How to start a flower business from scratch. Flower business from scratch. Is this a profitable business - a flower business, what reviews
- an idea that visits many people who dream of having their own business and finally starting to work for themselves. The advantages of this type of activity are minimal initial costs, ease of organization and great prospects in terms of development. At correct design business and the presence of a business plan, you can achieve good success and recoup the costs within a year.
In what direction can you work?
Before proceeding with the registration, formalization and purchase of equipment, it is worth understanding the formats of the flower business. The following options are available here:
- Small flower tent. There is high competition here, but with the right choice of a place for trading, a shortage of buyers is excluded. In order to count on big profits in business, it is important to know the features of flower storage, take into account their fragility and fragility. On average, twenty types of flowers are enough for such a business. Product packaging plays a major role.
- Small flower shops. Such outlets should be based in busy places where there is a large flow of people. Unlike a tent, here the entrepreneur has a large area at his disposal, which allows him to expand the assortment by adding flowers in pots, souvenirs, flower soil and other goods to the sale. This format implies higher investments. The average payback period depends on the time of year when the store was opened. If this happens before the holidays, the costs will recoup faster.
- Online flower shop. This type of business is suitable for people who have real life trading experience. The question is is it profitable to open a flower shop online. With the development of the Network, this direction has become really popular and brings a stable profit. People get the opportunity to place orders without leaving their homes. The advantages of the method are that there are no large expenses, because it is not necessary to spend money on the purchase (rent) of premises and equipment, as well as the search for employees.
- specialized boutiques. Such a flower shop is located on the first floors of buildings or in shopping centers. Here everything should be at the highest level, starting with the external design and ending with the preparation of the bouquet. To open such a boutique will require higher costs (about $80,000). With a competent approach in doing business, you can count on stable profits and a quick payback. On average, such a salon can bring 5-7 thousand dollars.
Subtleties of registration
The next step is to formalize the business. Here it is important to consider options for the form of ownership - IP or LLC. The first type is suitable for a flower pavilion or a small shop. There are no problems with obtaining a certificate from the authorized bodies. The optimal taxation system for individual entrepreneurs is the simplified tax system, thanks to which you can reduce tax expenses (you will have to pay only from actual profits). This option helps out in the off-season, when the flower shop brings less profit.
Another thing is when it comes to a large salon or boutique. Influential people and companies make purchases here, so you cannot do without registering an LLC. A feature of this organizational and legal form is the possibility of making payments by bank transfer, through a specially opened current account. Here, the optimal form of taxation is UTII, when the calculation is made according to average parameters, and payment can be made in installments.
The next stage after the registration of an LLC or individual entrepreneur is the purchase of KKM and its registration with the Federal Tax Service. If you act on your own, it will take about two weeks. If you use the service of cash register sellers, the procedure will take about three days. According to the legislation, an individual entrepreneur can work without a cash register. The problem is that not all suppliers are ready to cooperate without a stamp.
What documents are required?
The flower shop must have the following documentation:
- Review book.
- SES conclusion.
- Permission to trade (issued by municipal authorities, taking into account Federal Law No. 381).
- Price (optional).
- Sales invoice (may not be shown to customers).
All papers must be correctly executed and available to customers. The rest of the documents should include a lease agreement, a cash register, as well as a certificate confirming the registration of KKM. It must be kept in point of sale. Employees will also need to have health books.
To open a flower shop , certificates are not needed, but their presence increases the confidence of buyers. If you work with experienced suppliers, they will definitely have certificates. It remains to make a copy of the document and keep it at hand.
Finding a place
Choosing the location of a flower shop is an important and far from easy task. In this type of business, there is always competition, so you will have to sweat over the search for a suitable premises. The average cost of a retail space with a large flow of customers is 60-100 thousand rubles a year. If you have any difficulties in finding a place, you can invite a specialist.
There are several options for arranging a store:
- In a small “house (tonar, trailer).
- AT mall.
- In an already rebuilt house (the first line by the road).
- In a separate building (best option).
- In the pavilion, consisting of modular elements.
From the standpoint of costs, it is more profitable to rent premises in a shopping center, and the “pavilion” option will cost more.
Remember that the success of a business largely depends on the correct choice of location, so it is undesirable to rush into this matter.
Purchase of equipment
Now consider, what it takes to open a flower shop. The minimum set includes work tables, showcases, shelves, racks and refrigeration equipment. You will also need a tool for florists, which include:
- Secateurs.
- Scissors.
- Clippers and more.
The purchase of a KKM for an individual entrepreneur is optional (as mentioned above), but if you choose an LLC, you will have to fork out. With this form, you can not do without printing checks and other documents confirming the purchase.
Range selection
When compiling step-by-step instructions for business development, it is worth taking into account one more factor - the product range. If you deal only with slices, you can’t count on big profits. Expansion of the range is indispensable. On sale should be fresh flowers, green spaces, various compositions of dried flowers. Of the additional products with which you can expand the range, it is worth highlighting:
- Cache-pot of various shapes and sizes.
- Decorations for bouquets.
- Toys, postcards and souvenirs.
- Figurines made of marble, plaster or plastic.
It is advisable to replenish and update the choice of goods on a regular basis, which guarantees a stable income and coverage of customer needs.
Staff selection
Do not underestimate the importance of another stage - the selection of employees. A small store can get by with three employees, namely an administrator, a florist, and a salesperson. If you have an Internet resource, as well as a delivery service, you will need one more person.
You can not take to the store people who previously worked only on the street. Experienced entrepreneurs assure that the taste of such people has already been spoiled, so instead of beautiful bouquets, “wreaths” are obtained. In addition, when selecting people, you should not pay attention to documentary evidence of experience - the presence of certificates, diplomas or other papers confirming the completion of courses. Experience plays a key role in this field.
Advertising
It is not enough to open a flower shop - it needs to be promoted, to convey to people information about the emergence of a new outlet. The amount of profit at the initial stage depends on the success of this stage. Lots of promotion options:
- Create a beautiful sign.
- Smart window dressing.
- High quality goods.
- Creation of advertising posters and submission of announcements.
You can create your own website on the Internet, which will perform two functions at once - to bring new customers and provide information about the outlet, promote the brand. If funds are available, you can advertise on radio or TV. A good option would be to cooperate with large companies that can be offered wholesale at a more affordable price. If you make the expenses for the promotion of a flower shop regular and choose the right strategy, the result will come.
Basic costs
Now consider the main dilemma, how much does it cost to open a flower shop from scratch. The items of expenditure are as follows:
- Room rental. Costs depend on many criteria, from the area to the location of the outlet. For the arrangement of the store, 45-50 square meters are enough, which will cost 20-100 thousand rubles of rent every month. When opening a boutique in the city center, you will have to pay more, but it is undesirable to immediately invest a lot of money (in the absence of experience).
- Room renovation. The rented area is not always suitable for trade (if it is not a place in a shopping center). So the costs can increase by another 20-30 thousand rubles with the usual cosmetic repairs. If a designer is involved, the costs are much higher.
- Equipment. Equipment costs depend on the form of business. So, the purchase of KKM will result in 10-15 thousand rubles, and the total costs will be (based on the list above) about 150-200 thousand rubles.
- Staff. If you have four employees, you need to be ready to give 80-100 thousand rubles a month. At the initial stage, you can get by with one seller, and take care of the rest of the issues. With a professional approach to organizing a business and hiring an experienced florist, you will have to spend a large amount. The services of such specialists cost 30-40 thousand rubles a month. In addition, employees will have to be sent to advanced training courses, which also translates into a tidy sum - approximately 5-30 thousand rubles (depending on the regional location).
- Primary purchase. Already at the beginning of the activity, it is necessary to purchase goods so that you can offer something to customers. An average of 40-50 thousand rubles (for the capital) will go to buy a cut. Rates are lower in regions. The total cost of filling the store is 350-400 thousand rubles.
The total monthly expenses average about 700-800 thousand rubles. This amount can be significantly reduced if you save on equipment, repairs, rent and other cost items.
How to increase profit?
When developing step-by-step instructions for business development, it is important to focus on increasing profits in the future. Profit depends on the following factors:
- Choice of scale of activity (boutique, pavilion, shop).
- Location.
- Supply security.
- Product advertisements.
- Applied methods of sale.
- The size of the initial investment.
How to increase income?
To increase the level of profit, you should use the following tips:
- In addition to a bouquet for a young girl, you can offer chocolate or other sweets. The gifted person will be satisfied, and the flower shop will receive additional income.
- The presence of chewing gums or special sweets can be useful for a young couple who may kiss during a date.
- It is possible to sell alcohol along with flowers. At the same time, there is no need to buy a license - it is enough to conclude an agreement with one of the stores selling alcoholic beverages.
Results
The flower business is considered a profitable business. Its advantages include:
- Small start-up capital. It is not necessary to start immediately with the opening of the store. At the start, you can limit yourself to a pavilion near the metro. In this case, the costs will be about 300-400 thousand rubles.
- Ease of closing a business. If necessary, you can cover up activities and sell equipment.
- Large trade margin. The average markup in the flower trade is 120-150 percent (not counting the cost).
Among the shortcomings, it is worth highlighting the fragility of the product and the seasonality of the business. But such disadvantages are not a reason to refuse such an attractive way of earning.
Today, the flower business is very popular with novice businessmen. Many are interested in how to start a flower business, the profitability of a flower shop and the possibility of creating this business from scratch in a small town or at home.
You can start it with minimal investment, or enter it "in a big way" by investing a tidy sum. The cost of a flower business depends on the city, the chosen format, the features of the assortment and services. Based on this, it is impossible to write a general business plan and calculate the profitability of a flower shop so that it reflects reality. In this article, we will consider the nuances and risks, the pros and cons of the flower business from scratch, depending on its chosen form, which will help the reader to get a general idea, form their own opinion and individually predict the profitability of the flower business.
No one will dispute the fact that there are very few people in the world who are completely indifferent to flowers. And, passing by the windows of a flower shop, we involuntarily slow down and stop to admire the bright flower buds, baskets with flower arrangements, ready-made bouquets. A lot of people, especially women, dream of working as a florist or their own small flower shop, or maybe a large salon, or an online store. After all, giving people a holiday every day is wonderful! How to start a flower business?
If you decide to engage in this type of activity, first of all you need to get acquainted with its three risky features, without taking into account which many entrepreneurs quickly lose money and close:
Seasonality.
Flowers do not grow with the same stability and do not have a fixed price all year round. In order to correctly compose the assortment in the store and calculate the costs of subsequent purchases, you need to study the varieties of flowers, the periods of their appearance on the markets. So, a universal flower is a rose, which is popular and available for purchase all year round. But one rose will not fill the counter. In the spring, you should focus your assortment on all kinds of tulip varieties, and buy carnations closer to May. In summer, the greatest variety of seasonal flowers is chamomile, gladiolus, alstroemeria, which allows you to expand the range. Also in the summer it is necessary not to miss the peonies, the season of which is extremely small, and the demand is quite large. In autumn, in addition to the chrysanthemums that have appeared, soils, fertilizers, pots should be purchased, as this is the time for transplanting indoor flowers. Winter is the most expensive period for purchases; frost-resistant callas, lilies, orchids are purchased. It's best not to plan to start and open your business over the winter if you're starting from scratch.
Orientation and sufficient knowledge of information is a necessary aspect that will help you to be competitive in the market, especially in a small town.
Holiday addiction.
The "golden" days for florists are generally accepted holidays, such as February 14 (Valentine's Day) and March 8 (International Women's Day). If the business is built illiterately, then the flower shop survives solely due to such celebrations and makes about 10% of its annual turnover on such days. This is especially felt in a small town with a stronger competitor store.
The inalienability of flowers from holiday traditions is a big plus in favor of the flower business. So, a family can save on a new schoolbag for a child, but will not send it to the teacher on the first of September without flowers, and a bride can rent a wedding dress instead of buying, but will never refuse a wedding bouquet.
You should also not forget that the presence of excitement during the holidays has several pitfalls: prices at wholesale depots increase in advance, deliveries of goods may be disrupted, and not the polished work of sellers and couriers distributing your goods can lead to dissatisfaction, negative reviews and subsequent customer churn. Therefore, business owners should be especially on the alert and keep everything under strict control, and novice businessmen should open from scratch not before the holiday itself, but a little in advance in order to establish a work scheme.
Perishable goods.
Flowers are an extremely short-lived product. The average lifespan of a flower at the right temperature is about twenty days. Since the bulk of the goods come from abroad, the cut flower lives most of the rest of its life on the way to the store (especially if the store works with dealers, and not with direct deliveries). There are several technologies for transporting flowers and options for obtaining them from a wholesaler: buying dry flowers and then “soldering” them or flowers in water that are immediately ready for sale, but will live much less.
After getting to the seller, there is no guarantee that the flower will be bought quickly. Today, there are no fixed expiration dates for flowers and the return of damaged goods, as in the food industry. The testimony of working businessmen regarding the amount of damaged goods written off varies: from 10% to 50% of the total amount of goods. The profitability of a flower shop directly depends on this indicator.
There are the following ways to solve this problem:
- reducing the price of flowers that do not have long left, and, in extreme cases, selling at cost. Better to go to zero than to minus. An additional advantage of this way out of the situation will be the availability of goods and, accordingly, attracting new customers. The main thing is to teach your sellers to honestly warn about the fragility of the purchased goods instead of assurances of its freshness, so as not to tarnish the reputation of your store;
- the use of probiotics, preservatives, citric acid and other additives. These funds really help the flower look fresh and last until the sale, but they kill the natural immunity of the flower itself. After the buyer puts the flowers at home in ordinary water, the bacteria from it will quickly defeat the flower, which can also have a bad effect on the reputation of the store.
How to choose the necessary flower business format for a novice businessman
There are several options for the flower business format. It is necessary to determine how much initial capital you have. Flower trade requires certain investments. The format of trade in flowers will also depend on this.
Flower business at home from scratch.
It consists in the independent production and sale of bouquets.
Flower business at home - where to start? First you need to master the art of floristry, having previously completed florist courses (of which there are a lot on the Internet), read a certain amount of literature about flowers and the rules for composing compositions, color combinations, methods of arranging bouquets, practice and fill your hand. After mastering the necessary skills, you can start making bouquets for your relatives, friends, colleagues at work. Having shown taste and imagination, having invested your soul, you give a bouquet. In the case of high-quality performance, it will be remembered not only by the person to whom the gift is intended, but also by the guests, after which the “word of mouth” will do its job. To promote a business at home, it is necessary to use social networks (Vkontakte, Instagram, Facebook). It is necessary to create pages dedicated to your work, fill them with high-quality content, make photo reports and advertise to the required audience. The more people who see your masterpieces, rate them and write comments, the better.
This format has its pros and cons.
The advantage is that you build your own working time, stay at home, compositions and bouquets are made to order. Such a business does not require a large start-up capital, equipment and premises, hiring staff. For flowers, you can select a shelf in your home refrigerator, and store it on the balcony in cold weather. There is no need to pre-purchase an assortment, which, in turn, insures you against their write-off, given that the flowers are perishable goods.
However, there are also disadvantages from this - flowers are bought at retail, which automatically reduces profits and profitability when selling bouquets. Customers can become exceptionally confident Internet users, which makes the profit from the work fickle. Your customer will not be able to look at and feel the purchased goods beforehand, which increases the risk of returning orders. Therefore, this format of the flower business is more of a hobby that brings a minimum income. Although, having shown diligence and diligence, your hobby can bring good profit and become a “training field” before releasing your goods offline, if, having accumulated some experience and got a hand in making bouquets, your desires and ambitions will push you to develop further.
Flower stall / kiosk / pavilion.
The most common flower business format is small retail space with a small assortment of goods. The choice of location plays a major role in the profitability of this form of flower business. It should be crowded and accessible. Location options: transition, stop, metro station, market, that is, places of constant congestion of people. It should be aimed at a buyer with average or below average incomes. The product is purchased mainly from intermediaries and local producers and is mainly a rose, chrysanthemum and seasonal flowers. The cost of the flower and packaging should be low, which affects the profitability.
This format also has its pros and cons.
Plus, it doesn't require a lot of investment. So, there is a purchase of a small amount of goods, minimal equipment. Rent for a modest space is also usually not high. On holidays, there is a sharp increase in demand for goods, which helps to get a plus and recoup investments.
But, the rest of the time, the profitability of such a stall is 25-30%. The owner is his own watchman, and the seller, and the accountant. You can hire a distributor. Hiring a professional florist, given the limited range of flowers available, doesn't make sense. A very small share of the profit comes from the packaging of flowers.
The competition is very big. If you set out to start a flower business from scratch in a small town, you should win over competitors with quality, the right choice of a place for trade, and the maximum expansion of the range of services. The main thing to strive for is the opening of a network of such pavilions. This will help to make your services recognizable, expand the range and start purchasing goods in large quantities from direct suppliers, which will affect the freshness and price of flowers.
Flower shop.
The main difference between a flower shop and the above forms of business is the presence of a large area. Accordingly, the answer to the question “how to start a flower business” in this case will involve large investments.
The first thing to do is to draw up a business plan and choose a lively passage place, purchase refrigeration equipment where vases of cut flowers will be stored, tables on which bouquets will be collected and packed, racks for related products, computer equipment and more.
The shop implies the presence of a florist. Will he perform the function of a seller at the same time, or will they be two different people - it's up to you. Recruitment should be taken very seriously. The reputation of the store will depend on the quality of services performed by employees, which means sales and the development of regular customers.
The profitability of a flower shop is increased by selling additional products. It can already be not only cut flowers in a bouquet, but also compositions, boxes and flower baskets created by a florist, flowers in pots, seedlings, empty pots, all kinds of fertilizers, soil, seeds, decorative flower stands and much more. Also, the presence of a large area allows you to introduce related services: gift wrapping, sale of all kinds of souvenirs, postcards, production of helium balloons. This will significantly increase sales.
The disadvantages of such a shop include the fact that it requires high costs and investments and, accordingly, pays off more slowly. But due to the large number of related products and a wider assortment, the store gives a fairly stable profit.
Flower boutique.
Opening a flower business in the boutique format requires significant investments and costs. But the return is much higher, due to the work of professionals and the solvency of customers. After all, such bouquets belong to the "Premium" class and are created for wealthy people.
You should find a room on the main street or in a large shopping center. It must be formatted accordingly. It is better if it is a design project. Mandatory attributes are a beautiful name and a tastefully designed showcase, expensive custom-made furniture, industrial and high-quality refrigeration equipment.
It is not enough that the seller in the flower shop was smiling and inviting. We need a multi-skilled professional florist who is not only well versed in flowers and knows how they combine in color, but also delves into traditions and subtleties. Namely, which plants are not customary to put in one bouquet, which etiquette bouquets are suitable for a child, a young girl or woman, a man, friend or boss, which bouquet is appropriate to give depending on a specific event, and so on. When choosing this format, the assortment should include exotic, rare flowers, the write-off losses of which naturally turn out to be much higher.
Goods bought in a boutique must have the label of this place on them, because the buyer acquires not only a flower, but also the prestige that goes with it.
If the main question for you is how to start a flower business from scratch, then this option for a flower business may not be suitable due to large investments.
Corporate orders in the flower business.
No matter what format of flower business you choose, corporate orders can bring big profits, which include small bouquets of compliments to employees, huge baskets of flowers for an event, decorating a room for an event.
A flower boutique and shop has a much higher chance of finding a large corporate client than a pavilion, or a person who has opened a flower business at home. But it's worth the effort to find it.
It can be a small cafe where, by agreement on mutually beneficial terms, your small bouquets will stand on the tables or a large wedding agency that regularly attracts you to decorate tables, rooms and wedding arches with flower arrangements.
Working with a corporate client can bring profit at a time, which you can’t get even in a month by selling bouquets at retail.
Flower equipment
As you and I can see, different forms of flower business determine the list of equipment. Consider the most common items in which there is a need:
Cooling equipment.
No one wants to receive a rose as a gift, even the most beautiful one, on a long stem, but with dried petals and withered leaves. Therefore, when opening your flower business, you need to take care of the equipment that will be designed to keep the flower fresh for as long as possible. In a home business, you can use a home refrigerator.
In other cases, the room can be equipped with an air conditioner that maintains a certain temperature. The power of the air conditioning system depends on the size of the room. These systems can work both for cooling the air and for heating it. But air conditioning keeps the temperature at 16 degrees, and cut flowers are best stored at temperatures below 6 degrees.
The best way out, although the most expensive, are refrigerators, which allow you to create the optimal temperature for storing the flower. They come in various capacities, single-chamber or two-chamber (more capacious). The main criterion for choosing is the ability to create and maintain the optimal temperature for storing a flower.
- Shelving and showcases for flowers. They can be of any shape. Stepped, pyramidal or in the form of a slide. The main thing is capacity and stability. But, since the flowers are constantly watered and sprayed, the shelving material must be strong and moisture resistant.
- Tables. These are jobs for the salesperson and florist. The table is necessary for packing bouquets and creating flower arrangements. It must be made of quality material, be smooth and stable. The optimal parameters for a table are 120 by 80, height - 75 cm. It is desirable that the table is in the field of view of buyers. Watching the work of a florist, the process of creating bouquets, visitors evaluate the professional skills of workers, and for potential buyers, the creation of a beautiful bouquet serves as an advertisement.
- Equipment that can be added.
The store can also be equipped with a thermal curtain. Usually it is located at the entrance to the store. It is used so that the weather outside does not affect the climate in the store.
For southern light-loving plants, it will be useful to purchase fitolamps. They will warm the flowers at any time of the year.
In addition to all of the above, when opening a flower business, you need shovels, secateurs, sprinklers, watering cans, plastic flower vases and much more. Also, when opening a store, do not forget about decor elements, wrapping paper, bags, baskets, ribbons, and more.
All materials and equipment must be of high quality. After all, the conditions for storing flowers and their comfortable maintenance will ensure an increase in the duration of storage. And this will entail an increase in profits and profitability, a decrease in the payback period of the business.
Discount cards.
It is worth taking care of the production of discount cards for customers in advance. This will ensure that customers contact you again and develop a database of buyers' phone numbers. In the future, it will be possible to notify them with SMS messages about the availability of promotions, the arrival of fresh goods, new products, as well as congratulate them on holidays and, under other pretexts, remind them of themselves.
When opening a flower pavilion, shop or boutique, you need to choose the right trading equipment. The dimensions of all installations depend on the area of the room. The commercial equipment market is very diverse. Furniture can be purchased both ready-made in specialized companies, and under the order. Whether to use industrial refrigerators or ordinary refrigerated counters, as in supermarkets for food storage, depends on your financial capabilities.
How to organize a flower business in terms of hiring staff in a store
The organization of the personnel structure directly depends on the chosen form of the flower business, as well as on your mood to directly participate in the work or exclusively control the work of hired personnel.
Consider the basic units of frames:
Florist.
This is the designer and creator of your bouquets. He must be in love with his work, have a delicate taste, understand color (the science of color combinations), master the methods and generally accepted rules for composing bouquets, be interested in new products and fashion trends in the world of flowers. Today, the position of "florist" is an officially registered specialty. There are a huge number of floristry courses, including those that take place online. You should not thoughtlessly hire a florist who has many certificates of their passage. You should double-check on the Internet the conditions for obtaining them and the reputation of the institutions that issued them. Since the florist is a creative profession, it requires talent and intuition, and not exclusively acquired knowledge. During the interview, it is worth checking the employee’s abilities in practice, place an order for him, give a few requirements, like a real buyer, and evaluate the actual performance of the work, the taste of the applicant.
In his spare time from compiling compositions, the florist must also take care of the goods, take care of the freshness and long life of the plants.
Salesman.
There are people of creativity and people of sales. Not always a florist is a good seller. Depending on the size of your business, it may be appropriate to hire a separate unit - a salesperson who will communicate with visitors, count buyers, and answer phone calls. He must be able to attract the attention of the client, persuade him to buy the product. To increase the incentive to bring profit to your store, it is recommended to hire a seller on the terms of a small rate and a percentage of the proceeds received.
In most cases, the seller plays the role of an accountant and administrator. If the business has pages on the Internet, it is the seller who uploads the assortment of goods to the network, responds to comments and accepts Internet orders.
Courier.
Today, there are almost no flower shops that do not have a delivery service. This is an integral part of the flower business. Depending on the scale of the created business, either a separate unit is hired - a courier with his car, who delivers bouquets, or an agreement is made with a driver. For example, with a taxi driver who is ready to deliver flowers according to the meter, or if this is a market, and there are several pavilions with flowers in a row, by agreement you can hire a common driver for everyone.
Accountant.
Flower accounting is subject to the general rules for trade enterprises, the sale of flowers in a store is regarded as retail. It can be carried out by both the owner or the seller (by prior arrangement), as well as a hired accountant. Usually, accountants are managed by several companies, so that their work is paid according to the contract and does not require a high monthly salary.
Security guard.
Do not forget about the costs associated with taking the store under protection. If the store is open 24/7, the night seller performs the function of a security guard.
You will learn about all the advantages and disadvantages of the flower business. Is it profitable to sell flowers, how to choose a room for a store and arrange it correctly, what expenses should be prepared for?
Hello, dear readers of "Startapoff"!
The business of selling flowers not only brings a stable income, but also gives aesthetic pleasure. Flower bouquets will always be in demand - as long as people celebrate, love and give each other gifts.
Flower business - a goldmine or a waste of time
Among my acquaintances there are two families engaged in greenhouse cultivation of flowers and their sale. They started growing flowers more than 10 years ago. Sell roses, carnations, gladioli, tulips, lilies, oaks. They buy part of the products in their stores for resale.
Analyzing their experience, I concluded that the sale of flowers is a difficult, time-consuming, but very profitable business with a properly established sales system and a proven growing technology.
Confirms my assumptions about the profitability of this type of entrepreneurship price growth forecast for flower products from RBC:
Advantages of the flower business
For the opening of a flower shop with an area of 20 sq. meters on average takes 330,000 rubles. On average, these expenses pay off in 5-6 months of the store operation. The projected net profit at the end of the year will be 660-680 thousand rubles.
Consider the main advantages of this type of activity.
Small start-up capital
The amount of start-up capital required to open a business depends on the scale you are aiming for. Start with a small stall to get a feel for the market.
Ease of starting a business
The procedure for starting a business in this area is simple. Find a suitable place for trading, arrange Required documents, buy the first batch of goods, advertise yourself and start working.
It will take several months for you to "promotion". Make a beautiful window display, advertising inscriptions, offer affordable prices to attract customers and gradually increase your turnover.
If necessary, the business is easy to close, or rather, realize. Just offer it to those who are looking for a ready-made flower business.
Big trade margin
Experts say that the average margin on flower products reaches 150%. On holidays (before March 8, September 1, school last bell), when the demand for bouquets is especially high, it exceeds these figures.
The expert opinion is confirmed by the level of prices for bouquets in different Russian cities, relevant for 2017:
Possible difficulties
Every novice businessman faces problems and difficulties along the way.
In the "flower business" they are as follows:
- Plants are demanding on storage conditions, so you will have to make sure that the room has optimal humidity and a comfortable temperature.
- Perishable goods. There is a high risk of receiving a low-quality batch, which will quickly deteriorate.
- Cyclic demand. The maximum demand for bouquets is in March, May and September.
To avoid difficulties, analyze the market (customer demand, competitor assortment), plan purchases in advance, look for reliable suppliers, expand the product range to stabilize sales throughout the year.
How much do Russians spend on flowers a year?
Another forecast for 2018-2019 based on statistics from the past 8 years from RBC:
How to sell flowers - possible ways to sell goods
Established marketing is the key to the success of any business.
Let's analyze the pros and cons of 4 ways to implement colors.
flower pavilion
Such pavilions are located in crowded places: near metro stations, in pedestrian underpasses, near markets.
A plus- high traffic of buyers, guaranteeing a good turnover.
Minus this method - a lot of competition, little trading area. In addition to you, other entrepreneurs work in the pavilion. To compete with them, select an assortment, come up with an original packaging for bouquets.
A pavilion is a great idea if you grow plants yourself and have the opportunity to offer fresh cut samples to customers every day. The freshness and quality of your products will not be ignored by customers.
flower boutique
It differs from the pavilion by a large trading area and a more diverse assortment. Here you can exhibit not only freshly cut flowers, but also ready-made bouquets, interesting planters, plants in pots, arrange a florist's workplace, and also offer small souvenirs or gift wrapping services to customers.
pros- it's promising stable business which brings good income.
Minuses way - high cash costs to open. Renting a boutique is more expensive than renting a pavilion. It has a longer payback period.
Online store
This method is suitable for a big city, in which the service of delivering flowers to an office, home, restaurant is especially valuable and convenient.
pros way - the presence of a real outlet is not necessary, you can work on the principle of dropshipping.
Minuses- you need experience in real sales, experience in sales via the Internet, an established delivery system.
An online store is a great way to promote a real florist boutique. It is also suitable for professional flower growers involved in the greenhouse cultivation of roses, carnations, gerberas and other varieties.
The main thing is to establish online marketing. Use Instagram, accounts in other social networks, personal acquaintances, as well as ads on online trading platforms.
Markets of the city
According to the consulting company Eventus Consulting, flower stalls and pavilions account for 66-70% of sales.
pros- high turnover, fast payback. The cost of renting a trading place and purchasing equipment and products will pay off within 3-4 months.
Minuses- small retail space, limiting the range. Selling flowers in the market is almost the same as selling flowers on the street.
The method is convenient for greenhouse owners, as well as for those who do not have a large start-up capital to open a store.
Step by step opening a flower business - where to start?
Decided on the format of the flower business from scratch: pavilion, stall, boutique or online store?
It's time to think through each stage of opening your own business and bring it to life.
Step 1. Business registration
If you are going to make money by selling bouquets at the airport, in the park, at a restaurant or in the park by hand, you will not need to register a company. To open a boutique, rent a trading place in the market or in a pavilion near the metro, you cannot do without official registration. To sell flowers, select an individual entrepreneur with a simplified taxation system.
According to OKVED, several codes correspond to this type of activity:
- 47.76.1 — retail sale of plants, flowers and seeds.
- 47.78.3 - trade in handicrafts, souvenirs.
- 74.10 - activities in the field of design.
- 64.12 — courier activity.
- 82.92 — packaging of goods.
If you plan to expand the activities of the enterprise, indicate the entire list of codes when registering.
Documents required for work:
- trade permit;
- program of sanitary-industrial control;
- contracts for disinfestation, deratization, disinfection;
- contract for the maintenance of the air conditioning and ventilation system;
- contract for the disposal and removal of solid household waste;
- store internal documentation;
- permission of the sanitary and epidemiological service;
- quality certificates for each type of product.
Step 2. Choosing a premise for the store
The success of trading depends on the location in which the store is located. Consider crowded, passable places: in shopping centers, in pavilions near the metro, at public transport stops, in the central area of the city, in the office center, on the basement floor of a residential building (on the first line by the road).
The best option to promote your business is a small detached building, but renting such a room is more expensive than renting a "point" in a shopping center or pavilion.
An economical option for the first time is a tonar or a trailer on wheels.
Step 3. Selecting suppliers
Even if you find the perfect supplier with the perfect product, don't limit yourself to their services. It is advisable to have three proven suppliers so that in case of force majeure you will not be left without goods.
When choosing suppliers, be guided by prices, quality and assortment that they offer, consider different commercial offers.
Step 4. Purchase of equipment
The minimum set of equipment: tables, showcases, shelves, racks, refrigerators. You will also need inventory: scissors, secateurs, adhesive tape, packaging materials, materials for floral design. Don't forget about cash machine. For individual entrepreneurs, it is optional, but its presence increases the confidence of buyers.
Climatic conditions are extremely important for flower production: optimal humidity, temperature and ventilation. Without a good split system, several humidifiers and heating, it is impossible to create optimal conditions.
Step 5: Decorate the Point of Sale
Your product gives aesthetic pleasure, so the showcase and shelves with it should be appropriately designed. Never leave wilting flowers in sight. They spoil the window and the impression of the store.
Pick up the interior in bright colors. Order aluminum painted racks for arranging goods. Install fluorescent lamps so that the colors of the packaging and products are not distorted.
Display bouquets of different varieties of plants in the window. Your salon should be not only bright, but also stylish.
Advice of professional florists: Preparing and decorating a bouquet takes a few minutes. So that customers do not toil while waiting for an order and do not leave the store while you are collecting a bouquet, print out several crossword puzzles, tasks or logic games on a printer.
Lay them out on a counter or table. Set up a couple of chairs. Waiting for the order will go unnoticed by the client, and your creativity will be appreciated.
Step 6. Advertising placement
Make a catchy sign with the name. Make the most of your storefront. In addition to the displayed flower arrangements, place information about prices or promotions on it. A stopper plate works well, on which every day you will write with chalk an advertising text with the cost of roses, carnations, asters, chrysanthemums or other varieties, or announcements about discounts and promotions.
Use all the possibilities of advertising on the Internet. Place an ad on online trading platforms, use YouTube for video reviews of your product, recommendations for floristry. This will increase your credibility as a specialist in your industry. Don't forget about the possibilities of word of mouth. Such advertising is often more effective than other methods.
Step 7. Purchase of goods and start of sales
For a pavilion, a stall, a tonar, the optimal assortment is freshly cut chrysanthemums, roses, carnations, gerberas, tulips.
It makes sense to expand the range of potted products if the area of \u200b\u200bthe room is more than 30 square meters. In small shops, indoor potted plants, according to experts, are sold poorly, only occupying a usable area.
If the area is more than 30 squares, not only live plants in ceramic or plastic pots are appropriate here, but also soil and fertilizers for growing, as well as a wide range of cut flowers, including rare and exotic ones. Expand your range with seedlings of famous rose varieties from the nursery.
Complete the showcase with souvenirs: soft toys, balloons, postcards.
Main items of expenditure
Starting your own business involves start-up costs: payment of rent for premises, purchase of goods, wages personnel, purchase of the necessary equipment.
How much will it cost and how can you save?
Rental and renovation of premises
The rental price depends on the area of the kiosk or store, as well as the location where it is located. The closer the point is to passing, visited places, the more money you have to spend. Optimal area: 30-45 squares.
A flower boutique needs an appropriate interior. Be prepared to invest in painting the walls, purchasing beautiful lamps, shop window lighting, wall decor.
Purchase of equipment
Equipment costs also depend on the size of the store and the format of the business. For example, a subway pavilion does not need a cash register, but a large salon does. On average, the purchase of commercial and climatic equipment will take you up to 160 thousand rubles.
Salary to employees
For work, 1-2 florists and 2 sellers are needed.
If you have chosen this line of activity, you probably like to make compositions with your own hands, you know a lot about the combination of colors, the selection of packaging. Work as a salesperson or florist on your own. This is a good savings at the start, plus a way to feel all the nuances and subtleties of the market.
Buying flowers
On the initial purchase, on average, it will take you up to 50,000 rubles. Do not buy large lots from the start. Take a little of each plant variety and arrange with suppliers to deliver a fresh batch if you sell out quickly.
Details of the costs of opening a store are displayed in the table:
| Name | Quantity, | Price of 1 piece, rub. | Total cost, rub. |
| Furniture, equipment, tools | |||
| Split system for air conditioning | 1 | 16 000, 00 | 16 000, 00 |
| Refrigerated showcase for shop | 1 | 50 000, 00 | 50 000, 00 |
| Desktop for floristry | 1 | 7 000, 00 | 7 000, 00 |
| Chair | 1 | 1 500, 00 | 1 500, 00 |
| Security and fire system | 1 | 35 000, 00 | 35 000, 00 |
| Notebook (computer) | 1 | 25 000, 00 | 25 000, 00 |
| plastic vases | 40 | 100, 00 | 4 000, 00 |
| Tools and tools for decorating bouquets | 1 | 15 000, 00 | 15 000, 00 |
| Legal registration of the enterprise | |||
| IP registration fee | 1 | 800, 00 | 800, 00 |
| Making a seal, opening a bank account, etc. | 1 | 3 000, 00 | 3 000, 00 |
| Marketing and Advertising | |||
| Signboard | 1 | 25 000, 00 | 25 000, 00 |
| Naming | 1 | 6 000, 00 | 6 000, 00 |
| Promotion of the site, groups in social networks | 1 | 30 000, 00 | 30 000, 00 |
| working capital | |||
| Flowers, plants | 1 | 80 000, 00 | 80 000, 00 |
| Fixed costs: rent, salary, electricity, water, etc. | 1 | 90 000, 00 | 90 000, 00 |
| Total: | 388 300, 00 | ||
How profitable is it to run such a business - reviews of flower businessmen
Flower business owners agree that it is a labor-intensive but profitable business. The main secret of profitability is careful planning of each action. To get promoted and achieve success, you need not only to analyze every step, but also to be creative, try to surprise, interest the client.
Profitable stalls and pavilions do not focus on one type of product. Expanding the range, offering various services, for example, flower delivery, selling plants from the greenhouse, gift sets increase the customer audience.
According to the owners of this business, it is better not to start organizing it from scratch, but to buy a ready-made enterprise with an established client base, already prepared premises. Further improvement of the outlet, novelties in the assortment, and an increase in the level of service are the key to stable profits.
An example of a relevant business idea in this industry: vending sales automation or installation of vending machines with bouquets.
For more information about floromats, see the video:
Conclusion
Is it profitable to sell flower products? The experience of my friends shows that yes.
The flower business is quite a profitable area - according to statistics, only one store out of ten closes. Therefore, if you decide to do it, then you made the right choice. In addition to all the so-called aesthetic beauty, it is also very profitable. In this article, this niche will be described in detail.
Like any field, the flower business has its own nuances. Starting from the problem of finding suppliers, ending with storage and sale. Since this is a fairly competitive niche, you should stand out from the rest. Also, success depends on many factors, consider everything in the business plan. Starting from climatic conditions, ending with population density and infrastructure development.
The advantages of such a business:
- high profitability;
- several ways of development;
- possibility of gradual scaling;
- the ability to expand the range without investment;
- many peak periods for sales;
- the opportunity to embody aesthetic creativity.
Disadvantages of this business:
- high cost of logistics to remote regions;
- the problem of finding normal suppliers;
- the safety of the goods;
- dependence on the dollar exchange rate;
- dependence on weather conditions.
Where to begin
How to open a flower business? First of all, you need to analyze the market for demand. You can do this simply by walking around the city and counting the existing stores. Further, it is necessary to calculate the available capital and the cost of rent, in this case, it is very expensive.
Where to get flowers
If the population of the city is about a hundred thousand people, then most likely you have large sellers. They can do wholesale business. If you still could not find a supplier, you need to look in the nearest large city. If this option does not work, you need to look for contacts on the Internet. Also, it is quite profitable to work directly with suppliers from Ecuador and Holland.
Business organization options
When you are a novice businessman, it is advisable to choose directions and development options. In the paragraphs below, we will cover the main ones. Also, it is desirable to determine the scope of your competence in matters of this niche. It can be the ability to decorate flowers, determine freshness, or beautifully combine a bouquet. Based on the available capital, determine which flowers you will sell, which related products, and so on.
Sale of home flowers
If you have enough free time and free territory, this is an option on how to start a flower business from scratch. But keep in mind that there are quite a few species of such plants. It is quite difficult to build even a small business in such conditions. But if you live in a rural area and have your own plot, this opens up more opportunities. Growing flowers on the site, creating greenhouse conditions for them, is quite realistic.
Several types of flowers that you can grow at home:
- chrysanthemums;
- pelargoniums;
- tulips;
- azaleas;
- annual asters.
Photo gallery "Types of flowers"
Salon opening
It is fair to assume that a flower shop is an order of magnitude higher than a regular store. The difference lies in the range of services provided to customers. In the first case, it is only selling flowers and making bouquets. But in the second, it is an opportunity to order the decoration of surfaces with flowers, the creation of designer baskets and so on. More often, salons even visually look more luxurious than stores.
Average cost of launching a salon:
- rent of premises (100,000 rubles);
- showcases and coasters (70,000 rubles);
- florist (30,000 rubles);
- consumables (20,000 rubles);
- the first batch (150,000 rubles).
Total: 320,000 rubles.
Online store and delivery
In the case of this group of goods, you can start a business without investment. You can do this using the online store. The latter can serve as a channel for additional sales, as well as a starting position at the beginning of a business. Delivery from an online store quite strongly stimulates sales and positive reviews. The main thing, in this case, is the punctuality of the courier and the availability of a vehicle.
Video "Flower business"
From the video you will learn how to organize the work of a flower salon.
The flower business attracts, first of all, with small investments and good profitability. However, due to the fragility of flowers, the seasonality of sales and many other factors, you should take a responsible approach to organizing a business.
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The main nuances of the flower business
To create a business on flowers, you need to consider the following features:
- Perishable goods. Flowers tend to lose their original appearance, and this happens quite quickly. In this regard, not only the proper care of the flora of your store will be required, but also careful planning of the purchase of goods.
- Product rates. The prime cost of flowers is quite low, but the margin on them is from 100 to 150 percent. Only a limited list of goods, such as medicines or weapons, has such significant indicators. To maximize the return on business, the owner must take this fact into account.
- Flexibility. A flower business does not require a significant start-up capital, and just as importantly, it does not require much effort to close the business.
- Seasonality. Revenue will change depending on the time of year. Superprofits will be on holidays, a time when gifts in the form of flower bouquets will become the main manifestations of attention. The most unprofitable season for business will be summer, when people will have the opportunity to grow flowers in summer cottages or simply pick them in parks.
Flower Business Forms
The next step after deciding to engage in the sale of flowers will be the choice of the form of this activity. There are several flower business formats, each with its own advantages and disadvantages.
Flower business happens:
- flower tents;
- small flower shops;
- flower online stores;
- flower boutiques.
flower tents
The main disadvantage of this format is a large dependence on the location. It is important to understand that it will not be possible to avoid competition here, and two different tents with flowers standing next to each other is a normal phenomenon. The ideal option would be to open a future stall next to a large flow of people. As an example, consider a crowded square, where you can make good money selling flowers to young people in a hurry on a date.
Due to the small dimensions of the room, it is simply impossible to provide due attention to the care of flowers. The owner will be required to place products as closely as possible on a few shelves and at the same time not harm the quality of the goods.
Little flower shops
We are talking about full-fledged flower shops with an area of 30 m2. Such a business will require not only significant investments, but also a deeper analysis of competitors. Locating outlets near such establishments is fraught with significant losses in earnings. A significant role in the amount of profit will also be played by a rich assortment, which can be increased by the area of \u200b\u200bthe premises. In addition, staffing needs to be expanded. If one seller could work in the pavilion, then the store should have several employees, and with the desired education of a florist.
Flower online stores
Many businessmen already have popular online projects for the sale of flowers today, and based on their feedback, a number of advantages of this format can be noted. The most significant plus will be the convenience for the buyer when making a transaction. As a rule, people do not have much free time, in this regard, buying from a mobile device or home computer looks extremely attractive.
The most important step in organizing an online store is the development of a website. The creation of such a portal should be done exclusively by a professional, because the lion's share of success will depend on the appearance and convenience of the service. The importance of this stage cannot be neglected, so it is best to contact a reliable web studio.
Also an important role is played by the room for storing flowers and the organization of delivery. The room where the goods will be waiting for their customers should be dry and cool. Ideally, the temperature in the room should be around 18 degrees Celsius. Delivery should be handled by responsible people, delays and delays are unacceptable.
flower boutiques
The most expensive at the start, but at the same time the most format of the flower business is a salon. The area of such a room should be at least 60 m2.
The prospects for a flower boutique are practically unlimited. With due attention to all the details and nuances, a business can bring enormous profits to its owner.
The possibilities of such an institution are significantly expanded mainly due to the presence of highly qualified personnel. Professional florists are able to create real masterpieces from expensive plant varieties. For such a product, in the end, the client will need to pay a round sum, so a flower salon is a business exclusively for big cities.
One of the significant distinguishing features of this form is the ability to work with corporate clients. Contracts and agreements concluded with various organizations will immediately take the most significant positions in the income of your business.
Photo gallery
flower pavilion Flower shop An example of a flower online store flower salon
Step-by-step instructions for opening a flower business
After a thorough analysis of all the advantages and disadvantages of opening a flower business from scratch, you need to go directly to the actions themselves. To understand where to start, first of all, you need to draw up a clear plan, which will include all the steps necessary for implementation.
The sequence of actions is as follows:
- Registration of documents.
- Supplier search.
- Finding a shop space.
- Purchase of equipment.
- Personnel selection.
- Assortment compilation.
- Advertising.
Paperwork
The procedure for registering a business is simple and does not take much time. But in addition to registering an IP at a point of sale, there must be a list of documents, most of which should be available to customers.
These documents include:
- trade license;
- the conclusion of the sanitary and epidemiological station on compliance with the standards;
- book of complaints and suggestions;
- packing list.
Supplier search
To minimize risks, experienced entrepreneurs work with several suppliers at once. When choosing them, you need to be guided by reliability and the pricing policy that is relevant to you. For example, a product from Colombia has a low price, but the speed of sale should be as fast as possible due to the low quality of the product. Such products are suitable exclusively for pavilions and stalls.
Flowers from wholesalers from Russia are distinguished by a more expensive price, while the shelf life is much longer.
The main suppliers on the market are:
- Holland;
- Ecuador;
- Russia.
It is necessary to focus on the goods from these countries.
Competent purchase of goods plays an equally important role.
There are several types of such procedures:
- Basic purchase. Those positions and their number that are sold in any case. Through the main purchase, the range is replenished with a pre-order, this will save you time and effort in the future. In addition, there are discounts on basic purchases.
- Additional purchase. Requiring a certain experience in business process. Flowers of a certain variety or type are purchased, which are supposed to be sold. There are no constant values in this case and cannot be, because demand is constantly changing.
- Holiday shopping. Demand on such days becomes peak, respectively, purchases are carried out in much larger quantities. The main holidays for flower business owners will be February 14 and March 8. In the first case, the purchase is made three weeks before the date, in the second - a month.
Shop space search
When searching for and choosing premises, businessmen are guided, as a rule, by the degree of population of the place in which this premises is located.
The outlet may be located:
- in the tone;
- in the pavilion
- in a separate room;
- on the first floor of a residential building;
- in the mall.
If there is a need to save on rent, then you can choose a shopping center.
When concluding a lease agreement, there are also some nuances. In particular, it is important to clarify whether utilities are included in the amount of monthly payments.
This video tells about the right choice of premises for a flower shop. The material is taken from the UFL flower delivery channel.
Purchase of equipment
Of the mandatory purchases, it is worth highlighting the cash register. Its cost varies from 9 to 15 thousand rubles. It will be desirable to purchase a refrigerator, especially for medium and large stores. For small rooms, you can limit yourself to installing an air conditioner.
This also includes the purchase of packaging for bouquets. Transparent cellophane is the most popular type of packaging, it is mandatory to purchase.
In addition, you should pay attention to other means of registration:
- grid;
- tape;
- felt;
- matting.
When choosing tools, you can limit yourself to a sector and scissors.
Recruitment
Of particular importance in the selection of personnel is the creative potential of the employee. Flower shop employees must have out-of-the-box thinking, originality and creativity are the main qualities. For salons that deal with designer products from flowers, a highly qualified employee with the education of a florist is needed.
In addition to customer service staff, large establishments will need an accountant and administrator. An online store cannot do without responsible couriers and drivers.
Also, for any type of enterprise, the friendliness of the staff plays an important role. In the situation with the flower business, this role is greatly enhanced. The buyer comes to the store, as a rule, in a good mood, the task of the employee is to maintain and increase this mood.
Assortment compilation
The rate of payback of the project and its success directly depend on the size of the assortment. But there is no universal selection of products for all forms of flower business. Due to its characteristics, each format requires a certain range of goods.
For pavilion
Small tents, stalls and pavilions are limited to the selection of live cut plants. Due to the ensured large turnover in crowded places, such products do not have time to lose quality. At the same time, when buying similar goods, it is more profitable for small enterprises to work through intermediaries.
Among the most popular types of cut fresh flowers, the following can be distinguished:
- carnation;
- chrysanthemum;
- rose flower;
- gerbera;
- tulip.
For shop
Shops and flower boutiques significantly expand their range.
It may include:
- cut flowers, including exotics;
- designer bouquets;
- decorative indoor plants;
- flower care products;
- soils;
- pots and vases.
Some establishments diversify their assortment with:
- holiday cards;
- souvenirs;
- toys.
Advertising
A marketing campaign in the case of a flower business does not have to be large-scale. Entrepreneurs limit themselves to signs and leaflets. Flower boutiques can afford to advertise on television. Internet projects place information about themselves on various third-party portals and various banners.
Flower business profitability
According to experts, the profitability of the flower business is relatively high. The exact percentage depends on the size of the business and other factors such as location and staffing. The flora trade market shows good growth rates, which means that it is possible to enter it in the coming years.
