Monday, April 20, 2015

How much money will it take to start a feed store business?

How much money will it take to start a feed store business?
This is a good question. The first thing to do is list all items needed to start the business, then all the inventory required, then additional business costs related to managing the business. It is not clear if you plan to sell to individuals or other businesses and this has a tremendous impact on the cost to start. Selling to individuals "retail" requires a leased store, interior shelving etc. Figure 30k for a years lease, 25k in store preparation (lighting, cash register etc., etc.)and $200k in on years inventory cost and 20k on administrative costs like banking and bookeeping and insurance. So, something on the order of $300,000 in advance of starting. For selling to other businesses you usually have less building costs but higher inventory costs so about $400,000 up front before you open your doors. These figures are general costs involved with any retail store business where the owner actually makes a profit over the long haul.

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