Essay About Business Plan And Flower Shop

Business Plan for a Flower Shop
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Table of Contents
1. Executive Summary 1
Business Opportunity
Product/Service Description
2. Company Background 3
Business Description
Company History
3. Business Plan For A Flower Shop 5
4. Services 6
5. The Industry, Competition, and Market 7
Market Definition
Primary Competitors
Customer Profile
6. Marketing Plan 10
7. Financial Plan 12
Investment Plan
Break-even Analysis
Liquidity Plan
Earnings Plan
Risk Analysis
8. Conclusion 20
Business Plan For A Flower Shop 1
1. Executive Summary
The flower industry is growing businesses. Several research institutes assumes that the
growth rates are higher than 10% up to the year 2006. For the United States and Canada
where the company operates the flower retail industry expects significant growth rates to
persist in the near future so that investments in that segment are very profitable.
The goal of this start-up is the operation of a flower shop company that offers a selected
range of products. Products will be offered with a focus on regional markets. New store
technologies like just-in-time delivery and product optimization will support this business.
1.1 Business Opportunity
The flower industry shows a constant positive demand but it is necessary to develop new
business strategies and solutions to get market shares and survive in this highly
competitive industry. The choice of services as well as the development of new products
can be one strategy in this field of business. Additionally a sound cost management is of
critical importance for a solid stream of revenues. Big industry players have shown that
even in a competitive market growth rates of more than 5% can be sustained.
The operation of a trading company that offers a range of flower products and services is
the core of this start-up. The following products and services are the main sales
components
flowers
gifts
accessories
A strong focus of this business will be placed on the selection of new products for the
customers that deliver a significant value. As an add-on a broad range of customized
services will be offered, which will help utilize company and employee capacity.
Services are
flower care services
delivery services
The range of products is selected to provide solid growth potentials. This can lead to a
fast change of goods or whole item groups as well as service elements.
One central goal of the proposed business strategy is the development of an own
corporate identity. Such identity will create customer loyalty and help gain a competitive
advantage. Therefore it is planned that additional to the selection of new and interesting
services a company design is developed. For this reason the service around the offered
applications and the additional businesses are very extensive.
The required investment for the proposed business is moderate compared to other
companies in the industry. Labor is expected to be the main cost driver whereas no other
Business Plan For A Flower Shop 2
substantial investment in fixed assets is required. Depending upon the location the
minimum required investment amount ranges between $50,000 and $60,000 in the
start-up phase based on a 7-10% average revenue margin. This amount is well within the
financial requirements observed for other comparable companies.
1.2 Product/Service Description
The business will operate in the retail industry segment with a variety of entertainment
products. An additional sources of revenues beside the sale of products is the
development of customized flower products. Cross selling is planned to be one of the
prime strategies in this business since all products are targeted to serve a similar need and
can easily be combined. Synergies in selling product across business segments is likely to
boost earning further. Net earning are expected to be at least 2.0% above traditional retail
businesses with only one or two sales segments.
Figure 1.1 shows the revenue mix across segments in the start-up phase. This projection
is based on the expected strategic direction, investment amount and business
environment. Being the core business the sales segment is expected to generate the
largest share in revenues. The sale of individual services is expected to be another
important generator of revenues which also helps utilize invested capacity.