How to open a flower business from scratch: business plan, reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, quite a lot of people are running their own business. Most importantly, in order to receive a stable income, you need to constantly develop this business. The sale of flowers is one of the areas of retail trade, which is associated with significantly greater risks than others. First of all, this is due to seasonal factors, because beautiful plants are a very specific product, the demand for which is not the same throughout the year. Nevertheless, the profit from this type of activity is quite high, especially during rush hour. Therefore, many people are interested in how to open a flower business from scratch.

General information

According to many experts, the flower business can only be successful in regions with a high level of prosperity. In addition, one of the key factors is the mentality of the population living in it. Also, a novice entrepreneur must take into account the specific features of this type of activity.

According to statistics, all goods are notmanages to be sold, and the number of decommissioned flowers is about ten percent of the total stock, which imposes additional financial costs on the store owner. However, even taking into account all the costs, the flower business (reviews of experienced entrepreneurs fully confirm this) brings a very good income. Its average profitability is about fifty percent, and the margin on products is about two hundred percent. And all this despite the fact that a relatively small amount of money is required to start a business.

Advantages and disadvantages of this retail area

It is worth dwelling on these issues in more detail. If you decide to open a flower business, where to start will be discussed later in the article. But you need to consider all the pros and cons of this type of activity.

Among the main benefits are the following:

1. Easy to open. You don't need too much money to get started compared to other industries. It is possible to open a small trading pavilion in a place with a large traffic of potential buyers, having about seven thousand dollars available.
2. Ease of exit. This is a very important aspect as closing some businesses is a big problem.
3. High profitability. There aren't many product groups these days that can mark up as much as 200 percent.

Despite the obvious advantages that a business has, a flower shop also has a number of disadvantages necessary fortaking note of start-up entrepreneurs.

Among the most significant are the following:

1. Perishable goods. Flowers wither very quickly and lose their attractive appearance, which will make it impossible to sell them.
2. Seasonality. The most profitable in this industry are various holidays, such as March 8, Valentine's Day, February 23, May 9, World Knowledge Day and so on. But there are also such periods of the year when trade does not go at all. In the summer, when everyone goes on vacation, you can't count on any profit.

Thus, having weighed all the pros and cons, you can begin to develop a business plan. The flower business, as mentioned earlier, is a rather specific type of activity, so the drafting of the project should be approached thoroughly.

Where to start?

So, the main things you need to know. For your business to be successful, it is very important to carefully plan it, as well as adhere to the main stages of its implementation. Entrepreneurial activity as such is not too difficult, if everything is done correctly and in accordance with the law. Let's figure out how to start a flower business from scratch without any problems. Reviews of experienced cooperators claim that even those people who have absolutely no experience in this area will be able to cope with this.

Registration of a business entity

Starting a flower business like any othertype of activity, begins with the procedure of legal registration. In order to carry out retail trade in any goods, you also need to register as an individual entrepreneur, while selecting OKVED at number 52.48.32 "Retail trade in flowers". Next, you need to decide on the tax system. You can work both under the single and under the simplified taxation system.

When you have all the documents in your hands, you will need to purchase a cash register and register it with the tax office. This process takes about two weeks, but if you are in a hurry to open a store, you can use the services of shop equipment sellers and they will do everything in just three days.

You also need to think about printing. It is not necessary to do it in order to open a flower shop for business, however, not all suppliers work without a stamp on invoices. Therefore, it is better not to complicate your life and not create additional problems in your work and just order a print in advance.

Documentation

This issue needs to be taken seriously, because without some paper you will not be able to do business.

Regardless of what products are sold at the point of sale, you must have the following documentation, which any buyer has the right to request for presentation:

1. Permission to trade.
2. Conclusion of the SES.
3. Complaint book.
4. Trade Invoice.

In addition, if you wish, you can makea price list with prices, which will greatly simplify the trading process. Also, various authorities will periodically come to you with checks, which will require a cash register, a lease agreement and a certificate of registration of a cash register. Therefore, these documents should always be at hand in the store. It is also important to remember that if employees will work for you, then the presence of sanitary books and badges is a mandatory requirement. Without them, admission to work of personnel is prohibited, and in case of violation is punishable by a fine.

Business Formats

So, you've collected all the necessary documentation to start the project, and the thought is already spinning in your head: "My little flower business will prosper." But do not rush too much, as there are several options for trading. They have certain key features that should be taken into account. Let's take a closer look at each of them so that you understand all the nuances.

Small market stalls

As a rule, they are opened near the metro and public transport stops. This format is one of the most competitive, but there are a lot of potential buyers, so it is quite easy to survive in the market if you choose the right place to trade. This is very important, because if the flowers are not sold well, then the number of rejections will increase greatly. Therefore, you should not strive to expand the range as much as possible, about 20 items will be enough.

Small flowershops

What do you need to know about them? A flower shop in business is one of the most profitable as it is the perfect combination of capital investment and profitability. Points of sale are located in large shopping centers and places with high traffic of people. Unlike the previous format, here the assortment plays one of the key roles. The wider it is, the more profit you can get. Therefore, in addition to traditional cutting, you should sell ready-made compositions, houseplants, ceramics, gifts, souvenirs, flower substrate, flower care products and related products.

The more long-term products in the assortment, the more balanced will be the profitability, and the dependence of profitability on the volume of sales of products will form less, because during periods when plants are in low demand, you will start earning on sales of other product groups.

When making a business plan for a flower shop, consider all associated costs. On average, you will need at least $20,000 to open. However, the payback period of this format of entrepreneurial activity is relatively short, so you will quickly return all your financial investments.

Online store

An online market for the sale of floristic products is best opened by those citizens who have real experience in a retail flower shop. The life of a modern person is oversaturated with various affairs andworries, so many people simply do not have time to visit specialized kiosks. Thus, flower delivery services are in high demand. In addition, many customers like the fact that they can place an order from the comfort of their own home.

Flower business on the Internet is less expensive than other formats, because you do not need to rent a room, and trade is done through the site. However, you must understand that without an established client base and well-established contacts with suppliers, it will be extremely difficult to succeed.

Flower speci alty boutiques

What do you need to know? The business plan of a flower shop in the format of a specialized boutique requires careful study, since very large financial investments are required, as well as the profitability indicator and the time to break even depends on a number of criteria.

The boutique must be located on the first floor of the red line of houses or in large shopping centers with a large traffic of potential buyers. Particular attention should be paid to the design of the store, because its aesthetics is one of the very important criteria. A must-have item in the range are ready-made flower arrangements created by professional florists.

The minimum financial outlay required to open a dedicated flower boutique starts at $80,000. However, with a competent approach to opening and managing a store, the flower business will not only bring a stable income, but also give you and yourcustomers joy.

As for profit, experts say that its average figure is at the level of 5000 dollars a month, but this is far from the limit if you, in addition to retail, will be engaged in servicing corporate persons, as well as providing decoration services various activities.

A few words about geolocation

When starting a flower business from scratch, special attention should be paid to finding a location for a point of sale. After all, if you do not have a sufficient number of buyers, then you will not be able to sell all the products on time and it will go to rejection. Whether it is a shop or a small tent, it must be located in a busy area where a large number of people pass every day. It is important to understand that the ideal place simply does not exist. The better the neighborhood, the higher the rent.

The sales point can be set up as follows:

• in a tonar or trailer;
• in the modular pavilion;
• in a separate building;
• in residential buildings on the red line;
• in the mall.

The last option will be the best solution, since the cost of renting the area is relatively low, and the traffic of people in them is simply excellent.

Procurement of equipment

This is one of the main issues that requires certain costs. When compiling a business plan (a flower business can only fully function if the outlet is properly equipped), it is necessary to carefully calculatehow much money you need to purchase equipment. For full-fledged work, you will need not only a cash register, but also special commercial furniture, refrigerated racks and other equipment. Today on the Internet you can find many companies offering ready-made sets of equipment, as well as comprehensive services for its installation and maintenance. In addition, you can order the production of an individual project, which will take into account all your wishes.

Refrigeration equipment is a must, because without it, in the summer, flowers will begin to wither and deteriorate much faster. It is not advisable to buy a ready-made camera, since it will be very problematic to place it. The best option would be to make it to order. In addition, the retail space will need to install air conditioning to maintain the optimum temperature. The purchase of all this equipment will cost approximately 150-180 thousand rubles.

In order for the flower business to flourish, it is very important to present your product to potential buyers as profitably as possible. Therefore, it is advisable to purchase flowerpots and stands for plants. You will also need special designs for their placement. To buy all this, you need about 6-8 thousand. And the last thing you can't work without is a cash register. The average cost of KKM is 13,000 rubles.

Also, do not forget about the associated costs. Any flower shop, regardless of the form of business, needs packaging materials such as transparent film, multi-colored mesh, ribbons, felt andetc. To create beautiful bouquets for customers, you will need tape, gerbera wire, a stapler, clippers and garden shears, and a set of special knives. Buying all this will cost approximately 5,000 rubles.

And of course, do not forget about buying flowers. If you plan to open a small tent, then about forty thousand will be enough for this, but to fill the trading floor of the store you will need somewhere around 350,000.

Marketing

Even aspiring entrepreneurs with little experience in business know that advertising is the engine of commerce. If you do not conduct a high-quality marketing campaign, then the probability of a good start of the project is almost zero. To attract potential buyers, light banners can be installed on the store. You can also spread the word on social media and hand out flyers in high traffic areas.

Pitfalls

So, we talked about how to open a flower business. Now let's find out what pitfalls a novice entrepreneur can face. Opening a stall near the metro station is not yet a guarantee of success. You must consider the direction of the flow, namely where people go - home or work. It is best to place a tent near highways or in the city center. Location in a residential area would not be the best solution.

Experienced businessmen recommend constantly monitoring the market, as well as keeping an eye on your competitors. Tracking their dynamics andongoing promotions, you can learn a lot of useful information, as well as implement some ideas in your store.

When signing a lease agreement, pay attention to whether the cost of utility bills is included in the price. If not, then it is better to look for another point, since the amount for this item of expenditure is quite large, which will negatively affect the profitability of the enterprise. In addition, check the availability of a garbage collection agreement, otherwise you will have to get rid of empty containers and damaged flowers that are not for sale.

Conclusion

Business, be it floral or otherwise, has many nuances to consider, as well as many challenges. The most important thing is to approach everything reasonably. But if you seriously decided to make a fortune and chose the flower business as a start, then, following the tips and recommendations discussed in this article, you will certainly cope. The main thing is not to be afraid of difficulties and move forward.