If you are considering starting a vitamin and supplement store business and you are not too sure of the startup cost or if the business will be profitable, this article will give you the needed information. No doubt, dietary supplement business is a profitable business because various types of vitamins and supplements are consumed by almost everybody both old and young, sick and healthy.
Aside from the fact that the startup capital ranges from low to moderate, it is important to state that starting a vitamin and supplement store business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture, especially if you locate the business in good location and you know how to source for supplements that are generally consumed in the location where you have your retail outlet.
The Estimated Cost Breakdown to Open a Supplement Store
When it comes to starting a standard supplement store business, one is expected to spend the bulk of the startup capital on renting a store facility. Aside from that, you are expected to purchase distribution vans, large stock of dietary supplements if you don’t produce your own supplements, pay your employees and utility bills.
In view of that, here are the key areas where you are expected to spend your startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the dietary supplement store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant including writing a business plan – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $46,000.
- The cost for store remodeling (construction of racks and shelves) – $5,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory (stocking with a wide range of supplements in pill, powder or liquid form and also vitamins, minerals and herbal products (which is also known as botanicals) and packaging materials) – $30,000
- Storage hardware (bins, rack, shelves, preserving case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs, and car tracker devices – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost for the purchase of delivery vans – $15,000
- The cost of launching a Website – $600
- The cost for our opening party – $3,000
- Miscellaneous – $1,000
From the rough estimate as listed above, you would need a minimum of one hundred and ninety – two thousand, one hundred USD ($192,100) to establish a medium -scale but standard supplement store business in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a dietary supplement store to go to the market or directly contact sellers of the items in a bid to get the real time prices of these items, and also partner with dietary supplements production companies if they are not going into production but just retailing.
The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
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