Do you run a flower or plant company? Perhaps you are a florist offering beautiful blooms to your local community. Or, you have managed to create a national brand that sends greenery straight to people’s doors.
Either way, you likely understand just how tough it can be to budget appropriately. As a florist or plant-based business, you have a lot to think about, from marketing to appropriate pricing to ensuring you don’t overbuy flowers and have to watch them wilt.
To feel more in control (and reduce lost costs), here are some smart budgeting tips.
Separate Your Finances
One of the most important things you can do as a florist or plant business is separating your own finances from the business’s.
This is because it protects your personal assets from any business liabilities. Plus, doing your taxes will be a lot easier if you have separate accounts. You’ll have a much easier time understanding where your finances are at both personally and professionally, which in turn makes making financial decisions easier.
Struggling with personal finances?
Both your business and personal finances matter. If you are struggling with your personal finances, it’s best not to eat into the business pot, as that should be strictly for the floral and plant-based company’s funds. It’s a sticky road to go down.
There are ways to help you manage your personal finances better. For example, if you have a variety of debts and want to make payments more manageable, you can use a debt consolidation service like Achieve. Not only can their consultants consolidate all debts into one easy monthly payment, but they can also negotiate lower terms so you don’t end up paying as much. For individuals with businesses, this kind of financial move makes a lot of sense, as it clears up some stress.
Create a Strict Budget
Every business, including those selling plants and flowers, needs a budget for optimal financial health. Of course, every business’s budget will look slightly different, even when looking at florist to florist. Generally, this is what you should include.
- Cost of goods sold: This includes everything involved in selling the plants/flowers, such as vases, ribbons, wrapping, and flowers. Should be around 30-40% of your budget.
- Payroll: This is the salary paid to you and any employees. This should cost 25-30% of the budget.
- Marketing/administration: Any marketing or admin you do. Around 5-10% of your budget.
- Overheads: This covers retail space and utility bills. Should amount to 10-15% of the budget.
- Net profit: The overall profit you make. This should be anywhere between 10-20%.
Keep in mind that these percentages can vary significantly depending on your own florist or plant business, but it helps to have an insight into the average. You might find that you need to spend more on overheads and less on marketing because you are in a very busy city center with a lot of foot traffic, for example.
Track Data to Avoid Over-Purchasing
If you have run your florist or plant-based business for a while, you should have a lot of useful data at your disposal. Don’t waste it. With this data, you have real insight into how much product you should be buying at certain times of the year. Pay attention to especially busy periods, such as:
- Valentine’s Day
- Mother’s Day
- Christmas
- International Women’s Day
Once you know the average amount you sell during each period, you can be more accurate with how many flowers you order vs how many you end up selling.
Aim for Larger Deliveries
Sending out small deliveries will only cost you more and more over time. When scheduling, it’s best to consolidate the deliveries as much as possible so that you don’t have to pay the high costs.
You could even try consolidation shipping, which involves a single delivery company organizing transportation for several small businesses at one time. This is especially useful if you don’t always fill up a delivery truck, as there’ll be lots of space for another business’s stock, and both parties will inevitably save money.
Offer Subscription Plant/Flower Services
Predictable cash flow is one of the hardest things any florist can achieve. While you can never know for certain how many flowers you might sell in a single day, you can offer subscription services to gain a better idea (and increase sales).
Subscriptions = guaranteed income
With a subscription service, you know for sure what revenue is coming in each month. As a result of this, you can manage your inventory better and gain more loyal customers.
Make the Most of Older Blooms
When budgeting for your florist or plant business, one of your biggest concerns will naturally be reducing as much waste as possible. After all, there’s nothing worse than having to throw a load of your product into the trash because it didn’t sell well enough.
There are some ways around it.
- Drying flowers: With flowers that are getting a little old, you can dry and press them before turning them into something crafty, like a flower frame. You could sell these alongside fresh flowers and plants.
- Using the petals: There are several ways you can use the petals, such as making potpourri.
- Sales: If the flowers are reaching the end of their life, you can simply put them on sale so that they will sell out faster.
Buy Flowers Wholesale
When you’re in the flower and plant business, it’s important to form strong business relationships with farmers so that you can purchase the plants wholesale. This works for your budget because buying wholesale tends to mean paying less. That’s especially true if you set up a regular purchasing plan. Over time, the lower price per stem will significantly reduce business costs.
Budgeting as a Florist or Plant Brand: Final Thoughts
Budgeting for a florist or plant business takes dedicated resources and planning. Flowers wilt and die, so it’s up to you to create a plan that maximizes your profits. With the right structure, your brand can bloom.
