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.
[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.
