Florist / Flower Bouquet Gift Shop Business Loan

Flowers are not only beauty to behold but also an excellent business opportunity to explore. The use of flowers in India is rooted in traditions and culture where no celebration or ritual is complete without flowers, not to mention flowers used for decoration or simply admired for its aroma and beauty. Right from your street corner flower shop to the well-appointed florist, the floriculture industry is dynamic. Thus you have the traditional brick and mortar florist as well as the online ones that also double as a gift shop. Different types of flowers being seasonal; there is an element of volatility in the florist business. For the online variety, creative innovation in floral designs and bouquet and timely delivery is crucial to the business.

Components of the Florist Business Model:

The key to a successful business in flowers is acquiring adequate knowledge about them. Training in horticulture will not only provide insight into the farming aspect of flowers and ornamental plants but will also provide with enough inputs for flower types, creation of event-specific floral designs for display and concepts in design and event planning. To run a viable floral business, you need to consider these points.

• Business Plan: This should be ideally based on the availability of flowers in your vicinity and the type of niche you wish to create. Selection of the right flowers to use and market with creative designs with proper marketing and advertising strategy will enable you to source the right finance for your business.
• Investment Required: Like every business, the florist and gift shop finance has two primary components – the fixed capital and working capital. The business further could be independent retail or a franchisee, quite prevalent in the Indian context. Funding for both components is important. While a suitable term loan can look after the fixed assets, the working capital loan, especially for inventory an important cog in the wheel can be financed through Overdraft (Line of Credit) or a Cash Credit facility.
• Setting Shop: Flowers are delicate and perishable, vulnerable to the elements of nature. Location of the shop and amenities are important for the maintenance of inventory as well as ensuring abundant footfall. A 300 Sq Ft. covered space in the ground floor with a frontage of over 10 ft is ideal. The inventory, apart from flowers, is baskets, pottery, wrapping paper suitable cards and decorative items, not to mention other gift items.
• Creative Designer:  Manpower selection is critical to the business as, not only the quality and variety of your flowers is essential, creation of attractive floral designs and bouquet will help draw discerning customers in hordes to generate ample profit for your business.

Florist Franchise in India:

The organized Florist business in India that has worked successfully is the Franchise model. Flower as a gift has no dearth of takers, with a plethora of occasions and days all through the year. The online facility has added to the spread of this model further with a pan India reach. The key advantages of the franchise model of Flowers and Bouquet are:

• Brand recognition.
• Online and eCommerce support
• Workforce
• Marketing and visual merchandising support.
• Software and CRM support.
• Quality control and upkeep of the store.

Items of customer delight:

Your florist not only caters to the visual aspect of aesthetics but is also a storehouse of other paraphernalia, turning it into a great gift. The inventory is impressive:

• An assortment of fresh flowers.
• Designer flower arrangements and Bouquet
• Artificial and dry flowers.
• Glass and ceramic vases.
• Potpourri
• Candles
• Toys and other variety of gifts.

Business Loans for Florist / Gift Shop Business:

The two primary ways of funding this business are looking for angel finance or lenders like Bank, NBFC, and Fintech companies. Though seeking credit from the banks is the first thought, Fintech companies like Lendingkart have created a niche clientele in small business loans with innovative loan products with very liberal eligibility norms, bare essential documentation, and super-fast processing transparently with no hidden costs involved.  The important takeaways are:

• Competitive interest rates.
• Completely online processing.
• Creditworthiness based on data analytics.
• Processing in 72 hours.

Reasons for florist Business Loan:

Every business needs fund to run and thrive. Florists are a different breed as the main inventory is highly perishable and prone to seasonal fluctuations. Accordingly, the reasons for which a florist would seek credit are:

• Emergency funds to tide over seasonal troughs common to the business.
• Equipment and technology upgrade in floriculture is expensive, giving rise to loan proposals.
• Payroll management and hiring of skilled staff.
• Increasing stocks for peak occasions like Valentine’s day.
• Expansion, marketing, and advertisement.

Eligibility Criteria:

• Minimum age of the applicant over 18 years.
• Minimum quarterly turnover over90K
• Ownership –Proprietor, Partner, Private Limited, and Limited Liability Company.
• Location of business should not be in the negative list.

Documents Required:

It is dependent on the ownership constitution and the type of lender you have approached. The enumerated list is only indicative, and the lenders may seek specific documents to meet their needs.

• KYC documents of the borrower and business plus PAN card.
• Aadhaar card of the proprietor.
• Copy of Partnership Deed.
• Copy of Business certificate and Trade license.
• Applicable Tax compliance certificates.
• Different financial statement specified by the lender.