business plan of agribuseness by salar shah and his team

36
Sukkur Institute of Business Administration Business Plan Name of Business Super flower gallery Core Business Values We care for your feelings with nature Team Members |AAKASH AHMED | |SALAR SHAH| MISBAH| AHMED KHAN| JUNAID BHUTTO| A group Business Plan submitted in partial fulfillment of the requirements for the course MGT- AgriBusiness Submitted To: JAVED TUNIO November 26, 2015 Table of Contents

Upload: kumar-sahib

Post on 28-Jan-2016

216 views

Category:

Documents


0 download

DESCRIPTION

Flower gallary agri business plan

TRANSCRIPT

Page 1: Business Plan of Agribuseness by Salar Shah and His Team

Sukkur Institute of Business Administration

Business Plan

Name of Business

Super flower gallery

Core Business Values

We care for your feelings with nature

Team Members

|AAKASH AHMED | |SALAR SHAH| MISBAH| AHMED KHAN|

JUNAID BHUTTO|

A group Business Plan submitted in partial fulfillment of the requirements for the course MGT-

AgriBusiness

Submitted To: JAVED TUNIO

November 26, 2015

Table of ContentsExecutive Summary.......................................................................................................................4

Mission Statement......................................................................................................................4

Goal and Plan.............................................................................................................................4

Business Philosophy...................................................................................................................4

Page 2: Business Plan of Agribuseness by Salar Shah and His Team

Company ownership...................................................................................................................4

Company Location and Scope...................................................................................................5

Product/Service Description..........................................................................................................5

The Opportunity............................................................................................................................ 5

Market & Industry Analysis...........................................................................................................6

Global, National & Local Trends............................................................................................6-7

PESTLE Analysis................................................................................................................7-8

Industry Analysis....................................................................................................................... 8

Porter’s Five Force Model Analysis.......................................................................................8

Market Segmentation & Target Market......................................................................................5

Key Success Factors...................................................................................................................8

Marketing Plan.............................................................................................................................. 9

Situation Analysis......................................................................................................................9

Competitors Analysis............................................................................................................9-10

SWOT Analysis....................................................................................................................... 11

Market Research...................................................................................................................... 12

Marketing Goals.......................................................................................................................12

Marketing Strategy...................................................................................................................12

4P’s.......................................................................................................................................14

Marketing Budget.................................................................................................................... 15

Sales Forecast...........................................................................................................................16

Operational Plan.....................................................................................................................16-18

Management Plan........................................................................................................................ 19

Organizational Structure..........................................................................................................19

Management Team...................................................................................................................19

Financial Plan.............................................................................................................................. 20

Projected Income Statements...................................................................................................21

Projected Cash Flow Statements............................................................................................21.

Pro-forma Balance Sheet..........................................................................................................22

Break Even Analysis..................................................................................................................6

Page 3: Business Plan of Agribuseness by Salar Shah and His Team

Contingency Plan....................................................................................................................23-24

Appendixes................................................................................................................................ 24.

Appendix (A) – Market Survey Results..........................................................................24-27

Appendix (B) – Marketing Material.....................................................................................28

Executive Summary

Flower Gallery is located at Quence road in Sukkur. Flower Gallery has different variety of flowers such as pink, red black and red roses. We do not sell phollon ka har but also bouquet of flowers at special occasions. Flower Gallery also provides services with decoration of wedding homes and birthday parties. The target market of Flower Gallery is from lower middle to upper middle male and female. Total segment of Sukkur is more than 20 lacs. People of Sukkur do not love nature but also want to decorate their rooms with different natural flowers. Generation-Y loves romantic natures and they tend to involve in romantic moments on special occasions. There is no competition on large scale but NizamUddin have certain potential to compete us. But we will attract the customers by lowering price of phoolon ka Haar and bouquet of flowers and decoration per room. We will also sell flowers as brand with packaging.

Page 4: Business Plan of Agribuseness by Salar Shah and His Team

Small Rahri shop have less potential to compete us because they have flower in one quality and in less quantity.

According to sales forecast we have estimated that we have potential to sell PKR 50, 00000 of flowers and services in one year. We have asked from many suppliers that the price per flower is 2.5 of red and pink rose and the price of white and black rose is 3.5 per flower. We have come through the research that the price of one pholon ka har is PKR 30. The price of decoration of wedding per room is PKR 5000. And the price of Bouquet is PKR 300 per.

We have estimated that we will reach the breakeven point within one and half year.

Mission Statement

The Flower Gallery mission is to provide our customers with variety of quality flowers and floral arrangements at a fair price. We will strive to match the expectation that our customers expect from us and our product. We aim to give training our employees with variety of skills to design.

Goal and Plan Sales: To earn 30, 00,000 per year

Marketing: To create awareness of new variety of flowers and new designs of decoration in weddings, engagement, and birthday parties.

Financial: To reach breakeven within 1 half years.

Business Philosophy NATURE FRAGRANSE ROMANTIC

Company ownership PARTNERSHIP

Company Location and Scope

As we are new in the market, so we are going to open outlet at Quence road in Sukkur, we have contract of rent for three years.

Analyzing fully the market, we discerned that in market needs a new venture which provides decoration services. We have fully advantage of opening new concept of business in Sukkur.

Page 5: Business Plan of Agribuseness by Salar Shah and His Team

Product/Service Description We will provide flowers in certain forms. Our core purpose is to decoration wedding homes and birthday parties with different variety of flowers. We will buy flowers from pir jo goth and sawat because we have built contacts with them.

The Opportunity We are going to start the business of flowers gallery. As we know many people are doing this business. Most of the people have very small stall of this business, but few of them have galleries as well. As the green trend is growing day by day, people are interested in natural things.

In many events people are very crazy for rose and different kind of other flowers like valentine day, pilgrimage time, marriages, eid, and on many other events the demand of the natural flowers are at the peak. As I mentioned above people are serving locally but still there is huge gape into the market.

Market & Industry Analysis

Global: The world today is changing at rapid speed, natural beauty of the world affects people preferences and living style. People are turning to more romantic love and romantic weddings.

Love and wedding have been increasing since advent of Prophet Adam and Bibi Hawa in the world. People are crazy for romantic love and want to engage more time in romantic love. When their love reach agreement of marriage, they tend to decorate their homes and wedding halls with variety of natural flowers.

Flower Gallery is one of them which fill need of people with different varieties of flowers. Flower Galleries provide roses and flowers to every lovers, friends and saint.

Flowers are also used for birthday parties, wedding ceremonies, valentine days, returning of pilgrims, going for pray at saint.

Seven continent are crazy for love, marriage and friendship.

Europe is one of them which provides flowers at special occasions like valentine days, wedding ceremonies, and chrisms occasions.

Asia is going to fall in love with natural beauty at more than par. People tend to more romantic love and romantic weddings. Majority of Muslims live in Asia, who go for Hajj and ziarat. After returning from Hajj and while going for ziarat, they welcome pilgrims with roses, spread roses over saint grave. During wedding, Asian people tend to decorate homes with flowers.

We that is why can assess that the demand of flowers, using in weddings for decorating and occasions of valentine days, is inelastic and has been increasing at peak day to day. Increased in disposal income of individual has positive impact of demand of flowers. Peoples are more conscious to natural and lovers of it.

Page 6: Business Plan of Agribuseness by Salar Shah and His Team

Assessing above factors, Super flower Gallery is one of them which fill romantic need of people. Super Flower Gallery is trying to decorate wedding homes with variety of natural flowers with different designs. We have fully confident that our business will bring increasing in share of market. That will lead long run profit.

National: According to national trend people of Pakistan totally different from past years. Day to day preferences of people going to change due to increase in income level. So now a days people moving towards individualism(don’t follow joint family system), short term oriented, mostly people don’t going to take risk but the youth going to take risk and try new and adventurous things, not follow any one they live as they want.

The core activities and services of our business is written below.

Our business is a full-service retail florist selling cut flowers, fresh-cut arrangements, silk and

dried arrangements, dish gardens, and green and blooming plants. We offer a variety of services

such as:

Decorative planning (including a referral service for caterers and musicians) for

conventions, corporate and private parties, weddings, cultural events, and holidays

Standing floral orders for offices and homes

Plant maintenance

Interior and exterior plant scaping

An AFS floral wire service for out-of-town orders.

In today’s world income of people change and due to income preferences of people change so

that’s why people for the status due to one factor change. so that’s why we provide people best

services as they want and decorate all the lawns, homes and farmhouses as they order.

Flower shops belonged to perfect competition and due to this, great market competition arises

and matters of services are only differentiated for the customers to choose yours instead of the

competitors.

Page 7: Business Plan of Agribuseness by Salar Shah and His Team

Local TrendsSukkur’s population being almost equal to half million and with approximately 60% of it being middle-middle, upper-middle and upper class population, opens up a wide potential for a flower gallery business. With more and more karachites turning to be more beauty conscious and the post impacts of flowers gallery on beauty, this business seems to have a tremendous life ahead of it.

The average household size of Sukkur is 6.5 persons/household. Which means, there are approximately 90,000 households in Sukkur at present. As it is that 60% of the population of sukkur forms middle-middle, upper-middle and upper classes; so the total number of middle-middle, upper middle and upper class households is approximately 54000. And if the half of such households goes for 1 event in year made of flowers, entreats Rs 540000000.if the one event price equal to 20000 and the other corporate activities around 50 events generates around Rs 1000000 if event price is 20000. This shows that there is a huge untapped market of this business which if positioned and designed properly seems to be deeply profitable.

PESTLE Analysis:

Political: assessing political factors it affects business in the sense of taxes, incomes and lobbies. There are lack of regulations in system and this may affect directly our business. But there is also positive affect of politics on our business concerning government. Government are less chances to intervene in business because of our business on small scale.

Economic: assessing economics factors, it affects positively on business. Income of people has been increasing, as income increases, people tend to engage more in demand of flowers for use of different activities.

Social: day to day people are very much conscious to nature. For this can affect positively on Super Flower Gallery. As this natural increases health and romantic in people.

Technology: concerning technology, we introduce new maintenance of flowers machine.

Environment: Analysing environment situations, we can bring natural flowers rather than artificial flowers

Industry Analysis If we look at the Flowers Gallery Industry as a whole, we can find good Gallery in Metropolitan cities. However there's no perfect arena in Sukkur. People are not aware about new Designs only a certain niche is available which can be targeted.

Porter’s Five Force Model Analysis

Page 8: Business Plan of Agribuseness by Salar Shah and His Team

Bargaining Power of Supplier: The influence of suppliers on our business is quite high. Since we are not a manufacturing or retailing business, we will frequently buy from suppliers. Initially we would purchase the large quantity of flowers and other stuff which can have a life of 4-5years.

Bargaining Power of buyers: Considering the middle we are targeting, we can assume that the bargaining power of buyers would be high, because of a smaller cliental. However, with passage of time, we can nullify this influence by our marketing strategies.

Threat of substitute products: The major substitute of our business is the metropolitan cities have artificially flowers for designing, even many specific people tend to love artificial but we attract them naturally flowers.

Competitive rivalry: the impact of rivalry are high. Because people are moving on to everywhere. Especially people tend to go where they seek comfort. We can assess that competitors can provide different value proposition and services.

Threat of new entry: The threat of new entry is high in future, but we grab the market share, and we will not allow any new entrant to attract our customers because we will provide customers services with best quality.

Key success factors

Key Success Factors Fresh Flowers. We will provide fresh rose to our customers. Quick services. We will give them quick services in terms of decoration and other orders. New designs. We decorate their marriage halls and houses with new designs.

Availability of different flowers. We arrange different kind of flowers for our customer

Marketing Plan

Situation Analysis

By looking at the market of the flowers we are planning to introduce “designer’s flowers gallery” in Sukkur. Today people are going for new and different things which give the natural sense than the past years. People also involve in these types of activities. In the market there is the huge demand of this but people want awareness and attention of some one. But unfortunately there is no any kind of facility in this type of business. So we provide them different designs with

Page 9: Business Plan of Agribuseness by Salar Shah and His Team

different types of flowers for the wedding ceremony, birthday parties as well as for other events at the reasonable price.

In the first moment we are planning to open our outlet at the quince road sukkur and we contract for the flowers from the gardener of “pir jo ghoth” and different verities of flowers from Sawat. We will provide the discounts to our loyal customers and provide them bunch of lowers as the Eid greetings.

The major issue that we will face is to target our customers through right channel and creating awareness. We can achieve that through our marketing strategies. Prices that we will charge are perception based, which will be determined through our market research. Apart from that, the major challenge is to successfully satisfy our customer which is the best way of marketing.

Competitors Analysis Direct competition

Looking at direct competition, the relatively ratio of direct competition is large, and have affect excessive. These pertain local shops of flowers, and roses. Small Rarhi shops. And NizamUddin Gallery shop.

Local shop: local shops of flowers have covered certain portion of market share in industry. They have effect on our business.

Small Rahri shops: Small Rahri shops have much effect on our business. Their competition tend to lead tough situation. They are in large quantity, they are found everywhere in the industry.

NizamUddin Gallery Shop: this is great competitor in the industry because their awareness is spread in the industry and have large portion of market share in the industry.

Indirect competition

People also tend to move artificial beauty. Artificial flowers have excessive affect our business. These all local shops who provide services with artificial flowers. Nizamuddin Gallery Shop also provide services with artificial flowers to decorate wedding homes.

Artificial Flowers: people with the passage of the time, tend to motivated by artificial things. Artificial flowers shops lead to high competition to our business.

Potential competitors

Assessing the demand for flowers, we can anticipate a few customers in the same industry. Then our real competition may start. For that we have planned to utilize our lead time effectively. The basic competing strategy would be customer relationships. Since we are the only player in the market currently and Nizaumddin Flower Gallery, we will try to maximize our customer retention.

Page 10: Business Plan of Agribuseness by Salar Shah and His Team

Comparative Competitors’ Analysis

Competitive Factors  Nizamuddin Flower Gallery

Local shops Local Rahri shops

Super Flower Gallery

Promotional Activities moderate Low Nil High

Location moderate Low moderate High

Maintenance Low High Low High

Customer Relationships

moderate Low low High

Price Per decorate moderate high nill reasonable

Convenience High Low nill Moderate

SWOT Analysis

SWOT Analysis:

Strength: Weaknesses:

Availability of flowers. Lack of experience. New Designs. Lack of aware nesses.

Page 11: Business Plan of Agribuseness by Salar Shah and His Team

Reasonable price. Lack of network with supplier.Fresh flowers. Lack of Budget.

Opportunity: Threat:

First mover in Sukkur. Seasonal issues.

New Market. Government Regulations.

Natural product. Existing competitors.

Increase in green trend. New competitors.

Detail of SWOT analysis:

As we know that Strength and Weaknesses are the internal part of the company or business. Opportunity and Threat are the external part of the business. We mention some strength of our business like availability of different flowers because many people do not have the different flowers at their shop. We also serve our customers with fresh flowers along with new designs. Our opportunities are very clear that we are the first mover in the market of Sukkur. The green trend is increasing day by day. We are serving our customers with natural product and people are crazy.

In all business there must be some weaknesses and threat. We mention some threat and weaknesses like lack of experience is our weaknesses because we are new in that market. We have limited budget. We are not familiars with the supplier. The people are not aware about our business because we are new. Some threats are also there, like seasonal issues we may suffer because of seasonal issues, like weather conditions. Government regulations is a threat for us because of the inconsistency in legal laws and tenure of the one government

Market Research According to our research we have come into know that there is large demand of flower gallery which provides wedding decoration services and bouquet of flowers and pholon ka haar on the special occasion. The sample of research is in appendix portion.

Page 12: Business Plan of Agribuseness by Salar Shah and His Team

Marketing Goals Will open new outlet after three years in Kherpoor, after three years we will open in Hyderabad.

We will buy plat where we run business permanent.

We will grasp 15 market share within three years.

Marketing Objectives:

1. The first objective is to train employees.2. Create awareness through word of mouth and advertisement.3. Making optimal profit.4. Expansion business.5. Formulate different strategies to compete.

Marketing StrategyWe will use differentiate strategy: we try to provide phoolon ka haar and decoration different than competitor.

Cost strategy: we charge lower prices from customers.

Segment

Geographic Primary: Sukkur City ; Secondary: Its vicinity.

Demographic

Age)

Gender)

Income)

Occupation)

On the basis of demographics, we segment the consumer in

this way:

No matter

Male and female

Mid-range income.

Students or early professionals

Psychographic

Social class) Upper and lower middle class.

Behavioral

Benefits) Enjoyment nature

Page 13: Business Plan of Agribuseness by Salar Shah and His Team

ACTION Plan: We will start to promote our business in order to aware the people of sukkur about our business.

Jan: we will start an integrated promotion by targeting middle class and upper middle class. With the help of designing of natural and fresh flowers people feel sophisticated and elegant environment.

Feb to May: we will start with door to door marketing, printing pamphlets and placing it inside new paper as well as buzz marketing through face book page.

June to Sept: we will focus more on personal selling face to face and tell them how we done all designs and how we done all designs and what was the time it takes. We will focus on customer suggestions.

Oct to Dec: we would smoothly decrease our promotional budget and would start thinking more on designing experts that we could introduce new designs to attract our customers which is indirectly way to increase our sales.

Marketing mix

4P’s Product:

Page 14: Business Plan of Agribuseness by Salar Shah and His Team

We are going to open a flowers gallery. We provide the new design with Fresh and natural flowers to our customer like Marriage Halls, Households. We also provide the fresh flowers in different events like Eid, Valentine day.

Price.

The price of our product depends upon the design and it will be charged as per the quantity of flowers.

We use cost-pricing strategy in which we charge our customers according to the variable and fixed cost with reasonable margin.

Place.

Our location is Quince road Sukkur. Quince road is a commercial place in Sukkur.

Promotion:

As we are new into the market and people are not aware about our business, so initially we promote our business through following channels.

We will use the marketing push strategy.

1. Broachers and Pena flexes: we promote our business through Broachers and Pena flexes.

Social network. We use the social networks for promotion like Face book.

Marketing BudgetBUDGET

November Jan March October Total

Page 15: Business Plan of Agribuseness by Salar Shah and His Team

Pana Flex 30000 10000 40000

Pamphlet 15000 10000 25000

Word of mouth

0 0 0

Total 45000 20000 65000

Sales Forecast

month name weddings phoolon ka har bwquet of flower TOTALJan 5000 55 275000 900 30 27000 200 300 60000 362000FEB 50 250000 1000 30 30000 200 300 60000 340000MAR 40 200000 800 30 24000 220 300 66000 290000APR 25 125000 950 30 28500 250 300 75000 228500MAY 22 110000 1000 30 30000 250 300 75000 215000JUNE 38 190000 3000 30 90000 300 300 90000 370000JULY 46 230000 1500 30 45000 300 300 90000 365000AUG 30 150000 1200 30 36000 100 300 30000 216000SEP 32 160000 4000 30 120000 200 300 60000 340000OCT 20 100000 3500 30 105000 200 300 60000 265000NOV 30 150000 1200 30 36000 100 300 30000 216000DEC 50 250000 2000 30 60000 2000 300 600000 910000

TOTAL 438219000

0 21050 631500 4320129600

0 4117500

Page 16: Business Plan of Agribuseness by Salar Shah and His Team

Operational Plan

Operation Plan

Value Chain Model:

Inbound Activities: The inbound activities to be performed in our vale chain model are the bringing in of

different varties of flowers to our outlet from Sawat and per jo goth. The other part of inbound activities is to order and bring flowers from the big dealer.

Operating Activities: After we have brought in the flowers to our uotlet, we will make Haar, we will also make

design for wedding homes, and our flowers will carried out in boxes for design.

Outbound Activities: After the making haar of flowers, and design different variety we will deliver flowers to

customers and deliver services customers at homes.

INVENTORY: Inventory is the heart of any business, without inventory business cannot do their

business activities. In the start of our business we will purchase the flowers from “PIR JO GOTH” and from “SAWAT”. When there is session of weddings like September, October, and November. In these months session so we will have more inventory as compare to usually. So we plan we purchase from “SAWAT” different types of flowers as well as in bulk quantity. Other wise usually we purchase from “PIR JO GOTH” due to less transportation cost.

Due to storage of inventory we rented an outlet at the quince road sukkur. That outlet will be full air condition because to maintain the freshness of flowers that will also increase the value of our business and we have one manager which keeps the record and timing of order whom we will provide service. We have two to three workers who have experience in the designing they also consider the main part of business because they complete the core purpose of our business.

OPERATIONAL TOOLS AND EQUIPMENT: To run the operations of business, we need some tools and equipment. For our outlet, we

will have furniture like a table and chair for manager and some other chairs for the convenience of customers. Other furniture like some shelf and other tables as well as special boxes for the proper storage of flowers. The other equipments like cutter and other which are used in the designing and a laptop for the manager for the keeping record properly.

Page 17: Business Plan of Agribuseness by Salar Shah and His Team

Perssonel: Genral manager Designer Buyer 1 3 1

We will higher One manager, who will manage all the things like Inventory management, Supervision. He also deall with different suppliers for fresh and flavours. We will give pay initially 20,000 to manager.

Buyer will deal with supplier and buy flowers from Peer jo Goth and some time From Sawat. We will give him salary 12000.

We also have team of designers it contains 3 worker they will work as per order. One of them will be at shop and 2 will go out for work, like decoration of wedding homes and birthday parties. We will give those 10000.

Suppliers, Partners & Customers:

Suppliers: Our main supplier of quality flower are farmers in Peeer jo Goth and Sawat. They have

agreed on terms of supply and quality. More suppliers will be hunted in the fourth month of the operations once the business gets its roots deep enough.

Partners: Our partners are the retail stores. Our sustainability and success depends on their

sustainability and success. So, we regard them as the partners with us in our business endeavours.

Ultimate Customers: Our ultimate consumers are upper middle class and upper class of consumers. So, the

packaging and flower quality is to be set accordingly for them.

Business Transaction Process: After initial sale of inventory, the retail store inventory manager will put an order on

daily basis. As per customer demand, the manager give order employee who buys flowers. For the wedding design, customers can direct phone to manager, and customers can come at outlet and gives order face to face. We have other facility for customers. Customers can put order online at our website, and can ail us for order. The fees of order is reasonable. Per room fees is 4000. Preferences will be given to customers who give first order.

In this way, each business transaction process will be completed.

Page 18: Business Plan of Agribuseness by Salar Shah and His Team

Management Plan

Organizational Structure

Management Team

OWNER

MANAGER

DESIGNER1 DESIGNER2

BUYER

SELLER

AAKASH AHMED

SALAR SHAH

LOCAL LOCAL

AHMED KHAN

LOCAL

Page 19: Business Plan of Agribuseness by Salar Shah and His Team

Financial Plan

Projected Income Statements

SUPER FLOWER GALLERY

LOSS AND PROFIT STATEMENT

FOR THE THREE YEARS  2016 2017 2018

Revenue        

Sales

3,019,000

3,200,000

3,500,000

COGS   250,000

310,000

375,000

Payroll Expenses

Salaries 744,000

780,000

800,000

 Operating Expenses

Depreciation 67,000

67,000

67,000

Electricity 135,000

160,000

166,000

Internet 24,000

36,000

36,000

Maintenance

Page 20: Business Plan of Agribuseness by Salar Shah and His Team

39,000 50,000 60,000

Marketing 65,000

40,000

50,000

transport cost  

300,000

16,000

22,000

Rent Expense 480,000

600,000

660,000

Supplies 32,000

30,000

42,000

Total Expenses

2,136,000

2,089,000

2,278,000

 

EBT 883,000

1,111,000

1,222,000

Tax Expenses 176,600

222,200

244,400

 Net Income  

706,400

888,800

977,600

Projected Cash Flow Statements

SUPER FLOWER GALLERY

CASH FLOW STATEMENT

FOR THERR YEARS  2016 2017 2018

CASH In      

Sales 3,019,000 3,200,000

3,500,000

Investments 2,500,000 -

-

Total Cash-in 5,519,000 3,200,000

3,500,000

 Cash Out      

Cash Paid to Taxes 176,000 222,200

244,400

Cash Paid for Fixed Assets 303,000

-

-

Other Expenses(excl: Dep Exp) 1,305,000

1,242,000

1,411,000

Payroll 744,000 780,000

800,000

Page 21: Business Plan of Agribuseness by Salar Shah and His Team

Total Cash-out 2,528,000 2,244,200

2,455,400

 

Beginning Cash - 2,991,000

3,946,800

CASH in Hand 2,991,000 3,946,800

4,991,400

Pro-forma Balance Sheet

SUPER FLOWER GALLERY

BALANCE SHEET

FOR THREE YEARS

TOTAL Current Assets 2016 2017 2018

cash 2991706 3946800 4991400

inventory 0

total current asset 2991706 3946800 4991400

Fixed Assets

Ac 80,000

80,000

80,000

Accumulated Dep -67,000

-134,000

-201,000

Furniture 50,000

50,000

50,000

Bike 35,000

35,000

35,000

Laptop 35,000

35,000

35,000

generator 50,000

50,000

50,000

Page 22: Business Plan of Agribuseness by Salar Shah and His Team

Freezer 120,000

120,000

120,000

TOTAL Fixed Assets 303,000

236,000

169,000

TOTAL ASSETS 3,294,706 4,182,800 5,160,400

LIABILITIES & OWNER'S EQUITY

Contributed by Owner 1,000,000

1,032,000

1,140,000

Contributed by Investor 1,500,000

1,500,000

1,500,000

Retained Earnings 794,706 1,650,800

2,520,400

TOTAL CAPITAL 3,294,706 4,182,800 5,160,400

Net Income ROI ROE 2016 706,400 2016 28% 2016 21% 2017 888,800 2017 35% 2017 21% 2018 977,600 2018 37% 2018 19%

Break Even Analysis The break even point where profit equals to zero or where loss becomes zero is 22 lacs. We will further define this in presentation.

Contingency Plan CONTINGENCY PLAN

Risk

In our business we have taken certain assumptions, which if not met the business will fail.

Currently we don’t have any direct competition in Sukkur at large svale and we are sure that after the success of business we will experience competition on good scale. In this situation we have planned that we will use our retained income to start marketing at large scale and if it

RATIOS

Page 23: Business Plan of Agribuseness by Salar Shah and His Team

became possible for us we will make understanding with the competitor so that no any of us gets losses.

We have mentioned that our business is largely dependent on the suppliers because we are not growing flowers on our own so if this assumption fails we will not be able to supply flowers to our customers on time. To cope with this situation we will we have already planned that we will not just stick to Khairpur and Faisalabad suppliers but we will continue good relationships other suppliers of Pir Jo Goath and PanoAqil.

In our financial plan we have made sales and revenue projections on the basis of our survey, which is not 100% accurate so if we experienced that we have a very low demand then we will start the perfume manufacturing business which wi ll have Start-up cost of approx. 800,000. The basic reason behind this idea is that we have analysed that there are very less number of business in this category and a huge demand is unmet, which gives us a strength in this locality.

Appendixes

Appendix (A) – Market Survey Results

Sarvey on flowers gallery in sukkur

Q1.On average, how often do you buy flowers or plants?(For yourself or to offer)

Every weekEvery 2 weeksOnce a monthEvery 2 months3 to 4 times a yearLess often

Q2.How much do you spend per year on flowers, plants, etc.?(per year)

Less than 20

Page 24: Business Plan of Agribuseness by Salar Shah and His Team

Between 20 and 39Between 40 and 59Between 60 and 79Between 80 and 99Between 100 and 119More than 120

Q3.What kind of item do you buy?(Tick all that apply)

Cut Flowers (e.g. Roses, Tulips, Lilies etc)Exotic Flowers (e.g. Orchids, Lotus, Anthuriumsetc)Tropical Flowers (e.g. Cosmos pink, blue-passion, African moon etc)Wild Flowers (e.g. Daisy, Foxgloves, Snowdrops etc)Artificial FlowersPreserved flowers / Dried stabilised flowersFlower arrangement (for wedding, bereavement, birth, etc.)Flower BouquetsGreen Plants Flowering/bedding plants

Other, please specify: Q4.Where do you buy mainly flowers / plants?(Tick up to 2 answers).

Flower shop/FloristSupermarketMarketsGarden centre/nursery or DIY store Online flower shops

Other, please specify: Q5.Would a new flower shop/florist opening in your area be of interest to you?

YesNo

Page 25: Business Plan of Agribuseness by Salar Shah and His Team

Q6.What kind of flowers do you prefer?Traditional / classicCreative / original

Q7.What is lacking when buying flowers/plants in a non professional place (eg: supermarkets); that you would expect from a local flower shop?(Please rank from 1 to 4: 1 being your main expectation)

Choice, flowers/plants varietyQuality/freshness of flowers/plantsOriginality, creative ideasTailored offer (the possibility to create your own bouquet choosing the flowers you want)Fair pricesSpecial offers, discountProfessional Advice and Assistance

Other, please specify:

Q8.What would be your main reason for buying flowers at a non-professional place (e.g. supermarket)?

Affordable pricesConvenience (e.g. buy them when doing other shopping)Discounts and special offers (e.g. flowers and a box of chocolates)Don’t have to wait for them to be preparedI don’t buy flowers in non-professional place

Other, please specify:

Q9.How often would you go to this local flower shop?Every week

Page 26: Business Plan of Agribuseness by Salar Shah and His Team

Every 2 weeksOnce a monthEvery 2 months3 to 4 times a yearLess often

Q10.Would you be interested in a "weekly flower bouquet" delivered to your place/residence for less than 100?(A different fresh bouquet of flowers every week to make you happy)

Very interestedInterestedNot very interestedNot interested at all

Q11.Have you ever heard of preserved flowers / dried stabilized flowers?

YesNo

Preserved flowers / dried stabilised flowers definition

 

It is about freshly cut flowers that undergo a process in which the flowers absorb the preserving ingredients used combined with color enhancers that are safe, nontoxic, and harmless. This allows the flowers to retain their moisture and keep in a permanent state of youth for years (2 to 5 years).

Q12.Would/do you buy this kind of preserved flowers?YesNo

Appendix (B) – Marketing Material http://sayedsalar.wix.com/bloomsflowersgallery

Page 27: Business Plan of Agribuseness by Salar Shah and His Team