Last updated: August 2019
If you've ever dreamed of opening your own retail store, you've probably fantasized about the positive aspects such as surrounding yourself with products you're passionate about, being your own boss, and setting your own standards. The hard truth of the matter is that opening a retail store is expensive.
You’ll need to be prepared for all of the costs that opening and running a retail store will require. Here is a breakdown of the most prevalent costs you'll encounter when opening up your own store.
Opening and Operating Costs
- Store layout
- Construction to customize the space
- Repairman to help with general fixes and installations
- You’ll need to fill your store with retail fixtures, install flooring, purchase miscellaneous supplies and make sure all of the pieces and parts that make up a functioning store are in place. Check out our Store Design Process Guide to get your business off and running.
- Security deposit for the rental lease
- First month’s rent
- Monthly rent
- Utilities security deposit
Ordering and restocking your inventory will never go away. It is something that you will always be monitoring and maintaining. You’ll need to manage theft control, the amount of stock on both your displays and backstock shelves, and keep an eye on products that do well and those that aren’t performing. This article from entrepreneur.com tells you all you need to know about managing retail inventory.
Marketing and PR
Especially if you are just starting out, the way you market is critical to your retail store. If you are not selling online an online presence is still very important. Maintaining a social media account, blog and email list are all excellent ways to reach new and current customers. Additional marketing materials could include:
- Signs, flyers, postcards, and direct mail pieces
- Trademark registration
- Business cards
- Digital marketing (social media & blog)
When you are first opening a store, one of the biggest PR moves you can make is having some kind of opening night. Do a softer opening with family and friends to get their feedback before extending the invitation to the public. For your opening, you’ll need to market it, provide some food and beverages, and to really start off with a bang offer some kind of entertainment. This is a great way to get people into your store to see what you are all about. With any luck, you’ll get some FREE word of mouth marketing out of the deal.
No matter how far along you come in your retail establishment you will never escape miscellaneous costs.
- Hangers and updated retail display shelves
- Association fees
- Office supplies
- Cleaning services & supplies
- Shopping bags & boxes
Technology is a vital part of running a successful business.
Now that you've read about all of the costs you'll face when starting your own retail store, do you feel a bit more prepared? We wish you the best of luck with starting your new store and hope this breakdown has helped you in some way. As you prepare for your store's opening, don't forget about your store fixtures. Contact Handy Store Fixtures to speak to one of our store designs specialists today.
Did we leave anything off this list? Be sure to let us know by sending us a message on Facebook or Twitter. We'd love to hear from you!