If you want to open a sporting goods store in the United States, then you should be ready to spend between $300,000 and $1 million or more depending on the type (online or brick and mortar), size, whether or not it will be heated, require electricity and how you will have it plumbed.
Your retail storefront will require another $40,000 investment minimum and your start-up supplies will run you another $75,000 to $145,000.
However, to open a sporting goods store, certain factors can influence the overall cost of opening the business. Some of the factors are universal, while some are unique to the city, state, or country where you want to open your store.
A sporting goods store is a business that specializes in retailing a wide range of sporting goods, and interestingly, there are no niche ideas when it comes to a sporting goods store business.
Sporting goods stores cater to a diverse customer base, offering a wide range of products for activities such as camping, hiking, fishing, team sports, and individual fitness pursuits.
To get a clear understanding of how much it will cost to open a sporting goods store in your city, state, or country, then you should consider the following factors.
Factors That Influence the Cost of Opening a Sporting Goods Business
The Cost of Lease or Rent
Interestingly, the size of the store you want to lease, the location of the store, and the additional facility that comes with the lease agreement will determine the amount you will spend.
For example, in the United States, for a space of around 1,500 square feet, you should look towards spending anything from $15,000 to $42,000 per year or $1,250 to $3,500 per month.
The Cost of Registering the Business and Obtaining the Needed Licenses and Permits
If you are looking to start any business in the United States, you will be required to obtain the needed business licenses and permits such as:
General business license, health and safety permit, zonal permit, signage permit, resale permit, and operational state facility inspections before you can legally start and operate the business. Different states or cities have different requirements when it comes to starting a business.
The Cost of Start-Up Inventory
There is no fixed amount you are expected to spend when it comes to stocking up your sporting goods store. To start a sporting goods store, you will need to stock up your store with essential inventories that encompass a diverse range of sports equipment, apparel, and accessories.
This includes items for team sports such as baseball bats, footballs, and jerseys, as well as gear for individual activities like hiking, camping, and fishing. Fitness equipment, athletic footwear, and related accessories should also be stocked.
Note that giving an estimate of the initial inventory cost can be challenging, but it is important to stock enough products to attract customers while staying within your budget.
The Cost of Employing Workers
Although you can open a sporting goods store as a one-man business, but if you want to open a standard sporting goods store, then you should make plans to employ workers that will work with you.
You should plan to hire a store manager, accountant (cashier), administrative assistant, and sales girl or salesboy. Trust me, employee wages such as recruitment fees, training, salaries, and any additional costs like payroll taxes, benefits, and worker’s compensation insurance et al is a major cost.
The size of your sporting goods store, the number of workers you want to employ, and of course the additional services you want to offer in your sporting goods store will determine the amount you should budget.
Note that your operational expenses are part of your ongoing expenses and they include utilities, maintenance, accounting software, security, software systems for inventory management,
Point-of-sale (POS) systems, customer relationship management (CRM), and other ongoing expenses associated with running a retail business such as a sporting goods store.
Additional Services Offering
A standard sporting goods store can conveniently provide various services to cater to the needs of its customers. They can offer additional services such as equipment rentals, specialized gear fitting consultations, sports equipment repair services, and organized sports clinics or workshops.
These services will attract more cost of opening the business because you are expected to put structures and processes in place to make it happen.
Miscellaneous expenses refer to costs that do not fall into specific categories but are still necessary for the operation of a business. These expenses can vary depending on the nature of the business and individual circumstances.
For a sporting goods store business, your miscellaneous expenses can cover professional services (such as accounting, legal assistance, and possibly repair services),
Expenses related to shipping products to customers or suppliers and postage for mailing documents or packages, and also costs associated with office supplies, packaging materials, credit card processing fees, internet and phone services, and professional memberships.