Flowers are always in demand. Be it for decoration, weddings, funerals, corporate meetings, birthdays, etc.; there are flowers for every occasion and situation.
Setting up a flower business is the best idea for people who are passionate about flowers and want to turn their passion into a profitable business. Owning a floral business is not just about organizing and selling a bouquet. There is much more to it that you must learn before opening a flower shop.
If you’re in Australia and want to set up a flower business here, this article is for you.
Australia is a major producer of cut flowers with the biggest flower market. The climate of the country allows the floral industry to rise rapidly. As per IBISWorld, the estimated value of the floral industry in Australia is around $871 million, with 2,751 businesses.
So, if you are enthusiastic about setting up your flower business in Australia, keep these 5 tips in mind:
- Identify and Analyze Your Target Audience
The better you get to know your target audience, the more you can focus on how to convert and retain them. After all, the customer is the king who will decide the direction of your business.
To get more precise details about your audience:
- Know their gender, location, age, nationality, and hobbies.
- Think about how your product will be helpful for them.
- How much will they spend on a single flower or a bouquet?
- Do demographic research to check if it is suitable for you to open a flower business in a particular area.
Here are some of the ways to help you define your target audience:
- You can take the help of tools to identify the customers who will be interested in buying flowers from your shop.
- Study your competitor’s data to get more understanding of your customers.
- You can also search for florists in nearby areas to take a hint at how the floral business works. For example, if you search for flower delivery melbourne, all florists in the Melbourne area will appear in your search results.
- Use social media channels to review your competitor’s profiles and find relevant audience data.
- If you have a website, Google Analytics is the best tool to provide access to data.
- Decide a Name for Your Flower Business
An entrepreneur must consider numerous aspects while opening any business, company, or shop. And the most important is deciding on a name for your business.
As of now, more than 300,000 million businesses are operating in Australia. So, imagine the efforts you must take to make your business stand out.
Here are a few things to consider while naming your business:
- Choose an easy to remember name
- Don’t pick a name similar to your competitors
- Check whether the name you have decided on is available to register
- Find out if you must register your business’s name with ASIC (Australian Securities and Investments Commission)
Although finding a perfect name for your business is challenging, remember it is the first step to building your brand.
- Product Pricing
Setting the correct product price is essential to sustain your business performance and growth.
If you charge more, you will have trouble selling the product. While on the other hand, if the prices are too low, you won’t be able to profit.
Deciding a price for your product is a crucial component of any business strategy. Here are a few things you need to know clearly before pricing your products:
- What is the average cost of production?
- Measure your product value.
- Calculate how much your customers are willing to pay for your product.
- The total expense to run a business
- Comparing and analyzing competitors’ prices.
Remember that these prices will not remain constant. The prices fluctuate with the increase and decrease in demand and sales.
- Calculate Your Expenses
The estimated cost of opening a flower business in Australia is between $10,000 and $50,000.
The following are the components that are included in the cost:
- Refrigeration units to keep flowers fresh for a longer duration
- Cost of rental space
- Supplies to arrange flowers like floral tape, vases, wrapping paper, ribbons, scissors, etc
- Purchasing fresh flowers from wholesalers
- Employees Salary
- Cost of promoting your business
Having a good understanding of your expenses will help you run a successful and profitable business.
- Business Promotion
Once everything is finalized, it is time to market your business. Some of the tips to successfully promote your floral business are:
- Conduct market research to know your customers.
- Get involved with people and let them know about your business.
- Highlight your business USP (Unique Selling Point).
- Stand out from your competitors.
- Use traditional advertisement methods such as newspapers, door-to-door, etc.
- Set up an engaging and interactive eCommerce website to attract online traffic.
- Use social media channels to reach the target audience.
- Make your presence in floral marketplaces.
By taking the help of these steps, you can successfully promote your floral business and take it to new heights.
You must have heard of the quote, “The best time for a new beginning is now.” So, what are you waiting for?
If ever there is an excellent time to set up a flower business, it is now.
Setting up any business takes lots of time and effort. There will be challenges that you have to face. However, it is worth the effort if you have the passion and zeal to make it work.