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Date added: 05/16/2016 Thinking About Starting a Retail Business? Here Are the Startup Costs

Starting a retail business is a big deal, regardless of how big you want your business to be. There are a lot of things that you need to take care of before you open your doors to the public. This article will walk you through the essential steps of starting a business.

1. Rent And Utilities

If you want to start a business, then you must find a place to sell your goods from.

Rent varies from place to place depending on locality and size of your premise. In addition to the rent, you must also be prepared to pay for utilities such as electricity and water.

Although this cost may vary, you should to set aside about $4,000 to cater for rent and utilities.

2. Customizing the Space

Depending on the kind of goods you intend to sell, you must budget some money to transform a bare room to a shop. This means setting apart some money to make shelves, counters, racks and pop clips - to mention but a few things.

Moreover, you might need to carry out some renovations in the premises, so consider this as you budget to start your business. You may anticipate spending something about $6,000, although the cost of customizing may vary widely from one business to another.

3. Inventory

This is perhaps where most of your money will go to, because there's simply no need to rent a room and renovate it if you have nothing to sell.

Stocking your shop is very important. There's no way to estimate how much you can spend on your inventory, because you can stock as many goods as your budget allows.

Nevertheless, it's important to start with little stock to allow the business to get off its feet. From the proceeds you can then continue expanding your business.

4. Licenses and Permits

Before you launch your business, make sure that you have acquired the necessary permits from the local authorities. Although this might cost you some money, it's better than having trouble in the future with authorities when your business is at its best.

5. IT

From the very beginning, use technology to your advantage. Purchasing a desktop computer or a laptop might mean additional startup cost of your business, but it will pay off in the long run.

A computer is important in running a business, because it's more effective and is not as prone to making mistakes as human beings are, so you might as well use it to your benefit.


Starting a business can be overwhelming, but if you do these starting things right, your business will grow fast. Avoid shortcuts by all means.

Spend a reasonable amount of money to take your business off the ground, and it will remain above the ground for a long time.

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