Introduction
Purpose of the Plan
The purpose of this business plan is to help in engaging in an in-depth analysis of viability with the focus being towards attracting investors to the business. For the business to function effectively, it must be able to attract investors, who would be willing to invest in the company based on their expected returns on investment. Thus, this creates the need for having to focus on this business plan that will provide information on how investors expect a return on their investments. The business plan seeks to provide investors with information that they would need with regard to the company, as well as, the industry allowing them to make decisions on whether to invest. On the other hand, the business plan seeks to highlight the business’s approach to diversification with regard to the services that it offers to its clients.
Introduction to the Market Opportunity
The demand for landscaping in the region is increasing at a significant rate especially in the last five years attributed to the need for people to ensure that their environments match their definite expectations. Landscaping focuses largely on the manipulation of terrain with an aim of matching specific expectations (Dell, 2015). The opportunity for this service, in the market, is immense, thus, highlighting the importance of setting up this business venture.
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The Company
Floral Landscaping was founded back in 2017 with the focus being towards ensuring that it delivers on the landscaping needs among its clients within different regions. The company provides clients with a wide variety of services, which include addition of flowers, manipulation of the terrain, as well as, construction of new structures within different environments. Over the past year, the company has delivered on several notable projects, most of which have been driven by aesthetic and practical reasons. The company believes in its ability to compete within the landscaping market, as it understands the diverse needs projected by the clients specifically focusing on the variation in landscaping expectations.
Market
Industry Overview
The landscaping industry remains as one of the most distinct industry considering that 72% of the industry is occupied by small businesses operating with diverse environments (Hall, 2005). The demand for landscaping services may vary considering that these services may include residential and commercial landscaping depending on the demands in the markets. According to Kishel & Kishel (2005), the landscaping industry grows at a rate of approximately 10% attributed to the high demand for consumers to manipulate different aspects of their environments. That has pushed the need for more companies to venture into this industry as a way of meeting the demands within the markets.
Competition Strengths and Weaknesses
The level of competition within this industry is somewhat limited considering that majority of the companies operating within the industry are small businesses. However, an analysis of the future for the industry indicates that the industry may experience a significant increase in the number of new entries. That arises from the fact that entry into this business require very little capital, which, in turn, creates a situation where the number of business owners venturing into this industry may increase.
Target Market
The unsatisfied need among consumers within this industry reflects more on the demand for creativity in the manipulation of the environment. Consumers tend to have varied expectations with regard to the overall levels of manipulation within the environment as part of landscaping (Gray, 2004). From that perspective, it becomes somewhat essential for consumers of these services to create a higher demand for the services while ensuring that indeed companies deliver on their expectations.
Service Research and Development
Landscaping services focus more on projecting creativity on the part of the landscapers, as this provides them with a provision from which to build on their variation in terms of different changes made to the environment (Opiela, 2006). The achievement of success for companies depends wholly on their ability to maintain uniqueness in their approaches to landscaping, which creates a variation in the quality of service delivery.
Environmental Scan
In the macro environment, the most significant factor of consideration is the demographic factor with the specific focus being on household and commercial lifestyles. The lifestyles act as key determinants of the demand for landscaping services, thus, acting as a key determinant of the successes for businesses in this industry. Another key factor is the economic factor considering that landscaping is a non-essential service. Consequently, this means that individuals or companies may only consider this service in the event that the economy is sustainable for such demands. The nature of competition, in the industry, is medium considering that majority of businesses operating within the industry are small scale. However, the entry level in this industry creates a major variation from a competitive perspective, as entry into this industry does not require high cost margins.
Company Descriptions
The type of business associated with Floral Landscaping is sole proprietorship. This type of business makes it much easier for the company to engage in different aspects of business performance including the decision making processes.
Mission: To become the most valued provider of landscaping services
Vision: To be successful in setting business standards that would help meet consumer demands within the landscaping industry
The first core competency that Floral Landscaping boasts of is commercial experience. The proprietor of the company has worked in the industry for the past 15 years, thus, meaning that he has a clear understanding of the demands and innovations in the industry. The industry has gone through several notable changes within the past decade attributed to the introduction of technology, which has changed the delivery of services significantly. The proprietor has a clear-cut understanding of the demands within the market, which acts as a guarantee of enhanced business performance.
Secondly, the company boasts of responsibility, as it seeks to create a unique approach from which to define demand for landscaping services. Responsibility focuses more on ensuring that the company understands the importance of having to deliver services depending on varied consumer expectations (Pepper, 2008). In his experience, the proprietor has worked with several landscaping companies, which has built on his ability to develop that sense of responsibility. Using this competency, the company would be able to create a distinct avenue from which to compete within the market.
Marketing Activities
The overall marketing strategy that the company has put in place is digital advertising. Digital advertising is a marketing strategy that seeks to ensure that the company uses some of the digital platforms including social media as part of the marketing process (Beaver, 2002). The company seeks to use social media to help in defining its market, as well as, ensuring that more people develop a clear understanding of the quality of services that it offers. On the element of pricing, the business seeks to build on sot leadership as one of the key strategies to build capacity in meeting consumer demands within the markets. In place, the company seeks to open an office within the region with the focus being towards ensuring that clients would be able to access the business on ensuring that they get a clear understanding of the services offered.
Products and Services
The services offered by the company will be landscaping and snow removal. In landscaping, the business will be involved in development of new designs that fit within different environments. The designs will then be approved by the clients depending on their varied needs after which the business will seek manipulate the environment to match the designs. The landscaping services that the company seeks to offer include planting or transferring of flowers, trimming and cutting of grass, construction of new structures, and changing the environment. On the other hand, the company will offer snow removal services for both private and commercial clients.
Risk Management
Landscaping does not project any notable risks for the business considering that this is an industry that seeks to offer services depending on the demands for the clients (Suwardy & Ratnatunga, 2014). The main risk that the business may encounter revolves around its inability to deliver on expected project outcomes within a given timeline. This may arise due to unforeseeable delays, which the company seeks to identify with an aim of trying to set out effective mitigation measures. However, the business will take up insurance as a guarantee that it will be able to deal with any underlying risks occurring within the business venture. The insurance will not only cover the services offered but will also cover different aspects of the business venture including equipment and assets. The insurance will cover any liabilities that the company may encounter as part of its business approaches with the focus being towards developing a clear understanding of business performance.
Operations
The business, which will deal purely on service provision, will structure its operations in a manner, which seeks to ensure that it delivers quality services. The proprietor will be involved in a process of seeking new clients, as well as, ensuring that the services are delivered within the set timeline. During the negotiations, the proprietor will focus on getting a clear understanding of timeline expectations among clients, which would determine how the operations offered will be structured. On the other hand, the proprietor will be involved in supervision of the projects to ensure that they match the quality expectations. Before embarking on any project, the teams involved will develop a plan and strategy that they will seek to meet within the set out timeline. The proprietor will be involved in a process of having to supervise the projects to ensure that they are structured in a manner that is rather effective to meet service expectations.
Financial Analysis
From a financial perspective, the funds required for the business will be directed towards the daily operations of the company and marketing. The funds will play a critical role towards ensuring that the business functions effectively while ensuring that it delivers on some of its set out goals and objectives. The current funding requirement is approximately $500,000, which will cover some of the key expenses that the company will incur within the first financial year. However, it is important to take note of the fact that the company will also generate notable revenue, as has been highlighted within the financial statements. In the next three years, the company will expect funding of up to $800,000, which it seeks to gather from investors and business partners.
Financial Statement
Income Statement
Monthly Income Statement for Year 1
| Jan | Feb | March | April | May | June | July | Aug | Sept | Oct | Nov | Dec | |
| Income | ||||||||||||
| Manipulation of Terrain |
55,500 |
57,000 |
56,550 |
45,500 |
47,000 |
46,550 |
35,500 |
37,000 |
36,550 |
25,500 |
60,700 |
35,550 |
| Addition of flowers |
15,000 |
27000 |
18,700 |
29200 |
28100 |
32,900 |
30300 |
29200 |
34,000 |
31400 |
17800 |
35,100 |
| Snow Removal |
33,000 |
30,710 |
31,450 |
33,030 |
30,740 |
31,480 |
32,260 |
29,970 |
27,680 |
28,420 |
29,970 |
27,680 |
| Landscaping - Residential |
20750 |
18,460 |
19,200 |
20,780 |
18,490 |
19,230 |
20,010 |
17,720 |
15,430 |
19,270 |
20,820 |
18,530 |
| Landscaping - Business |
45700 |
43,410 |
44,150 |
45,730 |
43,440 |
44,180 |
44,960 |
42,670 |
40,380 |
41,120 |
42,670 |
40,380 |
| Landscaping Customized |
55790 |
53,500 |
54,240 |
55,820 |
53,530 |
54,270 |
55,050 |
52,760 |
50,470 |
51,210 |
52,760 |
50,470 |
| Miscellaneous Accessories |
22895 |
20,605 |
21,345 |
22,925 |
20,635 |
21,375 |
22,155 |
19,865 |
17,575 |
18,315 |
19,865 |
17,575 |
| TOTAL |
248,635 |
250,685 |
245,635 |
252,985 |
241,935 |
249,985 |
240,235 |
229,185 |
222,085 |
215,235 |
244,585 |
225,285 |
| Expenses | ||||||||||||
| Accounting |
5,750 |
6,500 |
7,690 |
6,750 |
7,500 |
8,690 |
7,750 |
8,500 |
9,690 |
8,750 |
9,500 |
6,700 |
| Advertising |
30,690 |
35,250 |
33,000 |
34,550 |
39,110 |
36,860 |
38,410 |
29,990 |
34,650 |
29,410 |
33,100 |
34,650 |
| Insurance |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
1,570 |
| License |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
2,750 |
| Maintenance and Supplies |
19,950 |
22,490 |
20,450 |
22,990 |
22,500 |
25,040 |
21,350 |
23,890 |
27,660 |
30,200 |
29,650 |
14,750 |
| TOTAL |
60,710 |
68,560 |
65,460 |
68,610 |
73,430 |
74,910 |
71,830 |
66,700 |
76,320 |
72,680 |
76,570 |
60,420 |
| Net Income Before Tax |
187,925 |
182,125 |
180,175 |
184,375 |
168,505 |
175,075 |
168,405 |
162,485 |
145,765 |
142,555 |
168,015 |
164,865 |
Income Statement for Year 2&3
| Year 2 | Year 3 | |
| Income | ||
| Manipulation of Terrain |
555,950 |
600550 |
| Addition of flowers |
328,700 |
335,650 |
| Snow Removal |
345,850 |
355,640 |
| Landscaping - Residential |
230,650 |
232,540 |
| Landscaping - Business |
522,960 |
525,650 |
| Landscaping Customized |
635,850 |
630,570 |
| Miscellaneous Accessories |
248,950 |
252,550 |
| TOTAL |
2,868,910 |
2,933,150 |
| Expenses | ||
| Accounting |
95,850 |
94,750 |
| Advertising |
390,750 |
405,330 |
| Insurance |
18,840 |
18,840 |
| License |
33,000 |
33,000 |
| Maintenance and Supplies |
284,550 |
285,000 |
| TOTAL |
822,990 |
836,920 |
| Net Income Before Tax |
2,045,920 |
2,096,230 |
Balance sheet
Monthly Balance Sheet for Year 1
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents |
33,500 |
35,700 |
36,250 |
35,300 |
37,500 |
38,050 |
37,100 |
39,300 |
39,850 |
38,900 |
36,700 |
36,150 |
| Trade and other receivables |
22,400 |
24,600 |
25,150 |
24,200 |
26,400 |
26,950 |
26,000 |
28,200 |
28,750 |
27,800 |
25,600 |
25,050 |
| Other current assets |
1150 |
2,350 |
1,800 |
850 |
2,050 |
1,850 |
2,800 |
3,000 |
1,700 |
1,800 |
2,100 |
1,550 |
| TOTAL CURRENT ASSETS |
57,050 |
62,650 |
63,200 |
60,350 |
65,950 |
66,850 |
65,900 |
70,500 |
70,300 |
68,500 |
64,400 |
62,750 |
| NON-CURRENT ASSETS | ||||||||||||
| Financial assets |
10,750 |
11,500 |
12,700 |
12,250 |
13,000 |
14,200 |
13,750 |
14,500 |
13,750 |
12,050 |
13,250 |
12,800 |
| Property, plant and equipment |
65,550 |
66,600 |
64,950 |
66,000 |
67,050 |
68,100 |
64,951 |
66,001 |
67,051 |
68,101 |
68,851 |
64,951 |
| TOTAL NON-CURRENT ASSETS |
76,300 |
78,100 |
77,650 |
78,250 |
80,050 |
82,300 |
78,701 |
80,501 |
80,801 |
80,151 |
82,101 |
77,751 |
| TOTAL ASSETS |
133,350 |
140,750 |
140,850 |
138,600 |
146,000 |
149,150 |
144,601 |
151,001 |
151,101 |
148,651 |
146,501 |
140,501 |
| LIABILITIES | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Trade and other payables |
25,445 |
25,995 |
26,000 |
26,550 |
25,050 |
25,600 |
26,000 |
26,550 |
23,950 |
24,500 |
24,850 |
25,400 |
| Short-term provisions |
6,090 |
6,290 |
6,240 |
6,070 |
6,270 |
6,220 |
6,050 |
6,250 |
6,200 |
6,030 |
6,230 |
6,180 |
| TOTAL CURRENT LIABILITIES |
31,535 |
32,285 |
32,240 |
32,620 |
31,320 |
31,820 |
32,050 |
32,800 |
30,150 |
30,530 |
31,080 |
31,580 |
| NON-CURRENT LIABILITIES | ||||||||||||
| Borrowings |
33,500 |
34,250 |
35,000 |
35,750 |
35,280 |
36,030 |
35,650 |
36,400 |
32,500 |
33,250 |
33,150 |
33,900 |
| Long-term provisions |
5,000 |
5,250 |
5,170 |
5,420 |
5,205 |
5,455 |
5,200 |
5,450 |
4,934 |
4,919 |
4,904 |
5,089 |
| TOTAL NON-CURRENT LIABILITIES |
38,500 |
39,500 |
40,170 |
41,170 |
40,485 |
41,485 |
40,850 |
41,850 |
37,434 |
38,169 |
38,054 |
38,989 |
| TOTAL LIABILITIES |
70,035 |
71,785 |
72,410 |
73,790 |
71,805 |
73,305 |
72,900 |
74,650 |
67,584 |
68,699 |
69,134 |
70,569 |
| NET ASSETS |
63,315 |
68,965 |
68,440 |
64,810 |
74,195 |
75,845 |
71,701 |
76,351 |
83,517 |
79,952 |
77,367 |
69,932 |
Balance Sheet for Year 2&3
| Year 2 | Year 3 | ||
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash and cash equivalents |
449,650 |
450,330 |
|
| Trade and other receivables |
309,850 |
312,550 |
|
| Other current assets |
19,550 |
25,090 |
|
| TOTAL CURRENT ASSETS |
779,050 |
787,970 |
|
| NON-CURRENT ASSETS | |||
| Financial assets |
155,750 |
157,550 |
|
| Property, plant and equipment |
800,050 |
801,550 |
|
| TOTAL NON-CURRENT ASSETS |
955,800 |
959,100 |
|
| TOTAL ASSETS |
1,734,850 |
1,747,070 |
|
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Trade and other payables |
299,550 |
305,100 |
|
| Short-term provisions |
74,900 |
75,470 |
|
| TOTAL CURRENT LIABILITIES |
374,450 |
380,570 |
|
| NON-CURRENT LIABILITIES | |||
| Borrowings |
400,450 |
420,250 |
|
| Long-term provisions |
65,490 |
63,750 |
|
| TOTAL NON-CURRENT LIABILITIES |
465,940 |
484,000 |
|
| TOTAL LIABILITIES |
840,390 |
864,570 |
|
| NET ASSETS |
894,460 |
882,500 |
Statement of Cash Flow
Monthly Statement of Cash Flow for Year 1
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | Oct | Nov | Dec | |
| OPENING BALANCE |
0 |
22,700 |
43930 |
63080 |
79830 |
101510 |
121130 |
147760 |
174910 |
184840 |
206240 |
234080 |
| INFLOWS | ||||||||||||
| Landscaping |
45,000 |
42,800 |
41,450 |
39,250 |
44,350 |
42,150 |
50,650 |
48,450 |
43,950 |
41,750 |
46,080 |
46,780 |
| Sale of goods |
10,540 |
11,260 |
10,730 |
10,810 |
11,930 |
11,000 |
11,480 |
12,200 |
11,670 |
11,750 |
12,870 |
11,940 |
| Snow removal contracts |
18,550 |
19,170 |
18,740 |
18,720 |
16,840 |
18,910 |
16,390 |
18,100 |
16,580 |
17,650 |
19,050 |
17,840 |
| Sale of long-term assets |
9,050 |
9,170 |
9,240 |
8,720 |
9,840 |
8,910 |
9,390 |
9,510 |
9,580 |
9,960 |
10,280 |
10,150 |
| Other commercial activities |
5,000 |
5,120 |
5,190 |
5,090 |
5,310 |
5,280 |
4,860 |
5,780 |
5,050 |
6,730 |
6,750 |
6,920 |
| TOTAL INFLOW |
88,140 |
87,520 |
85,350 |
82,590 |
88,270 |
86,250 |
92,770 |
94,040 |
86,830 |
87,840 |
95,030 |
93,630 |
| OUTFLOWS | ||||||||||||
| Wages and Salaries |
9,950 |
10,200 |
10,170 |
10,150 |
10,300 |
10,400 |
10,250 |
10,400 |
10,470 |
10,350 |
10,500 |
10,570 |
| Loan Interest |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
| Licenses |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
| Other operating charges |
28,090 |
28,340 |
28,210 |
28,190 |
28,440 |
28,310 |
28,290 |
28,540 |
28,410 |
28,390 |
28,640 |
28,510 |
| Exceptional promotion costs |
25,700 |
26,050 |
26,120 |
25,800 |
26,150 |
26,220 |
25,900 |
26,250 |
26,320 |
26,000 |
26,350 |
26,420 |
| TOTAL OUTFLOW |
65,440 |
66,290 |
66,200 |
65,840 |
66,590 |
66,630 |
66,140 |
66,890 |
66,900 |
66,440 |
67,190 |
67,200 |
| NET CASH FLOW |
22,700 |
21,230 |
19,150 |
16,750 |
21,680 |
19,620 |
26,630 |
27,150 |
19,930 |
21,400 |
27,840 |
26,430 |
| CLOSING BALANCE |
22,700 |
43,930 |
63,080 |
79,830 |
101,510 |
121,130 |
147,760 |
174,910 |
194,840 |
206,240 |
234,080 |
260,510 |
Statement of Cash Flow for Year 2&3
| Year 2 | Year 3 | |
| OPENING BALANCE |
260,510 |
507,810 |
| INFLOWS | ||
| Landscaping |
525,000 |
533,000 |
| Sale of goods |
138,400 |
139,550 |
| Snow removal contracts |
215,450 |
216,970 |
| Sale of long-term assets |
112,750 |
114,750 |
| Other commercial activities |
67,500 |
68,450 |
| TOTAL INFLOW |
1,059,100 |
1,072,720 |
| OUTFLOWS | ||
| Wages and Salaries |
130,000 |
131,050 |
| Loan Interest |
6,000 |
6,000 |
| Licenses |
14,400 |
14,400 |
| Other operating charges |
345,450 |
347,850 |
| Exceptional promotion costs |
315,950 |
316,850 |
| TOTAL OUTFLOW |
811,800 |
816,150 |
| NET CASH FLOW |
247,300 |
256,570 |
| CLOSING BALANCE |
507,810 |
764,380 |
Conclusions and Recommendations
Based on the analysis and the plan developed, it is clear that this business is viable considering that it seeks to create a strategic path for the business plan project. The business plan project focuses on ensuring that the business is well position in order to earn a market share in the industry upon the establishment. Additionally, the business plan has identified a major gap in the market, which is seeks to fill as part of its approach to enhanced service delivery approaches. Thus, this highlights the business venture as a viable plan that will be successful within the industry. The student may pursue this project plan, as it offers a guarantee of success within the first three years of operation, according to the financials presented in the previous section.
References
Beaver, G. (2002). Small business, entrepreneurship and enterprise development . Pearson Education.
Dell, O. E. (2015). How to Start a Home-based Landscaping Business . Rowman & Littlefield.
Gray, D. (2004). Start and run a profitable consulting business . Kogan Page Publishers.
Hall, D. (2005). Jump Start Your Business Brain: Scientific Ideas and Advice That Will Immediately Double Your Business Success Rate . Clerisy Press.
Kishel, G. F., & Kishel, P. G. (2005). How to Start, Run, and Stay in Business: The Nuts-and-Bolts Guide to Turning Your Business Dream Into a Reality . John Wiley & Sons.
Opiela, N. (2006). Keeping small-business cash flow on track. Journal of Financial Planning , 19 (7), 26.
Pepper, D. (2008). How to Start and Grow Your Lawn Care Maintenance Business . Lulu. com.
Suwardy, T., & Ratnatunga, J. (2014). Business Landscaping for Strategic Advantage: Evidence from a Multi-Sector Study. Journal of Applied Management Accounting Research , 12 (2).
