Introduction on how to start a flower shop business in India
The major objective behind beginning any business is money; hence whenever any businessman wants to start as a new business, one of the main questions that they usually ask is how commercial the business is.
This blog will also help entrepreneurs who are planning towards starting a small flower shop. They might be interested to know how much they are estimating to earn annually from the business.
The truth is that there is such a fixed proportion of earnings when it comes to how much a small flower shop can approximately get. There are some aspects that we are planning to consider now before giving an estimate about the profits which a small flower shop gets yearly on an average and these factors are:
How to start a flower shop business
License, permission, and registration for flower shop business
You need to apply for the PAN card, Aadhaar card, registration, MSME Udyog Aadhar registration, BIS Certification, required tax liabilities, new bank account, and local municipality permission.
The size of the small flower shop
The small flower shop refers to the limit of the amount the shop is estimated to make. But it is significant to point out that ‘small’ in this context is a relative term. Some flower shops may plan to operate as mom and pop shops with no proper structure, and they can even operate as a well-organized business with the proper building. In such a case, the amount they are could earn will definitely vary.
The location of the small flower shop
When it comes to planning for a new business, location plays the main role which is why market analysis with the proper survey is essential. For example, the amount a small flower shop which is established in a low traffic area makes annually will be far less as compared to the income a small flower that is located in a region of high footfall will make.
So, if you want to make it big with your small flower business, then you must be ready to rent a shop facility in a high traffic area, a location with the right demography of people with the purchasing power. Please note that you are going to be paying more to rent a store in a high – traffic area as against the rent you are expected to pay in a low – traffic area.
The type of flowers and other products retailed in the shop
Another crucial factor that will determine the amount which a small flower is expected to make yearly is the variety of flowers that you sell. You are aware that many small flower shops which are into retailing of all types of cut flowers, potted plants, floral arrangements, and artificial flowers.
The profits you are thinking make selling these various types of flowers will be separate when compared to the revenue a small flower store that sells fresh flowers is estimated to get.
Other related products and services offered by the small flower shop
Apart from retailing a wide range of cut flowers, artificial flowers and potted plants, retailing products such as flower pots and vase could definitely boost the amount you are planning to make from that small flower shop. So by offering delivery services, will aid you to make more money compared to your competitors.
The management style of the small flower shop
Another key aspect that will determine the revenue of a small flower shop is expected to generate yearly is the management style of the flower shop. Believe me, the success you will get when you appoint a good manager is comparatively less if hired an average or bad manager, even if you give the managers the same resources to work and the same products to sell.
The Business model of the flower shop
There are many business models that a small flower can adopt and such a business model offers various results. For instance, the amount a flower shop make yearly by operating an online flower store with deliveries will be different from the revenue with a strictly brick and mortar store makes yearly.
The advertising and marketing strategies adopted by the small flower shop
Another key aspect that will decide the amount a small flower shop can gain yearly is the promotion and marketing strategies that you use for the store. Trust me, there are many advertising and marketing strategies that could support businesses to enhance their earnings, but you can estimate to spend more.
But the results you will definitely justify the amount you spent on marketing and advertising. Of course, you need not expect that a small flower shop which is engaging in aggressive promotion and marketing to get the same amount annually with a small flower shop which is passive with its marketing and advertising.
The cost or Investment to start a flower shop business in India
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In the flower shop business, you need to invest Rs. 1 lakh to Rs. 3 lakh based on the scale of the business. You need to invest the amount for maintaining the flowers, transportation, marketing, advertising, promotions, packaging, etc.
The cost of renting a shop is Rs. 50,000
The cost of getting different types of business is Rs. 30,000
The cost of promoting the business is Rs. 10,000
The cost of packaging flowers is Rs. 5,000
The cost of transportation is Rs. 5,000
The estimated profit margin for a small flower shop
In order to compute the profit margin from a standard small flower shop, you must be able to place a figure on the recurring and ongoing costs of operating the flower shop. Generally, for a small flower shop, your income is sometimes expressed like Cost of Goods Sold. A 40 percent COGS is that if you sell an Rs. 100 arrangement, Rs. 40 of that is the product that goes into it.
Sometimes profit is expressed as mark-up. Many in the industry advocate a 3x markup on flowers, 2 x markup on hard goods, and 20 percent labor. As a matter of fact, a small flower shop can make a profit margin of up to 70 percent on the cost of flowers & supplies.
Where you can sell your flowers
You should consider allotting your flower shop business within the local wholesalers and the retailer. You can even deal with the supermarkets or shopping malls nearby to keep your product in proper circulation.
In developed or developing regions people prefer buying flowers through online stores. Thus, you can sell from some online stores too. Finally, also keep an eye on international market trends and needs. Restaurants, hotels, coffee shops, clubs are chief buyers of flowers, especially for decoration purposes. So, you may sell them as well. We hope this compressive blog of initiating starting the flower shop business will assist you in taking a firm decision.
To reduce the flower business cost and increase profits, you can start growing flowers in the Home Garden.