History: After receiving a Bachelor of Science Degree in Ornamental Horticulture, the owner created this sole proprietorship in 1982. Her husband has worked in the business since the beginning. The majority of clients are located in San Francisco and the rest are from the entire. SF Bay Area.
What the Company Does: This company sells or rents indoor tropical plants, placed in decorative containers, to commercial businesses and then provides the weekly on-going plant maintenance. There is also a Color Program, providing on-going potted flowers like Orchids and Bromeliads. A seasonal service that is provided is decorated and un-decorated Christmas trees, wreaths,
garland, and Poinsettias.
Currently, there are 130+ customers paying monthly fees. These include corporate offices and lobbies, hospitals, car dealerships, government buildings, and many more. This business does not do residential work and does not sell in a retail setting. It is not a plant store or a florist. It is strictly business to business. This is a simple business, easy to learn.
The business enjoys the best of both commercial worlds: sales and on-going service. One advantage of this selected type of business is that it is technology-proof. How one takes care of a plant today will never become obsolete tomorrow- it remains constant. One more perk is the reduced cost for offices and warehouse because the client never needs to come to the office; from start to finish, employees go to the client.
Employees: This business has 4 full-time employees, 1 part-time employee, and 1 occasional worker. The business fosters happy and satisfied employees, one who has been with the company for 15 years and another for 12 years. All employees are eager to continue working at this business after the sale.
Reason for Selling: The Owners are retiring. Currently, they have hired employees to do much of what they used to do. A new buyer could easily make more of a profit by working full time and reducing the wages they have to pay.
Growth Potential: The Owners have had a relaxed attitude towards growth, relying on referrals, an excellent reputation, and a $220/month Google AdWords account for new clients. Even with this relaxed attitude, the business grew 11% in gross income and 20% in net income in 2015. Someone who is younger and willing to have a marketing program and an enthusiasm for sales
could make loads of money.
The business has been through 3 recessions and although it did lose some clients, the business always remained solid and recession-resistant. Many of its competitors went bankrupt and there are not nearly as many Interiorscape Companies in San Francisco now as compared with 2008. There are so many businesses in need of plants in the SF Bay Area, the demand greatly exceeds
The single customer business risk has been estimated to zero percent due to the fact that the portfolio of customers appears highly diversified across a relatively large number of small- to medium-sized accounts. The business currently has 130+ long time customers paying monthly fees. There is no dependence on a small group of large-account clients.
The start-up business risk is not relevant because the company has successfully operated from Y1982. Thus, the projections and growth rate for the forecast period and beyond can be taken with low risk/minimal uncertainty.
Treasure Island, San Francisco, CA
Your growth is only limited by your dreams! Huge Growth Potential. Strong Client Base.
4 Full-Time, 1 Part-Time, 1-Occasional