How to Open & Operate a Financially Successful Florist and Floral Business Online and Off REVISED 2ND EDITION

Revised 2nd Edition

How to Open & Operate a Financially Successful

Florist and Floral Business

Both Online and Off

By Stephanie Beener and Constance H. Marse

How to Open & Operate a Financially Successful Florist and Floral Business Both Online and Off — REVISED 2ND EDITION

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Library of Congress Cataloging-in-Publication Data

Beener, Stephanie N., 1983-

[How to open & operate a financially successful floral and florist business both online and off]

How to open & operate a financially successful florist and floral business both online and off with companion CD-ROM. -- Revised 2nd edition / by Stephanie Beener and Constance H. Marse.

1 CD

Includes bibliographical references and index.

ISBN-13: 978-1-60138-904-6 (alk. paper)

ISBN-10: 1-60138-904-3 (alk. paper)

1. Florists. 2. Flowers--Marketing. I. Marse, Constance H., 1948- II. Title.

SB443.B44 2012

635.9068’8--dc23

2012038190

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Table of Contents

Preface

Chapter 1: Is This for You?

Chapter 2: Store and Décor

Chapter 3: The Ins & Outs of Daily Business

Chapter 4: The Product

Chapter 5: Arranging

Chapter 6: Customer Service

Chapter 7: Down to Business

Chapter 8: Legally Speaking

Chapter 9: Employees

Chapter 10: Marketing Matters

Chapter 11: Infinity & Beyond

Chapter 12: Straight from the Source

Conclusion

Appendix of Resources

Glossary

Glossary of Flowers

Author Biographies

Preface

Although it seems to be all smiles and buckets of flowers, the floral industry has some fierce competition. Many businesses fail because owners were not prepared for what the industry threw at them after they opened. This book will help you learn the many aspects of the trade to prevent the same from happening to you. It is wise to learn as much as you can about every aspect of floral commerce before opening your doors. You must make sure this industry is for you. A common misconception is that working with flowers is easy. Although it is fun, it is also extremely hard work, and shop owners must be determined and willing to sacrifice many hours when they first open. Many functions of the business might have little to do with working with flowers. You also must determine whether there is a market and whether you can specialize, find a specific niche to make your company more lucrative. Before opening, it is always wise to educate yourself so you will understand the different aspects of business, finance, accounting, legal matters, employees, customer service, suppliers, your shop, and product care. This book will introduce you to all the basic ideas and concepts you will need to start your own business. Keep reading to learn more.

Table of Contents

Chapter 1: Is This for You?

Getting Started

Florists do many tasks on a daily basis, and they do many periodically. Before you decide whether this business is for you, you need to learn the basic ins and outs of how it is run. It is certainly not all just flowers and arranging. Getting into the floral business also requires business knowledge. You will need to develop business and marketing plans. You will also will need to have a firm grasp on financing and accounting. Management skills are a necessity, especially if you plan to hire employees. You also must have strong customer service skills. A basic knowledge of the legal issues that can occur when dealing with people and business is essential. Having an eye on the future and is also ideal. We will touch on all these issues and more throughout this book.

Essential Factors for Success

The following six factors are essential to the long-term success of any business:

Passion is the prime ingredient. A successful business is more than a business to its owner.

A solid business foundation is built on a well-considered, strategic plan.

Excellent customer relations are the hallmark of success.

Quality, reliability, and service are emphasized.

Procedures, products, pricing, and all the strategic necessities of the business are regularly evaluated and monitored by the owner.

A flexible business remains successful as it adapts readily to changes in the industry, technology, and market.

First, let’s look at the type of business you envision to help you determine what will work best for you and your situation.

Types of Floral Businesses

Retail

Retail is the most common, and probably the most sought after, career in the floral industry. When opening a retail shop, there are a few factors to consider before making your final decisions.

You will want to begin by selecting a suitable location. Proximity to competition should factor into your chosen site. You do not want to be so close that you fail because loyal locals always choose this landmark shop over your new store, but you do not want to be so far out of town that you don’t have any traffic. You also might want to ask yourself if there is enough business for both of you.

Although many flower shops locate on a main street in town, you should consider all the options. Look at properties on the main street versus properties a few blocks off. Choose one that suits your plan and budget. When looking at properties, whether renting or buying, you also must keep in mind all the equipment that must fit into it. Figuring in the display space, refrigerated sections, workspace, and storage should all play a part in choosing the site. If you simply cannot afford a large space, consider renting a storage unit a few minutes from your store, which will enable easy and quick access. Prices for storage units range from a few dollars a month to big dollar units. Keep a record of everything that is placed into storage so that you only have to make one or two stops a day to pick up supplies.

Besides the location and equipment, you also will want to think about the atmosphere you would like to provide. When a customer walks through the door of your store, you want the ambience of the atmosphere you have created to envelop them. When creating the environment inside your shop, think about the location. If you are located in the countryside, a country theme would be ideal. If you are on a main street in the city, a higher-end, upscale feeling will work best. Whatever you choose, make sure it plays into the image you want people to remember when they leave your store. Create a look and include it on every marketing aspect of your business, such as signs and business cards. This will ensure that the impression your customers get when they walk into your store will be with them whenever they look at your business card or see advertising for your store.

In Short:

Although you may know that you want to work in the industry, be aware of exactly what you are getting into. You might think you want to cut fresh flowers each day in a retail shop, but after opening up, you might find yourself wishing you had gone into supplies instead. Do what will work best for you by considering your own personality.

Wholesale Florist

Wholesale is a business of perishables. If you plan to open a wholesale operation, you must be prepared to work around the flowers’ schedules. Wholesalers must get up very early to get the best picks at the flower markets. You also will need to be organized and efficient to pick the right quantities for your retailers. Since you most likely will be dropping off the fresh flowers directly at your buyers’ doors, you will be unloading a majority of your picks before they ever reach your warehouse.

Your warehouse space does not need to be huge. It should, though, be large enough to provide plenty of storage for some excess inventory. You always should have extra flowers available for retail customers that have last-minute orders and walk-ins. If they know you always have backup, your relationship will grow.

Your shop should have office space, because it is a good place to store business and inventory records. It is also a nice, quiet spot where you can come up with marketing ideas and stock marketing materials. Use a computer to store records so that physical files do not take up needed space. A computer will allow access to research on other competitors, retailers, or flowers you would like to purchase. In today’s world, having a website is almost a necessity, and a computer will allow you the freedom to create your own. Computers also can take orders, although you also still will need to take orders by hand.

Another big component to wholesaling is refrigeration. Your customers depend on the flowers being kept fresh for their customers. If your refrigeration is not 100 percent reliable, your customers will lose their customers. You eventually will begin to feel the loss on your end.

You need refrigerated storage in your store for your excess flower stock and make sure you have a refrigerator truck to carry materials and keep flowers fresh on the journey.

You will not need much extra stock — just enough to get by for those last-minute calls. Over time, you will see trends in which kinds of flowers you will need to store in your warehouse, such as roses, which retailers often sell out of on a daily basis.

If you are going into wholesale, you must be able to stand behind your product. You can do so by:

Ensuring deliveries are on time every time

Being flexible with your customers

Providing discounts for large or bulk orders

Constantly seeking and introducing new products to keep customers interested

Continually researching so you can educate customers on new flowers and plants

Making yourself available to customers

Holding a meeting with new customers so they can inspect your product themselves and ask questions

Keeping retailers interested by hosting events so they can see your product firsthand, which allows curious potential customers to meet you and see what you are all about

Trying to market yourself jointly with retailers, so you can split the bill, ads become cheaper, and your name gets out there

Keeping everything fresh in your business (take note that your customers are also running a business; no retailer wants a stagnant relationship, and neither do you.

Statistic

According to the Society of American Florists, as of 2012, 76 percent of U.S.-grown flowers sold in floral shops come from California. Only 2 percent are grown in Florida.

Greenhouse

Greenhouse owners find many advantages and disadvantages in this line of the floral business. If you live in a warmer climate, your stock can work year-round, and you often can grow and sell nearly any type of flower. Conversely, if you live in a climate where the winters are harsh, you might have to close up shop for a few months until it warms up again. There are always ways to make a greenhouse business work for you. Keep busy and non-busy times in mind. During busy times, such as spring when landscapers and homeowners alike will be busting down your door, you will want to make sure you have plenty of stock available. During slower times, you can switch inventory over to suit the holidays. Have pumpkins and hay bales for Halloween and Thanksgiving, and Christmas flowers available for the winter holidays. If your shop often gets so slow that you need to close down in the winter, you can rethink your strategy and add supply stock, such as pots, seeds, soil, tools, and garden furniture.

In Short:

According to the 2007 Census of Agriculture, total sales of floriculture, greenhouse and nursery crops in the United States totaled $16.6 billion, a five-year increase of 13 percent, while the number of producers dropped 9 percent during the five-year period to 50,784. The Department of Agriculture takes the Census of Agriculture every five years. The 2012 census is underway.

Wholesale Floral Supplies

If you love flowers but do not have a green thumb, you always can get into the wholesale floral supply side of the market. The supply side is often a win-win situation for owners. You do not have to deal with daily store life, such as customer walk-ins, like a retailer does. You also do not have to worry about perishable product. You can use your creativity when choosing stock. You can open up a store to sell supplies to the public, or you can maintain a warehouse. Choices are limitless.

Practical Pointer

If you are still in school or do not plan to open your business for quite some time, it never hurts to get some hands-on experience in an established shop. You can still keep your day job, but spend an evening or two a week soaking up practical knowledge that will be useful in your future.

For wholesale suppliers,