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, making up a competent business plan for a flower shop.
The subtleties of the flower business
As a rule, a flower shop is a female business, as it arises from a hobby. However, there are representatives of the stronger sex, who are not averse to earning money on the love of beauty. And in this case, we can safely say that the money smells, and it’s very, very nice.
Starting a flower business, the first thing to decide is the type of store. Whether it is a huge flower salon in the city center or a small tent on the outskirts, everyone's personal business. It all depends on financial capabilities, but it would be more advisable to start small, having previously studied the market. In addition, this is a great opportunity to gain invaluable experience.
Since flowers are perishable goods, the business 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, opening a flower outlet, it is worth exploring the types of services that similar stores 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 possible without flowers, and some events involve wholesale purchase, you should develop your own discount system, for example, sell a specific type of flower at a discount on a specific 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 the flower shop. Even the nuance that most of the purchased products are imported, obliges the store owner to familiarize themselves with the customs code.
How to open a flower shop? Preliminary Settlement Business Plan
A business plan is that document in which all the details of opening your own should be clearly thought out, calculated and described, such as:
- Description and list of services that the store will offer.
- Organizational matters.
- Registration of IP or LLC, registration with all regulatory authorities, registration of a license and other necessary documents.
- Preparation of the premises - rental, repair, decoration.
- Registration of contracts with suppliers.
- Search for staff.
- Advertising campaign.
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 figures are approximate and can vary between 5-10 thousand rubles.
As a rule, the size of expenses depends on the scale of the outlet.
So, the finished business plan of the flower shop with the calculations is as follows:
- Rental of premises - 20-25 thousand rubles.
- Equipment purchase - 20-30 thousand rubles.
- Purchase of goods - 20-30 thousand rubles.
- Salary of personnel - 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 item of expenses as “transportation costs” will also depend. Of course, if you have your own means of transportation, the amount spent on the delivery of goods will significantly differ from the amount of delivery on a rented car or a car supplier.
Also, the business plan of the flower shop, a sample of which is presented above, involves accounting for losses from damaged or unsold goods.
What legal form to choose for a flower shop?
If the future enterprise will have the status of “LLC”, then this is the most optimal option for a business with several partners, since this type of legal form allows:
- Starting a business with a small investment.
- The risks of depositors are limited to their own finances.
- Companions or investors have the same rights, which is important in deciding the main managerial and organizational issues.
But if it is still supposed to open one small outlet, and the owner himself will act as a seller, then it is more advisable to draw up an IP.
If a point of sale is already available, then simply obtaining permission to trade in flowers is enough.
What are flower shops like?
Flower shops are of several types and, as a rule, look as follows:
- A small outlet at the exit of the metro or in the underpass (kiosk or pavilion).
- A small store inside a large shopping center, supermarket or market.
- Flower boutique in the city center or in the shopping center.
- Shop on the Internet.
How to choose a place to trade flowers?
The opening of a flower shop, the business plan of which also assumes the correct location, should be made 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.
The amount spent on paying for the premises must be included in the business plan of the flower shop as an initial investment, since it will be possible to earn a rental no earlier than six months later.
Equipment for the flower business
A very important point in arranging a retail outlet with flowers is equipment, namely shop windows. It should not be just ordinary exhibition shelves, but special refrigeration equipment, thanks to which such a perishable product, like flowers, will always look presentable. In such a refrigerator, the right temperature and lighting are always maintained.
Shelves, podiums, stands, racks, as well as other furniture that can be made to order, taking into account the characteristics of the room, are needed. The walls in the hall should be decorated in warm pastel colors so that the goods look more profitable against their background. Mirrors will visually expand the space and give the interior an unusual and original look.
Having conditionally divided the room into zones, it is necessary to arrange separately flowers in pots and a flower cut. 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 indoor plants on sale that need constant light.
Staff recruitment
If the flower trade is not just a business, but also a hobby, then most likely you should think about the presence of 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 appearance, competent speech and goodwill, it is not for nothing that they say: “If you don’t know how to smile, don’t open a shop.”
The florist’s salary may vary depending on the region in which the store is located, and, of course, on his professional qualities. The most ideal option for calculating wages is salary plus interest rate. Only in this case, the seller will be motivated to sell more goods daily. All these features of the accrual 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 color market
Starting 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 to open a regular outlet, only money is enough, but to open a profitable business, you also need a well-designed and thought-out business plan for a flower shop, 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 you cannot do without competition in such a business, since it has been developing quite actively in recent years.
Flower Shop Business Plan: Settlement Example
The model proposed as an example is an approximate outline in order to have an idea of what points should be foreseen and not missed.
To draw up a flower shop business plan that is most suitable for a specific situation, it is worth using the recommendations and the help of a professional consultant.
- The aim of the project is the opening of a flower shop in a village with a population of 800 thousand people.
- Starting capital - 1 million rubles, 300,000 of which are equity, and 700,000 are credit.
- The expected profit is 900,000 rubles. in year.
- Payback - 12 months.
- Profitability - 30%.
A preliminary estimate of initial investments looks like this:
- Trading scarf of 30 square meters. meters, delivery and installation - 600 000 rubles.
- Trading equipment and tools - 100 000 rubles.
- Refrigeration equipment - 200 000 rubles.
- Paperwork - 30,000 rubles.
- Designer services and advertising costs - 70,000 rubles.
- Purchase of goods - 120,000 rubles.
- Other expenses - 30,000 rubles.
The total amount will be 1,150,000 rubles.
Legal form is an individual entrepreneur.
The tax system is simplified (STS).
A retail outlet is located in a residential area of the city, near a bus 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 of the total number of residents. According to statistical indicators, 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 points in the region, each of the three will account for a profit of about 3.5 million rubles a year, and taking into account the holidays, plus another 20% of the total income for the year. The result will be about 4.2 million rubles. in year.
The business plan of the flower shop, a sample of which is attached, also includes the monthly expenses of the enterprise, such as:
- Personnel salary / 4 people - 10,000 rubles. + 2% of sales (8,000 rubles), respectively - 72,000 rubles. per month and 864 000 rubles. in year.
- Social security contributions - 18,000 rubles. per month and 216,000 rubles. in year.
- Land lease 25 000 rub. per month, 300 000 rub. in 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.
A ready-made business plan for a flower shop clearly demonstrates an estimated annual income of 4,200,000 rubles. per year, and the cost price is equal to the sum of one-time investments and monthly costs, 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 his own business, each 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 mandatory point of the plan, without which it’s nowhere, because, as you know, it is the engine of progress.
The first step is to draw up a marketing sketch, namely an approximate business plan - an example with calculations. A flower shop, like any other, requires proper delivery. Advertising costs will not be too high, but any business owner will be satisfied with the result.
There are many types of advertising campaigns, but the most effective for such a store are:
- Publications in magazines, newspapers, as well as in online publications.
- Advertising on radio and television.
- Street billboards.
As a rule, the choice of type of advertising depends on the financial capabilities of the entrepreneur.
The interior of the store, that is, its external design, can also be considered as advertising. The sign also matters, so it should be as attractive as possible to passers-by, who must pass by and remember a pretty flower boutique with a beautiful window and 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, the formation of which is influenced by two factors:
- Product quality.
- The price of a similar product in competing organizations.
In order not to trade at a loss in pursuit of a client, you should come up with something original, your own discount system. For example, if a client wants to buy only three roses, it is worth offering him to buy five and make a modest gift in the form of a small bouquet of daisies.
Risk assessment
In the business of selling flowers, as in any other, there is a concept of "risk", which must be taken into account when drawing up a business plan for a flower shop. A product such as flowers cannot be stored forever: if it is not sold for several days, then the entrepreneur will have losses instead of profit. Fading bouquets are suitable only for a mourning ceremony, and even then, if there is a buyer.
Purchasing goods in bulk also implies the probability 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 unforeseen costs, purchases should be made in small quantities. This will provide an opportunity to visually assess the state of flower production.
If the flower trade turns out 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 poorly developing trade.