[Hua11.com Original] When is the off-season in the floral industry?

Some say it's from June to August because there are no major festivals during these months. Others claim it occurs during winter and summer vacations when students are on break. And then there are those who believe it's whenever I'm in a bad mood because I tend to travel and avoid business during those times. :)

All of these perspectives make sense. However, for us—the new generation of flower shop operators—the division between off-season and peak season in the floral industry isn't very obvious.

Why? Because we understand how to hedge business risks.

Risk hedging is a concept from the investment field. It involves strategically offsetting potential losses of underlying assets by investing in or purchasing certain assets or derivatives that have a negative correlation with the return fluctuations of those underlying assets. The ancients summed it up well: "Be prepared for danger in times of peace and be ready for trouble."

This strategy is crucial and effectively reduces investors' losses. Consequently, in the investment field, various risk hedging practices exist, including asset allocation across different risk levels and dynamic rebalancing of cyclical asset proportions.

Simultaneously, risk hedging can be thought of as an averaging concept that smooths out fluctuations. By controlling risks within a manageable range, you achieve an effect akin to "buying low and selling high" in securities. Over the long term, this creates a virtuous cycle that yields a "compound interest" effect.

OK, the above investment concepts may be a bit abstruse. What practical uses will this concept have when applied to the operation of our familiar flower shops and floral studios? Let me list them:

First, let's understand the performance fluctuation graph of flower shops and studios.

It can be seen that the performance of flower shops fluctuates over time, cycling and transitioning between the "peak season" and "off-season" of the traditional flower industry. This unique economic cycle forms within the flower industry. Due to factors such as our operational experience and the increasing societal acceptance of flowers, the average performance of flower shops and studios should generally continue to rise (depicted by the upward-sloping orange straight line in the middle of the graph).

Additionally, during the peak season of the traditional flower industry, the entire industry benefits. Florists, flower circulation channels, flower shops, floral studios, flower derivatives, and third-party service providers—all segments of the industry chain—experience thriving conditions. This also means that regardless of a flower shop's positioning, the relative differences between them become insignificant. It's akin to the saying, "When one man attains enlightenment, even his pets ascend to heaven."

However, in the off-season of the traditional flower industry, the distinctions among various flower shops and studios become apparent. Why? Because during the off-season, what truly tests people is not just their "craftsmanship" but also their management level, marketing prowess, and service quality.

Hua11.com frequently investigates the market and observes many flower shops with exceptional craftsmanship but incorrect positioning, unreasonable product structures, and low risk resistance. These shops tend to disappear during the off-season. Interestingly, many of these operators hold international floral certifications, highlighting that such certifications offer little substantial help when opening a flower shop. This insight is one of the reasons why Hua11.com invested significant effort in writing the book "How to Run a Flower Shop and Floral Studio."

Based on the above analysis, if flower shops and studios aim for faster development, they must prioritize improvement during the off-season. Doing so will accelerate their average performance (as indicated by the steeper slope of the orange straight line). In essence, this approach hedges the business risks faced by flower shops during the off-season.

So, specifically, how do you do it? Let's summarize the following four methods:

I. Pay more attention to marketing than usual.

During the peak season, your orders come either from customers who find you automatically or from your paid presence on a certain platform, right? If so, you must attach great importance to cultivating your marketing abilities because it's very likely that your marketing skills are close to zero. Once it's the off-season, all your customers disappear, and you'll face severe business risks.

Please read the "Marketing First Step Series," "Marketing Advanced Series," and "Marketing High-End Series" of this book carefully and integrate their contents into your business. It took us almost two years to write these series, and they provide valuable summaries of our actual operations.

A special reminder: ground promotion may be one of the most effective methods during this period. It might seem low-end, but pretending to be a literary youth won't make your shop thrive. (Reference: [Hua11.com · Marketing First Step Series 8] Why prioritize ground promotion for flower shops and studios? Isn't online marketing easier?)

Also, note that reading fewer or avoiding ambiguous fast-food-style articles is essential. Such content will only waste your time or mislead you. (Reference: [Hua11.com · Flower Shop Startup Series 7] In the age of social media, how can floral entrepreneurs effectively monetize their time?)

II. Focus on differentiated skill improvement.

What are the differentiated skills of florists?

For instance, during your usual operations, you excel at making flower bouquets, flower boxes, table flowers, and flower baskets. Your customers recognize this. Now, should you choose to further study the "French Bouquet Technique Course" or participate in the "Floral Salon Lecturer Skill Training Course"?

Both options have their merits. However, from the perspective of a flower shop/studio operator, further study of the "French Bouquet Technique Course" may not significantly increase your turnover (since your customers' aesthetic preferences may not align with this level of sophistication, and they won't pay extra for it). On the other hand, the "Floral Salon Lecturer Skill Training" can open up a new business direction and profit source during the off-season: floral salons. (Reference: Hua11.com Floral Salon Activity Planning)

Why "allocate" such a skill?

Because from the standpoint of risk dispersion, the lower the correlation between businesses, the better the risk hedging effect. The off-season for one business may coincide with the peak season for another. While you've already mastered bouquet-making, French bouquets are merely icing on the cake. During the off-season for bouquet sales, this skill won't significantly boost your turnover. However, if you acquire the skill of being a floral salon lecturer (which has market demand), you can meet existing market needs and increase your turnover.

This logic applies at a higher level as well:

- Consider learning skills outside the floral field but related, such as balloon arrangement courses (like Hua11.com Scene-Style Balloon Arrangement Training and Light Decoration). The lower the business correlation, the better the risk hedging effect.

- Explore cross-border operations like baking. However, there's a prerequisite: your flower shop should already be making sustainable profits, rather than relying solely on baking for "blood transfusion." (Reference: [Hua11.com · Flower Shop Business Models Analysis Series 1] Will combining a flower shop with coffee/cake/desserts/afternoon tea be a successful joint venture?)

III. Repair business loopholes.

Were there any non-standard situations in your previous operations? Was customer satisfaction not up to par? Is there a possibility to optimize the store display? These are all areas where you can make improvements. One important reminder is that these improvements should not involve a large amount of capital investment. Given that you're in the off-season and facing tight cash flow, investing funds in these areas may not yield significant returns. We suggest focusing on enhancing your "soft power," which tends to be more reliable.

IV. Explore additional risk hedging dimensions.

The previously mentioned off-season coping methods can have immediate effects. However, this concept can also be applied to other aspects of our floral business, such as:

- Working in an office while learning floral art (craftsmanship) hedging: This allows you to acquire skills that support you independently, without relying solely on others' platforms.

- Mastering floral art and learning to open a flower shop or studio hedging: While the former emphasizes craftsmanship, the latter involves operational skills.

- Conducting a single floral business and mastering diversified floral businesses hedging: Remember that the off-season for one business may coincide with the peak season for another.

- Opening a single entity and mastering the skill of opening multiple entities hedging: A single entity is susceptible to regional risks (like shop demolition), whereas multiple entities can diversify risks.

- Operating an offline entity and mastering Internet operation skills hedging: Relying solely on offline knowledge can leave you vulnerable to online impacts.

- Online and offline integrated operation and developing your own platform hedging: Having your own platform allows you to design the rules rather than following others'.

- Based on a certain link and establishing an ecosystem hedging: Participating in only part of the industry value chain exposes you to systemic risks; creating an industry ecosystem improves risk resistance.

- Industrial business and financial investment hedging: Having both "virtual" and "real" capabilities enables you to navigate economic fluctuations.

The significance of these hedging strategies lies in their ability to safeguard against risks. When one aspect faces challenges, another can step in, preventing a complete downfall and enhancing your overall risk resistance.

In this article, we've delved into risk hedging for flower shops. While operating with a simple mindset akin to Buddhism might make opening a flower shop or studio seem easy, growing bigger, building a brand, and maintaining long-term success require thorough consideration.

Remember, opening a flower shop or floral studio is no longer just about selling flowers. It's about adapting to the ever-evolving landscape of new business forms in the Internet era. As floral practitioners, we must embrace change, improve ourselves, and remain resilient. And when you need assistance, Hua11.com is here to lend a helping hand.

Copyright Statement:

This article is an original creation by Hua11.com and is included in the “How to Run a Flower Shop and Floral Studio” Ebook. The content of this article may be periodically updated and is initially published on the Hua11.com official website blog. You can find the article at this link: https://hua11.com/blog/4687.html.

Reproduction of this article is permitted, provided that it is reprinted in full and all copyright information is retained. Any form of plagiarism, whether partial or complete, is strictly prohibited. Legal action will be taken against violators.

The work titled “How to Run a Flower Shop and Floral Studio” is copyrighted by Hua11.com. Additionally, the “Practical Floral Training” model and the concept of “Light Decoration” are original creations by Hua11.com. The trademark “花艺意” is registered and protected by relevant national laws.