Mission Statement

“Provide 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.

City Flower Shop

The purpose of City Flower Shop is to fulfill the demand of Quality Flower.
Keeping in view the importance of this business, we have decided to start this
business. In initial state, we will open our four outlets in different major areas of
Lahore.
Management Hierarchy
 General
Manager
(Main Branch Defence)

Manager Manager Manager

Moden Town Branch M.M.Alam Branch Johar Town Branch
Goals & Objectives
We have divided our goals & Objectives in two parts.

Shot Term Goals

Short term goals consist of one year. As there is no any major competitor of us in
Lahore, 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.

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. In long term goal, 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.
 STRENGTHS:

Strength:
 There are any major competitors of City Flower Shop except one or two.
 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.
 Low cost of production.
 Less management layers.
 Plant located near the market.
 No dependence on producer for supply of flower
SWOT Analysis
 We will use latest technology which will act as competitive advantage for us.

SWOT analysis is done to find out the inner strength and weakness of the
company and external opportunities and threats.
 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.

 THREATS:

 Political & Economical instability of country is a major threat.

 Terrorism
 Potential depreciation of rupee.
 Government taxes and other restrictions
 Field problems ( Insects, Diseases )
 Increase price of fertilizers
 Water supply problem
 Electricity problem
Competitive Advantage
 Current market situation
 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.

Product
The product which we are going to introduce or going to start is a service of
Flower Shop. We will provide different types of flower with variety of choice.

Price
We will follow price penetration strategy to enter into the market. Similarly, we
will offer different price packages & will offer special discount on any special
occasion. The price range of flowers provide by us will be between Rs50-1000
Place
In initial stage, we will open our four outlets in four major areas of Lahore. The
locations which we have chosen have been mentioned below.

1) C Block Market of Model Town

2) Y Block Defence
3) M.M Alam Road
4) Mall Road
Promotion
For any newly established business or well developed business, marketing &
promotion activities are very important. We will promote our business via News
Paper, Posters, Pamphlets, sign board etc.

Market Segmentation
Through marketing segmentation, we divide our market into different segments
depending on the needs and wants of each segment. Currently, we have divided our
market into two segments. The first segment is our direct or final consumer. There
are the people which will directly use our flower. This segment further has been
divided into three sub segments which are 1) Middle Class 2) Middle Upper Class
3) Elite Class. Our second segment is consisting of business class people. This
segment include retailers, restaurants, party caters etc.

Competitors
At present, the roadside flower shops & open flower shops are the only source for
purchasing whatever kind of flowers one wants. There are two main reasons for the
success of these shops. First of all they are strategically located for easy access.
Secondly, they are the only known source for flower sales. People have to buy
whatever they have to offer.
Our competitive advantage is that what ever we will supplied by us, it will be
grown in our own farm and they will be fresh as ever. We will use latest
technology for preservation of flower and our flowers quality & normal price will
act as competitive advantage for us.

Target Market
Target market consists of group of people on which any business focuses. As it has
been mentioned in marketing segmentation, that we have divided our market into
two different segments, we have decided to target both segments. But our major
focus will be on Middle Upper and Elite Class.

Advertisement & Marketing

Advertisement & marketing is use to inform people about the company latest and
existing product and services. We will advertise our new business through many
channels like print media, electronic media etc.

In print media, we will give adds in different local news papers of Lahore like
Daily Express etc.

We will established our website and advertise our business on internet and E-
Marketing will be done to capture more market share. We will also put brochures
and different restaurants and five starts hotels.
Future perspectives
In initial stage, we will try to capture the initial stage of market and will build our
good among them while in future perspective; we will open our more outlets in
other major areas of same city as well as other cities of Pakistan. In initial stage,
we will outsource the flower but if we get the orders for flowers on permanent
base, we will purchase our own land. 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 need the following as
prerequisites for business.

 Land for farming purpose

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

Farm Location
We will have two farms for production of flower. 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. The farm at Lahore would be
supply source of
Gladiolus, Roses, Statice for the shop during winter season & Tube Rose during
summer season. This farm would be actively supplying these flowers from mid of
March to February. 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.
Besides the flower growing area, a little space would be required for post harvest
treatment at both of the farms. The farm near Lahore is bigger because it will
supply flowers during the peak demand season, the winter & the summer seasons.
Flower Planted at Lahore Farm
Flower Planted at Haripur Farm
Life Period of Different Species of Roses
THREATS
Flowers are perishable products with a limited life span. Even if they are treated
with life enhancing solution, their life is limited. If they are not sold in time they
loose appeal and have to be dumped, resulting in economic loss.
Another possible threat is the attack of certain diseases on the flower fields.
Though pesticides are sprayed regularly, yet there is always a chance of their
attack. This could cause considerable and/or detrimental damage.
A distant threat could be the lack of demand either due to excessive supply or
change in fashion. But this is too distant and remote to stop anyone from going for
this project.

Insect Pests and Disease Management

The best way to prevent insect and disease problems is to select plants that grow
well, like Roses, Glad, Tube Rose & Statice. A healthy, actively growing plant is
more resilient to insect attack. The ideal approach is a preventative program.
Control insects early, when they are first detected. Do not wait until a serious
infestation occurs.
In next step, we will recognize the problems caused by insects and diseases. Some
can be tolerated; others will destroy the value of flowers. The more you know
about their life cycles, the more likely you will be able to manage them effectively
with non-toxic methods.

Disease Control
Foliar fungus diseases are the most serious disease problem on cut flowers. If
mildew or other foliar diseases are a recurring problem, it might be wise to
increase the spacing between plants slightly to improve air circulation around the
foliage. Powdery mildew and black leaf spot are two of the most common foliar
diseases. Botrytis attacks flowers during cool damp weather. Improper watering or
frequent rains may cause some root rot problems. These can be minimized by
planting on raised beds.
The best approach to disease control is a preventative program. Manage the crop.
Don’t neglect it. Practice good sanitation; keep the field free of weeds and plant
debris. Adjust planting density for each species to allow sufficient air circulation
within the bed.

Watering to Farm

To maintain floral quality and peak production, the plants must be watered
frequently, sometimes daily with some soil types.
Natural rainfall is neither sufficient nor reliable. Without supplemental watering,
production may not be economically realistic. That’s why, 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. Each floral crop needs year round water
supply on a specific timing.
It may physically damage the flowers, cause spotting on the petals, splash soil onto
the foliage, and promote the spread of disease.

Miscellaneous Cost for Farm

 Watering Cost
 Labor Requirement
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. The distance between the farm and the shop would be almost between
30 to 40 minutes.
The transportation of flowers from Haripur farm to the shop would require some
planning. The wooden crates would have to be transported to Haripur city, from
where buses take cargo directly to Lahore. The best option of transportation
between the farm and Haripur City would be the local public transportation. We
will use local transportation for carriage of flowers from Haripur to flower shop.
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. Average electricity bill
of the shop would be around 10,000 rupees/month.
The consumption of electricity at the farm in Lahore & Haripur would be nominal.
We can assess the electricity charges at the Lahore farms at around Rs
1500/month.
Production Capacity

Production of rose flowers has different seasonal variations. In Lahore, during

November and December, production is on the higher side. January and February
are slow growth period because of winter frost. March and early half of April is the
maximum yield season.
After 20th April till early June there is no yield due to hot blowing winds. From
July till
September, rose is available but the quality is low. Quality starts to improve from
October.
In Haripur farm, the reverse is true for roses. High yield months are during summer
season. Other factors remain the same most of the time.
On an average, one plant of rose flower has an average yield of 50 flowers per
year. Out of these 50, about 10 flowers are rendered useless for commercial usage,
either by man handling or by some disease. Therefore, only 40 flowers per plant
per year are available for commercial sales. Therefore, about 1.1 million rose
flowers would be available for commercial sales from the two farms round the
year.
As far as the gladiola flower is concerned, in Lahore region it is sowed in
September.
Harvesting is after 70-120 days based on various species of glades. Therefore, the
flower is available for commercial sale during the first week of December. At the
time of sowing, a gap of about 15 days is given. Therefore, the sowing continues
till February so that flower is available till March and at times till April.
In Haripur it is sowed in early February so that yield is available from May till
September or even October. Average yield of gladiola flower planted from
imported bulb is
90%. Based on these statistics, about 99,000 gladiola flower stems would be
available for commercial sale from the two farms.
Tube rose planted in Lahore region will be sowed from 15th April till 1st May.
Harvesting is after 60 days. Therefore, the flower is available for commercial sale
during the last week of
June. At the time of sowing, all the bulbs are sowed at once. About 62,000 of both
tube rose
& statice flower stems would be available for commercial sale.
Statice seeds will be planted in Lahore region in September and in
October/November they will be transplanted in the field. Flowers blossom between
March and April
First of all, the available flowers would be used for creating beautiful flower
baskets, bouquets, and bunches and then selling them from the shop. Besides
selling about 25 such arrangements a day from the shop for three hundred & sixty
days a year, 30% of the remaining flowers would be used for direct event
decoration. Remaining 70% of the total production would be sold directly in
‘mandi’. During summer months, the sale is usually slow, whereas, during winter
months, the high season, the sale is at peak on all accounts, including event
decoration.

Projected General Facts & Figure

 Saleable Flowers per Year (Per Acre Production)
 Whole sale & Party Decoration (Per Acre Production)

 Open Market Sale

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

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:
Required investment
To start this business of Flower with four outlets in the above mentioned major
areas with shops on rent base, we need total investment of Rs 16000000 to
17000000. With this amount, we will purchase our equipment to be in agriculture
sector as well as to be use in outlet decoration. We will install water pump,
purchase seeds, and will conduct other miscellaneous expense through this amount.

Initial Investment & Loan

Currently to start this project, we have investment of Rs 13000000. This is the
amount which will be provided by the owner to start this project on small scale
having four outlets of flower shops. As the required investment in this project is
16000000 to 17000000, the remaining amount will be taken as loan from bank. We
will take amount of Rs 4000000 as loan from the bank which will charge as low as
much possible interest.

Repayment Method of Loan

In order to repay the amount which would be taken as loan, we will utilize the
revenue. The income which we will drive from sale of flower will be our major
source for the repayment of the debt.

CONCLUSION
As it has been mentioned in the initial stage, the Flowers are a big part of people’s
lives. Every occasion is celebrated with flowers. Our project of City Flower Shop
will facilitate people in their ceremonies. Our quality service level will encourage
people to get engage with us. As flower is twelve months business, that’s why our
services will be available around the month. We have mentioned our projected
cash flow, income statement as well as balance sheet. Similarly, we have
mentioned our initial investment in the project and amount of loan to taken for this
business. You recommendations and suggestion for the improvement of business
will always be welcomed.