Do you want to start a flower shop or floral business? There are several successful business models you can explore as a beginner. Home-based, an online flower shop, and brick and mortar retail store are some of the most popular ways of staring a flower business. Here in this article, we will walk you through the different aspects of starting a floral business step by step.
Globally, the floriculture industry is dynamic in nature. Also, the industry is considered a fast-growing industry. It has seen 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.
Stepwise Business Plan Guide to Start a Flower Business
Skills Required For Florist Business
In starting a floral business, knowing the trade is always beneficial. If you have experience in this field, you will have certain advantages in starting than a beginner. 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.
Flower Business Plan
Crafting a business plan is important in starting a florist business. Determine the 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 return on investment. A proper business plan will help you to take the right steps at the right time and to get finance.
How Much Does it Cost to Start a Florist Business
Two different types of costs are involved in the florist business. One is a 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 a bank or credit cooperatives.
If you are only looking for the working capital you can apply for 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.
Floral Business Market Analysis – Is it Profitable?
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 a 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 and register your business accordingly. Check licensing or permission criteria to run a floral business in your locality. It may vary from state to state. In India, GST Registration is a must and also you need to apply for permission according to the Shops and Establishment Act.
Florist Business Setup
Selecting the right store location is most crucial in this business. A visible location with good footfalls is an ideal location for a flower store. 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 to the rental agreement. Ask an experienced interior consultant to craft a floor plan. Pay attention to interiors. Proper window display plays an important role in this type of retail business. Controlled room temperature and moisture are required. Apart from the display area, you will need to set up a cash counter and 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. 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 Floral Business
According to your plan select the products, services, and pricing. As I discussed earlier, you can go with a specific variety. Such as selling flower bouquet, plants and even gifts from the storefront, 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 on the price.
According to the segments you want to cater, you will need to hire manpower. Most important criteria are getting good design employee. If you can afford, try to hire an experienced employee. In starting you can also hire design employee on a part-time basis.
Promote Your Flower Business
Every business success depends on your selling abilities. Attractive signage is considered as the most minimum and effective outdoor branding activity. Utilizing other businesses is a great way. Establish a business relationship with event planners, decorators. The hospitality and fashion industry is your potential market.
Small advertisements in Local television channel, newspaper, event or wedding magazines are also good platforms for promoting floral business. Having an online presence always helps in attracting a wider audience. Create a 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 the blog. Register with an online marketplace to make doorstep delivery and nationwide business. Use social media carefully. Donating flowers for charity or to community events is a wonderful promotional tool for florist business.
Starting and running a flower business demands a lot of dedication, hard work, a flair for creativity and a true love for flowers. Hope this guide will inspire you in starting your own floral business.