The global floral industry is expected to reach $57.4 billion in 2024. And while customers have long been accustomed to purchasing floral arrangements from florists, full-service grocery stores and other in-person locations, even this relatively “traditional” market niche is starting to see disruption.

An excellent example of this is The Million Roses, a company that offers luxury preserved roses, jewelry and more, all via an entirely online store. As Doniz Pauillac, COO of The Million Roses, her company’s distinct model and product offerings are disrupting the floral industry and bringing about exciting changes for customers.

A Digital-First Platform

The first element of The Million Roses that sets it apart from many others in its industry is its completely digital approach. While some florists now let customers browse options and occasionally even make purchases through their website, their ease of use tends to be lacking — in part because they can’t provide their full scope of services online.

“Today’s customers are used to online shopping for so many other purchases — you just can’t beat that level of convenience,” Pauillac says. “As we’ve experienced ourselves, people crave that same easy approach when it comes to purchasing flowers for special occasions or as gifts. It’s just so much easier to make a purchase online and to see exactly what you’re getting, as opposed to trying to find the nearest shop and hope they have something you’ll like.”

Aside from an easy to browse selection of flowers and other luxury gifts, The Million Roses has incorporated tools such as a chatbot, search tools and even a customizable wish list to make the shopping experience even more convenient for first-time and returning buyers.

Preserved, Long-Lasting Roses

With proper care, typical roses can last for seven to 10 days. However, this is only achievable by following a particular set of care guidelines to maintain freshness — and after two weeks, even the best cared-for roses will be thrown away. Not so with The Million Roses.

“Our preserved roses are what ultimately set us apart,” Pauillac explains. “Our organic roses are sourced from Ecuador, where we select the top one percent of fine roses. After they are selected, each of our flower products undergoes a non-toxic preservation process that allows them to last for at least three years. These roses don’t need any water or special care — they are meant to last, similar to a piece of home decor. Combine this with handcrafted precision that goes into creating each arrangement, and the end result is an amazing, sustainable floral piece.”

With minimal care requirements and a much longer lifespan than typical floral gifts, preserved roses become a more meaningful gift that will continue to be enjoyed for years. This can make roses a far more appealing gift option for buyers who are concerned about the longevity of their gift.

A Broad Selection

The Million Roses’ digital-first approach and unique preservation process gives the company the ability to offer a broad selection of products — much more than would be available at a typical florist’s shop.

“We go beyond red and white roses with unique color options like pink, gold and green — and then of course, we’re also able to offer roses in a variety of sizes and in arrangements tailored to different occasions, from anniversary presents to baby showers,” Pauillac says. “Because arrangements are made to order, each item in our store is always in stock. So no matter which option is the most appealing to you or your loved one, you can be sure that you’ll be able to get it.”

This can give buyers much-needed peace of mind — unlike when they visit a brick and mortar florist and have no guarantee of which flowers and arrangements are currently available. At the same time, each The Million Roses product is handcrafted to order, ensuring that buyers receive the same level of quality that they would expect from a local florist.

Scheduled Delivery

Another element that makes The Million Roses a noteworthy disruptor in the floral industry is its approach to deliveries. While it’s true that florists are generally able to fill orders by the desired date, customers typically need to pick up the flowers themselves. In today’s busy world, this is something many customers simply don’t have time for.

Of course, as an online business, The Million Roses would naturally offer delivery for its customers. However, the company has gone a step beyond by offering guaranteed delivery to its customers — even for last-minute orders.

“We can deliver our flowers as quickly as one day by air — or even same-day for those living in the Los Angeles area,” Pauillac explains. “Timely delivery makes all the difference when celebrating a special occasion, or an unexpected moment that calls for a thoughtful gesture. Our efficient delivery network allows us to guarantee delivery for the date a customer chooses during checkout so they have one less thing to worry about.”

A New Approach

With over 10 million roses sold to date, The Million Roses’ disruptive approach is clearly making a strong impression on floral customers. Time will tell as to whether the rest of the industry tries to follow suit — but based on the company’s current trajectory, it is clear that its approach is something floral customers have been waiting for for quite some time.

When launching a new business, you may (rightfully) be concerned about your likelihood of survival.

According to LendingTree’s research, 23.2% of private sector businesses in the U.S. fail within just the first year. By five years in, that number rises to 48%. After 10 years, 65.3% of private sector businesses close. Research shows that one of the biggest reasons for a failing business is a lack of financial planning.

A study from Wilbur Labs asked 150 startup founders about their biggest struggles and what ultimately led to failure. The most common reason was that the company ran out of money.

Interestingly enough, many of the other reasons cited all circled back to the same overarching issue: money trouble. 

Safe to say, when you’re launching a startup, one of the most crucial parts of your business model is developing a sound financial management plan. 

A financial management plan allows you to keep an eye on cash flow, prepare for risks and unexpected costs, and solidify your financial future.

What makes up a financial plan? Here’s a look at its core elements and how you can build an effective one for your startup.

Critical Pieces of a Startup Financial Plan

Your startup financial plan should vary based on your industry, offering, and where you are in your growth, but there are some core pieces that make up most strong financial management strategies. Such pieces include: 

• Profit and loss (P&L) statement: Your P&L is also called your income statement and relies upon your revenue, cost of goods sold, and overall expenses. Once you subtract your cost of goods sold and your overall expenses from your revenue, you’ll gain an understanding of how much income you’re bringing in. A P&L helps you track your cash flow.
• Balance sheets: Balance sheets reflect your overall financial standing and include three parts. Your assets are your available cash, goods, and other owned resources, while your liabilities are what you owe, including to your vendors, landlord, and employees. Shareholder equity is the third component, and it’s essentially your net worth, measured by subtracting your assets from your liabilities. Your equity informs the value of your company to shareholders, including your employees, who may be holding restricted stock units (RSUs) as a part of their equity compensation. 
• An informed budget: Building a budget enables you to stay ahead of upcoming costs. Your budget establishes spending guidelines based on your expenses and expected revenue. With a proper budget, you can prepare even for unexpected costs, as a solid budget will have wiggle room for you to pivot when the necessity arises (more on that soon).
• Tracked financial data: As a startup, you might not yet have a lot of data to utilize to build your P&L, balance sheets, and budget. However, as you grow, it’s essential to have historical financial information available to stay on top of your cash flow and overall costs. This allows you to adjust your financial management plan as changes to your company, industry, and the greater economy occur.

How to Create Your Startup Financial Plan

Start tracking financial data from day one

As a startup, you likely don’t have much historical data to influence your financial plan just yet, which is why it’s vital to start tracking such information as soon as you can.

Automate your financial tracking to make this process easier and more streamlined, as you should build your financial plan with the expectation of growth. 

Ideally, you want your financial plan to one day transition beyond the startup phase and having automated data tracking allows you to integrate your information into all of your financial management tools, such as an ERP or CRM.

You may be able to manually track your data right now when you have few employees, vendors, and other expenses, but as you grow your costs, revenue, and  income will, too. Your financial plan should always be scalable.

Create financial projections through realistic goal setting

Your goals should inform your financial plan. Utilizing your tracked data, establish financial forecasts based on what you hope to achieve and what you believe is reasonable to reach.

If you set financial projections based on simply what you hope to reach in a year or less, you may set yourself on a path of disappointment and spend your valuable time in the wrong places. 

Instead, set reachable milestones that you can strive for throughout the year. Once you achieve a milestone, look at what your next goal is and use your recent data to rework your milestones based on your sales and trajectory. 

Build a budget that expects the unexpected

According to Wilbur Labs’s research, the fourth-most common reason startups failed in recent years was due to the COVID-19 pandemic. In other words, unexpected costs can sink a company fast if they don’t have any room in their budget to pivot.

Your budget should take into account your goals, revenue, expenses, and income to create boundaries for your spending, but you also need to ensure that you have ample room in your budget for flexibility.

Even if you’re tracking your financial data, your industry’s data, and the overall economic fluctuations, you still need to have space in your budget to prepare for changes you couldn’t have anticipated. 

Establish transparency with stakeholders 

The second-most common reason for failing as a startup is a lack of financing and investor interest. 

Startups tend to go through four main funding rounds: seed, series A, series B, and series C. 

Even if you receive seed funding, in most cases, you need to generate enough interest in your company to procure more funding with subsequent rounds to stay afloat. Establishing clear and honest communication with your investors and stakeholders is core to a functional financial plan. It will help you develop trust, which, in turn, can result in further funding. 

Your Startup Financial Plan = Future Growth

While cash flow is one of the most crucial parts of establishing an effective startup financial plan, your money management plan should go deeper than simply tracking cash in and cash out. Through financial data tracking and necessary documentation like your P&L statement, you can keep an eye on your financial standing and prepare for your next stage of growth.

Think of your startup financial plan as a living document.

As you gain more insight into your finances through data tracking, you’ll find it necessary to rework and retool your plan, especially in regard to your budget. The best startup financial strategy recognizes that startups need to pivot often, both due to internal reasons and uncontrollable external forces. Your future growth will be bright when you have a financial plan that expects the unexpected, setting you up for success even where many others have failed.