Business Plan Green land shop

VIET NAM NATIONAL UNIVERSITY OF AGRICULTURE  BUSINESS PLAN A Green Land Shop at VNUA Students name: Class: K60QTKDT Lecture: Assoc Prof Dr Tran HuuCuong Table Contents EXECUTIVE SUMMARY 1.1 Business Objective: As a start-up store, we set clear goals Short-term goal: The first week can sale 200 products Bring the minimum profits: 2.000.000 – 2.500.000 VND/ week Make customers trust my shop: High quality product: beautiful, good growth- don’t have pets Cheaper price than other shop Long-term goal: Provide quality products to customers as well as the best service for customers to build prestige in around VNUA 1.2 Mission Statement: Small plants not only decorate, refresh the family space but it has become an "accessory" to beautify the work room Many people choose gifts as beautiful as cheap as well as In addition to decorative effects it also brings a lot of fengshui meaning With small plants, you can completely create a beautiful green space in the narrow area, in the cafe, restaurant, workplace So the shop was born with the purpose of directing users to a cool, creative space A space does not have noisy, dusty, stress and away from the worries of life Help people find more fun, inspirational work; optimistic, confident in life COMPANY DESCRIPTION Name: Green Land Shop Variety product: seed, bonsai, decorative plant, … Location: Street-An Lac- TrauQuy - Gia Lam -Ha Noi Email: greenland@gmail.com Facebook: Green Land shop Slogan: “Green land, green planet” Motivation: Customer wants to relax after hard working day with airy space and green tree TARGET MARKET According to a survey, found that demand for ornamental plants was strong or moderate in most of the Interior decoration market and FengShui around the country And Green Land Shop is targeting three main types has the most potential 3.1 Target customer characteristics After studying and analyzing, we have categorized some characteristics according to each type of customer.For students, they are young and have low income Usually buy pots or small plants The trees are suitable for gifts and decorations For office workers, they have better financial resources, often buying large trees suitable for office And plants suitable fengshuifor residents, quite financially The diversity of plants, there are also a large number of residents buying fengshui trees 3.2 Customer motivations and purchasing patterns What factors most influence your customers’ purchasing decision? Consumer: Students have limited financial resources, so the decisive factor when buying is their price and personal preferences In addition, the style of shop decoration and customer service also plays a role.For employees and residents, they have higher income but at the same time the free time is limited, so the decisive factor when buying is the store location and customer needs Next is the quality of trees, fengshui and customer service Business: The most important thing to attract customers is the quality of products and customer service Then there are many important factors are not only the product price, business location, transportation services, 3.3 Market Size Total customers per month Students: about 20-50 people Employee offers: around 40 people Residents: about 50 people Total target customers: Nearly 150 people per month 3.4 Market Trends In the future, expected the number of students, officers and residents at and around VNUA area will increase Trends to bonsai at the desk create open space, reducing the stress of office workers will increase Life is improved, mental needs of people increase such as: birthday, 20/10, 20-11, 8-3 Products such as teddy bears, clothes, shoes are familiar The trend to find new gifts to beautify the balcony, learn about the tree increase When people find more meaningful gifts, bonsai that meet these requirements will become the first choice THE COMPETITION In VNUA, we have many competitors, specific competitors are: Vườnhoasinhviên, Flower Corner, Thếgiớihoacảnh, Vườnhồngnôngnghiệp They have a lot of strengths are the number of patrons is stable, good prices for their available sources, spacious shop, eye-catching decoration and employees have long experience Beside that, they have Weaknesses are not transport the range near school and high price So, we created a competitor evaluation table, to understand them as well as to improve our goods Indicator Resources Location Product Important level 0.3 0.2 0.2 Vườnhoa sinhviên 5 Flower Corner 5 Thếgiớih Vườnhồngn oacảnh ôngnghiệp 5 3 Green Land 3 Prices Service to customers Total 0.2 0.1 3 3 3 4 4.7 4.3 3.4 3.6 3.7 After completing the table, we find that we have a lot of competitive advantages, namely: Have many activities and promotion services, good price: range of 30.00070.000VND - cheaper price than other shop After a careful review, we have a comment about SWOT in our shop on the table: Strengths Young employee, give new ideas, effective Price is consistent with the level of income of consumers Fast delivery, quality and reduced transportation costs Little capital New shop has not many customers The area of shop is small for decoration arrangements Young employee don’t have experienced Opportunity Threat Market demand is high Income customers increase There are many suppliers of raw materials at competitive prices Internet development is strong, effective support for advertising Business model is easy to copy Price of products and materials increase Competitors have strong finances Weakness MARKETING AND SALES PLAN The Marketing mix is a set of four decisions which needs to be taken before launching any new product These variables are also known as the P’s of marketing These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization The Variables of marketing mix are as follows: 1) Product 2) Pricing 3) Place 4) Promotions 5.1 Goals Short-term goal: The first week can sale 200 products Bring the minimum profits: 2.000.000 – 2.500.000 VND/ week Make customers trust my shop: High quality product: beautiful, good growth- don’t have pets, cheaper price than other shop Long-term goal: Provide quality products to customers as well as the best service for customers to build prestige in around VNUA 5.2 Product Strategy Variety product: Pot plants, seed, bonsai, decorative plant, soil nutrition… Pot plants Miniature bonsai, seed Decorative accessories Tools for planting trees Soil nutrition 30.000-70.000 VND 30.000-100.000 VND 15.000-20.000 VND 20.000-50.000 VND 45.000/kg The products of the shop have their own characteristics, customers can enjoy the creativity according to their own preferences, and shop also provides full equipment 5.3 Pricing Strategy Not to the higher price of the competitors • Penetration Pricing: opening weeks Low price to secure high volumes Discount 30% to attract customers and increase demand • Complementary Pricing: charge a very low price, compared to the competitors, for a common item, while raising the price on other items The price of the product is suitable for many groups of customers, because it is selfdesigned products, so there are many prices for customers to choose from different products To increase the number of customers to the store, there are strategies to reduce the price on holidays, special occasions.Take care of customers by accumulating point, discount on birthday 5.4 Place Strategy Address: Street-AnLac- TrauQuy - Gia Lam -Ha Noi The shop is located in a densely populated area to attract customers Security area, customers have ample parking when visiting the shop to visit and select the products you like The space is decorated neatly, clean and creative, bringing cool feeling to satisfy customers Selling online and free ship around VNUA Direct distribution: customers come to the store to be able to easily select and consult more specific, but the store still has online sales service, delivery for those who are busy, there is no time to visit the shop 5.5 Promotion and Advertising Strategy Promotion Strategy When customer buy product in the shop, they can have been services such as: keep track of customer information, call care after week, month Donate some things cute Enter the discount code Buy get Advertising Strategy The means of choice are simple, low cost but highly effective: post in the Facebook, Zalo, Instagram Leaflets: Design and print brochures for your store, with Facebook, Zalo, Instagram address, and contact address for direct order via phone, which is used to deliver to customers Customers want to refer to their own design of plants as you like and can transfer to other people to make the store more widely known OPERATIONS 6.1 Location/ facilities The study of facility location problems, also known as location analysis, is a branch of operations research and computational geometry concerned with the optimal placement of facilities to minimize transportation costs while considering factors like avoiding placing hazardous materials near housing, and competitors' facilities The techniques also apply to cluster analysis Our shop includes floor about 20m2, bed, a kitchen, storage area and garden wide 30m2 With criteria: Beautiful design Inside decoration with mini pots: stone lotus, lucky tree Garden showcasing such as rose creepers, Paper flowers, orchids 6.2 Production/ quality control We are quality control by choose the import markets or prestigious seedlings and check careful product before receive.About Inventory control, first we try not to stock up lots, the most important is take care of plant, bring water and kill pet for plant, flower 6.3 Supply/ distribution For the supplier, we choose suppliers areVNUA Plants center (Address: Vietnam National University of Agricutal) and Hoang HoaTham Plants markets (Address: 628 Hoang HoaTham, Tay Ho, Hanoi) 6.4 Customer service Customer service is very important, we always pay attention to service when customers come to the store: Save customers’ vehicles carefully when they come We will serve mineral water first for them to drink in waiting time We turn on music every day Free ship for customers in VNUA area Developing close relationship and be very friendly to anyone who comes in 6.5 Operational advantages Starting out as a student of VNUA, we are well aware of the market here and grasp the operational advantages Supply: we have near, cheap and high quality suppliers Market: wide market, many customers Distribution: we have quick and professional serving 6.6 Operational challenges Beside the operational advantages, we encountered some challenges such as: Supply: Sometimes the quality of suppliers is not good and they can increase prices of products Production: Difficult to keep flower fresh in long time Distribution: Each customer has different favorite plant, flower Capital: Have many risk from start- up with project need many money 6.7 Solutions To address these issues, we have put forward some of the possible solutions: Choose to co-operate with the best suppliers Estimate the products can sell for one day to adjust import products quantity Check the quality of materials everyday Encourage customers to feedback our products Train employees to make them work faster and more professional MANAGEMENT STRUCTURE 7.1 Organization structure Green Land Shop will be wholly owned and operated by Nhung, Thảo, Linh Nhung will perform all office and accounting functions such as calculating the initial shop costs and seed costs Linh and Thảo will perform sales We will hire one staff for Technical work, and one shipper 7.2 Management Team Nhung will actively manage the shop Shop management duties will include importing goods, establishing and maintaining accounting systems Recruiting, training and managing sales staffs Organizing the business activities Linh and Thảo serving and introducing products for customers They actively market Green Land SHop by speaking to local residents, give out flyers and post information to social networks And they will also actively participate in managing shop during the busy 7.3 Personnel Plan The following is a summary of GreenLand Shop’s Personnel Plan Job Function No Hrs/Month Total Hrs Pay rate Total Wages Manager Sales Technical staff Shipper Total x x x 300 300 300 = = = 300 600 300 x x x 20k/hr 17k/hr 20k/hr 6.000.000 10.200.000 6.000.000 x 150 = 150 x 15k/hr 2.250.000 24.450.000 FINANCIALS 8.1 Important Assumptions This financial plan is set up as an estimate to calculate the amount of money needed to put the project into operation Financial objectives: self-mobilization of capital and profit of at least 20% compared with the capital spent annually Purpose of the financial plan: Expect reports on business results and profit distribution Expect financial needs Expected cash flow projection Helps managers to select organizational measures, adjust financial resources to be used effectively Sales forecast: Estimated maximum number of customers per day to 30 people per day It is forecasted that the average operating capacity in 2019 will be 50%, 70% in 2020 and 80% in 2021 The number of days of operation of the shop is 30 days / month 8.2 Start-Up Costs 8.2.1Estimating cost of capital Estimating cost of capital: Set by the supplier according to the quantity purchased: In 2019: buy 1400 seeds of about 70 million, 500 pots of plants and decorative materials, tools to support the tree estimating 68 million In 2020: buy 2000 seeds estimating 90 million, 600 pots and decorative materials, tools estimating 72 million In 2021: buy 2500 seeds estimated at 116 million; 800 baskets of plants and raw materials, tools estimating 175.2 million 8.2.2Estimating investment costs Particulars Renting house Equipment (display shelves, tables, chairs ) Repair, decorate Make signs Advertisement Business registration Recruitment and training Cash 5.000.000 7.000.000 3.000.000 1.000.000 1.000.000 1.000.000 1.000.000 Electricity, water, telephone, internet Other costs Total 2.000.000 3.000.000 24.000.000 8.2.3Estimating salary costs in 2019 Position Manager Salary / month 6.000.000 Salary / year 72.000.000 Sales 10.200.000 122.400.000 Technical staff 6.000.000 72.000.000 Shipper 2.250.000 27.000.000 Total 24.450.000 293.400.000 8.2.4Estimated total expenses Particulars Renting house Salary Subsistence 2019 60.000.000 293.400.000 21.600.000 2020 60.000.000 300.000.000 21.800.000 2021 60.000.000 320.000.000 22.00.000 Other Total 15.000.000 390.000.000 15.000.000 396.800.000 15.000.000 417.000.000 The cost contingency is cost to use in instances of unforeseen risks This cost is used to save the store's funds, estimated at 15 million / month 8.3 Projections 8.3.1 Projected Profit and Loss Projected Revenue:The shop does not earn revenue in days like New Year's Eve, Tet, Cash 2019 20 customers/day 70.000VND/customer 2020 25 customers/day 80.000VND/customer 2021 30 customers/day 90.000VND/customer 503.000.000 700.000.000 940.500.000 Projected Income statement Categories 2019 2020 2021 Revenue 503.000.000 700.000.000 940.500.000 Cost of goods sold 138.000.000 162.000.000 291.200.000 Gross profit 365.000.000 538.000.000 649.300.000 Total expenses 390.000.000 396.800.000 417.000.000 Net income -25.000.000 141.200.000 232.200.000 Gross profit = Revenue - Cost of goods sold Net income= Gross profit - Total expenses In 2019, the shop invests equipment and start-up business, so the net income is -25.000.000 VND Over the next two years, the store is expected to earn a high net income 8.3.2 Projected Balance Sheet The following chart depicts the balance sheet: ASSETS Current asset Fixed assets TOTAL ASSETS LIABILITIES Current liabilities Long term TOTAL LIABILITIES OWNERS’ EQUITY TOTAL LIABILITIES & EQUITY Start-up (2019) 2020 2021 150.000.000 20.000.000 170.000.000 170.000.000 20.000.000 190.000.000 300.000.000 20.000.000 320.000.000 20.000.000 5.000.000 0 20.000.000 5.000.000 0 150.000.000 185.000.000 320.000.000 170.000.000 190.000.000 320.000.000 Total assets Current asset: Estimating cost of capital buy material Fixed assets: Equipment (display shelves, tables, chairs ) Repair, decorate Make signs Advertisement Business registration Electricity, water, telephone, internet… Liabilities: Borrowed from bank: 20.000.000 VND in 2019, 5.000.000 VND in 2020 Owners’ equity: Each member contributes capital People Position Capital NguyễnHồngNhung Manager 40% TrầnThịThùyLinh Sales 30% BỳPhươngThảo Sales 30% ... Name: Green Land Shop Variety product: seed, bonsai, decorative plant, … Location: Street-An Lac- TrauQuy - Gia Lam -Ha Noi Email: greenland@gmail.com Facebook: Green Land shop Slogan: Green land, ... actively participate in managing shop during the busy 7.3 Personnel Plan The following is a summary of GreenLand Shop s Personnel Plan Job Function No Hrs/Month Total Hrs Pay rate Total Wages Manager... Product Strategy Variety product: Pot plants, seed, bonsai, decorative plant, soil nutrition… Pot plants Miniature bonsai, seed Decorative accessories Tools for planting trees Soil nutrition 30.000-70.000