Business plan for growing flowers in greenhouses

* The calculations use the average data for the World

1. SUMMARY OF THE PROJECT

The goal of the project is the organization of a greenhouse for growing roses for the implementation of cuts of flowers in the Rostov region. The main target audience is concentrated in Rostov-on-Don. The target audience is small wholesale buyers (flower stalls, floristic salons, etc.) who sell their products among the population of the city aged 20 to 50 with an average income.

Over the past few years, the Russian flower market has been showing strong growth and is characterized by a tendency to increase the share of domestic products. This trend was stimulated by fluctuations in the exchange rate and the growth of customs costs. As a result, an increasing number of flower shops are seeking to find suppliers in the domestic market. Climatic conditions in Russia allow to grow flowers only in greenhouses year-round. Therefore, greenhouse floriculture farms are becoming an urgent area for business. Today this niche is free - in Russia only 7% of greenhouses are used for growing flowers.

Thus, the idea of ​​organizing a greenhouse for growing roses, as the most popular type of flower, is relevant. This business has the following advantages:

  • high rate of return (industry average - 70%);

  • return on investment within 6-8 months;

  • low threshold for entering the industry;

  • preferential terms for doing business related to agriculture;

  • relatively low initial costs.

For the implementation of the project uses its own land plot with a total area of ​​50 sq.m. A personal garden plot is located in the Rostov Region, 20 km from the enterprise is the city of Rostov-on-Don.

The initial investment is 511, 000 rubles. Investment costs are directed to the construction and equipping of greenhouses, advertising promotion, the procurement of seed and the formation of a working capital fund until the project reaches a return on investment. The bulk of the required investment (78%) falls on the construction and equipping of greenhouses. Own funds will be used to implement the project.

Financial calculations cover a three-year period of operation of the project. It is anticipated that after this time expansion of the business will be required. According to the calculations, the initial investment will pay off for the ninth month of operation. According to the results of the first year of operation, net profit of 703, 740 rubles and a return on sales of 24.5% are forecasted. Integrated project performance indicators are presented in table 1 of the business plan.

Table 1. Key performance indicators of the project

Project Performance IndicatorsUnits

Payback period (PP), months

9

Discount payback period (DPP), months

9

Net present value (NPV), rub.

662, 300

Return on Investment (ARR), %

12.36%

Internal rate of return (IRR), %

11.44%

Profitability Index (PI)

1.29

The profitability index is more than one, the net present value is positive and amounts to 662, 300 rubles, which indicates the investment attractiveness of the project.

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

The flower market of Russia is at the stage of active formation, both on the part of consumer demand and on the part of trade supply and domestic production. Intensive market development began relatively recently, and actually coincided with the beginning of the mass import of fresh flowers from abroad about 10-12 years ago.

The current range of supply and demand is formed precisely by importers of flowers. Russia is one of the largest importers of flowers, occupying 6th place in the world in terms of imports. At the end of 2016, Russia imported flowers worth 357 million dollars. Experts note that the crisis has changed the structure of the market - the share of domestic flower producers is growing every year.

Over the past few years, the flower market in Russia has shown rapid growth. The dynamic development of the flower market is evidenced by statistics on market volumes. With each year, market volumes increase - over the period from 2011 to 2015, the market size for cut flowers in real terms grew by 1/3.

In monetary terms, this increase is more noticeable due to higher prices for flowers. During the period 2011-2015, the market volume increased by almost 40%.

To date, the entire Russian market can be estimated at 160 billion rubles in monetary terms and 35.8 tons in physical terms.

According to analysts, the Russian flower market will continue to grow. According to the analytical company GLOBAL REACH CONSULTING, the real capacity of the domestic market is estimated at $ 40 billion.

Thus, the flower business is regarded as one of the most promising, despite the risk component. The average profitability of the flower business is constantly growing. However, the likelihood of risk increases. The main threats are associated with the pronounced seasonality of the business and the high probability of improper planning of sales volumes of flower products. Peaks in flower sales occur in February, March, May, September and December, and the summer months are considered the “dead” season, which can cause a significant reduction in profits. The economic crisis, the decline in incomes of the population can also negatively affect the flower business, reducing sales or shifting their emphasis to a more budget segment. In addition, the flowers are not stored for a long time - the maximum period for their sale is limited to one week. Another risk is heavy dependence on imports. To date

Russia ranks sixth in terms of imports of cut flowers, and the share of imports in sales is about 90%. However, there is a positive trend in the share of domestic products. It is planned that in the next few years, the share of domestic flowers in the market will increase by another quarter. According to analysts, in the next ten years, Russia will take second place in Europe in terms of imports after Germany. This risk consists in a possible increase in the exchange rate, the likelihood of a ban on the import of floral products from some countries, a tightening of customs policy, etc.

The largest share of imports is in the Netherlands - 44.7%, Ecuador and Colombia take second and third places with 36% and 12.8% respectively. The remaining countries account for only 6.5% of supplies.

In the structure of the supply of flowers, 43% falls on roses. The second most popular flowers are chrysanthemums - 24%. The three leaders are closed by carnations, the share of deliveries of which is 22%. In general, in recent years, the supply leaders have remained unchanged, however, there is a tendency to popularize exotic, unusual colors. Recently, flower shops are trying to diversify their range and attract customers with unique types of flowers.

In 2016, roses dominate in total sales in Russia - their share is 51%, followed by chrysanthemums (about 16%) and carnations (9%).

Market pricing is made up of two components - the amount of costs (taking into account the exchange rate, customs duties, gas price, etc.) and fluctuations in demand - an increase in demand entails an increase in prices. On average, the pricing policy in the flower market implies a wrapping of 100-300% of the purchase price.

The high dependence of the market on customs policy and exchange rates, as well as the higher cost of flower imports, have created a growing trend in the share of domestic suppliers. The choice in favor of a domestic manufacturer allows distributors not only to purchase products at lower purchase prices, but also to minimize supply costs. Thus, the flower growing business is being updated. According to data reflecting the structure of the flower market, the most popular flowers are roses. In this regard, growing roses seems to be one of the most cost-effective and successful types of business. A project to organize a greenhouse business on flowers can pay off within one season, and under favorable circumstances - in 2-3 months.

A feature of greenhouse flower growing is the possibility of year-round production, under any climatic conditions. Table 2 of the business plan presents the advantages and disadvantages of growing roses, which should be considered when planning a business.

Table 2. Advantages and disadvantages of the rose growing business

Benefits

disadvantages

  • simplicity of business processes: the availability of land; heated and lighted greenhouse; wholesale base buying flowers;

  • high rate of return (up to 300%, industry average –70%);

  • return on investment within 6-8 months;

  • low threshold for entering the industry;

  • small initial investments - approximately 500, 000 rubles .;

  • year-round production in any climatic conditions

  • uneven demand for products (peak on holidays);

  • the need to have knowledge on growing flowers;

  • dependence of costs on climatic and weather conditions (the warmer the climate, the less energy is consumed to maintain greenhouses);

  • government support for agriculture does not include support for flower greenhouses

Today, the flower growing segment is relatively free. In Russia, only 7% of the greenhouse is used for growing flowers. According to the association “Greenhouses of Russia”, by the beginning of 2017, the total area of ​​greenhouses in the country reached 2.3 thousand ha, of which floriculture enterprises occupy only 160-170 ha. The association has developed a development concept, which involves support for floriculture and an increase in the area of ​​greenhouses to 400 hectares. At the same time, experts note that among all agricultural crops grown indoors, color production provides the greatest profit.

An analysis of the flower market showed the relevance and relevance of the greenhouse rose growing business. The main advantages are high profitability, low threshold for entering the market and high demand for goods.

3. DESCRIPTION OF GOODS AND SERVICES

The main activity is greenhouse cultivation of roses for a cut. It is planned that the sale of products will be carried out through several wholesale buyers (flower shops).

The assortment of a flower greenhouse is determined based on a comparison of different varieties of roses. The main parameter that you should pay attention to when choosing varieties for growing is their productivity. The minimum yield of the variety should be at least 200 flowers per sq.m. per year to recoup the maintenance of the greenhouse. Also, the selection of varieties takes into account the conditions of cultivation and transportation, color, features of growing, preferences of customers.

Priority is given to those varieties that are most productive and less capricious when grown. According to practical data from Russian greenhouse complexes, it is possible to identify the most productive varieties of roses, the characteristics of which are reflected in table 3 of the business plan.

Table 3. Comparative characteristics of varieties of roses for growing in a greenhouse

Rose variety

Characteristic

Aqua

One of the most popular varieties for growing in greenhouse conditions. Large flowers, the bud is dense, has a characteristic pink-lilac staining. Productivity - at least 200 bushes per meter per year. The main disadvantage is that the variety is very tender, it does not survive severe frosts.

Haven (heaven)

The flowers are medium sized, deep pink. He does not like rain and cold, he is picky in his care, but provides an annual yield of at least 200 bushes per meter.

Talea

Large flower, shade “ivory” with a pink, smoothly scattering center. It grows equally well regardless of weather conditions, likes light. Productivity - 140-160 flowers / sq.m. in year.

Red Naomi

In the domestic market among red roses, this variety is a leader. Large flowers, red cherry color. Productivity 200-300 flowers per sq.m. in year. Disadvantage: pulls water strongly, which complicates the storage process.

Sphinx

The size of the bud is medium. The average terry petals. Flowering is constant and plentiful. The flower stalk reaches the commodity stage somewhat faster than in varieties with large buds. The variety has good frost resistance, hardy and unpretentious. Flowers are characterized by good transportability. Productivity: 300-340 flowers / sq.m. per year.

Avalanche (Avalanche)

The size of the bud is large, classic in shape, the color is white with a green undertone. Continuous flowering, resistance to disease and frost is above average. Productivity: 140-160 flowers / sq.m. in year.
Candy Avalange

(Candy Avalanche)

The size of the bud is large, the color is pale pink. A long flowering period, steadily survives both high and low temperatures. Productivity: 200-400 flowers / sq.m. per year.
Angie RomanticaBeautiful peony rose in a delicate creamy pink hue. Productivity: 150-180 flowers / sq.m. in year. Features: the rose is not subject to import, as it must be put up for sale no later than 2 days after cutting. A flower is cut only when the bud is fully opened. This feature complicates the process of growing and selling roses, so in the assortment it is presented in a minimal amount.

It is important to note that the selection of varietal base of roses for planting in the greenhouse is a long and responsible process. The selection of roses is a serious investment for a long time (about 4-6 years), so errors can lead to loss of profit and low productivity of the greenhouse. This is due to the seasonality of sales, which must be taken into account when planning planting and transplanting flowers. In each case, it is recommended to carry out professional selection of varieties. This business plan provides an approximate list of varieties selected according to the criterion of yield, plant endurance and bud color.

Thus, the assortment of floral products is represented by the following varieties of roses:

  • Red Naomi (red);

  • Candy Avalange (pink);

  • Avalange (white);

  • Sphinx (yellow);

  • Angers Romantic (peony, creamy pink).

In addition, you can consider the possibility of obtaining additional profit. For example, you can find the use of rejected and unsold colors, using them in various sub-projects.

  1. Painting roses. Recently, flowers painted in different colors are gaining popularity. Roses are most suitable for coloring. The technique of creating rainbow roses allows you to get original bouquets of bright colors. The painting process does not require special skills or special equipment. White roses are used for coloring.

  2. Petals and buds for decor. Rose petals can be used for sachets or wedding decor.

  3. Jam from rose petals. This is the most difficult option. For jam, you need to use the petals of tea roses grown without the use of chemistry.

4. SALES AND MARKETING

The peculiarity of the rose growing business is that the target audience is not the end consumer, but wholesale buyers, product distributors represented by various flower stalls and florist shops. At the same time, the advertising strategy should take into account the requirements of the end user in order to plan production and predict the volume of sales. Portrait of the final consumer of products: the population of the city aged 20 to 50 years with an average income.

Thus, the project’s marketing policy covers both end-user assessment and promotion methods among flower distributors. Advertising is aimed at establishing long-term cooperation and developing a customer base.

The most profitable way to sell finished products is to wholesale to large flower shops and markets. However, it will be quite difficult for a novice entrepreneur to immediately form distribution channels.

This will require:

  • analyze the competitive environment, assess the level of demand for products, develop their competitive advantages;

  • conduct a price analysis of the market and offer more favorable conditions as a supplier: lower cost, flexible system of discounts for wholesale buyers, guarantees, etc .;

  • release a catalog of finished products on paper and on the Internet. Create a list of potential buyers and send out commercial offers.

The advertising budget is 40, 000 rubles and consists of the following types of costs:

  • marketing analysis of the local sales market - 15 000 rubles;

  • creation of a catalog and printing of advertising material (including business cards) - 15, 000 rubles;

  • Direct marketing is a way to increase sales by sending sales letters to potential customers.

Effective direct marketing is ensured by narrowing the target audience and high-quality newsletter, which may be of interest to the client. The same group of expenses includes the costs of promotion on the Internet, the implementation of call-promotion and transportation costs - 10 000 rubles.

It should be noted that the search for new customers and the development of sales markets is an ongoing process, therefore, to implement this function, a sales specialist is required. His responsibilities will include attracting clients and working with them, as well as advertising support for the project and analysis of the effectiveness of using the advertising budget.

The competitiveness of the project is ensured by high quality products. In all advertising events, attention is focused on the merits of purchasing goods from a domestic manufacturer (saving transportation costs, lower prices, reduced risk of supply disruptions, guarantees, flexible system of discounts, high quality products, which is achieved by reducing delivery time).

When planning the volume of sales, production capacities should be taken into account, since the maximum volume of production depends on the area of ​​greenhouses, varieties of roses and their productivity, as well as the conditions in which flowers will be grown. The maximum production volume is calculated based on the area of ​​the greenhouse - 50 square meters. m., which hosts about 200 rose bushes, and an average annual flower yield of 250 flowers from 1 bush. Total, the yield of the flower greenhouse will be: 200 * 250 = 50, 000 slices per year, and about 4166 slices per month. This indicator should be guided when planning sales.

Demand for products is seasonal. Peaks of sales occur during the holiday months: February, March, May June, September, December. The planned sales volume is calculated on the basis of the sale of 100% of the crop at the average market (wholesale) price of 60 rubles / pc. To simplify the calculations, average indicators are used for the sales volume and price of various varieties of roses. The minimum price of 1 rose is 45 rubles / pcs, the maximum is 75 rubles / pcs.

Thus, the average revenue will amount to about 250, 000 rubles per month. In this business plan, it is planned to reach the declared sales volume for the third month of work.

Table 4. Planned sales

Product

Average planned sales, units / month

Average price per unit, rub.

Revenue RUB

one

Rose cut

4166

60

960

    5. PRODUCTION PLAN

    Organizing a rose growing business in a greenhouse involves the following steps:

    1) Registration with state bodies. The company is located on a personal plot of 50 square meters. meters, located in the Rostov region. 20 km from the enterprise is the city of Rostov-on-Don. Because the area of ​​the plot does not exceed 2 hectares, for the organization of business it is necessary to obtain only a certificate from the local administration that this plot belongs to the owner and is used for growing roses. In the event that in the future it is planned to open your flower shop or other business expansion, it is recommended to issue an IP.

    This project focuses on growing roses and positions itself as a personal homestead farm. Its activities are not taxed and does not require registration. This option is suitable for small production, which plans to cooperate with small distributors.

    2) Production technology. Технология производства предусматривает создание двух теплиц (общая площадь – 50 кв. метров) цветов, использование оросительного оборудования и оборудования для поддержания микроклимата в разное время года. Процесс высадки саженцев, некоторых операций по уходу, а также сборка урожая осуществляется вручную. Цикл производства следует планировать, исходя из того, что первый урожай ожидается через 6 месяцев после высадки саженцев. Высадка роз, как правило, начинается с февраля, что позволяет минимизировать затраты на отопление теплиц.

    Теплицы должны быть построены с учетом следующих особенностей:

    • для выращивания роз необходимо заложить фундамент, чтобы крайние грядки не промерзали в теплице. Наиболее предпочтительный вариант – ленточный фундамент глубиной 70 см;

    • на фундамент устанавливается каркас из металлопрофиля, на который закрепляется сотовый поликарбонат. Для хорошего прогрева делается односкатная кровля;

    • оптимальные размеры теплицы под разведение цветов: ширина – не более 5 м, длина – 3-20 м, высота – до 2, 5 м.;

    • цветочная теплица должна быть оборудована системой капельного орошения, а также отопительным оборудованием.

    Возведение теплицы является очень важным этапом организации бизнеса по выращиванию цветов. От того, насколько качественно и технологически грамотно будет сконструирована теплица, на 60-70% зависит качество производимой продукции, а значит – и успех бизнеса.

    Объем вложений, необходимых для создания теплиц и производственных помещений составляет 391 500 руб. Из них 200 000 руб. - средства на строительство теплиц, а 191 500 руб. – приобретение тепличного оборудования, перечень которого приведен в таблице 5 бизнес-плана.

    Подбор необходимого оборудования осуществляется на основе рекомендаций фермерских хозяйств. Так, для экономии средств на отопление, предусмотрено установить универсальный котел для обогрева, работающий на всех видах топлива. Для обогрева теплиц будет использоваться классическая водяная система отопления. Помимо этого, предусмотрен подогрев грунта, что позволит создать оптимальный температурный режим для подземных частей растений. Полив растений также автоматизирован – используется технология капельного полива.

    Освещение для теплиц обеспечено за счет светодиодных ламп, которые обладают спектральными характеристики, полностью идентичными солнечному свету. Благодаря этому, обеспечивается нормальный процесс фотосинтеза у растений. Кроме того, светодиодные лампы позволяют экономить до 60% электроэнергии и не нагреваются.

    Таблица 5. Перечень оборудования

    No.

    Name

    price, rub.

    Quantity

    Total cost, rub.

    Строительство теплицы

    one

    Теплица «Фермер»

    2000 (за 1 кв.м)

    50

    100, 000

    2

    Add. equipment

    50, 000

    one

    50, 000

    3

    Installation of equipment

    50, 000

    one

    50, 000

    Оросительное оборудование

    four

    Автоматическая система капельного полива

    4000

    2

    8, 000

    Оборудование для создания микроклимата

    five

    Котел для водяного обогрева

    10, 000

    2

    20, 000

    6

    Комплект подогрева грунта

    3500

    17

    59 500

    Оборудование для освещения

    7

    Лампа Led grow light 90w UFO

    7000

    12

    84000

    eight

    Other equipment

    20000

    one

    20000

    Итого:

    391 500

    3) Закупка и высадка саженцев. Посадочный материал необходимо закупать у проверенных поставщиков. Закупить саженцы сортовых роз можно в специализированных питомниках. Рекомендуется приобретать саженцы оптом, чтобы снизить их стоимость.

    Расчет необходимого посадочного материала осуществляется из расчета, что на 1 кв.м. можно посадить 4 куста. Соответственно, чтобы засадить теплицу площадью 50 кв.м., потребуется 200 кустов роз. Средняя оптовая цена за один куст составляет 240 рублей. Таким образом, расходы на посадочный материал составят 48000 рублей.

    Также следует предусмотреть расходы на биоудобрения, а также химикаты для обработки растений от болезней и вредителей – эта статья расходов составит 7 000 рублей.

    При закупке и высадке роз следует учитывать рекомендации по оптимальному соотношению сортов. Площадь теплицы, отведенная под красные и белые однотонные сорта, должна составлять 60% (с преобладанием красной розы). Цветная роза является ассортиментным цветком, поэтому на нее не нужно делать упор. Таким образом, примерное соотношение сортов в теплице будет таким:

    • Ред Наоми (красная) – 35%;

    • Кенди Аваланж (розовая) – 20%;

    • Аваланж (белая) – 25%;

    • Сфинкс (желтая) – 10%;

    • Анже Романтик (пионовидная, кремово-розовая) – 10%.

    Таким образом, общая сумма первоначальных затрат на оборудование теплиц составит 446 500 рублей.

    4) Поиск каналов сбыта продукции. Бизнес по выращиванию роз будет приносить стабильную прибыль в течение года только в том случае, если будут налажены каналы сбыта. Поэтому к этапу поиска клиентов и налаживания коммерческого сотрудничества необходимо уделить особое внимание. Основой успешных продаж является грамотная ценовая политика и гибкая система работы с клиентами.

    Оптовая продажа роз – это оптимальный вариант организации продаж. Но достичь желаемых объемов оптовой реализации на начальных этапах будет достаточно тяжело. В первое время основными клиентами станут небольшие цветочные павильоны и ларьки.

    5) Подбор кадров. Для функционирования двух небольших теплиц не потребуется нанимать много персонала. Достаточно технолога и рабочего, помогающего ему осуществлять уход за растениями. Подбирая кадры, следует выдвигать следующие требования к кандидатам:

    Технолог - высшее профильное образование, специализация защита растений (цветы) в защищенном грунте, опыт работы в аналогичной должности.

    Рабочий теплицы – среднее образование, навыки ручного труда, желателен опыт в тепличном хозяйстве.

    6. ORGANIZATIONAL PLAN

    Для обеспечения деятельности предприятия потребуется нанять рабочих, в число которых входят технолог, рабочий теплицы и начальник сбыта.

    Технолог несет ответственность за весь технологический процесс выращивания цветов; ежедневно следит за состоянием растений, климатическими условиями и исправностью оборудования; контролирует процесс ухода за растениями; ведет акты списания материалов.

    Рабочий теплицы осуществляет работу по подготовке теплиц к посадке, посадку и уход за растениями, содержит теплицы и прилегающую к ней территорию в образцовом санитарном состоянии, осуществляет фасовку готовой продукции.

    Предприниматель, исполняющий все управленческие и бухгалтерские функции, также занимается поиском и наладкой каналов сбыта, ведет переговоры с партнерами. Также участвует в сборе и фасовке продукции.

    Таким образом, штат предприятия включает 3 человека, в т.ч. предпринимателя. Общий фонд оплаты труда составляет 89 700 рублей.

    Таблица 6. Штатное расписание и фонд оплаты труда

    No.

    Position

    Salary, RUB

    Number of people

    PHOT, RUB

    Administrative

    one

    Торговый специалист

    20000

    one

    20, 000

    Industrial

    2

    Technologist

    27000

    one

    27, 000

    3

    Рабочий теплицы

    22000

    one

    22, 000

    Итого:

    69 000.00 ₽

    Social Security contributions:

    20 700.00 ₽

    Total deductions:

    89 700.00 ₽

    7. FINANCIAL PLAN

    Финансовый план учитывает все доходы и расходы проекта по выращиванию цветов, горизонт планирования составляет 3 года. Планируется, что по истечении этого периода потребуется расширение бизнеса.

    Для организации бизнеса на выращивании и продаже цветов необходимо рассчитать объем первоначальных инвестиций, в которые входят: затраты на приобретение оборудование, рекламное продвижение на рынке, формирование оборотных средств, за счет которых будут покрываться убытки начальных периодов.

    Первоначальные инвестиции для теплицы по выращиванию роз составляют 511 500 рублей. Из них 78% приходится на строительство и оснащение теплиц, на закупку товара – 11%, на рекламу – 7%, а на оборотные средства 4%.

    The project is funded by equity. Основные статьи инвестиционных затрат отражены в таблице 7 бизнес-плана.

    Таблица 7. Инвестиционные затраты

    No.

    Name

    Amount, rub.

    The property

    one

    Строительство теплиц

    200, 000

    Equipment

    2

    Тепличное оборудование

    191 500

    Intangible assets

    3

    Starting advertising campaign

    40, 000

    Current assets

    four

    Seedlings, fertilizers, etc.

    55, 000

    five

    Current assets

    25, 000

    Total:

    511 500 ₽

    Variable costs of the greenhouse economy consist of the spent capacities for irrigation, heating, as well as consumables (seedlings, fertilizers, etc.). In this case, utility costs are categorized as variables. To simplify financial calculations, the value of variable costs is calculated based on the wholesale cost of 60 rubles / pc and a fixed margin of 300%.

    Fixed costs consist of utility bills, payroll, advertising costs, depreciation and bio-fertilizer costs. The amount of depreciation in this business plan is determined by the linear method, based on the useful life of fixed assets of 3 years.

    Table 8. Monthly expenses

    Name

    Amount, rub.

    Salary and insurance deductions

    89700

    Advertising, marketing

    6000

    Depreciation

    11000

    Unexpected expenses

    10, 000

    Biofertilizers

    3300

    Total expenses:

    120, 000

    Thus, fixed monthly expenses of 120, 000 rubles were determined.

    8. EVALUATION OF EFFICIENCY

    The payback period of a project for growing flowers in greenhouses with an initial investment of 511, 500 rubles is 8-9 months. The net monthly profit of the project upon reaching the planned sales volumes will be 67, 962 rubles. Reaching the planned sales volume is planned for the third month of operation. The return on sales in the first year of operation is 24.5%. The annual net profit for the first year of sales will amount to 703, 740 rubles.

    The net present value is positive and equal to 662, 300 rubles, which allows us to talk about the investment attractiveness of the project. The ROI is 12.36%, the internal rate of return exceeds the discount rate and is 11.44%. The yield index is greater than one and equal to 1.29.

    9. POSSIBLE RISKS

    To assess the risk component of the greenhouse rose growing project, it is necessary to analyze the external and internal factors. External factors include threats related to the economic situation in the country and markets. To internal - the effectiveness of managing the organization.

    Among the internal risks are:

    • flowers are perishable goods that cannot be stored for long. In order to avoid losses, it is necessary to constantly monitor the market and forecast demand;

    • errors in estimating sales volumes, which can lead to disposal of products. It is possible to reduce the likelihood of this risk by creating a clearly streamlined sales system;

    • product quality that does not meet the stated requirements and market requirements: constant monitoring of quality and identification of deviations is required (non-compliance with the technology or poor-quality seed);

    • errors in the cultivation process, on which product quality and productivity depend. Permanent monitoring, high-quality work of the technologist will reduce the risk.

    External factors include:

    • the presence of a variety of pests that can not only spoil, but also completely destroy the crop of flowers. This can be avoided if continuous pest protection is provided;

    • climatic conditions that complicate the process of growing flowers and incur additional costs (in the case of a cold winter - for insulation of the premises, in the case of an arid, hot summer - for watering). This risk is the most specific for this type of business and is almost not subject to management. The only thing that an entrepreneur should do is to have a supply of funds in order to timely respond to the problem and eliminate it;

    • high level of competition in the market. It is possible to reduce this risk with a well-thought-out marketing strategy and the achievement of certain competitive advantages (due to a more favorable price, special conditions, guarantees, additional services);

    • increase in seed prices - the risk is reduced due to the margin margin of the enterprise. Due to systemic nature, the problem is not a critical factor;

    • cyclicality of the flower market and episodic demand (seasonality). It is not possible to completely eliminate the risk, but it is possible to smooth out its impact, opening up new business segments;

    • termination of cooperation, entailing financial losses (lower profits, higher costs for finding new partners, etc.) This problem may occur due to inadequate product quality, supply disruption, the appearance of a competitor who is ready to offer more favorable conditions. One way or another, an entrepreneur should always take this risk into account and create such conditions of cooperation that would be beneficial to both parties.

    Evgenia Yurkina

    (c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019


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