Do you want to open a flower shop in your locality? If yes, you have landed at the right place. Here in this article, we have listed down the important steps to follow to start a florist shop covering costs, licenses, equipment needed, and many more.
A flower shop owner makes money by purchasing flowers wholesale and selling them to customers from their retail shop. Other than flower bouquets, one can sell a wide variety of floral arrangements depending on the local demand.
The floral industry is expected to have huge growth in the coming years. Experts suggest that by the year 2027, the floral market worldwide will reach anywhere around $41.1 billion. Some of the major flower-exporting countries are the Netherlands, Kenya, Ethiopia, Ecuador, and Colombia.
It is without saying, we can easily conclude flower shop business is a profitable business at present and expected to grow in the coming years. If you are one, who wants to enter the floral industry by starting a flower shop with little money, there are some basic steps to be followed.
Here are the 16 Steps to Start a Flower Shop
1. Understand the Market
The first step before opening any business is to learn about the demand and buying trends of the local customers. Do market research and gather information on the competition, pricing, and market size of the flower industry.
It’s estimated the floral industry in the US alone is worth $5 billion. It is observed in the last few tears that customers are more and more showing interest in purchasing flowers online.
It is generally seen that the majority of individuals buy flowers for special events. Also, some people gift flowers to others for no specific reason. It is seen, customers with disposable income are more prone to buy flowers than those with less. As a result, more affluent consumers can usually afford to buy higher-priced flowers and arrangements from flower shops.
2. Learn the Trade
If you already have the necessary expertise and experience in the flower trade, it will certainly give you an added advantage. For beginners who do not have zero knowledge about how the flower business works, it is advised to learn them before jumping to start this business.
The best way to learn is to work as an intern in an existing flower shop. It will teach you about different kinds of flowers, how to design them and the regular activities to be carried out to run a flower shop.
3. Decide on the Type of Flower Shop
Before actually starting a floral shop business, it is most important to select the type of flower shop you plan to start. There are various types of flower shops that are popular and successfully catering to customers in the present day. Some of the business formats that one can choose to open a floral shop are the following:
- Traditional Retail Flower Shop
- Specialized Floral Bouquet Shop
- Floral Shop Aimed for Events, Weddings, etc.
- Bulk Flower Reselling Shop
- Create an Online Floral Shop
Read: How to Start a Home-Based Floral Business
4. Create a Business Plan
It is without saying that as an entrepreneur, you must have a well-thought-out strategy. It will not only assist you in mapping out the details of your company and uncovering some unknowns. The following are a few key points to consider:
- What are the initial and continuing expenses?
- Your target market?
- What is the maximum amount you can charge customers?
- How do you plan to sell flowers to your customers?
If you are planning to open a home-based flower shop, a one-page business plan will be enough. However, for a large-scale flower shop business, your business plan document will need a much more detailed plan document. More so if you are looking for funds from investors. In that case, you are advised to take help from professional plan writers or take help from online business plan generators.
5. Name Your Business & Create a Logo
Like any other business, a catchy name not only fetches extra customers but also enhances brand growth. This holds true for the flower shop business too. There are several factors one must consider before selecting the right flower shop name. It is advised to name the flower shop depending on the type of flower business you are planning to start. You can check our guide to name a business to learn more.
In addition, create an attractive logo for your flower shop business. There is plenty of free and paid logo-making software that can help you in creating the business logo. You can also visit freelance marketplaces like Fivver and get the work done by logo design experts.
6. Registering the Business Name
After the name of the flower shop is finalized, it is time to register the business name and if possible get it trademark verified. Also, register a similar domain name for creating the business website. If you find the desired domain name is not available, it is advised to find another business name whose domain name is available.
7. Select a Location
It is without saying, location plays a vital role in the success of a flower shop business. You must select a location that has the potential of providing a good number of local customers. As per your budget, find the best location for the retail storefront for your flower shop.
One can also start a flower shop from their home if it is located that has the potential to attract local customers. A garage or a space on the basement floor having access to daylight can be an ideal space to start a home-based flower shop.
8. Calculate the Cost of Starting a Flower Shop
There are both fixed and recurring costs of starting and running a flower shop business. If you buy the retail space, it will come under the initial fixed cost expense. Other than that, there will be fixed costs in decorating the interior, initial sourcing cost of flowers, installing POS software, cooling chamber, and other miscellaneous costs.
The recurring costs include rent space cost( if you have taken the space on lease), procuring cost of flowers, electricity costs, etc. It is advised to at least have 6 months of recurring expenses while opening a flower shop.
The cost of starting a flower shop will be in the range of $10000 to $ 50,000 depending on the retail space cost, and the types of floral items you plan to sell.
9. Register Your Flower Shop Business
Next is to register your business to make your company legally compliant. Every country and state offers a variety of business formations as per the scale of operation. Select the one that fits your business best.
For example, in the United States, the popular ways of registering a small business are proprietorship, partnership, and LLC. Forming an LLC offers some extra benefits at some extra cost.
10. Apply for Tax Registration
Tax registration is among the most important steps in starting a flower shop business. It s advised to talk to an attorney and apply for taxes as suggested as one has to register for different taxes at the state as well as the federal level. Furthermore, you will also need to apply for the Employer Identification Number or EIN.
11. Get the Required Licenses
Another important aspect of starting a legally compliant flower shop company is gathering information about appropriate licenses and permits required to run business activities. Talk to the local competent authority or a lawyer and procure the required licenses.
12. Open a Business Bank Account
After the company legalization process is complete, it is time to open a business bank account. Talk to a local bank and open a bank account so as to carry out financial transactions on a daily basis.
13. Calculate the Profit Margin
Estimating the actual profit margin is a difficult task for florists. The cost of flowers varies per season. Generally, the cost of off-season flowers will be more. So profit margins will differ from on-season and off-season blooms. Furthermore, take into account the perishable factor of storing flowers. Flowers stored for a longer period of time might get spoilt leading to financial loss.
14. Equipment List for Flower Shop
There are various types of equipment that will be needed to run a floral shop. The tools requirement will also largely depend on the type of flower shop you are planning to start. However, some of the basic tools and equipment that are essential are listed below:
- Floral Knife
- Flower Cages
- Flower Branch Cutters
- Cooling Chamber to Store Flowers
- Flower Thorn Strippers
- Floral Tapes
- Flower Foam
- Different Types of Florist Wires
- Flower Adhesives
- Floral Wirecutter
- Different Types of Solutions to Keep Flowers Fresh
- Floral Picks
- Mister
- Floral Buckets
- Floral Scissors
15. Make Tie-ups for Sourcing Flowers
Having tie-ups with flower wholesalers is one of the most critical factors for running a profitable flower shop. You must make professional contracts with local flower wholesalers. It will ensure getting regular sources of fresh flowers and other floral designs so that you can cater to the needs of the customers on a daily basis.
16. Have a Marketing Plan
The floral service business is a competitive one. It is almost a certainty that you will find a flower shop nearby. As a result, it is essential to create an effective marketing plan so that your flower shop creates a distinctly different brand personality. If you want to make your flower shop stand out among competitors, some promotional strategies are a must. Here we list down some of the branding strategies one can adopt with little money:
- Print visiting cards, brochures, flyers, and leaflets and distribute them to potential customers.
- Print banners, posters and place them in important locations.
- Create a website and go online.
- Promote your floral services on social media platforms.
- Advertise in local newspapers and magazines.
Finally, it is worth mentioning that to be successful in the floral business, you need a lot of dedication and planning. Since flowers get spoilt in a matter of a day or two, one must have a good inventory maintenance strategy. Furthermore, any flower-related business will demand working for long hours.
You need to collect fresh flowers in the early morning and keep your flower shop open till late in the night. However, the business is rewarding and the profit margins are also more lucrative compared to other retail businesses. A floral shop business can be a highly profitable venture for people having a passion for flowers and floral design.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.
