The Key Factors For The Success Of A Business

Having a good idea for a business to open, and finding a profitable business idea, are things that cannot be invented and are not due to chance.

Indeed, to find the right business idea, you will certainly have to ask yourself about your passions, your tastes, your aspirations, but also on little more materialistic and concrete elements.

A concept differentiated from the competition

You will first need to identify a differentiated concept, or a niche in which the competition is weak.

This is what will allow you to impose yourself on the market against your competitors, and therefore to have a larger customer base, synonymous with success in your business.

You will indeed have to be original in order to stand out from the competition, if not on the products sold in themselves, at least in the concept of your store or the additional services offered. Otherwise, you will have to establish yourself in a sector where competition is not too strong but without this being a sign of consumers’ disinterest in the product. It’s all a question of balance.

Attractive margins or purchasing volumes

Next, in trying to come up with a profitable business idea, you will need to consider possible margins and / or sales volume.

Indeed, if we are aiming for good profitability, we must either have attractive margins, or large purchasing volumes (that is to say large or recurring orders), or, better still, combine the two .

A location in line with the image and the target

Also pay close attention to the location of your business. The (geographical) position must be in perfect agreement with the positioning (marketing).

This means that the place where your store will be located must necessarily be in line with the image of the brand and the target. For example, we do not sell a product intended for rural retirees by setting up a store in the Marais in Paris. Likewise, setting up a concept store that sells Japanese bicycles and cardboard furniture is unlikely to work in a small town of 12,000 inhabitants.

A controlled working capital

Another point to keep in mind: controlling the Working Capital Requirement (WCR).

This obscure acronym corresponds to the cash mobilized by stocks and cash lags linked to payment terms.

Here you will have to control the stocks, and negotiate with your suppliers to obtain advantageous payment terms.

Strong growth potential

Finally, in order to determine which business to open, it is essential to examine what the growth possibilities are.

We will of course favor a business that can easily support the opening of many other points of sale, or even that would be available as a franchise.

Read More

Open A Florist And Make A Business Plan

You want to become a florist, but you ask yourself many questions: is it a profitable activity, what is the potential of the sector, how to make my business plan of florist?

You are in the right place !

In this article, we’ll give you some insight into the market and its trends, as well as some practical tips for carrying out your market research and your florist business plan.

The flower market and its trends

The flower market has significant potential: in fact, it is estimated that 92% of people buy potted flowers or plants at least occasionally , whether for themselves or as a gift.

Regular purchases, mainly from the florist

The most common purchase frequency among the French is one purchase every 2 to 3 months, mainly from florists even if other distribution channels are gaining ground:

  • 87% of French people visit a florist at least from time to time (including 80% to an independent florist and 20% to franchised florists)
  • More than half of French people (52%) frequent both the network of florists and other networks (garden centers, supermarkets, markets, etc.)
  • Independent florists are the preferred network for bereavement or event services.

A declining average basket

Even if the sector is resisting rather well, the crisis has still had an impact on the level of the average basket of consumers. According to a study of this sector revealed by the CEP, we learn that 61% of florists believe that their sector is in decline (difficulties which are less noticeable on mourning: 59% see this activity stable or growing).

Added to this is increased competition for florists. This competition comes mainly from franchised stores and specialized department stores, but also from the internet and supermarkets which are creating a downward trend in prices.

The need to do market research before opening a florist

Performing a local florist market research is essential in your approach to opening a flower shop.

Indeed, the market study will push you to analyze the local market in depth to verify that your project is commercially viable.

This will allow you to answer the following questions in particular:

  • What is the potential of the catchment area around my business premises?
  • Who are my local competitors? What is their commercial strategy (product range, communication, price level, services offered)?
  • How can I stand out from the competition and create my clientele?

You can do this market research yourself or have a professional help you. We also advise you to talk to other florists in order to get a more precise idea of ​​the constraints of the profession.

If the market research confirms that your project is feasible, the next step is to make a business plan .

Read More