The biggest question is probably “What are the costs involved in opening a sporting goods store?”. According to Starter Story, the average cost for starting a sports business is $39,237. However, it should include start-up and ongoing costs to make it up and run in at least 2 months.
Initial cost of a sporting goods store
The first is rent, as you’ll need to buy or rent retail space for your sporting goods business. Also, you’ll need to build a website for starting a sporting goods store online. Finally, the overhead costs include applying for a business license, business registry, initial inventory, stocking shelves, insurance, and utilities such as software and hardware.
Ongoing costs of a sporting goods store
Ongoing expenses include monthly rent, utilities, inventory, employee wages, and employee insurance. Here is a summary of some basic costs:
From a primary financial projection, you compare costs with your existing funds to determine how much you need to borrow and what kind of profit margin can be expected. Once you’ve completed your business plan, you can take it to a loan office and bank to apply for a credit line or a small business loan. It helps rent store space, buy inventory, and pay employees before you can start turning a profit.