Diamond Cutting and Polishing Business Plan Sample

Do you want to start diamond cutting and polishing business?

Are you thinking about starting a diamond cutting and polishing business? Well, it is an immensely profitable business that involves shaping the diamond in various forms taking high accuracy in consideration. So, if you are a person with technical skills and if you can afford the money required to buy its expensive equipment, then this is probably the right business for you.

The first step before starting this business is to write a professional business plan. To guide you through the steps of starting this business and making an effective plan, we are providing here a sample diamond cutting and polishing business plan for a startup named, ‘Diamo Cuts’.

Executive Summary

2.1 The Business

Diamo Cuts will be a licensed and insured company based in New York City, mainly focused on obtaining various eye-catching shapes from the rough diamond crystal. This diamond cutting business plan, will be demonstrating the way Diamo Cuts will adopt in order to polish and shape the diamonds.

2.2 Management

If you have decided to start a diamond shaping business, you must

be very wary about the staff you hire and the management plan you follow. This business requires highly skilled business consultants, delicate equipment and expensive machines. So, in your gemstones business plan, you have to add a detailed plan about how you will be able to manage all these. Our feasibility plan is mainly written for rough diamond business plan but it will guide you through the steps of earning huge profits by this luxurious commodity.

2.3 Customers

As we’ll be servicing in cutting diamonds in required shapes so our customers will mainly be the jewelry stores, automotive, mining and military industries, medical equipment manufacturers, and the wealthy community of NYC.

2.4 Business Target

Our target is to be the most visited diamond cutting business in the whole of NYC. Our financial targets are to balance startup costs with the earned profits within a year.

Franchise Business Planning 

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Samuel Depp will be the owner of the business. Samuel is a graduate in management sciences from the University of California. Before starting a diamond business, Samuel has taken a course of Diamond Cutting and Rough Diamond Grading from the American Institute of Diamond Cutting.

3.2 Why the Business is being started

Samuel knows how to start a diamond jewelry business due to all his paternal relatives in the jewelry manufacturing field. He not only has the knowledge of how to upgrade rough diamonds but the experience of teaching this skill for two years in the same institute from where he learned. Considering the money which he can invest, he has decided to opt for this business.

3.3 How the Business will be started

After making a detailed diamond polishing business plan, Samuel has decided to hire his employees with a certification in Diamond Cutting & Grading. He will buy a facility in New York City and will purchase the required machinery and tools.

Shaping and cutting is the basic thing which gives a diamond its beauty, cutting by specific angles cause the diamond to reflect light brilliantly. So, in order to have accurate cuts, Diamo Cuts will be using Sarin Machine, Laser Diamond Sawing Machine, and other latest equipment.

The detailed startup requirements are given below:

Products

After training his staff, Diamo Cuts will provide the following services to its customers. For anyone who wants to know how are diamonds cut and polished, we are providing a sample plan, enlisting services in detail free of cost.

1. Diamond Cutting & Shaping from Rough: Our main service will be to convert rough diamond crystal in various shapes such as oval, marquise, cushion, round, emerald or any other required.
2. Repairing, Reshaping & Polishing: We’ll repair, recut and reshape every type of gemstone and diamond.
3. Laser Inscription: We will etch numbers and letters on diamonds for certification or identification purposes.
4. Buying & Selling: We will buy and sell diamonds and gemstones in a small display store of our company.

Marketing Analysis of Diamond Cutting And Polishing Business

5.1 Marketing Segmentation

Diamo Cuts has divided its target customers in the group of three to focus on each category separately.

The detailed marketing segmentation of our target audience is as follows:

5.1.1 Jewelry Stores: The biggest group of our target customers will be the stores who design and sell jewelry sets. They will require our services in order to shape the diamonds in different sizes to be used in ornaments.

5.1.2 Automotive, Mining, Military & Other Companies: Our second target group will comprise of the companies who manufacture mechanical or optical equipment, electronic appliances, and heat sinks and the companies who require it for cutting glass or drilling.

5.1.3 Medical Equipment Manufacturers: Our third target group will be the manufacturers of surgical instruments and medical equipment such as diamond knife and diamond blades which are used in delicate surgeries.

5.1.4 Residents: Last group of our target customers will comprise of the rich class of NYC, who can afford precious gemstones and diamonds. They are expected to buy diamonds from us and to reshape and polish their old ones.

The detailed market analysis of our potential customers is given in the following table:

5.2 Business Target

Our business targets are as follows:

• To balance startup costs with earned profits by the end of the first year
• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year

5.3 Product Pricing

Diamond cutting is a hard and technical job. Keeping in view the training, experience, and delicacy of our work, we haven’t priced our services low. They are nearly the same as our competitors.

Strategy

After having a detailed market analysis, you now know how to get into the diamond industry. It’s time to think about ways to be distinguished from your competitors and to be able to gain desired customers.

6.1 Competitive Analysis

If you are looking for how to get into the diamond business and run it successfully, you must have some features in you which your competitors lack. The biggest competitive advantage of Diamo Cuts will be its highly experienced and skilled staff. All our staff will be trained for using the latest techniques to perform the task effectively. Secondly, we will be offering Laser Inscription which none of our competitor in the market is offering right now. And lastly, we are initiating our business in a location which is considered an ideal location for a diamond dealing business.

6.2 Sales Strategy

To advertise and sell our services, our experts have come up with the following ideas:

• We’ll send our introductory letters to the first three groups of our target customers with an offering of 5% discount to get introduced to them
• We’ll advertise our services through the local newspaper and magazines
• We’ll emphasize on our search engine marketing efforts to ensure a strong web presence

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Enlisting the staff with a little job description is an important component of a diamond business plan. Samuel has decided to hire certified staff for diamond upgrading. To ensure the best quality work, he will also be training them a week before the launch of the business.

7.1 Company Staff

Samuel will be the manager himself, the staff he’ll hire is as follows:

• 1 Accountant to maintain financial and other records
• 2 Sales Executives responsible for marketing and discovering new ventures
• 2 Diamond Grading & Inspection Experts
• 8 Diamond Cutting, Resizing, Polishing & Shaping Experts
• 1 Store Manager to operate sales and purchase unit
• 1 Technical Assistant to manage the company’s websites and social media sites
• 3 General Assistants for carrying day-to-day tasks
• 1 Technician to deal with any inconvenience related to machines
• 1 Customer Representative to interact with customers and record their orders
• 8 Security Officers

7.2 Average Salary of Employees

Financial Plan

Diamond cutting and polishing is a business which requires a considerable investment to buy equipment, tools, and latest machinery. So, if you have decided to start this business you need to make an accurate financial plan crafting in detail the cost of inventory, payroll, utilities required for the startup and a plan to balance all these costs by the earned profits. Samuel himself is adept in financial planning so instead of getting this work done by somebody else he has prepared his financial plan by himself which is given here as a financial plan for diamond manufacturing process pdf for anyone who wants to benefit.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Diamond Cutting and Polishing Business Plan Sample in pdf

Professional writers OGS capital specialized also on theme such as production and supply chain business plan, candle making business plan, manufacturing business plan, electronics semiconductor business plan, coal mine business plan, business plan for a metal casting shop and many other business plans.