Many of us dream of opening our own shop and filling it with beautiful things,but not many of us take the plunge and go as far as putting plans into place.Even fewer people consider the harsh financial risk of opening up a retail store. You need a business plan and a financial budget that includes everything from shopfitters, rent, and licensing to marketing costs, inventory maintenance,and a high-speed internet connection. So, if you’re lacking inspiration to get your financials in order, require more information, or just simply need a kick in the pants to get you on your way, here is a list of start-up costs to consider when constructing your financial budget.
Table of Contents
Location Costs
The fundamental group of costs to consider include rent, leasing costs, and bond requirements for the location of your store, whether it be in a commercial shopping precinct or a local convenience hub. The only case where this wouldn’t be a primary cost to keep in mind is if you were operating an online-only store.
Shopfitters
Shopfittersare crucial to the budget because they establish the look, feel and flow of your retail space. Look to specialist shopfitters such as TU Projects to get your space customised, fixtures installed, and floor plan tailored exactly how you imagined it.
Inventory Costs
Costs involved in sourcing, securing and receiving your inventory stock can add up, especially if you have merchandise coming from international suppliers or very obscure places. Always make sure you are able to make a profit on the product once the store opens.
Operating Costs
Operating costs including office supplies, coat hangers, general cleaning equipment, banking fees, and a registered postal address are everyday costs that the business will require to keep it running smoothly and efficiently.
Professional Fees
Take into account professional fees, including licenses, business registration, legal fees, and accountancy charges.
Staff
Your staff must be hired and trained before the store’s opening and employment benefits that an employer is required to provide need to be accounted for.
Equipment
Telcom and IT equipment, such as a computer, printer, cordless phone, high-speed internet connection, domain registration, and POS software need to be purchased.
Marketing Costs
Marketing and budgets need to include interior and exterior signage, styling, décor, business cards, promotional printing, public relations, social media campaigns, and more.
The Launch
Opening your store with a launch event is an important part of the journey as it marks the end of one chapter and the beginning of another. Great launch parties often involve food and beverages, goody bags, promotional materials, entertainment, an exclusive shopping experience, and crucial media coverage.
While every scenario is different depending on the type of store, location, and target market, these are the major start-up costs to consider before opening a retail store. And, while they may equate to tens of thousands of dollars, you will be able to see your shop come to life and flourish as a result of your hard work and dedication. Once considered and accounted for, each of the above costs work to benefit the business and secure a return on your investment.
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