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.
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 starting 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.
|Research and Development||$12,000|
|TOTAL START-UP EXPENSES||$50,000|
|Other Current Assets||$18,000|
|Start-up Expenses to Fund||$20,000|
|Start-up Assets to Fund||$15,000|
|TOTAL FUNDING REQUIRED||$0|
|Non-cash Assets from Start-up||$5,000|
|Cash Requirements from Start-up||$0|
|Additional Cash Raised||$20,000|
|Cash Balance on Starting Date||$10,000|
|Liabilities and Capital||$0|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$8,000|
|Loss at Start-up (Start-up Expenses)||$30,000|
|TOTAL CAPITAL AND LIABILITIES||$20,000|
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.
Strategic/Operational 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.
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.
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.
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.
|Potential Customers||Growth||YEAR 1||YEAR 2||YEAR 3||YEAR 4||YEAR 5||CAGR|
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 plans 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.
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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.
2 Marketing Executives
Successful applicants will be undergo training to familiarize themselves with flower shop operations to boost productivity and performance. The flower shop business plans to encourage everyone to work as a team for smooth day to day operations.
7.2 Average 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.
|Year 1||Year 2||Year 3|
|2 Sales and Marketing Executive||$50,000||$55,000||$60,000|
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.
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||12.00%||14.00%|
|Long-term Interest Rate||5.00%||7.00%||9.00%|
8.2 Brake-even Analysis
The Brake-even Analysis for Kate’s Blossoms is shown in the graph below.
|Monthly Units Break-even||3000|
|Monthly Revenue Break-even||$120,000|
|Average Per-Unit Revenue||$100.00|
|Average Per-Unit Variable Cost||$3.20|
|Estimated Monthly Fixed Cost||$240,000|
8.3 Projected Profit and Loss
Profit and Loss information for the flower shop calculated on a monthly and annual basis is shown below.
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$40,000||$50,000||$60,000|
|TOTAL COST OF SALES||$60,000||$70,000||$80,000|
|Gross Margin %||65.00%||70.00%||75.00%|
|Sales and Marketing and Other Expenses||$10,000||$12,000||$14,000|
|Total Operating Expenses||$100,000||$120,000||$140,000|
|Profit Before Interest and Taxes||$20,000||$23,000||$26,000|
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.
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$14,000||$16,000||$18,000|
|SUBTOTAL CASH FROM OPERATIONS||$114,000||$136,000||$158,000|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$40,000||$45,000||$50,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$33,000||$38,000||$46,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$33,000||$38,000||$46,000|
|Net Cash Flow||$10,000||$12,000||$14,000|
8.5 Projected Balance Sheet
Below is a Projected Balance Sheet for Kate’s Blossoms that shows assets, capital, liabilities, long term assets and current liabilities.
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$5,000||$7,000||$9,000|
|TOTAL CURRENT ASSETS||$235,000||$272,000||$309,000|
|TOTAL LONG-TERM ASSETS||$7,000||$5,000||$2,000|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$20,000||$23,000||$26,000|
|TOTAL LIABILITIES AND CAPITAL||$210,000||$230,000||$250,000|
8.6 Business Rations
The following is the Ratio Analysis, Business Ratios and Business Net Worth for the flower shop.
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||8.00%||5.00%||3.00%||70.00%|
|Total Current Assets||100.00%||130.00%||150.00%||40.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||73.00%||83.00%||67.00%||65.00%|
|Profit Before Interest and Taxes||30.00%||45.00%||60.00%||7.00%|
|Total Debt to Total Assets||10.00%||6.00%||3.00%||70.00%|
|Pre-tax Return on Net Worth||103.00%||113.00%||123.00%||5.50%|
|Pre-tax Return on Assets||73.00%||56.00%||77.00%||11.00%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||24.00%||30.00%||32.00%||N.A.|
|Return on Equity||70.00%||74.00%||80.00%||N.A.|
|Accounts Receivable Turnover||12||17||20||N.A.|
|Accounts Payable Turnover||16||20||24||N.A.|
|Total Asset Turnover||7.2||4.7||3.5||N.A.|
|Debt to Net Worth||0||-0.19||-0.13||N.A.|
|Current Liab. to Liab.||0||0||0||N.A.|
|Net Working Capital||$150,000||$200,000||$250,000||N.A.|
|Assets to Sales||1.5||1.3||0.75||N.A.|
|Current Debt/Total Assets||20%||14%||9%||N.A.|
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