Mission Statement

³Provide superior quality of services to our customer and facilitate them according to their occasion´.

Introduction of the Business
Flowers are a big part of people¶s lives. Their beauty and color allows us to convey our messages perfectly get-well soon for our sick friends and family, congratulatory messages to a newly promoted colleague, condolences to a grieving family, and to express our love to another person. Every occasion is celebrated with flowers. Or even without an occasion. Recent trends indicate that majority of those who buy flowers buy it for themselves. The American Floral Endowment Consumer Tracking Study conducted in 2000 showed that about 67 percent buy flowers for themselves, and only 33 percent buy it as a gift. It is thus no wonder that flowers have become big business. If you love flowers and have innate artistic ability in creating wonderful floral arrangements, you may consider starting a florist shop. Environmentally sound production techniques, increased farm diversification, and increased Farm income is basic parts of sustainable farming systems. Cut flower production and Marketing offers both small and large-scale growers a way to increase the level of sustainability on their farms. The tremendous variety of plants that can be grown as cut flowers allows growers to choose those which are well-adapted to the farm site and grown without large offsite inputs. This variety also makes diversity in both production and marketing possible. And the high value of cut flowers can increase farm income. Cut flower harvesting is gaining popularity in Pakistan. This sector is attracting not just men but a lot of women into this business as well. Women are entering this field, thinking it is an easy and part time business. But once they are engaged in this work, they realize that it is a full time job. Although a cut flower farm is a profitable and attractive venture, the grower is still not rewarded properly in financial terms for his/her work. Either the middleman or the retailers make the profit. Retailers enjoy the maximum margin.

As there is no any major competitor of us in Lahore. Management Hierarchy General Manager (Main Branch Defence) Manager Moden Town Branch Manager M. that¶s why we have established out primary goal to capture the maximum attention of people in initial stage and try to capture maximum market share. .M. we will open our four outlets in different major areas of Lahore.Alam Branch Manager Johar Town Branch Goals & Objectives We have divided our goals & Objectives in two parts. In initial state.City Flower Shop The purpose of City Flower Shop is to fulfill the demand of Quality Flower. Shot Term Goals Short term goals consist of one year. Keeping in view the importance of this business. we have decided to start this business.

In initial stage we will focus on providing information to the target market segment and persuading them to get services from us and in later stage. we will expand our market share. . Long Term Goals Our long term goals consist of next five years plan. we will expand our market level and will open new outlets in other areas of Lahore as well as we will out outlets in other major cities. In long term goal.

STRENGTHS: Strength:  There are any major competitors of City Flower Shop except one or two. Less management layers. . Plant located near the market.SWOT Analysis SWOT analysis is done to find out the inner strength and weakness of the company and external opportunities and threats.  12 months or round the year business  All flowers will be naturally grown  High quality of flower will be most important.  We will use Cold storage  Large setup with four outlets in major areas of Lahore. No dependence on producer for supply of flower  We will use latest technology which will act as competitive advantage for us.     Low cost of production.

WEAKNESSES:  Lack of Capital  Lack of Trained Staff  Lack of Research & Development department  Lack of Related Business Knowledge .

OPPORTUNITIES:  Government¶s small business supportive policies are great opportunity to rapidly grow business.  As there is no any major competitor of City Flower Shop. . it is a golden opportunity for us to capture maximum market share.

Diseases ) Increase price of fertilizers Water supply problem Electricity problem .THREATS: j Political & Economical instability of country is a major threat. Government taxes and other restrictions Field problems ( Insects. j Terrorism j j j j j j Potential depreciation of rupee.

We will provide different types of flower with variety of choice.M Alam Road Mall Road . Product The product which we are going to introduce or going to start is a service of Flower Shop. 1) 2) 3) 4) C Block Market of Model Town Y Block Defence M. Price We will follow price penetration strategy to enter into the market. The price range of flowers provide by us will be between Rs50-1000 Place In initial stage.Competitive Advantage y Current market situation y Our plans & structures Marketing Mix Marketing mix consist of four P¶s which are 1) Product 2) Price 3) Place 4) Promotion The detail of these four P¶s has been given below. Similarly. we will open our four outlets in four major areas of Lahore. The locations which we have chosen have been mentioned below. we will offer different price packages & will offer special discount on any special occasion.

We will promote our business via News Paper. People have to buy whatever they have to offer. Our competitive advantage is that what ever we will supplied by us. Currently. we have divided our market into two segments. restaurants. party caters etc. that we have divided our market into two different segments. the roadside flower shops & open flower shops are the only source for purchasing whatever kind of flowers one wants. First of all they are strategically located for easy access. we have decided to target both segments. This segment further has been divided into three sub segments which are 1) Middle Class 2) Middle Upper Class 3) Elite Class. marketing & promotion activities are very important. they are the only known source for flower sales. we divide our market into different segments depending on the needs and wants of each segment. We will use latest technology for preservation of flower and our flowers quality & normal price will act as competitive advantage for us. But our major focus will be on Middle Upper and Elite Class. This segment include retailers. sign board etc. As it has been mentioned in marketing segmentation. The first segment is our direct or final consumer. There are two main reasons for the success of these shops. Competitors At present.Promotion For any newly established business or well developed business. Secondly. Market Segmentation Through marketing segmentation. Target Market Target market consists of group of people on which any business focuses. . Our second segment is consisting of business class people. it will be grown in our own farm and they will be fresh as ever. Posters. Pamphlets. There are the people which will directly use our flower.

We will established our website and advertise our business on internet and EMarketing will be done to capture more market share. We will advertise our new business through many channels like print media. We will also put brochures and different restaurants and five starts hotels. we will give adds in different local news papers of Lahore like Daily Express etc. In initial stage.Advertisement & Marketing Advertisement & marketing is use to inform people about the company latest and existing product and services. Future perspectives In initial stage. we will open our more outlets in other major areas of same city as well as other cities of Pakistan. we will try to capture the initial stage of market and will build our good among them while in future perspective. In print media. electronic media etc. The purpose for outsourcing is to reduce the fixed cost in initial stage. Prerequisites for Business In order to start the business on proper scale. we will outsource the flower but if we get the orders for flowers on permanent base. we will purchase our own land. y y y y Land for farming purpose Four major location for outlets Transportation Agriculture requirements . we need the following as prerequisites for business.

as products would b e sold. The shop will be divided into two parts. to buy tools and to make the cash counter. new ones would be made to fill the empty space on display. To open any outlet. The interior decoration of each cost will cost about Rs. After sorting. we need 300 square feet shop for proper establishment of out shop. . new flower baskets.Process Flow Chart Land for Outlets We will open our four outlets in four major area of Lahore. The front part will serve as display area and the back part of the shop will serve as store & receive area where flowers will be receive and stored.250000. bouquets and bunches would be made everyday and then displayed for sale. The area behind partition would be about 100 square foot. this amount would be spent to create an aesthetic look. We will obtain shop on rent. to install a wash basin behind partition.

One farm is near Lahore (Mahmood Booti / Burki Area) and the other one in Haripur. The basic advantage of having a farm at Lahore is that the temperature/weather conditions are feasible and frost is relatively less as compared to its other neighboring areas. Besides the flower growing area. The farm near Lahore is bigger because it will supply flowers during the peak demand season. Roses. The other farm in Haripur would also be used for supplying Glads & Roses during summer months & it would be supplying flowers from April to November. This farm would be actively supplying these flowers from mid of March to February. .Farm Location We will have two farms for production of flower. the winter & the summer seasons. The farm at Lahore would be supply source of Gladiolus. a little space would be required for post harvest treatment at both of the farms. Statice for the shop during winter season & Tube Rose during summer season.

Flower Planted at Lahore Farm .

Flower Planted at Haripur Farm .

their life is limited.Life Period of Different Species of Roses THREATS Flowers are perishable products with a limited life span. yet there is always a chance of their attack. If they are not sold in time they loose appeal and have to be dumped. Though pesticides are sprayed regularly. . A distant threat could be the lack of demand either due to excessive supply or change in fashion. resulting in economic loss. But this is too distant and remote to stop anyone from going for this project. This could cause considerable and/or detrimental damage. Even if they are treated with life enhancing solution. Another possible threat is the attack of certain diseases on the flower fields.

and promote the spread of disease.Insect Pests and Disease Management The best way to prevent insect and disease problems is to select plants that grow well. That¶s why. It may physically damage the flowers. Tube Rose & Statice. The ideal approach is a preventative program. Improper watering or frequent rains may cause some root rot problems. we will use both the farms watering would be done with the help of tube well (diesel) as for most of the areas canal irrigation is not sufficient. Powdery mildew and black leaf spot are two of the most common foliar diseases. it might be wise to increase the spacing between plants slightly to improve air circulation around the foliage. The more you know about their life cycles. others will destroy the value of flowers. actively growing plant is more resilient to insect attack. Do not wait until a serious infestation occurs. the plants must be watered frequently. Manage the crop. like Roses. cause spotting on the petals. Adjust planting density for each species to allow sufficient air circulation within the bed. the more likely you will be able to manage them effectively with non-toxic methods. production may not be economically realistic. Control insects early. we will recognize the problems caused by insects and diseases. Practice good sanitation. A healthy. Each floral crop needs year round water supply on a specific timing. splash soil onto the foliage. The best approach to disease control is a preventative program. Botrytis attacks flowers during cool damp weather. In next step. Without supplemental watering. These can be minimized by planting on raised beds. Don¶t neglect it. Some can be tolerated. when they are first detected. . sometimes daily with some soil types. Glad. keep the field free of weeds and plant debris. Disease Control Foliar fungus diseases are the most serious disease problem on cut flowers. Natural rainfall is neither sufficient nor reliable. Watering to Farm To maintain floral quality and peak production. If mildew or other foliar diseases are a recurring problem.

Miscellaneous Cost for Farm y Watering Cost y Labor Requirement .

The transportation of flowers from Haripur farm to the shop would require some planning. .Fertilizer Requirement for Each Farm (Per Acre) Transportation Transportation of flowers from Lahore farm to the shop would be carried out by a Suzuki van.000 rupees/month. The consumption of electricity at the farm in Lahore & Haripur would be nominal. Electricity The major consumption of electricity would be at the shop where light and air conditioner would run constantly for at least 8 hours a day. The distance between the farm and the shop would be almost between 30 to 40 minutes. from where buses take cargo directly to Lahore. We can assess the electricity charges at the Lahore farms at around Rs 1500/month. Average electricity bill of the shop would be around 10. We will use local transportation for carriage of flowers from Haripur to flower shop. The wooden crates would have to be transported to Haripur city. The best option of transportation between the farm and Haripur City would be the local public transportation.

only 40 flowers per plant per year are available for commercial sales. Flowers blossom between March and April . about 99. Based on these statistics. High yield months are during summer season.1 million rose flowers would be available for commercial sales from the two farms round the year. Other factors remain the same most of the time. About 62. one plant of rose flower has an average yield of 50 flowers per year. in Lahore region it is sowed in September. At the time of sowing. the reverse is true for roses. January and February are slow growth period because of winter frost. Therefore. March and early half of April is the maximum yield season. rose is available but the quality is low. Harvesting is after 70-120 days based on various species of glades. all the bulbs are sowed at once. the flower is available for commercial sale during the first week of December. In Lahore. Statice seeds will be planted in Lahore region in September and in October/November they will be transplanted in the field.000 gladiola flower stems would be available for commercial sale from the two farms. At the time of sowing. about 10 flowers are rendered useless for commercial usage. a gap of about 15 days is given. Out of these 50. about 1. Tube rose planted in Lahore region will be sowed from 15th April till 1st May. either by man handling or by some disease. Therefore.Production Capacity Production of rose flowers has different seasonal variations. Therefore. From July till September. In Haripur it is sowed in early February so that yield is available from May till September or even October. On an average. the sowing continues till February so that flower is available till March and at times till April. As far as the gladiola flower is concerned. Harvesting is after 60 days. Quality starts to improve from October. After 20th April till early June there is no yield due to hot blowing winds. In Haripur farm. production is on the higher side. the flower is available for commercial sale during the last week of June. during November and December. Therefore. Average yield of gladiola flower planted from imported bulb is 90%. Therefore.000 of both tube rose & statice flower stems would be available for commercial sale.

the sale is usually slow. Projected General Facts & Figure y Saleable Flowers per Year (Per Acre Production) y Whole sale & Party Decoration (Per Acre Production) y Open Market Sale . whereas. the sale is at peak on all accounts. Remaining 70% of the total production would be sold directly in µmandi¶. Besides selling about 25 such arrangements a day from the shop for three hundred & sixty days a year. including event decoration. During summer months. the high season. and bunches and then selling them from the shop. 30% of the remaining flowers would be used for direct event decoration. the available flowers would be used for creating beautiful flower baskets. bouquets. during winter months.First of all.

Financial Analysis Budget (Projected Requirements) In order to start the business of Flower shop. advance payment of rent. decoration of shops. we need capital of Rs 16000000 to Rs 17000000 for four outlets in different major areas of Lahore. to full fill the requirement of Agriculture sector etc. purchase of transportation. This amount would be spent on obtaining four shops on rent. The break up investment regarding each outlet has been given below. .

Projected Cash Flow In order to start any business or make any investment. the projected cash flow is very important. Following is the projected cash flow of one outlet of City Flower Shop for first two years. Cash Flow Statement: .

Cash Flow (Continue) .

Projected Income Statement: .

Projected Balance Sheet: .

The income which we will drive from sale of flower will be our major source for the repayment of the debt. purchase seeds. Our project of City Flower Shop will facilitate people in their ceremonies. Similarly. the Flowers are a big part of people¶s lives. As the required investment in this project is 16000000 to 17000000. and will conduct other miscellaneous expense through this amount. We have mentioned our projected cash flow. Initial Investment & Loan Currently to start this project. we have mentioned our initial investment in the project and amount of loan to taken for this business. With this amount. we need total investment of Rs 16000000 to 17000000. income statement as well as balance sheet. that¶s why our services will be available around the month. You recommendations and suggestion for the improvement of business will always be welcomed. CONCLUSION As it has been mentioned in the initial stage. We will take amount of Rs 4000000 as loan from the bank which will charge as low as much possible interest. we have investment of Rs 13000000. we will purchase our equipment to be in agriculture sector as well as to be use in outlet decoration. Our quality service level will encourage people to get engage with us. we will utilize the revenue. Every occasion is celebrated with flowers.Required investment To start this business of Flower with four outlets in the above mentioned major areas with shops on rent base. As flower is twelve months business. This is the amount which will be provided by the owner to start this project on small scale having four outlets of flower shops. Repayment Method of Loan In order to repay the amount which would be taken as loan. . We will install water pump. the remaining amount will be taken as loan from bank.

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