Maximizing Your Flower Farm's Profit: A Guide to Profit Planning
If you were to ask me about my profit plan in year one, I would have told you it was to sell as many flowers as I could. THAT was my profit plan! Sound familiar? If so, you aren’t alone. As flower farmers, our passion for growing flowers and spreading joy is often the driving force behind our work, not the profits. But if you want to transform this passion into a business that makes a profit, you gotta have a plan. And not just any plan - a profit plan.
What is a Profit Plan?
So you may be wondering, what the heck is a profit plan? And truly, it’s quite simple. Just like how a seed starting schedule is your guide to growing an incredible field of flowers, a profit plan is your guide to building a profitable business. It’s a blueprint for your business that outlines how you intend to make and spend money throughout the year by looking at different income streams, such as selling bouquets, offering U-Pick experiences, or subscription services, and their respective costs.
Why Your Farm Needs a Profit Plan
While it’s easy to have a default profit plan of just sell as many flowers as I can, this plan will leave you in a bind. Without specific targets to measure against, you'll be unclear about your goals, unsure if you're selling enough flowers, and uncertain about the profitability of your efforts. Basically, you’ll be operating in the dark. With a more detailed plan, you have a clear plan for the year ahead and know exactly what you're aiming for in terms of income.
And your profit plan isn’t a document you complete and then stuff in the junk drawer for the rest of the year. Keep this document handy because you can check-in throughout the season to know exactly where you’re at.
For example, I want to sell 40 peony subscriptions. By looking at my sales, I can see that as of mid-winter, I’ve sold 36. I now know that I need to sell 4 more in the next couple months. This ability to quickly check-in with your goals and progress helps you to stay on track, make informed decisions, and adjust your strategies as needed.
How to Write Your Profit Plan:
Now that you know what a profit plan is and why you need one, it’s time to put pen to paper. Of if you are like me, fingertips to phone! Writing a profit plan for your flower farm doesn't have to be complicated. You can find mine on my phone in the Notes app so I have that baby with me at all times.
Here's a simple way to do it:
Set Your Sales Goals: Start by deciding how much money you want to make in the coming year. This will be your target income.
List Your Income Streams: Write down all the ways you can make money on your farm. This might include selling bouquets, hosting U-Pick events, offering flower subscriptions, or selling plants and seeds.
Estimate Your Sales and Prices: For each revenue stream, estimate how many items you can sell and at what price. Be realistic based on past sales or industry standards.
Calculate Your Expenses: List all the costs involved in running your farm, like seeds, supplies, labor, and marketing. (You can find a free download at the end of this article with common flower farming expenses.)
Do the Math: Subtract your total estimated expenses from your total estimated revenue. This will give you an idea of your expected profit.
Adjust as Needed: If your expected profit doesn’t meet your goal, consider adjusting your prices, finding ways to reduce costs, or increasing sales.
Remember, your profit plan is a living document. It's meant to guide you, but you can and should adjust it as you learn more about your business's performance throughout the year.
Below is a list of different incomes streams you might find on a 1st or 2nd year profit plan. Please keep in mind, they are provided simply as an example and the numbers are generalizations. You would want to tweak them to be in alignment with the income goals of your farm.
1 Market for 16 weeks. Sell 20 bouquets per market priced at $20 for a total of 320 bouquets or $6,400.
2 Wholesale Orders per week for 20 weeks: Assuming an average wholesale order of $150 for a total of $6,000.
15 Spring Subscriptions: 15 subscriptions listed at $120 = $1,800
20 Summer Subscriptions: 20 subscriptions listed at $240 = $4,800
30 Holiday Wreaths: 30 wreaths listed at $85 = $2,550.
Below you will find my profit plan for our peonies in 2024. We have around 2,000 plants that are in year 4 and “in production” and I would like to sell 4 blooms per plant for a total of 8,000 stems. And this is an average. I have some varieties that are stingy with blooms and others that crank them out. The plan below ends up being right around 7,000-8,000 stems.
20 buckets of peonies at an average cost of $200 = $4,000: A great offer for events (lots of grad parties during peony season) and bulk orders.
40 peony subscriptions at $150 each = $6,000: You know I’m passionate about subscriptions!
150 U-Pick tickets at $37 each (5 upicks/30 people) = $5,550: A fantastic way to engage with the community and offer a unique experience.
30 U-Pick subscriptions at $97 each = $2,910: For enthusiasts who want multiple visits.
200 bouquets at $20 each = $4,000: Perfect for quick sales via our flower stand.
10 photography sessions at $50 = $500: Is there a better photo backdrop than a field of peonies?
5 shipped peony subscriptions (trial program) at $375 = $1,875: Trying something new!
20 Muddy Farm Club memberships = $2,100: I just included the portion of the MFC cost for the peonies.
Total Sales: $26,935
While I didn’t include expenses in my peony example, I have one main expense and that’s myself and one part-time employee. Or in other words, labor. In addition to labor, I will spend money on ads, buckets/sleeves/jars and shipping/shipping supplies for the shipped subscriptions. The original roots, landscape fabric and coolers were initial investments and have since been paid for. A few “admin” expenses that I incur are web hosting fees, processing fees and email service provider fees. You can learn more about our peonies here.
A profit plan isn’t just a piece of paper covered in numbers; it's the roadmap to transform your passion for cut flowers into a profitable business. And with the right planning and focus, you are well on your way to building the business you envision. Armed with these tips, start creating your profit plan today and set the stage for a profitable and fulfilling year ahead!
After finalizing your profit plan, if you find that your numbers aren't meeting expectations or falling short of your goals, discover effective methods to boost your profits here.
Want a comprehensive list of common farm expenses?
In this free guide, you’ll find answers to common tax questions along with an extensive list of flower farming expenses. (Because let’s be honest, you want to deduct as much as you can!)