In this eye-opening episode of Think Business with Tyler, Michael shares how he turned a failing flower shop into a multi-million dollar operation, challenging conventional wisdom about the floral industry along the way.
INTRODUCTION
Have you ever wondered how a struggling local business can transform into a thriving franchise? Michael Jacobson’s journey with French Florist is a testament to the power of innovation, technology, and a customer-first approach in revolutionizing an industry.
In this eye-opening episode of Think Business with Tyler, Michael shares how he turned a failing flower shop into a multi-million dollar operation, challenging conventional wisdom about the floral industry along the way.
From Wilting to Flourishing: The French Florist Story
When Michael first stepped into French Florist, it was far from the blooming success it is today. The shop was barely breaking even, struggling with outdated systems and a lack of profitability. But where others saw a dying business, Michael saw opportunity.
I saw this opportunity. There was this common thread between all flower shops that I went into,” Michael explains. This insight became the seed of a transformation that would not only revitalize French Florist but potentially reshape the entire floral industry.
ABOUT MICHAEL JACOBSON
Michael Jacobson is the owner and CEO of French Florist, a successful flower shop business in California. He took over the struggling company from his uncle and transformed it into a thriving enterprise, with one location now generating about $10 million in annual revenue. Jacobson’s background in finance and software development has been instrumental in revolutionizing the floral industry through innovative technology and efficient operations.
Under Jacobson’s leadership, French Florist has developed its own proprietary software system, which has significantly improved inventory management, order processing, and overall business operations. The company has expanded beyond retail locations and is now offering franchising opportunities, providing comprehensive support including technology, supply chain management, and marketing to franchisees. Jacobson’s vision extends beyond mere profitability; he aims to elevate the entire floral industry and create meaningful connections through the power of flowers.
LESSONS LEARNED
1. Innovative Floral Technology
French Florist developed proprietary software to revolutionize the floral industry. This technology streamlines inventory management, predicts customer orders, and enhances overall efficiency. By investing over a million dollars in this system, they’ve created a competitive advantage that sets them apart in a traditionally low-tech industry.
2. Franchise-Focused Growth Strategy
The company chose franchising over corporate expansion or software licensing. This decision was driven by the belief that owner-operators would provide better customer experiences than managers. Franchising allows French Florist to scale rapidly while maintaining quality and fostering entrepreneurship.
3. Comprehensive Franchise Support
French Florist offers extensive support to franchisees, including technology, supply chain, and marketing assistance. This comprehensive approach helps franchisees achieve significant growth, with new locations consistently reaching high revenue targets in their first year. The franchisor’s goal is to elevate the entire floral industry through this model.
4. Value-Driven Business Philosophy
The company emphasizes aligning business goals with personal values and a deeper purpose. French Florist’s slogan “You are loved” reflects their mission to enhance human connections in an increasingly digital world. This philosophy drives their decision-making and helps attract like-minded franchisees and employees.
5. Entrepreneurial Wisdom Shared
Michael Jacobson offered three key pieces of advice for entrepreneurs: build a strong team, embrace challenges as opportunities for growth, and align your work with your personal values. These insights, drawn from his experience transforming a struggling flower shop into a thriving franchise operation, provide valuable guidance for aspiring business owners.
QUOTES
“Look, we’re in an industry that’s, we’re in the business of emotions. Right. 95% of our customers are sending as a gift from one person to another.”
Michael Jacobson emphasizes the emotional core of the floral industry, highlighting how their business revolves around facilitating personal connections and expressions of sentiment.
“We’re not really looking to, you know, help a shop achieve 5, 10, 15, 20% incremental improvements. We’re really looking to partner with these shops and give them an order of magnitude better performance.”
Michael outlines French Florist’s ambitious approach to franchising, aiming for transformative growth rather than minor improvements for their partners.
“If you can find something that is work that is beyond the financials, again, I think financials are great. They’re a means to be able to do more.”
This quote reflects Jacobson’s philosophy on entrepreneurship, stressing the importance of finding purpose and meaning in one’s work beyond just financial gain.
“Business is a beautiful platform. Yeah. I have stories this year and, you know, had opportunities to go and, you know, I mean, we have a choice every day to go and volunteer at a orphanage, go and volunteer at a soup kitchen.”
Michael views business as a powerful tool for making a positive impact, suggesting that entrepreneurship can be a means of contributing to society in meaningful ways.
FUN FACTS
Michael Jacobson started his entrepreneurial journey by selling soda cans in middle school when they were banned from vending machines.
French Florist’s technology includes a predictive analytics model that forecasts customer orders and helps manage inventory efficiently.
The company etches “you are loved” subtly on their vases, adding a unique touch to their products.
TAKE ACTION
1. Bring in smart people to complement your skills. As Michael said, “Find people that will push back on your ideas in a constructive way.” Look for opportunities to build a strong team, even if you start small. The power of collaboration can accelerate your business growth.
2. Reframe challenges as opportunities for growth. Michael emphasized leaning into obstacles, saying “We’re hitting a challenge like this is we’re doing something right.” Try viewing your next business hurdle as a chance to learn and improve rather than a setback.
3. Align your work with your personal values. Michael stressed the importance of finding meaning beyond just financial gain. Reflect on how your business can serve a deeper purpose that motivates you. As he put it, “If you can find work that can help you reach your financial goals. But there’s also more to it than that.”
MAXIMS TO LIVE BY
1. Embrace Challenges: View obstacles as opportunities for growth and learning.
2. Build a Strong Team: Surround yourself with people smarter than you to accelerate growth.
3. Choose Your Challenges: Life will be challenging; pick the challenges that align with your goals.
4. Align Work with Values: Ensure your business aligns with your personal values for sustainability.
5. Innovate Continuously: Don’t be afraid to disrupt your industry with new ideas and technology.
6. Focus on Customer Experience: Prioritize creating exceptional experiences for your clients.
7. Leverage Technology: Use tech to automate mundane tasks and focus on core business aspects.
8. Be an Open Book: Share your knowledge and encourage healthy competition in your industry.
9. Invest in Supply Chain: A robust supply chain can give you a significant competitive advantage.
10. Think Beyond Profit: While financial success is important, aim for a deeper purpose in your work.
11. Embrace Franchising: It can be an effective way to scale your business and empower others.
12. Stay Humble: Acknowledge your strengths and weaknesses, and be open to learning from others.
13. Reframe Failures: See setbacks as stepping stones to success rather than roadblocks.
14. Foster Human Connection: In a digital age, prioritize genuine human interactions in your business.
15. Be Selective in Partnerships: Choose partners who align with your values and vision.
16. Invest in Quality: Sometimes, paying more upfront for better quality can lead to long-term savings.
17. Create Unique Value: Differentiate your business by offering something truly unique to customers.
18. Balance Creativity and Operations: Combine creative passion with solid business practices.
19. Embrace Your Entrepreneurial Spirit: Nurture your innate drive to create and innovate.
20. Use Business as a Platform: Leverage your business success to make a positive impact in the world.