Business Plan Green land shop

VIET NAM NATIONAL UNIVERSITY OF AGRICULTURE
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BUSINESS PLAN
A Green Land Shop at VNUA

Students name:
Class: K60QTKDT
Lecture: Assoc. Prof. Dr. Tran HuuCuong


Table Contents


1. 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.
2. COMPANY DESCRIPTION
Name: Green Land Shop
Variety product: seed, bonsai, decorative plant, …
Location: 3 Street-An Lac- TrauQuy - Gia Lam -Ha Noi
Email:
Facebook: Green Land shop
Slogan: “Green land, green planet”
Motivation: Customer wants to relax after hard working day with airy space and
green tree
3. 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


4.

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 2 Weaknesses are do 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
5
5

Flower
Corner
5
5
4

Thếgiớih Vườnhồngn
oacảnh
ôngnghiệp
5
4
5

4
3
3

Green
Land
4
3
3


Prices
Service to
customers
Total

0.2
0.1

3
3

4
3

3
3

3
4

4
5

1

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

5.

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 4 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: 2 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: 3 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 1 week, 1 month. Donate some things
cute Enter the discount code. Buy 4 get 1.
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.
6. 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 1 floor about 20m2,
1 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 2 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.

7. 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

1
2

1

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

1

x

150

=

150

x

15k/hr

2.250.000
24.450.000

8. 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

2 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

0
20.000.000

0
5.000.000

0
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%