ORNAMENTAL PLANT BUSINESS

“WINDAH NURSERY”

NI KETUT WIDYA UTAMI

119211341
ACCOUNTING IC
 I. Business idea

1. What skills do I have to start this business?

Equipped with adequate knowledge about the ornamental plant business. For a beginner like
me, it may be difficult to run an ornamental plant business at the beginning of the business.
Therefore, in the ornamental plant business, it is necessary to equip themselves with the
knowledge of ornamental plant business that can be obtained from ornamental plant farmers,
in agricultural books, magazines, the internet and so on that discuss this agricultural business.
2. What factors will influence the demand for my product or service?
a. Product
Product is the whole object or process that provides a number of benefits to consumers.
Products in the ornamental plant business rely heavily on handling and art. Companies
usually use good pots with suitable ornamental plants and keep ornamental plants fertile or
some that need special handling are usually planted in polybags.
b. Price
Prices that are too high can lead to the possibility of decreasing competitiveness.
Conversely, low prices can cause losses, especially if costs increase. Prices must match the
value of the product being offered. If ornamental plants have low aesthetic value (ordinary)
and are sold at high prices, buyers will tend to buy competitor products. So have to adjust.
c. Distribution (place)
1) Direct distribution channels, namely distribution channels where products from
producers go directly to consumers without going through intermediaries or
distributors.
2) Indirect distribution channels, namely companies in distributing their products using
distributors or intermediary agents and retailers before they reach consumers.
d. Promotion
Promotion is a variety of activities carried out by companies with the main objective to
inform, persuade, influence and remind consumers to buy the products they produce. To
carry out product promotion activities as a whole, especially sales activities, producers
must select and determine elements in the promotional mix such as conducting exhibitions,
contests, and selling via the internet.
3. What type of business will I start?
Retail plant nursery. (Business) means the use of premises for the purpose of propagating,
growing and selling plants to members of the public by retail.
4. What type of business ownership is right for me?
 Sole proprietorship
A sole proprietorship, also known as the sole trader, individual entrepreneurship or
proprietorship, is a type of enterprise that is owned and run by one person and in which there
is no legal distinction between the owner and the business entity. A sole trader does not
necessarily work 'alone' it is possible for the sole trader to employ other people. The sole trader
receives all profits (subject to taxation specific to the business) and has unlimited responsibility
for all losses and debts. Every asset of the business is owned by the proprietor and all debts of
the business are the proprietor's.
 II. Opportunity & Market Analysis

1. How should I conduct market research?

a. Identifying Problems and Opportunities in the Market
Marketing research will help identify new market opportunities for both existing and new
products. This research will provide information about market share, nature of competition,
level of customer satisfaction, sales performance, and distribution channels.
b. Develop a Mature Market Strategy
Currently the market is no longer local, but global. Companies are increasingly finding it
difficult to make contact with consumers and control distribution channels. The
competition is just as bad. Consumer needs are increasingly difficult to predict. Market
segmentation is increasingly difficult in a very broad market.
This is where marketing research plays an important role in dealing with these problems.
With thorough research, we can better develop marketing strategies, and be able to identify
consumer needs and characteristics.
c. Observe market developments
In addition to conducting surveys, it is necessary to observe or make observations on
current market development.
This means knowing what trends are developing in society and are being targeted
everywhere while observing the sellers of ornamental plants already on the market as a
comparison.
d. Doing a trial run on the market first
Before officially launching plant products to the market, previously conducted a few trials
regarding ornamental plant products owned at several business locations. This aims to
obtain responses from the public who are the target market.
For example, you can leave some plants at a number of shops or give them free samples to
find out their response and at the same time improve them before they are redistributed and
officially sold so as not to disappoint customers.
e. Estimating Sales
One of the challenging tasks of the production manager is to keep the crop stock optimal.
However, production needs to be done to meet demand. Therefore, sales forecasts
calculated by scientific methods are indispensable.
Marketing research assists in sales forecasting using the market share method, the sales
force estimation method, and the jury method. This will also help me improve my sales
quota and future marketing plans.
2. Who are my competitors?
In the development of development and the more openness of the climate, trying to open more
opportunities for business actors to carry out activities will lead to increasingly sharp
competition. In the beginning, every business that markets goods to consumers will get a fairly
good market, so that at this initial stage the business will get good profits and lots of customers.
However, with the emerging competitors, it will indirectly influence the smoothness of
marketing activities for ornamental plant products so that gradually the marketing area will
become narrower, because some of the existing customers have separated. The existence of
 competitive products will cause difficulties for entrepreneurs in marketing their products. The
presence of competing products can cause changes in consumer tastes. Consumer tastes can
move from product to product that has the same use value. Therefore, always try in various
ways how goods or services produced by ornamental plant entrepreneurs can be marketed and
accepted by consumers properly and satisfied, both in terms of price, quality and in terms of
services provided by ornamental plant entrepreneurs in serving their consumers, so that the
resulting product can be accepted in the market, it is necessary to have good marketing
activities.
3. What are my product and pricing strategies?
 My product

Ang Shiau Krisula

Baby Sun Kui Hua
Begonia S.p Lavender
Begonia Batik Lemon
Begonia Big Licimacia
Begonia D.W Limonium Ferrezii
Begonia Red Lipstick Striped
Begonia Rex Maroon lipstick
Begonia Sample Red Lipstick
Florens Mini Lipstick
Begonia Silver Pink Lipstick
Bromellia Lipstik Varigata
Capsicum chinense Miana
Purple Chili Pagianta
Rainbow Chili Peperomia Duduk
Cherry Chili Petunia J
Criptanthus Pilea
Dahlia Pillo Gregaji
Mint leaves Pilobuelemax
Dentang Gentis Pioces
Dianthus Pohon Zaitur
Disidia Portulaca
Ester Kaktus Revania
Euphorbia Geroldii Rukam Australia
Gelobang Cinta Sabrina Besar
Gloxinia Sabrina Hijau
Green Pool Sabrina Jeli
Kadaka Mutasi Scanden Hijau
Kadaka Osaka Sedum
Kadaka Plipis Sukimi
Kaktus Tokek Trijata
Kalancu Vinca
 Kladi Tengkorak Vioces
Kribo Wijaya Kusuma

 Pricing strategies
a) Comparison of prices with other entrepreneurs. Fixing the price of an ornamental plant
is important, although not easy. There are several standards to consider. For example,
looking at competitors' prices. Make sure, want to determine the price is more expensive
or cheaper than competitors. If the same ornamental plant is placed in an expensive ceramic
pot, the price is certainly higher. Another way is to calculate the costs incurred in order to
still get a profit. The purchase price, for example, must be calculated with customs fees,
transportation.
b) Block pricing can be interpreted as wholesale price. This price is set so that buyers can
choose to buy wholesale or retail. This method is commonly used by ornamental plant
traders who want to wash the warehouse. However, it can also be used by the nursery to
sell plants that are difficult to sell at retail.
c) Commodity Bundling. Several different products are sold in one price package. For
example, buy some anthurium in addition to a few pots of aglaonema. That is, so that all
plants can be sold.
d) Price Discrimination. Price discrimination, that's roughly the translation. This means that
the same consumer is priced differently, because the volume of purchases is different. If a
consumer buys a unit at a price of Rp. 100,000 per pot, he will get a price of Rp. 60,000
per pot if he buys 100 pots. Consumers can be given a prospect price. The price given is
lower than the normal price if consumers are considered to have prospects, that is, they can
sell a lot and are good at marketing our crops.
4. How do I promote my product?
a. Exhibition
One of the most effective ways to promote is by participating in ornamental plant
exhibitions which are currently being held more frequently. Apart from being a
promotional event, the exhibition also functions as a direct market.
b. Contest
Participating in the actual contest also aims to create an image among players and
consumers in displaying superior goods. Before entering the contest, you must really
prepare the plants that are predicted to win in the contest. The plus point of winning the
contest is that the selling price of goods will increase and the prestige in the world of
ornamental plants will be increasingly recognized. Examples of plants commonly used
during contests are Aglaonema, Monstera, Philodendron
c. Mouth to Mouth
Promotion by mouth to mouth or word of mouth is the simplest and cheapest way, because
it does not require money and effort. This method will be effective if you sell quality goods
accompanied by satisfying service.
d. Internet
At least this way can save time and promotional costs. In addition, there are also sites that
are deliberately managed to attract the attention of ornamental plant consumers. Through
 these media, provide various discount offers, and guarantee replacement of damaged
plants. Thus, instead of looking for buyers, buyers will be looking for them.
e. Making Relationships
No matter how great a promotion is, it will be meaningless without having strong
relationships. Relationships can be obtained by following an ornamental plant association
or organization. Usually these organizations often hold various activities such as training,
discussions, exhibitions, and exchange of views between ornamental plant players. At least
you can learn about care from the experts, and can add to your plant collection.
5. How do I sell my product?
 In this distribution channel, ornamental plants are sold by producers and ready to be traded,
such as ornamental plants and fruit seed plants. In distributing ornamental plant products, you
can use direct distribution channels where as a producer serve buyers at the place of business,
and can distribute to other parties consumers who want to buy and order directly to employees.
It can also be channeled indirectly through marketing to other parties such as thinners, mobile
traders or other traders.
III. Financial strategies
1. What are my business costs?
 The initial capital is around Rp15.000.000
a. Equipment Costs
 The usage period of the water hose is 5 (five) years
 The usage period of the water pump is 5 (five) years
 The period of use for leasing a place for 1 (one) year
 The use of scissors for 3 (three) years
 The use period of the wheelbarrow is 5 (five) years
 The period of using hoes, shovels and other tools for 3 (three) years
Land rental fee Rp1.500.000
Procurement of plant seeds Rp1.500.000
Growing media Rp500.000
Water pump Rp250.000
Water hose (10 meters) Rp76.000
Hoe Rp80.000
Plant scissors Rp50.000
Shovel Rp100.000
Barrow Rp410.000
Knives and machetes Rp120.000
Flower shelf Rp3.000.000
Additional equipment Rp100.000
Total cost Rp7.686.000
 Cost of using tools for 5 (five) years = Rp7.686.000 : (5 x 12 months)
= Rp7.686.000 : 60
= Rp128.100 (per month)
 b. Operational Costs (in Months)
 Plant land use (1: 12 x Rp1.500.000): Rp125.000
Water usage: Rp50.000
Total cost: Rp175.000 / month
c. Maintenance costs
Urea fertilizer Rp8.000,00 x 30 = Rp180.000,00
NPK fertilizer Rp15.000,00 x 30 = Rp450.000,00
Organic fertilizer Rp22.500,00 x 30 = Rp675.000,00
Pesticides and insecticides Rp32.000,00 x 30 = Rp960.000,00
Pot and poly bag Rp60.000,00 x 30 = Rp1.800.000,00
Transportation costs Rp25.000,00 x 30 = Rp750.000,00
Fuel Rp30.000,00 x 30 = Rp900.000,00
Packaging / packing Rp17.500,00 x 30= Rp525.000,00
Total cost Rp6.240.000,00
 Total Overall Cost
Equipment costs + operational costs + maintenance costs
= Rp128.100 + Rp175.000 + Rp6.240.000
= Rp6.543.000

2. Where will I get the capital?

a. Personal Savings for Business Capital
The first way to get capital for a business is to take advantage of personal savings. Everyone
must save because they have certain reasons and goals. Before deciding to use personal
savings for capital, you must have determined the target first. So that I know that the
savings can be collected again and can be used for its original purpose.
b. Borrow Nearby People
Another way to get business capital is to borrow close people such as parents, family, or
friends. First, I explain to them about my business idea and plan in detail so that they feel
safe to lend me money.
3. How do I measure the economics of one unit?
If a unit is defined as “one item sold,” then i can determine unit economics by calculating the
contribution margin, which is a gauge of the revenue amount from one sale minus the variable
costs associated with that sale. The equation is expressed as:
 Contribution margin = price per unit – variable costs per sale.

4. How do I develop an income statement and track cash flow?

By viewing and observing the income statement and cash flow track at the end of the period,
as the company owner can assess the expenses that are effective and not. This will really help
the company to develop the company. Because to grow the company, I need to have the ability
to increase income / profit or reduce expenses and the income statement can present this
information. Through the income statement I can see the increase in revenue or loss the
company has earned. By doing an evaluation, then I can minimize the risk of loss. For example,
 if the company experiences continuous losses, I can make decisions to grow and still be able
to face competition.
5. How do I develop a balance sheet?
At the end of a company's accounting cycle, the balance sheet becomes a handle that states
how the company has performed during the past period. From the balance sheet, it can be seen
various data such as whether the company suffered a loss or not, which products the market
liked the most and which the market did not like. So that it can be an evaluation of the company.
Assets in the company must always be controlled and safeguarded so that there is no loss that
must be borne by the company. Obligations must also be examined carefully. If the debt owned
by the company is higher than the capital or profit, the company can go bankrupt. Likewise
capital. In a company, capital must always be regulated so that it can still finance the company's
needs. The balance sheet aims to show the financial position of a company in a certain period,
usually at the time when the books are closed and the remainder is determined at the end of a
fiscal year or calendar year. In making a balance report, there should be no mistakes. Every
transaction data and recorded assets must be recorded carefully so that there are no errors that
result in company losses.
6. What is my break -even point?
With a relatively small amount of capital, the benefits of this business are quite promising. The
following is an illustration of the income that I will get.
 Large plants: 100 pots x Rp50.000 = Rp5.000.000
 Medium plants: 150 pots x Rp30.000 = Rp4.500.000
 Small plants: 200 pots x Rp15.000 = Rp3.000.000
 Small plants: 250 pots x Rp10.000 = Rp2.500.000
Total income = Rp15.000.000.
Total income - total initial capital
= Rp15.000.000 - Rp6.543.000
= Rp8.456.900 per month.
In a day, the income is approximately Rp282.000
7. What kind of accounting system should I use?
a. Transaction Processing System that supports daily business operations with a number of
documents and messages for users throughout the organization.
b. Financial Reporting System which produces traditional financial reports such as income
statements, balance sheets, cash flow reports and so on.
c. Management Reporting System that provides internal management with specific purpose
financial reports and information required for decision making.
IV. Organizational structures

1. How should I staff my business?

a. Creating a Business Organization Structure
The organizational structure of the business clarifies the position of the employee and the
line of command. The goal is the effectiveness of the performance of each employee.
b. Creating Employee Job Descriptions
Compile employee job descriptions and make them understand so that they are able to
apply them in their daily work.
c. Making Employee Discipline Rules
The goal is so that we don't pay them a loss and they can use the available working time to
produce works.
d. Create a Reward & Punishment System
Productive employees according to the company's target will receive a reward. Meanwhile,
employees who are not productive or commit violations / crimes will get punishment.
e. Creating a Salary & Employee Welfare System
To gain their productivity, we must be able to meet their expectations of employee salaries
and welfare. We must be able to create a dynamic salary and welfare system that follows
the productivity and growth of the company.

2. Do I need the help of outside experts?

Yes, to find information or to get as much knowledge as possible about the world of plants, by
making visits and asking advice from people who are experts in the field of plants. That way I
will be equipped with sufficient knowledge, the rest I just need to improvise yourself.
3. How do I train and motivate employees?
a. Awards
 For employees or work groups who have achieved the specified target or target (budget)
or have had good work performance (eg harvesters with the highest productivity) are
rewarded. Appreciation for this work can lead to motivation to work someone in the
work environment. Appreciation for a job position or someone's success in completing
a job is one of the motivators that encourage someone to work better. Providing rewards
/ rewards for a job that is done well must be standardized. Rewards are not only in
material form but can also be in non material form. Although not everyone is not
motivated by money, money or financial benefits are still important in motivating
employees such as annual bonuses, better salary increases / adjustments, premiums,
incentives, or benefits. Provision of work facilities for employees such as motorbikes,
uniforms for staff and employees can motivate employees to work better.
b. Training and Education
 Training and education are defined as company activities that are designed to improve
or enhance the knowledge, skills and attitudes of employees in accordance with
company needs so that the employees concerned are more advanced in carrying out
certain tasks. Training is more practical, while education is more theoretical.
  Different types of training and education can be carried out for plantation employees
depending on their needs, for example training on company procedural policies,
training on specific skills training in human relations, problem solving training, training
in decision making. related to technical or plant cultivation such as good fertilization
methods, how to harvest according to standards and so on.
4. What organizational structure is right for my business?
The organizational structure has the following tasks:
a) The leadership of the company has a direct role in supervising all employees and is
responsible for all activities carried out in the company.
b) One employee is in charge of finance and also takes care of the money in and out of the
company. This employee also assists in the marketing / sales of ornamental plants.
c) The second employee who is responsible for marketing / selling ornamental plants is also
in charge of watering the plants and replacing flower pots for flowers that already feel
appropriate to be replaced such as large hard flowers. Both of these employees they work
together in managing work time.

V. Business management
1. How do I manage expenses, credit and cash flow?
a. Record all income and expenses
Keep track of all the income and expenses of the business that is being carried out. Record
income and expenses separately according to basic accounting concepts so that at the end
of each month the profit or loss can be calculated. If the business is growing and getting
bigger, the cash flow statement must be made correctly.
b. Creating a Business Account at the Bank
If the business or business has started operating, don't have to wait until it grows up then
create a business account at the bank. Business accounts and personal accounts must be
separate so that there is no mistake about the existence of money. Creating a savings or
current account at a bank is easy, fast, and inexpensive. Owning a business account will
make it easier to find out business income and expenses easily by moving your balance or
checking account every month.
c. Evaluation Every Month
Income and expenditure evaluation should be carried out every month. Pay attention to the
largest income and expenditure coffers. In addition, it also evaluates business performance,
products, employees, and other evaluations. Good cash flow management will make it
easier for business people to determine business development strategies according to
proper accounting developments. Poor cash flow means that the business strategy cannot
be determined and the business may fail or go bankrupt.
d. Calculate Expenditures Carefully
Too much or wasteful spending can cause the company's cash flow to be bad. Pay attention
and make sure the list of expenses and elements of the accounting system that can support
the business, not just unnecessary expenses. Start frugality by eliminating the list of
expenses that do not support the business. However, keep in mind that minimizing
expenses does not make business decline.
2. How do I manage production and distribution?
a. Increase Promotion
Create unique promotions and increase the frequency so that more people are familiar with
the products or services offered. Take advantage of various promotional channels, from
distributing brochures, placing online advertisements, utilizing social media and many
more. For beginners like myself, take advantage of social media and its various
advancements as effectively as possible.
b. Do Product Innovation
Apart from making products and maintaining their quality, innovation must also be carried
out because consumers tend to get bored quickly. If the business cannot keep up with it,
consumers may move to competitors. Anticipate these consumer changes and don't be
afraid to try new and different things.
c. Minimizing Operational Costs
Oversee how much capital and operating costs are incurred and the income generated. This
is done to ensure the needs that are met by the business are in line with what it must get to
create growth.
3. How will I manage my operations?
 Developing a business so that it is more advanced, of course, improving performance must
be done at any time. Don't get bored in innovating and developing every day so that
existing businesses don't stop halfway or make performance decline. Create a spirit of
performance development for yourself and employees in an effort to always improve your
quality. Work with dedication When developing a business, of course, high and full
dedication will make the business run well. Don't be lazy and complacent in doing a
business and continue to work with enthusiasm and never give up. This dedication itself
includes business continually growing, understanding market needs, innovating,
evaluating self and employees and many others.
4. How do I manage purchasing?
a. Perform Inventory Planning
Less or excess plant inventory will result in losses for the company. For this reason, it is
necessary to plan in managing plant inventory planning. In addition to reducing the risk of
loss, inventory planning will help entrepreneurs when placing orders for plants. With
careful planning, plant supplies will suit your needs.
b. Make an Inventory Schedule
Setting an inventory schedule will make it easier for entrepreneurs to manage supplies in
the garden. Having an inventory schedule will help minimize the risk of loss and avoid
damaged crops.
5. How do I manage inventory?
a. Have a Storage Warehouse
I can prepare a special place for placing houseplants. I can use my backyard as a storage
warehouse for ornamental plants.
b. Make a List and Amount of Stock of Goods
List and stock quantity of goods is important information. Because with this information,
I can control inventory activity. I can also analyze which items are often sold and which
 ones have started to pile up because they have not been sold, so that I can take appropriate
action according to the condition of the existing plant stock.
c. Checking Goods Periodically
In the storage area, things that we don't want often happen, such as damaged ornamental
plants. As a result, the information about the amount of stock that I have is different from
the amount of physical stock in the warehouse. Check the plants regularly. See if the plants
in the warehouse still match the information in the reports I hold. This is so that I can find
out when a plant is damaged periodically.
6. How will I manage my business?
a. Managing Finances
Business can run smoothly if we are able to control it properly. Especially about finance.
For that financial statements must be clear. Financial reports are very important
information. Because the financial statements will control all company activities.
b. Follow Market Developments
Times are growing, so are market conditions. In doing business, you must not be out of
date. This is related to the consumer's need for a product.
c. Know Consumer Desires
After following market developments, I came to know what consumers need and want. I
have to be able to adapt to consumers in order to know what they want. In addition, I also
have to be ready to accept criticism and suggestions given by consumers or the community
around me so that my business can grow.
d. Always maintain the quality of ornamental plants
Always pay attention to the quality control of ornamental plants. Make sure only the best
houseplants are sold on the market. If product quality is maintained, it is certain that
consumers will always be satisfied with the company's products and services.

VI. Plan for growth

1. How can I plan for business growth?

a. Determining Business Targets
By determining the right business plan target, I can adjust the content of the business plan
properly. Suppose the target business plan is a client, then I have to prepare the business
plan more seriously, in depth, and professionally. With a target, I will be more motivated
to achieve what was set from the start.
b. Offer a New Product
Another way to grow is by offering more new and unique houseplants, by finding out what
customers want, and looking for new trends on the much-sought ornamental plants.
c. Enter the New Market
Entering a new market can also mean something closer to home, such as opening a new
shop in a nearby town. Another way can be done by marketing ornamental plants through
exhibitions, or it can be promoted via the internet.
d. Expanding Business Network
 Another way for a business to grow potentially is by expanding the business network. As
a leader, I need to do a thorough business strategy refresher. The strategy I use is still very
simple, then develop the strategy to become more complex for the sake of business
progress. For example, expanding marketing by opening online purchasing services so that
it is easier for consumers to get the products that customers want
2. What are the challenges of growth?
a. Ornamental plants die because of faulty maintenance or may be neglected or lack of
attention due to busy caring for other ornamental plants.
b. A quiet buyer market and a lack of traction as a result, sales are bound to decline.
c. There is tight competition among ornamental plant entrepreneurs, fluctuating ornamental
plant prices, adjusted to market conditions and the minimum number of seeds available
from farmers.
d. Unfavorable weather conditions, whether dry or prolonged hot season or rainy season that
does not compromise or cooperate.
3. How will I expand my business?
a. Improve the quality of the treatment, the better the maintenance, the better the appearance
to attract consumers' attention. so that it can boost sales prices.
b. Cleanliness, tidiness of the ornamental plant environment. When placing plants, you should
not be too close to other plants, because it will affect the quality of these ornamental plants.
If your ornamental plants are maintained, then consumers will feel satisfied and
increasingly interested in buying ornamental plants that I care for.
c. Apart from that, I have to keep up with the times, regarding information on ornamental
plants by reading a magazine specifically for ornamental plants and the basics, you can
even create an association or community of ornamental plant lovers called the Indonesian
Horticultural Association.
d. At the minimum level of marketing I am looking for information about ornamental plant
exhibitions which are currently being held a lot, as well as to add broad knowledge /
knowledge about ornamental plants which are currently rife (popular).
e. It is better if consumers buy more than 3 ornamental plants, give bonus fertilizers or other
materials to the buyer if they buy a certain type of ornamental plant at a lower price.
4. Can I franchise or license my business?
 No, I don’t think so
Because in my opinion it takes a long time to be able to develop an ornamental plant
business, besides having to have regular customers, there are still many ornamental plant
entrepreneurs who already have considerable experience. So it's enough to try to have
many branches in several regions.