How to Use Working Capital for Your Florist Business | Fora Financial Blog
How to Use Working Capital for Your Florist Business
February 26, 2019

How to Use Working Capital for Your Florist Business

Is your florist business in bloom? Perhaps you have 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. Plus, it will allow you to invest in your company’s short- and long-term goals.

There are numerous financing options available for florists. You could receive a loan from an alternative lender, a merchant cash advance, sba loans, or a line of credit. Before you apply, make sure that you conduct considerable research. That way, you can ensure that you’re choosing an option that meets your needs, and that you will meet the application requirements (like credit score and monthly sales).

Keep reading to find out how your florist business plan can improve with a little help from working capital solutions!

9 Ways to Use a Loan in Your Florist Business Plan

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 fresh flower arrangements for their homes. Get ahead of schedule by doing some sales forecasting so that you can receive financing before busy seasons. You could use this money to hire additional employees, purchase extra inventory, or update interior decorations to match the season if you’re a retail florist. Don’t run the risk of being unprepared; you could lose out on business to other local florists!

2. Invest in Marketing Strategies

Florist business services may not always be top-of-mind to your target market. They might not research florists until they have an event to attend or have a loved one they want to congratulate or send well-wishes to.

Therefore, 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 and increase sales. This is why it can be a smart area to spend working capital financing on!

3. Purchase Floral Inventory

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

Make it easy for customers to receive their orders by 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 with your floral designs, the better reception you’ll receive from customers.

Of course, paying for these modifications can add up. But if you want your florist business to be a staple in your community, it’ll 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, but it’ll be worthwhile once your customers are able to easily place their orders.

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.

7. Hire Additional Employees

To provide great customer service, you might benefit from hiring more employees to fill orders, answer customer questions, and maintain your store. If you currently feel understaffed, you might feel overworked, and it could be affecting your customers’ experience. By hiring a few more sales associates, you can ensure that your business runs smoothly!

8. Expand Your Business

Loans for florist businesses enable business owners to take their companies to the next level. When you started a business, you probably had short term goals. But now, your business could be outgrowing its current situation, leading you to consider your next move.

For example, right now your business might be exclusively online, or perhaps you have one brick and mortar location. If business is booming, you should consider expanding your existing business! You could open another florist shop or expand your existing location to a be a larger space.

9. Use as Cash Flow

As a business owner, you know that cash flow is king. Without it, running your business is impossible. So, using your business financing, you can have additional cash flow available. This can be put towards making payroll, paying bills, or affording last-minute expenses.

You’ll be glad that you have cash flow to work with, and your business’s products and services will likely improve, too!

How Will You Invest in Your Floral Shop with Business Financing?

Now that you’ve learned about the how you can use a loan for your florist business, review your florist business plan. That way, you can determine how you should utilize financing. With additional working capital, you’ll be able to watch your business blossom!

Are you amongst the many small businesses in the florist industry? Tell us about how you’ve used additional financing in the comment section below.

Editor’s Note: This post was updated for accuracy and comprehensiveness in February 2019.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].