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    Managing the Flower ShopUnit: Floriculture

    Problem Area: Floral Design

    Lesson: Managing the Flower Shop

    Student Learning Objectives. Instruction in this lesson should result in students

    achieving the following objectives:

    1 Describe the qualifications to be a florist.

    2 Describe the various types of floral shops.

    3 Explain the basics about good location and starting a floral shop.

    4 Analyze the importance of marketing, promotion, and sales.

    5 Describe effective packaging and delivery.

    6 Explain the major areas of an effective floral shop floor plan.

    List of Resources. The following resources may be useful in teaching this lesson:

    E-unit 030068:Managing the Floral Shop. Danville, IL: CAERT, Inc.www.mycaert.com

    Lesson: Managing the Flower Shop

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    List of Equipment, Tools, Supplies, and Facilities

    Writing surface

    Overhead projector

    Copies of sample test

    Visuals from accompanying masters

    Copies of student lab sheets

    Terms. The following terms are presented in this lesson (shown in bold italics):

    advertising

    bucket shop

    business plan

    carriage trade shop

    clearinghouse

    demographic study

    displays empty-nest couples

    fictitious name statement

    filling florist

    franchise shop

    full-service shop

    gray market

    large-volume florist

    market mix

    marketing

    party/wedding florist

    promotions

    resale license

    satellite shop

    sending florist

    stem shop

    up-selling

    visual merchandising

    Interest Approach. Use an interest approach that will prepare the students for thelesson. Teachers often develop approaches for their unique class and student situations. A

    possible approach is included here.

    Have the students create a list of the various floral shops in the area. Havethem list what the shops have in common and how they differ. Ask them to tell

    you what it takes to run a florist business.

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    SUMMARY OF CONTENT AND

    TEACHING STRATEGIES

    Objective 1: Describe the qualifications to be a florist.

    Anticipated Problem: What skills must I possess to become a florist?

    I. Most people enter the floral trade because they enjoy flowers and plants. Working withflowers and plants brings joy and rewards. However, opening a business requires trainingand knowledge about the industry, training in floral design, and the ability to spot andkeep up with new trends. These skills can be obtained in a variety of ways, includingcollege courses, working in floral shops, and attending training sessions offered by tradeand professional organizations.Major skill areas include:

    A. Business knowledge

    1. Business knowledge keeps a florist in business. A florist needs to developknowledge of advertising, marketing, buying, inventory control, effective pricingstrategies, computer skills, bookkeeping and accounting, and employeerelations.

    2. When partnering with someone in business, two individuals can take advan-tage of each others strengths to offset their individual weaknesses.

    B. Personal skills

    1. Personal skills include honesty, trustworthiness, drive, energy, patience, tact,compassion, consistency, and integrity. These skills will result in an ethicalbusiness operation.

    2. These skills cannot be taught in the classroom, but a people person who is agood communicator is usually found in a successful business operation.

    C. Knowledge of floral products

    1. A potential florist must possess knowledge of floral products.

    2. This includes an understanding of plant care and handling, design principles,display techniques, and overall creativity.

    Begin the lesson with an interest approach. Share the learning objectives withthe students and introduce terms. Lead a discussion on the qualifications to bea florist. Use VMA during the discussion.

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    Objective 2: Describe the various types of floral shops.

    Anticipated Problem: What are the various types of floral shops?

    II. There are several broad categories in which most floral shop operations can be placed.They are as follows:

    A. Full-service shopThis is the traditional floral shop. It offers a wide variety ofservices and products to meet the consumers needs. Usually a member of one ormore wire services, the full-service shop does wedding and sympathy work and fills

    various other needs. The successful full-service shop owner is usually a goodbusinessperson and prominent member of the community.

    B. Large-volume floristA large-volume florist sells large quantities of design workbecause of a well-executed marketing plan. The owner is an expert in planning,budgeting, financing, and training. This type of shop offers many of the servicesthat a full-service shop offers but does many large-quantity orders. Large-volumeflorists are often found in big cities and work with corporate accounts, such as

    hotels and businesses.C. Party/Wedding floristThis type of floral shop is considered a specialty shop

    that has restricted its work to event planning for parties and weddings. Onecaution about operating this type of shop is that the market area must be able tosupport the specialization if the business is to survive. Another key to success isworking with other businesses in the specialty area of parties and weddings. Thisrequires the owner to be a good communicator, creative, and dramatic in carryingout the plans requested by the consumer.

    D. Carriage trade shopThis type of shop provides extensive, personal service to alimited, elite clientele. It offers the services of a full-service shop but in a lavish,

    upscale manner to a limited customer base. The key to this shops success isdeveloping a name and reputation with the desired clientele. The ability tocommunicate with the customer is critical.

    E. Stem shop or bucket shopThestem shopis a cash-and-carry operation thatoffers a variety of flowers and foliage by the stem or bunch. It is often referred toas abucket shop because the flowers are sold directly out of buckets or largecontainers. One key to this type of business is a heavy traffic area. Stem shopsare commonly found in grocery stores or malls.

    F. Satellite shopThis is a second shop operated by a full-service shop, commonlyin a strip mall or shopping mall. Satellite shops might also be found in hospitals oroffice buildings. Increased exposure and traffic are the main reasons why a full-service shop might open a second location. The survival of a satellite shoprequires the owner to have skills in planning and organization.

    G. Franchise shopA franchise shop is a floral shop purchased from a parentcompany and operated according to that companys specifications. The shopowner pays a percentage of gross sales to the parent company for use of its nameand business services. There are not many shops of this type, because the initial

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    cost of purchasing the franchise can be quite high. However, the advantage of afranchise is name recognition and demonstrated services and products in themarketplace.

    Require the students to read about the different types of floral shops. Lead adiscussion on the specific services offered by the different shops. Build a

    PowerPoint presentation to be used during the classroom discussion.

    Objective 3: Explain the basics about good location and starting a floral shop.

    Anticipated Problem: Where should a floral shop be located, and what basic legalrequirements need to be met before a shop can open for business?

    III. Many decisions must be made when starting a floral business. A business plan needs tobe developed. The location must be identified, and legal requirements must be met.

    A. Starting a floral shop begins with a business plan. Abusiness planis an

    organizational tool that states the goals of the business and estimates thefinancing needed to start the business. The business plan is a document requiredfor securing loans.

    B. The key to finding the best location for a shop is to conduct research about thearea where the business is to be started. This research should include thepotential state, city, and neighborhood. Competition, population and populationtrends, traffic flow, parking, visibility, and wholesale florist locations must beconsidered. The prospective owner needs also to evaluate the economic anddemographic information about the potential area.

    1. Ademographic studyis an investigation of the size and distribution of popu-

    lation in a specific area. It includes information on age, education, and incomelevel.

    2. This allows the future florist to see if there are trends, likeempty-nest cou-ples(people under 65 who no longer have children at home and are morelikely to spend money on flowers). The gray marketconsists of people over65, who typically spend less on flowers because of their fixed incomes.

    C. Some basic legal requirements must be met before operations begin. Licensesand permits to run a business must be obtained from state, county, and localgovernments. These vary, so government officials should be consulted todetermine the specific needs for the area. There are five important licenses that aflorist needs to obtain:

    1. Afictitious name statement is a document that must be filed with thecounty to register the business name and prevent another business in thesame county from using that name. There is a filing fee, and a notice must bepublished in county newspapers.

    2. A federal employer identification number (FEIN) must be obtained if the floristis going to have employees. This number will be used by both the Internal Rev-

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    enue Service and the Social Security Administration as its identification sourceon tax returns and other required filings. If the business does not have employ-ees, the owners social security number is used.

    3. Aresale license, or tax number, is obtained so that the required sales tax canbe collected and wholesale items can be purchased without paying sales tax. Itis applied for through the states revenue department. A county resale license

    might also be required.4. Professional licenses are issued by the state agriculture department, register-

    ing a business to meet certain state regulations. They are not required by allstates.

    5. Special licenses are issued for special services a florist might provide, such asa liquor license and a pesticide application license. Helium tank owners andoperators are often required to have licenses that would fall under thiscategory.

    Have students gather information, including demographics, about a certain areathat might support a floral shop. Have them conduct the research using the

    Internet or other sources to determine a good location. The students shouldsearch for information about licensing and what legal requirements exist in thearea. Limit the inquiry to the state or surrounding area so that the informationmight be usable for the students in the future. Use VMC to illustrate the variousfactors to be considered in deciding where to locate a shop.

    Objective 4: Analyze the importance of marketing, promotion, and sales.

    Anticipated Problem: How does one market and sell floral products?

    IV. Marketing is an essential part of the retail business world.

    A. Marketingis the process of selling a product and/or providing a service theconsumer wants or needs. The goal of marketing is to determine the mosteffective market mix and market strategy for a given consumer base. A market

    mixis a combination of activities and shop characteristics that attracts andretains customers. Market mix will vary from one shop to the next based on thenature of the customer base. There are five guidelines for effective marketing:

    1. Define specialties or strengths of the particular floral business.

    2. Define the target customers or target market.

    3. Determine the products the customers want to buy.

    4. Determine how to communicate the message.

    5. Decide the specific products and services to offer the target market.

    B. Promotions encompass a variety of activities that lead to public namerecognition. Promotions might include advertising, community involvement,contests, punch cards, coupons, demonstrations, educational articles, logos andother images, window displays, publicity, signs, and effective selling techniques.

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    C. Advertisingis probably the biggest promotional activity that florists use daily.Advertising can vary from print, to voice, to video, to the Internet. Placing anadvertisement in the telephone directory is popular because the majority of ordersare placed by telephone. An affiliation with a wire service is an important aspect toinclude in advertising. Wire services include FTD, Teleflora, Florafax, and others.

    The florist who sells a wire service order is called the sending florist. The order is

    sent via phone, fax, or computer. Thefilling florist

    takes the order and then fillsand delivers it. Accounts are settled monthly through the wire serviceclearinghouse, which determines which florists must be billed or debited andwhich florists must receive checks or credits based on order activity.

    D. Smart selling is invaluable to the retail florist industry. A salesperson must beversatile in handling a variety of situations, from weddings to funerals. He or shemust have knowledge of flowers and must be friendly and personable to project apositive image for the shop. Salespeople need to be good listeners as well aseffective communicators. One valuable skill that a salesperson can develop is up-

    selling, a technique of persuading a customer to make a larger purchase thanoriginally planned. This is accomplished by offering a range of prices, not just the

    lowest, and suggesting the purchase of related products.

    Present the information above in a lecture/discussion format. Reinforce thediscussion with VMD. Have the students create an advertisement for a floral

    shop that would run for a certain holiday season. You could also cover theinformation while selling products from a greenhouse.

    Objective 5: Describe effective packaging and delivery.

    Anticipated Problem: How is packaging and delivery handled effectively?

    V. Packaging plant materials has a two-fold purpose: protection of the design andadvertising and promotion of the shop image. On very cold days, items should bedouble-packaged, and the delivery vehicle should be warmed up.

    A. Packaging materials to protect design work include sleeves, bags, boxes,cellophane, tissue, paper, or any combination of these. A package should be neatwhen finished and held together with tape or staples. Ribbons and accessoriesmight be included, and the package should be finished off with a shop sticker.

    B. Delivery is an essential part of the floral business. It is the link between thedesigner and the customer. Efficient routing and delivery schedules must be kept.

    The delivery person must be good at maintaining the delivery vehicle and loadingthe items. He or she must be timely and safe, neat in appearance, and courteous.Items to be delivered must be secured in the vehicle. Various ways ofaccomplishing this include using sandbags, bricks, boxes, and plastic carriers.Placing tall items on the side and shorter ones in the middle of the vehicle willhelp in effective loading. Deliveries fall into several categories, and charges forthem will vary.

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    1. Regular deliveries are those made in an area predetermined by the shopowner.

    2. Out-of-area deliveries are those made outside of the predetermined area. Theycarry larger delivery charges.

    3. Timed deliveries are those made at times determined by the customers (usu-ally for birthdays and anniversaries).

    4. Special deliveries are those made for customers who forgot or were not awareof floral needs, making last-minute delivery trips necessary. Additional chargescould apply.

    When making sales in the school, the students should create the packaging ofproducts. A good time to do this is at Valentines Day. As a class, they candevelop the packaging materials needed when selling roses or carnations inbundles. Use TME to reinforce the different delivery categories. LSA will

    provide a good application for practicing the packaging of cut flowers.

    Objective 6: Explain the major areas of an effective floral shop floor plan.

    Anticipated Problem: What primary areas are needed in a floral shop floor plan?

    VI. There are four major areas to consider when developing a floor plan.

    A. The sales area should contain a display window and have a good entry spot thatinvites the customer into the store. The sales area needs room for display units,display coolers, tables, shelves, a sales counter, a cash register, and possibly aplant section. Lighting should be considered, along with the flooring, wallcoverings, and ceiling treatments. Traffic patterns should encourage the customer

    to look at all available merchandise before making a purchase. Effective displaysin the sales area will promote a greater volume of sales.

    1. Visual merchandisingis a coordinated plan to attract a customer to the floralshop to make a purchase.

    2. Displays are one component of visual merchandising. They attract attention,create interest, and motivate the customer to want to buy the items displayed.

    B. The design area, or workroom, needs to include design benches, easy-accessstorage for containers and supplies, an area for receiving incoming flowers, and anarea for outgoing deliveries. A storage cooler should be located in this area. Thecooler should be large enough to hold the increased volume of flowers neededduring busy seasons. Good lighting, accessible water, drainage, and good shelvingare important to a design area. Design benches should be at a height comfortablefor the florist to work at while standing.

    C. A wedding consultation and/or funeral consultation area should be located whereconversations will be undisturbed by phones and other people. A table and severalchairs should be provided. An area neutrally decorated and furnished can serve

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    the needs for both types of consultations. Some funeral ordering will take placeover the phone.

    D. The final area is the office. This area should be convenient for supervision of boththe sales and design areas. It should be equipped with as much modern officeequipment as possible, including computers, telephones, and fax machines. Itshould have Internet capabilities.

    Reinforce the content by displaying VMF. Then, have students develop a floorplan for a shop. Consider obtaining the dimensions of an available building intown and have the students draw up a floor plan for that site. Invite a florist toappear as a guest speaker to discuss the many aspects of operating a floralbusiness.

    Review/Summary. Use the student learning objectives as the basis for review andsummary. Have students explain the content associated with each objective. Use theirresponses in determining which objectives and concepts need to be reviewed or taughtfrom a different angle. The anticipated problems can be used as student review questions.

    Application. Use the included visual masters and lab sheets to apply the informationpresented in the lesson. An advanced class should perform the basic tasks necessary toestablish a shop in the area. They should conduct research on the demographics of anarea and then develop a business plan that covers introductory material and business data.Financial data might also be included, depending on how in-depth the exercise needs tobe. LSB forms the outline for developing a business plan.

    Evaluation. Evaluation should be based on student comprehension of the learningobjectives. This can occur during instruction, review, or later as students apply the

    information. The sample written test can also be used.

    Answers to Sample Test:

    Part One: Matching

    1. a

    2. i

    3. f

    4. k

    5. b

    6. h7. l

    8. d

    9. c

    10. j

    11. g

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    12. e

    Part Two: Multiple Choice

    1. b

    2. b

    3. a

    4. c

    5. d

    Part Three: Short Answer

    1. Research should include the potential state, city, and neighborhood. Competition,population and population trends, traffic flow, parking, visibility, and wholesale floristlocations must be considered. The prospective owner needs also to evaluate theeconomic and demographic information about the potential area.

    2. sales, design, consultation, office

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    Sample TestName ________________________________________

    Managing the Floral Shop

    Part One: Matching

    Instructions:Match the term with the correct definition.

    a. carriage trade shop g. gray marketb. clearinghouse h. satellite shopc. demographic study i. sending floristd. displays j. stem shope. fictitious name statement k. resale licensef. filling florist l. visual merchandising

    _____1. A shop providing extensive personal service to a limited, elite clientele_____2. A florist who sells wire service orders

    _____3. A florist who takes a wire order and then fills and delivers it

    _____4. Obtained so that sales tax can be collected and wholesale items can be bought withoutpaying sales tax

    _____5. Determines which florists must be billed or debited and which florists must receivechecks or credits

    _____6. A second shop operated by a full-service shop

    _____7. A coordinated effort to attract customers to the floral shop

    _____8. One of the components of visual merchandising that attracts attention, creates interest,and motivates customers to buy

    _____9. A report of the size and distribution of population in a specific area

    ____10. A cash-and-carry operation that offers a variety of flowers and foliage by the stem orbunch

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    ____11. People over 65 who typically spend less on flowers because of their fixed incomes

    ____12. A document that must be filed with the county to register the business name andprevent another business in the same county from using that name

    Part Two: Multiple Choice

    Instructions:Write the letter of the correct answer.

    _____1. What type of floral shop is considered the traditional type of retail florist?

    a. carriage trade shop

    b. full-service shop

    c. large-volume florist

    d. satellite shop

    _____2. Which type of shop is purchased from a parent company and operated according tothat companys specifications?

    a. bucket shopb. franchise shop

    c. party/wedding florist

    d. satellite shop

    _____3. What is considered the biggest promotional activity that florists use daily?

    a. advertising

    b. consulting

    c. marketing

    d. visual merchandising

    _____4. What is promotion?

    a. the process of selling a product and providing a service the consumer wants orneeds

    b. a technique of persuading a customer to make a larger purchase than originallyplanned

    c. a variety of activities that lead to public name recognition

    d. taking and delivering orders

    _____5. What are FTD, Teleflora, and Florafax?

    a. franchise shopsb. large-volume florists

    c. stem shops

    d. wire services

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    Part Three: Short Answer

    Instructions:Complete the following.

    1. What should be researched before opening a floral shop?

    2. Name the four major areas in a floor plan for a floral shop.

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    VMA

    QUALIFICATIONS OF A

    SUCCESSFUL FLORIST

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    Floral Knowledge Business Skills Personal Attributes

    Flowers

    Care/handling

    Design

    Display techniques

    Creativity

    Trend watcher

    Advertising

    Marketing

    Personnel management

    Buying and inventory management

    Pricing knowledge

    Computer skills

    Bookeeping/accountancy skills

    Salesmanship skills

    Good communicator

    Delegator

    Honest

    Trustworthy

    Consistent

    Self starter

    Motivated

    Energetic

    Patient

    Tactful, compassionate

    Ethical

    Friendly, polite

    Goal oriented

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    VMB

    FLORAL SHOP CATEGORIES

    Full-service shop

    Large-volume florist

    Party/Wedding florist

    Carriage trade shop

    Stem shop or bucket shop

    Satellite shop

    Franchise shop

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    VMC

    FACTORS TO CONSIDER IN

    FLORAL SHOP LOCATIONS

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    Geographic Factors Economic Factors Demographic Factors

    State, city, neighborhood

    Population

    Population trends

    Number of competing businesses

    Traffic flow

    Parking

    Site visibility

    Availability of wholesale florists

    Employment

    Income

    Per capita retail sales

    Health of the local businesses

    Population age

    Education

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    VMD

    FIVE GUIDELINES FOR

    EFFECTIVE MARKETING Define specialties or strengths of the particular floral

    business.

    Define the target customers or target market.

    Determine the products the customers want to buy.

    Determine how to communicate the message.

    Decide the specific products and services to offer the

    target market.

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    VME

    DELIVERY CATEGORIES

    Regular

    Out-of-area

    Timed

    Special

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    VMF

    FLORAL SHOP FLOOR PLAN

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    Packaging

    Storage

    Office

    Design

    Room

    Display

    Window Display

    Coo

    ler

    Sales

    Counter

    Wedding

    Consultation

    Area

    Gift Items Plants

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    LSAName ________________________________________

    Packaging Cut Flowers

    Materials

    various cut flowers

    card

    stapler

    tissue paper

    packaging paper

    ribbon

    Procedure

    1. Put the packaging paper on the tabletop and then place a sheet of tissue paper on top ofthe packaging paper.

    2. Center the flowers and foliage on the packaging materials.

    3. Fold one side over the stems of the plants.

    4. Fold the bottom up toward the stems.

    5. Fold the other side over the stem area of the plants.

    6. Fold the top down and staple shut.7. Place a ribbon around the middle of the packaging that covers the stems and secure the

    side wraps in place.

    8. Place a card on the ribbon.

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    Evaluation

    Items Points Possible Points Achieved

    Folded correctly 10

    Stapled shut 5

    Ribbon attached 5

    Card placed on the

    package

    5

    Neatness 5

    Total 30

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    LSBName ________________________________________

    Business Plan

    Materials

    research materials

    paper

    writing utensil

    computer with word-processing software

    Procedure

    1. Listed below are several items that might be used to develop a business plan.

    Introductory Material

    Title PageLogo

    Company Name and Address

    Owners name

    Business Data

    Description of the Business

    Type of shop

    Business niche

    Products and services

    Location

    Site

    Building dimensions

    Floor plan

    Equipment list

    Marketing Plan

    Advertisement

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    Special promotional activity

    Packaging material

    Delivery vehicle

    Management Team

    Employee and labor needs

    FinancialOne Months Budget Capital items that need to be purchased and their costs

    2. Use these and other items you might think of to develop a business plan for a floral shop.

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