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.
To estimate marketing expenses, start with the amount of monthly retail sales you want your store to generate. Then choose a percentage of that amount to budget for marketing and advertising. As you begin your business and measure the productivity and results of your efforts, you can increase or decrease that amount.
Let's say your business needs to generate $25,000 a month in sales in order to make a profit. If you choose to apply 3% of your monthly sales to marketing, then you have $750 for marketing. As you build your marketing strategy, you’ll learn where to best spend that money for the greatest coverage.
