Introduction:
This business idea is for cultivation and marketing of flowers. Growing flowers is an art – or activity and craft of growing plants, with a goal of creating a wonderful & beautiful world around. Flowers are a symbol of love, beauty, affection, romance, etc. Flowers have a high economic value both at face value and for extracting perfumes and other products. Flowers are highly demanded especially for personal adornment and decoration. The production capacity per day is estimated at 360 per day with a total investment estimated at US$ 3794 while revenue is estimated at US$ 193752 per year.
Production process
Flowers can be grown in any soil but most soils will be improved by treatment of some sort before planting. Flowers are heavy feeders and thrive best in well worked and well-drained soils. The beds should be prepared 6-12 months prior to planting. If prepared suitably, beds can last along time. Flowers are propagated by seeds, stem or root cuttings, layering, budding and grafting. Propagation by stem cuttings is the most common used method. The seeds are planted in a nursery at intervals of 2.5-5 cm.
The nursery beds are sparingly watered thrice a week and kept clean of weeds. The growing stems are then transferred to the real field in wooden structures.
Capita investment requirement
| Capital investment item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Water pump | No. | 2 | 80 | 160 |
| Pipes and Fittings | No. | 10 | 200 | 2,000 |
| Water tank | No. | 1 | 152 | 152 |
| Cutter | No. | 5 | 4.8 | 24 |
| pesticide sprayer | No. | 3 | 14 | 42 |
| scissors | No. | 5 | 8 | 40 |
| Barbed wire(roll) | No. | 2 | 48 | 96 |
| Tents | No. | 4 | 280 | 1120 |
| Baskets | No. | 50 | 3.2 | 160 |
| TCs on Equipments | 790 | 3,794 |
Production and operating costs General costs (overheads)
| Cost Item | @ | Qty/ day | Pdn cost/ day | Pdncost/ month | Pdn cost/ yr |
|---|---|---|---|---|---|
| seeds | 1.5 | 20 | 30 | 780 | 9,360 |
| manure | 4 | 50 | 200 | 5,200 | 62,400 |
| Fertilizers | 2.2 | 50 | 110 | 2,860 | 34,320 |
| Chemicals | 2 | 30 | 60 | 1,560 | 18,720 |
| pesticide | 2.3 | 10 | 23 | 598 | 7,176 |
| Sub-total | 160 | 423 | 10,998 | 131,976 |
| Utilities (water and power) | 300 | 3,600 |
|---|---|---|
| Labour | 750 | 9,000 |
| Rent | 150 | 1,800 |
| Administrative cost | 75 | 900 |
| Miscellaneous costs | 50 | 600 |
| Depreciation Expenses | 79.04 | 948.5 |
| Sub -total | 1,328 | 15,938 |
| Total Operating Costs | 12,326 | 147,914 |
- Production costs assumed 312 days per year with a daily capacity of 500 bundles of flowers
- Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets Direct costs include materials, supplies and other costs that directly go into production of the product.
Project product cost and Price structure
| Item | Qty/day | Qty/yr | @ | Pdn cost /yr | UPx | TR |
|---|---|---|---|---|---|---|
| Roses (bundles | 90 | 28,080 | 1 | 28,080 | 1.8 | 50,544 |
| Mums (bundles | 90 | 28,080 | 1 | 28,080 | 1.8 | 50,544 |
| Carnation (bundles | 90 | 28,080 | 1 | 28,080 | 2 | 56,160 |
| Water lilies (bundles | 90 | 28,080 | 1 | 28,080 | 1.3 | 36,504 |
| 112,320 | 162,890 | 193,752 |
Profitability analysis
| Profitability Item | Per day | Per month | Per Year |
|---|---|---|---|
| Revenue | 621 | 16,146 | 16,146 |
| Less production and operating Costs | 474.1 | 12,326 | 147,914 |
| Profit | 146.9 | 3,820 | 45,838 |
