Flower Carnival:

A Business Plan
on Flower Shop
 Business Plan on a Flower Shop
Course: Introduction to Business
Submitted To:
Mrs. Nur Nahar Yesmin
Lecturer, Department of Management, Faculty of Business
University of Dhaka

Submitted By

Hasan Mohammad Faisal ID- 3.14.28.010

Md. Mymenur Rahman Mohobbot ID-3.13.24.014
Md. Abu Hena Mostafa Kamal ID-3.13.24.034
Shajed Rahman ID-3.16.33.031
Md. Iftekhar Hossain ID-3.14.28.052

Date of Submission: 3.12.16

 Executive Summary

This report is intended to present a business plan on flower shop business.

In this report, we have touched all the areas of business plan and tried to
give detailed description about the procedure of setting up our flower shop.
The name of our Flower shop is “Flower Carnival”. In this report, we have
tried to present all the major components of the business plan, the
marketing, financial and managerial plan. The marketing plan consists of
the marketing strategy and the 4PS. The Financial plan presents the
estimated costs and expected revenues. Last but not the least; managerial
plan actually describes complete operational plan and also the
organization’s policy as a whole. Throughout this business plan, we
revealed the most important aspects of a business venture and also went
through a life time experience.
Table of Contents
INTRODUCTION 1
Type chapter title (level 2) 2
Type chapter title (level 3) 3
Type chapter title (level 1) 4
Type chapter title (level 2) 5
Type chapter title (level 3) 6
Introduction
A business plan is the blueprint for any future business venture; it is the framework upon
which a business is established. So, it is a guideline for all future business actions.
Regardless of any business nature, it is very important to make e proper and detailed
business plan.

The business plan generally covers the marketing plan, financial plan and operation plan.
Marketing plan includes the marketing strategy, the description of marketing mix and also
the marketing objective. The financial plan includes the financing sources, the amount of
capital, the allocation of capital for various activities and it also includes a break even
analysis or a projection of future sales that how the total investment will be covered up.
Then the operational plan, which includes the administrative and selling activities and the
required cost behind these activities.

The three sections described before are the core areas of any business plan but according
to the nature of the business plan or the criteria of the business plan , more parts can be
added or the core parts can be modified little bit but the main theme will be the same.

We are here to present our business plan which is about floral business, opening a flower
shop in Shahbagh. In our business plan, we would be covering the elements: The
company name, Company mission, Nature of the business, Legal form of the business,
Marketing plan, financial plan and Operational plan.

The Company

Our business is a flower shop business in the capital city of Bangladesh. The name of our
shop would be “Flower Carnival”.

Vision

The vision of our business is to establish our self as a prominent and an unique flower
shop in terms of floral design and to capture the flower business in Bangladesh & become
the highly rated flower shop within the next 5 years. .
Mission Statement

We believe that flower is one of the most beautiful elements of nature, keeping this belief
in mind we want to come to this business to enhance the beauty of flowers by providing
our customers an innovative presentation of flowers. We will be serving our customers
quality flowers, floral products and creative decorations at a reasonable price.

Our missions are,

 To sell flower. The flowers we will sell, meets the highest standards of quality,
freshness and seasonality.
 To have every customer who comes through our doors leave impressed by our
product and excited to come back again.
 To create and maintain a shop that is comprehensive and exceptional in its
attention to every detail of operation.
 To provide all who work with us a friendly, cooperative and rewarding
environment which encourages long- term, satisfying, growth employment?
 To keep our concept fresh, exciting and on the cutting edge of the hospitality and
entertainment industry.
 To use our shop to improve the quality of life in the Shahbag region.

Goals:

Our goals are-

 To sell 8000-10000 tk & to capture 100-150 customers daily.

 To make a good impression of our shop, we will hire experienced employees.
 A well-known & experienced (5 -10 years) designer will be hired to meet the
highest quality of bouquet.
 To keep a good relation with the customers, we will provide better services.

Type of Business

The nature or type of the business can be classified from two points of views. Firstly, one
type can be defined as what strategic choice the business is going to choose. From the
strategic choice view point, the business ventures are of three types : Scratch, Buy-out
and Franchising.

Another classification of business is based upon the legal form of the business. The legal
form of business classifies business in three types: Sole proprietorship, Partnership and
Company.

Strategic Choice

The strategic choice of the businesses is of three types: Scratch, Buy-out and franchising.

Scratch:

In scratch the business is started from the beginning, here totally new venture is
established without any previous foundation. The scratch business most often brings new
ideas, brings huge scope for innovation and also brings the scope to present the business
upon the entrepreneur's wish and thoughts. Through the scratches the society gets new
ventures and the business industries are also expanded and get new competitors which are
vital for healthy competition and survival.

Buy-out:

In buy-out, an already established business is bought rather than starting totally a new
one. In case of buy-out, there is already a structure available, a proven method and a loyal
customer base is present but it may bring also the risk of negative reputation of the
previous entrepreneur.

Franchising:

Franchising is a continuing relationship between the franchisor and franchisee in which

the sum total of the franchisor's knowledge, image, manufacturing and marketing
techniques are supplied to the franchisee for a consideration. Thus, franchise is an
agreement between buyer and seller that permits the buyer to sell the product or service of
the seller. In case of franchising, the franchisee is quite dependent upon the decision of
the franchisor and has the obligation to give the franchisor a royalty.
The Strategic Choice of our Business

From the three available strategies, we have chosen the Scratch strategy. We chose
scratch because here we will have full scope for innovation and we will have full
independence and autonomy for decision making.

If we want to go for buy out, then firstly the cost would be higher for us as we all are
students, then the already established business have some high expectations which we
may not fulfill at the beginning and may create a burden on future profit. One most
crucial thing is, if the already established business has any bad image then it will be
transferred to our business. These are the reasons for which we did not select buy-out
strategy.

Then if we want to go for franchising, then firstly we need high capital to buy the
franchise and setting up it in appropriate manner. Although the franchising will bring a
high brand value, will create a very sophisticated image but at the same time it will bring
huge dependency upon the franchisors. In case of franchising, the franchisees have to
share the profit with the franchisors and also need to follow the rules and instructions of
the franchisors strictly. So, these are the reasons that we chose scratch over franchising.

Legal Form of Business

Businesses have three legal forms. The businesses can be Sole proprietorship, Partnership
and Company.

Sole proprietorship:

Sole proprietorship is the business which is owned and controlled by one person only.
The proprietor is the only decision maker here and he has the full right and autonomy
regarding any aspect of the business.

Partnership:

Partnership is the relation between persons who have agreed to share the profits of
business carried on by all or any of them acting for all. ( Indian Partnership Act, 1932)
So, the partnership is the form of business, in which two or more than two people forms
an agreement to share the risk and gain of the business. All the partners receive profit
percentage according to their amount of investment.

Company:

A company is an artificial person being created by the law that has an existence separate
and apart from its owners. In other words, a company is an artificial person created by
law, with a distinctive name, a common seal and perpetual succession of member . It can
sue and be sued in its own name.

The Legal Form of Our Business

We will be choosing partnership as the legal form of our business. We will choose
partnership because, we four people are going to form this business and at initial stage we
cannot make so large investment. Considering the number of founders and other facilities
we chose partnership. Partnership is the business which is very easy to form as like
proprietorship and has the scope to share the burden and liability together with the
partners. Although the individuals have the unlimited liability but they have the chance to
share responsibilities and have the chance to complement each other. Partnership is the
business which brings various qualities of the entrepreneurs and if any of them has any
lacking then the other has the scope to cover that up. Then, in case of decision making the
partners all together can reach to a logical one. Considering these crucial facts, we
decided to form partnership.

Partnership Agreement

1. The agreement is made within the following five persons,

 Hasan Mohammad Faisal

 Md. Mymenur Rahman Mohobbot

 Md. Abu Hena Mostafa Kamal
 Shajed Rahman
 Md. Iftekhar Hossain
2. The type of the business is a Flower Shop with total amount tk.6 lac.

3. The amount of investment by each partners are equal.

4. The profit and loss will be equal.

5. Each partner can draw 65% of their income and remaining 35% will go to retained
earnings.

6. The important duties of the partners are,

i. Justice, Faithfulness: True accounts, Full Information: Partners are bound to
carry on the business of the firm to the greatest common advantages, to be just and
faithful to each other, and to render true accounts and full information of all things
affecting the firm to any partner or his legal representative. Sec-9
ii. Equality of losses: Subject to any contract to the country, partners are bound to
pay the losses of the firm equally. Sec- 13(B)
iii. No private benefit: A partner cannot use the partnership properties directly or
indirectly for his own benefit.
iv. NO secret profit: If a partner carries on any competing business of the firm, s/he
shall account for and pay to the firm all profits made by him on the business. Sec-
16 (B)
v. Unlimited liability: Every partner is liable for the acts of the firm done while s/he
is a partner. The liability is joint and several. Sec-25.
7. Decision making for every possibility will be done by Sifat-E-Sattar , Managing
Director of our flower shop. But, every partner has some right to act on behalf of the
firm. She has express and implied authority.

8. Each partner has a chance to write down, the name of his or her authorized nominee
(Wife, husband, children, or third party). If anyone become disabling or incase of
death, the authorized people will get the amount of the invested money. As well as
this contract will be broken down. The third party will not be treated as a partner.

9. If anyone become accuse of doing a bad situation, s/he must be punished based on the
intensity of the impact. If it is high, s/he should be expelled from the business and this
contract will be isolated.

10. Any partner, who wants to leave, has the right to transfer his ownership to another
person, who is capable enough.

11. The rights of partners, and the relations of partners to one another, are determined by
the agreement of the partners.

12. Conduct of business: Every partner shall have the right to take part in the conduct of
the business – section 12 (a).

13. Equality of profits: The partners are entitled to share equally in the profit earned.
-Sec.13 (b).

14. Every partner has some right to act on behalf of the firm. She /He has express and
implied authority.

15. A partner has the right to get the firm dissolved under appropriate circumstances.
Upon dissolution, the partners have the right to get accounts of the firm and surplus
assets according to their shares.

16. Right to carrying on a competing business: By a special agreement, an outgoing

partner can be prevented from carrying on a similar business within a specified period
or local limits.
17. Right to share profits after retirement: If after retirement, the continuing partners carry
on the business of the firm with the property of the firm the outgoing partner is
entitled to get share of profits or 6% per annum of his share of the property of the
firm, at their option. Sec-37.

18. Flower shop’s partnership agreement will be registered by the authorized register.

19. Before doing this, we will complete the licensing requirement by the concerned
authority.

20. All sorts of product’s price of our flower shop will be enlisted to sales tax as far the
requirements of government regulation.

21. All individuals of this partnership business are liable for payment of income tax by
maintaining government regulations in regarding sector.

The Team:

Our team is consisted of five members: All of us are contributing equally to the business
thus the profit sharing will also be at equal proportion.

Methodology:

This is a business plan to establish a flower business. Now a day, flower business is a
popular business in Bangladesh. Flower business is also a profitable business because
people use to visit flower shop in every special day of his/her life. Our business plan is
prepared by the queries of several flower customers & other shop owners. Some surveys
have been conducted and some interviews were taken.

Market and Industry

Flower is the symbol of beauty and serenity. It is the only entity which enhances beauty
of anyplace where used. The magnificent creation of Almighty, flower can purify the
heart of human being and encourage to be simple and calm like nature. Flowers have been
regarded as an embodiment of human taste and aesthetics. This unique and unparalleled
nature of flowers has given rise to its commercial transaction all over the world. People
purchase flower in various occasion.

Keeping the facts described above, we have chose this business sector. In our flower shop
business, we will be providing fresh flowers, flower bouquets, floral jewelry, floral
decoration and also event arrangement services. Customers seeking a wide range of floral
needs, from simple boutonnieres, bouquets and centerpieces to a full-on bower of flowers
at their wedding ceremony site and towering displays at the reception site.

In general, the target customers of our business would be, students, young stars, event
managing organizations, customers seeking for decorating service for personal programs
and socio cultural programs. In Bangladesh, the flower business is quite established. The
market is quite competitive as many other flower shops are there who are providing
trendy decorations and nice presentations of flowers. Then we are going to locate at
Shahbagh where already there are a couple of flower shops so we need to shape our plan
carefully to attract our target customers properly and to cope up with the competitors
effectively.

Ours business is going to face a tough competition as there are almost 1000 flower shops
in Bangladesh and in the Dhaka city the number of innovative and aristocrat flower shop
is also increasing. Although there are threats but the main advantage is that we will be
located at Shahbagh which is the center of the city. So, from there we will be able to
attain a huge number of customers.
Market Research and Analysis
As we are going to establish our flower shop at Shahbagh , we went through our market
research there. We visited all the shops there interviewed the shop keepers to know that
what resources and strategies we need to start and operate the business. The process of
market research has some following steps:

Defining the Purpose of the research:

The market research has been done to understand the nature of the market and
competition and to understand that what features will make our business a success.
Depending upon the market research, the objectives of a business are set.

Data Collection:

In data collection, both primary and secondary data were collected. We emphasized most
on primary data and for this we went to the flower shops at Shahbagh.
Primary Data:

To the shop keepers of Shahbagh, we asked several questions regarding the capital and
operational requirement of the business. The questions we asked at the interview were:

i. What is the initial investment amount?

ii. How much is the monthly rent of shop?
iii. From which places flowers are supplied?
iv. How much is the purchasing cost of flowers?
v. From which countries flowers are imported?
vi. What is the import process for flowers?
vii. How much is the employee salaries/wages?
viii. How much is the sales revenue?
ix. What is the main earning source?
x. Which is the main season for making profit?
xi. How much is the yearly profit?
xii. How the flowers are preserved?

Analyzing and Interpreting Results

After the interview of the shop keepers we were able to remove lots of ambiguities. After
completing the research, we understood that the capital would vary upon the size of the
business and shop. The starting capital has a range and according to our ability we can
make the investment. The least amount of capital needed is 5 lac taka . We came to know
that, what are the source of collecting flowers and who are the key suppliers. We knew
that the center of the flower production in Bangladesh is Jessore and besides Jessore,
other crucial parts are Jhinaidaha, Savar and Kaliganj. To keep our cost low, we have
decided to bring flowers from Savar as it is the nearest place from Dhaka.
Marketing Plan
Defining the Business Situation

SWOT analysis is the way, from which we can judge our present situation and can also
predict the future directions.

 SWOT Analysis
 Strength Weakness

Threat Opportunity

 Strengths
a. We have sufficient employers to operate our flower business.
b. We will hire well known designer to provide best quality to the customers.
c. Our service charged is lower than the others service charge.
d. One of our members is highly trained in marketing expertise which will helps us
to focus our shop to the customers.
e. We are focusing on high quality bouquet items with high quality raw materials;
this is one of the strengths of our flower business.
f. We have home service facilities.
g. We also have security camera in our shop.

 Weakness

a. We have insufficient money to operate our business.

b. We have short space, not enough places to parking
c. Our business partners are also related to study, that’s why they cannot give
sufficient time to our business.
d. We do not have training facility for our employees.
e. As the product is perishable so there is a chance of inventory loss
f. The techniques of flower preservation is not so updated
g. Limited flexibility in pricing
 h. Limited physical showrooms

 Opportunities:

a. People have a general weakness or soft corner for flowers

b. Increasing demand of floral products
c. Seasonal demand, wedding season brings a boom in business
d. Scope of different cultural programs
e. The business environment has a positive synergy
f. Market can be hugely captured through online
g. A crowded place due to Offices, Hospitals, Schools, Universities etc.

 Threats:

a. Price inflation
b. Insufficient Electricity and water
c. Political instability
d. Huge number of Shop in Shahbag

Marketing Strategy
Defineing Marketing Mix

Marketing mix is the set of controllable, tactical marketing tools- product, price, place,
promotion that the firm blends to produce the response it wants in the target market.
Product

Product Part includes all the crucial components of tangibility and attractiveness of the
product. The product part describes the variety, quality, design, features , warranty, brand
name, packaging and services.
In case of our product, the variety describes that how much product categories we have.
Mainly five types of product and services: flower, flower bucket, floral product, artificial
jwellary and decorational services.

The quality of the products will be highly maintained, we will always try to provide fresh
flowers and in case of jwellary and accessories we will try to use trendy and classy stuffs.

Attractive design and features will be maintained, our product is such where too much
classification is not possible but there can be a difference in terms of presentation and we
will focus on that. In decorational services there will be several packages.

We will try to establish our flower shop as a brand and for this, from the beginning we
will try to shape our brand.

The packaging is most important in flower business because attractive decoration of

flowers will enhance the beauty of it. We will concentrate a lot and will take help from
our designers to present the single flowers, buckets, garlands and jwellaries with lucrative
wrapping and presentation.

Price

Price is the charge that customers are going to provide us for our service. There are
several priceing strategies by which we can determine the price of our product. These
strategies are: cost leadership, cost plus pricing, differentiation strategy, break even
pricing, Schimming pricing, competitive pricing and market penetration pricing.

Our pricing strategy would be cost plus pricing and competitive pricing , as there are
many competitors so we have to be careful. In case of decorational services the pricing
 strategy would cost differentiation as we are offering different packages.

We will keep discount offer in peak seasons and on special occasions which will attain
more customers.
Most of the transactions will be held on cash but for large orders institutions we will
allow credit with a down payment and the full payment should be made during 15days.

Place

1. Our shop will be located at Shah bag , Dhaka-1207. Because most of the school,
university, banks, hospitals, shopping malls situated here nand nearby. Also Shahbag is a
commercial area & many companies are situated here. The transportation facilities are
also easy in here.

2. We are taking rent of 300 sqft area for our shop.

3. The inventories will be kept in our shop, we will keep separate place to contain certain
amount of inventories. In order to preserve the flowers, we will be using only water and
that’s why we will not hold our inventories more than 2days.
4. Work forces are also available here.
5. We will not face any problem to connect with the power/ water supply, sewerage system
in shahbag. Even more we will provide uninterrupted power supply backup.
6. The flowers will be also collected from Shahbagh as this the place for wholesale
purchasing of flowers.
7. For distribution and raw material collection, we will use a covered van.

As our business is Shahbagh based, the orders will be distributed from our outlet and we will
keep home delivery services too. Orders will be taken also by online, from our facebook
page.
The inventories will be kept at kawran bazar, thus can be easily transferred and in our shop,
we will keep separate place to contain certain amount of inventories. In order to preserve the
flowers, we will be using only water and that’s why we will not hold our inventories more
than 2days.
Promotion

We will be using different advertising mediums. The advertising mediums will include :
 Campainging
 Direct Marketing
 Printed advertisement
 News paper
 Social media
 Business / visiting cards

Personal Selling:

Personal selling is the personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationship.
In personal marketing, customer’s preffered characteristics and requirements are
fullfilled. So, it is a process of customization. We will offer personal selling.
After designing the marketing mix, we have to do several more steps. These are:
 Designing responsibility for impementation
 Budgeting the marketing plan
 Implementation and monitoring of the marketing plan.

Managerial plan for of the shop

Work policy:

Work policies are one of the important things, which the organization should consider
very carefully. There are certain factors that should be included in work policies that may
affect employees. Due to poor labor law and increasing number of welfare organizations
in the country, the workers sometimes want to fulfill unfair means. This is why nowadays
the organizations signed the Job Specification and Job Description so that they are totally
aware of the situation and later they can’t raises their voice. The purpose of policy is to
provide guidelines for administering a modified duty program.

We have considered certain areas in which we will reveal details of our work policy.
They are as follows

 SAFETY ACCIDENT PREVENTION:

1. First aid box will be there for small injuries.

 COMPENSATION:
The most important and the most vital work of a manager are to plan the compensation
program of an organization’s employees. Job evaluation is the process whereby an
organization systematically establishes its compensation program. In this process, jobs are
compared in order to determine each day’s appropriate worth within the organization.

Employees exchange work for rewards. The most important reward and indeed, the most
obvious is money. But not all employees earn the same amount of money. This
differentiation is explained by the compensation program.

The goal of compensation administration is to design cost-effective pay structure that will
attract, motivate, and retain competent employees. The structure should also appear fair to
employees. We will give two types of daily rate. One is Tk 300/500 per day for new
inexperience employee and another is Tk 1000 per day for experienced employee.

Employee Benefits

When an organization designs its overall compensation program, a critical area of

concern is what benefits to provide. Today’s workers expect more than just an daily wage
or a salary; they want additional considerations that will enrich their lives. These
considerations in an employment setting are called employment benefits.

Employee benefits have grown in importance and variety over the past several decades.
Once perceived as an added feature, employee benefit administration has transformed
itself into a well thought-out, well organized package. Employers realize that such
benefits affect whether or not applicants accept their employment offers, or once
employed, stay with the organization. Benefits are, therefore, necessary components of an
effectively functioning compensation program.

For the employees at our flower shop, special benefit programs will be provided. The
benefit programs are explained below:

a. Worker’s Compensation - This is for the workers at the shop. If the worker is hurt
at the time of working in the shop, then any loss to the worker will be borne by the
organization. The injured employee will be compensated either by monetary
allocation or by payment of medical expenses.
b. Sick leave – This benefit will provide the opportunity for employees to take sick
leave and also get paid for their absence.
c. Vacation and holiday leave – This will be available for the employees if they are
with the organization for a specified period of time. Common practice would be to
relate the length of vacation to the length of tenure and job classification in the
organization.

 TIME OFF:
If a worker is suffering problems related with family, in that time he can’t work properly.
If we allow him/her a couple of days leave the result will be better. In this way, we will
not lose skill workers and win the heart of the local people.

 GRIEVANCE:
We will arrange a session every Friday for workers, where they will disclose their
problems without any type of hesitation. This will help the management to know what
their workers have in their mind and by this way they can reduce the gap or
miscommunication between them. This sort of open discussion will help the workers to
feel that they are part of the organization.

 TERMINATION:
The management will inform the concern worker a month ago that his job will be
terminated at a said date. The worker will receive a month or half a month salary
depending on the situation in which they will be terminated.
Staffing plan:

One of the very critical elements for our business is Staffing plan for our business
successive. Without staff there is no project.

The list of required number of employees along with their designation, salary structures,
required qualifications and experiences are given required qualifications and experiences
are given

Designation No. of Monthly Salary in Total in

Person Taka (Taka)

Managing Director 1 15000 15000

Assistant manager 1 10000 10000

Designer 2 8000 16000

Asst. designer 1 6000 6000

Service Boy 4 4000 16000

Driver 1 5000 5000

Guard 1 2000 2000

Total 11 70000

Financial Plan
Financial plan is the blueprint of funds inflow, outflow, current position of funds an also
the future cash projections.

 Sources of Funds:

 Initial Investment : 600000

 Contribution of Each Partner: 120000

 Financing Source:
  Internal- Personal Funds

 External- Loan from IDLC & BRAC Bank Ltd

 Uses of Funds:

 Advance Payment for Shop: 300000

 Van: 50000

 Laptop : 50000

 Set up cost 100000

 Supporting Materials : 20000

 Promotional Cost: 30000

 Reserve: 50000

We have conducted market survey where we came to know about the prices. Depending
upon that we have made a rough revenue plan for the flowers. So, the price of some
selected flowers would be:

Flower Bundle/pcs buy Sell

Rose 1/100 300 tk local 500 tk
China : 2000 tk China 4000 to 5000 tk

Rojonigondha 1/100 500 -600tk 800-1000 tk

Gadha 1/500 300 tk 400 tk
Chandromollika 1/100 12-10 tk /pc 18-20 tk
Gladiolas 1/50(Pink, white color) 10 tk/pc =500tk 15-18 tk
Limitations:

There may be some limitations behind this report. These are –

1. There was lack of information which we searched.

2. The Managers/owners did not share enough information with us.
3. The market survey is not sufficient to justify the total market condition of Dhaka
city.
4. Our survey is limited in Shahbag area.
5. Most of the time we estimated the prices, costs, which may differ.

Conclusion
Throughout this business plan, we went through the practical experience of making an
initiative of business and it has nurtured our concepts of doing business and also
developed and interest for entrepreneurship among us.