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.
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.