Business Plan Flower Shop:”Blooming Flowers”

Business Plan
Flower Shop:”Blooming
Flowers”
Maria Sliusarenko
HME, 2nd year
1
Content
1. Executive Summary
3
2. The Business/Product
4
3. Competitive Analyses
5
4. Market Analysis & Marketing Plan
9
5. Management Plan
14
6. Financial Plan
17
7. Potential Risks& Contingency Plans
22
8. Reference
23
2
1. Executive Summary
The floral industry is one of the major industries in many developing and underdeveloped
countries. Shop: "Blooming Flowers" will be located in Amsterdam, Netherlands. "Blooming
Flowers” is a shop with a variety of fresh flowers and plants. The atmosphere will be quite
intriguing once you step in with the aroma and beauty of flowers. Also in shop you can find
different type of tea and some natural cosmetics from flowers. This flower shop will always
carry a wide array of unique and traditional flowers that can be immediately made for a
customer or for a future event.
Mission
The Flower Shop's mission is to become the popular and demanding florist shop in Amsterdam
area and world delivery services. The company guarantees 100 percent customer satisfaction
and values friendly service.
Objectives
The first objective of flower shop is establishing good relationship between our clients and
make unique atmosphere, friendly and visually appealing. Secondly, we want to give you the
best we could offer for yours assigned budget. Other objective is providing fresh unique
flowers, natural cosmetics from flowers to the local community. And most important objective
is offering product with highest quality than our competitors. That’s why we want to provide
products from quality suppliers and provide professional customer service in a friendly
environment.
Keys to Success
“Blooming Flowers” shop will provide products with high quality for the satisfaction of 100% of
our customers. Our flower shop will introduce the product to the clients through different ways
of marketing. Provide friendly customer service. Developing good relationship between
employees and employers as well as clients and agents. Hiring responsible employees who can
respond efficiently to the given task at hand. Encourage customer input. It will help “Blooming
Flowers” shop become successful in flower industry.
3
2. The Business/Product
Company Description
"Blooming Flower" shop's goal is to provide a variety of floral arrangements for personal needs
and occasions. The flower shop will be located in Shopping Center Overvecht on the
Roelantdreef Street, Amsterdam. In the shop you can find different kind of flowers and plants.
Also we are selling a variety of tea and natural cosmetics from flowers.
The shop will work 7 days per week.
Monday
9.00 am – 19.00 pm
Tuesday
9.00 am – 19.00 pm
Wednesday
9.00 am – 19.00 pm
Thursday
9.00 am – 19.00 pm
Friday
9.00 am – 19.00 pm
Saturday
10.00 am – 18.00 pm
Sunday
10.00 am – 17.00 pm
Company Ownership
“Blooming Flower” shop will formed in 2017 year in Amsterdam, Netherlands. The company is
start-up business flower shop industry owned 100% by Maria Sliusarenko.
Legal form
“Blooming Flower” shop legal form of business is a sole proprietorship, full owned by Maria
Sliusarenko. The flower shop will be registered in the Amsterdam a community property state.
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Success does not come easily for small business enterprises. Successful sole proprietors should
be strong physically and emotionally. The geographic location of “Blooming Flower” shop will
be investigated thoroughly regarding its growth potential.
Location & Facilities
The flower shop will be located in Shopping Center Overvecht on the Roelantdreef Street,
Amsterdam. In this Shopping Center they don't have flower shop that's why it is nice location
for my shop. Because in the shopping center is cheaper and all time a lot of clients. For
decoration of my flower shop I will need cash register, stands for flowers, vases, shelves, plastic
flasks and refrigerator for flowers. The flower shop will be in the format of the pavilion or kiosk
arranged 400-500 square feet. The rental price of premise will be near 2.000 euro per month.
Product
Hand-tied Bouquets. For customers who prefer to use their own vases, "Blooming Flower" will
offer hand-tied bouquets.
Green and flowering houseplants. "Blooming Flower" can sometimes offer a wide selection of
seasonal green and flowering houseplants.
Original floral patterns using a wide Mix colors. Each "Blooming Flower" floral arrangement is a
natural , original work of art. The company strives to make each arrangement unique and
specially designed with the needs of each client. "Blooming Flower" floral arrangements will be
presented a wide range of seasonal flowers. All samples in the shop agreement will be available
for purchase.
Variety of prices. "Blooming Flower" will offer various sizes of arrangement, and will always
create a unique arrangement to meet anyone's budget stated.
Our flower shop is unique for you because there you can buy not just flowers, also tea and
natural cosmetics from flowers. And for all this you do not need spend a lot of money. As well
we have an online store where you can order flowers from all over the world and we are
guarantee delivery in time and quality of our product.
Services
Free consulting. "Blooming Flower" shop will have good qualified staff. They can help you in all
questions. Our florist will help to choose correct flowers, gifts for your events or conferences.
Also they can suggest nice decoration with flowers to your home or office.
5
On-line shop and World delivery. The flower shop will have on-line store in internet. There we
will show variety of our products which clients can order during 24 hour per day. It doesn't
matter where are you living, we are sending our products around the world. "Blooming Flower"
shop is giving guarantee that your order will come in time and with good quality.
Birthday Blooms. The flower shop will offer a free arrangement to each office manager for a
commercial account on his or her birthday.
Discounts. "Blooming Flower" shop will provide discounts for loyal customers. After two of
purchase in our shop you will have 3% of discounts in our products. Also we will have discount
cards with 10% of discount for regular clients. The clients can get the card after ten of purchase
in our shop.
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3. Competitive Analyses
Bloemenmarkt
Bloemenmarkt is the worlds only floating flower market. Founded in 1862, it is located in
Amsterdam, Netherlands, on Singel between Muntplein and Koningsplein city in southern canal
belt . It includes 15 florists and garden shops as well as a range of souvenir gifts. Market is one
of the main suppliers of flowers to the center of Amsterdam.
Online shop 1-800 -FLOWERS.COM
1-800 -Flowers.com, Inc is a floral and gift retailer and distribution company in the United
States. It was one of the first retailers to use the toll-free 24 x 7 Phone and Internet for direct
sales to consumers.
Online shop FloraQueen
FloraQueen specializes in international flower delivery and gift delivery with a 100% guarantee.
Offering worldwide delivery flower FloraQueen is your best choice for sending flowers abroad.
Competitors Strengths and Weaknesses
Strengths
Bloemenmarkt
Weaknesses
-They are selling variety -They don’t have
fresh flowers.
online shop.
-The have
products.
high-quality -No credit cards.
- They don't have
- One of the oldest canals in worldwide
Amsterdam.
delivery.
- High loyalty customers
and strong brand name.
- The biggest flower auction
in the world.
Online Shop 1-800- -Franchise Retail Locations -
Not
everyone
7
FLOWERS.COM
are in major markets.
satisfied with their
delivery in time.
-Providing customer service
through a network of home -Poor
agents.
service.
customer
-Brands and diverse array of -High prices.
gifts have kept customers
coming back for more.
- They focused on
California’s
-In the marketing more customers.
than 30 year.
- They have strong
competitors
around the world.
Online
FloraQueen
Shop -They are using high-quality -High prices.
flowers.
- Not everyone
- They control the quality of satisfied with their
the Flower Delivery and delivery in time.
verify by phone each and
every global or domestic
- Poor service.
delivery of flowers.
- Offers florist international -Misunderstanding
delivery with worldwide of clients.
local florist network.
-Also
strong
competitors
- They offer you bouquets,
arrangements, chocolates, around the world.
wines, gift baskets and
company gifts.
From this table we can see, I have identified strengths and weaknesses of competitors. I can say
that “Blooming Flower” shop has similar strengths and weaknesses. All companies are offering
variety and high quality flowers. The companies have strong brand name and loyalty customers.
If we will look on their weaknesses, “Blooming Flower” shop has lower price of product. It's
giving to my company opportunities to attract more clients and to sell with more quantity.
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On my opinion to get great result and to have more loyalty customers “Blooming Flower” shop
should satisfy client’s wishes and needs. My flower shop is giving guaranty for delivery in time.
If order of product will not be delivered in time we will make to client special gift or some
discount. Also in shop will work creative, friendly and experienced staff for floral designing. In
the other hand shop will offer really nice natural product. It is different type of tea and natural
cosmetics.
SWOT Analysis
The SWOT analysis aids in displaying the internal strengths and weaknesses that “Blooming
Flower” shop must address. This allows us to explore the possibilities offered by the company,
as well as potential threats. The company’s strength will help it to succeed. Strengths are
valuable but it is also important to realize to weaknesses the company must address. The
flower shop’s strengths will help it capitalize on emerging opportunities.
Strengths
1. Product- we are offering with high quality, variety and fresh flowers.
2. Сustomer service – our goal is to exceed our customers’ expectations with good quality,
value and professional service.
3. Great floral designer- in our shop works with well qualified and friendly staff, also we have
unique atmosphere for clients.
Weaknesses
Our main weaknesses that we are a new in this industry and our location is not in main street of
Amsterdam. Also in the first year our place for selling is small than in other flower shops.
Opportunities
1. Online shop- our flower shop has website in internet. There our customers can see all
assortments of flower bouquets and plants which we have.
2. Worldwide delivery- in our online shop the clients can order what they want and we will
deliver it around the world.
3. Decoration- also we can help to our customers with decoration special events.
Threats
9
Our flower shop has risk to not cover all expenses on transportation of product. Also our
product depends of climatic condition. We hope that climate will be favorable for our flowers.
"Blooming Flower" shop can have threat like increasing other cheaper competitors. Because of
this we can lose a lot of our customers.
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4. Market Analysis & Marketing Plan
Target Market
For “Blooming Flower” shop, our target market is anyone who is seeking a trustworthy florist
for an event or special occasion. Our prices are a bit lower than local competitors. We hope to
attract customers from several income ranges who are seeking arrangements for occasions
such as weddings, conference, birthday and other.
The demographics of our target market will vary with each month of operation due to different
holidays and seasons. Since most of the customers will be from the different country or cities,
the most popular form of ordering flower arrangements is over the phone or internet. Many of
the customers will receive delivery as a form of pick-up and very few will actually visit our shop.
The target customers will buy flowers on a regular basis, for home decoration. Also, the target
customers are more likely to send flowers to others on special occasions. The clientele seeking
arrangements for weddings will be more common in the spring, summer and fall months rather
than in the winter.
The target customer will spend a range of prices depending on the type and amount of flowers
used. For events such as weddings and birthday, price formats will be discussed with the
customer and will vary depending upon the quantity and style of flowers chosen.
Market potential
The Netherlands remains the center of production for the European floral market, as well as a
major international supplier to other continents. The flower auction at Aalsmeer is the largest
flower market in the world. Since the mid-1970s, the production and distribution of cut flowers
in Netherlands has burgeoned. In 1995, Dutch growers produced over 8 billion blooms and the
flower auctions collectively traded more than 5.4 million guilders (about $3.2 billion) in cut
flowers and potted plants, contributing over 4 billion guilders annually to the Dutch balance of
trade.
Marketing objectives
“Blooming Flower” shop needs to establish itself as a creative source for weddings, conference
and birthday that need weekly flower arrangements. Measurable and specific tasks to be five
orders for weekly deliveries at the opening of the store.
Also “Blooming Flower” needs to establish brand recognition to attract local shoppers who will
eventually visit Shopping Center Overvecht as a destination shopping area.
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“Blooming Flower” shop needs to establish a good reputation as the best online store delivery,
easy way to buy quality flowers and with low price. The specific objectives to have 20 clients by
the time of the online shop's opening.
Marketing strategies
"Blooming Flower" shop intends on using a number of marketing strategies that will allow the
Flower Shop to easily target men and women within the target market. These strategies include
traditional print advertisements and ads placed on search engines on the Internet."Blooming
Flower" shop will take various measures in order to get the word out about the new shop.
Word of mouth is the least expensive way to do this, but we will also use other means. We will
hold the grand opening for customers to see what products we will carry out, what kind of
environment we have created, and what people will work here. We will be placing flyers and
promotional coupons for a free rose throughout the town at local businesses. We will also work
daily ad in the local newspapers, the list of companies in our national directory florist, and
promote our new business through the Internet. Advertising will consist of a newspaper ad for
the grand opening and re- advertises for a month or two after the initial opening. We will be
aired on the radio ad on a local radio station. Flyers will be posted in local businesses
throughout the city. Other limited coupons will be distributed for free bouquet of flowers. Our
advertising budget will be around 4000 euros for the first year. Finally, the "Blooming Flower"
shop intends to develop ongoing relationships with event organizers and wedding that will
outsource floral needs of its customers to the company. Over time, this will be an invaluable
method of obtaining income for the flower shop.
Marketing Mix
Price
Being a very new company in this business and that too with a new territory the company does
not know about the pricing strategy of the competitors. So at the initial level the company will
go for low pricing strategy. "Blooming flower" shop sets standard prices for each product line.
Type of flowers
Price (euro)
Tulips - (50 flowers)
5.99
Red Roses (3)
12
Orchid Plant
20
Vibrant lilies
15-40
12
Bamboo
20-30
Blue Hydrangea
15-40
Calla Lily
30-50
These prices show the quality products at reasonable prices for consumers.
Promotion
We plan to focus our advertising and promotions around the bridal shows and holiday. Form of
advertising used to be the local newspaper and radio ads. We will also feature signs and
advertising banners on display .For wedding shows, we will have tables which will display our
floral arrangements with pamphlets for prices. We will take out ads in the newspapers around
all of the major holidays, especially around Valentine’s Day, Easter, Mother’s Day, and
Christmas. For all events, we hope to promote our free shipping with purchases over 100 euros.
For Valentine’s Day, we will focus on our variety of rose and carnation colors as well as prices.
For Easter, we will advertise our price lilies. For Mother’s Day, we plan on advertising our wide
variety and color of spring flowers. For Christmas, we hope to advertise our seasonal inventory
of poinsettias. We will do these ads for prom and homecoming, as well as major holidays for
our radio advertising.
Product
"Blooming flower" shop is offering variety fresh flowers. Also shop provides various type of tea
from flowers like rose, chamomile, jasmine and other. Finally, our special product is natural
cosmetics from flowers. It is soaps, creams, lotions, shampoo, perfumes and other. This product
is making "Blooming flower" more attractive and helpful for customers.
Sales forecast
The table sales forecast is broken down into three main sources of income:
Tulips – The company anticipates sales of 15 000€ during the first year of operations. Individual
tulips will sell for average of 2.99€ each with cost of sales of 30%.
Flower Bouquets- The company anticipates sales of 110 000€ during the first year of
operations. Flowers bouquets will sell for an average of 30.00€ each with a cost of sales of 40%.
Natural tea and cosmetics- The company will sell other products in shop with anticipated sales
of 10 000€ during the first year of operations with a cost of sales of 40%.
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Additionally, the flower shop will show a cost of sales of 5% of Tulips and Flower Bouquets to
cover shrinkage and spoilage.
The total sales for 1, 2 and 3 year are 135 000€, 165 000€ and 195 000€, respectively.
Table: Sales Forecast
Sales forecast
1 year
2 year
3 year
Tulips
15 000€
25 000€
35 000€
Flower Bouquets
110 000€
120 000€
130 000€
Natural tea and cosmetics
10 000€
20 000€
30 000€
Total sales
135 000€
165 000€
195 000€
Direct Cost of Sales
1 year
2 year
3 year
Tulips
4 500€
7 500€
10 500€
Flower Bouquets
44 000€
48 000€
52 000€
Natural tea and cosmetics
4 000€
8 000€
12 000€
Shrinkage
6 250€
7 250€
8 250€
70 750€
82 750€
Subtotal Direct Cost of 58 750€
Sales
Chart: Sales by year
14
12
10
8
6
Natual tea&cosmetics
Flower Bouquets
4
Tulips
2
0
Year 1
Year 2
Year 3
15
5. Management Plan
“Blooming Flower” shop will be managed by its owner Maria Sliusarenko. Maria Sliusarenko will
be responsible for all administrative and operational aspects of the business. Also Maria
Sliusarenko will handle all the financials for the shops. The other employees that must be
present in order to make this business run are the designers and delivery drivers. One of the
best floral designers, who is a full-time employee will hold a senior position and will be one
delivery driver full time. All other employees below these managerial positions will hold no
authority or make executive decisions. All full-time employees will have access to a benefit plan
that will include the following attributes.
• 3 paid days off for any sicknesses.
• 1 week paid vacation is available after 1 year and will continue until 5 years. After 5 years the
employee will receive 2 weeks paid vacation and at 10 years will receive 3 weeks’ vacation.
• Health insurance will be available.
Personnel Plan
Qualification and training needed to work in the "blooming" as follows: to be a deliverer, one
would need a driver's license. They must also pass a safety course driver. With deliveries made
where the children around him, it is important to flower shop liberators good drivers. Call signs
takers must be good with people. They should be happy and cheerful when talking on the
phone. Potential employees also need to be familiar with computers so they can check online
orders. They need to be trained to use a computer if they do not know how. The floral arranger
will need to be familiar with arts and crafts and have a creative mind in order to fulfill the
customer’s wishes. If a customer comes to make a special request, they should be able to listen
to the customer and try to give them exactly what the customer wants. When business begins
to pick up, more employees will be hired. The owner of "Blooming Flower" would hire one or
two employees to work a maximum of twenty hours per week, depending upon the season.
The pay will start as minimum wage and higher wages will be discussed by the owner
depending on the job being performed. Additional assistance will be needed during the
summer and during the holiday season, the perfect job for a high school or college students.
They should be professional and show a willingness to help businesses succeed, both in profits
and customer service.
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6. Financial Plan
Start-up cost
Funding requirement:
Rent of premise
2 000€
Equipment
3 000€
Product(flowers, plants and other)
7 000€
Redecoration
1 000€
Advertising
4 000€
Other
2 500€
Total
19 500€
Source of funds:
Own funds
9 500€
Bank loan
10 000€
We shall be seeking a 10 year, fixed interest rate loan.
Break-even Point
Profit and Loss (1 Year)
17
18
Cash Flow (3 Year)
19
20
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7. Potential Risks& Contingency Plans
Risk analysis considers critical factors that can lead to a failure of the business concept. Such
factors may include failures in the implementation phase, as well as during operations. Such
potential factors are ordered according to the probability with which they may occur. Shown is
a key factor that led only to failure. Profiles of 10 flower companies with comparable products:
revenue and cost structures that went bankrupt during the last 5 years, as well as analysis of
various research institutes.
1) Insufficient demand. This is the most common cause that leads to failure of the business.
This includes permanently low demand, as well as a temporary drop in demand. Such failures
can also come from external shocks instead of operating deficiencies. Since the expected
frequency of customers during the initial phase is still low critical success factor is to focus
promotional efforts to generate customer loyalty early on, which will help minimize the effects
of fluctuations in demand. It is also important for the future development of floral business.
2) Location and market. Flower business market and choosing the right potential customers is
an important factor and one of the major decisions that affect the future prosperity of the
company. Therefore, careful analysis is required. So many colors enterprises went bankrupt due
to incorrect choice of the market. Often run does not believe that, even when the choice of the
market cannot be wrong in the beginning, he may later become so economic conditions
worsen. This may be due to structural changes or other interest of customers.
The successful operation of a flower shop several factors are critical and central to business
strategy:
• In the flower industry is very important that the client is experiencing a comprehensive and
competent service. This will ensure customer loyalty and optimize profitability in a market that
is very competitive.
• Carefully selected assortment of interesting and profitable products, as well as the selected
choice of new technologies is a potential to gain a competitive advantage over its competitors.
Also a service that is designed to give the customer added value through new services can
justify price premiums.
• One of the most important factors in the flower industry is quality management. Best quality
products and services at a lower cost increases customer satisfaction. Deficiencies in the quality
of service fist drop in demand while good service quality can help create customer loyalty.
• Cost management is a critical success factor for businesses in industries where margins are
low. Computer store planning is an integral part of the management costs.
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