How to use working capital for your florist business
Is your florist business in bloom? Maybe you have a myriad of bright ideas, but don’t have enough financing to execute them. If this is the case, we’re here to tell you why your flower shop business could benefit from receiving additional working capital.
By applying for financing from a lender, your florist business can make investments that will make you stand out to new and existing customers. Read this post to find out how your florist business plan can improve with a little help from working capital solutions:
1. Have money for holidays and busy seasons – The flower business booms around romantic holidays like Valentine’s Day, or during the summer when patrons like to purchase beautiful arrangements for their homes. Get ahead of schedule by having financing on-hand during these times. You could use this money to hire additional employees, purchase extra inventory or update interior decorations to match the season. Don’t run the risk of being unprepared; you could lose out on business!
2. Invest in marketing efforts – Florist business services may not always be top-of-mind to your customers. They may not consider researching florists until they have an event to attend or have a loved one they want to congratulate or send well-wishes to. This is why you need to make sure that your flower shop business is regularly advertised. Update your Yelp listing, create sponsored Facebook and Instagram posts and send out direct mail pieces with coupon offers. Creating a diverse marketing strategy will help you reach as many customers as possible, which is why it can be a smart area to spend working capital financing on.
3. Purchase floral inventory – In order to run a flourishing flower shop business, you’ll need to receive consistent floral inventory shipments. Chances are, this is one of the main areas that your business spends money on, and it’s a cost that isn’t going away. Being low on inventory could mean having to turn-away customers, which should never be an option. Apply for working capital, and you won’t have to worry about affording inventory expenses.
4. Offer delivery services – Consider investing in delivery services, if you don’t provide them already. Customers will appreciate being able to send floral arrangements to loved ones, and may not have time to physically pick up orders themselves. By introducing delivery services, you’ll be able to accommodate customers who may not have visited your business otherwise.
5. Include customizable options – If your floral arrangements are mass-produced; your customers will likely visit a floral business that provides personalization. Capitalize on this market by purchasing items to create bouquets for birthdays, graduations, funerals and other occasions. Don’t just stick to basic options; the more creative you are, the better reception you’ll receive from customers. Of course, paying for these modifications can add up. If you want your florist business to be a staple in your community, it will be worth it to use working capital for these costs.
6. Pay for online ordering systems – Want to streamline your flower shop’s ordering process? Take it online! Paying for order management software may seem like a costly investment at the time, but once your customers are able to easily place their orders, you’ll find that it is well-worth it. This is a great initiative to start once you have access to working capital financing. That way, you can pay for the online ordering technology, without running out of money for routine costs like rent, inventory and payroll.
Now that you’ve read about these six ways to use working capital for your florist business, review your florist business plan, and determine how you could utilize financing. With additional working capital, you’ll be able to watch your business blossom!