Retail Business

How Much Does It Cost To Start A Retail Business? (In 2024)

Updated: January 18th, 2023

Looking to start a retail business?

But curious about:

  • how much it costs to start a retail business?
  • what are the typical retail business startup costs?
  • or the actual cost of starting retail businesses?

Well, we have the data to prove it, supported by real retail businesses and how much they actually cost to start.

Let's go over it.

Learn more about starting a retail business:

Where to start?

-> Pros and cons of a retail business

Need inspiration?

-> Other retail business success stories
-> Marketing ideas for a retail business
-> Retail business names
-> Retail business Instagram bios

Other resources

-> Retail business tips
-> Retail business quotes

Equipment & Supply Expenses

Starting a retail business may require purchasing some equipment, whether that's for producing the product or packaging the goods, or equipment needed in the back office.

Cost Required? Min Cost Max Cost
Cleaning Supplies ➜

Optional

$63

$200

Uniforms

Optional

$0

$500

Retail Business Expenses

If you plan to have a brick & mortar location for your retail business, you must weigh the costs of your rent, as it may be the most expensive part of running your business.

Rent costs for your retail business very much depends on your location. This cost will vary by both region and specific areas of town: a lease in the heart of Manhattan could cost over $80,000/month in rent. Meanwhile, a storefront lease in Florida or Tennessee could cost less than $1,000/month.

Cost Required? Min Cost Max Cost

Shop Decor

Optional

$0

$5,000

Utilities (storefront business)

Optional

$0

$1,000

Building improvements and remodeling

Optional

$0

$950

Storefront Property Rent ➜

Optional

$1,250

$3,500

POS System

Optional

$0

$1,200

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Cost Required? Min Cost Max Cost

Set up business: LLC & Corporations

Required

$50

$500

Small Business Insurance

Recommended

$500

$2,000

Permit and License Fees

Optional

$50

$700

Trademark

Optional

$0

$700

Lawyer Fees

Optional

$0

$1,500

A Patent ➜

Optional

$5,000

$15,000

Software Expenses

Your retail business needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Cost Required? Min Cost Max Cost

File Hosting Service

Recommended

$0

$299

Email marketing tool

Recommended

$0

$100

Accounting & Invoicing Software

Recommended

$0

$50

CRM Software ➜

Recommended

$12

$300

Project Management Software

Recommended

$0

$25

Internal Communication Tool

Recommended

$0

$20

IT Support ➜

Optional

$150

$2,000

Design Programs & Software

Optional

$0

$50

Social Media Management Tools

Optional

$0

$50

Payroll Software

Optional

$0

$200

Office Space Expenses

It will be your call to determine if you need office space. It is not a requirement but may be necessary as your retail business grows.

Cost Required? Min Cost Max Cost
Rent ➜

Optional

$0

$5,750

Utility Costs For Office Space ➜

Optional

$0

$1,150

WiFi & Internet ➜

Optional

$0

$100

Employee & Freelancer Expenses

Cost Required? Min Cost Max Cost
Payroll Costs & Fees ➜

Optional

$150

$250

Employee Hiring Expenses

Optional

$1

$2

Employee Rewards ➜

Optional

$0

$100

Website Costs

Every business should have a website, and it's worth spending a bit of money to set it up right.

Cost Required? Min Cost Max Cost
Domain Name ➜

Required

$12

$200

Website Hosting Costs ➜

Required

$0

$300

Website Builder ➜

Recommended

$10

$500

Business Email Hosting Service ➜

Recommended

$1

$15

Website & Live Chat Tool

Recommended

$0

$200

Web Designer ➜

Optional

$200

$6,000

Inventory Expenses

If you sell a physical good, you'll likely have to start with some inventory.

Cost Required? Min Cost Max Cost

Upfront Costs For Inventory

Optional

$300

$5,000

Inventory Storage

Optional

$0

$5,000

Package Design ➜

Optional

$50

$3,000

Shrinkage

Optional

$0

$1,000

Distribution costs

Optional

$0

$750

Advertising & Marketing Costs

Cost Required? Min Cost Max Cost
Business Cards ➜

Optional

$0

$50

Local fairs and festivals

Optional

$0

$500

Business Signage ➜

Optional

$75

$2,486

Direct Campaigns, Printing and Mailing

Optional

$0

$300

Influencer Marketing

Optional

$0

$750

Press

Optional

$0

$500

Google Ads

Optional

$0

$300

Facebook & Instagram Ads

Optional

$0

$350