Hello!1 of 1 people found this helpful
It's so great that you are looking to open a convenience store! It will likely be very profitable if you can find the right location and market to the right group.
Are you currently working on a business plan? Could you give us a little more information in regards to your location because that will be a huge factor in determining your overhead costs.
Thanks to both of you (RanksIntl and Luckiest) for responding so quickly. Yes, more background WOULD be helpful! I own a second home in Myrtle Beach, SC. and plan on moving there permanently.
I would like to target my location along Ocean Drive close to piers/hotels further down strip in more residential neighborhoods and not MB proper. Population of towns further south is less since most are vacation homes and not hotels as in MBeach. Avg population is 2-3 thousand residents in these areas - most are not year round residents. March thru October are high vacation months and houses that are rented are usually full. So yes, my annual revenues will have to be within 8-9 months of year.
As mentioned, I am just starting research and not even close to business plan stage as yet. I will be in SC in a few weeks to do the real legwork research.
Guess at this point I was wondering if there was a "rule of thumb/ range" of costs / revenues. I don't plan on taking out loans for business. Is it realistic to think I can fully set up and stock a store on 25K or less? I project monthly expenses to be 25K - is that too low of a projection or too high (based on 2500 month rent). Are avg month sales 10, 30, 50K month? Bottom line, is it possible to cover my own personal monthly expenses (which I can do now on a 75K yr salary).
I started this by wondering how around my neighborhood in lower Westchester NY, there are 5 deli's within 4 blocks and they are all obviously making it since they've all been open over 5 yrs each. Yes, I realize the population is much much higher but 5 in one small area?? How much are each of them making per month to pay Westchester rents, which as you NY'ers know is high and themselves? So on that note, I thought, if they can do it so can I!
Great attitude! I started doing some real estate research for you in that area. It seems like you are looking to rent. In that area the amount that you are willing to spend may not be a viable idea. Is buying or leasing out of the equation? There unfortunately really isn't a rule of thumb. It comes down to what you are looking to sell exactly, how extensive your selection will be, etc. I think that $25,000 may be low balling it a little bit but you can always research ways around that. I think that if you start up your business at the right time of year so that you are open during the peak eight or nine months there is the distinct possibilty that you will be able to supposrt yourself after the first few months of business. A lot of this comes down to your plan of action and your business plan. The better you plan the more likely you are to succeed. Several businesses that I've seen make an average of $30,000 and definitely upward, the only difference is that a lot of those places have gas stations and that is a majority of their revenue. I would love to help you so if you want to email me I can do some preliminary research for you and help you weigh your options.
Thanks so much for your advice Renee!
I think to begin with I'll rent. I do have real estate contacts in this location and they'll be able to advise what's best on space. I too think I'm low balling it . The average scenario you stated is what I'm coming across also.
As I get some hands on research down there, I'll have a more realistic view of the areas. I'll take it slow, carefully research and prepare. I too am a big believer that planning is the key to success and I'm not in a rush.
Convenience Store Start Up
Thanks for sharing. Research is good. SCORE can help. SCORE is FREE both in person and online.
SCORE can also help with a business plan and also has a FREE Virtual Learning Center with 26 FREE Courses that can help.
Good luck, Again LUCKIEST
Convenience Store Start Up, Welcome1 of 1 people found this helpful
Go to Members page and share some info. Who are you?? Where are you??
You ask about costs?? Costs vary by location. East coast??, West coast?? Big city??
By an interstate exit?? or in town??
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That would be very difficult to start up with only 25,000.
You have to account for your lack of business for atleast first 6 months so you will have to have money saved up to pay rent and payroll. Sometime conveninece stores are only profitable if you are a gas station. Convenience stores usually are just enough money so you do not need to seek employement. Sometimes they are not even that. depends on location and neighborhood and the type of people around your area. Mixxed areas are best for convenience stores anywhere that the crime rate is high is usually the ideal location for a convenience store due to large amounts of people will be buying Cigars to smoke and get munchies and buy more than they really would buy. If you are in a area that is not so below the poverty line you will have issues with the large companys such as Bigy and big produce stores. It also depends on the Person working there if they are people friendly and able to joke around with there customers to get a friendly basis with them so they keep coming back. which is the biggest key to a conenient store. Giving customers a few dollars off and having them pay you back also is a large help to help customers return. Only to well known customers of course.
To start up a succusfull conevenient store i would say at least $80,000 to start but more would always be a safer bet. with 25,000 you will run into numerouse problems.
I am interested in opening a convenience store and have just started my research. Maybe someone can help me further.
In regard to start-up costs, I have only come across projections for larger operations with gas stations. I would not have gas station.
1. Can anyone advise as to how much a 1000 sq ft store might cost to set up? I wouldn't be going overboard with expensive displays or equipment - would probably rent equip to begin with and purchase 2nd hand shelving.
2. What the average monthly cost to run the store would be? All expenses plus small salary for 2 people (owner & 1 hire)
3. Approximate revenues weekly or monthly.
Actually I'm just wondering if it could be profitable at all based on costs of expenses I'm seeing for rent, insurance, etc.
Thanks for your help