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LayZee Bean Bags Setting Up a Business?

Renzil D’cruz

http://RenzilDe.com

http://about.me/renzilde

http://linkedin.com/in/renzilde

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Index

Introduction information about Bean Bags 3

General Company Description: LazzyBean Bags 5

Products and Services 6

Productions and Manufacturing Process 14

Operations Plan 18

Utilizing Human Resource 22

Marketing strategies and Sales Plan 26

Financial Plan 33

SWOT Analysis 36

Conclusion 37

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Introduction

A bean bag is a sealed bag containing

dried beans, PVC pellets or expanded polystyrene, with

various applications.

Bean bag chairs are all the rage today amongst modern

furniture for your home or even for offices. These

otherwise slouchy, shapeless bean filled sacs are gaining

popularity as people are finding many ingenious uses for

such a item.

Today, bean bags come in a variety of textures, colors,

shapes and sizes so that one can choose to use them as

they please. Besides leather, there are a host of other

materials which these bags are being made of, such as

synthetic or vinyl materials. Hence, bean bag chairs are

now more affordable and people are willing to experiment

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with them in hotels, lounges and even offices, besides their

homes.

Bean bags have always been a great favorite amongst

children due to their softness and lack of shape. From

bean bags being used in various games where they are

tossed around, nowadays children love to do the same

with their bean bag chairs. On these they can comfortably

sit and play games, lie back and watch television and

these can be moved from room to room which is another

great benefit of bean bags.

Bean bags nowadays come with Styrofoam beans fillings

which become flattened due to regular use. Hence, the

inner filling of bean bag chairs need to be changed

periodically. Such filings are easily available with bean bag

manufacturers and one can even try their own filings at

home such as with sponge, thermocol balls or cotton. One

can even obtain new covers for their bean bags and have

a brand new design or color to flaunt and make them good

as new.

Thus, bean bags have gained much popularity of late due

to the ease and flexibility of their shape and design.

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About Lazzy Bean

Mission : To provide the Comfort to ordinary folk and chance to buy the

same thing as rich people.

A LayZeeBeanBags dedicated to showing products designed, developed, manufactured and marketed at LayZeeBags.com. We are a dedicated West Region manufacturer, based in Bandra, the heart of the Mumbai. LayZee Bean have been manufacturing and supplying Bean Bags since 10th October 2012. Our focus on designing and producing quality precision textiles is second to none and has become the trade mark in the industry. We have an extremely imaginative design and production

team that can provide a complete consultation, design and

production service.Latest technology in design and

production ensuring an efficient operation, we also have

branding facilities such as embroidery with full embroidery

disc design and generation on site at our factory in Bandra.

So if you're looking for a high quality, hand made, well

designed and fun bean bag then look no further than

LayZeeBags.com

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Production

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Bean bags have come a long way since then. These are

nowadays manufactured in an array of fabrics, from cotton

twill to suede, vinyl, making leather only one of the choices

amongst which one has to pick up bean bags. Each fabric

gives a different feel to the bean bag furniture and also

come in different types of prints, colours and designs to

give people choice when they are buying bean bag

furniture in accordance with the interiors of one’s room or

office, lounge, hotel lobbies, campuses and so forth.

Every city in India has its own set of bean bag & corporate

gifts manufacturers and suppliers and those who stay in

Mumbai are spoilt for choice when it comes to bean bags.

From the high end lifestyle stores to even departmental or

online outlets, there are bean bag furniture of every type

and design to suit the need and budget of customers.

Cloth used

Bean bags are now available as bean bag chairs, sofas

and even beds. Initial day’s bean bags used to be

expensive since they were only made of leather but today,

there are many other fabrics of which bean bags are made

of and that helps to give them character, diverse looks, feel

and suppleness. From vinyl to nylon, cotton twill, denim,

suede, velvet – there are a wide variety of bean bags

which are available and are not too expensive a purchase

as compared to conventional furniture.

Cost

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The price of bean bags varies as per the material used or

the size. When you look at the usual bean bags for sitting

which are the sizes of small chairs or stools, these come in

the range of Rs. 800 to Rs. 1500. Some furniture stores

give discounts during lean buying periods and one can get

a discounted one for Rs. 500 – 600 as well.

Large or extra large bean bag chairs are usually priced

upwards from Rs. 1500 while those of high quality leather

can set you back by Rs. 5000. If you are looking for bean

bag sofas where two people can comfortably sit side by

side, these are usually priced upwards from Rs. 4000.

Similarly, the bean bag beds cost the maximum since they

are larger in size, often being able to accommodate two

adults in height and width. Such large queen size bean

bag beds would come in the price range of Rs. 10000 and

more, depending upon the brand, the type of material

used, the filling and so forth.

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Type Price (In ₹)

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Small chair 800-1500

Extra large chair 1500 & above

High quality leather 5000 & above

Comfortable sofa 4000 & above

Bean bag beds 10000 approx

BEAN BAG FILLING

Bean bags are being used in almost every home in the

world, leave aside lounges, bars, offices and so forth.

These are the most versatile form of furniture which can be

used in a variety of uses – as stools, chairs, sofas, beds

and even as balls in various games.

Bean bag furniture was initially discovered in the late

sixties by Italian furniture designers who called the tear

shaped sac chair as Sacco. These initially did not gain

much favour amongst the masses since they lacked shape

and character and were made of high quality leather,

making them expensive accessories to have at home.

Luxurious homes and lounges of hotels and other plush

areas sported leather bean bags in the staid colours of

black, brown or red. Initially bean bags were filled with

Styrofoam beads or pellets and even sponge, fur were

used as stuffing.

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Today bean bag fillings are mostly comprised of

polystyrene pellets or PVC pellets. These are usually in the

form of irregular shaped beads which have negligible

weight and these help to provide the light yet supple

characteristic of bean bags.

The popularity of beanbag furniture is mainly due to the

light weightedness as well as the way the bean bags can

mould themselves around a person’s shape, giving the

person a feeling of weightlessness and cosy comfort at the

same time. Such light yet supple support is possible due to

the filling material inside the bean bags.

Bean bag furniture over time may lose the supple, bouncy

character and that is due to the fact that the PVC pellets,

with continued pressure, become crushed and

compressed, causing the bean bags to lose their volume.

This usually leads to reduced feeling of comfort and

support when one sits on these furniture. This is the time

when the polystyrene beads need to be refilled. Packets of

refill material are usually available with bean bag suppliers

and many sell them with the bean bag furniture as well.

Such refilling can be done at home since bean bags

nowadays come with zipped linings which can be opened

and refilled with pellets and safely zipped back again.

Thus, bean bag refilling is essential to keep the form and

shape of such furniture. The removable outer covers of

bean bags can be opened and refilled which is easy to

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implement. Thus making such furniture and their use and

care has become easy and effortless.

Bean bags do not contain beans. Their characteristic soft

stuffing consists of two materials, which are plastic pellets

and polyester fiber fill. The plastic pellets are made of

either polyvinyl chloride (PVC) or polyethylene (PE), and

they are produced by specialty suppliers. The polyester

fiber is the filling commonly used for decorative pillows,

comforters, some furniture, and many other products. The

bean bag outer fabric skin is made of synthetic plush.

We shall use unique fabrics to distinguish our product, for

example, Rexine, Satin, SWIBCO and Leather.

We shall use computer generated patterns and their

corresponding cutting dies to maximize efficiency and

minimize the amount of waste fabric.

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A high-pile fabric shall be used for a fluffy, furry

appearance and to add shimmer and gloss, a unique fabric

known as Tylon shall be used.

Incase of fancy bean bags, like that of animals, child-proof

parts will be used. Industrial standard and quality fabric

shall be used to ensure maximum safety of children.

Secure stitching shall be ensured so that parts dont come

off easily.

The bean bags other prominent attachments are the tags.

Hang tags are printed on paper and bear our identification

and information. The hang tag is attached to the bean bag

with a plastic strip fastener. These shall be made either of

red or clear plastic, and each one shall be 1.3-1.9 cm long.

Also a safety tag which will tell the contents of the critter

and its place of manufacture (usually China, Korea,

Malaysia, or Indonesia), as well as its name, company,

and registration and trademark data. Because of

counterfeiting, holograms that are more difficult to copy

have been added to tush tags.

Sacks:

3.5 ft: One child or one small teenager

5 ft: One adult or two children

6 ft: OUR MOST POPULAR PRODUCT - One adult , two

adults sitting closely, one adult and two small children

7 ft: Two adults or three small children

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8 ft: Four adults or whole family…this product is

MASSIVE!

Huge Pillow

One adult or two small children

Comfy Pad

Two adults or two children

** Pets also love the Comfy Sacks so don't leave them out!

Loungers:

5 ft: One child lying down, two children or one adult

6 ft: STAFF FAVORITE - One adult lying down, two adults

sitting comfortably side by side, two adults and a child,

three children

7.5ft: two adults lying down, three adults sitting side by

side, four children sitting side by side.

Design:

The process of designing a bean bag begins with a

prototype and may take several years to finalize. Our plan

includes designing the bean bags by making several

prototypes of the same design. Shapes, colors, materials,

features, and accessories are varied on the prototypes.

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Then we shall ask friends and employees to poll to help

select the best design. Some designs shall be reissued

with color changes and other variations to improve our

product

The art department shall produce various designs, and the

sketches shall be reviewed by the firm's owners,

employees and even colleagues. The art work is then sent

to the factory where handmade prototypes shall be

constructed from different fabrics and color combinations.

These may be approved for production or new art boards

may be requested, and the process repeats. Of the one’s

selected, they shall be ordered or put to production. The

other which are not selected may be revised and kept for

future

Manufacturing Process:

The patterns made for the selected prototype shall be

computer-generated to fit a given length and width of fabric

and are laid out for optimal use of the fabric. Cutting dies

are also computer-generated from the pattern data.

The various parts and components of the bean bag are

then assembled and then thread and yarn features are

stitched into seams.

Size Sack Dimensions* Weight

3.5 ft Sack 3.5ft x 3.5ft x 2.5ft 7Kg

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5 ft Sack 5ft x 5ft x 2.5ft 10Kg

6 ft Sack 6ft x 6ft x 3ft 12Kg

7 ft Sack 7ft x 7ft x 3ft 15Kg

8 ft Sack 8ft x 8ft x 3ft 18Kg

5 ft Lounger 5ft x 3ft x 3ft 7.5Kg

6 ft Lounger 6ft x 3.5ft x 3.5ft 10Kg

7.5 ft Lounger 7.5ft x 3.5ft x 3.5ft 15Kg

3 in 1 Sack - (Comfy Pad) 6ft x 6 ft x 1ft 12Kg

Pillow Sack 4.5ft x 5.5ft x 1ft 9Kg

Assembly line manufacturing process shall be followed

with different departments manufacturing different

components.

Then all the parts shall be bought together at a station and

industrial sewing machines shall be used to securely sew

them.

Depending on the manufacturer, fiber fill may be added

before they are stitched.

Stuffing is added to the body after careful measuring of

both the bean-like pellets and the polyester fiber.

Measurements ensure a uniform weight.

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Final details like are stitched in place, and the hang tags

are clipped on with plastic fasteners.

The bean bags are then sent to the packaging department

where they are bagged and boxed to a carton for

shipment.

Quality Control :

Seamstresses and assemblers shall be responsible for the

quality of their work.

A final quality control review shall be done prior to packing

at the factory, and when the boxed bean bags reach their

distribution centers in the country.

They shall be inspected again when they are repackaged

for shipment to retail stores.

By-Product/Waste :

Makers of bean bag shall produce lines with similar design

characteristics but no true by-products.

Bean bags are much in demand nowadays, especially in

sprawling metropolitan cities like Mumbai. Every modern

household and even tiny apartment find bean bag furniture

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versatile and useful, adding a hint of contemporary modern

feel to any living arrangement.

Bean bags, which were discovered by Italian furniture

designers in the late sixties, were designed as tear shaped

sac chairs which were made of high quality leather. Since

these chairs did not have any strong support, it depended

on the fabric or material for durability and strength to be

able to provide support to those who sat on these. Thus,

leather made the perfect material for such bags but that

also made such items expensive for the common man.

Operation

Our manufacturing processes include all activities from the

point when raw material(textiles and beans) are received

at the factory, to when retail-ready bags are shipped to the

distributor. Some processes—such as fabric relaxing,

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cutting, and sewing—occur in the manufacturing of all

requirements. Other optional processes may also be

performed as specified by the customer, That is

customization of existing product.

Depending on the size of the manufacturing facility, some

manufacturers choose to subcontract those optional

processes.

Fabric Relaxing

Fabric bolts are unrolled to allow material to relax and

contract. Fabric relaxing minimizes shrinkage during

washing.

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Spreading, Form Layout, and Cutting

The fabric is cut into uniform plies and spread onto the

cutting surface. Forms are then laid out on the top of the

spread, and the fabric is cut to the pattern shapes. Cutting

is performed manually or using a computerized system.

Embroidery and Screen Printing and designing

Optional customer-requested services may be performed

to put logos or other embellishments on bags.

Sewing

Bags are sewn in an assembly-line manner, with the

garment becoming more complete as it progresses down

the sewing line.

Spot Cleaning and Laundry

This step is labor-intensive. Cosmetic flaws, stains, or

other spots identified on an assembled Product may be

cleaned using steam, hot water, or chemical stain

removers.Customers may require a Bags to be fully

laundered after it is sewn and assembled.

Testing

Each garment is manually tested and then folded prior to

packaging.

Packaging and Shipping

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Garments are tagged, sized, and packaged according to

customer specifications and then shipped to client

distribution centres.

1. Purchase sufficient materials and equipment. Also

purchase basic packaging supplies, especially if you will

ship your furniture outside of the local area.

2.Create designs and set production time frames. If you

are working on custom, concentrate on maintaining

efficient capacity levels, such as 10,000 small pieces and

7,000 large pieces daily with minimal defects.

3.Estimate basic expenses. You must consider prices

related to raw materials (Leather and thermacol balls)

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4.Advertise using multiple avenues like placing your

contact information on the furniture delivery vans

5.Review operations and logistics decisions regularly..

6. Buy a truck or lease trucks from a truck leasing

company. we plan to buy truck saving costs in the

beginning. Also motorcycle or bicycle for delivery man.

7.Market your furniture delivery business by passing out

brochures and calling different companies. Print out

business cards and give them to interested clients.

Human Resource

HUMAN RESOURCE MANAGEMENT

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1. OVERVIEW

The main activity of this HR was to review the current state

and practices in place When asked about the main

challenges facing them in production, issues such as late

delivery of materials, high absenteeism, lack of

commitment of workers, a shortage of high quality stitches

(furniture issue), along with labour productivity, were the

most cited by managers. advanced HR techniques are

findings from the survey.

2. RECRUITMENT

A formal recruitment procedure is the first step towards a

more strategic and value-adding HRM system. In order to

have the best impact on performance many of the

advanced HR techniques require the selection of certain

types of workers: those that have the personality traits to

be motivated by and perform well in teams, or those that

are slightly more educated and will respond better and

more quickly to training.

3. TRAINING

Training is the key component of a more advanced HRM

approach. Investment in training was lower than

anticipated at the surveyed firms. One of the reasons for

this may be the ready supply of skilled labor in particular

regions, skills having been passed down through

generations in cottage industries and then transferred to

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the factory. Factory managers may also simply perceive

only limited benefits

4. RETENTION AND MOTIVATION

Many of the factories in the survey supplement their

workers’ basic wage with a performance bonus. Rewards

for reaching targets generally ranged from 10-35% of a

worker’s total take home pay. At some of the more

sophisticated factories with better performance monitoring

systems the incentive scheme appeared to be doing its

job, but many others were struggling. Some did not pay the

bonus often enough or with such a time lag between

performance and benefit that it ceased to serve its

purpose.

5. HR Focus Points

• Employee must be a focused profile that presents you

as an ideal choice for the position. The profile must

highlight your strengths in the perticular field, for example

being a creative thinker, having proven management or

leadership skills and being an excellent communicator.

Past Experience

• Employee should have good past experience include a

list of your major roles and responsibilities with previous

employers. Examples of your previous work should include

addressing customers' needs custom requirements,

examining the production of the garments, providing price

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quotes for new customers, overseeing operations and

providing employee feedback during the production,

ensuring the quality is up to par before shipping, handling

all external communication with customers.

Education

• Employers will browse through your educational

background and have been professionally trained .

Additional Skills

• This requires knowledge of computers and technological

gadgets so the manager can reply quickly and effectively.

Outline any computer skills or communication skills you

may have that can benefit your work as a garment export

production manager. Include any language skills you have

that allow you to communicate more effectively with

customers.

Salaries Roughly (Per Month)

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Marketing/Sales/Finance Executive : Rs.10,000 to

Rs.15,000

Labour(Cutting/ sewing/Other) : Rs.3,500 to Rs.10,000

Delivery and cleaner : Rs.5,000 to Rs.10,000

Marketing :

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Pricing Your Product

How you price your product is important because it will

have a direct effect on the success of your business.

Though pricing strategy and computations can be

complex, the basic rules of pricing are straightforward:

1. All prices must cover costs.

2. The best and most effective way of lowering your sales

prices is to lower costs.

3. Your prices must reflect the dynamics of cost, demand,

changes in the market, and response to your competition.

4. Prices must be established to assure sales. Do not price

against a competitive operation alone. Rather, price to sell.

5. Product utility, longevity, maintenance, and end use

must be judged continually, and target prices adjusted

accordingly.

6. Prices must be set to preserve order in the marketplace.

There are many methods of establishing prices available to

you:

Cost-plus pricing -- Used mainly by manufacturers, cost-

plus pricing assures that all costs, both fixed and variable,

are covered and the desired profit percentage is attained.

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Demand pricing -- Used by companies that sell their

product through a variety of sources at differing prices

based on demand.

**Competitive pricing -- Used by companies that are

entering a market where there is already an established

price and it is difficult to differentiate one product from

another.

Mark-up pricing -- Used mainly by retailers, markup pricing

is calculated by adding your desired profit to the cost of the

product. Each method listed above has its strengths and

weaknesses.

Distribution

Distribution includes the entire process of moving the

product from the factory to the end user. The type of

distribution network you choose will depend upon the

industry and the size of the market. A good way to make

your decision is to analyze your competitors to determine

the channels they are using, then decide whether to use

the same type of channel or an alternative that may

provide you with a strategic advantage.

Some of the more common distribution channels include:

**Direct Sales -- The most effective distribution channel is

to sell directly to the end-user.

Manufacturer's Representatives -- One of the best ways to

distribute a product, manufacturer's reps, as they are

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known, are salespeople who operate out of agencies that

handle an assortment of complementary products and

divide their selling time among them.

Wholesale Distributors -- Using this channel, a

manufacturer sells to a wholesaler, who in turn sells it to a

retailer or other agent for further distribution through the

channel until it reaches the end user.

Brokers -- Third-party distributors who often buy directly

from the distributor or wholesaler and sell to retailers or

end users.

Retail Distributors -- Distributing a product through this

channel is important if the end user of your product is the

general consuming public.

Promotion Plan

With a distribution strategy formed, you must develop a

promotion plan. The promotion strategy in its most basic

form is the controlled distribution of communication

designed to sell your product or service. In order to

accomplish this, the promotion strategy encompasses

every marketing tool utilized in the communication effort.

This includes:

Advertising -- Includes the advertising budget, creative

message(s), and at least the first quarter's media

schedule.

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Packaging -- Provides a description of the packaging

strategy. If available, mockups of any labels, trademarks or

service marks should be included.

Public relations -- A complete account of the publicity

strategy including a list of media that will be approached as

well as a schedule of planned events.

Sales promotions -- Establishes the strategies used to

support the sales message. This includes a description of

collateral marketing material as well as a schedule of

planned promotional activities such as special sales,

coupons, contests, and premium awards.

Personal sales -- An outline of the sales strategy including

pricing procedures, returns and adjustment rules, sales

presentation methods, lead generation, customer service

policies, salesperson compensation, and salesperson

market responsibilities.

Sales Potential-- Once the market has been researched

and analyzed, conclusions need to be developed that will

supply a quantitative outlook concerning the potential of

the business. The first financial projection within the

business plan must be formed utilizing the information

drawn from defining the market, positioning the product,

pricing, distribution, and strategies for sales. The sales or

revenue model charts the potential for the product, as well

as the business, over a set period of time. Most business

plans will project revenue for up to three years, although

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five-year projections are becoming increasingly popular

among lenders.

When developing the revenue model for the business plan,

the equation used to project sales is fairly simple. It

consists of the total number of customers and the average

revenue from each customer. In the equation, T represents

the total number of people, A represents the average

revenue per customer, and S represents the sales

projection. The equation for projecting sales is:

T A = S

Using this equation, the annual sales for each year

projected within the business plan can be developed. Of

course, there are other factors that you'll need to evaluate

from the revenue model. Since the revenue model is a

table illustrating the source for all income, every segment

of the target market that is treated differently must be

accounted for. In order to determine any differences, the

various strategies utilized in order to sell the product have

to be considered. As we've already mentioned, those

strategies include distribution, pricing, and promotion.

Buzz Marketing At Trade Shows

Marketing Strategy For Small Business: Best tip, resist the

urge to look/sound like your bigger competitors. To create

buzz at a trade show for a client and demonstrate how

other competitors waste customers' time, we strapped a

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big clock to a gurney and walked it around the show floor

with two EMT types. T-shirts with the URL and booth

number were the only "branding." Buzz = conversation,

conversation = participation.

Maintain Relationships With Clients

Marketing Strategy For Small Business: The difference

between a successful company and a mediocre one often

boils down to an owner’s commitment to building (and

sustaining) relationships with clients and prospects. While

it’s important to keep up traditional communication and PR,

business owners should also be extending their

relationships through online forums - website, blogs, and

social networks.

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Web site

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Finance:

Money makes your business go. But don't try going to a

bank to get it when you've just started in business. Banks

normally make loans only to businesses with operating

histories. This section will give you some alternatives,

some strategies and some things to think about as you go

about finding the money to make your business work. A

banker's primary concern is your timely repayment of

loans. The fuel to make loan payments come from your

cash flow. So your management of cash flow is of utmost

interest to your banker and you must convince the banker

that you are an expert in making cash flow projections that

safely include your loan payments. Here is more

information on cash flow which is taken from session one

of our Building My Own Business course.

The cash flow control form will spell out all of your sources

of income and expenses. For example, some expense

items might include:

• Buying supplies and inventory while waiting to get paid

• Paying payroll and rent

• Buying equipment and fixtures

• Getting a machinery

• Buying the business

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Product Cost:

Type Price (In ₹)

Small chair 800-1500

Extra large chair 1500 & above

High quality leather 5000 & above

Comfortable sofa 4000 & above

Production Cost: (Bean bag beds qt.10000 approx)

Schedule of Cost of Goods Manufactured

Direct Materials:

Beginning raw materials inventory Rs.2 lakh

Add: Purchases of raw materials

Raw materials available for use

Less: Ending raw materials inventory

Raw materials used in production

Direct Labour Rs. 1 lakh

Manufacturing overhead:

Indirect labour Rs.50000/-

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Machine rental Rs.1 lakh

Utilities factory Rs.75000/-

Supplies

Depreciation, factory

Property taxes, factory Rs.10000/-

Total overhead costs Rs.1,50,000/-

Total manufacturing cost

Add: Beginning work in process

Less: Ending work-in-process

Cost of goods manufactured Rs. 6.85 lacs.

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SWOT Analysis

Strengths:

Unique Product

Line Extension

Online Presence

Comparative Less Pricing

Weakness:

Low Finance

Competitive Pricing

Not suitable for long use

Opportunity:

Customization

Color and shapes variation

Bed extension

Threats:

Strong Competitor

International Competition

Fancy Furniture in market