Detailed Flower Shop Business Plan

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

In our difficult time, many dream of their own business, which will provide, albeit a small but stable income. Opening a flower shop can be not only a profitable business, but also a pleasant hobby.

At the initial stage, let it be just a small kiosk or pavilion, and when things go well, you can think about expanding. But do not rush to grab the first idea you like, you need to carefully weigh everything, having drawn up a competent business plan for a flower shop.

The subtleties of the flower business

As a rule, a flower shop is a women's business, as it arises from a hobby. However, there are also representatives of the stronger sex who are not averse to earning extra money on the love of beauty. And in this case, we can safely say that money smells, and very, very pleasant.

When starting a flower business, the first thing to decide is the type of shop. Whether it will be a huge flower shop in the city center or a small tent on the outskirts is a personal matter for everyone. It all depends on financial capabilities, but it would be more expedientStart small by researching the market first. In addition, this is a great opportunity to gain invaluable experience.

Because flowers are perishable goods, the case can create some difficulties that must be taken into account without fail when drawing up a business plan for a flower shop with calculations.

So, when opening a flower shop, it is worth exploring the types of services that similar shops in a particular area offer today. Be sure to come up with something unique and different from the standard set of ideas. Since no solemn event is complete without flowers, and some events involve bulk purchases, you should develop your own discount system, for example, sell a specific type of flower at a discount on a certain day of the week or adjust the price depending on the holiday or type of celebration.

Only when all the basic subtleties of the flower business are taken into account, you can begin to develop a detailed business plan for a flower shop. Even the nuance that most of the purchased products are imported obliges the store owner to familiarize himself with the customs code.

How to open a flower shop? Business plan with preliminary calculations

A business plan is a document in which all the details of opening your own should be clearly and in detail thought out, calculated and described, such as:

• Description and list of services that the store will offer.
• Organizational matters.
• Registration of an individual entrepreneur or LLC, registration with all regulatory authorities, registration of a license andother required documents.
• Preparation of the premises - rent, repair, decoration.
• Execution of contracts with suppliers.
• Search for staff.
• Advertising campaign.

When asking the question: “How to draw up a business plan for a flower shop?”, One cannot ignore the financial side of the issue, even if the numbers are approximate and can vary between 5-10 thousand rubles.

As a rule, the amount of expenses depends on the scale of the outlet.

So, the finished flower shop business plan with calculations is as follows:

• Rent of premises - 20-25 thousand rubles.
• Purchase of equipment - 20-30 thousand rubles.
• Purchase of goods - 20-30 thousand rubles.
• Salary of staff - 15-20 thousand rubles.
• Unforeseen expenses - 3-5 thousand rubles.

Total: 78-100 thousand rubles.

Depending on how far the supplier's base is located from the outlet, the availability of such an expense item as "transportation costs" will also depend. Of course, if you have your own vehicle, the amount spent on the delivery of goods will differ significantly from the amount of delivery on a rented car or a supplier's car.

Also, the business plan for a flower shop, a sample of which is presented above, involves accounting for a loss from damaged or unsold goods.

Which legal form should I choose for a flower shop?

If the future enterprise will have the status of "LLC", then this is the mostthe best option for a business with several partners, since it is this type of legal form that allows:

• Starting a business with little investment.
• The risks of depositors are limited to their own finances.
• Companions or contributors have the same rights, which is important when deciding the main management and organizational issues.

But if, nevertheless, it is planned to open one small outlet, and the owner himself will act as a seller, then it is more expedient to issue an "IP".

If there is already an outlet, then it is enough just to get permission to trade in flowers.

What are flower shops like?

Flower shops come in several types and generally look like this:

• Small outlet at the subway exit or in the underpass (kiosk or pavilion).
• A small shop inside a large mall, supermarket or market.
• Flower boutique in the city center or in the mall.
• Shop on the Internet.

How to choose a place to trade flowers?

Opening a flower shop, the business plan of which also assumes the right location, should be done taking into account the high traffic of people. It can be metro stations, bus stops, shopping markets. In a word, the place should be as crowded as possible. This will help increase the number of potential customers.

Amount spentto pay for the premises, it must be included in the business plan of the flower shop as an initial investment, since it will not be possible to earn money on rent earlier than in six months.

Flower business equipment

A very important point in the arrangement of a retail outlet with flowers is equipment, namely showcases. These should be not just ordinary exhibition shelves, but special refrigeration equipment, thanks to which such perishable goods as flowers will always look presentable. In such a refrigerator, the desired temperature and lighting are always maintained.

Required shelves, podiums, stands, racks, as well as other furniture that can be made to order, given the characteristics of the room. It is better to decorate the walls in the hall in warm pastel colors so that the goods look more advantageous against their background. Mirrors will help to visually expand the space and give the interior an unusual and original look.

Conditionally dividing the room into zones, you should place the flowers in pots and the flower section separately. This placement option will help the buyer quickly navigate and decide on the purchase.

Do not forget about the lighting inside the outlet, the additional costs of which must also be included in the business plan of the flower shop. This is especially important if there are houseplants on the market that need constant light.

Recruitment

If the flower trade is not just a business, but also a hobby, then ratherof all, you should think about having an experienced florist seller on staff. A person working in such a position does not have to have a specialized education, the main thing is good taste, the ability to interest the buyer and experience in similar positions.

Important qualities for a florist are good looks, competent speech and goodwill, it’s not for nothing that they say: “If you don’t know how to smile, don’t open a shop.”

Florist salary may vary depending on the region where the store is located and, of course, on their professional qualities. The most ideal option for payroll is a salary plus an interest rate. Only in this case, the seller will be motivated to sell more goods daily. All these features of the calculation and payment of wages to staff must be taken into account when drawing up a business plan for a flower shop with calculations.

Analyzing the flower market

Opening your own business, at the initial stage it is necessary to analyze competing structures. And the flower business is no exception. It is important to remember that only money is enough to open an ordinary outlet, but to open a profitable business, you also need a well-designed and thoughtful flower shop business plan, the financial model of which can be found in the next section.

So, market analysis helps to understand who will have to compete and what is needed for this. Today, competition in such a business is indispensable, becauseit has been developing quite actively in recent years.

Flower shop business plan: calculation example

The model provided as an example is a rough sketch in order to have an idea of what points should be foreseen and not missed.

In order to draw up a business plan for a flower shop that is most suitable for a particular situation, it is worth using the advice and help of a professional consultant.

• The goal of the project is to open a flower shop in a village with a population of 800 thousand people.
• Starting capital - 1 million rubles, 300,000 of which are own funds, and 700,000 are loans.
• Expected profit - 900,000 rubles. per year.
• Payback - 12 months.
• Profitability – 30%.

The preliminary estimate of the initial investment looks like this:

• Trading scarf size 30 sq. meters, delivery and installation - 600,000 rubles.
• Trade equipment and tools – 100,000 rubles
• Refrigeration equipment - 200,000 rubles
• Documentation – RUB 30,000
• Designer services and advertising costs - 70,000 rubles
• Purchase of goods - 120,000 rubles.
• Other expenses – RUB 30,000

The total amount will be RUB 1,150,000

Legal form - individual entrepreneur.

Taxation system - simplified (STS).

The outlet is located in a residential area of the city, close tobus stop. The main customers will be residents of the microdistrict of the age category from 25 to 60 years, and this is 25 thousand people from the total number of residents. According to statistics, about 70%, or 17.5 thousand, buy flowers once a year. The average purchase price is 600 rubles, therefore, 17.5 x 600=10.5 million rubles is the annual market capacity.

However, given the presence of two competing outlets in the region, each of the three will have a profit of about 3.5 million rubles a year, and taking into account holidays, plus another 20% of the total income for the year. The result will be about 4.2 million rubles. per year.

The flower shop business plan sample attached also includes the monthly expenses of the business, such as:

• Salary of staff / 4 people - 10,000 rubles. + 2% of sales (8,000 rubles), respectively - 72,000 rubles. per month and 864,000 rubles. per year.
• Deductions in social insurance - 18,000 rubles. per month and 216,000 rubles. per year.
• Rent of land 25,000 rubles. per month, 300,000 rubles. per year.
• Payment for services - 10,000 per month and 120,000 per year.
• Losses - 15% of the amount spent on the purchase of goods - 18,000 per month and 216,000 per year.
• Utilities - 5,000 per month and 60,000 per year.
• Transport - 10,000 per month and 120,000 per year.
• Other expenses - 10,000 per month and 120,000 per year.

As a result, the total amount of monthly expenses is 168,000 rubles. per month and 2,016,000 per year.

The finished business plan for a flower shop clearly demonstrates the estimated annualincome, which will amount to 4,200,000 rubles. per year, and the cost of expenses is equal to the sum of one-time investments and monthly expenses, that is, 3,166,000 rubles. Consequently, the amount of gross profit for the year will be equal to 1,034,000 rubles, and after taxes it will be - 878,900 rubles. net profit.

Proper marketing

Opening your own business, every entrepreneur tries to take into account all the features of the chosen business. However, it often happens that in a hurry one of the main conditions for success is forgotten - an advertising campaign.

Advertising is that obligatory item of the plan, without which today there is nowhere, because, as you know, it is the engine of progress.

The first step is to draw up a marketing outline, namely an approximate business plan - an example with calculations. A flower shop, like any other, requires proper filing. Advertising costs will not be too high, but any business owner will be satisfied with the result.

There are quite a few types of advertising campaigns, but the most effective for such a store are:

• Publications in magazines, newspapers and online publications.
• Advertising on radio and TV.
• Street billboards.

As a rule, the choice of the type of advertising depends on the financial capabilities of the entrepreneur.

The interior of the store, that is, its exterior design, can also be considered as advertising. The sign is also important, so it should be as eye-catching as possible.passers-by, who must, passing by, remember a pretty flower boutique with a beautiful shop window and a catchy sign. Thus, ordinary passers-by can become potential customers.

The number of regular customers is influenced not only by the appearance of the store, a polite seller and a rich assortment. The buyer also wants to see a good price, which is influenced by two factors:

• Product quality.
• Price for a similar product in competing organizations.

In order not to trade at a loss while chasing a client, you should come up with something original, your own discount system. For example, if a customer only wants to buy three roses, you could offer them five and a modest gift of a small bouquet of daisies.

Assessing risks

In the flower business, as in any other business, there is a concept of "risk" that must be taken into account when drawing up a business plan for a flower shop. A commodity such as flowers cannot be stored forever: if it is not sold within a few days, then the entrepreneur will have losses instead of profits. Withering bouquets are suitable only for the funeral ceremony, and even then, if there is a buyer.

Buying goods in bulk also implies the possibility of losses, since in large quantities flowers with broken stems, torn petals can come across, because it is simply impossible to consider each during the purchase. To avoid such unexpected costs, purchases should be made in small lots. This will enablevisually assess the condition of flower products.

If the flower trade proves to be profitable in a particular region, you should consider opening an online flower shop. However, this option will be appropriate even in the case of a poorly developing trade.