Executive Summary:
Ivy Flower Boutique is a startup shop located in Abu Dhabi Ladies Club and owned by Ms. Salma ALGHFELI. The shop will become a License of Abu Dhabi Ladies Club. IVY Flowers Boutique will be specialized in personalization product which will be revolutionize the floral industry , and making its marks in many markets that traditionally have not had an interest in flowers and gift wrapping, like the gift market, the greeting card market and the promotional industry. By creating a patented process that embosses your own personalized message or photograph directly into a petal of live, fresh flowers , IVY flowers boutique has combined the customized instant message with the emotion of a flower to create 'The New Standard of Expression' and given to you the opportunity to print flowers for today's era of personalization.
Location
The Company will have a storefront in the Abu Dhabi Ladies Club, in Abu Dhabi area.
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Industry Analysis
Holiday purchases traditionally drive the florist and gift industry. The holidays, along with birthdays and anniversaries are ideal dates for purchases of fresh flowers, floral arrangements and gift items.
Holiday Purchase
- Valentines' Day 36%
- Mother's day 27.4%
- Christmas 15%
- Eid Holidays 7%
Objectives
IVY Flowers Boutique objectives are:
- To provide a unique flower/gift item to the local community
- Institute good business practices
- To be an active and vocal member of the community
The mission of IVY Flowers Boutique is to revolutionize the floral gift and promotional industry by combining the magic of fresh flowers with the sentiment of personalized messages by imprinting customized images or words directly onto the pedals of the flower itself.
Keys to Success
IVY Flowers Boutique Keys to success are:
- Advertising and promotion to our targeted customer base
- Provide for the satisfaction of 100% of our customers
- Be an active member of the community
- Encourage customer input
Company Summary:
Ivy Flower Boutique is a startup company located in Abu Dhabi Ladies Club, and owned by Ms. Salma. The Company will become a License of Abu Dhabi Ladies Club. IVY Flowers Boutique has created a personalization product the is revolutionizing the floral industry , and making its marks in many markets that traditionally have not had an interest in flowers and gift wrapping, like the gift market, the greeting card market and the promotional industry. By creating a patented process that embosses your own personalized message or photograph directly into a petal of live, fresh flowers , IVY flowers boutique has combined the customized instant message with the emotion of a flower to create 'The New Standard of Expression' and given to you the opportunity to print flowers for today's era of personalization.
Upon receiving the store location, we will start the decoration and purchasing the required items to start our business within 4-6 months.
Our Services
IVY Flowers Boutique has created machinery and processes that are the finest quality available anywhere in Abu Dhabi. They are extremely reliable and easy to use. This state of art equipment doesn't apply a sticker or a decal; it prints on a petals of flowers that look like they were grown with mettalic letters as part of a petal. There's no shellacking the flower or any other plastic looking process. It actually embosses beautiful bright colors and even metallic ink directly onto the petals of fresh live flowers. In addition, our equipment can personalize wooden flowers, silk flowers, silk petals, fresh petals, soap petals, glass, wood, or ceramic vases and all kinds of pots and plant holder.
Market Segmentation:
IVY Flowers Boutique has the following market segments:
- Internet Sales - The Company will update their website with the ability to tie-into social media website
- General population in Abu Dhabi and surrounding areas with total population of 7.5 million people.
- Florists and Gift Shops- The Company will wholesale printed flowers to local shops.
The Company will aggressively advertise during the peak selling holiday seasons; Valentine's Day, Mother's Day, and Eid Holidays.
IVY Flowers Boutique's market segmentation shceme is fairly straightforward and focuses on the target market, the general population in Abu Dhabi, and surrounding areas .
Target Market Segment Strategy
IVY Flowers Boutique will target its market segments as follows:
The company will launch an aggressive advertising campaign in Abu Dhabi, and the surrounding areas. This will be done by direct mailer, door hangers, yellow pages, newspaper advertising, and radio advertising. Additional, the company will update their website with the ability to tie into social media websites.
Wholesale to Floral and Gift shops-- The Company will wholesale printed fresh cut flowers and arrangements to florists and Gift shops in the local Abu Dhabi area .
Competition and Buying Patterns
Profile of Traditional Buyers of Floral Arrangements:
- The average floral purchase per buying household was 3.7 times.
- The most frequent purchases are women over 35, with incomes in access of AED 10,000 who live in Abu Dhabi area.
IVY Flowers Boutique has three different types of competitors:
Retail Stores-There are many retail florist and gift shops in the Greater [YOUR CITY] and surrounding County areas. These are small operations that rely on walk-in local businesses. The Company's advantage over the local florists is our unique patented product
Wholesale Florist - There are good number of wholesale florists in Abu Dhabi. The Company's advantage over the local florists is our unique patented product.
Online Florist - In addition to traditional florists, floral arrangements can be purchased via the Internet. Such services are offered by the flower shop.ae, fnp.ae, etc. Orders are then given to local florist to deliver. When the floral arrangements arrive, they require arranging, and often the finished product may not match the photo that drove the purchase. Deliveries present another challenge if the gift recipient isn't home. The flowers are either returned to the shipper's distribution center where they remain in a box, or they are left in the box on a doorstep for an undetermined amount of time. In either situation, the quality of the live, perishable flowers is reduced.
The Company's internet marketing advantage is its ability to control the buying process; from the point of order to design, arrangement and delivery to the customer.
Financial Consideration:
The current financial plan for IVY Flowers Boutique is to obtain grant funding amount of 100,000 AED. The grant will be used to launch operations of IVY Flowers Boutique.
The major focus for grant funding is as follows:
- 100% Emirati Locals owned.
- Hire employees, the Company will look to hire minorities, veterans and the unemployed.
- Location remodel and upgrades, the Company will use 'green' materials and applications for environmental issues and energy savings.
Figure 1 - Highlights (Price in UAE Dirhams)
Start-up Summary:
IVY Flowers Boutique start up expenses of 120,000 AED includes legal and governmental fees, initial marketing , rent, insurance and utility costs prior to opening, website development , hiring of 2 persons, and miscellaneous expenses. The company will also purchase initial inventory of 5,000 AED.
Additionally, the company will use 38,000 AED to purchase fixed assets as follows:
- License fees including production equipment - 2,000 AED
- Purchase Interior Equipment; shelving, display cases, cooler, cooler displays, floor displays, checkout counters, backroom shelving, Receiving & Shipping areas and all interior finishes - 30,000 AED
- Purchase registers and computers -5,000 AED
- Purchase Office Equipment - 1,000 AED
The following table is a detailed cost estimate for the purchase of fixed assets and start-up expenses of the business.
Requirements
PRICE in AED
Start-up Expenses
- Legal AED 1,000
- Marketing/Stationary 2,500
- Insurance 200
- Rent 80,000
- Utilities 200
- Website Development 5,000
- Other 2,500
- Total Start-up Expenses 90,400
Start-up Assets
- Start-up Inventory 1,000
- Other Current Assets 0
- Long-term Assets 150,000
- Total Assets 151,000
- Total Requirements 241,400
Products:
IVY Flowers Boutique will become the License of Abu Dhabi Ladies Club. By creating a patented process that embosses your own personalized message or photograph directly onto the petal of live, fresh flowers. IVY Flowers Boutique has combined the customized instant message with the emotion of a flower to create 'The New Standard of Expression', and given you the opportunity to print flowers for today's era of personalization. This patented method of embossing images, photos, and messages onto fresh-cut flowers with harming or shortening the life of the flower enables those who take advantage of IVY flowers Boutique opportunity to create unique, one-of-a-kind gift that promises to change the reasons that people buy flowers forever. When they see the things that can be done with an embossed flower, they will buy embossed flowers for many more occasions than they ever bought regular flowers.
IVY Flowers Boutique has create machinery and processes that are the finest quality available anywhere in Abu Dhabi. They are extremely reliable and easy to use. the state of the art equipment does not apply a sticker or a decal; it prints on the petals of flowers that like they were grown with metallic letters as part of a petal. There's no shellacking the flower or any other plastic-looking process. It actually embosses beautiful bright colors and even metallic ink directly onto the petals of fresh live flowers. In addition, our equipment can personalize wooden flowers, silk flowers, silk petals, fresh petals, soap petals, glass, wood, or ceramic vases and all kinds of pots and plant holder.
Web Plan Summary
IVY Flowers Boutique website will be an opportunity to offer current information on service and product offerings, company background, announcements and contact information. The website will be another method to generate steady business from our targeted market.
Strategy and Implementation Summary
IVY Flowers Boutique has clearly defined the target market and has differentiated itself by offering a solid solution to fulfilling its customers' needs. Reasonable sales targets have been established with an implementation plan designed to ensure the goals set forth below are achieved
Management Summary
IVY Flowers Boutique will be managed by its owner Ms. Salma. Ms. Salma will be responsible for all administrative and operational aspects of the business.
Personnel Plan
IVY flowers Boutique owner will work during the startup phase of the Company without compensation. Upon launch of the store Ms. Salma will receive compensation during the first year of operations of AED 48,000.
The store will have two employees, one full-time with compensation of AED 30,000 in year each.
The Company anticipates a 3% increase per year for employee salaries. The Personnel Plan reflects the need to bolster our capabilities to match our positioning.
Financial Plan
The current financial plan for IVY Flowers Boutique is to obtain grant funding in the amount of AED 150,000. The grant will be used to launch operations of our IVY Flowers Boutique License program including the cost of the licensing package and covering start-up expenses, as shown in our start-up tables.
The following sections of this plan will serve to describe the Company's financial plan in more detail:
- General Assumptions
- Break-even Analysis
- Profit and Loss
- Cash Flow
- Balance Sheet
- Ratios
Marketing Strategy
IVY Flowers Boutique marketing strategy is to continue to expand services into Abu Dhabi and surrounding areas by utilizing an aggressive advertising campaign and website social media advertising.
The Company will target households with direct mailers, newspaper & magazine advertising and through social websites. [YOUR NAME] plans on contacting/introducing/expanding its wholesale business. A personal touch will be needed for this effort as a trust will have to be formed to secure customers.
Sales Strategy
The owner of IVY Flowers Boutique believes strongly in customer service, friendly, courteous and timely customer service. Making sure the customer is satisfied not only with the flowers and arrangements they purchased but also with the customer’s service provided and shopping experience.
The Company will use grant money to launch our operations and increase their inventory of floral and gift products for sale giving the customer a wider variety of goods for purchase.
Currently, IVY Flowers Boutique is working on an Advertising Campaign starting in the first quarter of 2020 that will include the following:
- Direct Mailers and Door Hangers
- Newspaper Advertising
- Radio Advertising
- Develop and launch Website and social media advertising.
The Advertising Campaign will give the Company new customer leads in the Greater [YOUR CITY] and the surrounding areas.
Sales Forecast:
The sales forecast table is broken down into three main revenue streams:
Stems/Roses - The Company anticipates sales of AED 22,000 during the first year of operations. Individual printed stem roses will sell for an average of AED 10.00 each with a cost of sales of 30%.
Flower Bouquets - The Company anticipates sales of AED159,000 during the first year of operations. Printed flower bouquets will sell for an average of AED 70.00 each with a cost of sales of 30%.
Miscellaneous items - The Company will sell other gift items in their shop with anticipated sales of AED15,000 during the first year of operations with a cost of sales of 50%.
Additionally, the Company will show a cost of sales of 6% of Stems/Roses and Flower Bouquets to cover shrinkage and spoilage.
The total sales for year 1, 2 and 3 are AED196,500, AED 330,000 and AED 363,000, respectively.
Projected Profit and Loss
IVY Flowers Boutique Pro Forma Profit and Loss statement was constructed based in large part on the experience of the Licensor, IVY Flowers Boutique and investments in marketing and advertising.
The sales for year 1, 2 and 3 are AED196,500, AED 330,000 and AED 363,000, respectively. Gross Profit will be 62.93% in year 1 and 62.73% in year 2 and 3. The Company will show a Net Loss of (AED 30,340) in year 1, a Net Profit of AED 36,713 in year 2 and AED 49,109 in year 3 due to the internal expansion of the Company to launch the marketing, sales and operation efforts needed to take advantage of the market and growth in the future years. The Company will show an (AED11,340) in year 1, AED67,950 in year 2 and AED84,479 in year 3. The percentages of the net profit to sales for this period were (15.44%), 11.13% and 13.53%, respectively.
The Operating Expenses and Net Profit to Sales for the three year period are affected by the internal expansion of the Company. Gross Profit will remain in the 62% range in future years. Net Profit and Net Profit to Sales Percentage will continue to rise in future years as the internal expansion and investments in Marketing and Advertising bear fruit.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
SAles AED196,500 AED330,000 AED363,000
Direct Cost of Sales AED72,840 AED123,000 AED135,300
Other Costs of Sales AED0 AED0 AED0
Total Cost of Sales AED72,840 AED123,000 AED135,300
Gross Margin AED123,660 AED207,000 AED227,700
Gross Margin % 62.93% 62.73% 62.73%
Expenses
Payroll AED96,000 AED98,880 AED101,846
Marketing/Promotion AED9,000 AED9,270 AED9,548
Depreciation AED19,000 AED19,000 AED19,000
Rent AED6,000 AED6,180 AED6,365
Utilities AED1,200 AED1,236 AED1,273
Insurance AED1,200 AED1,236 AED1,273
Supplies AED8,400 AED8,652 AED8,912
Payroll Taxes AED9,600 AED9,888 AED10,185
Other AED3,600 AED3,708 AED3,819
Total Operating Expenses AED154,000 AED158,050 AED162,222
Profit Before Interest and Taxes (AED30,340) AED48,950 AED65,479
EBITDA (AED11,340) AED67,950 AED84,479
Interest Expense AED0 AED0 AED0
Taxes Incurred AED0 AED12,238 AED16,370
Net Profit (AED30,340) AED36,713 AED49,109
Net Profit/Sales -15.44% 11.13% 13.53%
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