Diversifying your Income for Consistent Cash Flow with Julio Freitas
The latest buzz in the creative industry is all about creating multiple revenue streams of income to accomplish “Diversified and passive income”. Since business can be seasonal for some creatives, creating supplemental income is crucial to our business success. Solely relying on one principle income can leave us vulnerable to limited cash flow and financial hardships when we least expect it. Not only will diversified income give you flexibility with your finances, it will also generate more profits during slow months, set up recurring income in some cases, and allow you to scale your business to new lengths.
Today’s guest believes in sustainability in the flower industry. Julio Freitas of The Flower Hat, grows most of the flowers he uses in floral designs during the short yet busy wedding season. His business also sells the oh-so-coveted Dahlia Tubers in the Winter and he teaches On-Farm Design and Farming Workshops in the Summer. He shares how he started diversifying his services, the steps he took to implement his process, and best practices on how you can create consistent cash flow in your business so that you are not struggling in your slow season.
STARTING HIS BUSINESS
Julio started The Flower Hat in 2016 for corporate where he was designing “everyday” and holiday flowers. He later approached a local coffee shop
And pitched them to do their flowers on a weekly basis. After that, he started to get referrals and started to design weddings shortly after, which was never his plan. At first, he took on small weddings and over time, grew into larger events which were time consuming. He made a decision to scale back on corporate work and let go of the steady paycheck. Taking this leap was a huge risk, but he made it work because he saw a bigger opportunity in weddings. Clients saw value in his work and in the first year, he was able to make the same amount of money.
WHY DIVERSIFY IN YOUR BUSINESS
Because Summers are short, it was getting harder to spread his wedding income into the winter and spring where it is cold and weddings are limited. Julio decided that his best bet was to diversify his serves during this seasonal time in order to supplement his income. One big stream of revenue for Julio is his annual dahlia tuber sale. Since his farm was producing more than what they can grow in their limited space, they decided to sell them and it has since been a huge success. Wreath workshops are also a way he has been able to supplement farm overhead costs in the winter. “Don’t sit around and wait for the business to come to you. Go out and make it happen. If you have a safety net, test the waters and make it grow”.
BENEFITS OF NETWORKING
“Get out there and network”, advises Julio. Connect with other vendors, do photoshoots, and test out with different endeavors. A relationship that he cultivated for 7 years turned into a huge ski resort contract as their exclusive floral designer. Good connection/friend for 7 years in a ski resort, was hired as their florist. During the winter, Julio can supplement his income with holiday work and he always makes sure to go the extra mile for this client. Julio believes that “Networking is connecting with people who need each other”.
NICHING IN THE FLORAL INDUSTRY
Julio never planned to be a resort florist but it was an opportunity to diversify in his slow season. It was also clear in the wedding industry, that he was NOT “everyone’s florist” and he had to adjust his offerings to truly meet the needs of his ideal client and serve well. The biggest struggles he has faced with diversifying have been labor. Running all departments of his business model required time, people, and systems and this was all a learning curb in the beginning. Julio had to also scale back on the projects he took on in order to make time for what mattered most to him. “I was trying to do #ALLTHETHINGS and as a small business, you can’t”. Julio wants to stay as small, as it makes him happy. He currently no longer sells fall bulbs anymore because it isn’t sustainable as it takes so much time. This was a decision to make because he needed time to serve people better and do other projects.
HANDLING COMPETITORS
Being from a small town with only 33 venues and 12 florists including him, he doesn’t worry about what his competition is doing. “If you pick florists and give them the same product, everyone will create something different. People come to you based on your style. Stay in your lane.” advises Julio. It is natural to want to see what the competition is up to, but your style is your own. Let your style evolve. Get involved with other vendors to help your brand grow and build relationships everywhere. The groupies will always be out there, but you need to move on. It is possible to have your own customer base on what you do because word-of-mouth is HUGE.
NEW BUSINESS FOCUS
Julio has a new farm in order to grow more flowers and consolidate everything into 1 acre to make his process more efficient. He is able to diversify the crops and not have to spend too much time starting from scratch each time. With this new investment and business model change, he can sell more flowers, tubers, and the new farm will run more smoothly. Julio also plans to teach workshops on how to flower farm and grow this type of business. People will have the opportunity to come to the farm and learn how to do it all.
TIPS ON DIVERSIFYING
The best thing you can do is make a confident plan and be clear on the opportunity and marketing plan. Partner with locals and vendors to make the process easier. Figure out what the revenue potential is as well as the expenses involved, to know if it will be worth the effort. It needs to be profitable. Work backwards to your goal to see how it will all work out.
TIPS FOR CONSISTENT CASHFLOW
Figure out what the season is that you need help with and what is currently not happening that you can take advantage of for a business opportunity. Plan it out and figure out the logistics, target audience and how you can serve. Think about how you can solve this problem and not just make money. Where is there a hole you can fill with what you do? Be analog not DIGITAL! Constantly adjust where needed to get the “best fit”.
PEEK INSIDE THE EPISODE
[8:10] Flowers may be the right path for you, so connect with other vendors in your area. Bridal shows are great, but also consider making local connections with photographers, planners and venues. This worked very well for Julio and created a safety net so he could transition into full time floral design.
[12:50] “If you want a better future, you can make it.” Julio urges budding florists to get out there and make it happen. Waiting for your business to grow will not occur without your effort.
[18:55] It is very tempting to want to do all the ideas you have. But sometimes you have to “bomb” some of your ideas because time is precious. Prioritize your projects and use your time wisely.
[33:29] According to Julio, to generate consistent cash flow, the most important thing to consider is what season you need help with the most. Take a look at the entire year and see what new ideas you can implement during slower months.
GET TO KNOW JULIO
What is a non negotiable in your business? Fun. If you are cringing about a client, DON’T DO IT! That sometimes is not worth it.
What do you like to do for self-care / life balance? Being in the field when it’s not business related. Spending time appreciating your work.
What is your favorite vacation spot? Brazil where he is from
CONNECT:
Website: www.theflowerhat.com
Instagram: @theflowerhat
