Are you looking to set up a flower store that sells retail cut flowers or display foliage? The demand for florists is rising, particularly selling flowers as arrangements and through online retailers. A business structure for a florist store can come in many different shapes and sizes. In choosing the best business structure for your florist business, you should ensure that you have a basic knowledge of all the options available to you. Two options from which you can choose are those of a sole trader and franchise as explained in this article.

Operating as a Sole Trader for a Florist

If you are just starting in the florist business industry and are looking to gain the confidence of the local community, then a sole trader business structure may be most suited to your needs. Reputation for quality is vital in the flower retail industry, as word of-mouth recommendations play an important role in securing return customers. As a sole trader, you will have complete control over the structure and mode in which your flower retailing business operates, and your customers will be able to associate your product and service with you directly.

By choosing a sole trader business structure, you will be intrinsically intertwining your business with you as the business owner. A sole trader will have access to all profits made by the business. It should be noted that a sole trader business structure carries with it the risk of unlimited financial liability. Consequently, should you be unable to pay debts from the revenue of your florist business, then the money will have to come out of your personal account. Therefore, prudent and cautious management of business is required by sole traders.

Franchising your Florist Business

Alternatively, you may wish to choose a franchise structure for your florist business. This will allow you to rely on the goodwill of an already established business to gain a loyal and solid customer base quickly. Through expanding your business as a franchise, you will need permission from the franchisor if you wish to sell your business, and may be subject to a non-complete clause should you choose to leave. If you are running a successful floral business, you can also choose to set up a franchise network.

The benefits of joining a franchise are many. One of the main obstacles in the way of starting a florist business in gaining regular and loyal customers. Therefore, by joining a franchise, you will take on the reputation of an already established and trusted brand. Also, sourcing products will be cheaper and easier as a franchise will buy in bulk for all the franchisees.

Key Takeaways

Sole traders and proprietorships have long characterised the flower retailer industry, and most flower stores are small, privately owned operations. If you are looking to expand or change business structure, get in touch with our business structuring lawyers. If you are looking to move your flower retail store online as an internet retailer, we can also assist with your online legal documents, including Privacy Policy and Terms of Conditions.

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