FINANCIAL FEASIBILITY STUDY OF MIDDLEMIST FLORIST FOR EXPANSION

• Main Author: Christina, Lorensia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/87524
• Institution: Institut Teknologi Bandung

This study assesses the feasibility of Middlemist Florist’s expansion by opening three new booths in strategic locations in Indonesia. Established in 2021, Middlemist is a leading player in the florist industry, offering fresh flower arrangements with exclusive designs. As competition increases, Middlemist aims to enhance revenue and expand its market reach through innovative business strategies. A quantitative approach was used, analyzing financial data from 2021 to 2024, including income statements, balance sheets, and cash flow statements. Financial projections for the next five years were evaluated using Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period. The expansion project’s NPV is IDR 32.7 million, with an IRR of 66.52%, significantly higher than the Weighted Average Cost of Capital (WACC) of 6.78%. The PI value of 3.18 suggests that the project offers substantial financial returns compared to the initial investment, and the Payback Period is estimated at 1 year and 6 months, indicating a quick return on investment. Each booth is projected to generate annual revenue of IDR 51.6 million, with a monthly sales target of IDR 4.3 million. Success will depend on Middlemist’s ability to leverage seasonal trends and customer demand for high-quality flower arrangements. The main challenges identified include competition from other florists and the need to maintain quality and innovation. To overcome these, the study recommends enhancing digital marketing strategies, collaborating with event organizers, and focusing on sustainable operations by sourcing flowers environmentally and supporting local farmers. Revenue from the new booths should also support the main store and help diversify the product range. The findings indicate that expanding to three strategic locations not only has strong revenue potential but will also strengthen Middlemist’s position in the growing florist industry in Indonesia. This expansion aligns with the company’s vision of becoming a premium flower provider that adds meaning to every important customer moment. The study contributes to data-driven business strategy development, focusing on financial efficiency and sustainability.