EXECUTIVE
SUMMARY
This
pre-feasibility study is about Florist Shop business in the floriculture
sector. Florist Shop is a retail outlet having a warehouse and an in-house
living facility for workers to deal in a variety of fresh flowers, flower
baskets, bouquets, event decoration and car decoration for weddings. The shop
will be located in developed urban areas and cater to the needs of local
customers as well as surrounding areas. The cost for setting up the proposed
project is estimated at Rs. 1.58 million.
The
estimated yield potential of the project varies according to the selected
business dimensions including but not limited to business model, marketability,
investment size, availability of raw material, HR skills & competencies and
location. However, the estimated revenue of the proposed business would be Rs.
4.42 million in the first year. It is proposed that the status of this business
should be a sole proprietorship.
BRIEF
DESCRIPTION OF PROJECT & PRODUCT
The
proposed florist shop is a small scale project established on rented premises,
having two separate units; a retail outlet and warehouse cum living facility.
The florist retail outlet will require covered area of 350 sq. ft. and
warehouse with an in-house living facility will be established on 1,125 sq. ft.
area. The florist shop is assumed to achieve a sale target of 121,465
flowers/units in the first year of its commencement at 85% of its total
capacity. However, the capacity utilization is assumed to be increased at the
rate of five percent (5%) whereas, the prices of shop items will be increased
at the rate of 10% per annum. A total funding of Rs. 1.58 million inclusive of
the equity would be required to finance the main costs including furniture
& fixture, shop equipment, vehicle and initial working capital for
establishing florist shop business in the developed localities of the
prospective region.
CRITICAL
FACTORS
The
key success factors of the proposed business model are as under:
1)
Location and decor of the shop
2)
Variety of innovative designs
3)
Management of events
4)
Availability of fresh and good quality flowers
5)
Promotional activities
INSTALLED
& OPERATIONAL CAPACITIES
A
shop of 350 sq. ft. and warehouse / workers’ living facility of 1,125 sq. ft. primarily
used for decoration stands, wreaths, stage arrangement, etc. Project is
proposed to be located at a suitable place in the city to achieve the proposed
sale target of 142,900 units (Roses, Glad, Tube Rose and Tulip) for Basket
& Bouquet, Events and Car Decorations. It is assumed that finished goods
inventory equivalent to 2 days would be kept, hence 120,790 units will be
available for sale in year 1 at 85% of its installed capacity.
GEOGRAPHICAL
POTENTIAL FOR INVESTMENT AND POTENTIAL TARGET MARKETS
Florist
shop is proposed to be established in urban areas, in close proximity of event
complexes, shopping malls and designated commercial areas.
POTENTIAL
TARGET MARKETS
Major
commercial centers / areas of cities across Pakistan targeting following;
•
Banquet Halls
•
Commercial / Corporate area’s and offices
•
Hotels / Restaurants
•
Bouquets and flower buyers
•
Party decorators and event organizer
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