A flower shop is not just a dream for many women and exceptional beauty, but also a very profitable business.
If you have set yourself such a goal, first you need to draw up a business plan for a flower shop, which will answer many important questions.
Flower shop business plan: evaluate the initial investment in the business
Suppose your goal is to open a flower shop in your own city with a population of several hundred thousand people. You will sell not only fresh bouquets, but also related products.
This requires about 1 million dollars. But let’s talk about everything in order.
Flower Shop Business Plan: Key Benefits of This Business
What is interesting flower business?
- Holiday around you. This bright field of activity simply cannot but bring joy, especially on the eve of holidays. Flowers are always in demand, but just before March 8 and other significant days, you will always be in the black.
- A well-thought-out business plan for the flower business, proper organization of work and courtesy of the staff quickly build up a base of regular customers.
Flower Shop Business Plan: Organization Costs
The main costs of setting up a business include:
1) renting a kiosk or pavilion. The cost, of course, depends on the location. On average, you will pay about 10-30 thousand dollars a month.
2) All the necessary equipment (tables, racks, shelves) — will cost 80 thousand dollars.
3) Refrigerator and showcase. For this equipment you will pay 180 thousand dollars.
4) Advertising banner and room design — 70 thousand dollars.
5) Goods — about 100,000 + large vases, jugs, etc.
6) Do not forget about all kinds of organizational costs and obtaining all permits. These questions will take you a little time and about 30 thousand dollars.
Flower shop business plan: the essentials
The main thing here is an assortment that will quickly pay back all your expenses. As a rule, such a process takes from a year to 1.5 years. Next comes net income.
What needs to be provided to customers in a flower shop?
- about 20 positions of different fresh cut flowers;
- pots of different sizes and colors;
- fertilizers, soil, seeds;
- plants for decoration.
About 60% of the fresh cut flowers that are in demand are roses. The main assortment is imported flowers from Holland, Turkey and Ecuador.
The markup is approximately 150%. Why so high? The thing is that the flowers quickly deteriorate.
But do not forget about holidays. Before March 8, September 1 and February 14 prices can be set higher.
Flower Shop Business Plan: Running Costs
We have already talked about the initial costs. Therefore, you should pay attention to how much money will go monthly.
Costs for each month:
- staff salary — 60 thousand;
- insurance deductions — about 18 thousand dollars;
- rent of premises — from 10 to 30 thousand;
- loss of goods — about 15 percent;
- utilities — $5,000;
- transportation costs — $ 7,000;
- in addition — about 10 thousand dollars.
What is «lost goods»? This is damage to the flower cut.
Flower shop business plan: what should you pay attention to?
The competition in this area is very high. By the way, if there are too many flower shops in your city, then you should think about creating an online store or a large flower supermarket.
What to make your main competitive advantages , if you still open a small store?
- The main factor is the convenient location. Consider the option at the intersection of several streets, where there are constantly people.
- attractive prices;
- first you can set a longer operating mode;
- delivery of bouquets to any point of the city;
- promotion of services on the Internet;
Don’t forget to be polite too. A friendly salesperson who is always willing to help the customer and cater to every whim is sure to win trust.
We hope that our flower shop business plan answered your questions and helped you achieve your own goal.