Buy a Flower Shop: Serious ConsiderationsBuy a Flower Shop: Serious ConsiderationsBuy a Flower Shop: Serious Considerations By Karen MarinelliYou've always liked flowers and you think the idea of turningemotions into floral expressions sounds like tremendous fun.
Youare between careers and have been investigating businessopportunities in your community.
Yesterday, while perusing thereal estate magazine in your county, you notice that the familyowned, downtown flower shop is for sale.
The ad says it's aturnkey operation.
This is your lucky day.
Or is it?
Let's look before we leap, OK?
Here are some factors toconsider: 1.
What is the current state of health of this business?
Youshould be able to see the financial records and consultprofessional help if needed.
2.
What is the reputation of this business in the community?
Ifthere are negative feelings about the business in the community,you need to consider a name change and making a big show of thechange in management.
Factor in the cost of a face-lift on thefaçade of the physical facility.
3.
What assets are included in the selling price?
If you arebuying the building, equipment, coolers and inventory, you needto carefully assess the age, condition and viability of theseitems.
For example, there may be $10,000 worth of inventory inthe store, and the seller may be able to document the value byshowing invoices.
However, if the inventory is shop worn, out ofdate or not in keeping with your business plan, the value ofthat inventory to you may be quite a bit lower than that$10,000.
Are you also buying the Accounts Receivables as anasset?
If so, you should do some serious research into the exactstate of these accounts.
Many traditional florists havestruggled with house accounts.
They have extended credit as amatter of tradition, rather than good business sense and havefound themselves in extreme cash flow trouble.
4.
What liabilities are you buying?
You'll need to be very clearabout any debt or bills you will be taking over.
Be sure thatyou hire professional help to outline any such debt in yoursales agreement.
Because of seasonality of the flower businessand the existence of house accounts, many retail florists havedifficulty with cash flow; you should avoid any situation whereyou will be paying bills run up by the previous owner.
Also, youshould take time to consult with the Wholesalers that you willbe buying from.
Discuss your payment terms and lay thegroundwork for a healthy business relationship with a reputableWholesaler or two.
5.
What about the business name?
If the name of the business isvaluable in your market, you probably won't want to change thename of the business.
In any case, consider a clause in the billof sale limiting the use of the name by the previous owner inthe future.
This can be very sticky in the case of an owner'sown name, for example "Smith Florist".
6.
Will you need to hire all new staff?
Sometimes a previousowner chooses to stay on and work for the new owner.
This canpose tremendous difficulties for all involved, so tread lightlyon this territory.
It's an extreme analogy, but think about thedifficulties in open adoptions between birth and adoptiveparents.
Everyone has their own style and it can be difficult toaccept change or let go of something you have worked very hardto build.
That being said, many valued staff members atsuccessful florists have weathered the change in ownership oftheir place of employment.
Do make every effort to retain goodpeople.
Just be sure to be clear about your expectations so thatthe separation can be as painless as possible should that becomenecessary.
7.
What is the correct timing?
Take the holidays into accountwhen you plan your purchase of a flower shop.
Valentine's day isthe single largest day, but Christmas is more of a marathon.
Mother's Day, weddings, proms, graduations and anniversariesteam up to make the spring months a nice busy time.
Dependingupon your market, the summer can be a difficult time to makeends meet.
Ideally, you'd take over a shop with enough time toget your feet wet before a holiday, but not with so much downtime that your funds dry up before you can get going.
8.
What other opportunities exist, and at what cost?
Here's theacid test.
Take the time to sort out the options.
Let's work onthe assumption that you WILL own a flower shop in the next year.
Take a big sheet of paper and draw a line down the center.
Atthe top of the left column, write "Buy and Existing FlowerShop".
In the Right column, write "Open a New Flower Shop".
Nowdraw a line through the middle of the paper, so you have a topand bottom.
The top is for pros and the bottom is for cons.
Fillin the grid with as many items as you can figure.
Ask yourtrusted business friends and floral professionals for help.
You'll be considering such items as the finances and themarketing plan of your business.
When you have completed thisexercise, you should have two things.
One is a good tool to helpyou make a decision.
The second is the beginnings of a businessplan.
Whatever your decision, a business plan is essential.
It is yourroadmap for success and will be necessary for a business loan.
It is worth the extra time at the onset of this journey tocompare the options and make the best decision you can.
About the author:Karen Marinelli is a Floral Industry Professional with nineteenyears of experience in the academic, retail and wholesalesectors of the industry.
She believes the common goal should beto sell more flowers to more people, more often.
For informationon How to Open a Flower Shop, visit ://openaflowershop.
com/.
To order flowers online, visit http://send-flowers-online.
ws/.
Return to HOME to read more articles RSSTAGHERE4
CLICKBANKBUDDYTAGHERE5 .
Create
an Economic Recovery Fund (like the
International Monetary Fund) to Purchase,
Guarantee and Trade the Toxic Mortgages
on the Financial Institution Balance
Sheet , 
Your Ticket to online Income
Recovery from Home.
The
Ultimate Grass Root Bail Out.
Financial Success
is our
#1
Priority
Located on these
(see
below) 106
Domains, selling
FullTime to
500 Million
Buyers with
Multiple Income
Streams
(see below in module
4)
delivering Sales
and Income from
each of the
106 Portals
all
across the Internet
Generating Sales
and Income For
You 24/7, 365
days a Year.
This
Home Income portal implements the most powerful methods for making profits online, and
it is the only online business I have to earn a living.
The Home Income Portal you provide for everyone is awesome! Anyone who
wishes to make money through on the internet should subscribe
for one.
