The document discusses starting a business called LayZee Bean Bags that manufactures and sells bean bag chairs. It outlines the company description, products and services, production and manufacturing process, operations plan, marketing strategies, financial plan, and SWOT analysis of LayZee Bean Bags. The business would produce bean bags in various sizes using different fabrics and fillings, with the goal of providing comfortable and affordable seating options.

1. LayZee Bean Bags
Setting Up a Business?
Renzil D’cruz
http://RenzilDe.com
http://about.me/renzilde
http://linkedin.com/in/renzilde
1

2. 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
2

3. 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
3

4. 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.
4

5. 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
5

6. Production
6

7. 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
7

8. 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.
8

9. Type
Price (In ₹)
9

10. 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.
10

11. 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
11

12. 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.
12

13. 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
13

14. 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.
14

15. 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
15

16. 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.
16

17. 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
17

18. 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,
18

19. 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.
19

20.  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
20

21. 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)
21

22. 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
22

23. 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
23

24. 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
24

25. 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)
25

26. 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 :
26

27. 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, costplus pricing assures that all costs, both fixed and variable,
are covered and the desired profit percentage is attained.
27

28. 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
28

29. 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.
29

30. 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
30

31. 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:
TA=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
31

32. 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.
32

33. Web site
33

34. 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
34

35. 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.50000/35

36. 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.
36

37. 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
37