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Business Plan for a Flower Shop

Essay by   •  August 21, 2011  •  Business Plan  •  4,619 Words (19 Pages)  •  3,562 Views

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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.

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