Flower Shop Profit Potential?

Question

I'm a Realtor and my mother is looking to open a flower/gift shop - I have found her a great location for $900 including utilities. I live in a busy part of Los Angeles and there are few shops of this nature in my area - in fact whenever we have to buy gifts we have to travel about 15-20 minutes out of our way to do so. We have the money and I have calculated the cost of every gift (chocolates, balloons, and other gifts) but am having trouble estimating the cost and profit potential of the flowers themselves. Let's assume I'm in a busy area open 7 days a week and the demand for such a shop is somewhat in demand - how much am I looking to spend per month on flowers and what's the potential for income if I sell a wide variety of products such as small bouquets, large, specialty orders and things of that nature... Anyone own a shop like this that could offer me some figures? Thanks!

Answer 1

I run a business similar to this business. She can be successful but the exact figure that she will make in a month are unknown. She will need to track her P&L statements each month to come up with those figures. I make around 1K a month. But then I am jsut starting up as well. after a year her P&L statements will show what she is making and she will be better able to figure out what she will make in a year. But a lot of this will also depend on her customer service skills. She will have to be a people person and do great flower arrangements. This business is not that risky because if for some reason the space was not to work out she could always bring the business home and run it homebased. Good luck.