1. Money

What will it cost to lease a store front?

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Question: What will it cost to lease a store front?
Evaluating startup costs can be difficult for new retailers. If several of the steps to planning a business require you to have a retail business license, how will you obtain the necessary information to determine whether or not your retailing business plan is a viable one? The bottom line is many of the figures for the business plan will need to be estimates.
Answer: Start by looking at vacant properties in the area you want to open your retail store. Most areas have an average price per square foot. For example, a 1900 sq. ft. store in a popular shopping center located directly in front of a busy highway may run $13 per square foot. This retail store would cost approximately $2058 per month.

[Total Square Feet x Price per Sq Ft. ÷ 12 (months) = Monthly Rent]

A similarly sized stand-alone building located one-half mile from that store may only be $7 per square foot. For the purpose of writing a business plan, using an average price of $10 per square foot would be a safe assumption in this example. Be sure to estimate the cost of utilities, maintenance and possible rent increases.

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