Do you want to start a flower shop or florist business? Actually, there are several successful business models including home-based floral business or online flower shop business you can explore. Here in this article, we intend to explore how to start a florist business with a sample business plan example.
Starting and running a florist business demands a lot of dedication, hard work, a flair for creativity and a true love for flowers. Any individual can initiate florist business mainly by two ways. You can initiate it as a home-based and on the part-time basis. Giving services to the local customers at any kind of function’s floral needs including planning, design, delivery, setup and removing waste.
Otherwise, you can explore the business from a brick & mortar establishment. This is the way of opening a flower shop. Opening a flower store is definitely more capital intensive and also gives you more profit margin.
Globally, the floral industry is dynamic in nature. Also, the industry is considered as a fast-growing industry. It has seen a substantial growth of 6% annually. People buy flowers in various ways for various different reasons. Designing innovative bouquets and on-time proper delivery is the most crucial factors in this business.
Skills Required For Florist Business
In starting florist business, having technical skill is a must. If you have years of experience in this field and now you are opening your own flower store is fine. Otherwise. you will need to go through the basics to have the knowledge.
You can avail diploma training online or in person. Different Government bodies and Horticulture department also conduct florist training courses.
These training will cover the segments of event-specific floral design, the creation of floral displays, event planning, different flower types and business concepts in floral design. This type of training will definitely give you ample confidence to initiate your florist business.
Florist Business Plan
Crafting a business plan is important in starting florist business. Determine mission statement and business objective clearly. The flower industry is very vast and diversified in nature. According to the availability of flowers in your area, you will need to select what types of flower products you will be creating.
Specify your target niche, marketing, and advertising strategy. Also, you will need to calculate the startup budget including store set up, employee and raw materials. Calculate an expected revenue return. Crafting a proper business plan will help you to take the right steps in right time and to get finance.
How Much Does it Cost to Start a Florist Business
Two different types of costs are involved in florist business. One is fixed cost and another is working capital cost. You can try to get funding from angel investors, from friends or relative circle and from a financial institution like bank or credit cooperatives.
If you are only looking for working capital you can apply for a cash credit or an overdraft facility to a bank. Using your credit card can also be a wise idea for arranging working capital for florist business.
Generally, the requirement of startup cost depends on the business model here. However, in every case, you will procure the inventory other than affiliate selling or dropshipping.
Florist Business Market Analysis
The global flower and ornamental plants market is largely split. Generally, the florists compete based on their product price, quality, differentiation, distribution, and promotion. Establishing the wide distribution channel plays a significant role in influencing market growth.
Broadly, there are two most prominent products that dominate the market. These are potted plants and cut flowers. Both the residential and commercial institutions are the regular consumers of this industry. However, the commercial segment accounts for the major part of the market share. Globally, the commercial segment holds about 81% of the flower and ornamental market overall. The landscaping establishments, parks, offices and other public places decorations are the major revenue earning fields.
Legalities In Florist Business
Creating a catchy, memorable, easy-to-spell name is important. Apply for the Trade Mark and Patent. Determine the ownership pattern of your business and register accordingly. Check another licensing or permission criteria in your locality. It may vary from state to state. In India, Sales Tax Registration is a must and also you need to apply for permission according to Shops and Establishment Act.
Florist Business Setup
Selecting a right store location is most crucial in this business. A visible location with good footfalls is an ideal location for a flower store. A shop-in-shop accommodation is also preferable. In this case, you will also need to avail the facility of parking. If you are hiring the space, pay due attention on the rent agreement. Ask an experienced interior consultant to craft a floor plan. Pay attention on interiors. Proper window display plays an important role in this type of retail business. Controlled room temperature and moistureare required. Apart from the display area, you will need to setup a cash counter and a small storage.
Contact with the suppliers for high-quality flowers and other relevant consumables. You can also source flowers from a nearby flower market. Remember that all flower markets generally start very early in the morning. Other required consumable are baskets, wrapping paper, pottery etc.
For a smooth operation, having a POS (Point Of Sale) software is a must. A wrong or careless inventory management may lead the business towards loss. Never stock too much perishable item. As a value addition, you can keep decorative plants and cactus also.
Products And Pricing In Florist Business
According to your plan select the products, services, and the pricing. As I discussed earlier, you can go with variety. Such as selling flower bouquet, plants and even gifts from the store front, regular office or institution supply, flower decoration for corporate and domestic events and door-step delivery. According to the products and services you will need to decide pricing.
According the segments you want to cater, you will need to hire manpower. Most important criteria is getting good design employee. To get quality job only hire experienced employee. In starting you can also hire design employee as part time basis.
Promote Your Florist Business
Every business success depends on getting customer. An attractive signage is considered as a most minimum and effective outdoor branding activity. Utilizing other businesses is a great way. Establish business relationship with event planners, decorators. Hotel industry is your potential market. Local television channel advertisement and print advertisement on event or wedding magazines is also effective. Having an online presence is just needed. Create website with every detail of your contact address, services and products. Having a blog is also useful. You can communicate with your clients about your new special and design arrival through blog. Register with online marketplace to make doorstep delivery and nationwide business. Use social media carefully. Donating flowers for charity or to community events is a wonderful brand promotion idea for florist business.