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Show Small Business Aid Dear Mr. Evans: My wife and I have grown flowers for years as a hobby and now we are seriously thinking of starting our own retail florist business. Can you help with information? A SURVEY of the nation's 25,000 retail florists, who yearly achieve about $1.5 billion in sales, would show that practically all started as you have done they found pleasure in working with plants and flowers and wanted want-ed to earn a profit doing it. Recently, the Small Business Administration (SB A) went to the Society of American Florists in Alexandria, Ale-xandria, Virginia, for help in preparing a free counseling brochure, "Retail Florist." The brochure is available at our local SBA office. GENERALLY, a minimum of $12,000 is needed for initial investment to start a retail florist shop. An additional margin of six to nine months of operating capital is desirable desira-ble for the small shop's initial expenses. The small shop can expect costs of flowers, plants, etc. to average about 47 percent of sales; 38 percent of sales will go for operating expenses, leaving about 15 percent of sales for net profit. AS IN ANY business, a key to success is management ability. As a florist shop manager, knowledge of flowers, plants, soils, plant nutrition, insect and disease control and light and temperature requirements must supplement management skills in purchasing, pricing and marketing. Some of our colleges offer programs in floriculture. Trade experts recommend three or four years of practical prac-tical experience before starting start-ing a retail outlet. EQUIPMENT needs of a shop are relatively simple. The main item is a refrigerator refrigera-tor where the type of flowers sold will dictate its temperature tempera-ture range. Designing tables, wrapping table, showcases, and sinks with a water supply also are needed. ALL THESE items, of course, should be figured into initial setup costs. A municipal license and state sales tax .certificate are required. Experts see a promising future for the florists industry. in-dustry. Sales have been predicted to hit $6 billion by 1985. Many florists are targeting tar-geting their marketing towards the 25 to 45-year-old college-educated consumer in the suburbs. SUCH SHOPS are locating in shopping centers where they can take advantage of higher household income and traffic flows. The Small Business Administration Ad-ministration can help with information, management assistance, as-sistance, and some financial assistance. If you need information infor-mation or assistance, please contact us at the SBA office in Salt L-ke Citj, Utah, 125 South State Street, 84138. |