successful, that I went into expos, shows, and boutiques. Expos and shows brought in hundreds and thousands of people to come in and explore new businesses and companies. Boutiques bring in a ton of groups and other businesses together too. Online Stores are great for anyone who decided to look up the purchase and they can browse it online. TayKayes even got onto SassySteals.com and they're a very popular site. I haven't put anything on their site yet, but it will be coming soon, and hope to get a lot of attention from many users nationally and globally.

9 Social Media on Facebook is very popular these days and I made my first post for a Hometown Living Expo in April I took pictures of all the products I made, and told the audience what s happening and going on at the Davis Conference Center Hometown Living Expo. This brought a lot of attention, and people liked and shared the post so it can be shown to more people. Our Key Resources, Michaels, Bennion, Knit Craft, Pocket Change, Hobby Lobby, Etsy, and Needle Point Joint are acquiring the Key Partners that TayKayes has. Without Key Resources, there wouldn't be any Key Partners to make contact or activity with. They are the start up to many good Key Partners that TayKayes needs to be running. Solving Problems at Face-To-Face events is a Key Activity that Key Partners perform to make the business look good and stand out from any other businesses. Cost Structure There is cost to everything that businesses use to stay put in the market. There are costs for material, stock, gas for traveling to outdoor and Face-To-Face events, and cost for transactions on credit cards and debit cards through PayPal. Knit Craft and Needlepoint Joint are the most expensive Key Resources for Cost Structure. They sell ladder yarn, and it's the most expensive material, but that's what makes the product stand out and look fashionable. It costs $ Tax, a bundle of ladder yarn at the Needle Point Joint. It costs $ Tax, for a bundle of ladder yarn at Knit Craft, but if you have a business (card for proof) and buy a certain amount, the owner gives a discount from 10-20% off the purchase. One bundle of yarn makes about necklaces each. Every other material is less expensive to buy than the ladder yarn.

10 Making the products for stock is the most expensive in Key Activities, because you need the material for the production process. Plus time and labor into making the products is how you make the money. Time is needed to make a good and big stock for the business. Production into making everything needs time to get them ready to go for any event and for online. I don t hire anyone to help me make the product, because it would take more time to teach them how to make the products. This would take money away, because you got to pay for those who work for you. Plus, I keep my product making a secret from other people and I don t want anyone stealing my ideas and creations. Conclusion I started my business TayKayes 3 years ago when I was 14 years old. My grandma taught me how to make ladder yarn necklaces, and that's what I only had in my first year in selling. I added more products over the years to get into the teen market, when I already sold to girls and women. I added earrings, ladder yarn lanyards, beaded bracelets, jewelry stands, and scarves over the next two years of my selling. Right now, I still have all of these products and I'm still earning more revenue and putting it towards three things: college, stock, and so sell nationally. I won the Kids Biz Competition in 2015 and won $200 cash prize. I recently won Kool Kids/ Teen Startup Competition this year in May I won 1st place, and earned $1,500 cash prize + $75 for being a participant + $50 in selling product to the judges and audience. I now have enough investment to put in towards my top three things. For me to keep going on with my business, I can use most of the investment towards stock to sell nationally. In order for me to sell nationally, I need a lot of stock so that I never run out. When I earn enough revenue from national sellers, I will put that profit towards college for

11 me to go to Weber State University! The rest of the profit will be put in towards TayKayes, to keep the business up and running for a couple more years.