Becoming an entrepreneur is a long but rewarding process. You can sell just about anything you desire including flowers. Flower shops aren’t the most talked about startup, but they’re one of the most successful types of stores out there. After all, not many can resist having nice flowers in their home. But just like any other startup, there are things you need to do prior to opening shop. Here’s what you need to know about prior to opening your own flower shop.
Before You Open Shop
Before you open for business, there’s a lot of things to consider and decide on. As you continue to contemplate the name and find an ideal location, you also need to think about the startup costs. Typically, opening a flower shop can cost anywhere between $10,000 to as much as $100,000.
At first, you may not realize that a majority of this money isn’t going towards any fancy décor. It’s actually going to the necessary equipment to keep your flowers fresh. Some of the equipment you’ll be needing are coolers, sprinklers and shears. We’ll cover more of this in a little bit.
Set Up Your Supply Chain
Now that you understand the costs of opening your shop, it’s time to look into getting a supply chain. This can be either one of the easiest or one of the hardest tasks to accomplish. Though flowers may seem like a simple thing, you need to remember that there are all sorts of different kinds. You need to know what your target audience wants before investing in a fleet.
You want to make sure both your flowers and the truck drivers get to their destinations safely. Without the proper security measures, not only are you liable for the driver’s safety, you can also violate service protocols. A solution for the entire organization includes utilizing an ELD, or electronic logging device. This piece of technology records everything that happens during your fleet’s voyage to deliver your flowers.
Choose a Business Type
The next step in opening your shop is to decide what type of business you’re going to make it. You may be thinking that you’ve already established what your business is. However, we’re not talking about what your business is about. We mean the type of business structure it’s going to be. Before you can open any kind of store, you must establish you’re an LLC, sole proprietorship or a corporation. Here’s a simple breakdown of each of these business types:
- LLC – Also known as limited liability corporation, this is a type of business that protects you from various liabilities, like being sued. For budding entrepreneurs, this can be the best option to go with.
- Sole Proprietorship – A sole proprietorship is when someone owns everything and anything relating to their business. This means they’re also responsible for taxes, debt payments and other types of liabilities.
- Corporation – A corporation is basically a separate division of the overall company. They’re similar to a sole proprietorship where they’re taxed and vulnerable to liabilities, but they do have better protection and can make a mint more easily.
Be sure to research these three business types before coming to a final decision. While registering as an LLC is safest course of action, it’s entirely up to you which legal entity you choose.