[Hua11.com Original] On a bright afternoon, a gentle breeze caresses your face as you leisurely wander through a commercial district with a strong artistic atmosphere.

Suddenly, a patch of blooming flowers catches your eye not far away.

"Ah, so beautiful!" You, a flower enthusiast, can't help but quicken your pace. "I didn't expect there to be a coffee shop here... and they even have books available for borrowing!" You murmur to yourself, drawn by the aroma of freshly brewed coffee.

With a delighted mood, you step into this exquisite coffee shop. You order a signature Iced Latte, select the book "I Like the Way Life Is" from the bookshelf, and settle onto a soft sofa, savoring a carefree afternoon...

Alright, time to wake up! :) This idyllic scene resonates with literary youth, often moving them to tears.

We appreciate it too. After all, we chose the literary industry of flowers. Interestingly, many Hua11.com students also consider cross-border joint ventures like "flower shop + coffee."

However, have you noticed that in this scene, "you" only paid for a cup of coffee in the end? The flowers and books (for borrowing, not for sale) in the store served as mere props to attract "you."

As the person in charge of the flower business, you might feel a little annoyed. Your flowers successfully lured customers into the store, yet they ended up buying coffee, not your flowers. The sales credit goes to the coffee shop. What about you?

In this article, let's carefully analyze whether this cross-border joint venture business model is a good idea for aspiring flower shop owners, drawing insights from multiple cases.

I. Issues Involved in Flower Shop Joint Ventures

1. Flowers Naturally Have Decorative Attributes

Flowers are wonderful and naturally possess decorative attributes. Many fresh and artistic decoration styles primarily rely on simplicity, complemented by a large number of flowers and related products. The overall environment exudes style and attractiveness.

However, precisely because flowers inherently serve as decorations, they can easily become accessories rather than pure commodities. People often perceive them as items for viewing rather than for sale. Even if they are available for purchase, customers may consider them incidental rather than the main business focus.

Returning to the initial scenario, when customers walk into a store, what do they perceive as its primary business? Most would likely think it's a coffee shop, not a flower shop. In this "flower shop + coffee" joint venture, flowers often serve as decorations.

You can conduct a survey. If customers' initial reaction aligns with this perception, you might consider early adjustments: This is primarily a coffee shop, where flowers play a decorative role rather than serving as the main product. Customers won't immediately associate it with flower purchases; at most, they might buy a few flowers after enjoying their coffee.

From this perspective, the concept of "mutual drainage" in the joint venture becomes an ideal rather than a practical proposition. The coffee shop won't significantly drive customers to your flower shop.

2. The Joint Venture Model Complicates Partnerships or Cooperation

We've repeatedly emphasized the risks associated with partnerships and specifically addressed this topic in two articles:

[Hua11.com · Flower Shop Risk Defense Series 1] Are you sure about partnering? Someone wants to invest in your flower shop. Too good to be true?

[Hua11.com · Flower Shop Risk Defense Series 2] Revisiting partnership: Two florists team up to open a flower shop/studio. How is this idea?

In the context of joint ventures, this analysis will delve further into the model.

In the joint venture model, two situations arise for partnership or cooperation (assuming a combination of "flower shop + coffee shop"):

A. Independent Profit and Loss Responsibility:

- The flower shop (you) and the coffee shop (partner) manage their own profits and losses independently, with minimal interference.

- However, this scenario presents challenges:

 

 

- If customers are drawn by the flowers but ultimately order coffee without purchasing flowers, should you receive a commission?

 

 

- When the partner hosts a private afternoon tea event that doesn't impact public operations but affects your flower sales, should you receive compensation?

 

 

- If the partner's coffee shop thrives while you have downtime, would you assist?

 

 

- Handling flower materials occupies space and may create mess. The partner claims it affects her business, but relocating isn't convenient for you. How do you strike a balance?

B. Shared Profits and Mutual Support:

- In this case, the flower shop (you) and the coffee shop (partner) operate as a cohesive unit, sharing overall profits.

- However, potential challenges escalate:

 

 

- The coffee shop buzzes with activity while you have idle moments. If the partner believes she contributes more and deserves a larger share, would you compromise?

 

 

- During peak times (e.g., Valentine's Day or high-order volume), you work overnight while the partner maintains regular hours but still receives an equal share. Would you feel slighted?

 

 

- If the partner frequently arrives late, leaves early, and travels extensively, leaving you to manage both businesses while maintaining her fixed share, how would you cope?

Contemplating these scenarios is headache-inducing.

You might wonder: What if both businesses belong to the same owner?

Well, the store manager or business leader would likely receive a commission. But introducing commissions triggers the same array of issues mentioned earlier. Without commissions, employee enthusiasm wanes. Balancing it all becomes a delicate task.

...

Countless disadvantages emerge.

The fundamental challenge lies in uneven interest distribution. Crucially, these problems lack straightforward solutions. (If any exist, please share them with us!) Ambiguities in distribution leave everyone uncertain about proportional rewards for their efforts. Over time, enthusiasm wanes, efficiency drops, and risks like partnership dissolution and resignations loom large.

 

II. Case Analysis of Flower Shop Joint Ventures

Let's examine some real-world examples.

Most of the following cases are situated in or near bustling business districts of first-tier cities. These districts attract high-quality foot traffic, and the merchants here are robust. If joint ventures struggle in these areas, success may prove even more elusive elsewhere.

Since some of the shops involved in these cases remain operational, I won't disclose their names, and any photos will be blurred.

Case 1: Joint Venture with a Coffee Shop

This coffee shop boasts excellent products, a prime location, substantial foot traffic, and a discerning clientele. At one point, they attempted to set up a flower display (marked by the pink circle in the image above) at the coffee shop entrance. However, it was removed after a few months.

If the concept of "mutual drainage" holds true, this coffee shop should have attracted a significant number of high-quality customers to the flower operator, preventing its removal.

Case 2: Joint Venture with a Western Restaurant

Initially, this stylish western restaurant featured a flower selling point (branded as a flower shop) at its entrance and even hosted floral salons. However, it has since replaced these features with unrelated items like artificial flowers, dried flowers, and dolls.

Case 3: Joint Venture with Coffee and Light Meals

This store belongs to an excellent flower chain brand and boasts unique decor. Unlike other locations, it offers additional services such as coffee, light meals, and cakes. Over time, fresh flowers were replaced by non-perishable items like dried flowers, green plants, and preserved arrangements.

Case 4: Joint Venture with Desserts

The desserts at this store are exceptional. Although flowers were initially part of the setup, they now exclusively focus on desserts.

Note: These shops excel in their respective domains, but their connection to flowers is minimal. If any errors or infringements exist in this content, please notify us, and we'll address them promptly.

III. Solutions

After reviewing numerous examples, can cross-border joint ventures truly succeed? Our perspective is that if your original intention is to open a flower shop and you lack substantial experience in operations and partnerships, perhaps you should reconsider.

However, if you remain determined, consider these three steps:

1. Establish a Solid Flower Shop Business:

- Cultivate a loyal customer base, maintain healthy cash flow, and generate sufficient profits.

2. Embrace MVP Thinking:

- Incrementally improve your approach, step by step.

- Experiment with joint venture elements within a controllable range.

- What's controllable? Even if an attempt fails, it should erode only part of the profits without jeopardizing the principal investment. (Reference for MVP thinking: [Hua11.com · Flower Shop Startup Series 4] How to test the feasibility of opening a flower shop or studio in the cheapest and fastest way?)

3. Expand with Verification:

- After successful validation, formally invest to expand your business scope.

While some seemingly successful examples exist, it's essential to scrutinize their beginnings. Did they start as a single main business or as a joint venture from the outset?

Broaden your perspective. Consider whether the boss has other businesses and sufficient cash flow to open such a store based on sentiment, regardless of immediate profits or losses.

Few examples demonstrate successful joint ventures from the very beginning, while countless unsuccessful ones abound.

Be cautious about relying on unverified foreign success stories. Even if overseas models thrive, our social environment, customer habits, and consumption awareness differ significantly. How can you guarantee successful replication and operation?

I've tempered your enthusiasm, but ultimately, the decision rests with you. If you proceed, I won't stand in your way—I'll support you. After all, execution ability is rare these days. :)

Life thrives in action. If you've thought it through, go ahead. And if needed, Hua11.com will back you with floral techniques and the operational experience of flower shops and studios.

 

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/4690.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.