Today, quite a lot of people are engaged in their own business. The most important thing is to constantly develop this business in order to receive a stable income. The sale of flowers is one of the areas of retail trade, which is associated with significantly greater risks than others. This is primarily due to seasonal factors, because beautiful plants are a very specific product, the demand for which is not the same throughout the year. Nevertheless, the profit from this type of activity is quite high, especially at rush hour. Therefore, many people are interested in how to open a flower business from scratch.
general information
According to many experts, the flower business can be successful only in regions with a high level of affluence. In addition, one of the key factors is the mentality of the population living in it. Also, a novice entrepreneur must take into account the specific features of this type of activity.
As statistics show, all the goods do not have time to be sold, and the number of colors written off is about ten percent of the total stock, which imposes additional financial costs on the store owner. However, even taking into account all the costs, the flower business (reviews of experienced entrepreneurs fully confirm this) brings a very good income. Its profitability averages about fifty percent, and the margin on products is about two hundred percent. And all this despite the fact that to start a business requires a relatively small amount of money.
Advantages and disadvantages of this retail business
These issues should be addressed in more detail. If you decide to open a flower business, where to start - will be described later in the article. But you need to consider all the pros and cons of this type of activity.
Among the main advantages are the following:
- Easy to open. To start you do not need too much money, compared with other industries. You can open a small shopping pavilion in a place with lots of potential traffic, having about seven thousand dollars in stock.
- Easy exit. This is a very important aspect, since the closure of certain types of entrepreneurial activities is fraught with a lot of problems.
- High profitability. Nowadays there are not many groups of goods, the margin on which can reach 200 percent.
Despite the quite obvious advantages that a business has, a flower shop also has a number of disadvantages necessary for taking note of beginning entrepreneurs.
Among the most significant, the following can be distinguished:
- Perishable goods. Flowers very quickly fade and lose their attractive appearance, because of which it will be impossible to sell them.
- Seasonality The most profitable in this industry are various holidays, for example, March 8, Valentine's Day, February 23, May 9, World Knowledge Day and so on. But there are also such periods in a year when trade does not go at all. In the summer, when all people go on vacation, you can’t count on at least any profit.
Thus, after weighing the pros and cons, you can begin to develop a business plan. The flower business, as mentioned earlier, is a rather specific type of activity, therefore, the design of the project should be approached thoroughly.
Where to begin?
So, the basic aspects that you need to know. In order for your business to be successful, it is very important to carefully approach its planning, as well as adhere to the main stages of its implementation. Entrepreneurship as such is not too complicated if everything is done correctly and in accordance with the law. Let's see how to start a flower business from scratch without any problems. Reviews from experienced co-operators claim that even those people who have absolutely no experience in this area will be able to cope with this.
Registration of a business entity
The beginning of the flower business, like any other type of activity, begins with a legal process. In order to carry out retail trade in any goods, and you need to register as an individual entrepreneur, choosing OKVED under the number 52.48.32 “Retail flower trade”. Next, you need to decide on the tax system. You can work both on a single and on a simplified taxation system.
When all the documents are in your hands, you will need to purchase a cash register and register it with the tax office. This process lasts about two weeks, but if you are in a hurry to open a store, you can use the services of sellers of commercial equipment, and they will do everything in just three days.
You also need to think about printing. It is not necessary to do it in order to open a flower shop for business, but not all suppliers work without a stamp on invoices. Therefore, it is better not to complicate your life and not to create additional problems in the work and just pre-order printing.
Documentation
This issue needs to be taken seriously, because without any paper you will not be able to conduct business.
Regardless of what products are sold at the point of sale, you must have the following documentation, which any buyer has the right to require for presentation:
- Permission to carry out trading activities.
- Conclusion of SES.
- Complaint book.
- Trade invoice.
In addition, if you wish, you can make a price list with prices, which will greatly simplify the trading process. Also, various authorities will periodically come to you with checks that will require a cash register, lease agreement and certificate of registration of a cash register. Therefore, these documents should always be in the store at hand. It is also important to remember that if hired employees will work for you, then they must have sanitary books and badges. Without them, access to the work of personnel is prohibited, and in case of violation is punishable by a fine.
Business Formats
So, you have collected all the necessary documentation to launch the project, and the thought is already spinning in your head: "My small flower business will flourish." But do not rush too much, because there are several options for doing business. They have certain key features that should be considered. Let's dwell on each of them in more detail so that you understand all the nuances.
Small stalls
As a rule, they are opened near the metro and public transport. This format is one of the most competitive, but there are a lot of potential buyers, so it is quite easy to survive in the market if you choose the right place to trade. This is very important, because if the flowers are sold out poorly, the number of rejects will increase significantly. Therefore, you should not strive to expand the range as much as possible, about 20 items will be quite enough.
Small flower shops
What do you need to know about them? A flower shop in business is one of the most profitable because it is the perfect combination of investment and profitability. Sales points are located in large shopping centers and places with a lot of traffic. Unlike the previous format, here the assortment plays one of the key roles. The wider it is, the more profit you can get. Therefore, in addition to traditional cuts, you should sell ready-made compositions, indoor plants, ceramics, gifts, souvenirs, floral substrate, flower care products and related products.
The more long-term storage products in the assortment, the more balanced the profitability will become, and the dependence of profitability on the volume of product sales will form less, because during periods when plants are in low demand, you will start earning from sales of other groups of goods.
When preparing a business plan for a flower shop, consider all associated costs. On average, you need at least $ 20,000 to open. However, the payback period of this business format is relatively short, so you will quickly return all your financial investments.
Online store
It is best to open an online market for the sale of floristic products to those citizens who have real experience in a retail flower shop. The life of a modern person is oversaturated with various things and concerns, so many people simply do not have time to go to specialized kiosks. Thus, bouquet delivery services are in great demand. In addition, many buyers like the fact that you can place your order without leaving your own home.
A flower business on the Internet is less expensive than other formats, because you do not need to rent a room, and trade is carried out through the site. However, you must understand that without an established customer base and well-established contacts with suppliers, it will be extremely difficult to succeed.
Floral Specialty Boutiques
What do you need to know? The business plan of the flower shop in the format of a specialized boutique requires careful study, since very large financial investments are required, as well as the profitability indicator and the time to reach the breakeven level depends on a number of criteria.
The boutique must be located on the first floor of the red line of houses or in large shopping centers with a lot of traffic from potential buyers. Particular attention should be paid to the design of the store, because its aesthetics is one of the very important criteria. A prerequisite in the assortment is ready-made floral arrangements created by professional florists.
The minimum financial costs required to open a specialized flower boutique start at $ 80,000. However, with a competent approach to opening and managing a store, the flower business will not only bring a steady income, but also give you and your customers joy.
As for profit, experts say that its average indicator is at the level of $ 5,000 per month, but this is far from the limit if, in addition to retail, you will be engaged in servicing corporate entities, as well as providing services for decorating various events.
A few words about geolocation
Opening a flower business from scratch, special attention should be paid to finding a location for a point of sale. After all, if you do not have a sufficient number of buyers, then you will not be able to sell all products on time and it will be rejected. Be it a shop or a small tent, it should be in a busy area, where a large number of people go daily. It is important to understand that the ideal place simply does not exist. The better the area, the higher the rental cost.
Point of sale can be arranged as follows:
- in toner or caravan;
- in the modular pavilion;
- in a separate building;
- in residential buildings on the red line;
- in the mall.
The best option will be the last option, since the cost of renting the area is relatively low, and the traffic of people in them is simply excellent.
Equipment purchase
This is one of the main issues that requires certain costs. When drawing up a business plan (the flower business can fully function only with the proper arrangement of the outlet), you need to carefully calculate how much money you will need to purchase equipment. For full-fledged work, you will need not only a cash register, but also special trading furniture, refrigerated racks and other equipment. Today on the Internet you can find many companies offering ready-made sets of equipment, as well as comprehensive services for its installation and maintenance. In addition, you can order the production of an individual project, which will take into account all your wishes.
Refrigeration equipment is mandatory, because without it in the summer, flowers will begin to wither and deteriorate much faster. Buying a finished camera is impractical, since it will be very problematic to place it. The best option is to make it to order. In addition, an air conditioner will need to be installed in the retail space to maintain optimal air temperature. The purchase of all this equipment will cost approximately 150-180 thousand rubles.
In order for the flower business to flourish, it is very important to present your product to potential buyers as profitably as possible. Therefore, it is advisable to purchase flowerpots and racks for plants. It will also require special designs for their placement. To buy all this, about 6-8 thousand are needed. And the last thing you cannot work without is a cash register. The average cost of KKM is 13,000 rubles.
Also, do not forget about the associated costs. Any flower shop, regardless of the form of business, needs packaging materials such as transparent film, multi-colored mesh, ribbons, felt and so on. To create beautiful bouquets for customers, you will need scotch tape, wire for gerberas, a stapler, ordinary and garden shears and a set of special knives. Buying all this will cost about 5,000 rubles.
And of course, do not forget about buying flowers. If you plan to open a small tent, then about forty thousand will be enough, but to fill the trading floor of the store you need about 350,000.
Marketing
Even novice entrepreneurs who do not have much business experience know that advertising is the engine of trade. If you do not conduct a quality marketing company, then the probability of a good start to the project is practically zero. To attract potential buyers at the store, you can install light banners. You can also distribute information on social networks and distribute flyers in places with high traffic.
Underwater rocks
So, we talked about how to open a flower business. Now let's find out what pitfalls a novice entrepreneur may face. The opening of a stall near the metro station is not a guarantee of success. You must consider the direction of the flow, namely where people go — home or to work. It is best to place a tent near roads or in the city center. Location in a residential area would not be the best solution.
Experienced businessmen recommend constantly monitoring the market, as well as monitor their competitors. Tracking their dynamics and ongoing promotions, you can gather a lot of useful information, as well as implement some ideas in your store.
When signing a premises lease, pay attention to whether utility bills are included in the price. If not, then it is better to look for another point, since the amount under this expense item is quite large, which will negatively affect the profitability of the enterprise. In addition, check the existence of a contract for garbage collection, otherwise you will have to dispose of empty containers and spoiled flowers that are not for sale on your own.
Conclusion
A business, be it floral or any other, has many nuances that should be taken into account, it is also fraught with various difficulties. The most important thing is to approach everything wisely. But if you seriously decided to make a fortune and chose the flower business as a start, then following the tips and recommendations discussed in this article, you will certainly manage. The main thing is not to be afraid of difficulties and move forward.