BUS115: High Five Shop Business Plan - Spring 2019-2020

This business plan outlines the strategy for a gift and flower shop, "High Five," operating in Kuwait. It begins with an executive summary and an introduction to the business, detailing the products offered, which include flowers, gifts, and seeds. The plan identifies the target market, emphasizing demographic, psychographic, and behavioral segmentation. A competitor analysis examines online and local shops in Kuwait, such as Q8eGifts and Bleems. The business will adopt a market penetration strategy. The management structure will be flat, consisting of two partners. The plan includes goals, objectives, revenue forecasts, marketing plans, and financial projections. The financial data shows revenue projections for three years, along with anticipated costs and operating expenses. The document concludes with references.

Small business management
3/21/2020

Management 1
Executive summary
In the growing environment, most of the people are coming up with the business idea which
makes them document the business plan for forming appropriate strategies. The report is
prepared on Gifts and flower shop which is known with the name of “High Five” shop. The
findings show the products that are offered to clients. The findings of the report show that
business will adopt the multi-targeting strategy and market penetration strategy. The analysis of
the business competitors and their strategy is considered for the future. The management
structure of the business is decided which is a flat structure. Also, the goals and objectives of the
business are prepared which are focused on marketing and finance.

Management 2
Contents
Introduction......................................................................................................................................3
Description of the business..............................................................................................................3
Target market...................................................................................................................................4
Analysis of Competitors..................................................................................................................5
Business strategies...........................................................................................................................6
Description of the product...............................................................................................................7
Management structure.....................................................................................................................7
Goals/Objectives/Strategy...............................................................................................................8
Revenue Forecasts.......................................................................................................................8
Marketing Plans...........................................................................................................................9
How Sales Are To Be Made........................................................................................................9
Advertising and Sales Promotion..............................................................................................10
Manufacturing Plans..................................................................................................................10
Financial Plans...........................................................................................................................11
Financial Analysis.........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Management 3
Introduction
A business plan is considered as the formal written document that consists of the business goals
and methods on how all these goals can be attained within the set time frame (McKeever, 2016).
The business idea that is considered for this plan is about Gifts and flower shop. This shop will
provide different types of gifts for different occasions and also fresh flowers to the customers.
Considering the business idea, the plan is presented below which include the description of the
business, target market to whom the products will be offered, the competitors who are present in
the market and also the strategies that the business will adopt are presented below. Also, the
development of the product is described which shows the ways business will use for their new
business. The business plan consists of the management structure of the business which will
reflect owners involved in the business. The plan will allow deciding goals, objectives, or
strategy which is required for the business to pre-decide. The forecasting for the revenue will be
done for the business. The marketing plans, sales that are required to be made, promotion of the
products and sources of finance in financial plans will be explained in the report.
Description of the business
The business will be offering the products and services which include gift and flower shop. The
name of the business will be “High Five” gifts and flowers shop. This “High Five” shop will be
present in Kuwait local market. The unique value that this shop is offering to their customer is
awareness and motivation about the indoor and outdoor planting by offering them seeds (Ginter,
Duncan and Swayne, 2018). In the current environment, the environment is one of the major
concerns which are considered by offering the seeds to the customers which will help them to
grow the plant most quickly.

Management 4
The products that will be an offer by the business include the wide range of the seasonal flowers
which are customized and designed in a manner that it grabs the attention of the customers. The
categories of the flower include the unique containers which offer the distinctive vases majorly
for the discretionary buyer or a particular occasion and also considered as the affordable option
for the regular purchase. The products will also include the house plants which will allow the
households to plant their places as they want.
The products will include gifts for kids, couples, youth depending on their needs. The gift items
will include the traditional cultural gifts and unique western gifts which will allow the people to
purchase the products. The store will include the stocks well-designed gifts as well as accessories
which are often the higher end of the price bracket.
Target market
A target market is a group of the clients among the business that are serviceable present market
at which the High Five aims its marketing efforts and resources. The target market for the
business will depend on the different segments of customers (Rothaermel, 2016).
The segmentation includes the group of people which is done based on demographic
segmentation, geographical segmentation, psychological segmentation, and behavioural
segmentation (Ekanem, 2017). For this new business, the business will select the multi-targeting
segmentation for which they will select the demographic segmentation, behavioural and
psychological segmentation. The business will target based on the age group which will include
more of the people that fall within the age group of 18-25 years and 25-40 years people. This
includes the people with the middle and high-income group who will purchase gifts and flowers.
In addition to this, the primary target of the High Five shop include the people with the

Management 5
personality traits and have an attitude of buying gifts and flowers for the loved ones which
include the family and friends members. Apart from the demographic and psychographic
segmentation, the business will focus on the behavioural segmentation that focuses on the
purchasing and spending habits of the customers. Different customers purchase the gift and
flower on occasion as well as regularly. In the gift items, different companies manufacture the
gift products which are the preference of the users for both the personal and corporate gifts.
All these targeted customers will purchase the flowers, gift, and seeds which will help them in
attaining the profit which is the intention of the business. The wide range of the targeted
customers will help the business to grab the attention of different customers and to generate
loyalty among the market (Lasserre, 2017).
Analysis of Competitors
In the market, the business needs to analyse the competitors that can influence their working and
even affect the loyalty of the customers towards the High Five shop. In Kuwait, the business will
find online stores like Q8eGifts who are offering online gift services to the customers. In
addition to this, there is a wide range of local flowers and gift shops who offer flowers and gifts
for personal and corporate purpose depending on the needs of the customers. Another competitor
which is present in the market is Bleems. Bleems Company is working to complete its mission
which is to celebrate life and making every moment as a special, happy, and memorable one
(Bleems, 2020). The company believe that it feels fine fresh flower arrangement that meets the
eye. The quality of the gift, as well as the flower, is good which ensure that they are meeting the
purpose of purchase. These are the few reasons due to which most of the customers buy the

Management 6
products from Bleems that is present in Kuwait. This will give the competition to the company as
they will find the issue in making the space.
On the other hand, Q8eGifts is another company who is offering gifts and flowers to the
customers in Kuwait through the online store. The best thing about the company is that they can
easily deliver the products on time to their clients due to which the customers visit (Q8eGifts,
2020).
Business strategies
Shortly, once the business will get establish effectively then they will adopt the growth strategies
which will help them in making their brand space in the market. The porter’s business strategies
will be used by the High Five shop in which they will apply the market penetration strategy. The
market penetration strategy is considered as the product market where all the company seeks
with the motive to get a higher dominance within the market. The aim behind the use of this
strategy is to focus on capturing a large share of a present market (Ansoff, Kipley, Lewis, Helm-
Stevens and Ansoff, 2018). The business will generate awareness in the market with the help of
the promotion techniques. The business will make use social media platform and television
advertisement which will help them to generate awareness in the market about the products and
services that will be an offer by the business in the market. This will increase generating
awareness about the prices of the products, offers, information about the availability of seeds and
many others.
The use of this strategy will allow the business to avail the maximum benefits. The benefits will
include quick diffusion and also the adoption of the product in the market. It will also help the
High Five shop to deal with the competitors who are present in the market.

Management 7
Description of the product
The product that is developed as the shop will source the followers from the different vendors
who will provide different kinds of flowers. All these flowers will be essential for making the
bouquet which will allow the customers to give a gift to their dear ones or other on occasions.
Also, for gifts there will be the sourcing of those gifts from the different vendors who offer
unique and attractive gifts that are essential for the youth and they will use it for attaining their
demand (David and David, 2016). The business will sell these flowers and gifts with the help of
the store which will allow them to offer quality and directly offer personalised services by
motivating them for planting and offering them seeds for home.
Management structure
In terms of marketing, the management structure is the way through which the business will
manage the hierarchy of the business. The company will maintain a flat organisation structure as
it is a new business. The flat organisation is a structure that is present with the few or no level of
the management among the staff and management level personnel. This structure will be adopted
which will include the owners (Hill, 2017). There will be a partnership between the two people
who will run the business.
One of the owners of the business will have the experience of working with the gift and flower
shops for more than 5 years. The owner was working as the supervisor for the flower department
where the different types of flowers used to collected and distributed in the market to the shops
for the further selling. On the other hand, another owner who will partner of the business has the
work experience of the 3 years in the gift shop from where he learnt all the work.

Management 8
Goals/Objectives/Strategy
In the business plan, one of the major decisions of the High Five Shop is to form the different
goals and objectives that will help them to meet the goals of the business (Meyer, Neck, and
Meeks, 2017). The below given will be the goals, objectives, and strategies of the business: -
Revenue Forecasts
The business that is new in the market will need to forecast for the revenue because this is one of
the vital element due to which the business came into existence (Entrepreneur, 2020). The
business will find revenue forecasting importance as it helps to manage the production schedule
which is required to prevent the bottlenecks that might lead to lose sales.
Revenue forecast Year 1 Year 2 Year 3
Kuwait
Dinar
Kuwait
Dinar
Kuwait
Dinar
Sales (Revenue)*
83,000.
00
91,300.
00
100,430.
00
Cost of Goods Sold
Opening inventory
20,500.
00
22,550.
00
24,805.
00
(plus) purchases
9,500.
00
9,975.
00
10,473.
75
(minus) closing Inventory
Total Cost of Goods Sold
30,000.
00
32,525.
00
35,278.
75
Gross Profit
53,000.
00
58,775.
00
65,151.
25
Operating Expenses
Materials and Supplies
1,440.
00
1,497.
60
1,557.
50
Wages: Employees’ Salaries
12,000.
00
12,480.
00
12,979.
20
Packaging expenses
2,000.
00
2,080.
00
2,163.
20
Bank Charges
1,080.
00
1,123.
20
1,168.
13
Rent
10,500.
00
11,025.
00
11,576.
25

Management 9
Maintenance expenses
4,020.
00
4,180.
80
4,348.
03
Total Operating Expenses
31,040.
00
32,386.
60
33,792.
31
Earnings Before Interest and Taxes
21,960.
00
26,388.
40
31,358.
94
Less Interest 5000 5000 5000
Net income
16,960.
00
21,388.
40
26,358.
94
The financial projection above shows the revenue forecast for the company in which the revenue
of the company is increasing. It is assumed that sales of the company will increase by 10 people
every year and according to that, the revenue of the company will also tend to rise. Along with
this, the expenses are expected to rise by 4% and rent at 5%. It is predicted that the business will
attain the revenue for year 1 and it will continue for the remaining years.
Marketing Plans
Marketing plan of the business is considered as the marketing strategy through which the
business will promote the products and services that they are offering to the customers (Madura,
2020).
1. The marketing goal of the High Five business grabs the 10% market in the coming 3
years for which they need to promote.
2. The marketing goal of the business is to make use of the different social media tools for
promoting products and services.

Management 10
How Sales Are To Be Made
High Five Shop will sell their products through shops in which they allow the customer to visit
and select the best as per their needs. The customers will be allowed to purchase the flowers and
gifts from the market. In addition to this, the shop can also supply the products at home to some
of the regular basis customers and also to the nearby places which are considered as value-added
service provided by the company (Shapiro and Hanouna, 2019).
Advertising and Sales Promotion
To attain the marketing goals, the business will make use of the advertisement and sales
promotion techniques which will help them to generate the awareness in the market about the
product and services that they are offering to the clients (Rothaermel, 2016). High five shop will
make use of advertisement for generating awareness in the market. In the advertisement, the
business will make use of the print media in which they will print the pamphlets, broachers and
others to distribute the same in the nearby area to get the attention of the customers. In sales
promotion, the first 50 customers will get the benefit of the 40% off on the products which will
grab the attention of customers.
Manufacturing Plans
The manufacturing plans of the High Five shop are not much as they source all the products and
then they sell to the customers. The customers who will purchase the gift items then it will be
gift packed. If the business will go well in the next 5 years, then the company will manufacture
its own gifts and sell it among the customers.

Management 11
Risk
The risk that is present is related to the success of the shop as there is a competition of the
company who are selling the products through online mode (Hitt, Ireland and Hoskisson, 2016).
Thus, to reduce such reason the business will form more of the personal relationship and also
they will bring the changes in their business as per the requirements of clients which will include
online services of the product.
Financial Plans
The financial plans of the business will be to attain the high revenue which is possible by
reducing the expenses. The improvement in revenue is essential as this is the only way through
which business will continue with the operations (Shapiro and Hanouna, 2019).
Financial Analysis
The resources include the financial element that is required to be considered by the business for
creating a successful business plan. The sources of funds will be possible from the personal
amount and also for the loan that will be gathered for running the operations of the business.
SOURCES OF FUNDS Amount
Personal amount
85,000.
00
Loan/debt
115,000.
00
Total Sources of Funds
200,000.
00
This funding will help the business to conduct the purchasing and to pay off the expenses which
are required to attain the goals of the business.