How to open a flower business: profitability, nuances of opening and pitfalls. How to open a profitable flower shop

If you are thinking about where to start a flower business, you first need to decide what format your future store will be and estimate the amount of investment.

To open a small flower shop from scratch you will need about ten thousand dollars. You may be able to save money, but it’s still better to include exactly that amount in your expenses.

Calculate all the costs of starting a store and draw up a business plan. Having described the entire financial model of work, you can calculate how much goods need to be sold for the store to start making a profit. Assess whether sales can reach this level. Think about how you can cut costs and increase flower sales.

You also need to decide from the very beginning whether you will work as an individual entrepreneur or open a limited liability company. You can prepare legal documents yourself, or you can entrust this matter to professionals. It is better to trust a company that specializes in preparing documents for starting a business, especially since the difference in costs is quite small.

Once you have written a business plan and registered your company, you can begin searching for suitable premises and suppliers.

How to find a suitable premises

When searching for premises, it is important to have a good understanding of the so-called map of the trading area. It is preferable to open a store near a large business center; it is better if there are two or three of them nearby. This will attract corporate clients who often place large orders for a large number of employees. In this case, you won’t have to think about how to attract additional clients before the holidays. Several corporate orders can bring in as much profit as you make in an average month.

For a flower salon, a room with an area of ​​eighteen to thirty square meters will be sufficient.

Plus, being close to a business center will mean more customers passing through your store each day. If people order your bouquets and arrangements for their companies because they like them, they will start ordering bouquets for themselves, for their wives, relatives, etc.

However, you need to take into account that renting premises located near a business center costs much more than renting in a residential area. And one more thing: it is always difficult to find a parking space near the business center.

But in any case, if you can rent a room in such a place, it is a great success, because the location of the salon at the intersection of many human flows is most advantageous. Life is in full swing during working hours, people buy more expensive bouquets for work-related occasions, but for themselves, as a rule, they take something cheaper.

Of course, you can open a store in a residential area. You will benefit significantly from renting premises; moreover, if the residential area is very large, there will be a certain circle of regular buyers living in your area. But you need to pay special attention to customer flows. The ideal option is to draw a map of the area before choosing a room, see where the school is located, where are the large stores, grocery centers, etc.

If there are any offices nearby, analyze which way people go to work and which way they go from work. Even if you have already rented a room, you will still need a trading map of the area. With its help you need to plan your future work.

Before renting a room, you need to pay attention to one more very important point. Consider whether your store will be easy for customers to find. If you rent premises in the courtyards, most likely you will have problems with the flow of clients. Of course, there will be regular customers, but you shouldn’t count on a continuous influx of new visitors. A beautifully designed display window on a passing street is the best advertisement for a flower shop.

Before opening the salon, the premises need to be renovated. Nowadays there are many magazines about interior design, in which you can get a lot of ideas on how to make renovations with minimal resources, even if the room is in terrible condition.

How to choose suppliers

Now suppliers offer a very wide range. Flowers that ten years ago could only be seen in catalogs or that were brought only to order are today always available for free sale. There are many suppliers, you can choose those whose conditions are most suitable for you.

When you are just starting your business, it is better to choose suppliers who have minimum bulk purchases. This will make it possible to purchase goods more often and in small quantities. This way you can avoid buying expensive refrigeration equipment for storing flowers, and you can also determine which flowers sell better and which don’t sell as well.

What equipment will you need?

It is advisable to have a refrigerator in a flower shop, so when opening, you need to include its average cost in your expenses. At first, you can do without a refrigerator, because there are now a lot of flower supply companies, and you can buy flowers in small batches. While there are few orders, you will not need a refrigerator. But when your business is sufficiently developed, you will be able to afford a refrigerator, and you will need it.

But if you still decide to buy a refrigerator, you don’t need to place it inside the cabin, this makes an unpleasant impression on the buyer.

It is very important to properly equip your retail space. Even in the arrangement of colors there are many subtleties. You can arrange the flowers so that it visually seems like there are a lot of them. You need to be able to choose the assortment in such a way that the effect of volume is created in the salon. You will need racks and containers for flowers.

To organize normal work in the salon, at least one computer is required. A scanner, copier and fax are also needed, but they can be located at the store manager’s home, i.e., your own resources can be used to the maximum.

How to select staff

The ideal option is to hire four florists who will work in shifts. Two florists working one shift will be able to serve customers faster and fulfill more orders. Of course, you can start with two, but working alone is inconvenient. If the florist is alone in the store, he cannot go anywhere during the day. After all, he cannot close the store during his absence, so four employees is the most optimal number.

If it is not possible to hire so many employees at once, you can invite an assistant florist; his work is paid at least twice as cheap. An assistant may not work in the salon all day, but only during the time the manager is absent from the store. Students work in such positions with pleasure; they count and process flowers. You can invite assistants on weekends when store management is on vacation.

How to plan an assortment

It is necessary to carefully study the range of your competitors and understand what they are mainly selling. If some flowers are sold, it means that there is a demand for them, this must be taken into account. At the same time, there is no need to be afraid to bring something new to the business, make original offers to customers, always slightly exceed their expectations, offer more than others.

Walk around your area and see what your competitors are selling. This way you can understand what is in demand for what.

Each flower has its own lifespan and costs a certain amount of time. When a salon is just opening, you can only guess what flowers will be in demand, even if you have analyzed what your colleagues in the area are buying. Therefore, in the first months of work it is better to purchase flowers that last a long time. This will also ensure that your store is well stocked and will create the impression of abundance and a wide range. Anthurium remains fresh for a week, orchids last a very long time, especially cymbidium and dendrobium, phalaenopsis in flower pots can generally last for several months. Flowers in pots can be sold along with it, and cut for a bouquet. People willingly buy chrysanthemums both for home and as gifts, so chrysanthemums can also be purchased in large quantities. Also, the assortment must include roses and gerberas.

To start a flower shop, it is better to form a basic assortment of flowers that do not lose their presentation for a long time: anthurium, orchids, chrysanthemums.

It is very important to ensure that the assortment is wide not only in names, but also in color palette. Be sure to buy white flowers. This is a white rose, white chrysanthemums, white gerberas, white orchid. It’s more difficult with spring flowers; there must be tulips and daffodils.

Initially, you can sell bouquets in one range to see which colors will be in demand. It is also useful to come up with standard bouquets, decorated in a certain way, for a given amount, which will always be on sale. Gradually, as you build up a customer base, you will study demand, compare your sales with what flowers are sold by your competitors, and make adjustments to the cost of your bouquets and colors.

The assortment must include inexpensive indoor plants.

At first, when you are still limited in funds, you can purchase indoor plants that can be sold individually or used in combination with fresh flowers. There are many such plants. For example, variegated begonia looks impressive in bouquets; speciphylum gives good volume, which can last in a bouquet for several months. Bouquets that combine indoor plants and cut flowers always look very voluminous and expensive.

You can organize an exhibition of ready-made bouquets in the salon and make a special markup for each bouquet for the design.

It is very important to correctly arrange flowers in the salon. They should not be on the same level. In addition, when arranging, a smooth transition of color is of great importance. Let there be pink flowers next to the red ones. It is important to create the impression that there are many flowers. To do this, you can add additional indoor plants and branches; they provide volume and height. The arrangement should be stepped. You should also try to ensure that roses and any other flowers are the same length.

The idea of ​​starting your own business has probably occurred to every person. And the flower trade is considered a relatively profitable business, because it’s hard to imagine the holidays without them. What is selling flowers? A business plan must take into account even the smallest details. So how to start trading and make it profitable?

Selling flowers: business plan

Of course, first you need to sort out some little things. In particular, you need to draw up an accurate and detailed business plan:

• Research the sales market.
• Choose a place to purchase goods.
• Complete the necessary documents.
• Find a place to rent.
• Purchase the necessary equipment and goods.
• Hire staff.
• Calculate the amount of starting capital.
• Conduct an advertising campaign.

If you are interested in how to start selling flowers, then you should know that when creating any business, every little detail is important. This is the only way to make it truly profitable.

What documents are needed to trade plants?

It should be noted right away that a license to sell flowers is not required. Therefore, you just need to register either an LLC or an individual entrepreneur with the tax service. Sole proprietorship is suitable for you if you intend to work exclusively with individuals. This option has some advantages, such as a simplified accounting system, as well as lower taxes.

If you are not the sole owner of a store and plan to expand your business and cooperate with different companies, it is better to register a Limited Liability Company.

Where to rent a room?

If you are planning to start a flower selling business, you should know that the location of your store is extremely important. Therefore, it is best to rent a room somewhere in a busy place, for example, in the central part of the city, in a tourist area, in a shopping center, etc.

Naturally, premises in a busy area will cost more. But a favorable location largely determines the success of trade.

After all, quite often people buy flowers impulsively, without planning it in advance. Therefore, it is important that your store is on the path of a person who is going to purchase a beautiful bouquet.

As for the store itself, it is desirable that it be spacious. Then buyers will not have to crowd into a tiny room.

Try to arrange the flowers so that they are visible from anywhere in the store - this way the client will have the opportunity to independently choose the best plants.

What equipment do you need to get started?

As already mentioned, flowers are a product that quickly deteriorates. Therefore, you need to raise money in advance for the necessary equipment. After all, without it, selling flowers is simply impossible. The business plan should include the purchase of the following materials:

• To begin with, you will need a refrigerator, since in the hot season it is important to keep the flowers fresh.

• But in the winter months, the main threat to the product is cold. Therefore, you need to purchase a special thermal curtain.

• A store full of flowers must have an air conditioning system, which will help create optimal temperature conditions at any time of the year.

• Don’t forget about stands, tables for florists and other furniture necessary for creating bouquets of furniture.

• Most likely, in addition to fresh-cut flowers, you will sell some other products - these will also require furniture, such as racks and shelves.

• To preserve flowers, buckets, vases, sprayers and some other devices are needed.

• By the way, make sure there is enough water in the store.

• You will also need a cash register. By the way, as your business develops, when there are more and more regular customers, you will probably need a computer and special software. They will facilitate the process of tracking sales, and also simplify the work of the accountant.

This is a list of basic purchases. You can buy the rest of the things you need for work after the store opens.

Basic consumables: what to buy?

Naturally, the main thing in your business is fresh, fresh-cut flowers. Today, their market in our country is sufficiently developed; only 45% of products come to us from abroad. You just need to find a company that grows or delivers flowers and draw up an agreement with it. By the way, many organizations use a flower franchise.

Many novice businessmen ask what plants to buy. According to statistical studies, roses are the most popular.

Chrysanthemums take second place, and carnations take third place. Therefore, these flowers must be present in your store’s assortment.

Naturally, you can purchase almost any plants that are useful for creating bouquets. And don’t forget about the so-called seasonal ones - for several weeks (or even days) a year, snowdrops, anemones and tulips become especially popular.

Of course, selling flowers is a profitable business. But in order to increase your income, you should think about creating compositions. For this purpose, it is best to hire an experienced, talented florist. He will create original bouquets from ordinary flowers - compositions are usually more expensive. In this case, you will need some materials: gift wrapping, paper, ribbons, bows, rhinestones and other decorations.

By the way, selling flowers in pots is an interesting and profitable idea. Such plants are more expensive, but with proper care they can be preserved for months. In addition, indoor flowers are popular gifts because, unlike cut flowers, they do not fade.

We hire workers

A flower selling business can become truly successful, but only with the right approach. It's no secret that the effectiveness of trading largely depends on the quality of service. Therefore, when interviewing future employees, first of all pay attention to such qualities as communication skills and politeness.

To begin with, you will need a seller, and a little later, a florist. If you cannot do accounting, you will have to hire someone for this position (perhaps on a part-time basis). Additional staff may be needed when expanding a business such as selling flowers. The business plan in this case has its own characteristics.

About some nuances

As already mentioned, the sale of plants is often seasonal. Naturally, people buy bouquets every day, but there are times when flowers are in great demand.

This is mainly observed on special and holiday days, for example, first and last call, prom, March 8 (don't forget to buy tulips, snowdrops and other spring flowers), as well as Valentine's Day, etc.

Always be prepared for such holidays, buy more flowers, create inexpensive bouquets in advance, and offer discounts. In short, do everything to attract customers.

Weddings are another source of good income. Let your florist create bouquets for the bride. Boutonnieres for the groom and bridesmaids made from fresh flowers are becoming increasingly popular - offer this service too.

Ideas for additional income

Selling cut flowers and original bouquets is a profitable business. But business, and therefore profits, can always be raised to a new level. For example, over time you can create a flower delivery service. This service is very popular among people who do not have time to go shopping, as well as among buyers who want to surprise a loved one.

Along with indoor plants, you can always sell pots, fertilizers and other small items. Quite often, flower shops offer customers souvenirs. These can be figurines, boxes, photo frames, paintings, watches, artificial flowers and other gifts.

Selling flowers: advantages and disadvantages

When you start a new business, it's always a little scary. Therefore, many people are interested in the question of whether it is profitable to sell flowers. Yes, there are a number of significant disadvantages in this matter. To begin with, it should be noted that flowers are a product that deteriorates relatively quickly, so if the trade is not very successful, losses can be quite high. And the flower business is seasonal.

On the other hand, there are also important advantages. In particular, some stores sell flowers with a markup of 200 or even 300%. In addition, such a business does not require large start-up capital, any specific skills or extensive experience. With the right approach, selling flowers can become a truly profitable business.

How to open a flower shop and earn income in the shortest possible time.

Not a single holiday is complete without beautiful bouquets, which guests rush to present to the hero of the occasion.

But there are also weddings, anniversaries, corporate banquets, at which it is customary to decorate the hall with flower arrangements. Add to this the dates of lovers, because there are still ardent young men who want to give their lady of the heart fresh roses or daisies, and you will understand how profitable this type of business is.

If you are looking for a niche for yourself in entrepreneurial activity, then it will not hurt to find out how to open a flower shop, what start-up capital is needed in this business and how profitable this type of business is.

Answers to your questions can be found in this article.

Capital investments: 500,000 - 600,000 rubles.
Business payback – from 1 year.

Benefits of opening a flower shop

Not in great demand among entrepreneurs...

Many businessmen are afraid to deal with such a delicate product. And this market is really quite filled, because wherever you look, there are grandmothers everywhere offering simple bouquets grown with their own hands, flower stalls with a small and inexpensive assortment of goods, or pretentious markets where they sell fancy compositions at exorbitant prices.

And yet, opening a flower shop can become a cost-effective and profitable business, because it has many undeniable advantages:

1. You don't need to have a lot of money to launch this startup.
2. You don't have to be a florist or have an agricultural background to own a flower shop.
   Your business is business, and leave the rest to the specialists.
3. In order to open your own flower shop, you don’t need huge areas, which means renting a room won’t bankrupt you.
4. Flowers will always be a hot commodity as long as people celebrate birthdays, fall in love, get married, have children, that is, live a normal life.
5. This type of business in itself implies creativity; you will be able to come up with more and more new competitive advantages and increase your customer base.

Competitive advantages of your flower shop

A business started from scratch does not promise huge earnings at the startup stage. Until you have a wide client base, you cannot dream of super-profits.

To attract many customers, you need to figure out how you can differentiate yourself from your competitors. Alas, the competition in this type of business is quite serious, so you will have to try.

Fortunately, owning a flower shop allows you to create many competitive advantages.

For example:

• Maintain a reasonable pricing policy.
  It is not unthinkable to inflate the cost of flowers, but set a sufficient markup so that the business remains profitable.
• Offer the client a good range of products.
  You should have flower arrangements for every taste and budget: small inexpensive bouquets for schoolchildren and students, luxurious roses or orchids for wealthy clients, intricate compositions for originals, etc.
• Carry out promotions on holidays: March 8, Valentine's Day, September 1, etc.
  For example, “Three bouquets for the price of two”, “Buy a bouquet and receive a postcard as a gift”, etc.
• Consider a loyalty program for regular customers.
• Organize a delivery service for those who cannot personally deliver the bouquet.
• Make sure that the sellers and florists working in your flower shop are as friendly, smiling and competent as possible.

Disadvantages of opening a flower shop

This type of business, like any other, implies not only advantages, but also disadvantages.

Often entrepreneurs do not want to open a flower shop for a number of reasons.

The most common are:

1. Perishable goods.
   Even clothes have their expiration date, going out of fashion. But at least stale clothes can be sold at discounts.
   It is quite difficult to carry out such a promotion with flowers: few people will want to purchase half-dead flowers, even at a low price.
2. Seasonality of this type of business.
   For example, summer is considered a low season for sales, but on holidays, flower products fly away instantly. But you always need to pay taxes, employee salaries, eat and dress, regardless of the season.
3. When ordering large quantities, you may receive defective goods hidden among quality flowers.

And yet, these disadvantages of opening a flower shop can be completely compensated for if you do not order more goods than you can sell, do not spend all the profits, but save enough to safely survive the low sales seasons, and work only with trusted suppliers.

Features of owning a flower shop

“If you want milk, don’t sit on a stool in the middle of the pasture, waiting for the cow to come to you and offer her udder.”
Richard Branson

A flower shop is also a business, so it operates according to the laws of entrepreneurial activity. The more clients, the more profit.

And yet, the flower business has its own nuances that need to be taken into account before starting work:

1. The most favorite flowers of Russians, as well as Ukrainians and Belarusians, are roses.

   In pursuit of originality, consumer tastes cannot be ignored.
   Depending on the season, it is imperative to have an assortment of daisies, gerberas, freesias, lilies, chrysanthemums, sunflowers, dahlias, asters, alstroemerias, irises, and carnations.

2. The range of flower shops is similar.

   You are unlikely to find any unusual flowers from the supplier that competitors do not have, so focus on original colors, creating interesting compositions, a variety of types of flowers, selling not only ready-made compositions of cut flowers, but also plants in pots.

3. March 8, September 1, February 14 are days of big earnings for flower sellers.

   No one will condemn you if you significantly increase your prices these days.
   But in the summer you will have to tighten the belt more tightly, since there are much fewer flowers at this time.

4. Selling flowers cannot be called waste-free.

   15–20% of discarded plants is considered normal. Don't be upset about this.

5. In order to maintain the freshness of your goods for as long as possible, you should install special refrigeration equipment in your flower shop.

   It is not cheap, but it will help reduce costs in the future.

4 ways to make money selling flowers

Having your own flower shop is a conventional name for a business. Most often, entrepreneurs who want to sell such a beautiful and delicate product open the following types of outlets:

Flower pavilion.

This is the most profitable option for those who do not have a large start-up capital, because, in fact, you only need to rent a retail outlet in a crowded place, for example, a large shopping center, an underground passage, etc.
If you choose a bad place to trade, where there will be few people, you risk going broke.

It is also important to take into account the low level of solvency of the future clientele, therefore, when purchasing goods, give preference to inexpensive flowers. No special equipment or decor is required for the flower pavilion.

Actually a flower shop.

Here you will have to invest a lot more money and rent a small retail space, decorating it to your liking.

Due to the fact that your sales area will increase, you will be able to sell not only cut flowers, but also ready-made compositions, plants in flowerpots, etc.

The clientele of flower shops is middle-income people, so don’t make huge fancy arrangements in advance. They can easily be made from scratch to order.

Flower boutique.

This is a slightly pretentious establishment for clients who value not only the quality and range of goods, but also the interior, level of service, etc., so you will have to invest a lot of money in your flower boutique.

You can also experiment with the assortment of goods: purchase both classics and exotic plants from suppliers.

You don’t have to restrain your imagination in making flower arrangements either.
A flower boutique does not have to be opened right in the center. If you stand out from your competitors, people will come to remote areas for your products.

Online flower shop.

Here, in addition to renting premises and purchasing refrigeration equipment, you will have to spend money on creating a website.

Another disadvantage of this type of business is the inability to get a random client, since purchases are made on a pre-order basis. To increase the profitability of an online flower store, it is recommended to combine it with a regular one.

Step-by-step instructions for opening a flower shop

The main components of bringing this type of business to life are the premises, its decor, purchasing equipment, establishing relationships with suppliers and recruiting personnel.

In addition, you will need to officially register your flower shop and advertise it in order to get your first customers.

It will take no more than 4-5 months to launch a startup if you can come to an agreement with all government agencies.

Registration of a flower shop

Of course, you will have to register your company, like an individual entrepreneur, and register with the tax service.

You don’t need to obtain a special license to open a flower shop from scratch, but you will have to get approval from the fire service and the sanitary and epidemiological station that the premises you have chosen meets all standards.

The cost of registering an enterprise ranges from 30,000 rubles and more.

All these procedures should not take you more than 2 months.

Flower shop premises

To start a business, it is not necessary to purchase or rent a huge premises. 30 sq.m. will be enough for you. m.

Not only a sales area, but also at least one living room where staff will rest and change clothes, where some products can be stored, etc., as well as a bathroom.

Renting one square meter, even in small towns, is expensive.

In the regions, the cost of monthly rental of premises will range from 25,000 rubles. In large cities, this amount can be two or even more times higher.

In addition, keep in mind that if you want to locate your flower shop directly in the center, and such a location will certainly have a beneficial effect on business, then renting the premises will cost even more.

If the condition of the premises you find is not very good, then it will have to be renovated. If there is no need to renovate the room for a flower shop, then you definitely will have to decorate it in such a way as to attract the attention of customers.

Fortunately, flowers themselves are an excellent decoration, so you won’t have to spend a lot of money on interior decoration.

Flower shop equipment

In addition to retail furniture (counter, shelving), you will have to equip the utility room with at least a minimum set of furniture: lockers for changing clothes for staff, a table, chairs, etc.

Remember that flowers are perishable goods, so they are preserved much better in the cold. You can purchase a special refrigerator for flowers to store goods, although ordinary industrial refrigerators are also suitable.

Flower shop staff

People always need flowers, so it is advisable that your store is open seven days a week, for example, from 10.00 to 22.00.

To do this, you will have to hire several salespeople to work in shifts.
If you have registered a small flower shop (about 30 sq. m.), then you can get by with one salesperson per shift. If you are targeting a larger enterprise, then you should think about hiring two salespeople per shift.

To create original flower arrangements, you need to hire a professional florist, but in order to reduce the costs of a new enterprise and allow it to get on its feet, you need to hire a seller who knows how to create, albeit simple, but beautiful bouquets.

Therefore, to open a flower shop you need the following personnel:

Until your business begins to generate more profit, you should not hire a driver who will bring flower products from suppliers (you can arrange delivery directly to the office) or deliver them to clients’ homes.

This position should be considered later, once the business is back on its feet.

You can handle the accounting and management of the store yourself.

Flower suppliers to the store

If you do not plan to build a greenhouse and grow flowers for sale yourself, then you will need suppliers.

The most popular suppliers of flower products in Russia are the Mytishchi State Farm of Ornamental Horticulture, the Yuzhny State Farm and the Kosino Agricultural Firm CJSC.

Perhaps you will discover a new supplier who will suit you in all respects.

Flower shop advertisement

Of course, the most popular way to attract customers is to serve them well and sell quality products.

If your business is just starting to operate on the market, then use advertisements, videos on local radio and the Internet (social networks, city forums) to advertise it. You should also invest in a colorful sign that will immediately attract the attention of customers.

How much money do you need to open a flower shop?

So, if you are asking the question: “How much does it cost to open a flower shop?”, then for everything you will need a starting capital of at least 500,000 - 600,000 rubles.

We offer you a selection of useful tips from an expert:

when and how best to open a flower shop,

What should you pay attention to?

Profit from opening a flower shop

Get ready for the fact that a flower business, like any other type of business, will not initially bring fabulous profits, so include in the amount of starting capital the costs of renting a hall and staff salaries (at least for a period of up to 3 months).

As soon as your business gets on its feet, your income will automatically increase.

Download a ready-made business plan for a flower shop with quality guarantee.
Contents of the business plan:
1. Privacy
2. Summary
3. Project implementation stages
4. Characteristics of the object
5. Marketing plan
6. Technical and economic data of equipment
7. Financial plan
8. Risk assessment
9. Financial and economic justification for investments
10. Conclusions

Calculation of flower shop revenue

Of course, with such monthly income, you should not expect that your business will pay off earlier than after a year of successful activity.

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The flower business is an area of ​​retail trade in which, more than in other types of activity, risk and prospect are intertwined, since the demand for flower products can serve as some barometer of people’s well-being.

According to experts, the volume of bouquets and arrangements sold directly depends on the level of financial well-being of the region, but the mentality of the nation also plays a certain role in this matter.

Like any other, the flower business has its own specifics, which are dangerous to underestimate. The country, for example, has not yet established standards for discarded flowers, although, according to professional florists, this figure is close to 10%.

This type of business is also attractive for its relatively small amount of start-up capital, which depends on the type of outlet and its location.

Where to start a flower business

Registration

The registration procedure is probably the easiest stage in this business. Register individual entrepreneurship in accordance with 52.48.32 OKVED “Retail trade in flowers.” You also need to decide on the taxation system (UTII or). If a businessman values ​​time more than money, you can entrust this stage to intermediary law firms.

After registration, an individual entrepreneur or LLC is acquired by the tax authorities. Self-effort takes two weeks. With the service offered by cash register sellers, the entire process takes up to 3 days.

It is worth remembering about printing. can work without it. However, there is one caveat: suppliers do not always agree to sell products without a stamp on the documents.

Documentation

A point of sale of any format must have documentation available to customers:

• Trade permit (it can be obtained from municipal authorities in accordance with Federal Law No. 381-F3).
• Conclusion of the SES.
• Review book.
• Price (optional).
• Bill of lading (not important for buyers).

Other papers ─ cash register, lease agreement, KKM registration certificate ─ are also better to keep in the store at all times. Personnel are hired only with health certificates (Order No. 302 N); badges with a photo and name are made for employees.

Certification

Certificates in the flower business are not required, but there is one condition. These documents inspire confidence in buyers, especially since this formality costs the business owner the cost of a photocopy. After all, many reputable suppliers undergo voluntary certification, and partners should ask them for a copy of the certificate when purchasing.

Flower business formats

Conventionally, the flower business is divided into four formats:

Small flower tents

Most often they are located near the metro or transport interchanges. The competition here is high, but there are enough buyers if you choose the right place.

In order for a small pavilion to generate good and regular income, we must take into account that flowers are a fragile and short-lived product, so first of all you need to worry about good turnover.

In this format, the basis of sales is cutting. The approximate range of mini-pavilions is 20 types of colors. Packaging plays an important role.

Small flower shops

They are placed in shopping centers and other busy places. Here, compared to a tent, there is a larger trading area, which means there is the possibility of expanding the assortment.

In addition to traditional cuttings, they also offer ready-made florist compositions, potted flowers, ceramics and souvenirs (mass-produced and original), gifts, flower soil, plant care products and related products.

By increasing the assortment of goods with a long shelf life, there is a good chance to balance all costs. In such a situation, it no longer so clearly depends on the volume of turnover, which will allow selling fewer flowers during periods of decline in demand, receiving a stable profit from related products.

This format requires appropriate investments - at least $20,000. The payback time for such a store also depends on the opening season, but in any case it will have an obvious advantage - a stable business with a wide assortment and a regular customer base.

Floristic online store

It is best to create with real experience working in an existing flower shop. The modern rhythm of life has turned flower delivery into a highly demanded service. In addition to stationary boutiques, this type of service is provided by online stores where customers place orders without leaving home.

Of all flower business formats, the last option is Requires minimum start-up investment. Without experience in selling specific perishable goods, established partnerships with suppliers and a client base, the likelihood of a successful start in this type of flower business is low.

Flower specialty boutiques

They open in a separate built-in room on the first floors of the red line of houses, in shopping centers and other crowded places. Such boutiques allow you to show all the aesthetic value of the flower business.

Everything here must be beautiful - from the room design developed by stylists to exclusive compositions created by master florists.

Experts estimate the cost of opening a salon to be at least $80,000. With the right investments, such a business promises to be stable, give people joy, and have good prospects for development.

Experts estimate the profit of salons at $5,000 per month. And if he is located near a business center and has regular corporate clients, designing all their events, his profit will be even greater.

Selecting a location

Finding an ideal location for a flower shop is a primary and not the easiest question, because there is high competition in this business, and if there are tempting offers from tenants, then the rental price will be appropriate.

The average price in the central regions for retail space with a high flow of customers is $1000-2000 per sq. m. m per year. And since the key to success in the flower business largely depends on the choice of your chocolate place, you need to pay attention to this point, inviting, if necessary, specialists with a city trade map for consultation.

A retail outlet can be set up:

• In a tonar - a small “house” - a caravan.
• The pavilion consists of modular sections.
• In a separate building (if you're lucky).
• In a built-in room in houses on the red line.
• In the mall.

The most profitable rent is in a shopping center; pavilions are a little more expensive. The fate of a flower shop is largely determined by the choice of location.

Underwater rocks

A metro station wouldn't necessarily be another plus. The direction of flow is important: people are going home or vice versa.

Good flow near the highway. If the place is closer to the center, then powerful traffic occurs where the direction of movement is towards the region; when located in residential areas, the center is chosen as a reference point.

Among the nuances - for a quick start, you need to keep an eye on duplicate competitors, as well as the possibility of parking in the store area.

When discussing terms and executing contracts, check whether utility bills are included in the total rental amount - another significant expense item. It is necessary to check whether there is a contract for waste removal, otherwise getting rid of packaging containers will be problematic.

For repairs, furnishings, and window displays, you can ask for rental holidays - a standard need for a trade organization. It is also worth clarifying whether the architectural plan provides for the placement of outdoor advertising.

When concluding a contract, it is advisable to use the help of a lawyer. This is not so expensive, and only a specialist can see all the pitfalls, right up to the end of the land allotment period from the lessor. After all, if in six months the building is demolished, such savings will come to nothing.

Depending on the size of the premises, the type of store, layout and equipment of the sales area, warehouse, and other office premises are chosen.

Arranging a florist's workplace in an area accessible for viewing his work will be an additional advantage.

You shouldn’t skimp on designer renovations of the premises so that the atmosphere and interior create a wonderful backdrop and conditions for sales.

Video - practical advice on the flower business:

Choice of equipment ─ according to clothes

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Point of sale equipment

To set up a flower shop of any type, you need special commercial furniture and equipment. Catalogs of ready-made kits for different retail spaces can be found on the Internet on the websites of manufacturing companies and wholesalers.

By purchasing furniture and equipment from a well-known brand, you can count on high-quality installation and guaranteed service. Give preference to suppliers with the possibility of serial packaging.

In addition to standard models of display cases, shelving, counters and refrigeration equipment of different prices and from different manufacturers, you can make a custom-made set that is ideal for the chosen area and the general concept of the establishment, because not every universal-purpose industrial refrigerator will look great in the sales area of ​​a flower shop.

In any case, the selected kit must be checked for strength and environmental safety. If the salon is VIP-level, the specifications of your equipment can be sent immediately to all available supplier companies, waiting for their commercial proposals. Careful selection of a potential partner allows him to understand that it is made on the terms of the tender.

It is dangerous to open without a refrigerator, even in a favorable season. It is inconvenient to purchase a ready-made refrigerator. If you make it for yourself, there is no need to rush to suppliers. It is advantageous to first build a chamber, the back side of which will be “blind”, and the others will be plastic “display windows” made to order. Doors are required.

After arranging the box, a cassette split system is installed. The total cost of a special refrigerator ─ 120 - 200 thousand rubles..

In mini-shops you can install (for the price of installing an air conditioner) a split system with a winter option.

Flowerpots and flower stands are required. Large refrigerators have racks with shelves on which glass vases are placed. Special designs will cost 4 thousand rubles. per unit, plastic flasks - 80 - 150 rubles.

The price of KKM ranges from 9,000 to 15,000 rubles.

Related costs. There is no flower shop without packaging; first of all, this is transparent cellophane No. 1 ─ the most current packaging. To begin with, you can choose universal shades of the color scheme of mesh, matting, felt, ribbon, sisal.

To design the compositions you will need tools and materials: gerbera wire, tape, tape, hot glue gun, pruning shears, scissors, special knives, wire cutters. This minimum set costs about 5,000 rubles.

Purchasing a cut for a small point costs about 40 thousand rubles. Fully filling a large store with goods ─ from 300 to 400 thousand.

Personnel selection – what kind of personnel and what do they decide?

The personnel issue in the flower business is as acute as in any other. The success of any type of flower shop business is created by talented specialists who are able to come up with designer bouquets and compositions of dried flowers, decorate any special event with flowers and plants, and advise the most fastidious customer.

Florist designers with experience and a solid portfolio can count on high salaries. If it is difficult for an entrepreneur to pay for the work of four such professionals at once (working in turns and in two shifts), some can be replaced with student assistants with corresponding responsibilities, part-time work and an adequate salary.

In general, employee salaries should be made directly proportional to profits: the minimum rate, and the rest ─% of revenue. Sellers must also undergo professional training, on which the mood of buyers and the final result will depend.

To ensure that the seller’s salary does not exceed the owner’s income, it is necessary to establish strict control over their work - for example, organize video surveillance.

And yet, a creative, favorable environment for staff is very important, because this type of activity is simply filled with emotions from constant contact with beauty.

The functions of the manager can be taken over by the business owner; accounting can be transferred to a company specializing in such services. For a complete set you will need a driver and a courier to deliver flowers.

Assortment of flowers and related products

In which store, what flowers are best sold? If you have no experience, a win-win option is mono-bouquets of roses or chrysanthemums of the same color (white, red, variegated). This is especially true for small retail spaces. Potted plants are rarely sought out here, and they take up precious space to increase the assortment.

For toner

The assortment is minimal, as is the area:

• Carnations (regular and bush) in basic colors.
• Chrysanthemum (bush and single-headed) ─ three types.
• Rose (regular and bush) - white and burgundy color ─ a must.
• Gerbera - different.
• Tulip (spring season).

For the pavilion

If the pavilion’s dimensions are not very different from the tent (up to 10 sq.m.), then the assortment will be the same as in the previous version. If over 18 sq. m, you can add orchids, anthuriums, irises, and other varieties of roses.

For the store

Potted crops (soils, pots, boxes) are sold starting from 30 sq. m. From 50 sq. m ─ full range:

• The whole cut is in a spacious refrigerator.
• Dried and artificial flowers. Potted crops, large-sized plants.
• Pots of all types.
• Soil, fertilizers, care products.
• Vases: standard, designer.
• Postcards.
• Popular decor for indoor plants.

A large store must have a gift wrapping service. Designer cards made from dried flowers, beads, beads, ribbons, floral paper and the imagination of the master are welcome.

Designer compositions made from cut flowers with the addition of fruits, dried flowers, sweets, and souvenirs are very popular today. The combined option looks expensive, with cut flowers and potted flowers in one set.

Purchase of goods

The main rule is not to limit yourself to one supplier, even if he has the perfect product. In case of force majeure, you can lose profit plus expenses for staff salaries and rent.

The ideal option is to select three main suppliers. The following countries are widely represented on the flower market: Russia, Ecuador, Holland. If one has problems, two-thirds of the order will save the situation.

Colombian products are very accessible in Russia. This product is suitable for pavilions, since it must be sold quickly and cheaply. Russian flowers are always more expensive. Potted crops - Holland and Russia.

You will have to choose the remaining suppliers at your own discretion, focusing on the prices and quality of the goods supplied.

Have a good start and prosperity with the world of beauty!

Video - flower business, owner reviews:

* The calculations use average data for Russia

331,000 ₽

Starting investments

265,000 - 330,000 ₽

53,000 - 111,000 RUR

Net profit

5 months

Payback period

To open a small flower shop with an area of ​​20 sq. meters will require 331 thousand rubles, which will pay off for 5 months of work. Net profit in the first year of operation will be 682 thousand rubles.

1. Summary of the project "Flower Shop"

Every year the volume of the flower market is growing, which indicates the active development of the industry. Today, the florist business is a popular and profitable type of business. The goal of the project is to open a flower shop in a city with a population of more than 1 million people. The main source of income for the establishment is the sale of flower products. The target audience is the city population aged 20 to 50 with an average income.

The main advantages of a flower shop:

minimal initial costs;

high profit volumes in the long term;

business profitability is 20-30%.

To implement the project, premises with a total area of ​​20 m2 are rented, located in close proximity to the shopping center. The initial investment volume is 311,000 rubles. Investment costs are aimed at the purchase of specialized equipment: arrangement of a retail outlet, purchase of flower products. Own funds will be used to implement the project.

Financial calculations cover a three-year period of operation of the project. It is expected that after this time, business expansion will be required. According to calculations, the initial investment will pay off in the fifth month of operation. Based on the results of the first year of operation, a net profit of 682,782 rubles and a return on sales of 21% are predicted. Integral indicators of project effectiveness are presented in Table 1.

Table 1. Key project performance indicators

2. Description of the industry and company

Flowers are one of the main attributes of the holiday. The tradition of giving flowers and decorating space with them is firmly established in Russia. Therefore, flower shops always find their customers, despite the season and economic crises. The demand for flowers is a kind of reflection of the financial state of society - the richer it is, the more flowers are bought. And at the same time, even during times of crisis, flower shops actively conduct their business - only the emphasis on sales shifts, preference is given to budget options, but sales volumes do not decrease.

Over the past years, the Russian flower market has shown active growth. The dynamic development of the flower market is evidenced by market volume statistics. The market volumes are increasing every year - during the period from 2011 to 2015, the volume of the cut flower market in physical terms increased by 1/3.

Figure 1. Volume of the flower market in physical terms, billion units, 2011-15.

In monetary terms, this growth is more noticeable due to the increase in prices for flowers. During the period 2011-2015, the market volume increased by almost 40%.

Figure 2. Value volume of the flower market, billion rubles, 2011-15.

Today, the entire Russian market can be estimated at 160 billion rubles in monetary terms and 35.8 tons in physical terms. According to analysts, the Russian flower market will continue to grow. According to the analytical company GLOBAL REACH CONSULTING, the real capacity of the domestic market is estimated at 40 billion dollars.

Thus, the flower business is regarded as one of the most promising, despite the risky component. The average profitability of the flower business is constantly growing. At the same time, the likelihood of risk increases. The main threats are associated with the pronounced seasonality of the business and the high probability of incorrect planning of sales volumes of flower products. Peak sales of flowers occur in February, March, May, September and December, and the summer months are considered the “dead” season, which can cause a significant reduction in profits. In addition, flowers are not stored for long - the maximum period for their sale is limited to one week. In case of excessive purchase of flower products, the store may suffer losses. However, sellers take this risk into account when setting prices, assuming that about 60% of flowers will not be sold.

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Another risk is heavy dependence on imports. Today, Russia ranks sixth in imports of cut flowers, and the share of imports in sales volume is about 90%. However, there is a positive trend in the share of domestic products. According to analysts, in the next ten years Russia will take second place in Europe in terms of imports after Germany. This risk consists of a possible increase in exchange rates, the likelihood of a ban on the import of flower products from some countries, tightening of customs policies, etc. Figure 3 shows the structure of flower imports by producing countries. The largest share of imports comes from the Netherlands - 44.7%, second and third places are occupied by Ecuador and Colombia with a share of supplies of 36% and 12.8%, respectively. Other countries account for only 6.5% of supplies.

Figure 3. Distribution of producing countries by volume of supplies in physical terms to the Russian Federation, 2014.

In the structure of flower supplies, 43% are roses. The second most popular flowers are chrysanthemums - 24%. The top three are completed by carnations, with a 22% share of supplies. In general, in recent years, the supply leaders have remained unchanged, but there has been a tendency to popularize exotic, unusual flowers. Recently, flower shops have been trying to diversify their assortment and attract customers with unique types of flowers.

Figure 4. Structure of flowers in the total volume of imports (in physical terms), %, 2014

Pricing in the market consists of two components - the volume of costs (exchange rates, customs duties, gasoline prices, etc. are taken into account) and fluctuations in demand - an increase in demand entails an increase in prices. On average, the pricing policy in the flower market implies a markup of 100-300% of the purchase price.

In most cases, retail sales of flowers are carried out in the format of flower pavilions and stalls - 70%, about 10% are in shops, flower salons and boutiques designed for the premium segment are less popular. Recently, online stores, which represent a less risky model of the flower business, have been gaining popularity.

Analysis of the flower market showed the relevance and demand of this business. The main advantages are the relatively quick organization and start of work, the absence of licensing of activities, a low threshold for entering the market, an acceptable level of initial investment, high demand for the product and the level of profitability. However, the disadvantages of the flower business should also be taken into account: non-standardization of products, high dependence on customs policy , exchange rates, pronounced seasonality, high level of competition.

3. Description of goods and services of the flower shop

The main activity of a florist shop is retail sale of flower cuts. For the flower business, a set of additional services is important, which form its competitive advantages. Additional services may include:

courier flower delivery service;

floral decoration for celebrations;

sale of related products (postcards, soft toys, candies, etc.);

gift wrapping;

making floral boxes with flowers and sweets;

original packaging of bouquets, for example, cone bags with a convenient handle or craft paper;

applying inscriptions and drawings to flower petals;

creation of floral compositions for decoration.

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The range of additional services can be much wider - it depends on the format of the store and its goals. To create a list of services in a flower shop, it is recommended to study the services of competitors. Today, selling standard bouquets is a losing business model. Modern consumers value creativity, an original approach and the exclusivity of the floral services provided.

List of flower shop services:

Sale of cut flowers(rose, chrysanthemum, tulip, peony, ranunculus, hydrangea, eustoma, carnation, gerbera, alstroemeria, narcissus, orchid, lily, freesia) taking into account the seasonality of flowers;

Gift wrapping of flowers and bouquets;

Preparation of floral arrangements and bouquets;

Sales of related products(cards, gift boxes with flowers and chocolates);

Delivery of bouquets by courier service;

Floral decoration for celebrations. Premises decoration services are provided upon prior order, taking into account the client’s wishes;

Order a bouquet by phone– to save time for clients waiting for the bouquet to be made, the store provides a pre-order service. The client only needs to stop by to pay and pick up the bouquet.

4. Sales and marketing of a flower shop

Statistics for medium-sized and large cities allow us to form a typical “portrait” of a flower shop client: 57.9% are men, 42.1% are women, the average age of the buyer is 35 years, material income is average. In accordance with the statistics provided, the target audience of the store is determined - the population aged 20 to 50 years with an average income level.

At the initial stage, you should analyze the competitive environment. This will allow you to assess the level of demand and business threats, develop your competitive advantages and decide on a marketing strategy. In order to create competitive advantages and develop your customer base, in the first months of work you need to rely on cheap raw materials, affordable additional services, unusual packaging, creative services presented specifically in your store.

When planning an advertising campaign, you should take into account that promotion channels such as advertising in newspapers, radio and television in the flower business do not bring the desired effect. This is due to the fact that buying flowers is often an impulsive phenomenon - a person passes by a flower stall and decides to buy a bouquet here. Therefore, outdoor advertising will be the most effective. In addition, one of the parameters that determines the competitive advantages of a flower shop is its favorable location. The most favorable location for a retail outlet is a pavilion at the intersection of several streets with a lot of passerby traffic.

In addition, it is recommended to create a group and profile on social networks that advertises the products. Creating a website for a flower shop is not at all necessary, especially if you are planning a small flower stall. Setting prices for the flower shop's products sold should be done taking into account competitors' prices. It is important that the pricing policy is flexible enough - this will satisfy demand in both the budget and expensive price segments. To stimulate sales of flower products, bonus cards, various discounts and promotions, and a loyalty program for regular customers can be used.

You should also consider creating your own logo and branded packaging, which will become the business card of the store. Development of an exclusive style, logo and original name will cost an average of 6,000 rubles. An advertising sign will cost around 20,000, including installation. Don’t forget about this type of advertising called word of mouth. Therefore, the best advertising will be fresh flowers and the professionalism of florists who can create beautiful flower arrangements.

5. Flower shop production plan

Opening a flower shop includes six main stages, including registration, choosing a location and premises, recruiting personnel, purchasing equipment, searching for suppliers of flower products, sales planning and purchasing goods. Let's take a closer look at each of them below.

1. Registration with government agencies. Retail flower trade is an unlicensed activity, which simplifies the process of collecting the documents necessary to open a flower shop. The organizational and legal form of an enterprise can be individual entrepreneur or LLC. For a flower shop, it is recommended to register an individual entrepreneur with a simplified taxation system (“income” at a rate of 6%). Types of activities according to OKVED-2:

47.76.1 Retail trade of flowers and other plants, seeds and fertilizers in specialized stores. This is the main activity. When diversifying your flower business and having additional services, you can specify the following codes:

47.78.3 Retail trade in souvenirs, folk arts and crafts

64.12 Courier activities other than national postal activities

74.10 Activities specialized in the field of design

82.92 Packaging activities

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It is not necessary to indicate the entire list of codes, but if you plan to further expand your business, it is recommended to enter all the listed codes that may be required in the future.

List of documents for opening a flower shop:

flower trade permit;

the sanitary production control program is obtained once after approval from Rospotrebnadzor;

contracts for deratization, disinfestation and disinfection;

contract for maintenance of the ventilation and air conditioning system;

contract for removal and disposal of solid waste;

internal documentation: disinfectant logbook;

hygienic permit from SES or relevant quality certificates.

2. Location and selection of retail premises. The main criterion for choosing a location is high traffic of people. This could be street intersections, an area near a shopping center or bus stop, or busy streets in residential areas. A retail space on the ground floor of a residential building is also suitable - as a rule, such premises are relatively cheaper. A room with an area of ​​20 m2 is suitable for a flower shop - this will be enough for a retail space and a small room for storing flowers. To implement the project, it is planned to rent premises near the shopping center. The area of ​​the rented premises is 20 m2, the average cost for a city with a population of 800-1 million people is 20,000 rubles.

3. Recruitment. The main employees of a flower shop are florists. It is recommended to take a responsible approach to choosing a florist and hire professional staff, since the quality of the services provided depends on them. If the store is open daily from 9:00 to 21:00, two florists will be required to work in shifts.

4. Purchase of equipment. In a flower shop, it is necessary to maintain a temperature from +5º to +8º C, which is comfortable for flowers. To do this, you will need to install a specialized refrigeration chamber. The cost of such equipment is 50,000-70,000 rubles, and installation costs an average of 20,000 rubles. To save money, you should consider purchasing used equipment - it will cost 20-25% less. You should also take into account the small work equipment that florists will need to make bouquets - rubles are allocated for this. Another important point is the installation of security and fire-fighting equipment, the cost of which will average 30,000 rubles.

5. Search for suppliers of flower products. This point is one of the key ones when organizing a flower business, since the operation of the store and the quality of the final product depend on the reliability of suppliers. The search for partners can be carried out through thematic forums and websites. Selecting suppliers is quite a responsible and painstaking job.

6. Sales planning and purchasing of flower products. Planning sales volumes is a very important stage, since the supply of flower products depends on it. Incorrectly calculated deadlines can lead to either store downtime or losses due to product damage. This leads to another task - an established system for the delivery of flower products. Please note that freshly cut flowers must be brought every 4-5 days. Thus, it is planned to make 5 purchases per month every 5 days. To fill a retail space of 15-20 m2, an initial purchase of approximately 70,000 rubles will be required. In this case, additional purchase of assortment will amount to 10,000-15,000 rubles.

Sales planning is based on the seasonality of the flower business. Peak sales occur on the following dates: February 14, February 23, March 8, May 9, September 1. Profit for these days can be 20-25% of the total profit for the entire month. In summer, demand drops significantly, although graduation periods and wedding days should be taken into account. An approximate graph of revenue volumes by month is presented in Fig. 5 – it shows peaks and valleys in flower sales.

Figure 5. Dynamics of sales volume of flower products by month

It is quite difficult to predict the income of a flower shop. In each specific case, it is necessary to carefully plan sales volumes, taking into account the price segment, region, competitors, etc. For forecasting in this project, average market indicators will be used. According to statistics, the sales volume in a stationary store per month is 200-250 bouquets. Based on the fact that the store will offer a variety of flowers - both inexpensive and premium - sales planning is based on a ratio of 60/40%: i.e. the number of inexpensive bouquets will be 120 pieces, and expensive ones – 80 pieces. The average price of bouquets in the inexpensive segment will be 300 rubles, in the expensive segment – ​​1,500 rubles. On average, monthly revenue will be 267,150 rubles.

Table 2. Planned sales volume of the flower shop

6. Organizational plan for a flower shop

To operate a flower shop, you will need to create a staff of employees:

Director– a store manager who combines the work of an accountant and a procurement logistics specialist. The director can be the business owner himself;

Florists– employees who are involved in arranging arrangements and selling bouquets;

• Cleaning woman(part-time), cleaning the premises 3-4 times a week.

It is planned to hire two florists who will work in shifts. Work schedule: 2 through 2. Practice shows that for a successful business, flower sellers must not only be able to make bouquets and get along with customers, but also know psychology in order to offer the bouquet that the client wants to buy. This point should not be neglected, so when choosing florists you should take it into account. The total wage fund will be 72,000 rubles, and taking into account insurance payments - 93,600 rubles per month.

Table 3. Flower shop staff

Since the list of services includes the delivery of bouquets, cooperation with the courier service is necessary. Currently, the market offers various options for courier services that are interested in cooperation with legal entities. The average tariff for 1 delivery within the city is 250 rubles. Typically, stores providing such services add a markup of 50-100 rubles. Since it is quite difficult to predict the popularity of this service, profits from it are not taken into account in this project. If the business develops successfully, it is planned to hire a courier driver who would deliver flower products. At the initial stage of business, it is not profitable to have such an employee on staff.

7. Financial plan for a flower shop

The financial plan takes into account all income and expenses of the project; the planning horizon is 3 years. It is planned that after this period the establishment will need to expand its business. To start a project, it is necessary to calculate the amount of initial investment. Approximately 43% of the initial investment is in technical equipment and store furniture; 45% of investments - for the initial purchase of flower products and the formation of a fund of funds to pay rent and salaries in the first months of work, for advertising and registration - 12%. Thus, the total amount of the initial investment will be 311,000 rubles. Own funds will be used to implement the project.

Table 4. Investment costs

Fixed costs consist of rent, utility bills, wages, advertising costs and depreciation. The amount of depreciation charges is determined by the linear method, based on the useful life of fixed assets of 5 years. Fixed costs also include tax deductions, which are not presented in this table, since their amount is not fixed, but depends on the volume of revenue. In the cost structure, the share of payroll is 47%, the purchase of flower products is 25%.

Table 5. Monthly expenses of a flower shop

8. Performance assessment

The payback period for the project with an initial investment of 251,000 rubles is 5 months. The net monthly profit of the project upon reaching planned sales volumes will be 156,000 rubles. Reaching the planned sales volume is planned for the third month of operation. Return on sales in the first year of operation is 21%. The net present value is positive and equal to 88,312 rubles, which indicates the investment attractiveness of the project.

9. Possible risks of the flower business

The flower business involves various risks that should be taken into account when planning:

Flowers are perishable goods. To avoid losses, it is necessary to constantly monitor the market and forecast demand;

The likelihood of receiving low-quality or defective goods. This risk can be reduced by choosing reliable suppliers and competently drafting the contract;


Cyclicality of the flower market and episodic demand (seasonality). It will not be possible to completely eliminate the risk, but it is possible to smooth out its impact by opening new business segments and introducing additional services;


Errors in estimating sales volumes, which can lead to the disposal of 60% of all flower products. It is possible to mitigate this risk if you collect statistical data: install a sensor at the entrance to the store that counts incoming visitors. These indicators and sales statistics will allow you to calculate the optimal purchase volume and draw up a weekly plan. Small flower shops adapt to the work format within 1-2 months;


High level of competition in the market. This risk can be reduced with a well-thought-out marketing strategy and achieving certain competitive advantages;


• Exchange rate fluctuations and the likelihood of tightening customs policy. It is possible to reduce the impact of this risk by diversifying suppliers and purchasing part of the goods from domestic manufacturers;
• Loss of space or increased rent. Since a favorable location largely determines the success of a business, changing it can entail significant costs. To minimize this risk, you should carefully select a landlord and enter into a long-term lease agreement.

The article very well describes the risks of running a flower business, but did not emphasize that one of the main factors influencing the success of this business is the location of the pavilion and the level of competition in the immediate environment. Why is this so?

First of all, because in large cities the population itself is heterogeneous. Neither by age composition, nor by income, nor by preferences. And this is important, since in different areas there is a different “average bill”, which directly affects the profitability of the business.

Secondly, where citizens with higher incomes live, in the revenue structure the share of bouquets with a floral component and having a higher profitability will be noticeably higher than in areas where mainly pensioners live.

Thirdly, it makes sense to focus on “related” products and services and increase their share in revenue, since in most cases, their “return on sales” is higher than the typical average markup for the main product.

Working on similar projects, I was often asked: what flowers are most in demand? What should be the minimum purchases and inventory balances? What should the markup be? Unfortunately, only practical experience or careful study of the market can initially answer these questions. At the same time, the “experience” is different in every city, in every district. This must always be kept in mind.

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