Cargo Metro

Startup Capital

Posted in Cargo Metro by cargometro on December 28, 2008

I’ve narrowed down the startup capital needed for the store. These figures are not set in stone. They are evolving with my evolving business plan. Please feel free to comment on any of the numbers, if you think they are too low or high. Or, if you see a cost that I am not anticipating.

Startup Capital

Inventory……………………………$1,800
Printer/Software…………………..$700
Outside Sign………………………..$1,000
Fixtures and Counter……………..$3,500
Alarm System………………………$1,000
Stereo System………………………$1,000
Interior Lighting………………….$500
Cash Register ……………………..$250
Listening Stations…………………$700
Renovations………………………..$3,150
City Permits and Fees……………..$245
Furniture…………………………….$1,200

Total Startup Capital………….$15,045

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5 comments

5 Responses

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  1. Stacey said, on December 28, 2008 at 7:35 pm

    Where did you get the numbers?

  2. strategicsenseinc said, on December 28, 2008 at 7:44 pm

    Just some thoughts:
    1. do you have solid quotes to back these up?
    2. are you including your own salary estimating a time of profit?
    3. Do you have no computer needs? Software seems low.
    4. do you have an estimate for rental costs during renovation time?
    5. where are your marketing costs? (build it and they will come is niave)

    Hope some of this helps!

  3. cargometro said, on December 28, 2008 at 8:19 pm

    Strategicsenseinc and Stacey,

    Thank you for the comments. Its truly appreciated!

    1. About half of the line items are numbers from solid quotes (i.e. inventory, outside sign, listening stations, software). The others are pure estimates I anticipate for the space’s condition (approx. 1600 sq ft), which hasn’t been narrowed down yet, except for the neighborhood and street. Any suggestions to capturing more solid numbers?
    2, 4, 5. I didn’t included the salaries, lease rates and marketing costs in this list, however I do have them listed in my cash flow statement. Maybe, I will post the full 12 month cash flow sheet in the next week so it can give you a better picture. I’m currently working on it.
    3. Good catch! I’m providing my own computer system for the store so its not needed. Just the POS system software.

    You’ve been very helpful. If it’s okay, I will contact you within the week when I post the cash flow statement, as well as my marketing plan which is the ‘anti-build it and they will come’ theory :) . This book was ultra helpful: http://www.amazon.com/Marketing-Your-Retail-Store-Internet/dp/0470043938

    Thanks again so much. I bookmarked your blog. Strategy is a true skill.

  4. Susan Negen said, on January 7, 2009 at 9:03 pm

    I agree with strategicsense that your software costs seem too low… what kind of POS software are you getting for $700 including a printer??? Ugh. Go to http://www.possoftwareguide.com and get Jeff’s e-book. Excellent advise and tons of great tools for selecting a POS software system.

    Plus, if this is your POS cost, then what is the $250 for the cash register? I’m a little confused.

    Also, I don’t know what you are selling but initial inventory investment of $1800 for a 1600 sq ft store seems too low also. Let’s say you do a very low $1000 at retail in your first week – $500 at cost estimating using keystone – you will have used up nearly 25% of total inventory in your first week…

    Do you have a sales plan? You need to think about creating a complete open-to-buy plan. Go here for a quick explanation: http://www.whizbangtraining.com/sb/images/reports/pdfs/inv_whatisopentobuyplanning.pdf

    Again… good luck!

    Susan

  5. cargometro said, on January 7, 2009 at 11:04 pm

    Thanks, Susan! Since I am planning on providing a Macintosh computer myself, I was quoted $399 for the POS system (http://www.checkoutapp.com/buy) and $695 for the hardware as a bundle (scanner, printer and cash drawer). In my rough numbers above, I was not incorporating the pricing for the bar scanner. I will definitely get Jeff’s ebook because I am new in the POS systems area so guidance is needed. Thanks!!

    The store is essentially an art gallery so most of the items in the store will be consigned (photo prints, CDs, books). The inventory numbers that I listed are intended for fulfilling the t-shirts, other printed items and some of the books bought through wholesalers/publishers.

    And, I do not have a sales plan in terms of open-to-buy. Thank you for the PDF!!! That’s something I need to put in my business plan. It’s about 75% complete. I plan to post the more final start up capital numbers again soon. You’ve been very helpful. Please keep asking me questions :) !

    Lindsay


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