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Florist Business Plan

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Red, White & Bloom

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

“ If, at any time, it comes into my head, that a present is due from me to somebody, I am puzzled what to give, until the opportunity is gone. ”   Ralph Waldo Emerson “ Gifts ,” Essays, Second Series (1844).

In the 160 years since Emerson made this statement, certain things haven’t changed: some of the most successful businessmen still have trouble purchasing gifts – especially flowers – for their wives, fiancées or girl friends. While some things don’t change, fortunately others – such as technology that can make the gift-giving process easier – do.

Red White & Bloom believes there is an opportunity to use technology to make it simple for male executives to easily purchase custom flower arrangements, with delivery on days they determine in advance, for their loved ones. The company plans to approach its goal short term by targeting affluent executive businessmen in Midtown and Downtown Atlanta for a very upscale, Frequent Flower Gift Program and, long term, to debut the city’s first floral art gallery in a neighborhood that is building its name as the next major arts community in Atlanta. Red White & Bloom will differ from traditional florists by cultivating personal relationships through the use of technology and marketing, offering a gift program that makes purchasing flowers easy (and forgetting special dates a thing of the past), and delivering exceptional customer service. Ideally the company plans to open its gallery in March in Castleberry Hill, one of Atlanta’s historic loft neighborhoods that is less than one mile from Downtown Atlanta.

The company anticipates modest first year total revenue with the opportunity to increase Year Two revenue dramatically because of Valentine’s Day sales (excluded in Year One due to a March opening). Additional revenue growth should stem from the maturing Castleberry Hill area as a destination shopping district. At the time of opening the Castleberry Hill area will have approximately 1,500 residents. Studies indicate that a population of 10,000 is necessary to support a traditional retail florist; therefore, it is important to point out that Red White & Bloom will not be a typical retail florist. In Years One to Three of Red White & Bloom’s development, the company will not depend on retail traffic, but will instead use technology and savvy marketing programs to target ideal, repeat buyers (individuals and commercial accounts) in the more than 1,500 targeted businesses in Midtown and Downtown Atlanta office buildings.

With the anticipated expansion of Castleberry Hill as an arts district for leading Atlanta galleries, along with continued projected commercial and residential growth for the downtown area by Central Atlanta Progress, the Castleberry Hill location presents steady growth opportunities for Red White & Bloom. The company is forecasting conservative, yet healthy, revenue projections for Years Two and Three. If the company manages to this plan, revenues should consistently reach over $170,000 each additional year.

Red White & Bloom is an S-Corporation started by Jamie Muir, who is the majority owner.

1.1 Mission

Red White & Bloom will use technology to identify and serve an ideal target audience within a five-mile radius of Castleberry Hill. The company will use sophisticated marketing techniques to secure a core clientele of executive businessmen and corporate accounts, and will differentiate from other traditional retail and on-line florists by offering Frequent Flower Gift Programs with personalized service (e.g., customers can select the specific delivery dates) and custom floral designs (e.g., customers can specify flowers, colors, scents, etc.).

Red White & Bloom is dedicated to operating with a constant enthusiasm for learning, being open to implementing new ideas, and maintaining a willingness to adapt to evolving market conditions.

1.2 Keys to Success

• Using technology to develop loyal, frequently-buying male clients instead of traditional, walk-in retail shoppers.
• Designing and selling innovative, high quality fresh flower arrangements using a variety of design styles, flowers, and containers.
• Creating a storefront that resembles an art gallery, with fresh, avant-garde floral arrangements displayed like art (and always for sale).
• Offering additional products, including gourmet chocolates and original artwork from local artists.
• Communicating with potential customers through direct mail, print advertising and an easy-to-use website.
• Offering complimentary in-store events, such as book signings, cheese tastings, and art showings, that coincide with other neighborhood gallery openings.

1.3 Objectives

• Generate healthy total revenue of $79,600 in Year One.
• Maintain an average direct cost of sales 40% or lower, and a high gross margin.
• Build pricing programs based on the assumption of 10% profit.
• Increase sales approximately 72% in Year Two and 21% in Year Three.*

*Note: Red White & Bloom will open after Valentine’s Day and Easter/Passover in Year One. The large percentage increase in Year Two reflects a full 12-months of revenue (versus 10 months in Year One), the benefit of one year of marketing, and the inclusion of Valentine’s Day and Easter/Passover. Valentine’s Day alone typically accounts for one third of a florist’s yearly revenue.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Red White & Bloom will initially target two key audiences within one geographic market:

Affluent businessmen who work in Midtown and Downtown Atlanta: They are ideal candidates for an automatic, fresh flower delivery program that will help them keep romance alive with their spouses or significant others. The concept involves establishing flower arrangements as a way to foster romance, and the company will target men with higher levels of discretionary income who are more accustomed to spending money on loved ones. With Red White & Bloom’s floral delivery program, these men will never have to worry about missing a loved one’s special day (anniversary, birthday, holiday) and fresh flowers will also be promoted as a way to say “I Love You” on any day of the year. Also, instead of delivering flowers to a woman at home, Red White & Bloom will deliver flowers to the man who works in Midtown/Downtown Atlanta, and let him reap the benefits of delivering the flowers to his loved one in person. To address the inconvenience of transporting flower arrangements from work to home, Red White & Bloom will develop special packaging to keep containers upright and spillproof. This packaging will be well branded with the company’s logo, and will serve as an additional marketing vehicle once delivered to a customer’s workplace (office building).

Midtown and Downtown Atlanta: These are prime areas from which to attract a handful of commercial accounts that require weekly floral arrangements. Downtown Atlanta alone, defined as a four-square mile area centered near the intersection of Peachtree Street and Andrew Young International Blvd, is home to more than 136,000 employees daily. Almost half of the dozen Fortune 500 firms headquartered in Atlanta are either headquartered downtown or have a major office presence downtown. More than 6,500 banks, hotels, large corporations, law firms, upscale restaurants, and consulate/foreign trade offices are located in this defined area, and these businesses are prime candidate for weekly floral arrangements for their lobbies and/or reception areas.

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Store Location Because Red White & Bloom will not seek traditional retail customers, the company plans to locate in an area of Atlanta close to its downtown clients, but without the price tag of downtown retail space. Red White & Bloom plans to open a small gallery with warehouse workspace in Castleberry Hill, an up-and-coming arts district located approximately one mile from downtown Atlanta. The Castleberry Hill Arts District is currently home to several distinctive galleries, included Skot Forman Fine Art, the Marcia Wood Gallery, the Ty Stokes Gallery, 3TEN Haustudio, and the Wolf Fisher Gallery. In addition, the well-established Atlanta-based speciality furniture store, No Mas! Productions, plans to relocate its main store to the Castleberry Hill area, and create a distinctive destination shopping area for metro Atlanta shoppers. As a floral design gallery, Red White & Bloom will blend perfectly into this neighborhood, and can possibly secure some of the art galleries and stores – and their customers – as its own clients. During the first five years of operation, the company does not anticipate enough retail neighborhood foot traffic to generate desired revenue, but Red White & Bloom would be open to the public six days a week, and would offer a frequent buying program for residents.

Red White & Bloom plans to open in March, occupying approximately 600 square feet. Approximately one-third of the space would be allocated for retail use, and the other two-thirds would be used for workspace and storage. At this time, there are no other planned florists in the Castleberry Hill area.

Free parking is available for the shoppers who visit the area; however, the majority of Red White & Bloom’s revenue will come from routinely delivered floral arrangements outside of the Castleberry Hill area.

Atlanta is served by a large international airport, and access to imported flowers is excellent. Several of the city’s largest floral warehouses are located nearby: Hall’s (less than three miles); Cutflower Warehouse (less than six miles); and Floral Park (less than three miles). Red White & Bloom will also use the Internet to purchase from wholesalers throughout the country who offer a wide variety of flowers throughout the year and can drop ship directly to a retail florist.

Store Design The exterior of a florist shop is estimated to account for the attraction of 35% of all customers. While short term the company will not have a large amount of retail walk-in traffic, Red White & Bloom will still create an inviting storefront, one designed to be distinctive and inviting, including:

• Very simple, modern design with attractive displays
• Spacious interior design with lots of light and accent lighting to illuminate flower designs
• Unobstructed windows to showcase flower arrangement in a “gallery” format, with access to the store from the street
• Clear large glass windows with dramatic lighting and clear branding
• High visibility from the street, as well as visually pleasing at night
• Movable floor and ceiling displays to allow easy and frequent redesign of store
• Clearly priced merchandise
• A variety of pre-designed floral arrangements.

Store Operation Red White & Bloom will be open for operation Monday – Saturday, and closed on Sunday and on major holidays. Hours of operation will be 10:00 a.m. – 5:00 p.m. Monday – Friday, and from noon – 4:00 p.m. on Saturday. Hours may be extended during the holidays.

Owner Jamie Muir, who has more than 14 years of experience in corporate marketing and has trained as a florist, will create floral arrangements and run the business (manage operations, inventories, marketing and sales). She will engage the services of a part-time delivery person, and, for certain floral-intensive holidays, may employ temporary staffing.

Store Policies The company will invest in customer relationship management software (CRM) and a simple point of sales (POS) system to track sales and collect customer information, including names, address, e-mail address and other pertinent information (pets, flower likes/dislikes, color preferences, allergies, birthday, anniversary). This information will be used with e-mail and direct mail efforts to build custom marketing programs, establish customer loyalty and drive revenue. The company will offer a 24-hour return/exchange policy to build trust with customers and to maintain retention and loyalty.

2.1 Start-up Summary

Working capital, cash sufficient to cover build out costs in the second month, and long-term assets (such as refrigeration units) will make up the majority of the start-up requirements. Start-up expenses, which are detailed in this section, comprise the remaining 12% at $11,600.

Funding As detailed in Sources and Uses of Funds, Red White & Bloom requires $95,000 to soundly begin operations and have suitable cash reserves for a start-up company. Jamie Muir has secured a loan for $45,000, and is seeking additional funding. 

Sources & Uses of Funds The following chart recaps the sources and uses of funds for Red White & Bloom:

2.2 Company Ownership

Red White & Bloom is an S-corporation, and is majority-owned by Jamie Muir.

Products and Services

Red White & Bloom will offer a variety of products and services.

• Original Floral Designs, Using A Wide Mix of Flowers. Each Red White & Bloom floral arrangement will be a natural, original work of art. The company is committed to making each arrangement unique and custom-designed based on each customer’s needs. Red White & Bloom’s floral arrangements will feature a wide range of seasonal flowers. All sample arrangements in the store will be available for purchase.
• Unique Containers. Red White & Bloom will select and offer distinctive vases for the discretionary buyer or for a special occasion, as well as affordable options for routine purchases.
• Green and Flowering House Plants. Red White & Bloom may occasionally offer a selection of seasonal green and flowering house plants.
• Gourmet Chocolates. With consumer’s heightened awareness of chocolate brands and a seeming willingness to pay for a better product, Red White & Bloom will carry several lines of exclusive gourmet chocolate bars, that is, the brands will not be sold by other metro Atlanta retailers. The sale of gourmet chocolate is a perfect complement to flowers, and encourages consumers to indulge and experience something new because they are worth it.
• Paintings and Artwork from Local Artists. To create a gallery environment, the Red White & Bloom store will feature paintings and/or drawings from local artists, and the artwork will be for sale. The company will collect a small percentage of each sale (5%).
• Variety of prices. Red White & Bloom will offer a variety of arrangement sizes, and will always create a unique arrangement to meet anyone’s stated budget.
• Hand-tied Bouquets. For customers who prefer to use their own vases, Red White & Bloom will offer hand-tied bouquets.

Forget-Me-Not Club . Special occasions account for four out of every ten floral purchases made. To capture a portion of this market and to foster overall romance, Red White & Bloom will offer a Frequent Flower Gift Program called the Forget-Me-Not Club designed for men. This program will let each customer register a minimum of six days per year (birthdays, holidays, anniversaries or any day except Valentine’s Day) on which Red White & Bloom will automatically plan to deliver a floral arrangement to his place of work (which must be in Midtown or Downtown Atlanta). A courtesy call will be given or an e-mail sent to each customer 48-hours in advance. To make it as easy as possible for its customers to transport flower arrangements from work to home, Red White & Bloom will develop special packaging to keep containers upright and spillproof. This packaging will be well branded with the company’s logo, and will serve as an additional marketing vehicle once delivered to a customer’s workplace (office building). The customer must agree to the cost of each arrangement (minimum $100), in advance and the service must be guaranteed by a credit card in advance. The credit card will not be charged until the day of each delivery.

Commercial Account Program including :

• Free initial consulting . For retail and office tenants who are interested in a weekly delivery program, Red White & Bloom will conduct an initial free, on-site visit to the customer’s office or store to determine the optimum floral design plan.
• Priority delivery program . Red White & Bloom will work with each commercial customer to determine a weekly delivery schedule, and will assure that arrangements are delivered on the same day each week at the same time.
• Birthday Blooms . Red White & Bloom will offer a free arrangement to each office manager for a commercial account on his or her birthday.
• Referral Program . Red White & Bloom will offer a one-time 25% discount to each commercial customer for every additional commercial referral that becomes a customer.

Castleberry Hill Residential Program . For residents of Castleberry Hill, Red White & Bloom will offer a monthly fresh flower program with free delivery to encourage the habit of keeping fresh flowers in their homes. More frequent delivery options are available, and residents will be given a $5 discount if they pick up the flowers in the store, which will decrease delivery expenses as well as increase exposure to additional buying opportunities. Other special programs for local residents include:

• Forget-Me-Not Club. (As defined above.)
• Narcissus Club . For residents who desire a custom-designed floral plan for their homes, Red White & Bloom offers the upscale Narcissus Club, which includes a free in-home consultation to assess the customer’s home and the recommendation of a floral design plan; a minimum investment of $75 per month; and a minimum of a six-month commitment. The commitment must be guaranteed by a credit card in advance. This service will also be offered as a gift certificate (limited delivery).

Unique-buying experience . As the Castleberry Hill area becomes a destination shopping venue, Red White & Bloom will contribute to the experience by offering a pleasant shopping experience through the gallery-like design of its storefront, and its selection of materials and floral designs.

In-Store Presentations . In the spirit of education and event marketing, Red White & Bloom will offer periodic in-store workshops to attract potential customers. Topics will be seasonal in nature, and will feature guest artists such as regional cuisine, interior design tips from local designers, books signings, jewelry shows, and local artist showings.

Gift Cards . Red White & Bloom will offer $25, $50, $75 and $100 gift certificates, as well as gift cards for the Forget-Me-Not program that would enable women to receive the program as a gift, and then select the characteristics of each scheduled delivery.

Surveys/Comment Cards . Red White & Bloom will use in-store comment cards as well as occasional surveys to ensure products and services are meeting customers’ expectations.

Market Analysis Summary how to do a market analysis for your business plan.">

The following section presents a broad range of market information and projections, including:

• Who is the typical floral buyer, and who is the typical floral buyer at Red White & Bloom?
• How and why does he or she purchase flowers?
• What are the prevailing buying patterns in the floral industry?
• What is the size of the Atlanta market that Red White & Bloom plans to target?
• What is the overall buying potential/revenue for Red White & Bloom?
• Who is the competition in the Atlanta market?

4.1 Buying Patterns

Factors that Drive Typical Floral Purchases Holiday purchases traditionally drive the florist industry. The holidays, along with birthdays and anniversaries, are ideal dates for men to select as part of a Frequent Flower Gift Program. For reference, the following chart ranks floral purchases by holiday:

Percent Ranking by Retail Dollars

Source: American Floral Endowment Consumer Tracking Study

Capturing Valentine’s Day Business Valentine’s Day ranks number one in single-day holiday cut flower purchases, capturing 34 percent of transactions and 36 percent of dollar volume. Eighty percent of consumers who buy florals for the romantic holiday purchase cut flowers. According to the International Mass Retailers Association (IMRA), men are more likely to give flowers than women, and men plan to spend $95 on the average, while women plan to spend $60. The average amount spent per household is approximately $94.50, and the trend is an upward one.

To maximize Valentine’s Day revenue with add-on sales, Red White & Bloom will offer special, seasonal gourmet chocolates in addition to the store’s normal gourmet chocolates. Chocolates account for 75% of Valentine’s Day candy sales, which totaled an estimated $1.1 billion in 2002. A survey conducted by the Chocolate Manufacturers Association revealed that 50 percent of women are likely to give a gift of chocolate to a man for Valentine’s Day.

Profile of Traditional Buyers of Floral Arrangements Which households buy fresh cut flowers, how often and how much do they spend? According to the American Floral Endowment Consumer Tracking Study, consumer spending is on the rise. For example, the percentage of U.S. households making at least one fresh cut flower purchase during the year continues to increase. The frequency of consumer flower purchases is also remaining consistent.

• 27.7% of all US Household purchased fresh cut flowers at least once per year.
• The average floral purchase per buying household was 3.7 times.
• The average purchase price per buying household was $62.63.
• The most frequent purchases are women over 35, with incomes in access of $30,000 who live in metropolitan areas with populations greater than 2.5 million.
• Seventy percent of floral buys are planned purchased.

Source: American Floral Endowment Consumer Tracking Study.

4.2 Market Summary

Midtown and Downtown Atlanta Demographics Red White & Bloom will primarily target businessmen who work in highly-paid professions in Midtown and Downtown Atlanta. A second market includes businesses in Midtown and Downtown Atlanta that need weekly floral arrangements. The following chart provides an overview of potential prospects (businessmen and companies) within the defined areas.

• Midtown is defined as a one-mile radius from 10th NE at Peachtree.
• Downtown is defined as a four-mile radius from Peachtree and Andrew Young Intl Blvd.

*Represents Finance, Insurance & Real Estate Source: Central Atlanta Progress

To meet its target revenue goals, Red White & Bloom estimates that it needs the following number of clients:

• 2005 : Five commercial accounts (businesses); 50 Frequent Flower Gift Program Members (businessmen).
• 2006 : Eight commercial accounts (businesses); 75 Frequent Flower Gift Program Members (businessmen).
• 2007 : Ten commercial accounts (businesses); 100 Frequent Flower Gift Program Members (businessmen).

Given the combined 6,596 businesses located in Midtown and Downtown Atlanta, and the 1,510 ideal business (banks, law firms, securities firms, real estate, insurance companies and hotels), Red White & Bloom believes it has set realistic target levels for commercial accounts. Also, given the 195,149 employees who work in Midtown and Downtown Atlanta, with 26,010 identified as ideal prospects and assuming that 50% are men, the company also feels confident about its opportunity to reach its target goal for the Frequent Flower Gift Program.

For example, to reach its goal of five commercial clients in 2005, the company needs to secure .03% of its target company market (1,510), .05% in 2006, and .06% in 2007. To meet its Frequent Flower Gift Program estimates, the company needs to secure .04% of its targeted businessmen (13,005), .06% in 2006, and .08% in 2007.

4.3 Competition

Red White & Bloom plans to differentiate through its Frequent Flower Gift Programs for businessmen, and will treat in-office deliveries to its male clients as an opportunity to establish brand awareness with office managers for potential commercial account business. From preliminary research of the competition, Red White & Bloom has not identified any traditional florist in Atlanta, nor an on-line florist, that is offering a Frequent Flower Gift Program that allows the customer to choose random delivery dates in advance. As a result, the florists listed below are considered competition for commercial accounts: 

Carithers . 1893 Piedmont Road. Carithers is recognized as the leading florist in Atlanta, with three locations (one in town).

Petals: A Florist . 1422 Woodmont Lane NW. Petals offers flowers for delivery, as well as for special events such as weddings. The store uses fresh flowers to create designs with a natural garden feel. It also sells twig baskets and stone-finished containers with longer-lasting greenery and blooming plans, and offers baskets of fruit and gourmet food.

Lilly’s . 1197 Peachtree Street NE – Colony Square. Lilly’s is a full-service florist that serves the Colony Square retail and office clientele, along with the Sheraton Hotel.   

Twelve . 976 Piedmont Avenue – at 10th Street. Located in a former Midtown residence, the store carries unusual flowers and orchids. It also carries jewelry, designer handbags and sunglasses, throw pillows and bath towels.

Fuji Designs . 1157 West Peachtree Street. Fuji Designs is a Japanese-style florist, offering silk and fresh flower arrangements, along with Japanese gifts, jewelry, glassware and handbags.

Stems . 999 Peachtree Street – at 10th Street.  Located in the First Union building, Stems serves commercial clients in the building and is also a full-service floral shop. 

On-line Florists . In addition to traditional florists, floral arrangements can be purchased via the Internet. Such services are offered by Jackson & Perkins (jackson-perkins.com), Calyx & Corolla (calyxandcorolla.com), Hallmark Flowers (hallmark.com), FTD.com, Harry & David (harryanddavid.com), and many others. These companies offer a monthly delivery program; however, customers cannot select custom arrangements (they have to accept the “selection of the month”), nor can they specify a delivery date (they have to choose a “month” and the date of the delivery is determined by the company). Also, when the floral arrangements arrive, they require arranging, and often the finished product may not match the photo that drove the purchase. Deliveries present another challenge if the gift recipient isn’t home. The flowers are either returned to the shipper’s distribution center where they remain in a box, or they are left in the box on a doorstep for an undetermined amount of time. In either situation, the quality of the live, perishable flowers is reduced.   

Given the lack of Frequent Flower Gift Programs by Atlanta florists and on-line florists, Red White & Bloom believes there is a positive opportunity to establish a premium, niche service.

4.4 Target Market Segment Strategy

Buyer Characteristics  

Ideal characteristics of a typical Red White & Bloom customer are: 

Frequent Buyer Program Subscriber

• Male executive
• Works in Midtown or Downtown
• 25-60 years of age
• Married, engaged or in a long-term relationship
• Makes $150,000+
• Quality conscious
• Probably works as a banker, real estate agent, lawyer or financial analyst
• May have a preference for luxury items (cars, clothes, watches, homes, vacations)
• Homeowner, possible multiple home owner
• Has discretionary income

Commercial Accounts Customer Profile

• Primarily female office or store manager
• Professional 25-60 years of age
• Probably works for a law firm, hotel, large retail store, bank, real estate agency, foreign consulate or insurance agency

4.5 Market Projection

Using the target market numbers identified earlier in this section and the Midtown and Downtown Atlanta demographics, Red White & Bloom has made the following assessments regarding market opportunity and revenue potential:

POTENTIAL REVENUE FOR FREQUENT FLOWER GIFT PROGRAM CUSTOMERS: 13,005 Businessmen in Midtown & Downtown Atlanta x $600 (average purchase price [six deliveries per year, $100 per delivery])= $7.7 million of revenue opportunity. POTENTIAL REVENUE FOR WEEKLY COMMERCIAL ACCOUNTS CUSTOMERS: 6,596 Businesses in Midtown & Downtown Atlanta x $150 (average cost of an arrangement each week) x 52 weeks per year = $51.4 Million. If we assume (20) competitive florists in this area, that’s still $2.5M in potential revenue per florist. Or, if examined from another perspective, if the company can capture .05% of this potential business, that’s $257,244 in revenue opportunity.

As indicated previously, Red White & Bloom needs five commercial accounts and 50 Frequent Flower Gift Program Members to meet its first year revenue goals, and, given the breadth of the target market, the company believes these targets are reachable.

Strategy and Implementation Summary

According to the first American Express/RoperASW Global Affluent Study (October 2003), about half of high-income consumers around the world would choose to have more time in their lives than more money. Red White & Bloom’s goal is to facilitate this desire by creating marketing messages that emphasize being able to spend more time with love ones by: automating the flower arrangement buying process, fostering romance with the consistent delivery of flowers, and eliminating the worry of ever missing a loved one’s special day. The company’s intention is to gain market share with niche positioning, high quality products and, eventually, a unique shopping experience in an arts gallery district. The following sections review the various strategies that will support this effort.

5.1 Competitive Edge

Red White & Bloom will differ from traditional florists by creating customer intimacy based on personalized relationships that will save its male customers time and reduce anxiety often associated with the gift buying process. The company will achieve this goal by:

• Using technology to make the floral buying experience easy for customers and, at the same time, enable the company to identify and track its customer base.
• Creating a new fresh flower arrangement buying experience for customers – Atlanta’s first floral art gallery.
• Offering exquisite, artistic arrangements.
• Offering additional self-indulging products, including original artwork and gourmet chocolates.
• Building a customer database that identifies contact information as well as preferences (colors, vases, frequency, allergies, pets, children/spouse, birthday, anniversary, etc.).
• Adopting proactive customer service policies, for example, contacting each Frequent Flower Gift Program Member by phone call or e-mail within 48 hours of a scheduled delivery, and calling commercial clients after each delivery to ensure satisfaction.

As part of the definition process, it’s important to outline what Red White & Bloom is not. Unlike traditional florists, the company will not offer:

• FTD or Teleflora wire services. By recreating arrangements defined by another organization, this approach limits creativity.
• Weddings. Floral services for weddings are a specialty area. To remain focused on its Frequent Flower Gift Program objectives, Red White & Bloom may choose to refer potential wedding clients to other Atlanta florists.
• Funerals. Floral services for funerals are a specialty area. To remain focused on its Frequent Flower Gift Program objectives, Red White & Bloom may choose to refer potential funeral clients to other Atlanta florists.
• Balloons or stuffed animals.
• Atlanta-wide delivery services. Red White & Bloom will cater to Midtown and Downtown businesses, residents and workers.

5.2 Marketing Strategy

Overall Strategy It’s a widely-held thought that there are not too many florists in this country – there are too many florists who are the same. A florist with a well-defined niche business can thrive. Red White & Bloom’s marketing strategy is to develop a specialized, independent niche business that centers around Frequent Flower Gift Programs and features quality products, custom designs and outstanding personalized customer service.

Marketing Objectives Red White & Bloom needs to establish a reputation as an automatic, easy way to buy flowers and foster romance with loved ones, specifically with affluent men who work in Midtown and Downtown Atlanta. A measurable and specific objective includes initiating marketing efforts in the fall of 2004, and having a minimum of 25 male clients in a Frequent Flower Gift Program at the time of the store’s opening in March 2005.

Red White & Bloom needs to establish itself as a creative source for retail and office tenants in Midtown and Downtown Atlanta that need weekly flower arrangements. Measurable and specific objectives are to have five offices signed up for weekly deliveries by the time of the store’s opening.

Red White & Bloom needs to establish brand recognition to attract local shoppers who will eventually visit Castleberry Hill as a destination shopping area. Given the district’s art galleries, a measurable and specific objective includes having a least one local gallery as a client within one month of the store’s opening.

Positioning Red White & Bloom offers an upscale Frequent Flower Gift Program targeted to affluent businessmen, featuring custom, high-quality floral arrangements and personalized service. Additionally, the company plans to create a unique shopping experience with its floral design gallery, which is located in an up-and-coming arts district area.

Marketing Mix As outlined previously in this business plan, Red White & Bloom plans to serve three markets:

• Primary: Businessmen who work in Midtown and Downtown Atlanta.
• Secondary: Businesses in the same area.
• Tertiary: Residents of Castleberry Hill.

The company’s marketing efforts will focus on targeting men, and as a by-product of deliveries and promotional giveaway programs, the company plans to secure commercial accounts. Residential clients will stem from word of mouth and visibility of Red White & Bloom to neighborhood pedestrian and automotive traffic. The overall market approach involves creating brand awareness through targeted advertising, public relations and a website; and generating leads through co-marketing efforts with select venues, traditional direct mail/e-mail and events.

Primary Market: Businessmen Who Work in Midtown & Downtown Atlanta

Why should men subscribe to a frequent delivery program from Red White & Bloom?

• To foster romance with regular floral gifts for spouse/significant others.
• To eliminate “forgetting” about birthdays, anniversaries and other special dates.
• To be able to spend more time with loved ones and less time shopping for loved ones.
• Personalized service.
• Easy and convenient.
• Quality flowers and unique floral arrangements.
• One-of-a-kind gourmet chocolate available in addition to flowers.
• Free deliveries.

Other Markets

Why should commercial tenants buy from Red White & Bloom?

• Custom floral plan for each business.
• Frequent delivery program available.
• Free in-office/store consulting service available.
• Gourmet chocolate available as corporate gifts (for delivery).

Why should local residents buy from Red White & Bloom?

• Unique shopping experience.
• In home consulting available.
• Free neighborhood deliveries – discount for pickups.
• GOURMET chocolate.
• Event floral services (parties) available to local residents only.
• Support a local merchant.

Strategy For businessmen who work in Midtown & Downtown Atlanta in select industries, Red White & Bloom will emphasize services (Forget-Me-Not Club) to keep romance and love alive.

• Make giving flowers to loved ones an effortless, automatic process.
• Make the flower buying experience fun and easy.
• Make flowers a habit by encouraging men to take flowers home routinely, not just for special occasions.
• Shift the flower buying responsibility from women to men.

Public Relations While the company will primarily target men with its advertising efforts, it will target women in an effort to educate women about the Frequent Buyer Program, and the women may encourage their spouses/fiancées/significant others to participate.

• Announce the store’s Grand Opening and the availability of services.
• Issue at least one press release per quarter to local newspapers.
• Target Atlanta publications for possible feature stores (one per story per quarter).
• Press List: Around the Rings, Atlanta Downtown, Atlanta Homes & Lifestyles, Atlanta Intown & The Studio Arts/Culture, Atlanta Jewish Life, Atlanta Jewish Times, Atlanta Journal-Constitution (Home/Living Sections, Business Section), Atlanta Magazine, Atlanta Press, Atlanta Woman, Communities Magazine, Creative Loafing – Atlanta Edition, David Atlanta, Designer’s Handbook, Dixie Living, Hotlanta Buzz, Jezebel Magazine, Northside Newspaper, Peachtree’s Symbol of the South, The Piedmont Review, Post Notes, Southern Changes, Southern Lifestyles, Southern Living, Veranda, Westside Atlanta, Where Atlanta, Zoom.

Advertising The advertising program will explicitly target men.

• Develop a 1/8 page, one-color ad for routine insertions in the Atlanta Business Chronicle, the sports page and/or the business page of The Atlanta Journal & Constitution.
• Start ads in the fall of 2004 to build awareness and to generate business (in the form of gift certificates) for Christmas and Hanukkah.

Co-marketing Efforts

• Investigate contacting Peachtree Center Athletic Club, located in Downtown Atlanta, as a possible business partner. Offer free bi-monthly  floral arrangements in exchange for the opportunity to market to club members (which includes businessmen).

Direct Mail/Postcards

• Develop a list of potential clients for routine communications about holiday specials and frequent buyer/gift programs.
• Push users to a website that will enable them to see sample designs, read about the Forget-Me-Not Club, and complete a form to request a free phone consultation.
• Buy/develop an e-mail list for routine communications about holiday specials and frequent buyer programs.
• Push users to a website that will enable them to sign-up for a free phone consultation.

Marketing Materials Develop a consistent look and feel for all corporate collateral, including:

• Comment cards – collect name, addresses, e-mail, plus feedback on services.
• One-page brochure describing Frequent Flower Buyer Programs.
• Stationery – business cards, letterhead, envelopes.
• Gift cards.
• Packaging – develop no-spill packaging to make it easy to transport flowers and use all packaging for branding opportunities for Red White & Bloom logo and website.
• Highlight frequent flower program (for individuals and businesses), enable visitors to schedule a free phone consultation, spotlight the floral design gallery and any local gallery events. Photos will change monthly.

For Commercial Accounts: Identify 20 initial top retail and office prospects, especially new businesses in Centennial Park. Identify the primary buyer at each location, and deliver a free arrangement as a way of introduction.

• Network with store and office managers by researching and joining three key local business groups. 

For Local Residents

• Grand Opening Reception (April 2005).
• Hold Floral Design Gallery Shows in conjunction with other Gallery Openings in the neighborhood.

To keep costs down, events will be promoted using in-store signs (three-month forward-looking Calendar of Events), press releases and the company website.

5.3 Sales Strategy

Direct Sales

Today, over 90% of Americans cite word-of-mouth as one of the best sources of ideas and information. Word-of-mouth is rated as important as advertising or editorial content, and Americans place one-and-a-half times more value on it today than they did 25 years ago. ( Source: RoperASW, 2003 ). Red White & Bloom plans to foster direct sales by offering an exceptional level of personalized service to male executives in order to build loyalty, and ultimately, word-of-mouth referrals to their peers:

• The company will keep a database of customer names, addresses, e-mail addresses and preferences. This information will be used for e-mail and direct mail efforts to build customer loyalty.
• The company will offer a 24-hour return/exchange policy to build trust with our customers and maintain retention and loyalty.

Indirect Sales/Partner Opportunities

With its strategy of not offering special event or funeral arrangements, Red White & Bloom has an opportunity establish a referral service and partner with several key florists who can provide such floral services. The company would collect a flat percentage of each referral sale, with the sum payable at the end of each month.

5.3.1 Sales Forecast

2005 SALES FORECAST ASSUMPTIONS (MARCH 1 OPENING)

The estimates above equate to approximately six deliveries per week for the Frequent Flower Gift Program, and five deliveries per week for Commercial Accounts.  

2006 SALES FORECAST ASSUMPTIONS

The estimates above equate to approximately nine deliveries per week for the Frequent Flower Gift Program, and eight deliveries per week for Commercial Accounts. 

2007 SALES FORECAST ASSUMPTIONS

The estimates above equate to approximately twelve deliveries per week for the Frequent Flower Gift Program, and ten deliveries per week for Commercial Accounts. This sales activity level represents the maximum amount of clients that Red White & Bloom can handle without adding another full-time floral designer and a full-time driver. 

5.4 Milestones

The following table lists important store milestones, with dates, implementation duty, and budgets for each. The milestone schedule emphasizes the timeliness for implementation per the sales and marketing targets listed in the detail in the previous topics.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Owner Jamie Muir brings more than 15 years of marketing and management experience to Red White & Bloom. Her background in the technology and applications software industry includes using the Internet and integrated marketing communications to attract customers and develop brand loyalty. Jamie graduated cum laude from the University of Georgia in 1988 with a degree in Journalism. She has also completed training at the Vermont Academy of Floral Design, and apprenticed at De tuin van Heden, a retail flower shop in Ghent, Belgium. She currently holds a full time job as the public relations manager for a profitable, publicly traded technology company in Atlanta.

6.1 Personnel Plan

Red White & Bloom will not employ any staff members directly. As an owner of the company, Jamie Muir will take quarterly payments in the form of an after-tax draw. Although actual draw may vary with realized sales and profits, we are projecting owner’s draw will steadily increase from the first year to the third year. Other employees, when necessary, will be employed via a local temporary agency. These labor expenses can all be found in the Profit and Loss table, below.

Jamie Muir will oversee financial management, merchandising and operations for Red White & Bloom. Responsibilities will include: selling to commercial accounts; ensuring a profitable sales picture; establishing pricing policies; keeping up-to-date on trends by monitoring trade journals, vendors, sales reps, buying trips, industry meetings and educational programs; preparing and executing marketing programs, including advertising, publicity and lead generation programs (via direct mail and e-mail); establishing partner relationships as needed and designing arrangements.

She will also oversee sales, design and delivery. Responsibilities will include selling to walk-in retail customers; designing arrangements; ordering flowers, plants and greens; purchasing supplies, vases and containers; pricing and selling merchandise and orders for profit; spot checking orders to ensure quality products; knowing social and religious customs of various holidays; and handling complaints.

Delivery Person

The delivery person’s primary tasks will include planning deliveries (right time, right day); loading and unloading products carefully, securing plants and flowers during transportation; repairing, returning and replacing any transit-damaged products; keeping track of deliveries; and performing on-site credit card transactions. This position will be secured through a local employment agency, and will work part-time. Based on projected sales for the first year, a delivery person will be required approximately two hours per day, four days per week in the first year; hours needed will increase proportionally with sales in years two and three.

Characteristics: courteous, knowledgeable, neat and clean. The person should know the Midtown and Downtown areas of Atlanta.

Temporary Help

Red White & Bloom will employ temporary employees via a local staffing agency to assist with sales and customer service prior to Valentine’s Day, Mother’s Day, Easter/Passover, Thanksgiving and Christmas/Hanukkah.

Second Year: Contract Floral Designer As Needed for Holidays & Special Events

The contract floral designer will create arrangements using flowers, floral products and/or plants, working directly with customers regarding price and type of arrangement or following information from an order form. Other tasks include giving estimates on design work; working promptly and profitably, including tracking all materials used in every arrangement for accurate pricing; keeping the design area clean; keeping the cooler clean and rotating flower stock. The designer may assist walk-in customers, operate the cash register, and handle customer concerns and complaints. This position will be a part-time contractor.

Financial Plan investor-ready personnel plan .">

• Contracted Labor and Rent make up over 40% of the operating expenses.
• Red White & Bloom wants to finance growth through cash flow.
• Marketing will remain at or below 6% of sales.
• Company expansion, while not a necessity, will be an option if sales projections are met and/or exceeded.

7.1 Break-even Analysis

For our break-even analysis, we assume running costs which include our full payroll, rent, and utilities, and an estimation of other running costs. The chart shows what we need to sell per month to break even, according to these assumptions.

7.2 Projected Profit and Loss

This business plan assumes an eventual 10% profit and is built using the following allocations of gross revenue:

• 30% labor (including owner’s draw)
• 10% inventory
• 27% overhead
• 23% cost of merchandise

7.3 Projected Cash Flow

The Cash Flow table, below, shows a solid cash balance from day one. Because Red White & Bloom will sell on a cash-basis only, and will stock only slightly more than one month’s inventory at any time, we do not anticipate any problems with cash flow, once we have obtained sufficient start-up funds.

7.4 Projected Balance Sheet

The Balance Sheet, below, shows our projected assets and liabilities for the three years of the plan, including accumulated depreciation of long-term assets.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5992, Florists, are shown for comparison.

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Home » Sample Business Plans » Wholesale & Retail

How to Write a Flower Shop Business Plan [Sample Template]

Are you about starting a flower shop? If YES, here is a complete sample flower shop business plan template & feasibility report you can use for FREE . If you have eyes for colors and designs, as well as have a penchant for beauty, then you may want to tinker with starting your own Flower Shop. The market for both fresh flowers and artificial flower has continued to soar from generation to generation. This is as long as we still have weddings, burials and other special events taking place all around us.

Why Start a Flower Shop?

Fact remains that as insignificant as most people think flower is, it is still a major requirement for weddings (Bouquet for the brides), burial designs (wreath), love gathering and design and decoration of event centers and even worship centers.

No doubt if you are interested in making brides happy on their wedding day or adding colors to people’s events, then you should consider starting your own flower shop. It is indeed a profitable venture especially if you know how to roll with big – time events and wedding planners.

One beauty about this kind of business is that you could decide to specialize in either artificial flowers or natural flowers and also you can decide to specialize in both. With natural flower, you can even start by growing them in a garden in your compound if you have enough space and also you can order your artificial flowers and flower pots directly from the manufacturer at a cheaper rate if you know how to bargain.

A Sample Flower Shop Business Plan Template

1. industry overview.

A flower shop is a place where flowers are retailed. The florist industry or flower shops basically retail cut flowers, floral arrangements, potted plants and artificial flowers. Industry operators purchase these goods from domestic and international flower farms and wholesalers, and then sell them to the general public. This industry excludes operators that primarily function as electronic shopping websites and mail-order companies.

The Florists industry has been on a downward movement over the last five years. Bad economic conditions during the recession period reduced disposable income, dissuading households from making discretionary purchases on flowers and plants.

So also, intensified competition has worsened declining demand; discounted prices for comparable goods online and in supermarkets have led consumers to buy fewer flowers from traditional flower shop. The Florist industry is a thriving sector of the economy of the united states which generates a whooping sum of well over billion annually from more than 35,343 outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 83,208 people. Experts project the florist industry to grow at a 1.4 percent annual rate. No single florist store can boast of having a lion market share in the industry. The Florists industry has minimal barriers to entry, with low start – up capital and no specific licensing requirements.

The majority of flower shops operate as non – employers and the capital costs of establishing retail outlets are not substantial relative to many other retail industries, such as department stores. On the other hand, the high level of competition and market saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to start their own flower shop – business.

Most players in the florist industry are small- to medium-size establishments that cater to the local community. With this kind of business, if you want to start on a small scale, you can choose to start it as a part time business from your home. All you would need is contacts, business cards and your catalogue.

However, if you intend starting it as a full – time business person, then you should consider renting a shop in an area that is prone to high human and vehicular traffic. The good thing about ensuring that your flower shop is visible to all is so that people may easily walk into your shop to make enquiries even if they aren’t buying at that moment. With that you will be able to build your potential client list that you can use for marketing purpose.

Over and above, the florist industry / flower shop is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. Executive Summary

Natures Delight™ Flower Shop, LCC is a standard and registered flower shop business that will be located in one of the busiest roads in Orlando, Florida. We have been able to lease a facility along a major road that is big enough to fit into the design of the kind of flower shop that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Orlando, Florida.

Natures Delight™ Flower Shop, LCC will be involved in the production / cultivation, commerce and trade of flowers. Our product and services encompasses flower care and handling, floral design or flower arranging, merchandising, and display and flower delivery. We will also sell bulk flowers and related supplies to professionals in the trade.

We are aware that there are several large and small flower shops all around Orlando – Florida, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet is well secured with the various payment of options.

Much more than retailing cut flowers, retailing of fresh and artificial flowers, retailing floral arrangements, retailing potted plants and retailing complimentary gift items , our customer care will be second to none in the whole of Orlando, Florida.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our flower and also to become our loyal customers and ambassadors. Natures Delight™ Flower Shop, LCC will ensure that all our customers are given first class treatment whenever they visit our flower shop.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved when making some business decisions that directly affect them.

We are aware of the trend in the retail / florist industry and we are not only going to operate a system where our customers would have to come to our flower shop to make purchase or whatever they want but we will also operate an online store and our customers can order flowers and related merchandize online and they will get it delivered to their houses or any location they want us to deliver the goods to within Orlando.

Natures Delight™ Flower Shop, LCC is a family business that is owned by Bernie Vandross and Family. Bernie Vandross is florist per excellence; he has a B.Sc. in Business Administration, with well over 15 years of experience in the florist and retailing industry, working for some of the leading brand in the United States.

Although the business is launching out with just one outlet in Orlando – Florida, but there is a plan to open other outlets all around Florida and perhaps in other key cities in the United States of America.

3. Our Products and Services

Natures Delight™ Flower Shop, LCC is in the florist industry / flower shop line of business to make profits and we will ensure we go all the way to make available a wide range of flowers both natural and artificial and other related merchandize to our clients.

Our product and service offerings are listed below;

• Retailing cut flowers
• Retailing of fresh and artificial flowers
• Retailing floral arrangements
• Retailing potted plants
• Retailing complimentary gift items

4. Our Mission and Vision Statement

• Our vision is to become the leading flower shop – brand in the florist industry in Florida and to establish a one stop flower shop in Orlando and in other cities in Florida.
• Our mission is to establish a flower shop business that will make available a wide range of both fresh / natural and artificial flowers at affordable prices to the residence of Orlando, Florida and other cities in Florida where we intend opening of chains of flower shops.

Our Business Structure

Natures Delight™ Flower Shop, LCC do not intend to start a flower shop business like the usual mom and pop business around the street corner; our intention of starting a flower shop business is to build a standard and one stop flower shop in Orlando, Florida.

Although our flower shop business might not be as big as other related business that are into retailing, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Shop Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Chief Florist):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Shop Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls goods distribution and supply inventory
• Supervises the workforce
• Responsible for retailing cut flowers
• Responsible for retailing of fresh and artificial flowers
• Responsible for retailing floral arrangements
• Responsible for retailing potted plants
• Responsible for retailing complimentary gift items
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of both natural and artificial flowers in our shop
• Responsible for the purchase of flowers and related products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the shop facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handles any other duty as assigned by the shop manager.

6. SWOT Analysis

Our intention of starting just one outlet of our flower shop in Orlando, Florida is to test run the business for a period of 2  to 5 years to know if we will invest more money, expand the business and then open other outlets all over Florida.

We are quite aware that there are several Supermarket who retail flowers and flower shops all over Orlando and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Natures Delight™ Flower Shop, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Natures Delight™ Flower Shop, LLC;

Our location, the business model we will be operating on (physical flower shop and online flower store), varieties of payment options, wide range of flowers and related products and our excellent customer service culture will definitely count as a strong strength for Natures Delight™ Flower Shop, LLC.

A major weakness that may count against us is the fact that we are a new flower shop – business and we don’t have the financial capacity to compete with multi – billion dollars supermarkets who are into retailing of flowers and other big – term florist companies who are into mass production of flowers and related products when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our flower shop in one of the busiest streets in Orlando, Florida provides us with unlimited opportunities to sell our flowers and related products to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our flower shop; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket that is into retailing flowers and other flower shops in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

In this era when the online community is growing rapidly, you would do your business a whole lot of favor if you create your own online presence. One of the easiest ways to get people to see you as an expert in your line of business is to blog constantly about flowers. You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter, and others to publicize your flower business.

You can as well go ahead to open an online flower shop where people can order flowers for their special occasion from your shop. You must ensure that your delivery system (shipping) is efficient if you intend to do well with your online flower shop.

You might not have all the designs and color combination of your flower per time in your shop, but one smart thing you may do for your business is to prepare a comprehensive catalogue that contains all form of flower designs.

Your catalog should be your number one marketing tool so you must ensure that it is well designed and of high quality. You should be ready to always update your catalog when you have new designs – that is where your graphics skills will come in handy.

Another key factor that could help you grow your business fast is to leverage on existing platforms. You can join a florist association in your area, as well as can with wedding and event planners in your area. Better yet, you can also work with caskets seller too. If you are in good business relationship with all these people mentioned, then you can be rest assured that your business will grow in within a short period of time.

8. Our Target Market

There are loads of people who can’t do without flowers either natural or artificial flower and there are loads of functions such as wedding ceremonies, burial ceremonies and many other events. This goes to show that if a flower shop is well positioned, they will continue to sell their products to a wide range of clients on a regular basis.

In view of that, we have positioned our flower shop to service the residence of Orlando, Florida and every other location our flower shop will be located in key cities all over Florida. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of flowers and related merchandize to the following groups of people;

• Event Planners
• Churches and other religious centers
• Funeral Homes
• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

A close study of the florist industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with flower shops and other leading supermarkets that are into retailing of flowers in Orlando, Florida.

Natures Delight™ Flower Shop, LLC is launching a standard flower shop that will indeed become the preferred choice of residence of Orlando, Florida. Our flower shop is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Orlando, Florida. We have enough parking space that can accommodate well over 20 cars per time.

One thing is certain, we will ensure that we have a wide range of flowers both natural and artificial and related products available in our shop at all times. It will be difficult for customers to visit our flower shop and not make a purchase of flowers or other related products.

One of our business goals is to make Natures Delight™ Flower Shop, LLC a one stop flower shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups flower shops) in the florist industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Natures Delight™ Flower Shop, LLC is in business to retail a wide range of flowers (both natural and artificial) and related products to the residence of Orlando, Florida. We are in the florist industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of flowers and other related products at affordable prices. We will generate income by;

10. Sales Forecast

One thing is certain when it comes to flower shop business, if your shop is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Orlando, Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the florist industry / flower shop line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Orlando, Florida.

Below is the sales projection for Natures Delight™ Flower Shop, LLC, it is based on the location of our business and other factors as it relates to flower shop start – ups in the United States;

• First Fiscal Year-: $50,000
• Second Fiscal Year-: $150,000
• Third Fiscal Year-: $450,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Natures Delight™ Flower Shop, LLC, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Orlando, Florida. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the florist industry / flower shop line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Orlando.

In other to continue to be in business and grow, we must continue to sell the flowers and related products that are available in our shop which is why we will go all out to empower or sales and marketing team to deliver. In summary, Natures Delight™ Flower Shop, LLC will adopt the following sales and marketing approach to win customers over;

• Open our flower shop in a grand style with a party for all.
• Introduce our flower shop business by sending introductory letters alongside our brochure to organizations, religious centers, funeral homes, event planners, households and key stake holders in Orlando, Florida
• Ensure that we have a wide range of flowers (natural and artificial) and other related merchandize in our shop at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our flower shop
• Position our signage / flexi banners at strategic places around Orlando
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our flower shop.

11. Publicity and Advertising Strategy

Despite the fact that our flower shop is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote Natures Delight™ Flower Shop, LLC. Natures Delight™ Flower Shop, LLC has a long term plan of opening outlets in various locations all around Florida which is why we will deliberately build our brand to be well accepted in Orlando before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Natures Delight™ Flower Shop, LLC;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Orlando, Florida
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, religious centers, funeral homes and event planners et al by calling them up and informing them of Natures Delight™ Flower Shop, LLC and the products we sell
• Advertise Natures Delight™ Flower Shop, LLC business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to retailers and flower shops, it is normal for consumers to go to places (flower shops) where they can get flowers and related merchandize at cheaper price which is why big player in the florist industry will continue to attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with bigger and well – established flower shops, but we will ensure that the prices of all the products that are available in our flower shop are competitive with what is obtainable amongst flower shops within our level.

We are aware that there are contracts for flower supply by government, sports organizations or big religious organization; we will ensure that we abide by the bidding pricing template when we bid for such contracts.

• Payment Options

At Natures Delight™ Flower Shop, LLC, Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Payment with check from loyal customers

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a flower shop business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Orlando, Florida – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Peak Lane Grocery Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of flowers (both natural and artificial, flower pots, and other related merchandize) – $100,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $5,000
• Miscellaneous: $5,000

We would need an estimate of $250,000 to successfully set up our grocery store in Orlando, Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Natures Delight™ Flower Shop, LLC

Natures Delight™ Flower Shop, LLC is a private business that is solely owned and financed by Bernie Vandross and family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Natures Delight™ Flower Shop, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our flowers, flower pots and other related merchandize a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Natures Delight™ Flower Shop, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our shop: Completed
• Establishing business relationship with vendors – suppliers of flowers, flower pots and related merchandize – In Progress

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Here is a free business plan sample for a florist shop.

Have you been nurturing the idea of opening your own florist shop but feel overwhelmed about where to start?

In the following paragraphs, we will present to you a comprehensive business plan sample tailored for a florist business.

As you may already be aware, a detailed business plan is crucial for any entrepreneur. It serves as a roadmap, guiding you through the establishment and growth of your business, outlining your objectives, and detailing the strategies you will employ to achieve them.

To streamline the process and help you bloom into a successful florist entrepreneur, you can utilize our florist business plan template. Our team is also on standby to provide a free review and offer suggestions for improvement.

How to draft a great business plan for your florist shop?

A good business plan for a florist must cater to the unique aspects of the floral industry.

Initially, it's important to provide a comprehensive overview of the market. This includes up-to-date statistics and identifying emerging trends within the floral sector, similar to what we've outlined in our florist business plan template .

Your business plan should articulate your vision clearly. Define your target market (such as local residents, event planners, corporations, or wedding clients) and establish your florist shop's distinctive appeal (eco-friendly, exotic flowers, local sourcing, etc.).

Market analysis is the next critical component. This requires a thorough understanding of local competitors, market tendencies, and consumer preferences specific to the floral industry.

For a florist, it's imperative to detail the range of products you intend to offer. Describe your selection of flowers, arrangements, related gifts, and additional services, and explain how these cater to the desires and needs of your clientele.

The operational plan is equally vital. It should outline the location of your florist shop, the design of the retail space, supplier relationships for fresh flowers and materials, and the logistics of bouquet assembly and delivery.

As a florist, highlighting the quality and source of your flowers, arrangement artistry, and care in handling and delivery is crucial.

Then, delve into your marketing and sales strategy. How do you plan to attract and keep customers? Discuss promotional tactics, customer loyalty programs, and potential supplementary services (like floral workshops or corporate accounts).

Incorporating digital strategies, such as an e-commerce website or social media engagement, is also critical in the modern marketplace.

The financial framework is another fundamental section. This should encompass the initial investment, sales projections, ongoing expenses, and the point at which the business will break even.

In the floral industry, certain products may have slim margins, so precise planning and a solid grasp of your financials are essential. For assistance, consider using our financial forecast for a florist .

Compared to other business plans, a florist's plan must pay particular attention to the perishability of inventory, the seasonality of flower availability, and the timing of peak demand periods such as holidays and wedding seasons.

A well-crafted business plan will not only help you define your vision and strategies but also attract investors or secure loans.

Investors and lenders are looking for comprehensive market analysis, realistic financial projections, and a clear plan for day-to-day operations of a florist shop.

By presenting a thorough and substantiated plan, you showcase your dedication and preparedness for the success of your florist business.

To achieve these goals while saving time, you can simply fill out our florist business plan template .

A free example of business plan for a florist shop

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a florist .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The floristry industry is a vibrant and evolving market with significant economic presence.

As of recent estimates, the global flower and ornamental plant market reached a value of over 50 billion dollars. This market is expected to continue its growth trajectory, driven by the increasing demand for fresh flowers, ornamental plants, and related services.

In the United States alone, there are over 30,000 florist businesses, contributing to an annual revenue of approximately 5 billion dollars for the industry.

These statistics underscore the integral role that florists play in American social and cultural events, as well as their substantial contribution to the economy.

The floristry industry is experiencing a wave of trends that reflect changing consumer preferences and societal values.

Eco-friendly and sustainable practices are becoming more prevalent, with customers showing a preference for locally sourced and organically grown flowers. This shift is leading to an increase in the use of biodegradable packaging and a reduction in the carbon footprint associated with flower transportation.

Personalization is another growing trend, as customers seek unique and customized floral arrangements for events and personal gifting.

Technology is also making its mark, with online flower delivery services expanding rapidly, offering convenience and a broad range of options for consumers.

Moreover, the use of social media for marketing has enabled florists to showcase their designs and reach a wider audience, while also providing inspiration for customers.

These trends highlight the dynamic nature of the floristry industry and its adaptation to the evolving demands of modern consumers.

Success Factors

Several factors contribute to the success of a florist business.

Foremost, the quality and freshness of flowers are paramount. Florists who provide vibrant, long-lasting blooms are more likely to develop a dedicated clientele.

Innovation in floral design, including the use of non-traditional plants and materials, can distinguish a florist in a crowded marketplace.

The location of the florist shop is also critical, as high-traffic areas can lead to increased visibility and sales.

Exceptional customer service is essential for building relationships and encouraging repeat business. Personal touches, such as remembering customer preferences and offering tailored advice, can make a significant difference.

Lastly, effective cost control, embracing sustainable practices, and the ability to adapt to industry trends, such as the rise of online ordering and delivery services, are crucial for the longevity and prosperity of a florist business.

The Project

Project presentation.

Our boutique florist shop project is designed to cater to the sophisticated tastes of customers seeking premium floral arrangements and related services. Ideally situated in a bustling urban area or within a high-end shopping district, our florist shop will offer a diverse selection of fresh-cut flowers, exotic plants, and bespoke bouquet services, all crafted with the utmost care and attention to detail.

We will emphasize the quality, beauty, and artistry of our floral arrangements to provide an unparalleled aesthetic experience.

Our florist shop aims to become a distinguished establishment known for its unique floral designs, contributing to the enhancement of our customers' special moments and everyday life.

Value Proposition

The value proposition of our boutique florist shop project is centered around providing exquisite and artfully designed floral arrangements that cater to the discerning tastes of our customers.

Our dedication to quality, beauty, and personalized service offers a superior experience for those looking to express their emotions through the timeless gift of flowers.

We are committed to fostering an atmosphere of elegance and charm where customers can find the perfect expression for any occasion, and we aim to educate our customers about the language of flowers and the importance of sustainable floristry practices.

Our florist shop aspires to be a cornerstone in the community, offering a luxurious alternative to conventional flower shops and enhancing the lives of our customers through the beauty of flowers.

Project Owner

The project owner is a floral designer and entrepreneur with a profound appreciation for the art of floristry.

With a background in design and horticulture, as well as experience in luxury retail, they are poised to create a florist shop that stands out for its artistic flair, exceptional customer service, and commitment to sustainability.

Driven by a vision of beauty and a passion for floral art, they are determined to provide stunning arrangements that capture the essence of both modern trends and timeless elegance, all while contributing to the well-being of the environment and the local community.

Their dedication to excellence and their love for flowers are the heart of this project, aiming to bring joy and beauty to customers' lives through the power of sophisticated floral design.

The Market Study

Market segments.

The market segments for this specialized florist shop are divided into several categories.

First, there are individual customers who seek fresh flowers for personal occasions such as birthdays, anniversaries, or as a means to express emotions like love, sympathy, or congratulations.

Next, there are event planners and wedding coordinators who require floral arrangements for creating memorable and aesthetically pleasing events.

The market also includes corporate clients who need floral decorations for their offices, events, or as corporate gifts to employees and clients.

Finally, online shoppers represent a growing segment, as they look for the convenience of ordering flowers and gifts for delivery directly to recipients.

SWOT Analysis

A SWOT analysis of this florist shop project reveals several aspects.

Strengths include a deep knowledge of floral design, a commitment to customer service, and the ability to source a wide variety of fresh flowers.

Weaknesses could include the perishable nature of inventory and the challenge of maintaining flower freshness during delivery.

Opportunities lie in leveraging social media and online marketing to reach a broader audience, as well as in offering floral subscription services or workshops.

Finally, threats could include competition from supermarkets and online flower delivery services, as well as economic downturns affecting discretionary spending.

Competitor Analysis

Competitor analysis in the florist industry reveals a mix of traditional brick-and-mortar flower shops, online flower delivery services, and supermarkets with floral departments.

These competitors vie for customers by offering convenience, price points, and a range of floral products.

Potential competitive advantages include superior floral arrangement design, personalized customer service, unique and exotic flower offerings, and a strong local brand presence.

Understanding competitors' strengths and weaknesses is crucial for carving out a niche in the market and for customer loyalty building.

Competitive Advantages

Our dedication to the artistry of floral arrangements sets us apart in the florist industry.

We offer a curated selection of high-quality flowers and plants, coupled with bespoke design services to cater to our customers' unique preferences and occasions.

Our focus on customer experience ensures that each interaction is personal and memorable, fostering a loyal customer base.

We also prioritize sustainability by sourcing locally grown flowers where possible and implementing eco-friendly practices in our operations.

You can also read our articles about: - how to open a florist shop: a complete guide - the customer segments of a florist shop - the competition study for a florist shop

The Strategy

Development plan.

Our three-year development plan for the boutique florist shop is designed to bloom beautifully and sustainably.

In the first year, we will concentrate on cultivating a loyal local clientele, emphasizing exceptional customer service, and creating a strong brand identity.

The second year will be focused on expanding our reach by establishing an online store and considering pop-up shops in high-footfall locations to increase visibility.

In the third year, we aim to diversify our offerings with a wider range of flowers and related products, and to form partnerships with event planners and corporate clients for steady growth.

Throughout this period, we will remain dedicated to the artistry of floral design, the freshness of our products, and the personal touch that sets us apart in the marketplace.

Business Model Canvas

The Business Model Canvas for our florist shop targets customers seeking premium floral arrangements, gifts, and decor for various occasions.

Our value proposition lies in providing artistically crafted bouquets, exceptional customer experiences, and personalized services for events and special occasions.

We will sell our floral products through our physical shopfront and an online platform, utilizing our key resources such as skilled florists, a well-curated supply of fresh flowers, and a strong supply chain.

Key activities include floral design, customer service, and maintaining strong supplier relationships.

Our revenue streams will flow from the sales of floral arrangements, related gift items, and event decoration services, while our costs will be mainly associated with purchasing flowers, marketing, and maintaining our storefront.

Discover a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is rooted in visual appeal and emotional connection.

We plan to showcase the beauty and quality of our arrangements through social media platforms, collaborations with influencers, and community events.

We will also offer floral arrangement workshops to engage with customers and create a community around our brand.

Partnerships with wedding planners, event coordinators, and local businesses will help us reach new customer segments.

Our promotional efforts will be complemented by a loyalty program and seasonal campaigns to keep our brand top-of-mind for all floral needs.

Risk Policy

The risk policy for our florist shop is designed to mitigate risks associated with perishable goods, supply chain management, and market fluctuations.

We will implement strict inventory controls to ensure the freshness of our flowers and minimize waste.

Building strong relationships with a diverse group of suppliers will help us manage supply risks and ensure a consistent quality of products.

Prudent financial management and a flexible business model will allow us to adapt to changing market demands and economic conditions.

We will also secure insurance to protect against business interruptions and liability claims, ensuring that we can continue to delight our customers with minimal disruption.

Why Our Project is Viable

We are passionate about bringing the joy of flowers to people's lives and believe that our boutique florist shop will flourish in the hearts of our community.

With a focus on quality, creativity, and customer experience, we are poised to stand out in the floral industry.

We are excited to nurture our business and watch it grow, contributing to the happiness and well-being of our customers.

We are adaptable and ready to evolve our strategies to ensure the success and vibrancy of our florist shop.

You can also read our articles about: - the Business Model Canvas of a florist shop - the marketing strategy for a florist shop

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a florist and our financial plan for a florist .

Initial expenses for our florist shop include the cost of leasing a retail space, purchasing refrigeration units to keep flowers fresh, acquiring initial inventory of flowers and plants, designing and setting up the shop layout, and investing in marketing to attract customers to our new business. We will also need to consider the cost of obtaining any necessary licenses and insurance, as well as funds for staff training to ensure excellent customer service and knowledge about our floral products.

Our revenue assumptions are based on a thorough analysis of the local market demand for floral products, taking into account factors such as seasonal events, weddings, funerals, and the general trend towards home and office beautification.

We expect sales to grow steadily as our florist shop becomes known in the community for its quality, variety, and creative floral arrangements.

The projected income statement reflects anticipated revenues from the sale of floral products and related services, the cost of goods sold (including flowers, supplies, and labor), and operating expenses (rent, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our florist business.

The projected balance sheet will display assets such as our inventory of flowers, leasehold improvements, and equipment, against liabilities including any loans and accounts payable.

It will provide a snapshot of the financial condition of our florist shop at the end of each fiscal period.

Our projected cash flow statement will detail the inflows from sales and outflows for expenses, giving us a clear picture of our financial position and helping us manage our cash to ensure we can meet our financial obligations at all times.

The projected financing plan outlines the sources of funding we intend to tap into to cover our initial setup costs and to support the business until it becomes self-sustaining.

The working capital requirement for our florist shop will be carefully managed to maintain sufficient liquidity for day-to-day operations, such as purchasing fresh flowers, maintaining inventory levels, and covering payroll.

The break-even analysis will show us the volume of sales we need to achieve to cover all our costs and begin generating a profit.

This will be a critical milestone for our business, indicating when it can be considered successful.

Key performance indicators for our florist shop will include the gross margin on floral arrangements, the inventory turnover rate to measure the efficiency of our stock management, and the customer satisfaction level to gauge the quality of our service and products.

Monitoring these indicators will help us ensure the financial health and success of our florist shop.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a florist shop .

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How To Write a Business Plan for Flower Shop in 9 Steps: Checklist

By henry sheykin, resources on flower shop.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Welcome to our blog post on how to write a business plan for a flower shop! If you've been dreaming of starting your own floral business and want to make it a reality, then you're in the right place. The floral industry has been experiencing significant growth in recent years, with a market size of over $34 billion in 2020, and is projected to continue to grow at a CAGR of 6.8% from 2021 to 2028. Now is the perfect time to seize the opportunity and create your own online flower shop.

Before diving into the steps of creating a business plan, it's crucial to understand the market you'll be entering. Identifying your target market will help you tailor your offerings and marketing strategies to appeal to the right customers. Conducting thorough market research will provide valuable insights into consumer preferences, trends, and demands.

When starting any business, it's essential to be aware of the competition. Analyzing your competitors will help you identify their strengths and weaknesses, allowing you to differentiate your flower shop. By determining your unique selling proposition, you'll be able to offer something that stands out from the crowd and attracts customers.

Setting clear business goals and objectives will provide a roadmap for your flower shop's success. Consider both short-term and long-term goals, such as achieving a certain revenue target within the first year or expanding your product offerings in the future. These goals will guide all your actions and decision-making processes.

Financial planning is a critical aspect of any business. Create a budget that accounts for expenses such as inventory, marketing, website development, and employee salaries. Securing financing, whether through personal savings, loans, or investors, is often necessary to cover initial costs.

Pricing your floral arrangements properly is crucial to ensure profitability while remaining competitive. Analyze your costs, overheads, and market prices to develop a pricing strategy that reflects the value you offer while appealing to your target market.

As an online flower shop, you'll need reliable suppliers to provide you with fresh, high-quality blooms. Identifying potential suppliers and establishing relationships with them is essential. Look for small batch growers across the country who offer fresh, seasonal blooms that align with your farm-to-accent approach.

Last but not least, make sure you familiarize yourself with any legal and regulatory requirements related to running a flower shop. This may include permits, licenses, zoning regulations, and compliance with health and safety standards. Taking care of these legal aspects will ensure smooth operations and avoid any legal complications down the line.

By following these steps and crafting a detailed business plan, you'll be well on your way to launching a successful online flower shop. So get ready to celebrate beauty and bring joy into people's lives with fresh, farm-to-accent floral arrangements!

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered legal, financial, or professional advice. Consult with a business advisor or attorney for specific recommendations tailored to your unique business and location.

Identify Your Target Market

Before starting a flower shop business, it is crucial to identify your target market. Understanding your potential customers and their preferences will help you tailor your products and marketing efforts to attract and retain them. Here are some important steps to identify your target market:

• Research demographics: Begin by researching the demographics of your local area. Consider factors such as age, gender, income level, and lifestyle. This information will help you determine the type of customers who are more likely to be interested in your farm-to-accent floral arrangements.
• Identify customer needs and preferences: Conduct surveys, interviews, or focus groups to gain insights into what potential customers look for in a flower shop. Understand their preferences for flower types, colors, arrangements, and pricing.
• Analyze existing customer data: If you already have an existing customer base, analyze their purchasing behavior, preferences, and feedback. This data can provide valuable information about who your target market may be.
• Consider seasonal trends: Flowers are often associated with special occasions or holidays. Analyze the seasonal trends and identify peak periods when your products are likely to be in high demand.

Tips for Identifying Your Target Market:

• Utilize free online tools like Google Analytics or social media insights to gather data on your target audience.
• Stay updated with industry trends and changes in consumer preferences to refine your target market strategy over time.
• Consider conducting market research surveys or focus groups to gather direct feedback from potential customers.

Identifying your target market is the first step towards developing a successful business plan for your flower shop. By understanding who your customers are and what they desire, you can tailor your offerings to meet their needs and increase the likelihood of building a loyal customer base.

Conduct Market Research

Once you have identified your target market for your flower shop, it's important to conduct thorough market research to gain valuable insights into the industry and competition. This will help you make informed decisions and develop effective strategies for your business.

When conducting market research, start by gathering information on the current floral industry trends, customer preferences, and purchasing habits. This can be done through surveys, interviews, or analyzing existing data available from market research firms. Understanding the market trends and consumer demands will help you position your flower shop effectively and offer products that cater to your target audience.

Next, analyze your competition. Identify other online flower shops or local florists in your area and assess their strengths, weaknesses, and pricing strategies. This will help you identify gaps in the market and differentiate your business by offering unique products or services.

Tips for conducting market research:

• Define your research objectives: Clearly outline what you want to achieve through your market research, whether it's understanding customer preferences, analyzing market trends, or identifying the competitive landscape.
• Utilize online resources: Make use of industry reports, online databases, and social media platforms to gather relevant information about the floral industry and consumer behavior.
• Survey your potential customers: Create online surveys or conduct focus groups to gather firsthand feedback from your target audience. This will help you understand their preferences, expectations, and any pain points they may have in the current market.
• Stay updated with industry news: Subscribe to industry publications, attend trade shows, and join relevant online communities to stay informed about the latest trends, technological advancements, and opportunities in the floral industry.

By conducting comprehensive market research, you will gain a deeper understanding of your target market, competition, and industry landscape. This knowledge will serve as a foundation for developing a successful business plan and executing effective strategies to grow your online flower shop.

Analyze Your Competition

One crucial step in writing a business plan for your flower shop is to thoroughly analyze your competition. Understanding the strengths and weaknesses of your competitors will enable you to develop strategies that set your online flower shop apart in the market.

Start by identifying the key players in the online flower delivery industry. Take note of their business models, target markets, product offerings, and pricing strategies. This information will help you assess the current competitive landscape and identify opportunities for differentiation.

Here are some important points to consider when analyzing your competition:

Product Range:

Pricing strategy:, delivery options:, customer experience:, marketing and promotion:.

By thoroughly analyzing your competition, you will gain valuable insights that will shape your business strategies. Remember, the goal is not to copy what others are doing but to identify gaps and opportunities that can differentiate your online flower shop, setting it apart from the rest.

Determine Your Unique Selling Proposition

One of the most crucial steps in writing a business plan for a flower shop is determining your unique selling proposition (USP). Your USP is what sets your online flower shop apart from the competition and makes it compelling to customers. Here are some important considerations when determining your USP:

• Identify your niche: Start by identifying the specific niche or target market you want to serve. In this case, you could focus on customers who value farm-to-accent floral arrangements and are looking for fresh, seasonal blooms sourced from small batch growers.
• Highlight what makes you unique: Think about what unique features or characteristics your online flower shop has that differentiate it from your competitors. Is it the wide variety of flowers you offer? The convenience of the subscription floral box plan? Or the personalized and custom designs offered through your florist service?
• Consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to better understand your business's unique strengths and weaknesses.
• Research your competitors to see what they offer and how you can differentiate yourself.
• Gather customer feedback and testimonials to showcase what makes your online flower shop stand out.

By determining your unique selling proposition, you can effectively communicate your value proposition to potential customers and establish a strong brand presence in the floral industry. Your USP will become the foundation for your marketing strategies and will help attract and retain customers in a competitive market.

Define Your Business Goals And Objectives

Before diving into the world of flower shop ownership, it's crucial to define your business goals and objectives. This step will help guide your decision-making process and provide direction for the overall growth and success of your online flower shop. Here are a few key considerations to keep in mind:

• 1. Determine your revenue targets: Clearly establish how much revenue you aim to generate within a specific timeframe, whether that's monthly, quarterly, or annually. This target will serve as a benchmark for measuring your progress and success.
• 2. Identify growth opportunities: Outline the areas in which you want your flower shop to grow. This could include expanding your customer base, introducing new product offerings, or even scaling your operations to reach a wider market.
• 3. Establish customer satisfaction goals: As a business owner, customer satisfaction should be high on your list of priorities. Set specific goals related to customer feedback, reviews, and retention rates to ensure that you are constantly striving to exceed expectations.
• 4. Focus on brand development: Consider what you want your brand to represent and how you want it to be perceived by your target market. Outline goals related to brand positioning, image, and recognition to guide your marketing efforts and build a strong brand identity.
• Ensure your goals and objectives are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
• Regularly review and update your goals to reflect changes in the market or your business circumstances.

Defining your business goals and objectives will provide you with clarity and a roadmap for success as you navigate the exciting world of owning an online flower shop. It will help you stay focused, make informed decisions, and ultimately achieve your desired level of growth and profitability.

Create A Budget And Secure Financing

One of the crucial steps in starting a flower shop is creating a budget and securing financing. Proper financial planning is essential to ensure the smooth functioning and growth of your business. Here are some important considerations to keep in mind:

• Estimate your startup costs: Begin by estimating the initial costs required to set up your online flower shop. This includes expenses such as website development, inventory, packaging, marketing, and legal fees.
• Outline your ongoing expenses: Apart from the initial costs, you should also plan for ongoing expenses like rent, utilities, employee salaries, and marketing campaigns. It is important to account for these recurring costs to avoid any surprises later on.
• Identify potential sources of financing: Depending on the scale of your flower shop, you may need external funds to support your business endeavors. Explore different financing options such as small business loans, personal savings, or seeking investors.
• Create a detailed financial projection: Develop a comprehensive financial projection that includes sales forecasts, income statements, and cash flow projections. This will help you analyze the financial feasibility of your flower shop and present a convincing case to potential investors or lenders.
• Seek professional advice: If you are new to financial planning, consider consulting with a financial advisor or an accountant who specializes in small businesses. They can provide valuable insights and guidance to help you create a realistic budget and secure the necessary financing.
• Remember to include a contingency fund in your budget to account for any unforeseen expenses or emergencies that may arise.
• Consider researching government grants or programs that may be available for small businesses in the floral industry.
• Prepare a convincing business plan that outlines your financial needs, demonstrates market potential, and showcases your expertise in the flower industry. This can be instrumental in securing financing from lenders or investors.

By carefully planning your budget and securing appropriate financing, you lay a strong foundation for the success and growth of your online flower shop. Remember, financial stability is key to ensuring the sustainability and profitability of your business.

Develop A Pricing Strategy

Developing a pricing strategy is an essential step in creating a successful business plan for your flower shop. Your pricing strategy will determine how much you charge for your products or services, ensuring that it is competitive in the market while still generating enough profit for your business.

Here are some important considerations when developing a pricing strategy:

Research your market:

Calculate your costs:, consider your target audience:, set competitive yet profitable prices:, regularly evaluate and adjust:.

Developing a sound pricing strategy is crucial to the success of your flower shop. By understanding your market, considering your costs, and catering to your target audience, you can set competitive prices that not only attract customers but also ensure the sustainability and profitability of your business.

Identify Potential Suppliers And Establish Relationships

Identifying potential suppliers and establishing strong relationships with them is crucial for the success of your flower shop business. Here are the key steps to take:

1. Research and Identify Potential Suppliers: Start by conducting thorough research to identify potential suppliers who can provide you with the fresh, seasonal flowers you need. Look for local flower growers, wholesalers, and distributors who align with your business values and offer a wide variety of blooms.

2. Evaluate Supplier Reliability: Once you have a list of potential suppliers, evaluate their reliability. Consider factors such as their track record, reputation, delivery schedules, and ability to consistently provide high-quality flowers. You can check online reviews, ask for references, or even visit their farms or facilities to get a firsthand understanding of their operations.

3. Compare Pricing: Compare the prices offered by different suppliers to ensure you get the best value for your money. While it's important to consider cost-efficiency, remember that quality should also be a top priority when selecting suppliers for your flower shop.

4. Establish Relationships: Once you have identified reliable and cost-effective suppliers, it's time to establish strong relationships with them. Reach out to them personally, either through phone calls or emails, to introduce yourself and express your interest in working together. Building personal connections with your suppliers can lead to better communication, trust, and potential advantageous terms in the future.

5. Communicate Expectations: Clearly communicate your expectations, requirements, and any specific preferences regarding the flowers you want to source. For example, you may prefer working with suppliers who offer organic or sustainably grown flowers. By setting clear expectations from the beginning, you will ensure that your suppliers understand your needs and can meet them accordingly.

• Consider attending industry trade shows or events to network with potential suppliers and learn more about the latest trends in the floral industry.
• Establishing relationships with local flower growers can help you support your community and provide your customers with unique, locally sourced blooms.
• Regularly communicate with your suppliers to stay updated on their offerings, availability, and any changes that may impact your business. Maintaining open lines of communication will strengthen your relationships and help you make informed business decisions.

Remember, selecting the right suppliers and establishing strong relationships with them is an ongoing process. Regularly evaluate their performance, stay informed about industry trends, and remain open to exploring new partnerships to ensure your flower shop's success.

Consider Legal And Regulatory Requirements

When starting a flower shop, it is crucial to consider the legal and regulatory requirements that apply to your business. Ensuring compliance with these requirements will help you avoid potential legal issues and fines, and establish a strong foundation for your business's success.

First and foremost, you need to register your business . Choose a legal structure for your flower shop, such as a sole proprietorship, partnership, or limited liability company (LLC), and register it with the appropriate government agencies. This will provide you with a legal entity and protect your personal assets.

Tips for Registering Your Business:

• Research the specific registration requirements in your locality or country.
• Consult with a lawyer or accountant to ensure compliance with legal obligations.
• Obtain any necessary licenses or permits for operating a flower shop.

To legally operate your online flower shop, you will also need to comply with local zoning laws . Check with your local authorities to determine if there are any zoning restrictions or permits required for running your business from a specific location, whether it is a commercial space or your home.

Tips for Complying with Zoning Laws:

• Ensure that your chosen location is zoned for retail or commercial activities.
• Familiarize yourself with any restrictions regarding signage, parking, or operating hours.
• Consult with a lawyer or local authorities to ensure compliance.

In addition, it is important to understand the tax obligations associated with running a flower shop. Register for a tax identification number, and consult with a tax professional to ensure you are aware of all the applicable taxes and how to properly file your business taxes.

Tips for Managing Taxes:

• Keep detailed records of all business income and expenses.
• Set up a system to track sales tax if required in your jurisdiction.
• Consider consulting with an accountant or tax professional for guidance.

Lastly, familiarize yourself with any regulations regarding shipping and handling of fresh flowers . Ensure that you comply with any restrictions or requirements imposed by shipping carriers or agricultural authorities to avoid any issues with the transportation and delivery of your floral arrangements.

Tips for Shipping and Handling:

• Follow proper packaging guidelines to maintain the freshness and quality of your flowers during transit.
• Check for any restrictions on shipping certain types of flowers or plants to different locations.
• Stay informed about any changes in shipping regulations or requirements.

By considering and complying with the legal and regulatory requirements , you can ensure that your flower shop operates within the bounds of the law, and provide a safe and reliable service to your customers.

Writing a business plan for a flower shop requires careful consideration of your target market, competition, unique selling proposition, business goals, and budget. By conducting market research, analyzing your competition, and identifying potential suppliers, you can ensure a successful launch and growth of your online flower shop. With a well-defined pricing strategy and a focus on providing fresh, seasonal blooms from small batch growers, your business can thrive in the competitive floral industry. Utilizing social media and a user-friendly website will help promote your business and provide a seamless customer experience. Don't forget to consider legal and regulatory requirements to ensure compliance and avoid any potential issues. By following these nine steps, you can create a solid business plan for your flower shop and set yourself up for success.

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Flower Shop Business Plan Sample

JUN.09, 2018

Florist business plans for your own flower business

Are you planning to starting a flower shop business ? Floriculture is profitable business to venture in when planned properly. The history of floriculture industry began back in 1800 in England where flowers were grown on large scale on estates. Today, growing of flowers as greatly changed and have been embraced by many people across the world. For instance, in 1950s the flower growers in the United States was less than US $3billion. In 1992, this figure had increased to US$100 billion. In 2003, the global trade for flowers had tremendously increased to US$101 billion. According to reliable sources, the floral industry grows more than six percent annually. Venturing into the floral industry is definitely a great idea, but it needs proper planning and finances to make in the flower shop business plan . With this flower shop business plan, you will have a clear picture on what it required of you to succeed in the industry. Flowers are loved by many and with the right customer target, you are in for business.

Executive Summary

2.1 the business.

The flower shop will be registered using the name Kate’s Blossoms and will be situated in Seattle, Washington. The shop will be owned and managed by Kate Spencer who is an experienced florist.

2.2 Management Team

Kate Spencer owner and manager of Kate’s Blossoms is an expert florist who has worked extensively in the flower industry for over a decade. During her career, Kate worked for high profile and flower shops across United States. Considering her extensive, it wasn’t difficult for her to open a flower shop business .

2.3 Customer Focus

Before beginning a flower shop, it is essential to have an in-depth understanding of your flower market and statistics. Kate’s Blossoms plans to set up its shop in a strategic location with plenty of people traffic. Customers are anyone who is a flower enthusiast or keen on purchasing some flowers for different reasons.

2.4 Business Target

Prior to s tarting a flower shop business , Kate went through a couple of flower shop business ideas , so as to make the right decision. Kate’s Blossoms intends to offer different types of flowers for various occasions to a wide range of customers visiting the shop. Kates’s Blossoms plans to find a creative marketing approach to survive competition and get good market.

Florist Business – Company Summary

3.1 company owner.

Kate Spencer is an experienced florist specialist with a successful career journey in the flower industry. She has also majored in flower farming and attained excellent floral certification in her career. Having worked for various famous shops and companies across the United States, she has an immense understanding of the procedures required for starting a flower shop business . With this experience and knowledge, Kate is positive that the launching of the flower shop with go as planned and customers will start visiting the shop soon to make purchases.

3.2 Aim of Starting the Business

The modern society presenting flowers as a gift to friends and loved ones has become a tradition and for this reason, the demand for flowers has gone up. The fact that flowers are beautiful and yet affordable, is the reason why many people prefer using them for expression. With the flower trend as a tradition across the United States, Kate thought it was the right time for starting a flower shop business  to address market needs.

3.3 How the Business will be Started

With over 10 years’ experience in the flower industry, Kate Spencer enjoys a massive experience in the industry. For this reason, she has a keen understanding on what it required to start the flower business. After carefully studying local flower shop market trends, Kate has worked closely with experts to come up with a comprehensive financial analysis. In addition, she has invested to have an in depth flower shop business plan that will cover all sectors required to set up the floral shop. A good marketing plan will be greatly helpful to market the business to reach as many people as possible in Seattle, Washington and across the United States.

Most flower shops aim at providing a wide range of flower products and services.

A Floral Services for Customers

Unlike small flower shops who only sell flowers to individuals, Kate’s Blossoms floral shop will focus on availing flower products and related services to different types of people and go a step further to offer customized flowers in accordance to customer preferences. Kate’s Blossoms intends to provide a wide variety of floral services to different customers. When planning on opening a flower shop business , you should survey the market and determine what customers are looking for. In this case, Kate’s Blossoms intends to offer the following products at its Seattle floral shop:

• Offer bouquets with flower arrangements to make each occasion memorable.
• Offer floral settings and table setting, wedding receptions, corporate events and ceremony venues.
• Provide floral consultation services to help a customer choose the flowers that complement the theme and style of their occasion.
• Offer exquisite floral arrangement for the perfect finish.

To open a flower shop and make it successful depends on the creativity and diversifying consumer products. This is why it’s essential to come up with a realistic and competitive florist business plan .

Marketing Analysis of Florist Businesses

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The flower industry is raking in impressive numbers and for this reason, businesses venturing into the industry are witnessing fast growth and high profitability. However, when coming up with a business plan for flower shop , it’s essential to do your homework well. With each passing day, new flower shops continue to emerge in Settle, Washington. Understanding your local market is key to give you intimate knowledge of local trends. Many floral shops are working hard to meet the growing demand for flowers and a creative customer oriented approach is required to make your flower shop dream come true. A good floral shop should be in a position to offer fresh and healthy different types of flowers to potential customers.

5.1 Market Segment

In order to ensure Kate’s Blossoms to meet its obligations, the flower shop will focus on selling various flower products and services. The aim it to introduce a wide array of services that are exclusively associated with Kate’s Blossoms. A good flower shop business plan sample should be in a position to identify potential customers for the flower shop business plan . Kate’s Blossoms will basically reach out to anyone who’s interested in flower and services being offered. After extensive market research, the flower shop has identified the following customers to patronize the facility.

5.1.1 Individuals

One of the biggest markets for Kate’s Blossoms is individuals who love flowers. The concept of buying flowers for personal use has been embraced by many people across United States. For instance, some people buy flowers to keep in their house for beauty or other could get rose flowers for a loved one to express their feelings. During special occasions such as Mother’s Day, Valentine’s Day or Father’s Day to mention but a few people tend to buy flowers more compared to normal days. According to many florist business plans , statistics indicate that Americans spent $31.3 billion on floriculture in 2015. The growth witnessed in the floral industry has been attributed to an increasing number of people embracing the flower giving lifestyle. This flower shop business proposal sample is designed to focus on reaching out to current flower enthusiasts in a bid to encourage them to try out different types of bouquets arrangements.

5.1.2 Corporates

This group consists of customers who are looking to hosting events that require some floral arrangements. This group consists of people drawn from various corporates and firms from various professional and industries looking for a flower shop provide top notch arrangement for the perfect finishing touch or completely transforming a space. Once in a while, corporates usually host parties and events and require a professional to handle the arrangement. Kate’s Blossoms, wishes to target these kind of events to provide floral services as well as table setting. The business will provide a conducive environment for your planned event for your flower shop business plan partners, employees and potential business partners to meet, exchange ideas, celebrate and socialize. Seattle is a big city with a lot of companies that hold events once in a while. For this reason, Kate worked on the perfect plan on how to start a flower store business plan that will target these corporates for frequent gigs.

5.1.3 Weddings

Weddings happens all the time across Seattle city. One of the main requirements to have a beautiful wedding receptions are flowers. Most couples when planning for a wedding they want to deal with a company that provides top notch flower service to make their day memorable. According to the sample business plan for a flower shop, Kate’s Blossoms intends to focus on couples planning a wedding to provide over the top flower arrangement for their special day. The flower shop will give couples the options to choose the flowers they want so as to get a customized service. Today, people getting married are willing to spend a considerable amount of money to grace their occasion with beautiful flowers and table setting. The flower shop business plan example plans to invite potential couples to visit the floral shop to look at previous successful work and benefit from experts advice.

5.1.4 New Mothers

Presenting a bouquet of beautiful flowers to a new mother is always a heart melting action. Kate’s Blossoms floral shop business plan will focus on targeting people having new mothers in their lives to spoil them with some flowers. New mothers will also be a business target when it comes to baby arrangements. These flower arrangements will be arranged depending with the gender of the child. For instance if it’s a baby girl, a mixture of daisies and pink roses can be arranged in a basket to celebrate the birth of a new baby girl. In another instance, a baby boy can get an arranged bouquet of yellow Asiatic lilies, green pompons and blue delphinium.

5.2 Business Target

Everyone wants to become part of the floral culture and Kate’s Blossoms has an excellent opportunity to launch its services on the market. Settle is a large city and the floral shop intends to set up in a strategic location with high human traffic. In order to boost revenue, the flower shop plans to offer a diversified product range of services for its customers. With a good strategic business plan flower shop in place, Kates’s Blossoms hopes to achieve a 28-35% increase in annual sales.

5.3 Product Pricing

When planning how to open your own flower shop, it is necessary to do a market study and compare product prices from competitors. You should also make use of free flower shop business plan ideas available in the internet to have helpful information on how to run a successful floral business. When it comes to pricing the services, a proper research needs to be carried out to come up with attractive packages. Given the increasing number of flower shops, Kate’s Blossoms is keen to have competitive pricing in order to stay afloat and compete favorably with other industry players. The business will also capitalize on introducing awesome packages that are not be offered by other flower shop to attract even more customers.

The flower industry is experiencing rapid growth as giving of flowers as a form of gift becomes more predominant. With more people and corporates keen on finding a sensitive and beautiful way to express themselves, the of floral shops has drastically increased and there is need for Kate’s Blossoms to find the best strategic plans of how to open up a flower shop business and remain relevant in a fast growing industry.

6.1 Competitive Analysis

Kate’s Blossoms plans to come up with business model that will sustain business operations and ensure customers enjoy superior quality products. There are other flower shops in the city but the business has identified strategies to help it remain ahead of competitors.

6.2 Sales Strategy

For the flower shop to attain its sales goals, the following strategies have been identified to help market the business.

• Organize a grand party for the entire neighborhood to introduce the flower shop to customers. During the event, offer customers free coffee and snacks for them to show them what the flower shop business plan s to offer.
• Offer training sessions to keep staff up to date about the latest floral services available in the flower shop. Doing this empowers staff to convince customers why they should spend their money on various flower services and products.
• Embrace SMS text messaging as a way to retain clients and build long-term customer relationships and loyalty
• Place signage at strategic points within the customer target areas to create awareness and market the flower shop.
• Come up with loyalty plan that see loyal customers enjoy goodies from the floral shop and remain committed clients
• Advertise the flower shop on local media channels such as radio, newspapers and television
• Use social media channels such as Facebook, Twitter and Instagram to market the flower shop

6.3 Sales Forecast

To achieve its targets, Kate’s Blossoms has formulated a sales forecast to demonstrate how the floral shop will perform when it starts operations. Before you venture into how to start a floral design business, you have to have a comprehensive flower shop business plan with achievable goals. Kate Spencer has the right information on how to start a flower shop and believes the business will be the best in Seattle.

Personnel Plan

High quality business plan and professional support.

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

Kate’s Blossoms hopes to employ well trained and experienced personnel to run the operations of the flower shop on a daily basis. According to many floral business plans , the business costs should include a personnel budget to enable the business have an idea how much it will spend on salaries.

7.1 Personnel Plan

Kate’s Blossoms is owned by Kate Spencer who will also be the manager of the flower shop. As preparations are put in place for the business to open doors to the public, the following staff will be employed in the flower shop.

Owner/Manager Operation Manager 2 Marketing Executives 1 Cashier 2 Cleaners 6 Florists

Successful applicants will be undergo training to familiarize themselves with flower shop operations to boost productivity and performance. The flower shop business plan s to encourage everyone to work as a team for smooth day to day operations.

7.2 Salaries

Kates’s Blossoms plans to compensate its members of staff the following salaries within the first three years of operation. If you are planning on how to start my own flower shop business , paying your employees a competitive package should be among your priorities to motivate them.

Financial Plan

Kate’s Blossoms has come up with a detailed financial plan that will guide the operations of the flower shop. Initial capital and business expenses need to be well-defined in the flower shop business plan template . In this flower shop business plan , Kate Spencer will finance the flower shop business plan assisted by two investors. A bank loan will be secured to help finance budget deficiencies. When it to how to start a floral business , you shouldn’t be afraid to seek help form experts to come up with a comprehensive financial plan. If you are wondering on how to start your own flower shop and make it successful, you will need to come up with an awesome flower shop business plan that will guide you to achieving your goals.

Below is important financial data for Kate’s Blossoms.

8.1 Important Assumptions

Financial forecast for Kate’s Blossoms shall be based on the assumptions below.

8.2 Brake-even Analysis

The Brake-even Analysis for Kate’s Blossoms is shown in the graph below.

8.3 Projected Profit and Loss

8.3.1 monthly profit.

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

Profit and Loss Analysis for Kate’s Blossoms is shown below.

8.4 Projected Cash Flow

Below is a summary of pro forma cash flow, subtotal cash received, subtotal cash spent on operations, subtotal cash spent and subtotal cash from operations.

Download Florist Business Plan Sample in pdf

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Home How to Write & Structure an Impressive Flower Shop Business Plan Blog How to Write & Structure an Impressive Flower Shop Business Plan

How to Write & Structure an Impressive Flower Shop Business Plan

A business plan is often the first impression you will make when asking others for an investment or a loan. It shows you have thought things through and have a clear plan for running a successful business. But it’s not just for investors – it can also help guide your business and keep you accountable.

Starting a business requires making many decisions. A plan forces you to think about important questions up front, like your target customers, your products and services, your brand, marketing strategy, finances, and more. It helps ensure you don’t overlook important details that could cause problems down the road.

Writing a plan takes time but pays off. It increases your chances of getting funding if needed. And it gives potential partners or employees confidence that you’re serious and know what you’re doing. Most of all, it improves your odds of success.

Executive Summary

The executive summary is basically a one-page overview of your entire plan. You want it to be compelling enough that readers want to learn more by diving deeper into the other sections.

Start with an eye-catching introduction that gets people excited about your shop’s mission. Then, provide a high-level overview of your target market, products/services, marketing strategy, and financial projections in order that readers understand the key elements at a glance. End with a closing statement so as to motivate readers to keep reading.

Keep it brief yet engaging. This is not the place for details – save those for later sections. The goal is simply to hook readers and pique their interest so that they will want to explore the rest of the plan.

Company Description

Here is where you will provide more background on your flower shop in order that readers fully understand your vision and mission.

Describe the type of products/services you will offer, your target customers, and your business structure (sole proprietorship, partnership, etc.). Also discuss any competitive advantages like unique arrangements, quick delivery, or specialization in certain flowers/occasions so that readers understand what differentiates you.

You may want to include details like your shop’s location/size, hours of operation, and number of employees so as to paint a clear picture. A brief company history can work here too if you are taking over an existing shop rather than starting from scratch.

Keep it focused yet vivid. Help readers envision what visiting your store will be like through vivid yet professional language.

Market Analysis

This section is all about proving there is demand for your flower shop’s offerings within your target market. Break down the following:

• Size and scope of the overall flower industry so readers understand the size of the market opportunity. Cite sources for any statistics.
• Characteristics and spending habits of your target customer in terms of demographics like age, income level, location, and psychographics like interests and values so as to show you understand who your ideal customers are.
• Current and future trends in the floral industry in order that readers are confident your shop aligns with where the market is headed. Things like rising online sales or demand for unique floral arrangements.
• Analysis of your direct competitors so that readers see you have objectively assessed both the strengths and weaknesses of similar local shops. This shows you have done thorough research.
• Explain how your offerings differ and provide competitive advantages in order that your shop will successfully meet the needs of customers better than rivals.

Include reliable sources to support your points and paint a clear picture of demand and so that readers are convinced there is room in the market for your business.

Operations Plan

In this section, outline the operational details behind running your shop day-to-day so as to demonstrate you have planned efficiently.

Describe things like your production process from order receipt through delivery and any technology or equipment needs. Detail your inventory management system and how you will source flowers from wholesalers to ensure sufficient stock at all times.

Discuss your employee roles and talent needed, and whether you plan to hire additional people as the business scales. Outline your customer service approach emphasizing quick turnaround and personalization so that readers understand how customers will experience your shop.

Include any licenses or permits required, insurance considerations, and compliance with relevant regulations. Paint an organized, efficient operational model thereby showing readers your business will run smoothly from the start.

Marketing Strategy

Here is where you will spell out precisely how you will attract customers and build your brand. Start with your USP (unique selling proposition) and positioning statements then back it up with specific tactics.

Discuss your target customers again briefly and objectives like customer count, order volume, and retention goals. For tactics, emphasize things like:

• Online presence through your website and social profiles
• Flyers, newspaper ads, or other traditional local promotions
• Partnerships with local businesses for cross-promotions
• Networking and community involvement
• Creative visual merchandising in-store
• Targeted direct mail, email campaigns, or loyalty programs

Explain why each tactic was chosen, the timelines for rolling them out, and how you’ll measure their effectiveness in order to optimize over time. Provide costs along with rationale for budgets and resources needed. Paint a complete picture of consistent, data-driven marketing so that your shop is top-of-mind in the community.

Financial Plan

Numbers bring it all together – so be thorough yet accessible here. Provide 3-5 years of financial projections including:

• Start-up costs like equipment, inventory, deposits, and how those will be funded whether from your own capital or financing
• Monthly profit and loss projections, factoring in expenses like rent, supplies, payroll, and projected sales growth
• Cash flow forecast showing when money comes in vs. flows out
• A breakeven analysis demonstrating when sales will cover costs
• 3-year projected balance sheets and income statements
• Assumptions used like expected sales per month, cost of goods, market penetration pace

Discuss any outside capital needed beyond your own investment if starting from scratch. Provide financial benchmarks so readers understand milestones for success. The goal is to prove your shop will be profitable and that funds/approval will be well-spent.

Include any supporting details here:

• Industry data, market research reports, and consumer surveys backing up your analysis
• Resumes of owners and key employees to instill confidence
• Copies of licenses/permits already obtained
• Letters of support from future partners, suppliers, and customer testimonials
• Photos, diagrams of shop layout, ads, website designs, sample products

Anything extra that supports your requests but is not central to the narrative. This section rounds out your diligence for skeptical readers.

Finalizing and Presenting

• Proofread thoroughly for typos, grammatical errors, or inconsistencies before presenting. Have others review as well.
• Use section headers, bold text, and bullet points to enhance readability and articulate your ideas clearly
• Consider professionally designing/formatting the final copy for visual appeal
• Verbally walk investors/stakeholders through the plan page-by-page so they understand and see your passion! Be prepared for questions.
• Use this opportunity to build rapport and gain support for your vision through enthusiasm, meticulous preparation, and confidence in your concepts.

The Conclusion

A strong business plan takes work but pays off. While creating a thorough business plan is vital for securing necessary approvals and funding, you will also need the right tools to efficiently run daily operations once your flower shop is up and running.

That’s where a florist point-of-sale (POS) system comes in. Hana Florist is a customizable POS software created specifically for flower shops that will allow you to manage your inventory, process orders, handle customer profiles and payments, generate invoices and reports, and more from any internet-connected device. Contact us today!

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When the flower shop where she worked closed, Amy McManus figured she could open her own in the Baltimore neighborhood of Canton, which lies along the city’s outer harbor. It didn’t faze her that she had only three years of retail floral experience.

“This was an opportunity,” McManus tells NerdWallet. “I needed something at that time in my life that was exciting.”

McManus had no clue how to run a shop. But she developed a business plan for Crimson & Clover Floral Design with help from a counselor at SCORE, the SBA-backed nonprofit that offers free mentoring to small businesses. She learned on the job, constantly referring to her business plan in the early years. She ran into frustrations and obstacles, including zoning issues and trouble with a lease. But today, McManus has attracted a local following for her design work at events and weddings. The retail shop is also doing well at a bigger location in a newer part of the city, McManus says.

Starting and operating a profitable floral shop isn’t all about smelling the roses. As with many retail businesses, technology has changed the way people buy flowers. The margins can be thin on some orders, and inventory management can be difficult because flowers are perishable.

“This is a tough business,” says Paul Goodman, president of Floral Finance Business Services in Jenks, Oklahoma. “Not many people make much money because it doesn’t get big enough or it isn’t run well.”

Still, the floral business can pay off.

You can earn a salary — including taxes and benefits — worth 10% of annual sales of up to $500,000, Goodman tells NerdWallet. For sales above half a million, tack on another 5%. On top of that, you can also earn 10% in profit off the bottom line if you manage your business well, he says.

So let’s say you run a shop generating $500,000 in yearly sales, you can take $50,000 in salary and another $50,000 in profit.

A retail floral shop generates on average $362,318 in annual revenue, according to the Society of American Florists, a trade group that represents growers, wholesalers and retail florists. But the majority of florists most likely bring in $200,000 or less in annual sales, Goodman says. That would add up to $20,000 in salary and a possible $20,000 profit.

A flower business doesn't require a lot of seed money

Getting started in the floral business doesn’t have to require much capital. That’s because you can start the business at home with a large cooler, Goodman says. You buy flowers from wholesalers. Then you’ll need accessories including vases and ribbons and other items such as pruning equipment. Depending on the city or state, you may also need to obtain a trader or reseller license.

If you’re opening a storefront, however, you’ll need $30,000 to $50,000, Goodman says.

To compare financing options, NerdWallet has created a comparison tool for small-business loans . We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

When she was starting up in 2003, McManus obtained a $60,000 Small Business Administration loan from the Columbia Bank in Maryland to open her 600-square-foot shop. In the early days, she also used her credit cards to restock her flowers. “You have to buy them every single week,” she says. “You don’t want to have an empty cooler because you’re a new store. Why would they come back in?”

Opening a store also means hiring employees. If you don’t have the experience, or just have no desire, to handle the creative aspects of the business, you’d hire a designer to create floral arrangements. Because you can pick up a bouquet practically anywhere, be it the corner store or the supermarket, design is becoming more important for a business, Goodman says.

Although there is no industry certification or license requirement, you can become a certified floral designer or an accredited member of the American Institute of Floral Designers, a trade group that oversees both certification processes. That certification or accreditation can cost as much as several thousand dollars.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Wire service pros and cons

Most retail florists belong to at least one of the major three floral wire services: FTD, Teleflora and BloomNet, a subsidiary of 1-800-Flowers.com. You pay a monthly fee, and you may also have to pay a one-time joining fee, depending on the wire service.

Wire services facilitate orders between florists nationally and internationally. Say a customer in Manhattan wants to send flowers to a friend in California. The florist in New York uses a wire service to connect with a florist in California to complete the order. Each florist gets a cut of the order, with the receiving florist taking a bigger share. The wire service takes a small commission as well.

Joining a wire service can provide an additional revenue source for your floral shop. But in some cases, it may not make financial sense. That’s because wire services are also e-commerce marketers, taking orders directly from consumers and then filtering them to local florists.

Steven Rosenberg, owner of Superior Florist in New York, says the e-commerce platforms take at least a 27% cut on orders, leaving little to no profit for florists. His shop fills very few wire service orders as a result, he says. "I’m losing my shirt” on those orders. So, he says, many florists won’t fill them — “I’m one of them.” Rosenberg is a member of Real Local Florists, a trade group that educates florists and urges consumers to shop local.

You have other options besides wire services.

McManus, for instance, works with BloomNation , a marketplace for local florists. BloomNation also provides technology tools to help florists run their businesses online.

The Santa Monica-based startup was founded three years ago to help local florists increase sales and stay in business, says David Daneshgar, co-founder at BloomNation .

If you sign up with the marketplace, which has 3,000 florists in its network, you get to keep 90% of sales.

Ray Le Du, a florist with BloomNation and co-owner of Blue Water Flowers in New York, says he has noticed a difference in business. “My slow days aren’t as slow as they once were. I would credit that to the BloomNation presence on the Web and getting orders that I may not have gotten before.”

After operating her store for seven years, McManus moved into another location in 2010, more than doubling her space. She now employs three people.

Although opening a store may not make sense for every florist, it was the right move for McManus. The new location in Baltimore’s Roland Park generates a lot of business, she says. And it works for them, McManus says, because “we’re selling an experience.”

Resources for budding entrepreneurs

NerdWallet has info on money-saving online legal tools for advice on the legalities of starting a business and gaining lower-cost access to an attorney.

The Society of American Florists has a business resource page for retailers. As a member, you have access to education workshops, networking events and sales and marketing support, says SAF membership manager Brian Walrath.

The American Institute of Floral Designers provides certification and education. It oversees the CFD and AIFD certification process .

For information on floral wire services, check out Teleflora , FTD and BloomNet .

Real Local Florists was created in 2011 to support and promote local florists.

Teleflora publishes “The Profit Minded Florist: A Financial Startup & Operating Guide for Retail Florists.” It was first published in 1987 and written by Paul Goodman. The latest revision was released in 2011.

On a similar note...

BUSINESS STRATEGIES

How to start a flower business in 7 steps

• Jeremy Greenbaum
• Oct 30, 2023

Are you drawn to the beauty of flowers, have a flair for creative floral design, and enjoy making moments special for others? Embark on a fulfilling journey by starting your own flower business. This comprehensive guide will walk you through the process, from creating an engaging business website to providing valuable insights for success in the floral industry.

What is a flower business?

A flower business is a service-based enterprise that specializes in selling and arranging flowers for various occasions, such as weddings, birthdays, anniversaries, and corporate events. As a flower business owner, you will work closely with clients to understand their floral needs, create stunning arrangements, and deliver beautiful bouquets to brighten their special moments.

This type of business has a significant presence in the gifting industry and play a vital role in enhancing celebrations and expressing emotions. By providing fresh and beautiful floral designs, flower businesses bring joy and beauty to people's lives.

Why start a flower business?

The U.S. flower industry brings in over 9 billion annually as of 2022 and offers numerous opportunities for aspiring entrepreneurs. It’s also a universally appealing product. In fact, 73% of Americans say they have a high appreciation of flowers and 88% say that giving flowers makes them happy.

Can a flower business be profitable?

A flower business can be profitable if managed effectively. However, like any business, success depends on various factors such as market demand, competition, location, pricing strategy, product quality and marketing efforts. You need to take all your expenses into account to calculate your potential net profit .

How to start a flower business

Starting a flower business involves several essential steps. By following these steps, you can establish a strong foundation for your business and set yourself up for success:

Define your flower business model

Create a comprehensive business plan

Register your business and obtain necessary permits

Source suppliers and establish relationships

Set up your flower shop or online presence

Build a professional portfolio and inventory

Develop pricing packages and marketing strategies

01. Define your flower business model

Decide on the type of flower business you want to establish. Consider options, such as a retail flower shop, an online flower delivery service, a floral business from home, an event-focused floral design or a combination of these models. Define your target market, including individuals, businesses—or both—to guide your business strategy.

02. Create a comprehensive business plan

Develop a detailed business plan that outlines your goals, target market analysis, marketing strategies, pricing structure, financial projections, and operational plans. You’ll also want to create a detailed financial forecast, including how you plan to raise money for your business , monthly operating expenses , revenue projections and profitability analysis. These documents will serve as a roadmap for your flower business and guide your decision-making process. For more details, check out our guide on how to create a flower business plan .

Once you've written your business plan, write a concept statement to outline your vision.

03. Register your business and obtain necessary permits

Choose a compelling name for your business using powerful AI tools like Wix’s business name generator. Then, register your business as a legal business entity and obtain any required licenses or permits, such as a seller's permit for sales tax collection.

04. Source suppliers and establish relationships

Research and establish relationships with reliable flower suppliers. Connect with local flower farms, wholesalers, or distributors to ensure a consistent supply of fresh flowers. Negotiate pricing and delivery terms to maximize your profit margins.

05. Set up your flower shop or online presence

If you plan to open a physical flower shop, secure a suitable location and set up your shop space. Consider factors such as foot traffic, visibility and accessibility. Alternatively, if you plan to operate primarily online, make a website using a user-friendly website creator like Wix. Showcase your floral offerings, provide an online ordering system after you've built your eCommerce site and integrate secure payment options to sell via an eCommerce model.

06. Build a professional portfolio and inventory

Create a portfolio showcasing your floral designs and arrangements. Invest in a diverse inventory of flowers, greenery, vases and other floral supplies. Develop relationships with reliable vendors who can provide a wide range of floral options and specialty items.

07. Develop pricing packages and marketing strategies

Create pricing packages for your floral arrangements based on factors such as size, complexity, and flower selection. Develop effective marketing strategies to promote your flower business. Utilize online platforms, social media marketing, local advertising, and networking to reach your target audience and build brand awareness.

Tips for managing your flower business effectively

Managing and promoting your flower business effectively is crucial for sustainable growth and client satisfaction. Here are five key steps to effectively manage your flower business:

Streamline operations and logistics: Develop efficient processes for order management, inventory control, flower care, arrangement creation and delivery. Utilize floral management software or tools to track orders, monitor inventory levels and streamline workflow. Regularly evaluate and optimize your operations for improved efficiency.

Provide exceptional customer service: Focus on delivering exceptional customer service by understanding your clients' needs, providing personalized recommendations and ensuring timely and professional communication. Pay attention to details and go the extra mile to exceed your clients' expectations.

Maintain quality and freshness: Ensure the quality and freshness of your floral arrangements by sourcing high-quality flowers, practicing proper care and handling techniques and regularly refreshing your inventory. Implement quality control measures to ensure that each arrangement meets your standards before it reaches the client.

Nurture relationships with suppliers and clients: Build strong relationships with your flower suppliers to secure a reliable and consistent supply. Cultivate partnerships based on trust and open communication. Similarly, establish connections with your clients and maintain regular contact to nurture loyalty and encourage repeat business.

Implement effective marketing strategies: Utilize various marketing channels to promote your flower business. Leverage social media platforms like Instagram and Facebook to showcase your floral designs, engage with your audience and run targeted ad campaigns. Utilize email marketing to reach out to your existing clients and offer special promotions or discounts.

Tips for promoting your flower business

No flower business can thrive without a strong marketing strategy. Here are some quick tip to make sure you're promoting your business effectively:

Strong branding: Make sure to keep your branding intentional and consistent. Use Wix’s logo maker to create a logo that you can feature in all of your digital assets. Check out these boutique logo ideas for inspiration.

Professional photography: Invest in professional photography (or learn how to create a photographer business plan and do it yourself) to capture the beauty of your floral arrangements. High-quality images will attract potential clients and enhance your online presence.

Social media engagement: Regularly post engaging content on social media platforms to showcase your floral designs, share behind-the-scenes moments and interact with your audience. Encourage clients to tag your business and share their experiences with your arrangements.

Collaboration with local businesses: Partner with local event planners, wedding venues, photographers and other vendors in the event industry. Collaborate on styled photo shoots, cross-promote each other's businesses or offer special packages together.

Online reviews and testimonials: Encourage satisfied customers to leave reviews and testimonials on your florist website , social media platforms or review websites. Positive reviews build trust and credibility for your flower business.

Benefits of starting a flower business

Beyond the statistics, here are some more reasons why starting a business in the flower industry could be a great opportunity:

Creative expression: Running a flower business allows you to express your creativity through floral design. You have the opportunity to create unique arrangements, explore different flower combinations, and bring your artistic vision to life.

Diverse clientele: Flower businesses cater to a wide range of clients, including individuals, event planners, hotels and businesses. This diversity provides opportunities to work on various types of events and expand your network.

Low startup costs: Compared to many other businesses, starting a flower business can have relatively low startup costs. You can start small, gradually expand your offerings, and invest in additional resources as your business grows.

Networking opportunities: As a flower business owner, you have the opportunity to collaborate and build relationships with local event planners, wedding venues and other vendors in the event industry. These collaborations can lead to referrals and additional business opportunities.

Challenges of running a flower business

While starting a flower business can be exciting, it's important to be aware of the challenges that come with it. Here are some common challenges you may face:

Seasonal nature: The flower business is highly seasonal, with demand fluctuating throughout the year. Managing inventory, meeting peak demands during holidays and ensuring a consistent supply of fresh flowers can be challenging.

Perishable nature of flowers: Flowers are perishable products that require careful handling and storage. Ensuring proper care and maintaining the freshness of flowers is crucial to delivering high-quality arrangements to clients.

Competition: The flower industry is highly competitive, with numerous local florists, online flower delivery services and supermarkets offering floral arrangements. Standing out from the competition requires creative designs, exceptional customer service and strategic marketing.

Operational logistics: Managing inventory, sourcing flowers from suppliers, arranging deliveries and coordinating with clients can be complex and time-consuming. Efficient logistics and effective communication are vital to ensure smooth business operations .

Set your floral business up for success

Here are some tips on how to set your floral business up for success:

Have a clear vision for your business. What kind of floral business do you want to have? What are your goals? Once you have a clear vision, you can start to develop a plan to achieve your goals.

Do your research. Learn about the floral industry and your target market. What are the trends in the industry? What are the needs and wants of your target market?

Develop a strong brand identity. Your brand identity is what will set your business apart from the competition. It should be consistent across all of your marketing materials and customer interactions.

Invest in high-quality products and services. Your customers expect fresh, high-quality flowers and arrangements. Make sure to invest in the best products and services possible.

Provide excellent customer service. Customer service is essential for any business, but it is especially important in the floral industry. Your customers should feel valued and appreciated from the moment they contact you to the moment they receive their flowers.

Market your business effectively. There are many different ways to market your floral business. Use a variety of methods to reach your target market, such as social media, print advertising and public relations.

Build relationships with other businesses. Networking with other businesses in your community can help you to generate referrals and cross-promote your services.

Stay up-to-date on the latest trends. The floral industry is constantly evolving, so it's important to stay up-to-date on the latest trends. This will help you to offer your customers the most popular and innovative products and services.

Running a floral business from home

Running a floral business from home can be a great way to reduce costs and have a more flexible work schedule. However, there are a few things you need to keep in mind to ensure your success.

Find a dedicated space for your business. This could be a spare bedroom, basement or even a garage. The space should be well-ventilated and have plenty of natural light. You will also need to invest in some basic equipment, such as a refrigerator, worktables and floral tools.

Get the necessary permits and licenses. The requirements will vary depending on your location, so be sure to check with your local government. You may also need to purchase business insurance.

Develop a business plan. This will help you identify your target market, your unique selling proposition and your financial projections. Your business plan should also include a marketing strategy.

You need to source your flowers and supplies. There are many different suppliers to choose from, so be sure to compare prices and quality. You may also want to consider buying flowers in bulk to save money.

Build a customer base. This can be done through networking, advertising and social media. You can also offer discounts and promotions to attract new customers.

How to start a business in a specific state

If you're looking to start a flower business in a specific state, here are some helpful links:

How to start a business in Missouri

How to start a business in Illinois

How to start a business in Ohio

How to start a business in Oregon

How to start a business in Tennessee

How to start a business in Wisconsin

How to start a business in Georgia

Don’t see your chosen state here? You can use the search bar in the Wix Blog to find all the information you need.

Examples of flower businesses on Wix

Flowers4Change Foundation : Flowers 4 Change is committed to making the world a happier place one flower at a time. Join the movement by simply buying a flower or bouquet and giving it to someone. Before you give away your flower, be sure to take a photo and tag them on Instagram @flowers4changefoundation.

Sherwood Roots : Located in Plain City, Ohio, Sherwood Roots is a local flower farm offering hand-wrapped bouquets, flowers and flower subscriptions.

The Putnam Market : The Putnam Market is a one-stop-shop offering fresh flower arrangements for every occasion. They also offer fresh flower delivery and sell subscriptions .

How to start a floral business FAQ

Where do florists make the most money.

Florists tend to make the most money in large metropolitan areas with a high population density. This is because there is a greater demand for flowers and floral arrangements in these areas.

Other factors that can affect a florist's income include the type of flowers they sell, the types of services they offer and their marketing strategy.

How do I become a self-made florist?

How do florists make money, how do i become a successful florist, more business ideas you can pursue.

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Learning center series

Fundamentals of a flower shop business plan

• Published on February 16, 2024
• Last updated: 2 weeks ago

Remember sinking your hands into grandma’s rich soil, nurturing Thriving Petunias that ended up blossoming much like your childhood spent in her nurturing company? Operating a flower shop can provide a similar sense of accomplishment and fulfillment, if – and only if – one navigates beyond the rocky shoals of a turbulent business landscape to the safer shores of steadily growing profits.

Disturbing yet true – a lot of flower shops wilt away prematurely, deprived of essential business plan nutrients. But fear not! Through this piece, we’re extending that vital lifeline, a raft in the stormy seas – fundamental building blocks of a robust floral business plan. Indeed, a comprehensive florist business plan is your greenhouse, ensuring that your flower shop not only survives but thrives in the competitive market.

We’ll handhold you through steps that will pave your path toward fostering flourishing businesses amid a blooming profusion of fragrant roses, lively lilies, and cheerful chrysanthemums. By implementing innovative marketing, optimizing your supply chain , and focusing on customer satisfaction, your flower shop will blossom into a vibrant, profitable venture.

So let’s set sail, shall we?

Florist business plans for your own flower business

How can I start my flower store business? Floricultural businesses can be profitable if they are correctly planned and executed. The floriculture industry was first founded in England in 1800 and floral plants have been grown on large estates. Today flower growth is greatly modified and is widely adopted worldwide. 

US Flower Industry In the 50's flower industry in America was around $23 billion. In 1993, the amount wholesale flower markets was estimated at 100 billion. The flower trade was up a staggering amount at 100 billion dollars worldwide.

Essential Components of a Flower Shop Business Plan

Forget the confusing jargon and the lengthy textbook definitions of creating a business plan. We believe they are all about three major things – an executive summary, a solid company description, and a sharp outline of products/services. Grasping these three fundamentals paves the way to crafting a comprehensive business plan whether it’s for a flower shop or any other venture.

Executive Summary

This is your business plan’s elevator pitch. Pour your heart out. But, remain concise, and precise, yet compelling enough to grab your reader’s attention. An executive summary provides a broad overview of your flower shop, stating the type of business, its goals, and how these goals are to be achieved.

Remember, the knack of crafting an effective one lies in its ability to generate interest and make your audience – usually investors or lenders, want to dig deeper into your plan.

Company Description

Now that you’ve grabbed your reader’s attention with a stellar executive summary, it’s time to delve in and narrate your business’s story. This section gives the lowdown on your company, including its structure, location, and unique selling proposition. Your company description should encapsulate what sets your flower shop apart from others.

Check and ensure you’ve detailed all the necessary parts. For instance, stating your company structure might involve specifying whether you’re a sole proprietorship or a limited liability company – small details but incredibly crucial.

Location is more than just a physical address. Delve into why you’ve chosen it and the benefits it brings. Lastly, unleash your floral shop’s ‘special sauce’. What makes your flower shop the go-to for people’s botanical needs?

Products and Services

“A flower shop sells flowers, what more to discuss?”   Wrong . Explaining your products and services goes beyond the general. You’ll want to detail every product you hope to sell and each service you plan to offer.

Your product offering could range from flowers to plant accessories – the sky is the limit, but make sure it’s outlined here. Including the pricing and sourcing information could add immense value to your plan. This level of detail helps paint a clear picture of your offerings and aids in planning your operations, inventory, and financial projections.

Different Business Models Considering different models of flower shops , such as an online-only setup or a mobile flower cart, can cater to various customer needs and expand your market reach. The online model focuses on digital sales with no physical store, targeting customers who prefer shopping online. On the other hand, a mobile flower cart serves busy city districts, offering convenience and accessibility.

Why Business Plans Are Important?

Writing business plans can be very valuable to your business. You could see business plans as an effective blueprint for your business operations concerns. There are many reasons why business planning strategies are vital to running successful businesses, including:

Market Analysis for a Flower Shop Business Plan Template

TL;DR What do You Need to Write an Impressive Flower Shop Business Plan: Understanding the current and prospects of the flower shop industry Importance of discerning and grasping the target market The significance of competitive analysis for differentiation

Industry & Market Analysis

Flower Market Outlook for 2024 to 2034 The cut flower industry is estimated to be valued at US$ 39,596.9 million in 2024. The market is expected to reach  63,887.5 million by 2034  at a 4.9% CAGR during the forecast period.

Yet, it’s important to note that the industry didn’t remain unaffected by the tectonic shifts brought about by the pandemic and changing consumer preferences.

The backbone of the flower shop industry rests on two crucial factors – product freshness and aesthetic appeal. With the rise of e-commerce, retail flower shop businesses must now also navigate the steep learning curve of digital marketing tactics, including SEO, social media marketing, and website optimization. Metrobi is dedicated to enhancing the efficiency and reliability of delivery operations, allowing flower businesses to focus more on these essential aspects while ensuring their customers receive the best product experience.

Looking forward, the market is expected to see a steady rise in B2C e-commerce and mobile flower carts, showing potential for forward-thinking flower business owners. Metrobi offers innovative delivery solutions tailored for these emerging flower business models to seamlessly connect them with their customers.

Now, more than ever, agility and adaptation will be crucial for survival and growth in the flower shop industry.

Target Market

Every business, including floral services, and perhaps especially a flower shop, must identify its target market. A common misconception is that the target market for this industry is unisex and pertains to all age groups. However, knowing your target market goes beyond such surface-level demographic segmentation. It’s more about uncovering the psychographic and behavioral characteristics of potential customers.

For instance, is your ideal customer someone who prefers luxury blooms for romantic gestures and holidays, or is it a corporate client looking for large-scale decorations for events? By zeroing in on the specific pain points, priorities, and purchasing habits of your target market, you can tailor your offerings to cater precisely to them – in terms of the products, pricing, promotions, and even the shop’s location.

Competitive Analysis

To create differentiation in a saturated market, it’s vital to hold a finger on the pulse of the competitive landscape. The competitive analysis involves stepping into the shoes of your customers and comparing your shop with others on various parameters – price, product quality, variety, service, and even store ambiance.

This exploration provides valuable insights into what’s already working in the market, what gaps exist in terms of unmet customer needs or underserved segments, and what unique value proposition could help your flower shop bloom amidst the thorns.

Conducting a SWOT analysis – evaluating strengths, weaknesses, opportunities, and threats of your business and the competition – can be a helpful starting point in building a stand-out strategy. Remember that your competitors can also be a rich source of learning and inspiration.

A robust competitive analysis can steer the business towards a unique and profitable niche, ultimately helping in customer retention and attracting new patrons.

Financial Projections in a Flower Shop Business Plan

Learn to project revenue realistically with mathematical accuracy

Understand the importance of accurately forecasting expenses, crucial for the flower shops’ profitability

Discover the essence of a profitability analysis to ascertain the viability of your flower shop business

Revenue Projections

A flower shop’s lifeblood is its revenue. It’s vital to forecast potential income accurately, veering on the side of realism. This helps to set realistic business goals, strategize effectively, and mitigate risks associated with cash flow. At Metrobi, we aid flower businesses by managing their delivery operations, offering delivery services across more than 20 US cities, including providing courier services in Denver .

Revenue projections can be calculated by determining the number of flower arrangements you expect to sell per month and at what average price. You can also consider the peak seasons such as Valentine’s Day and Mother’s Day, where demand tends to dramatically increase.

Remember that revenue projections are educated guesses. You should continually revisit and adjust these projections as your business grows and market conditions change.

Expense Forecast

Running a flower shop involves a multitude of expenses, which if not accounted for, can determine the ability of profitable business to turn a profit. A meticulous expense forecast is hence fundamental to the financial planning of your business.

This forecast should account for both fixed and variable costs. Fixed costs for a flower shop include the rental fee for the premises, salaries, and insurance. Variable costs include seasonal inventory, shipping charges, and utilities.

An accurate expense forecast requires thorough research and careful tracking of ongoing expenses and aids in making informed decisions about pricing and profitability.

How Much Should I Spend on ADS? On average, a small business in the United States might spend around $9,000 per year on advertising,  with strategies ranging from print ads and flyers to online advertising, which offers targeted options at a lower cost.

Profitability Analysis

To determine the viability of a flower shop, it’s essential to conduct a profitability analysis. This will clearly show whether your revenue will ultimately cover your expenses and provide an income to your business.

Applying a simple profitability equation to flower arrangement – subtracting your total costs from your total revenue – could reveal whether your flower shop business would be profitable in the long run. To improve profitability, you could explore ways to expand revenue streams or find efficiencies to reduce costs.

It’s prudent to perform profitability analysis regularly so that changing market dynamics, customer preferences, and other variables can be factored in.

How Much does it cost to have a flower shop? Utility costs for a flower shop are estimated  at $650 per month , highlighting the importance of energy-efficient practices to reduce expenses.

Marketing and Sales Strategy for a Flower Shop

The make or breaK of a successful flower shop rests on a robust marketing and sales strategy.

Enriching yourself with a full-bodied marketing plan will launch your business into the public eye.

Mastering your sales strategy skyrockets profits by enticing customers to spend more and more often.

Marketing Plan

In the digital age, without visibility, a business is as good as non-existent. The fuel to ignite your flower shop’s growth is a comprehensive marketing plan, bridging both online and offline strategies.

This visual representation highlights various aspects of marketing, such as social media, SEO, email marketing, in-store promotions, local community events, and traditional advertising. Each segment is color-coded and labeled, demonstrating how these strategies come together to form a cohesive marketing plan.

Online Marketing Strategy

In our digital-first world, an online presence is imperative. Whether through social media platforms, email newsletters, or by maintaining a compelling website, the shopping experience should be as captivating as your flower shop.

Offline Marketing Strategy

While digital may be king, traditional marketing strategies still hold a place in the chess game of business strategy. Print ads, business partnerships, and pop-up markets are just a few ways to garner local attention and reach your community.

Sales Strategy

If the marketing plan paints the big picture, the sales strategy is the brush that finely details the revenue model. An effective sales strategy is an efficient and focused approach to increasing your flower shop’s revenue.

Understanding Customer Needs

Firstly, engaging in meaningful interactions with customers will help you understand their needs, motivating them to spend more. You could recommend complementing products or informing them about current promotions, enticing them to make larger purchases.

Creating a Unique Selling Proposition

Moreover, your flower shop needs a few unique selling points and propositions to stand out from the competition. This could be anything from offering same-day delivery, unique floral arrangements, or outstanding customer service.

Regular Training for Sales Staff

Training sales staff and keeping them updated about new offerings and trends is a pivotal aspect of a successful sales strategy. Knowledgeable staff influences customer purchases and improves their overall experience.

In conclusion, combining a strong marketing and florist business plan with a solid sales strategy forms the backbone of a successful flower shop, and it could indeed be the key to preventing your business from joining those that do not survive.

Now, onto turning ideas into action.

How Many Small Businesses Survive through the 1st year? About 1 in 5 U.S. businesses fail within their first year of operation, according to the latest data from the  U.S. Bureau of Labor Statistics (BLS).

Operational Plan for a Flower Shop Business

Detail the core components of a flower shop operation plan.

Bridge the gap between marketing and actual flower shop operations.

Reinforce your understanding of business plan fundamentals.

Staffing Plan

Understanding your staffing needs in a flower shop can significantly impact your operational success.

Labor is a key contributor in a business, particularly in a flower shop where delicate care and passion for flowers are paramount. A well-thought-out staffing plan helps your business operate efficiently, improves service quality, and enhances customer satisfaction.

First, you need to define the roles and responsibilities of your team. This streamlined structure ensures every staff member knows their duties, preventing task duplication and encouraging efficiency.

Each role in a flower shop has different duties and responsibilities. From sourcing to creating beautiful flower arrangements to managing the store; all these roles are vital for the smooth running of the shop. Illustrating an effective staffing plan can provide a solid foundation for your shop operations, ultimately leading to customer satisfaction and increased turnover.

Typical roles found in a flower shop:

1. Shop Manager

Key Responsibilities: Manages the security of the shop, handles cash and banking, addresses HR issues, oversees daily accounting and reporting, manages stock, and runs the store on a day-to-day basis.

2. Experienced/Senior Florist

Key Responsibilities: Engages in stock management activities, provides training, creates floral products, and delivers customer service.

3. Junior/Trainee Florist

Key Responsibilities: Prepares materials such as care packs, boxes, and ribbons, assists in making floral products, and offers customer service.

4. Admin Assistant

Key Responsibilities: Manages and accepts orders, handles customer queries, and provides customer service.

Key Responsibilities: Delivers products, plans delivery routes, conducts quality checks, and marks orders as delivered.

Key Responsibilities: Creates traditional and tailor-made floral arrangements, advises clients on plant care and flower combinations, packages flowers, and coordinates deliveries.

Each role requires specific skills and qualifications. For example, florists should have a high school diploma and demonstrable experience or completion of a botany-related course, showcasing their familiarity with plants’ nutritional needs and life spans, as well as their ability to handle and arrange flowers.

Supply Chain Management

Managing the flow of goods is crucial for any business, but for a flower shop, it comes with its own set of challenges. Flower products are highly perishable; hence, efficient supply chain management is critical to ensure product freshness and quality. Metrobi facilitates this by offering delivery services across more than 20 US cities, including a courier service specifically in Washington DC , aiding flower businesses in maintaining the pristine condition of their products during transit.

When sourcing flowers, consider factors like the kind of flowers, the quality, the cost, and the time of supply. The supply chain continues through the shop where it’s your responsibility to maintain flower quality until it finally reaches the customer. A well-managed supply chain reduces product losses, ensuring steady income for your business.

Furthermore, swift supply chain management fosters strong relationships with your suppliers, vital in negotiating better prices and maintaining a steady flow of quality flowers. A stable supply chain equals steady business operations and customer satisfaction.

Store Layout and Design

A flower shop isn’t just a business. It offers an immersive sensory experience for your customers. Much like your carefully crafted flower arrangements, the layout and design of your store play an enormous role in attraction and customer retention.

A store that’s warm, inviting, and easy to navigate facilitates easy customer movement while displaying your best offerings. Strategic layout and design can transform a casual shopper into a loyal customer.

For instance, placing your freshest and most colorful blooms in inaccessible and visible spots ensures your customers are drawn into the store and are more likely to make a purchase.

Subtle touches like pleasant fragrances, beautiful botanical bits, and proper lighting can also enhance the overall shopping experience, leaving customers satisfied and eager to return.

Innovative Interior Designs : Some shops have adopted unique design elements that stand out.  For example,  incorporating elements inspired by visuals from iconic movies or specific themes can create a memorable shopping experience. Lighting, color schemes, and layout can all contribute to the store's overall ambiance, making it more inviting for customers.

Why a Business Plan is Crucial for a Flower Shop

A business plan is your blueprint for managing risks

It’s the key to securing the needed funding

Guides your flower shop’s growth and development

Risk Management

A business plan might seem like a run-of-the-mill routine requirement when opening a flower shop. However, skipping this step could be risking the survival of your enterprise. It’s an indispensable tool for managing risks effectively.

Business environments are inherently unpredictable. Markets, competition, and even customer behavior are all subject to change. These changes might bring along unseen challenges and threats. The role of a business plan here is to envision variations in circumstances, identify potential hazards, and devise strategic actions to mitigate those risks.

A well-articulated business plan will guide you through both the calm and stormy weather, ensuring the sustainability of your flower shop. By addressing areas such as competition analysis, market research, and financial projections, you’re able to foresee risks and strategically place your business to handle any eventuality.

Securing Funding

Apart from managing risks, another significant advantage of a robust business plan is its potential to attract the necessary funding to fuel your flower shop’s operations and growth.

Investors and lenders alike are looking for promising business plans – ones that speak volumes about the viability and profitability of your flower shop. The onus is on your business plan to convey the assurance that their money will yield the expected returns. A business plan is therefore not an optional accessory, but a prerequisite for your funding pitch.

A comprehensive business plan elucidates your business proposition in a style that speaks to the investor’s curiosity and doubts. It shows your understanding of the market, products and services, operations, the management team, and overall strategy to achieve the business objectives – thereby painting a more convincing picture of your flower shop’s growth and profit potential.

Guiding Growth

Finally, the third fundamental importance of a business plan lies in its ability to guide the growth of your flower shop. As businesses expand, losing track of the initial vision and objectives is easy.

A business plan serves as a compass that keeps your flower shop aligned with its mission, steering the direction of growth. It sets the objectives, outlines strategies, defines the key performance indicators, and allows for identifying and correcting any deviations from the plan.

More so, it helps manage change effectively by providing a structure for deciding on when and how to implement growth strategies – be it expanding your product range, targeting a new market, or even moving to a larger location.

The business plan needs constant updating to reflect the changing business environment and adjust the beam to the shifting targets. It’s important to remember not to view the business plan as a static document but as a dynamic guide that evolves with your flower shop.

Common Mistakes in Flower Shop Business Plans

Some business downfalls are not due to bad luck, but rather unfortunate errors in planning. Here are some of the mistakes that can turn your rose-tinted financial projections into thorny realities:

Overestimated income and underestimated expenses

Skipped or inadequate market research

The absence of a detailed marketing and sales strategy

Unrealistic Financial Projections

One common pitfall that many prospective flower shop owners fall into is crafting an unrealistic financial plan. It’s not unusual for budding entrepreneurs to be overly optimistic about their revenue projections while simultaneously underestimating their expenses.

An accurate financial plan reflects realistic sales forecasts, costs of goods sold, and overheads. Overestimating your income might seem enticing, but when the reality doesn’t meet expectations, the result can be disastrous.

Likewise, a budget that underestimates expenses will quickly encounter a cash crunch. This will force you to look for additional funding, and that might not come easily or cheaply. Thus, a solid business plan relies on realistic financial projections that balance optimism with the harsh realities of starting a new venture.

Operational Expenses Forecast : This includes projecting costs related to Cost of Goods Sold (COGS), employee salaries and wages, rent, utilities, and other running costs. An effective financial plan manages these expenses carefully to ensure they do not exceed a certain percentage of sales, ideally keeping  COGS below 50% of sales .

Insufficient Market Research

Neglecting thorough market research is another prevalent mistake in business plans. Hunches and assumptions aren’t enough when it comes to understanding your target customers and the competition.

A comprehensive market research process should include a clear picture of your target demographic, buying habits, preferences, and needs. It’s equally crucial to understand your competition, what they’re doing right, and where there are gaps that your shop can fill.

Without this foundational knowledge, your flower shop runs the risk of entering a market it doesn’t fully understand – a quick recipe for failure.

Lack of Clear Marketing and Sales Strategy

Too many flower shop business plans lack a clear marketing and sales strategy. Having a unique product or service is not enough on its own; your potential customers need to understand why they should choose your flowers over others – this is where a clear marketing strategy comes into play.

A well-defined marketing and sales strategy includes a plan for how you intend to attract and retain customers. Whether that involves digital marketing, direct mail, partnerships with local businesses, or hosting events, it should clearly illustrate how you will draw customers in and entice them to purchase.

Digital Marketing Strategies:

Showcase Expertise : Build trust by demonstrating your knowledge and skills in floral arrangement through blogs, social media posts, and behind-the-scenes content.

Leverage Social Media and Video : Use platforms like Instagram for engaging content and live videos to connect with customers. Video marketing can significantly increase engagement and provide valuable information in an entertaining format.

Personalized Marketing Efforts : Tailor marketing messages based on customer preferences for a more personalized shopping experience, which has been shown to increase the likelihood of purchases.

Online Presence : Utilize Pinterest to display your floral arrangements and ensure your website is well-designed, informative, and updated regularly to improve SEO and customer engagement.

Paid Ads and Reviews : Consider using Google Ads to target local customers and encourage satisfied customers to leave positive reviews on platforms like Yelp to enhance credibility and attract new business.

Remember, while a vision for your flower shop is vital, translating that vision into a tangible business plan involves more than just wishful thinking. It requires a clear understanding of the financial realities, comprehensive market research, and a well-thought-out marketing strategy. Avoid these common pitfalls to set your flower shop up for blooming success.

Keeping Petals in Business: Fundamentals Revisited

Having a clear business plan, understanding your target market, and having a pricing strategy are the hallmarks of long-lasting, successful flower shops. An unbudging focus on customer service isn’t a maybe, it’s a must.

Consider these strategies your seeds – you’ve got what it took to survive. Now, it’s time to focus on growth, profitability, and standing out in the highly competitive floral industry.

Take a moment to digest this blueprint. Review your business plan today. Are you maestros at matching the flowers to the customer? Is your pricing strategy strategic? Do your customers leave beaming about the superior service, every time?

Keep in mind, that a thriving flower shop is about more than bouquets. You’re a trusted part of life’s significant moments. So, are you ready to put these fundamentals to work? Every blossoming flower shop started as just seeds in the dirt. Yours isn’t any different.

Remember, successful businesses don’t bloom overnight. Water gradually, check the condition of the soil regularly, and never neglect the sunlight. Every petal counts

Why you need a comprehensive florist business Plas

Cultivating success: Growth strategies for a profitable flower shop

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How to Start a Flower Shop

Starting a flower shop can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful flower shop.

Importantly, a critical step in starting a flower shop is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Flower Shop :

• Choose the Name for Your Flower Shop
• Develop Your Flower Shop Business Plan
• Choose the Legal Structure for Your Flower Shop
• Secure Startup Funding for Your Flower Shop (If Needed)
• Secure a Location for Your Business
• Register Your Flower Shop with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Flower Shop
• Buy or Lease the Right Flower Shop Equipment
• Develop Your Flower Shop Marketing Materials
• Purchase and Setup the Software Needed to Run Your Flower Shop
• Open for Business

1. Choose the Name for Your Flower Shop

One of the first things you need to do prior to opening a flower shop is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own flower shop:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your own shop.

2. Develop Your Flower Shop Business Plan

One of the most important steps in starting a flower shop is to develop your flower shop business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your flower shop.
• Company Overview – this section tells the reader about the history of your flower shop and what type of flower shop you operate. For example, are you a standalone flower shop, a flower section in a grocery store or supermarket, or a floral department in a general merchandise store?
• Industry Analysis – here you will document key information about the floral industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your flower shop? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your flower shop make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your flower shop.

Next you need to choose a legal structure for your flower shop and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the flower shop owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a flower business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a flower shop include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a flower shop is that it offers limited liability to its owners. This means that the flower shop owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your flower shop, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Flower Shop (If Needed)

In developing your flower shop business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a flower shop to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a flower shop that they believe has high potential for growth.

5. Secure a Location for Your Business

When opening a floral business, you’ll need to find a good location for your shop. Here are some tips on how to find the right spot:

• Look for a high-traffic area with plenty of foot traffic. This will help ensure that you get a lot of customers walking in your door.
• Try to find a spot that’s close to other businesses, especially other retailers. Being centrally located in a cluster of businesses in the same area can draw in more customers.
• Make sure the space is big enough to accommodate your flower shop. You’ll need room to display your flowers, as well as space for your employees to work.

These are some good things to look for when scouting out a location. If you follow these tips, you’ll find a great place for your flower shop before long.

6. Register Your Flower Shop with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your flower shop’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your flower shop to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

A business license is required to start a flower shop. Other permits and licenses may be required depending on the state in which you operate the business.

Nearly all states, counties and/or cities have license requirements including:

• General Business License : getting your Articles of Incorporation as discussed above
• Sales Tax License or Seller’s Permit : for selling products
• Zoning Approval : typically at the city or county level, this provides authorization for construction or use of a building or land for a particular purpose
• Fire Department Approval : a process by which the local fire department reviews and approves the installation of a fire alarm system.

10. Get Business Insurance for Your Flower Shop

To operate a floral shop, you need business insurance. This will protect your business in case of accidents or theft.

Other business insurance policies that you should consider for your flower shop include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business such as for delivery of orders, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Flower Shop Equipment

To start a flower shop, you will need some essential equipment. You will need a display case to showcase your fresh flowers, a refrigerator to store perishable items, a sink, and shelving to store supplies. You will also need a cash register, credit card machine, and computer with internet access.

12. Develop Your Flower Shop Marketing Materials

Marketing materials will be required to attract and retain customers to your flower shop.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your flower shop. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional flower shop website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your flower shop.

13. Purchase and Setup the Software Needed to Run Your Flower Shop

The software necessary to run a flower shop includes a point of sale (POS) system, inventory management software, and a website builder. 

The POS system is used to manage transactions within the store, handle customer service issues, and track inventory. This software typically interfaces with equipment in the store such as cash registers and credit/debit card machines. There are several good POS systems available such as ShopKeep, Vend, and Square.

Inventory management software is used to monitor the number of items in stock, backorders, processing time, and deliveries. Some systems are stand-alone while others are integrated within the POS system. There are many different types of inventory software available to meet different needs. Inventory software can be expensive and it is important to compare features and prices before purchasing.

If you want to open an online store, a website builder will be required. There are many companies that provide this service such as Shutterfly, Wix, and Squarespace. These services can provide all the necessary tools for you to create a branded presence online. You can also sell through sites such as eBay, Etsy, or Amazon.

14. Open for Business

You are now ready to open your flower shop. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Flower Shop FAQs

Is it hard to start a flower shop.

No, it's not hard to start a flower shop. You just need to find a good location, have a solid business plan, and make sure you have the capital to get started.

How can I start a flower shop with no experience?

Flower shops are a great business to start if you have no experience. They're relatively low-cost to start, and there's a lot of room for creativity in the design of your shop. You'll need to find a location for your shop, and then stock it with flowers, plants, and related items. You can also offer services such as flower delivery and flower arrangements for special occasions.

What type of flower shop is most profitable?

The most profitable type of retail flower business is a specialty flower shop. Specialty flower shops tend to be more profitable than traditional grocery stores or pharmacies that sell flowers because specialty flower shops typically charge more for their flowers and have lower overhead costs. For example, a specialty flower shop may employ only 1-2 people at the store, whereas grocery stores or pharmacies selling flowers tend to require more employees. As a result, the cost of goods sold (COGS) is also typically lower at a specialty shop.

Because the floral market is highly fragmented, many specialty shops benefit from having little competition in their geographic area. These flower shops can sell items at a higher price point compared to other flower retailers such as those located within grocery stores or supermarkets. 

How much does it cost to start a flower shop?

The initial investment to open a flower shop depends on several factors, such as how elaborate your display cases and other equipment will be. You can expect to pay roughly $8,000 for a minimal setup of just a few basic pieces of equipment. You'll need to purchase a variety of flowers, floral supplies, and equipment. You'll also need to factor in the cost of renting or purchasing a retail space, as well as marketing and advertising your business.

If you are willing to spend about $20,000 to $30,000 on your setup, you can purchase some items outright and finance others using a small-business loan.

What are the ongoing expenses for a flower shop?

In general, the monthly expenses for a flower shop can include the following:

-Rental or lease costs

-Utilities, such as electricity, water, and heat

-Inventory of flowers and plants

-Floral supplies

-Labor costs

-Marketing and advertising expenses

-Business insurance

-Internet and other miscellaneous expenses

How does a flower shop make money?

The flower shop makes money by selling flowers. They may also sell other items, such as cards or vases, but the main source of income is from flowers.

They may also offer services such as flower delivery. To ensure long-term success, local flower shops should distinguish themselves from competitors by choosing a unique product or service to offer.

Is owning a flower shop profitable?

Yes, flower shops are profitable because they offer a product that is in demand for special occasions throughout the year. People need flowers for special occasions such as weddings, anniversaries, birthdays, parties, etc., and flower shops are often the only place to get them. This means that people are willing to pay a premium for flowers, which makes owning a flower shop profitable.

Why do flower shops fail?

There are a number of reasons why many flower shops fail. One reason is that the shop might not be able to compete with the prices of the larger chains. Another reason might be that the shop doesn't have a good marketing strategy. Finally, the flower shop may be located in an area that is out of the way for customers or where there are already a lot of other flower shops.

Other Helpful Business Plan Articles & Templates

• Business Plans Handbook
• Business Plans - Volume 01
• Retail Florist Business Plan

Retail Florist

BUSINESS PLAN

DESIGNS BY LINDA, INC.

378 Martin Luther King, Jr. Bldg. Columbus, OH 74730

June 10, 1991

Designs by Linda is a full-service retail florist providing decorative planning for weddings and conventions, plant maintenance, and plantscaping. Designs is seeking funding to incorporate its new second location into its current successful enterprise. This plan details how funding would assist in the continued growth of the company .

INTRODUCTION

Description.

• MARKETING STRATEGIES

COMPETITION

Application and effect of loan.

The following is the proposed business plan designed to implement the continued growth of Designs by Linda, Inc. This plan was written by its president, Linda Irvin.

Statement of Purpose

The reason for developing this new business plan is to include our second store located in the Martin Luther King, Jr. Building in the University District area of Columbus. We have secured a lease, effective September 27, 1991, in the former location of Wilson & Burton Florist. This space, in the Martin Luther King, Jr. Building, has occupied a full-service retail florist since the building opened 63 years ago.

Our second location is an integral part of Designs by Linda, Inc. The expansion will give us over 1600 square feet of new retail space, 300 square feet of office space, and over 2000 square feet of production and storage. Currently, we have only 650 square feet of usable space in our Phoenix Center store.

We are also negotiating with the management company, Phoenix Center Venture, and with Guido Associates, a leasing company, for more suitable facilities within the Phoenix Center.

At this time, 1240 square feet of retail space on the promenade level, formally occupied by Henry's Horticulturals, should be available after the landlord completes legal proceedings to repossess the space.

Financing Sought

Designs by Linda, Inc. is seeking to secure financing of $100,000 comprising a $75,000 loan and a $25,000 line of credit. The $75,000 loan would be for five years and the money will be repaid from the proceeds of the Fisher building location and the Phoenix Center location. The $75,000 and the $25,000 line of credit will be spent on leasehold improvements, beginning inventory, and debt restructuring. These monies will supplement a cash allowance of $36,600 that Goble, the Martin Luther King, Jr. Building landlord, is supplying Designs by Linda, Inc. for leasehold improvements. A copy of the work letter detailing the cash allowance is enclosed in the appendices.

$45,000 of the loan and $20,000 of the line of credit, along with the $36,600 cash allowance, will give us over $100,000 to open the Martin Luther King, Jr. Building store. This store will enable Designs by Linda, Inc. to more than double our annual sales and will provide us with a facility capable of handling the future growth we plan to produce with our aggressive marketing strategy.

The remaining $30,000 loan and $5,000 line of credit will be used in leasehold improvements at the Phoenix Center location.

Designs by Linda, Inc. is located within the 100 Tower of the Phoenix Center in the former location of the Terra Viridis Plant Boutique.

Designs by Linda, Inc. strives to be one of Columbus's most innovative and unique florists. Our approach to floral design is pure and natural and it explores not only the character of flowers, individually and in combinations, but also the aesthetic relationship between flowers and the setting. We are determined to continue and enhance the tradition of flowers through innovative design, aggressive marketing, and most importantly, quality products and service.

Activities and Services

Designs by Linda, Inc. is a full-service retail florist selling cut flowers, fresh-cut arrangements, silk and dried arrangements, dish gardens, and green and blooming plants. We offer a variety of services such as:

• Decorative planning (including a referral service for caterers and musicians) for conventions, corporate and private parties, weddings, cultural events, and holidays
• Standing floral orders for offices and homes
• Plant maintenance
• Interior and exterior plantscaping
• An AFS floral wire service for out-of-town orders.

Merchandise

In addition to a wide variety of fresh cut flowers and green and blooming plants, Designs by Linda, Inc. sells stuffed plush animals, gift wrapping, greeting cards, ceramics and pottery, crystal and glassware, baby novelties, balloons, and birthday products.

Designs by Linda, Inc. currently maintains eight full-time employees. We supplement regular staff with part-time help as needed for major holidays such as Christmas, Valentine's Day, Sweetest Day, and Secretaries' Week, and for local events such as the Columbus Grand Prix.

Designs by Linda, Inc.'s designers have many years of combined experience in the field of design. In addition to skills required in the floral industry, Designs by Linda, Inc.'s designers have experience in architecture, interior design, graphic design, the fine arts, and hospitality industries. The variety and quality of staff experience and skills strengthens Designs by Linda, Inc.'s ability to provide the customer with a variety of approaches-be it traditional or state of the art- and allows them the versatility to choose the style that fits their own individual tastes.

Hours of Operation

Designs by Linda, Inc.'s business hours are from 8:00 AM to 6:00 PM, Monday through Friday, and from 9:00 AM to 5:00 PM on Saturdays. However, we routinely keep the store open past our normal closing hours if there are customers in the shop.

Business History

Designs by Linda, Inc. is an S corporation and was chartered under the laws of the state of Ohio in September of 1989. Its 50,000 shares, with 500 shares outstanding, are owned by the president, Linda Irvin.

We assumed the existing lease and bought the assets of the Terra Viridis Plant Boutique for $8,000 in February of 1990. Terra Viridis is a plant maintenance company with over 900 accounts in the metropolitan area.

Designs by Linda, Inc. was established as the result of a combination of circumstances. Terra Viridis's owner, William Wilson, was highly motivated to relinquish his lease on the Plant Boutique after losing the Park Place Hotel plant maintenance contract which carried an annual value of $200,000. Without the Park Place contract and with the store's annual sales only totaling $80,000, the Phoenix Center location was not profitable and became a financial burden.

With my years of experience as a floral designer in the metropolitan area and my familiarity with downtown businesses, hotels, and restaurants, I knew my reputation was established and secure enough to support such a venture. In addition, the $8,000 price was very reasonable for a turnkey operation with such a favorable location. All of these factors—the situation of the previous tenant, the sound price, and my professional experience—contributed to the establishment of the store.

First Year Successes

In its first 12 months, Designs by Linda, Inc. brought in over $210,000 in sales, almost tripling the previous tenant's business.

Our projection of $320,000 in sales for the second twelve months, shows an additional increase of over 50 percent.

Future Needs

Although Designs by Linda, Inc. has nearly quadrupled the previous tenant's sales, we believe the existing facility has hampered potential growth. Our current location has no running water and does not have adequate cooler space for the volume of cut flowers we require. Inadequate refrigeration has also impeded our ability to create, display, and sell stock floral arrangements which, with the existing cooler space, we are unable to store. These floral arrangements are used throughout the industry as an important, proven sales tactic.

Designs by Linda, Inc.'s marketing program is geared toward enlarging our customer base, building up corporate accounts, increasing our special-occasion and "cash-and-carry" sales, and expanding our traditional holiday business.

Target Market

The Phoenix Center has over 10,000 people who work in the center and studies show an additional 4000 people, on average, visit the building daily. The Martin Luther King, Jr. Building quotes similar numbers by incorporating residents and visitors of the Martin Luther King, Jr. Building, the University District, Columbus Town Center, the Federal Building, and the Hotel St. Regis — all of which are connected by skywalks and tunnels.

Designs by Linda, Inc.'s secondary market is any hotel, club, restaurant, or conference center in metropolitan Columbus. The expansion of our corporate client base is a priority because businesses generate a consistent sales flow which covers fixed costs.

MARKET STRATEGIES

National marketing.

Designs by Linda, Inc. is a member of the American Floral Marketing Council (AFMC), an independently funded committee of the Society of American Florists (SAF). AFMC's mission is to provide the industry with a marketing program that builds business between holidays when traditionally sales are slow. AFMC conducts a three-tiered program of advertising, merchandising, and public relations which covers the entire United States.

FTD, AFS, and other floral wire services offer national marketing using radio, television, and print media. In addition, these wire services have national spokespersons making public appearances on television talk shows to inform the public of new ways to purchase flowers and plants. These efforts stimulate consumer demand for flowers which translates into additional sales for our store. In order to boost our in-coming wire service orders and build our reputation outside of Ohio, Designs by Linda, Inc. has established an 800 number in our wire service advertisements to attract more business.

Local Marketing

Designs by Linda, Inc.'s local marketing program will utilize many of the national marketing tools, but will employ a more direct approach. By exploiting information gathered in our cash register (we track over eighty different items) and analyzing our sales figures, we identify our problems, take advantage of opportunities, and develop marketing objectives and strategies.

Current Situation

Designs by Linda, Inc. studies the current marketing situation on a daily and monthly basis to analyze trends and identify sources of business growth. Designs by Linda, Inc.'s owners are on hand daily to insure customer service. Our services include products of the highest quality and a prompt response to feedback from customers and clients. Our extensive and highly detailed financial statements, produced monthly, have enabled us to stay competitive and exploit presented opportunities. Copies of our financial statements are available upon request.

Marketing Budget

Our objective in setting a marketing budget has been to keep it between two and five percent of our estimated annual gross sales. Our main marketing "fixed costs" have come from our participation in AFMC and AFS. The remaining marketing programs have been more discretionary. Some examples are:

• Promotion expenses (free gifts for coming in the shop)
• Printed materials (pamphlets, fliers, postcards)
• Media advertisements (radio, newspapers, outdoors)
• Bartering (exchanging our products for ad placement)
• Product donations (door prizes, building promotions, charities)

Marketing Objectives

Our overall goal is to continue to offer excellent quality, service, and value.

Primary Objective

Increase corporate sales by fifteen percent.

Strategy We will use our metropolitan Columbus chamber of commerce to target prospective contacts. We will mail letters to each prospect describing our corporate services. We will follow-up with phone calls and product samples.

Second Objective

Increase standing orders for floral arrangements by 200 percent.

Strategy We will exploit our corporate and hotel contacts which will be our best source for new clients.

Third Objective

Increase overall sales by fifteen percent.

Strategy We will monitor our sales figures and data to confirm that products in demand are well-stocked and slow moving products are phased-out. We will improve telephone skills of employees to boost phone orders.

Fourth Objective

Increase sales for Mothers' Day by ten percent.

Strategy We will advertise with flyers, distributed throughout Phoenix Center offices, in an effort to capture more of the outgoing wire orders. We will decorate the shops early and promote specials.

Fifth Objective

Increase sales for Secretaries Week by twenty percent.

Strategy We will advertise through direct mail campaigns aimed at all offices in the Phoenix Center and in surrounding buildings. Free delivery to local offices will be offered. We will follow-up direct mail campaigns with phone calls to the larger offices. We will coordinate our efforts with The Phoenix Club and other downtown restaurants to promote the holiday.

Sixth Objective

Increase sales of our Christmas decorating services.

Strategy We will set up appointments with prospective clients and follow-up with product samples and photographs of past work.

Seventh Objective

Increase overall sales by 300 percent within a two year period by opening Martin Luther King, Jr. Building location and moving or remodeling Phoenix Center Location.

Strategy We will increase our market share by the tactics listed above. We will also increase our plant maintenance program in order to boost our overall sales. With our increased buying power, we expect to be in the position to offer discount prices on particular items which will, in return, encourage clients to buy more flowers more frequently.

Monitoring Marketing Results

Designs by Linda, Inc.'s financial statements will offer excellent data to track all phases of sales. These are available for review on a daily basis.

Designs by Linda, Inc. has three main competitors: Alexander's Flowers, Blossoms Fresh Flower Market, and Rowers Plus. Our main downtown competition, Henry's Horticulturals, has recently gone out of business and their Westside Center location has been taken over by Alexander's Flowers.

Alexander's Flowers

Headquartered at: Trapper's Alley, Columbus, OH Additional Locations at: Ashley's, Westside Center, Columbus, OH

Strengths Alexander's is run by a hands-on owner. Located in the University District for over ten years, the shop continues to do well even though Trapper's Alley has been struck particularly hard by the recession and has had difficulty keeping tenants.

Weaknesses With the recent establishment of their second location in the Westside Center (doing business as Ashley's), Alexander's could have overextended itself. The Westside Center location, with its marginal success record, could prove itself a burden on the University District location.

Blossoms Fresh Flower Market

Owned by: Ron Silk and Dale Morgan Headquartered at: 2338 Carpenter Highway, Dayton, OH Additional Locations at: 154 W. Maple, Columbus, OH; 115 Kercheval, Columbus, OH

Strengths Blossoms, in business for over ten years, is well-known for their avant-garde design and imported products that are high in quality and originality. Their business is expanding and they are recognized for their high profile parties and weddings.

Weaknesses Because of Blossoms' concentration on lavish imported products, they have effectively priced themselves out of the downtown Columbus market. Although their business is expanding, it is growing mainly in the suburbs. They have failed to maintain a steady repeat business in the downtown area, a necessity in the floral industry, because along with their high quality comes extremely high prices. Their emphasis on imported flowers has been very successful for their suburban locations, but they have been unable to translate this success to the downtown area because they misunderstand the different type of customer. With the recent closing of their Westside Center store, the result of low sales, they are concentrating their efforts in the more affluent suburbs.

Flowers Plus

Headquartered at: Columbus Town Center, Columbus, OH Additional Locations at: Algonquin Building, Columbus, OH

Strengths Flowers Plus is a well-managed operation that concentrates on providing products at reasonable prices.

Weaknesses Both stores operating under the Flowers Plus name are not owneroperated which impedes their ability to make decisions and results in a less personal approach to customer satisfaction. The recent closing of their store in the Columbus Dispatch Building illustrates the disadvantages of not having an owner on the premises.

Designs by Linda, Inc.

Our store has the aggressive sales strategy necessary to compete in the downtown market. We take the initiative to show clients, like The Phoenix Club, the Park Place Hotel, and the Dayton Inn, the type of work and the quality of service we can provide. In the few months since the closing of Henry's Horticulturals, Designs by Linda, Inc. has moved quickly to absorb several of their major accounts including the Park Place Hotel, the Columbus Athletic Club, and several corporate accounts located in the Phoenix Center.

Although there has been a general decline in the number of florists in the downtown area in the past few years, we have been successful in expanding our client base. Our business continues to grow because we concentrate on satisfying every patron, whether corporate or individual. We are determined that every customer will walk away happy regardless of their budget. We have found our customers appreciate having the owner on the premises taking an active part in every order. It is a guarantee that their business is important and will be given undivided attention and care.

Our sound business practices have resulted in credit accounts with every major Columbus wholesaler allowing us the flexibility to make wise and speedy purchases. All competitors cited within this report have a strict cash on delivery relationship with wholesalers impeding their ability to maintain a wide variety of products.

Although our competition may try to undercut our prices, we feel we will be able to meet their challenge because our reputation is both financially and artistically reliable. Growth in the Columbus floral industry during the 1990s will come from market share. Although the number of downtown florists has shrunk dramatically, the demand for flowers has not, making this the ideal time for Designs by Linda, Inc. to expand. Our clients and our suppliers trust that we will deliver.

Martin Luther King, Jr. Building Location: Designs by Linda, Inc. has been extremely fortunate to assume the former location of Wilson & Burton's within the Martin Luther King, Jr. Building. Taking over a location that has been identified as a flower shop for more than sixty years carries tremendous recognition value and almost certainly guarantees a secure client base.

The Martin Luther King, Jr. Building location will give Designs by Linda, Inc. 1600 square feet of sales space, over 300 feet of office space in the mezzanine level, and over 2000 feet of storage and production space directly accessible to the store. We have the option of expanding the storage and production space to over 5000 feet as business warrants.

Lease Agreement The Martin Luther King, Jr. Building is owned by Goble Properties, Inc. and terms of our lease are available.

Renovations The necessary renovations to the Martin Luther King, Jr. Building location are as follows:

• Installation of air-conditioning
• Structural repairs to marble cooler
• Construction of check-out and production counters
• New floor covering
• Updated lighting
• Painting and other general cosmetic repairs

Goble is giving us a cash allowance of $36,600. (A copy of the work letter detailing the cash allowance is available.) We believe in order to complete renovations, buy necessary fixtures, and purchase a beginning inventory, it will cost an additional $65,000. We are currently working with John Olgensen, A.I.A., P.C., and they have recently completed a set of drawing working within a budget of $40,000 or less.

Martin Luther King, Jr. Building Tenants: Major tenants of the Martin Luther King, Jr. Building include Unisys Corporation, Capitol City Communications, Alexander and Alexander of Ohio Inc., MLK Hospital, and the Columbus Theater. Connected to the Martin Luther King, Jr. Building by extensive sky walks and tunnels are Columbus Town Center, University District One, the Hotel St. Regis, and the Algonquin Building.

Parking Goble Management offers shoppers validated parking to encourage commerce.

Location Possibilities The Martin Luther King, Jr. Building location offers Designs by Linda, Inc. the latitude and space to meet our growing needs. Although over five times larger than our Phoenix Center location, the Martin Luther King, Jr. Building store has essentially the same operating costs. Given its sixty year history as a flower shop, the equitable lease and work allowance we negotiated with Goble Properties, and its well-balanced division of production, retail, and office space, we believe this location is the best possible option for Designs by Linda, Inc.

Personal History

I have been working in the floral industry for over eight years, gaining personal knowledge and experience in all phases of the industry from horticulture to wholesale to retail. Prior to working in the floral industry, I worked in party stores gaining experience in running small businesses.

I have had college course work in business administration, banking and finance, investments, and commercial credit management. I have also attended several FED management seminars.

Reasons for entering the business include the personal challenge.

Duties and Responsibilities: Currently, I handle all aspects of planning, purchasing, sales, personnel, promotion, and production. As the company grows, a more formal management hierarchy will be developed.

Financial growth is monitored by myself and by an accountant who completes monthly statements used to make sound management decisions. A "check and balance" system is in place and entails the cross-checking of daily receipts against the cash register tape and the accountant's review of bookkeeping for errors.

I draw an annual salary of $60,000 from the business although most of this goes to repay loans to finance Designs by Linda, Inc.'s start-up costs. These loans will be paid-in-full by March of 1993. One additional fringe benefit is membership in The Phoenix Club, which is a business tool used to maintain a good working relationship with the Club (one of our larger clients) and its members.

Resources Available to the Business

• Accountant S.L. Schornack, P.C. 26847 Grand River Redford, OH
• Attorney LJ. Bowden, P.C. 2115 Livernois Troy, OH
• Insurance Broker D.C.Davis Florists' Mutual 500 St Aidan St. Edwards ville, IL

Additional Assistance

Floral wire services, such as FTD and AFS, and wholesale suppliers offer assistance in marketing, design, accounting, and management practices. In addition to FTD and AFS advice, Designs by Linda, Inc. is currently a member of the American Floral Marketing Council, the Ohio Floral Association, the Society of American Florists, and the National Association of the Self-Employed, all of which are professional associations designed to assist small businesses.

Designs by Linda, Inc.'s personnel structure is that of one company with two locations. Many of the employees will work at both stores depending on production needs. The office staff, located at the Martin Luther King, Jr. Building, will service both stores. Drivers will also serve both stores simultaneously.

Phoenix Center Location We currently employ eight full-time people. We supplement core staff with additional part-time help during holidays and special events. We expect to transfer some personnel to the Martin Luther King, Jr. Building location when the store opens.

Martin Luther King, Jr. Building Location We expect to employ four to six additional full-time people for this location. The Martin Luther King, Jr. Building store will function as the main facility for Designs by Linda, Inc. because it has over 2,000 square feet of production space. The Phoenix Center store does not have running water, sufficient storage space, adequate coolers, or enough design tables. The Martin Luther King, Jr. Building location was designed as a flower shop and has functioned as such for over 60 years. In addition, this location has over 300 square feet on the mezzanine level which will be used as our office.

Skills and Abilities Staff must have a high school education, be self-motivating, and have strong customer service skills. Previous experience in the floral industry is preferred.

Recruitment Designs by Linda, Inc. has found that local wholesalers and personal referrals are an excellent source for experienced designers and sales clerks. We have not had much success with published classified ads.

Training and Supervision Training is largely accomplished through hands-on experience with supplemental instruction given on more complicated design projects. Additional knowledge is gained through FTD and wholesaler design shows, and industry books, magazines, design manuals, and promotional materials. Designs by Linda, Inc. fosters professional development and independence in all phases of our business. Supervision is task-oriented and the quantity is dependent on the complexity of the job assignment. More experienced employees are responsible for managing certain aspects of production.

Salaries and Benefits Designs by Linda, Inc. pays from $5 to $15 an hour depending on experience. An employee discount of 30 to 50 percent on merchandise is offered. As business warrants, we hope to put together a benefit package that includes insurance, parking, and paid vacations.

The secured monies will be applied as detailed below and will enable Designs by Linda, Inc. to increase our overall sales to over one million dollars annually within the next two years.

Martin Luther King, Jr. Building As stated earlier, the Martin Luther King, Jr. Building location, with its production and office space, gives Designs by Linda, Inc. the facilities to increase our market share in the downtown area.

Phoenix Center By moving our shop to the Promenade Level with its large walkin cooler, running water, and greater production area, Designs by Linda, Inc. expects to gain efficiency, improve the store's image, and increase gross sales. An additional benefit is the guarantee of the Park Place Hotel's banquet contract (estimated sales worth $200,000 to $300,000 annually) which is a condition of the lease agreement. The expanded space and promise of a lucrative contract make this relocation a financially sound decision.

Equipment Purchasing a computer with adequate software packages to satisfy our accounting needs is a priority. We expect to set up a system for $5,000. Cash registers for the Martin Luther King, Jr. Building store, duplicates of the models currently used in the Phoenix Center, will cost $1,000. A zon machine (credit card data capture machine) costs approximately $300. The purchase and installation of telephones for the Martin Luther King, Jr. Building will cost at the most $5,000. We plan to purchase used office equipment to supplement our existing fixtures. We plan to spend no more than $4,000 for office equipment.

Leasehold Improvements The bulk of the load will go towards leasehold improvements at the Martin Luther King, Jr. Building store. These include:

• Air-conditioning
• Tile floorcovering
• New and upgraded lighting
• Structural repair to marble cooler
• General and specialty painting
• Check-out and design counters
• Other carpentry and metal work

We have asked our architect to work within the budget of $50 per square foot, or less, for these improvements not to exceed $80,000. Designs by Linda, Inc., along with Goble Management, are acting as general contractors and have begun to gather bids.

With the expected relocation of our current store in the Phoenix Center to the Promenade Level, certain leasehold improvements will be necessary including:

• Upgraded lighting
• Repairs to work counters and cabinets
• Repairs to glass doors
• Wallcoverings

A budget of $25 per square foot, not to exceed $30,000, is our starting point for this project as this space does not require the extensive repairs the Martin Luther King, Jr. Building site does.

Operating Capital The remaining monies, comprising most of the line of credit, will cover:

• Any cost overruns
• Start-up costs
• Moving expenses
• Initial advertising and promotional costs associated with the move and opening
• Additional tool purchases
• Security deposits
• FID and AFS wire service fees and membership expenses
• Additional insurance premiums.

Designs by Linda, Inc. has experienced trememdous growth and success in its first two years of existence. We have outgrown our current facility in the Phoenix Center. Our production has expanded far beyond what our current facilities can handle and it has hampered our ability to deliver quality service. Our primary goal is to increase customer satisfaction by providing quality products and attentive service. Relocation is the only answer to our problems with production and storage space. We believe our new stores within the Phoenix Center and in the Martin Luther King, Jr. Building will satisfy current and future plans for expansion.

Both stores are located in areas where the demand for flowers has been proven. These locations have already established reputations as flower shops and, based on our experience with the Terra Viridis space, we know this is an advantage over an untried location.

Our recent successes have been, in part, a result of less competition. It is imperative that Designs by Linda, Inc. take advantage of this opportunity and move quickly to capture business left in a void by the recent closing of our main competitor, Henry's Horticulturals. We are better suited to do this than other downtown florists because of our key commercial accounts and the customer loyalty we have built over the last two years.

By expanding our production facilities and client base, Designs by Linda, Inc. will have positioned itself as the dominant florist in both the downtown and University District area. Because our reputation is established with the down-town work force (most of whom reside in the suburbs), we have an added edge over suburban florists because their business rarely overflows their neighborhoods. This lays the groundwork for potential future growth into the suburbs.

The Martin Luther King, Jr. Building location will provide us with ample production and office space as well as being a desirable retail space. It is also very reasonably priced.

By moving to the Promenade Level of the Park Place Hotel, we would be guaranteed the Hotel's Banquet business with an annual value of $200,000 to $300,000. The 1,200 square feet of retail space is enough to insure that this would not become a satellite shop to the Martin Luther King, Jr. Building, but will be a full-service flower shop capable of satisfying the majority of what this location generated in terms of business.

Designs by Linda, Inc.'s two years in business has eliminated the time needed to experiment and establish management techniques that work the best for our company. We are confident that our success can be translated to more than one store.

To finance our planned expansion, we are asking for $100,000 which comprises loans and lines of credit. We are open to suggestions as to the best way to secure this type of financing. We welcome the chance to meet and interview with any prospective party interested and willing to help us excel.

Supplemental Materials

The Martin Luther King, Jr. Building lease and work letter, letters of intent, and architectural drawings are available upon request.

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