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Cost to open a clothing store

  cost to open a clothing store

Cost to open a clothing store - How much does it cost to open a clothing store? That’s like asking what’s the size of your son’s (or daughter’s) shoe. It depends on a lot of things like the age, the build, and size of your daughter (or son). There’s no single answer to either of these questions. Unlike the size of your offspring’s shoe, however, in the case of a clothing store, much depends on what you want, rather than what you’ve been handed with. The answer in short, is that it would cost you as much to open a clothing store as you wish. This obviously does not mean that you can put up any type of shop with your wish budget, but simply that you decide the type of shop based on the budget that you can afford. There are ways by which you can estimate the total cost of putting up a store. Let’s see how this can be done. Cost to open a clothing store

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The total cost of putting up a store consists of the following items:

o Owning or leasing the store: This will be the cost of price of the shop plus all costs associated with acquiring it, if you are buying a shop. If you are planning to lease it, this will be the initial payment that you need to make.
o Designing and decorating the store, and furnishing it
o Assets: These will include office equipment, computers, vehicles and so on.
o Initial promotion
o Holding Stocks: You will have to invest a certain amount of money on stocks. You will get the money when you sell these stocks, but you will also have to replenish the stocks. So at any time a certain amount of your money will be blocked in stocks that you hold. This should also be treated as part of your fixed investment and initial cost.
o Pre-operative expenses: You will incur some expenditure, which is not represented by any asset that you acquire. For example, you may incur traveling or conveyance expenditure in locating and procuring materials. All such expenditure will be part of the cost of putting up the store.

Now that you know what elements constitute the cost of putting up the store, the next step is to estimate the amount under each of these. The first two items are fairly simple, as you can get quotations or estimates for these. You will need to provide a reasonable promotion budget. This will depend on the type of promotion that you plan. You can also estimate the amount that will be locked up in stocks fairly accurately. Make a list of which items you intend to hold and the quantity of each. You can obtain the prices of these items from the market to arrive at the total cost. To estimate the pre-operative expenses, you may have to make a budget of various expenses and the amounts that you are likely to incur. Cost to open a clothing store

With the above information, you will have a fairly accurate idea of the total cost of opening a cloth store.Cost to open a clothing store

 

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