I have a realtive who has worked for a florist and this shop is closing because the city is widening the street and buying his building. He has several other shops that he will keep open and he has been unable to find another one. I currently own a building that I live in but now is zoned commercial. Located on a very busy street with a high traffic count and a few blocks from one of the busiest intersections. This building is next door to a funeral home and a block from the cemetery. While I have great faith in this relative and feel she knows a lot about running a floral shop, I need to find out the PROFIT POTENTIAL. Thank you for any help, advice, suggestions you can give me.
Well, that’s a fun question to think about, and it would be interesting to work with you on that project if you decide you’d like to hire me as a consultant. I work by email or by phone at an hourly rate for research and consulting time. I require a minimum commitment of 4 hrs to start a project, and always agree on a budget of hours with a client before starting so there are no surprises. I accept check and netteller.
The place to start is to write a business plan. The KEY piece of information will be the sales volume projection, and that projection should come from good market analysis. A well run flower shop can profit 5 – 20% pre-tax. Naturally, that depends greatly upon salary of owner/mgr/operator, and the structure of your corporation.
Another tact would be to determine the amount of profit dollars you need, then work your business plan operating statement backwards to calculate the sales volume you need to generate. Then you must honestly assess the reality of that sales volume in your market.
The bottom line is that you need to start with a business plan to see if your flower shop if feasible. There is free help for developing a business plan from the Small Business Development Center and Service Core of Retired Executives both of which are funded through the Small Business Administration.
I was reading your page about market research. I agree that all those questions need to be answered, but where can you go to find out that info in your target area? I’m assuming there’s a local database available, but do I find it through the city? Would it be available at the local library? Where do I need to look?
Probably the best place to start would be your local Chamber of Commerce.
I also recommend networking with other small business owners. While the numbers from these folks will not come in the form of cool spread sheets and pie charts, they will be more real-world and possibly more useful.
For instance, if you can befriend a local baker, you can learn a tremendous amount about the wedding, party, every day and corporate market in your neighborhood.