What are the advantages and disadvantages of Coquis buying Belle Fleur?

Advantages of Coquis buying Belle Fleur:

1. Established customer base: Belle Fleur already has an existing customer base, providing a
steady stream of revenue each month.
- The shop has been operating for several years and has a reputation in the community.
- The business is located in a high-income suburb with heavy foot traffic, increasing the
potential customer base.
- Good location: Belle Fleur is located in a good location with high foot traffic. This would give
Coquis a steady stream of potential customers.

2. Immediate revenue and profitability: The shop has been generating an average monthly profit
of $5,000.
- The financial performance documents provided by the Greenhills indicate a consistent
revenue stream from various sources, including online and telephone orders.
- Coquis can leverage the existing revenue to cover operational expenses and potentially
reinvest in the business.

3. Reduced startup challenges and risks: Buying an established business saves Coquis from
the difficulties of starting a new business from scratch.
- She can avoid the initial challenges of setting up a new shop, such as finding a location,
obtaining permits, and purchasing equipment.
- With an established business, Coquis can focus on implementing her vision and making
necessary changes without starting from ground zero.

4. Industry knowledge and experience: Coquis has been working as a florist for six years,
providing her with deep knowledge of the industry.
- Her experience at Belle Fleur has given her insight into the business operations, customer
preferences, and potential areas for improvement.
- Coquis can leverage her expertise to make informed decisions and implement her unique
vision for the flower business.

Disadvantages of Coquis buying Belle Fleur:

1. Conflicting business models: Coquis's vision of personalized, unique flower arrangements

contradicts Belle Fleur's current business model.
- Belle Fleur relies on catalog-based and standardized arrangements, while Coquis aims to
offer customized arrangements.
- Operating with two different business models concurrently can create challenges in
maintaining a consistent brand image and customer experience.

2. Need for rebranding and remodeling: Coquis would need to invest in rebranding the shop,
changing its name to Floral Filosophy, and remodeling the store.
 - Rebranding and remodeling expenses should be factored into the overall cost of acquiring
Belle Fleur.
- These changes are necessary to align the shop's appearance and image with Coquis's
unique vision and differentiate it from the previous ownership.

3. Discontinuing Wireflora services: Coquis plans to discontinue the affiliation with Wireflora,
which provides a significant portion of the shop's revenue.
- Wireflora brings in orders from around the world, increasing the shop's exposure and
potential customer base.
- However, revoking the affiliation with Wireflora would result in the loss of equipment, such as
the POS terminal, and the need to find alternative advertising and promotion methods.

4. Staff training and delegation of responsibility: Coquis aims to empower the staff and delegate
more responsibility, which may require additional training and adjustment.
- The current owners of Belle Fleur assumed most of the management responsibilities, limiting
staff autonomy.
- Coquis would need to invest time and effort in training the existing staff to align with her
vision and ensure consistent quality in the new business model.

5. High purchase price: The asking price for Belle Fleur is $145,000. This is a significant
investment for Coquis.
- Coquis needs to carefully evaluate the financial viability of the acquisition and consider the
return on investment in relation to the purchase price.

6. Advertising costs and self-promotion: Coquis would need to take charge of her own
advertising efforts and allocate funds for marketing.
- The estimated advertising costs are approximately $700

Should Coquis continue to use Wireflora?

Belle Fleur would pay the following charges to Wireflora:

Transaction charge per transaction: $0.20 for each order processed.
Revenue sharing cost: 20% of the revenue generated from each order.
One-time charge: $10,000 as a setup fee.
Monthly charge: $500 for ongoing services.
Year Total Sales 20% Revenue Transaction 0.20 per Yearly Total paid to
shared s trans. charge Wireflora
2016 277918.00 55583.6 3715 743 6000 62326.6
2015 285919.84 57183.968 3894 778.8 6000 63962.768
2014 274358.46 54871.692 3813 762.6 6000 61634.292

Wireflora provides several functions and services to Belle Fleur. Here are some of the key functions that
Wireflora offers:
1. E-commerce platform: Wireflora provides an e-commerce platform that allows Belle Fleur to showcase and
sell their floral products online. This platform enables customers to browse through Belle Fleur's offerings, place
orders, and make payments.
2. Transaction processing: Wireflora handles the transaction processing for Belle Fleur. This includes securely
accepting and processing customer payments for orders placed through the platform. They ensure that the
payment information is handled safely and facilitate the transfer of funds from customers to Belle Fleur.

3. Order management: Wireflora assists Belle Fleur in managing their orders. They provide tools and systems for
Belle Fleur to receive, track, and fulfill customer orders effectively. This may involve order notifications, tracking
numbers, and communication channels between Belle Fleur and their customers.

4. Setup and support: Wireflora assists Belle Fleur with the initial setup process, including onboarding onto their
platform. They provide guidance and support to ensure a smooth integration of Belle Fleur's products and
services into the Wireflora ecosystem. Additionally, Wireflora offers ongoing support and maintenance services
to address any technical issues or inquiries that Belle Fleur may have.

Cost to setup from scratch to

replace Wireflora

POS $2000
Website $1600