Budget and Cost Considerations for Retail Store Design and Fitout

June 30th, 2016
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Whether you have a budget of $2,000 or $50,000, it is important to know the cost considerations of a retail store design and fitout. Should you decide to expand or start anew, knowing all the costs is imperative to the success of the fitout.

Operating Expenses for your Retail Store Design and Fitout

Rent and operating expenses are a top priority and have great significance. One of the biggest costs to consider is the first month rent. You should also set aside property taxes so you do not get behind. Other expenses include security deposits such as for utilities and the rental lease. Depending on the geographical area of your business, these expenses can greatly vary. As well, location within a town can make a huge difference on cost. However, sometimes a shop that has higher rent also is a prime location for shoppers. Generally, experts agree that you should start with a middle-of-the-road location that is close to residential housing or a shopping center.

Improvement Costs for Location

Sometimes just a makeover is needed to help improve and modernize your business to increase sales. Improvements to consider are renovations of the bathroom, new flooring or just a quick paint job. Costs for improvements include construction expenses, handyman and supplies, store fixtures like shelves, racks, a cash counter, bookcases, mannequins, gondolas and other items.

Other Operating Costs

Sometimes it is the small things that are forgotten. Unfortunately, the purchase of small items can add up quickly. Some things to consider in your budget are liability insurance, office cleaning and supplies, organization fees and directories, the setup of accounting and even small items like clothing hangers.

IT and Other Related Necessities

In today’s age, computers and other gadgets are a necessity for any business. Expenses to consider are at least one computer with the amenities like high speed Internet through a cable modem. Also, a website for your business is advisable along with domain registration; web hosting, website design and development, email and specialized software for the resale industry to help make your business run smoother. To save time and money, IT support and consulting is a great investment. Other devices you will need are a cordless phone and a laser printer.

Inventory

The cost of your inventory is directly related to on the type of business you open. A good rule of thumb is to make sure to order enough stock to last at least a month. As well, use a certain percentage of your sales to restock you shelves. Empty shelving can not only hurt your business but will reflect on your brand.

As well, take inventory of your goods at least once a month to see what is selling and how much. This will give you an idea of what you need to order. Also, customers suggestions on what items they would love to see you carry are always helpful.

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