Use this checklist to assess businesses in this industry for SBA 7(a) lending and underwriting.

Owner Role + Labor Normalization

• Does the owner do all floral design, ordering, and event planning?
• Are there trained designers or delivery staff in place?
• Has owner labor been replaced with market wages?
• Is the shop dependent on the owner’s creative skill?

Inventory + Perishability

• Are fresh flowers valued correctly (not full cost)?
• Is inventory rotated, aged, or regularly discarded?
• Are hard goods (vases, gifts, décor) tracked separately?
• Is obsolete or expired inventory included improperly?

Seasonality + Revenue Spikes

• How much revenue is tied to holidays or wedding season?
• Have spikes (Valentine’s, Mother’s Day, prom, etc.) been normalized?
• Is event revenue recurring or ad hoc?
• Are delivery/service fees broken out from product sales?

CapEx + Equipment

• Are walk-in coolers, POS systems, or vans included?
• Is CapEx normalized in free cash flow?
• Are any assets personally owned or excluded?
• Is the shop leased with proper terms for continuity?

Red Flags

• Owner is sole designer with no staff support
• Inventory valued at full cost regardless of perishability
• Addbacks = groceries, family payroll, or lifestyle supplies
• No seasonal revenue normalization or delivery cost adjustment

SBA SOP Tip

Florists must reflect seasonal adjustments, perishable inventory risk, and normalized labor. Value should focus on transferable infrastructure, not just design talent or event connections.