Student name : NONTOBEKO SIZIBA
TO : MRS MIDZI
Subject Code: Cambridge IGCSE Enterprise (0454)
Enterprise Venture: Scented Candles, Hand Creams, and Perfumes
The objective of this formal report is to critically analyze and evaluate the performance,
planning, implementation, and financing of my enterprise project, which focused on sourcing,
bundling, and retailing self-care products including scented candles, hand creams, and
perfumes. This venture was developed to tap into the high demand among teenage
consumers (aged 11–17) for affordable cosmetic items aligned with trending social media
aesthetics.
Evaluation of Planning Methods and Their Suitability
To structure the timeline and operations of the self-care enterprise, a formal Action Plan and
project scheduling table were drafted prior to launch. The planning framework allocated
sequential blocks for business ideation, market research, supplier sourcing, and risk
assessment.
● Suitability of the Action Plan:The dates l set for initial planning allowed me to process
the information without too much pressure for example when using one week to
brainstorm and another to select the enterprise this allowed me to proper evaluate
my choices and weigh the outcomes
● Suitability of Market Research Design: Schedulers also successfully integrated a
data collection phase by utilizing Google Forms distributed digitally to future clients.
This planning method proved immensely suitable because it gathered concrete data
from 31 respondents. The resulting insights explicitly informed stock selection,
revealing that 32.3% of the target market favored skincare, 32.3% desired bundled
combinations, 32.3% preferred a "Clean Girl" scent profile, and 83.9% required
affordable products priced around $5.
● Limitations and Unrealistic Planning Assumptions: Despite these strengths, the
planning method was fundamentally flawed due to its structural rigidity and
over-optimism regarding the supply chain. The plan budgeted a fixed three-week
window for "locating an affordable and reliable supplier" without embedding an
operational buffer or contingency margin for external shipping issues. The planning
tools treated supplier fulfillment as a guaranteed thing to happen , making me
vulnerable to market friction.
● Supplier Sourcing Deviation: The initial plan centered on importing luxury perfumes
housed in glass bottles. However, days before the scheduled launch, I encountered a
major obstacle: no international supplier was willing to ship the items at an affordable
rate. The resulting high shipping fees threatened to eliminate all projected profit
margins. This caused a drastic deviation from the action plan, forcing me to abandon
the international supply chain and spend two intensive days networking with local
wholesalers via WhatsApp, TikTok, Instagram, and Facebook.
● Product Specification Deviation: Because local wholesalers charged higher baseline
wholesale prices than international manufacturers, the original blueprint for luxury
glass packaging became financially unviable. To maintain operations, I deviated from
the plan by sourcing smaller, plastic-bottled alternatives and rebranding the line as
"travel-sized" essentials.
● Competitive Sells-Phase Deviation: The sales phase deviated sharply due to external
market factors. A direct competitor launched a similar venture selling perfumes at a
lower price point, which caused an immediate drop in my foot traffic. This required a
tactical operational pivot away from selling individual units toward an unbudgeted
"Bundle Strategy".
Comprehensive Analysis of Positive and Negative Implementation Outcomes
Positive Implementation Outcomes
● Successful Deployment of Delegated Purchasing: A positive outcome of
implementation was the effective execution of an outsourced purchasing strategy.
Recognizing that my school attendance restricted physical access to wholesale
markets, I delegated market procurement to a trusted representative. To prevent
errors, I provided a digital shopping list outlining strict parameters, maximum unit cost
caps, plastic bottle material criteria, and photo-verification via Email before final
payment was released. This remote supervision allowed stock to arrive safely and on
time.
● Effective Value-Driven Sales Communication: When consumers expressed
resistance to the premium $5–6 price point for hand creams and perfumes compared
to mass-produced alternatives, the implementation adjusted dynamically. By shifting
the sales pitch from price to quality focusing explicitly on "long-lasting" properties and
the enterprise successfully preserved its premium brand value and maintained a
healthy profit margin without initiating a damaging price war.
Negative Implementation Outcomes
● Extreme Compressed Timeline and Quality Risk: The lack of a planning buffer meant
that the two days lost to resolving the shipping crisis compressed the preparation
window. This forced a rushed assembly and packaging process.
● Vulnerability to Direct Price Wars: Inital implementation left the enterprise highly
exposed to direct competition because the products were originally presented as
standalone units. This allowed buyers to perform a direct, unfavorable price
comparison against the cheaper competitor, which instantly depressed opening-day
sales revenue.
Suitability of the Sources of Finance Used
The capital requirement for initial stock procurement was calculated at exactly $50. Due to
the high risks of cutting corners or producing low-quality items, securing the full $50 was
critical to preserving profit targets. The chosen source of finance was an external
interest-free micro-loan from parents.
● Suitability Analysis: This source was exceptionally suitable because it carried a 0%
interest rate, removing any debt-servicing overhead that would inflate fixed costs or
raise the break-even threshold. Additionally, it eliminated external legal liabilities,
keeping the financial structure highly secure for a student venture.
● Limitations: The limitation of this source was the strict non-financial requirements
imposed by the lenders. The parents expressed severe concerns regarding the risk
of business failure, capital loss, and potential negative impacts on my academic
performance and exam preparation. To mitigate this limitation, I had to engage in
formal negotiations to offer alternative personal guarantees, such as a formal "Loan
Agreement" and an installment repayment plan funded by my weekly allowance if
sales fell short.
Management and Monitoring of Income and Expenditure
Financial oversight was maintained through cash flow budgeting and manual ledgers.
● Positive Monitoring Outcomes: Preparing a pre-negotiation break-even sheet and
budget allowed for tight cost control. Every dollar of the $50 startup capital was
strictly allocated toward plastic-bottled perfumes, perfume oils, hand creams, and
scented candles. This detailed budget mapping successfully prevented cash leaks.
● Negative Monitoring Outcomes: The operational risk assessment in my financial logs
identified key vulnerabilities. Raising capital was highly constrained, meaning that
over-purchasing stock risked creating illiquid, expired, or damaged inventory.
Conversely, ordering too little threatened immediate stockouts and permanent
revenue loss. During peak trading hours, tracking became rushed and disorganized,
creating small end-of-day discrepancies between physical cash and written ledgers
that required manual reconciliation.
● Analysis of Variance: In terms of total revenue, the project perfectly matched its
predicted minimum baseline target of generating $50 in revenue, ensuring the
enterprise's short-term survival. However, the cash flow behavior varied heavily from
predictions.
● Product Mix Variance: It was predicted that revenues would flow from individual units
of luxury glass perfumes and candles. Instead, the actual revenue was driven entirely
by low-cost plastic bottles and strategic "Pamper Hampers" or gift bundles.
● Cost Variance: Sourcing from local wholesalers rather than international distributors
caused a negative variance in unit purchasing costs. This variance was absorbed by
pricing the bundled gift sets strategically to create a higher perceived value, masking
the transition to cheaper plastic packaging.
Achievement of Financial Aims
The primary financial goal of the enterprise was to secure enough revenue to break even,
clear inventory, and fully repay the $50 seed loan to maintain formal enterprise standards.
The venture successfully hit its break-even point. By refusing to give up during the shipping
crisis and adapting the product configuration into high-margin $5 gift sets, the business
generated its first $50 in revenue. This completely covered the initial investment loan,
leaving the business self-sustaining and free of external liabilities.
Recommendations for Improvement
Setting Up Backup Sourcing Channels
● Recommendation: I recommend finding and contacting at least two different
suppliers (one primary option and one local backup option) during the planning stage,
before spending any money.
● Justification: My original plan completely failed when international shipping fees
suddenly became way too expensive right before my launch, causing a massive
emergency. I had to waste two full days panicking and hunting for local wholesalers
on TikTok and WhatsApp. Having a backup supplier ready to go beforehand means
that if one option falls through or raises their prices, I can instantly switch to the
backup without ruining my timeline or having to rush my product assembly
● Better Prep for Competitors and Product Differentiation
●
● Recommendation: For future projects, I recommend planning a "Bundle-Only"
strategy and adding unique, handmade packaging touches before launching, rather
than waiting for a competitor to force my hand. I should also come up with a catchy
signature brand feature (like a personalized thank-you note or a specific ribbon color)
to stand out.
● Justification: In this project, when another student set up a stall right next to mine
selling similar perfumes for cheaper, my sales dropped immediately because
customers could easily compare prices. If I had pre-planned matching gift sets (like a
hand cream and perfume bundled together) with cute, aesthetic packaging from Day
1, it would have given my items a higher "perceived value." This would make it
impossible for competitors to do a direct price comparison, protecting my sales from
price wars.