BUSINESS PLAN

flicit

Student

Flicit
Route de Cannes
Grasse, France 06130
+33 2 78 46 51 09
felicite.fleur@gmail.com
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Table of Contents
1.0 Executive Summary .......................................................................................................................... 3
1.1 Problem ......................................................................................................................................... 3
1.2 Solution......................................................................................................................................... 3
1.3 Market........................................................................................................................................... 3
1.4 Competition .................................................................................................................................. 3
1.5 Needed Funds ............................................................................................................................... 3
2.0 Products and Services ....................................................................................................................... 4
2.1 Problem Worth Solving ................................................................................................................ 4
2.2 Our Solution ................................................................................................................................. 4
2.3 Business Assessment .................................................................................................................... 4
2.4 Roadmap/Future Plans.................................................................................................................. 4
3.0 Market Analysis Summary ............................................................................................................... 6
3.1 Market Segmentation .................................................................................................................... 6
3.2 Target Market Segment Strategy .................................................................................................. 6
3.2.1 Market Demand ......................................................................................................................... 6
3.2.2 Market Trends ........................................................................................................................... 7
3.3 Key Customers ............................................................................................................................. 7
3.4 Future Markets.............................................................................................................................. 7
3.5 Competition .................................................................................................................................. 7
3.5.1 Our Strengths ............................................................................................................................. 7
4.0 Strategy and Implementation Summary............................................................................................ 9
4.1 Marketing Plan ............................................................................................................................. 9
4.2 Sales Plan ...................................................................................................................................... 9
4.3 Location and Facilities ................................................................................................................. 9
4.4 Technology ................................................................................................................................... 9
4.5 Equipment and Tools .................................................................................................................. 10
4.6 Milestones................................................................................................................................... 10
4.7 Key Metrics ................................................................................................................................ 10
5.0 Company and Management Summary ............................................................................................ 11
5.1 Organizational Structure ............................................................................................................. 11
5.2 Management Team ..................................................................................................................... 11
5.3 Personnel Plan ............................................................................................................................ 11
6.0 Financial Plan.................................................................................................................................. 13
6.1 Revenue/Sales Forecast .............................................................................................................. 13
6.2 Projected Profit and Loss............................................................................................................ 13
6.3 Expenses ..................................................................................................................................... 13
6.4 Projected Cash Flow ................................................................................................................... 14
6.5 Projected Balance Sheet ............................................................................................................. 14
6.6 Business Ratios ........................................................................................................................... 14
7.0 Appendix ......................................................................................................................................... 15
Appendix 1. ...................................................................................................................................... 15
Appendix 2. ...................................................................................................................................... 15
Appendix 3. ...................................................................................................................................... 15
Appendix 4 ....................................................................................................................................... 16
8.0 Works Cited .................................................................................................................................... 17
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1.0 Executive Summary

1.1 Problem
Many events lack decoration and many times people dont know what to purchase a loved one
for a birthday or to congratulate someones success. From this, uncomfortable situations may
rise and therefore one should always have a go-to gift as for an example flowers. Flowers
always have a positive connotation and can lighten the mood with their smell, color and beauty
and there is therefore a constant demand for it. They are fantastic gifts to give a friend, parent
or partner as well as decorate your home or a venue for an event with. In general flowers always
brighten the mood and greet you with a fresh and welcoming whiff as you walk in the room.

1.2 Solution
Flicit offers not only flowers, bouquets and gift cards, but other than the other flower stores
in the market, we also offer decorating services. The decorating crew can arrive at any venue
to decorate for the event in whatever style the customer pleases. Many of these events can be
life changing as for an example a wedding and we therefore find it in our best interest to make
the best of such a special day for our customers.

1.3 Market
For the reason that flowers fit almost any occasion and there are special days in the year as for
an example Valentines day or Mothers day or even just a friends or relatives birthday when
flowers are the main focus. Flowers go well with any gift and the demand for flowers is
therefore very stable and constant becoming higher during certain seasons like Valentines. We
focus on mainly women as flowers have a very feminine connotation, however there is also a
selection for males. We try to target everyone in our store and therefore find it very important
to make sure that any customer will be satisfied with the products and service we provide.

1.4 Competition
There is one large competitor in the field which is Monceau Fleurs. This is a well-known flower
store which operates mainly online but they have a physical store as well. There are both
advantages and disadvantages that must be considered. Monceau Fleurs has no decorating
service or put a lot of thought into their physical store at which we then have an advantage.
Flicit however does no delivery services which Monceau Fleurs on the other hand does. We
are however further looking into this and will pursue a delivery service at a later stage of our
business.

1.5 Needed Funds

We will need to take out a loan of 310,000$ so that there is enough fund available to start up
the business and pay for the expenses such as transport, rent, advertisement and payroll. We
would be able to pay back this loan in three years if not less as this loan is strictly only for a
strong and steady beginning for Flicit.
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2.0 Products and Services

2.1 Problem Worth Solving

There is always a demand for flowers because they are a great way to improve interiors and
venues and add life and color to any kind of event. Every flowers color brings a different
feeling and mood to create a desired atmosphere. Our staff is educated on this and will decorate
the venue for any event to create the mood most suited for the event of course bearing in mind
the preferences of our customers.

2.2 Our Solution

This company will grow flowers in a greenhouse situated in Grasse, France. We will then sell
the flowers amongst cards in a small store in the city. We will also supply the perfumeries in
Grasse with flowers for their scents and perfumes. Another service we conduct will be floral
decorations around France. People can hire our trained employees to attend special events or
ceremonies and decorate the lounge or area with flowers of the customers liking and choice
and make the event even more special.

2.3 Business Assessment

Different from other flower stores we will be the main supplier for a large perfume factory in
Grasse, which is a city in France known for their perfume industry. We also provide decorating
services which is once again different from other slower stores. These services and the flowers
we sell in the store will be high quality which makes the price go up as well. We will grow our
flowers in green houses and transport a new batch into the store every day to ensure that the
flowers we sell are fresh. The decorating crew will travel around France and help decorate and
provide fitting flowers for any kind of event. A disadvantage we have is that we are located in
a smaller city so the amount of customers may be limited.

These products and services will be achievable as we will have around three people working
in the store on daily shifts working 12 hours a day with breaks in between. There will be a crew
of 2 people working in the decorating department who will be sent to venues and events when
hired to decorate. There will be 2 people working in the green houses, growing the plants and
taking care of them. These employees will be either locals, or foreigners who are in desperate
need of a job. This way we reduce unemployment as well as help any refugees to be employed.
The price of cut flowers will be around 5$ as it includes the transportation of the flowers, the
soil and water and any other tools needed to grow flowers. The decorating services will cost
around 60$ per hour plus the amount it costs to travel to the venue and the price of the
equipment and the flowers.

2.4 Roadmap/Future Plans

In the future we aim to spread our business across Europe and possibly to other continents to
get the chance of working with different plants which grow in different climates. We aim to
start small with only one small shop in Grasse, France supplying for the Grasse perfumeries
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which are known globally. We then plan to expand to neighboring countries and at a later state
to different continents.

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3.0 Market Analysis Summary

3.1 Market Segmentation

Flicit is situated to a wide and diverse market including women and men, the young and the
old. It also provides various products and services for many different occasions as for example
weddings, birthdays, graduations, funerals or any other event the customers are attending and
need either a gift or decoration.

3.2 Target Market Segment Strategy

The targeted market is mainly women however we focus mainly on events for which flowers
are an appropriate gift and we therefore have sections in the store suitable for various events.
Flowers in itself are considered to be very feminine and therefore not many adjustments are
required for the promotion of this business. The market is not divided by the customers but is
instead segmented by the types of events. The first target market are the customers which come
to the store to purchase the goods first hand. There will be flowers and cards suitable for
weddings, birthdays, graduations, special days such as Easter, Valentines, Mothers, Fathers
and Childrens days. These themed flowers and cards will be separated in the store so that it is
easier for the customer to choose whatever they desire. Along with the themed items, there will
also be regular and neutral flowers which the customers to purchase and perhaps stylize their
own bouquet with. These events and occasions were taken from suggestions in a survey sent
out to the habitants of Grasse.

The second market is the perfume factory on the same road as this flower shop. To them we
supply the flowers which they then take the scent from and use it to create their perfumes. The
flowers which they desire will be transported freshly to the perfume factory with trucks,
straight from the green houses.

Lastly there is a target market of customers which may be situated in greater distances from
the store to whom we can still send our decorating crew to decorate for any events. This service
is made accessible to our market through our website: www.felicitefleur.com . Our services are
described and advertised here and the contact to our crew is also given. They are available to
the customers service eleven hours a day however they must be booked at least two weeks
prior to the event.

3.2.1 Market Demand

The market for flowers is quiet constant every year. There is and has been for the past years, a
high demand for flowers as they are an ideal gift for many occasions. Only 6.25% of the
surveyed people have never been to a flower store, whereas the remaining 93.75% have been
and see purpose to it. These results show that there is a constant demand for flowers and this
store will therefore benefit from this high demand. There are always occasions arising for
which flowers are suitable gift and the demand therefore never drops completely. During the
winter there is less demand however, there is still a need and therefore our greenhouses operate
as well during the winter.
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3.2.2 Market Trends

There are natural and obvious increases in the demand when certain times of the year come up
as for an example Mothers day when the demand increases by 25%-30%. These increases in
demand are present during any special festive occasion and Flicit will therefore be prepared
with themed bouquets to satisfy this elevated demand on flowers. The market in Grasse is
growing as the population is as well and therefore the demand will also rise.

3.3 Key Customers

Our key customer is the perfume factory located on our streets. Even if business from the locals
isnt good, our main source of income will still be the perfume factory to which will provide
flowers for the scents in the perfumes. The business is therefore very reliant on this source of
income all year round.

3.4 Future Markets

We plan on expanding our market to other countries around Europe and possibly other
continents as well. We also aim to pursue creating chains around the world located in more
urbanized and populated places as is for an example the airport where people wait at the arrivals
and can buy flowers for the arriving relatives or friends.

3.5 Competition
There are a few competitors in this field, our largest competitor being Monceau Fleurs. This is
a company which provides mainly transported goods as in they provide delivery services. As
of now, no delivery services are planned in Flicit which puts us to a slight disadvantage.
However, Monceau Fleurs does not have a physical store and they operate only online. This
reduces the likely customers to accidently find the store. Of course, if the customer is further
away from the location of a store, delivery is very effective and we plan to look into it further
along the development of the market.

3.5.1 Our Strengths

Flicit supplies the Grasse perfume factory with scents as Grasse is known for its perfume
production and our store is located beside the perfume factory. We also provide cheaper
bouquets and flowers in our store, mainly taking in the fact that no transportation fee is
included. This is an advantage because customers are generally drawn to cheaper goods.

We also provide decorating services which no one else in the field is doing. Our decorating
crew is experienced and have a qualification is interior design so this service is provided with
high quality. However, the quality of our flowers are very much the same as the gardening
strategy used is similar to all strategies across the world. The flowers are handled with care and
precision to have the highest quality possible.

In summary, both of the companies have certain advantages and disadvantages. There are other
smaller businesses as are corner flower stores however as they are very small and located in
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areas in Grasse which are not as populated, there is no large significant advantage. Monceau
Fleurs has an advantage of including delivery services in their business which Flicit does not
do however, at a later stage of the business it may be considered. Other than that, the fact that
Flicit has decorating services, cheaper goods still with high quality and supplies the perfume
factory which it is located next to with goods, also makes this flower store a possible tourist
attraction.
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4.0 Strategy and Implementation Summary

4.1 Marketing Plan

There are many occasions throughout the year which require purchasing a gift for someone,
and flowers are always a go to option. Therefore, a flower store is very practical and will
definitely help people in need for gifts for special events. Many gatherings and parties also lack
decoration which is why we also provide decorating services within our business.

To have customers though, advertising will be required. Our website : www.felicitefleur.com

will help bring awareness to our store however further advertisement will be required.

We will create leaflets which we will ask students or other people in want of a side job to
distribute these pamphlets in malls which are usually packed with potential customers. These
pamphlets will also be displayed in tourist centers as well as the perfume factory at the front
desk. Another place we will have pamphlets will be in front of churches and cemeteries as
those are two places where people may be interested in buying flowers. We will also hang
small posters around such areas to have a constant advertisement when nobody is present to
hand out flyers.

4.2 Sales Plan

There will be special promotions on high demand occasions such as mothers day, valentines
day, Easter and graduation season and we will give a free flower to any customer whose
birthday it is. Of course they will be required to provide evidence of this and on that account
they will receive a free single flower of their choice. Special prices will be set during the high
demand seasons to make effective turn over that highly contributes to the yearly income and
to achieve the yearly target. On mothers day we will have a 10% discount on any flower
bouquets, on Valentines day there will be a buy two get one for free deal for all the roses in
the store. During Easter, flowers will be 5% off and during graduation season there is a 40%
discount for all students, meaning anyone still studying in high school. These promotions will
help attract customers and increase the revenue.

4.3 Location and Facilities

Our store is located next to the Grasse perfume factory, which is in the city, it will be more
accessible and therefore easier for customers to come. Our location is therefore very suitable
as it is easy to get to. Our store will be medium sized, perhaps 6x8m, aesthetically pleasing
with a very eye catching entrance. Located in the outskirts of the city will be our greenhouse
where we plant the flowers which are then transported to the store in the city as well as the
perfume factory located adjacent to the store.

4.4 Technology
There will be surveillance cameras located in the store, monitoring the entire department in
case of thefts for insurance. A computer and cashier will also be used in the stores to record
the amount of income and in the office above the flower store, once again computers will be
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used to design advertising, do the accountancy, plan seasons, for the decorating crew to plan
their dcor using advanced software to do so etc. We will also have one truck for the
transportation of the flowers from the green house to the store and one vehicle for the transport
for our decorating crew to travel to different parts of France and provide their decorating
services.

4.5 Equipment and Tools

In the green houses we will have shovels, hoses, watering buckets, rakes, hoes, hand trowels
and cultivators, dibbers, fertilizers and soil as well as seeds. All of these tools are needed to
grow flowers well and have high quality products. In the stores ribbon, scissors, wrapping
paper and tape will be required to tie the bouquets together, wrap the flowers or gifts and pursue
any additional preparation for the bouquets flowers and gifts.

4.6 Milestones
After three years of launching this business we aim to have repaid the bank the loan we take
and make a respectable profit every year. This would be a huge milestone for the company and
business to not be in loan to anyone and become an independent business.

4.7 Key Metrics

The key metrics of this business will be if we make sufficient profit and dont go into negative
figures once the loan is paid, our employees are paid, all the equipment is taken care of and the
flowers are grown and transported. If we manage to take care of all these aspects and still end
up with a profit, we will be ensured that the business is growing and working.
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5.0 Company and Management Summary

5.1 Organizational Structure

There are several people working in Flicit which are distributed across many different jobs.
There is a management team, a few employees selling the goods in the store, the decoration
crew, drivers and the gardeners working in the green houses along with a supervisor managing
the gardeners. All of our employees are either locals or people in need of a job as are for
example refugees. We try our best to employ those who desperately need a job to reduce
unemployment.

5.2 Management Team

The management team consists of the business owner who is also the shop manager and the
green house supervisor. These jobs will be allocated to experienced workers in the business
industry so that all the work being done is dont effectively and efficiently. The business owner,
myself will overlook all the actions that take place in the market and make sure that everything
is on track. I will also take on the shop manager who makes sure that there are enough goods
in the store to be sold and that everything from customer service to announcing any changes or
adjustments that need to be made or passing on a message from any other part of the
management. The supervisor in the green house is present to ensure that the production is
steadily increasing, record the production and to give any orders which come from the
management department about change of demand of a certain type of flowers or any other
message coming from the management team. Finally, an accountant will be contracted to
ensure that everyone is being payed the correct amount and to keep track of all the finances
and see what is being spent for what purposes. This is a vital position so that it is made sure
that enough profit is being made over the years.

5.3 Personnel Plan

In the store, there will be one employee and the shop manager/owner selling the goods to
customers everyday including weekends for 12 hours a day, taking shifts as they decide
themselves. They will be paid individually according the amount of hours they work in the
month. In the second floor of the store an office will be located where alongside the
management team, the decorating crew of 2 people will be working behind the desks planning
and designing dcor and possibilities for the events which they are booked for. They work in
the field, physically decorating the venues, and also plan the decorating and the setting. These
people are educated in the field of interior design so they can provide the best outcomes. They
will drive themselves to these events and transport all the equipment they require to fulfill the
customers needs and requirements. The working hours are the same as for the people working
in the store.

In the green house, 2 gardeners will be employed. Once again they work for the same amount
of time as the other employees only that they must not attend work during weekends. One of
the gardeners will also be the driver will drive the goods down from the green house to the
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store and the perfume factory once at the end of each week so that the store has enough goods
to sell on the upcoming week as well as so that the flowers dont go bad.

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6.0 Financial Plan

Through tables which can be found in the Appendices we managed to calculate and estimate a
profit, the payroll, sales and any additional costs within the business for the following three
years. It is predicted that Flicit will need 54,899$ to operate in the first year, 54,565$ for the
second year and 54,206$ for the third year. These figures decrease because the commercial
loan decreases as we pay a part of it off each year. However as can be seen in Appendix 1.
without considering the Other expenses, the amount will increase from year to year starting
with 40,400$ to 41,636$ to 42,910$ because the business will be growing annually and an
increased amount of money is required to improve our facilities and equipment. Advertisement,
insurance, legal and professional services, machinery, maintenance, supplies and utilities are
all included in this operational cost.

6.1 Revenue/Sales Forecast

The sales forecast which shows how many units of a product is predicted to be sold, in the first
year, is 116,075 which would bring gross margin of 596,235$ out of which all the expenses
must be paid off. Out of this sales forecast we can predict the estimated income for the first
three years of starting the business which can be seen below. We will start off by making
596235$, then increasing to 626,047$ and finally having 688,651$ worth of income.

6.2 Projected Profit and Loss

In one year of proceeding in this business we plan to have a profit of 87,084$ out of which we
still need to pay taxes. As seen in the
Income in the First Three Years Appendix 2. our profit increases each
year for the first three years. In the
700000
second year we predict to have a
Anual Income($)

650000 profit of 92,482$ and in the third year

600000 we will have a profit of 122,804$.
This is great for our developing
550000
1 2 3
business so that we can invest in
Years better facilities and improve our
business and expand to reach our
goals.
6.3 Expenses
We require 310,000$ to start up the business. This money being transferred in will be used for
renting land and vehicles, getting the technology and equipment which is needed for gardening,
decorating and computer work in the office. The money will also be transferred to the accounts
of our employees. The full time employees being the management team, shop keeper and the
gardeners will be payed 25$ for one hour. The decorating crew who are only employed half
time will get a pay of 28$ per hour. This pay will be increased by 5% for the second year and
another 5% the third year. A more detailed chart can be seen in Appendix 3.
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6.4 Projected Cash Flow
The income will come from the goods we are selling and the services we provide. We will
charge 5$ for one cut flower of which we plan to sell 111,100 pieces on average throughout
the year. Flowers which are still planted in the soil cost around 60$ per piece and we plan to
sell on average 530 of these in our first year. The dcor service costs 60$ for one hour and the
crew was estimated to work 2,980 hours in one year. The dcor sold in the store is 15$ a piece
on average and it is predicted that we sell 935 pieces in the first year. Finally, we sell
accessories as are for an example pots or vases for the flowers and plants, costing 15$ a piece
with an estimate of 530 pieces sold in the first year. A more detailed and monthly version can
be found in Appendix 4. The money being transferred will therefore come from the money we
make by selling our goods and services.

6.5 Projected Balance Sheet

Flicit has assets and inventory such as the gardening tools, the gardening land and the green
house as well as the equipment used in the office and shop and of course the plants, flowers
and dcor itself. These are all items into which the company transferred the cash and got these
things for the equivalent value instead.

However, the company also still owes money in cash. A liability this company has would be
the car and shop lease as it is being rented. Every month cash is transferred out of the company
to pay the rent on these two possessions. However, the largest liability this company has is the
loan from the bank which we pay off bit by bit as business will increase.

6.6 Business Ratios

We aim to have the loan we take from the bank to start our business repaid at least in three
years time and to have profit throughout the whole year and not having any loses. Once this
is achieved we will be a balanced out company without any debts and we can then grow steadily
and independently.
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7.0 Appendix

Appendix 1.

Appendix 2.

Appendix 3.
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Appendix 4.
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8.0 Works Cited

"Florist Business Plan." Bplans,

www.bplans.com/florist_business_plan/market_analysis_summary_fc.php. Accessed

27 Mar. 2017.

"Flowers and Their Uses." Pro Flowers, 24 Oct. 2011, www.proflowers.com/blog/medicinal-

flowers-and-uses. Accessed 27 Mar. 2017.

Kohli, Simran. "Flowers and Their Uses in Daily Life." Home Health Beauty, 14 Aug. 2016,

homehealthbeauty.in/style/flowers-and-their-uses-in-daily-life/. Accessed 27 Mar.

2017.

"Market Research for Your Flower Shop." Open a Flower Shop,

openaflowershop.com/market-research.html. Accessed 27 Mar. 2017.

"The Meaning of Rose Colors." Rkdn, www.rkdn.org/roses/colors.asp. Accessed 27 Mar.

2017.

"Monceau Fleurs." Monceau Fleurs, www.monceaufleurs.com/. Accessed 27 Mar. 2017.

"The Wild Bunch." Economist, www.economist.com/news/christmas-specials/21636590-

frenetic-competitive-multifarious-filthy-and-beautiful-flower-business. Accessed 27

Mar. 2017.