How do you make a feasibility study for a flower shop?

Answer 1

There are many factors to a feasibility study. The first line of approach would be the market survey. In short, can you make money in this business at your desired location? For the flower shop, one must remember that it is a niche business. A niche business serves a particular clientele, catering to their needs. By it's nature, the flower shop is a specialty shop.

The mean average income of the location's surrounding inhabitants would be an excellent means of finding out if the location is desirable for this business. It would be of little use to have a flower shop in an industrial park. But it might be profitable to be near a high school, a church, or a hospital. All these locations have opportunities for the shop to service the special event trade and the get well/sympathy buyers.

Having determined that the location is optimal, the accounting ledger must be consulted next. Expenses such as rent, utilities, specialty modifications to the location, and the stock within the business must be budgeted. Lines of supply must be addressed, advertizing, hours of the business, payroll, and price lists must be made.

Another item to consider is "word of mouth". With a flower shop, the florist is the key to the operation. If this person has a reputation in the community, you have built in foot traffic. This traffic takes care of the day to day overhead expenses while at the same time, generating community support for the business.

A feasibility study would not be complete if you didn't allow for employees. Should the venture require more that the one owner/operator, labor costs have to be factored into the operating expense.

So, looking at this information, is the business a good investment? Location, ease of access, foot traffic, and reputation are things that must be considered in a niche market.