How to Start a Flower Shop – Business Plan Sample

a florist working in her shop

The idea of a flower shop doesn’t seem to be new, but if you love natural beauty and flowers, you should not hesitate to start one. Flowers enlighten any event; it could be a wedding or a spiritual occasion. If you analyse that there is a surging demand for flowers in your area, despite the flower shops, you can start a flower store with a few unique ideas. It will certainly be a profitable venture, and your penchant for flowers will be satisfied. 

Commonly, people associate flowers with fresh flowers, but if you are interested in artificial flowers (as you want to avoid the risk of selling perishable fresh flowers and you are against cutting them off from trees), you can choose that niche. Specialising in one of the niches is better, though some might even choose both types of flowers. You can grow flowers in your backyard or roof-top garden or outsource the artificial ones from a supplier. 

But before you start a flower shop (no matter how simple it is), you need to draft a meticulous business plan. Add all the components, do not skip any part, or assign ‘write it later’ as procrastination is not advisable while writing a full-fledged business plan

A Sample Business Plan for a Flower Shop 

The Flower Industry Overview 

The flower business does not need an introduction. It can be traced to the 18th century in England, and gradually it spread across the world, including the United States. People grow flowers for fun and as a hobby, but they can also take it to the next level and start a profession. In the United States, $3 billion worth of flowers were grown in the 1950s while the number increased to $100 billion in 1992. The floral industry grows at a remarkable rate of 3 percent every year. But this doesn’t mean you can start selling flowers from the comfort of your home and become a millionaire. Every business takes time and careful planning to flourish. 

There are more than 35000 full-fledged florists in the United States scattered all over the country. Even if a florist cannot brag over its share in the market, the total growth rate is remarkable. 

Setting up a shop at a prime location in the city is an advantage as you can seek the immediate attention of the onlookers. Tucking your shop in the corner of an urban area means fewer sales. 

Executive Summary 

This part is crucial as it contains specific information about your flower shop business. It includes: 

  • Name and address of the florist –You can use your name as Kate Nicholson Florists or separate your name from the business by choosing a name like Flower Magic. 
  • Registration details, location, and primary objective of the business – Growth and trade of all types of flowers, floral designs, and arrangements done as per customer requests. Delivery of flowers to a specific location, modes of payment accepted, Retail services of flowers and flower arrangements, highest customer service standards, prompt acceptance of requests and queries. 
  • The technology used – incorporation of CRM software to manage details and orders of all customers. 
  • Online store – Apart from a physical store, an online store will also be established to help customers avoid the hassle of traveling to the shop. 
  • Owner details – You can specify your qualifications, experience, and interests. 
  • Vision – You aim to set up more outlets in the major cities of the United States. 

Products and Services 

Though we have given basic information about our intentions in the earlier part, here are the specifics. Whether you want to sell artificial flowers or sell freshly grown flowers, this section must contain the requisite details. You can list out the products and services as below: 

  • Trading in fresh flowers. 
  • Trading in flower arrangements and potted plants. 
  • Providing flowers and related arrangements to special occasions as per customer preferences. 
  • Supplying gifts on various occasions such as anniversaries and birthdays to the customer location. 
  • Conducting flower arrangement workshops for those who want to learn it as a hobby. 

Mission and Vision Statement 

The mission of this business enterprise is to supply and sell flowers and flower arrangements to the people living in your city (example Chicago). An aim to open up more outlets has also been discussed in this plan. 

The vision of this business enterprise to lead the florist industry and serve customers with the highest standards. Business expansion is also on the mind, but perfection and efficiency are the key objectives. 

Business Structure 

The type of business entity structure depends on the vision. Your vision could be setting up a usual round-the-corner flower shop, or you want to create a business empire selling flowers around the country. Yes, you can do that. 

But choosing the right business structure plays an important role in how you want to expand your business, comply with legal formalities and pay taxes. You need to hire a talented workforce, no matter how tiny your business looks in the beginning. Choosing a revenue model is inevitable at this stage.

You can also set up a profit-sharing model for the senior staff for future profits, but ensure that you provide equitable returns to everyone, including the ones at the lower and middle levels. 

Following are the important job roles to consider:

  1. Business owner or Chief Executive Officer. 
  2. Shop Manager – He will be the one responsible for the administrative tasks of the organization. 
  3. HR Manager. 
  4. Merchandise Manager. 
  5. Sales and Marketing Head. 
  6. Information Technology department. 
  7. Cost Accountant. 
  8. Customer Service Representatives. 
  9. Cleaning staff. 

SWOT Analysis 

Every business has its strengths and a set of weaknesses that one cannot ignore. Even if your intention to start a small flower shop in the initial stages might seem mediocre, it is essential to gauge the existing competition and study your business feasibility. Within 2 to 3 years, you will understand how you can take the further steps or tweak your existing plan a bit. 

SWOT analysis is cumbersome to formulate and improve our future plans. We know that we are not the pioneers in selling flowers in our area. There are numerous tiny shops and huge supermarkets selling fresh flowers to the customers. They are doing well, and competing with them is a massive challenge. A SWOT analysis helps a business to make suitable decisions, fight the competition and stand out in the industry. It also helps in developing a concrete business model. 

Following is the summary of the SWOT analysis for the flower shop business: 

  • Strengths – Physical and online presence, payment options available to the customers for ease and convenience, prime location, ease in placing orders, making queries, and requesting customized flower arrangements, excellent customer service – all these are highlights of the flower shop business you intend to start. 
  • Weakness – Tough competition from supermarkets and florists who are into this business and provide flowers at the best prices. 
  • Opportunities – Prime location of the shop can fetch more customers and sales. Moreover, supermarkets do not provide delivery services or flower arrangements as per customer requests. But you can specialize in this niche and bring out a different perspective of a flower shop. 
  • Threats – Economic recession can surely affect purchases as people won’t be much interested in buying and gifting flowers. If a new florist or a supermarket opens up, it could be another blow to our shop. 

Market Analysis and Marketing Plan

Online presence is of crucial importance these days. Customers will prefer ordering flower arrangements right from the comfort of their homes instead of visiting your shop in person. Presence on social media handles can result in several benefits. 

Efficient shipping is what people expect, and the other florists specialise in. Prepare a comprehensive catalog of your products and services and make it accessible to prospective customers. They should seek an idea of what is available at your store and not assume that you are an ordinary flower seller. Joining a florist association, collaborating with casket sellers are the other ways of seeking more business. 

As you deepen the market analysis, you will develop more ideas to seek more sales and opportunities. 

Target Audience 

A common misconception of business entrepreneurs is that only individual customers buy flowers. But no, a lot of groups and institutions have a surging demand for flowers, both natural and artificial. Event planners, churches, religious institutions, households, corporate employees, businessmen, couples about to wed, students, and tourists will be your target audience. 

Ensure that your flower shop should have ample space for customers to browse through different flower arrangements. If it is just an open store right around the corner, customers might have difficulties parking their vehicles and shopping for flowers. They will instead hop onto supermarkets then. 

Sales and Marketing Strategies

A well-positioned and well-stocked flower shop will never be out of business. If you have unique traits to offer that a supermarket cannot, you will surely win over your customers’ hearts daily. The sales projections can be made by analyzing the sales and other patterns of the regular start-ups in the same area. A market study is not always studying about the competitors; it is also about studying new start-ups and the way they conduct business operations. 

You can hire an expert or seek a mentor’s advice about the florist industry to help formulate marketing strategies that actually work. Some of the marketing strategies are as follows:

  1. A lavish celebration of the flower -shop opening for all living in that area. 
  2. Sending invitation letters to the target audience. For instance, you can invite all event planners to the flower shop opening and ensure that they are present. 
  3. Stocking all the flowers and related merchandise all the time. Customers hate when something is unavailable. 
  4. Proper use of signage banners. 
  5. Arranging for flower exhibitions for people who pass by and living in that area. 
  6. Loyalty plan for regular customers. 
  7. Special discounts for customers sending bouquets to loved ones regularly. 

Publicity and Advertising Strategies 

The prime location of the shop certainly enjoys plenty of advantages, but you should also work on your publicity strategy. Promoting a flower shop is essential right before its launch date. Remember that publicity and advertising strategy is not about informing your future customers about a new flower shop in the city. It is communicating your brand presence to the public. Hence, when you formulate publicity and advertising strategy, ensure that you have hired a graphic designing team as well. A brand strategist can also help you in this process. All these tasks should be aligned with each other. 

Some of the ways to advertise your business are as follows: 

  1. Advertising in media, print and audio-visual both. 
  2. Harnessing social media channels. 
  3. Positioning of ad banners and signage boards properly across the city or town. 
  4. Use of fliers in the nearby areas. 
  5. Contacting the target audience such as event planners and churches about the new shop details. 

Pricing Strategy 

Remember that there will be other places which sell fresh flowers at many low rates. But this doesn’t mean you have to lower down the prices of your products and services and wait for customers to approach you. You don’t have to compromise on the prices all the time. 

Instead, you can emphasize the USPs you have, such as customization and excellent customer service. Ensure that the prices are competitive, and this doesn’t mean they have to be low. Another important aspect is to make available all payment options at your store. 

Budgeting 

The expenditure required to start up a business depends on your goals, whether you want to keep the business minimal or wish to expand it countrywide. The following three sources of finance can be readily accessed: 

  1. Personal savings of the business partners. 
  2. Borrowings from friends and family members – since there is no fixed repayment schedule, you can plan it easily. 
  3. Loans from banks and financial institutions – This is a serious consideration, and all partners should content and plan out for the same. 

Sustainability and Expansion Strategy 

The first aim of your business needs to be survival. The business should thrive on its cash flow and not depend on loans and borrowings. High standards of customer service, competitive prices, employee welfare, brand recognition – all these activities need to be planned in the expansion strategy category. Hiring the best workforce is also one of the keys to expanding the business. 

We hope you found this business plan template useful. 

FAQs

1. What are the necessary steps to start a Flower Shop?

The necessary steps to start a Flower Shop include researching the local market, determining the target customer, obtaining financing and establishing a business plan, obtaining a business license, finding a location and preparing the space, setting up shop, and purchasing inventory and supplies.

2. How do I secure financing for my Flower Shop?

To secure financing for a Flower Shop, consider applying for a small business loan, speaking with investors, or taking out an SBA loan.

3. What are the legal requirements to open a Flower Shop?

The legal requirements to open a Flower Shop may vary from state to state, but generally include obtaining a business license, registering with the state, obtaining necessary tax or other permits and paying state and local taxes.

4. What type of equipment is needed to open and run a Flower Shop?

The specific equipment needed for opening and running a Flower Shop will depend on the products you plan to carry and the services you plan to offer, though the basic items needed are typically a refrigerator, display cases, cash register, computer, and packaging materials.

5. What type of insurance should I have for my Flower Shop?

The type of insurance needed for a Flower Shop may vary depending on the services you plan to offer and the size of the shop, but generally includes public liability insurance, product liability insurance, and cyber liability insurance.

6. How do I find a location for my Flower Shop?

When searching for a location for a Flower Shop, consider the population of the area, the availability of parking, the competition in the area, the zoning laws, and the rent or lease rates.

7. Does my Flower Shop need to be certified?

Most Flower Shops do not require certification to open and run, though certain state and local laws may require certification for selling certain types of flowers.

8. How much money can I make from a Flower Shop?

The amount of money you can make from a Flower Shop largely depends on the business model, size, location, and products or services offered.

9. How do I find suppliers for my Flower Shop?

To find suppliers for a Flower Shop, attend flower shows, join associations, research online and look for local, reputable wholesalers.

10. In what ways can I market my Flower Shop?

To market a Flower Shop, consider using word of mouth, online marketing, advertising, hosting events, and using traditional methods like flyers and direct mail.