Setting Up Shop For Your Start-Up Business

how to set up shop for start-up business plan startups

The actual cost to set up a retail store for your start-up business varies depending on the type of your business, store size, and the location where you want to open your store. Variable costs differ for each business but to find out what your shop will cost to open, you should put all perceivable costs on paper. For instance, micro businesses that run with one employee, the owner, can be started for under $5,000 or even less. However if you want to have a physical shop space, it will cost more because of all the other expenses that have to be considered. 

Develop A Business Plan 

To find out how much money will be needed to start your new business, a business plan is integral. You should put in realistic calculations for start-up and monthly operating costs. The plan should also estimate when your business will reach its break-even point (BEP). A well thought out business plan gives you a fair idea of the funds required for your business. This is also essential information that you need to provide lenders, backers and banks in case you want to take out a loan, as it shows that you have calculated all aspects of costs and risks, and that your business idea is worth their investment. 

Don't Underestimate Your Expenses 

One big mistake that is made by many start-up business owners is that they underestimate their expenses. It is wiser to err on the side of caution and overestimate rather than underestimate to come up with a realistic budget for expenses. Even when it comes to borrowing money, the cost of financing depends on the risk involved. So depending on the business you’re getting into, you should plan for that. Additionally you will need to allocate funds for costs that you may not even consider in the very beginning, like lighting. Plan for these costs by visiting trusted vendors like Lepro and checking out how much you will need to budget for these items. You can avoid many unanticipated expenditures by being as exhaustive, precise, and realistic in your startup plan as you possibly can. 

Calculate Basic Start-up Costs 

Tabulate a list of everything you will need to get done before you are ready to welcome your first customers in through the doors. Brainstorm and try to identify each and every thing that will cost you money, starting from big ticket items like shelving or seating, to the T8 tube light bulbs you want to use, down to the soap you will put in the restroom, and calculate how much each line item will cost. 

Some typical start-up costs include: 

• Rent 
• Licensing and permitting fees 
• Store fixtures 
• Initial inventory 
• Equipment and technology 
• Web hosting 
• Janitorial supplies and services 
• Business insurance 
• Advertising 
• Signage 
• Interior decor and aesthetics 
• Professional services 
• Miscellaneous costs 
• Operating Expenses 
• Borrowing Costs 
• Opening event costs 

Smart Startup Setup

There may be more or fewer things to account for depending on the location and the size and type of your startup store. With the right planning soon you too will join the startup ranks of small businesses in the US, and will be in the running to pursue the American dream.

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