Risks of Operating a Flower Shop

Owning and operating a flower shop can be a great way to earn a living, especially if you have a passion for flowers. Flower shops thrive during certain times of the year, especially during special holidays and in the spring when the flowers begin to bloom. You can have a successful and profitable business, but not one without risks. By understanding the risks, you can work to mitigate them as much as possible.

Hazardous and Environmental Risks

In your flower shop, you need to be aware of the environmental and hazardous risks. You deal with a variety of hazardous chemicals, which should be listed on your Material Safety Data Sheets. Be sure employees are always careful when dealing with chemicals, such as spraying insecticides on plants and flowers. Environmental risks can cause injury for employees and customers, which includes your company’s floors, cables and cords in the way, improper set-up of your store, the lighting, heating, and cooling system, and any type of structural inconsistencies.

Delivery Driver Risks

Your delivery drivers will have their own set of risks. Employees could get into a vehicle accident which requires workers compensation insurance and commercial auto insurance. You risk having to pay for the damages and bodily injuries without these policies. Additionally, consider having liability insurance in the event that something happens to a customer’s flowers that were for an important event like a wedding.

Workplace Risks

Your store has other risks particularly for your employees, which should be protected with workers’ compensation. For example, employees may be harmed from chemicals used if your shop doesn’t have good ventilation or  if you don’t provide gloves for safe handling. In addition, an employee could get injured from lifting heavy boxes in a compact area without adequate room for lifting in the proper way.

Financial Risks

Financial risks are a concern for many small businesses, and running a florist shop is no different. The first thing to consider is that some seasons in the flower shop business can be very busy, while others are incredibly slow. You may notice an influx of customers during the spring when flowers become most popular, and Mother’s Day is around the corner. Holidays like Valentine’s Day, Thanksgiving and Christmas also tend to be popular. But aside from special events or birthdays, the rest of the year can be quite slow. You are risking losing your profits during these times. Another financial risk to keep in mind is spoilage of your flowers, plants or other goods. If you order flowers that don’t sell quickly, they can spoil and you lose money. Therefore, spoilage coverage is essential.

Laws and Regulations

Make sure you are following all the right precautions for keeping customers and employees safe. You must provide safe working conditions and an environment that is safe for customers to enter. Make sure all flowers and foliage used for bouquets are listed, just in case a customer has a certain allergy to certain botanicals or leaves. Make sure your business license is up-to-date at all times.

To mitigate your flower shop’s risks, make sure you have adequate business insurance. Choose a collection of policies to cover each of your main risks, whether it is property insurance, worker’s compensation, or others.