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Show Focus on Small Business By W. Grant Evans, Acting District Director Dear Mr. Evans: My wife and I have grown flowers for years as a bobby and now we are seriously thinking of starting our own retail florist business. Can you help with Information? 1' - -'Av surV CthS nationV 2'oo(f 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 to earn a profit doing it. Recently, the Small Business Administration Ad-ministration went to the Society of American Florists in Alexandria, 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 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 experience before starting a retail outlet. ! " , Equipment needs of a shop are. , relatively simple. The main item is a refrigerator where the types of flowers sold will dictate its temperature tem-perature 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. Sales have been predicted to hit $6 billion by 1985. Many florists are targeting their marketing towards the 25 to 45 year old college educated consumer in the euberbs. Such shops are locating in shopping centers where they can take advantage ad-vantage of higher household income and traffic flows. The Small Business Administration can help with information, management assistance, and some financial assistance. IUf you need information or assistance, please contact us at the SBA office in SAlt Lake City, Utah 125 South State Street 84138. |