Online startups are all the rage at the moment, but what about entrepreneurs who dream of opening a brick and mortar store? Online shopping may be dominating the world of retail, but many physical stores are still going strong, so there’s every reason to believe your goals are achievable. Opening a retail store is clearly more expensive than launching an online business and it can be more challenging. However, the costs and effort involved will vary according to many different factors. Here’s a quick guide to help you get started.
Start with a Business Plan
The first step to starting any business is to have a solid plan and put it down on paper. You don’t need to know everything right away – your business plan will be a work-in-progress, and you’ll keep adding to it as you go – but it’s important to do this first so you know how much money you’ll need to open your store.
Research Locations
As you’ll be running your business from physical premises, you need to think carefully about your store’s location. Firstly, you need to find a gap in the market, such as a spot in the city center with plenty of footfall that’s crying out for a coffee shop, or an area near a railway station that would be perfect for selling flowers. When you’re looking for a retail unit you also need to consider the kinds of clientele you’re likely to attract, and the cost of renting in that area. All this information will go into your business plan.
Work Out Your Startup Costs
The startup costs of opening a brick and mortar store will understandably be far greater than if you were launching an online business, so you need to budget carefully. Your list of startup costs should include everything you need to spend in order to get to a point where you’re ready to open the doors to customers. You’ll need to consider rent, store fixtures, equipment, inventory, office supplies, business insurance, advertising, employee wages and your own basic salary.
Don’t forget to include CCTV and a security alarm (at the very least) in your startup costs. All your hard work will have been for nothing if your store gets burgled the day before your insurance kicks in. If you’re looking for a reputable provider, Eurolink Security can help you protect your business with commercial burglar alarms, CCTV security and other tailored solutions.
Calculate Your Operating Costs
Your startup costs are just one part of the equation; you also need to work out your operating costs to determine whether your business idea is sustainable. Keep in mind that you will need to cover these operating expenses until your business breaks even, and it could take months or even years for your store to be profitable. Your monthly expenses will include rent, phone bills, utilities, taxes, wages, insurance and anything else that requires you to run your business on a day-to-day basis.
