Business Planning for Floral Venture: Strategies and Insights Assignment Sample

Business Planning for Floral Venture: Strategies and Insights

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Introduction - Business Planning Strategies for a Floral Venture

Pitching a business idea requires some innovative ideas. At the same time, it will require proper business planning along with some ideas of the market and competitors. This report will be based on a business idea to be pitched. The product will be the flowers of a nursery and to expand floral business is the main aim of Leahurst nursery. A few advantages and disadvantages of funding sources will be identified in this report. In order to develop the business idea, a few pieces of advice will be attached in this report. Cash Flow statement will be attached with a report. Structure of the market along with competitors’ strength will be acknowledged in this report. For the second part, a presentation will be done focusing on finance, market, future potential and business plans. Lastly a reflective idea about the business pitch will be delivered.

Part 1

Advice for the development of the business proposal

In order to develop the business proposal, a few pieces of advice will be given in this report. The business idea is actually based on flowers. In the market of the United Kingdom, flowers actually contribute to 26 million USD on a yearly basis. Developments will be helpful to create enough room for more revenues yearly. Leahurst nursery firstly needs to do market research for the product (Ostaev et al., 2019). The requirements of floral arrangements along with the demands and trends in the floral business will be identified. In the meantime, Leahurst nursery should focus on the supply chain and should create a strong supply chain. Leahurst nursery should have more options and customisations when a customer shows interest. Adding these points will help to develop the business idea more.

Advantage and disadvantage of sources of funding

Sources of funding available for the business venture has few advantages and disadvantages as well. Crowdfunding can be a good option to raise money for the business venture. It can create a relationship with the investors while creating a strong communicative network. On the other hand, the success rate of crowdfunding is quite low. It also takes more time to get prepared. Another feasible option to fund the business proposal is bootstrapping. It will be helpful for the business idea to use all the available resources. Cost structure will be lowered while using this source of funding (Schlegel et al., 2020). It will not be a feasible funding source while the business will be expanded. In the meantime, it will take more time. Bank loans can be another good option to fund the business idea. This is mainly for temporary purposes. In the meantime, it would take high interest from the person applying for the loan.

Cash flow statement

Market structure

There are four types of market structure. Monopolistic competition, perfect competition, oligopoly, and monopoly are the main four types of market structure. Monopolistic competition generally refers to the industry where the same kind of organisations offer similar but substitutes of the original products and services. Perfect competition refers to a structure where identical products will be sold throughout the market. Oligopoly market structure gives control to a few organisations to rule over the market. Lastly, monopoly is that market structure in which only one organisation can offer a specific product or service to the customers (Cheah et al., 2019).

For Leahurst nursery, perfect competition market structure will be more suitable. Leahurst nursery selling flowers is not the only one in the market, so monopoly will not be the proper market structure. Monopolistic competition will not be appropriate as flowers will be all same and identical. Oligopoly will not be appropriate as there are many competitors in the market.

Strengths of competitors

Most of the competitors have the experience to serve the market of the United Kingdom. Leahurst nursery is very new to this market. Most of the competitors have enough knowledge about the market and its demands and trends (Mansoori and Lackeus, 2020). This works as a strength to the competitors. At the same time, the supply chain of the competitors is quite strong and they are serving these competitors for quite a long time. Customers are quite loyal and they do not intend to switch the sellers easily. The connection built within the supply chain is actually to help these competitors to outsource the products on a daily basis (Kepczynski et al., 2018). The fresh availability of the floral products is possible because of the supply chain of these competitors.

 Part 2

Introduction

This presentation will be based on the floral products of Leahurst nursery. A feasible business plan will be introduced to the investors. Here in the presentation, the core idea of the business will be shared. In the meantime, the market of floral products in the United Kingdom will be demonstrated. The finances and its sources will be required. Future potential of this organisation will be shared in this presentation as well.

Idea of the business

While starting the business an idea is required. Ideas will give knowledge about the business structure, potential risk factors, financial investments and feasibility of the business idea. Here, Leahurst nursery has thought to sell fresh floral products in the market of the United Kingdom. Floral products like bouquet, garlands, ornaments will be sold. The customers can choose the product layouts from the websites and they can customise their products as per their requirements. Leahurst nursery will take pre bookings of special floral demands as well. The pre booking should be done before two days. This business idea will require some more factors to implement successfully.

Market

In the United Kingdom, the floral market contributes to 900.9 million as per the report of 2022. In 2022, the market has increased about 123.4 percent altogether. Due to the pandemic, the floral market of the United Kingdom witnessed the downfall quicker than the rest of the economy. By the market size, the floral market stood at the 72nd position. In 2021, total revenue was 400 million from the floral market. In order to capture the market, it is important to focus on the requirements of the market. Trends often change in the floral market. Leahurst nursery needs to follow these trends in order to succeed in the market.

Finance

All the finances will be collected from the funds. Leahurst nursery will start with a bootstrapping funding method. All the available resources will be utilised fully to set up the business. In the meantime, the crowdfunding process will be utilised to raise money for the business venture. It will use various social media platforms to raise the funds required for the business venture. In order to setup a business place, along with the raw materials, it will require a good understanding of financing. At the same time, for the management purpose, salaries of the employees and to manage the e-commerce, it is required to fix a budget first. Taking some loan from bank will also help.

Future potential

This business will have moderate potential in future. Already there are many competitors in the market of flowers in the United Kingdom. Unlike other organisations, this new business venture will provide a few advantages to the customers.The increased demands of fresh flowers after the pandemic situation, will help this organisation. In the meantime, the fresh innovative ideas will attract more customers. The business will have an e-commerce platform which will be able to collect more profits from the market.

Conclusion

In order to enhance the opportunities of the business idea this presentation has been delivered to the audience. The business plan to sell floral products in the British market is explained through this presentation. In the meantime, market share and scopes are given priority while making this presentation. All the financial details and requirements are included for better understanding. The future opportunities of Leahurst nursery are also shared in these presentations.

Part 3

Strengths and weaknesses of own development

While trying to develop, it is important to look after the strengths and weaknesses. As a person I am details-oriented and hardworking. Both these qualities will motivate me to understand the market requirements and trends. I will be able to implement these ideas and experiences while setting up my organisation. At the same time, my communication skills are very strong. At the same time, strong communication skills will help me to build rapport with the clients and suppliers (Sági and Juhász, 2019). This will help me to create a business network. My communication skills are also good for my negotiation skills. While setting up the business, I have to negotiate with the suppliers and buyers at the same time. I will be able to do this with my interpersonal skills and communication skills.

Like others, I too have a few weak points which may have a negative impact on my development. I am not good at managing time. It often gives me a hard time while finishing my tasks within the deadline. I have to work on my punctuality otherwise it will have a negative impact on my business. At the same time, I am not organised. Without organising skills it would be a bit difficult to run a business. Most of the time, important documents, information will be misplaced. The priority of the works will never be known. It will gradually decrease my productivity (Brinckmann et al., 2019). I simply have to start sorting out my work on a priority basis. It will help me to become an organised person.

Conclusion

This report is based on a business proposal to sell flowers. For selling purposes, a pitch is given to explain the business idea. Here the report has tried to identify the possible advantages and disadvantages of funding sources. In the meantime, the market structure is analysed. To improve the business structure a few pieces of advice has been discussed in this report. Strengths of the competitors in the relevant market are analysed for better understanding. Cash flow statements are attached in this report. For the next part of the report a presentation has been done based on business idea, market segmentation, finance and future potential of the business idea. Lastly, strengths and development of ownself have been attached to reflect on the progress.

References

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Cheah, J., Amran, A. and Yahya, S., (2019). External oriented resources and social enterprises’ performance: The dominant mediating role of formal business planning. Journal of Cleaner Production, 236, p.117693.

Kepczynski, R., Jandhyala, R., Sankaran, G. and Dimofte, A., (2018). Integrated Business Planning: How to integrate planning processes, organizational structures and capabilities, and leverage SAP IBP technology. Springer.

Mansoori, Y. and Lackeus, M., (2020). Comparing effectuation to discovery-driven planning, prescriptive entrepreneurship, business planning, lean startup, and design thinking. Small Business Economics, 54(3), pp.791-818.

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Sankaran, G., Sasso, F., Kepczynski, R. and Chiaraviglio, A., (2019). Improving Forecasts with Integrated Business Planning. Springer.

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