Note: This flower shop business plan, like all the others in the section Business Plans , contains calculations of average prices, which in your case may differ. Therefore, we recommend that you do calculations for your business individually.
- 1 Flower Shop Business plan With Complete Calculations
- 2 Description of the service
- 3 Market analysis
- 4 SWOT analysis
- 5 Assessment of opportunities
- 6 Organizational and legal aspects
- 7 Marketing plan
- 8 Calculation of projected income
- 9 Production plan
- 10 Organizational plan
- 11 Financial plan
- 12 Risks
Flower Shop Business plan With Complete Calculations
- The monthly income is $400 USD.
- The net profit is $750 USD rubles.
- Initial costs – $5.70 to $4.78 USD.
- Payback – from 5 months.
In this article, we will compile a detailed business plan for a small flower shop with calculations. Also you might be interested in an article on how to open your store .
Description of the service
In this business plan, a small shop selling flowers was considered. The entrepreneur himself is the manager, and his kiosk employs florists who are versed in colors and able to make beautiful floral arrangements. Also, the New business plan will consider additional opportunities, from which the entrepreneur can benefit and increase his income.
Before you evaluate the flower market, you need to decide on the format of the future store. It, in turn, will depend on who will be the main buyer. All this in the end will affect the level and style of the future store. Today the following formats of flower shops are very popular:
- Small pavilions located in junctions and stops. This type is typical for low price segment of buyers and does not require special expenses for decoration and maintaining the style of own shop. Clients are attracted by the price.
- Shops located in shopping centers and other places with high traffic. These stores serve already the average price segment. Buyers pay attention not only to flowers, but also to the appearance of the store, service.
- Flower salons and boutiques related to the premium segment. Such outlets are usually located near offices, in the city center or large shopping centers. These stores should have excellent style, high level of service and flowers of excellent quality.
- Internet shops. They can aimed at meeting the needs of customers of any price segment.
Market analysis 1.1
The latter format today perfectly combines with the second and third, increasing turnover and not requiring special expenses. That is why we will consider a store created for consumers of the middle price segment. In addition, an online store will be opened to serve visitors outside the outlet.
In any case, before the opening we will have to pay attention to all the details, including drawing up collections of bouquets that will be on display in the online store, and interior design.
Assessing the Russian flower market, we can not say that it is characterized by seasonality, and pronounced. In the pre-holiday season, prices for flowers are raised, in connection with the possible profit.
Considering possible competitors, it is necessary to say that the most important is the quality of the flowers being sold, the elegance and harmony of bouquets. And that the flower compositions turned out beautiful and aesthetic, it is necessary to approach the selection of personnel with particular care.
Before opening your own flower shop, you need to assess the opportunities and threats. In general, all factors are divided into external and internal.
With external factors, it is impossible to fight and try to change them. But to adjust to the situation or extract from it own benefit is even possible. External factors include:
- the occupation of a certain niche in the market;
- Having carried out an in-depth analysis of the situation on the market, you can extract the maximum benefit associated with the seasonality of this business;
- high profitability Business;
- possibility to cover a large segment of the market;
- cyclical demand (from year to year people at the same time buy flowers, their mass purchase is associated with various holidays);
- a possible increase in demand as a whole;
- increasing the relevance of the proposal due to the growing standard of living of the population;
- possibility to offer and provide additional services;
- no need to establish production, focus on the sale of purchased products.
- high level of competition;
- possible problems with suppliers;
- The need to search for an alternative during a sharp decline in demand for products;
- availability of shelf life for products, which makes it necessary to continuously forecast the demand;
- the need for obtaining permits;
- a large number of documents that need to be filled in time.
The entrepreneur can change internal factors, adjust for himself. They include:
- high markup for products;
- high qualification of the personnel;
- a large assortment;
- availability of services;
- offering a quality service to its customers;
- availability of effective methods of advertising and promotion of own products.
- Weak sides:
- possible miscalculations regarding the demand for products;
- lack of experience in this Simple business.
Assessment of opportunities
Particular attention will need to be given to choosing the location of the future store. It is better not to save on rent. Lively transport interchanges can bring a lot of profit, and rental costs will pay off in full.
It is better to choose a perfectly viewed place. This arrangement will increase the number of spontaneous purchases, thereby positively affecting the total revenue and profit.
If we talk about the market and competition on it, then it must be said that today online flower shops are becoming especially important. This is due to the fact that people are increasingly using the Internet to make purchases, flowers and bouquets including. Today, flower shops sell not only flowers, but also baskets with sweets, wines, gifts, decorated with flowers. Especially relevant these gifts are in pre-holiday time. In general, the period from the end of December to the middle of March can be called the most peak – so many holidays close by. Many flower sellers for these 3.5 months receive profits more than the rest of the year. Activity is also evident in May and September.
The flower shop will work according to the following schedule:
|Monday||10:00 – 22:00|
|Tuesday||10:00 – 22:00|
|Wednesday||10:00 – 22:00|
|Thursday||10:00 – 22:00|
|Friday||10:00 – 22:00|
|Saturday||10:00 – 22:00|
|Sunday||10:00 – 22:00|
The number of working hours a week: 84 hours.
The number of working hours in the month: 360 hours.
To work in the store will need 2 florists, who will work in shifts. Delivery of flowers, the purchase of which is carried out through the Internet, will carry out the delivery service, because hiring their own employees at the initial stage will unprofitable.
It is very important to immediately find decent and binding suppliers who will deliver quality products on time. When doing a search, you need to read thematic forums, browse sites, compare prices and conditions-in a word, carry out a serious and painstaking work so that later work can be done in the usual way.
After the store has developed, you can bring flowers from other countries or regions on your own, setting up direct shipments with the manufacturer. This will improve the quality of flowers and increase revenues.
At the initial stage, a large number of funds will have to be invested in your own online store. It is better not to save on this. The site should be bright, beautiful, attractive to potential customers. But that is not all. Be sure to have feedback, contact information and visual pictures of the proposed bouquets with prices. After the work in the online store will be established, you need to timely update the range, inform your customers about promotions, discounts, opportunities. All this will increase the customer’s loyalty, form a client base.
Organizational and legal aspects
Organizing its own flower shop, special attention should be paid to organizational and legal issues. It is very important to have all the necessary information and work according to the law to avoid various penalties.
- Organizational and legal form – IP or LLC . Do not forget to specify the codes for OKVED:
- 52.48.32 Retail sale of flowers and other plants, seeds and fertilizers;
- 52.48.34 Retail sale of souvenirs, articles of folk art, religious and religious objects, funeral supplies;
- 64.12 Courier activities, except for the activities of national mail;
- 74.87.4 Activity in the field of design;
- 74.87.5 Provision of services for the design of premises, activities for the organization of fairs, exhibitions and congresses;
- 74.82 Packaging;
- 52.61.2 Retail trade, carried out directly with the help of television, radio, telephone and Internet.
It is not necessary that in your specific situation all these codes will be needed, but if you plan on further expansion, then it is worthwhile to consider all the codes that you may need later. It is easier to specify all necessary at once, than then to reissue documents and make changes.
- The entrepreneur can choose USN or UTII. In the first case, there are two possible options – USN “Revenues” of 6% or USN “Incomes minus expenses” 6-15% (the rate is determined depending on the region).
- There must be a Sanitary and Production Control Program . It is obtained once – after approval in Rospotrebnadzor.
- It is necessary to have contracts for deratization, disinfestation and disinfection.
- Ventilation and air conditioning systems should also serviced, disinfection is mandatory.
- A contract for the export and disposal of solid waste is mandatory.
- There are also requirements for the internal documentation of the store. So, in the organization should be:
- magazine on accounting for overdue products;
- a register of disinfectants;
- assortment list of products sold.
- All products will need hygienic permits from SES or relevant quality certificates.
- It is worth familiarizing with the Customs Code and Rosselkhoznadzor regulations, which apply to plants .
- Please note that you do not need to receive a license to sell flowers, but you will have to get permission to trade in flowers.
- If you accept payment from customers on bank cards, then you need to open a settlement account .
Many entrepreneurs, especially at the initial stage of their business, do not pay enough attention to the promotion of their own flower salon. Experienced businessmen working in this industry argue that it is very important to promote in those circles in which potential buyers are located. In our case, the price segment is average. Therefore, the most effective means of promotion will be:
- Pay attention to naming and branding. It is very important to choose a bright brand, something memorable. So that the consumer has tied to the name, the situation, and not to the address of the store and the personnel working in it. In addition, it is the brand that helps to inspire the buyer’s confidence, to develop loyalty to his own flower salon.
- The use of outdoor advertising will dramatically increase the number of spontaneous purchases, so it also needs to pay special attention.
- It is necessary to distribute advertising leaflets to the nearest houses. People at a subconscious level will know about the presence of a nearby flower shop, and if necessary go there.
- Internet advertising. Provided that the store will have its own page, promotion on the Internet will be just necessary. In this case, the website itself will need to be promoted in the search engines and social networks.
- Pay attention to the issue of discount and bonus cards, gift certificates, holding of shares.
We already said that our store will be directed to the mid-price segment of the market. Consequently, the prices should be set on the market average. In festive and pre-holiday days, you can increase the cost. Some salons practice on such days an increase in prices by 50-100%.
Calculation of projected income
To forecast the income of a flower store is rather difficult. We will take the average market indicators for the industry. These data are conditional. In each case, you need to focus on the segment, region, competitors and other factors.
Revenues are average monthly. Do not forget that there are months of lull and active purchases. When drawing up your own business plan, you need to forecast revenue monthly.
|Sales at a stationary store||140|
|Sales volume in the online store||100|
|Total sales||240 bouquets|
|average cost||900 rubles|
|Monthly revenue||216 000 rubles|
The average mark-up in this segment of the market is 100-300%.
If the store sells related products, then the revenue will be higher.
Choosing a room, it is important to determine the necessary equipment and tools. In a good flower shop you will need to buy:
- refrigerator for flowers;
- flower stands;
- flower flasks of various sizes;
- watering can with a narrow nose;
- device for cutting thorns;
If the store also offers flowers to customers in pots, then additional tools will be needed.
Both florists will receive a fixed fee. Work schedule: 2 through 2. Salary (including taxes, insurance payments can deducted from the amount paid by the entrepreneur income tax) – 30 000 rubles for each.
|IP Registration||800 rubles|
|Creating your own site||45 000 rubles|
|Repair of premises||25 000 rubles|
|Purchase of POS||7 500 rubles|
|Purchase of necessary equipment||220,000 rubles|
|Purchase of raw materials (packaging, yarn, vases)||10 000 rubles|
|Purchase of the first batch of flowers||50 000 rubles|
|Initial costs||358 300 rubles|
|For rent||25 000 rubles|
|Advertising||10 000 rubles|
|Payment for delivery service work||10 000 rubles|
|Wage||60 000 rubles|
|Expenses for the purchase of necessary products||55 000 rubles|
|General expenses:||160 000 rubles|
- Profit before tax: 216 000 – 160 000 = 56 000 rubles.
- We will calculate the tax as 15% of the difference between income and expenses. In your case, a different calculation method can chosen.
- The tax: 56 000 * 0,15 = 8 400 rubles.
- Net profit: 56,000 – 8,400 = 47,600 rubles.
- Profitability: 47 600/216 000 * 100% = 22.04%.
- Payback period: 358 300/47 600 = 7,53. Consequently, the flower shop will pay off in no less than 8 months.
Before talking about the possible risks, I want to highlight a number of benefits from the opening of its own flower shop:
- minimum initial costs:
- high profits in the long term.
The risks include:
- The fact that flowers are perishable goods. To avoid possible losses, you must constantly monitor the market, forecast the demand. All this requires great knowledge and time.
- The possibility of obtaining a defective and defective product. And not always it is possible to return it. It is important to correctly draw up a contract with suppliers and choose bona fide partners who will also interested in the timely delivery of a quality product.
- Cyclicality of the flower market and occasional demand. It is almost impossible to fight these risks directly. But you can mitigate the consequences, opening up additional opportunities for the segment. So, today in flower stalls you can find soft toys, cards, souvenirs and much more. It is possible to be engaged in registration of celebrations that at least partially will help to estimate the planned volume of profit.
I would like to separately say about the estimation of the volume of demand
Flowers can be stored for more than a week, but orders for their delivery are made much earlier. At all thus, it is very important to have a wide assortment of production that the buyer could make a choice. Yes, and the reputation of a large assortment has a positive effect.
In this case, experience is very important. The larger the pavilion, the harder it is to forecast sales. So, small shops are adapted to the format of work for 1-2 months. But large salons require more time.
An incorrect estimate of demand can lead to the further disposal of 60% of the entire product, which for the entrepreneur will be a disaster and reduce all profits to none. That is why many stores are engaged in the sale of related products. This helps to diversify the business and significantly reduce the level of risk.
We are all people and we can do mistakes, something not to taken into account, etc. Do not judge strictly if this business plan or others in the section Business plans seemed incomplete to you. If you have experience in this or that activity or you saw a shortcoming and can supplement the article, please let us know in the comments! Only in this way we can together make business plans more complete, detailed and relevant. Thank you for attention!