The lush franchise cost for starting from scratch would be around £100,000. Basically, if you want to open a lush store in the United States, then you should be ready to spend between $100,000 and $250,000 or more depending on the size of the store, the size of your inventory, and the size of your workforce.
Opening a lush store does not require any specialized skills or certifications. It is a business that can be started by any aspiring entrepreneur with minimal capital as long as they have the general knowledge of what a lush store entails, and of course, the drive to operate the business.
Lush is a cosmetics retailer known for its wide range of handmade, ethically sourced, and environmentally friendly personal care products.
The peculiarity of their products is that they are made of only vegetarian and vegan ingredients and that they are particularly colored. Lush stores offer a variety of items, including bath and shower products, skincare, hair care, fragrances, and cosmetics.
Lush stores are owned and operated by the company “Lush Fresh Handmade Cosmetics,” commonly referred to as Lush. The company was founded in the United Kingdom in 1995 by Mark Constantine and Liz Weir. The company is known for its commitment to using natural ingredients, minimal packaging, and ethical sourcing practices.
Opening a Lush store would typically involve a franchise agreement or partnership with Lush Fresh Handmade Cosmetics, the company that owns the Lush brand.
However, if you want to open a lush store, there are certain factors that can influence the overall cost of opening the store. With that in mind, one can only estimate or give a range of how much it will cost to open a lush store.
Factors That Will Influence the Cost of Opening a Lush Store
The Type of the Lush Store
A major factor that will determine the overall cost of opening a lush store is the type of lush store the owner of the business wants to open.
There are brick-and-mortar lush stores and online lush stores. Normally, if you just want to start a lush store that is running from a brick-and-mortar facility, you are going to spend more when compared to a lush store that is strictly online (operating from an eCommerce store).
The Choice of Location
Another major factor that will determine the cost of opening a lush store is your location. In business, location is a key part of what determines the success of the business.
For example, renting or leasing a store facility in a location that is off the city center or off a major road will be less expensive when compared to renting or leasing a lush store facility in a highbrow area; a location along a major road with high vehicular and human traffic.
The Required Licenses and Permits
In the United States, you cannot open a lush store without first applying for the mandatory license and permits. Of course, you would need an operational license, building license, zonal permit, signage permit, and reseller permit amongst others that may be unique to different cities and states.
You also need to consider council and federal requirements, so do your homework long before you set a date for the grand opening of your lush store.
The Type of Facility
The type of facility you want to operate your lush store from is also a major factor that will determine the overall cost of opening the store. As regards the facility, you have the option of renting, leasing or constructing your own store facility from scratch.
With renting and leasing a shop facility, you might just have to spend extra to modify the shop to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. You can also construct your lush store facility from scratch.
It means that you will buy the land or property, and construct and equip the lush store facility to fit into the ideal picture you have in mind. With that, you will agree that you are going to spend way more when compared to people who rent or lease a lush store facility in a low-traffic area.
The Size of the Lush Store
Another very important factor that will determine the cost of opening a lush store is the size of the lush store. Of course, the larger the lush store, the larger the budget to get it up and running. Aside from the cost of furnishing and equipping the store facility, it will also cost you more to hire employees.
The Cost of Hiring and Paying a Business Consultant and Attorney
As expected, if you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney.
A business consultant will help with drafting a workable business plan document for the lush store, a marketing plan and strategy, a comprehensive SWOT analysis, and other advisory services.
An attorney will help you with registering the business, drafting contract documents (especially for your suppliers and creditors), and offering you all the legal expertise that will help you start the business on the right foundation.
Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening your lush store.
The Cost for Branding, Promotion, and Marketing of the Lush Store
The cost of branding, promoting, and marketing the lush store is yet another key factor that will determine the overall cost of opening a lush store. Trust me, if you need to win a fair share of the available market in your city, and the online market, then you must be willing to pay for effective branding, promotion, and marketing of your new lush store.
As a matter of fact, it is not cheap to come across an expert in branding, promotion, and marketing who will help you compete with brands that are already determining the market direction of the lush stores industry in your city. So, if you add the cost of paying a branding and marketing expert, it will surely increase the cost of opening your lush store.
The Cost of Furnishing and Equipping the Lush Store
Another factor that will determine the cost of opening a lush store is, of course, the cost of furnishing and equipping the store facility.
As expected, before you can open a lush store, you should budget for items such as storage hardware (bins, racks, shelves, cases), shopping baskets and trolleys, counter area equipment, Flat Screen TVs, sound system, Satellite dish and decoder, furniture (table, and stools), telephones, filing cabinets,
Store equipment (cash register, POS machines, security, CCTV, ventilation, signage), and security and fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening a lush store.
The Cost of Insurance
The cost of paying for insurance policy coverage is yet another important factor that will determine the overall cost of opening a lush store. Interestingly, in the United States, you cannot operate a business without having some of the basic insurance policy cover that is required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your lush store.
The Cost of Registering the Business
The cost of registering the lush store is yet another cost that will influence the overall cost of opening a lush store. Although the cost of registering a business and obtaining all the needed documents is affordable, it will no doubt add to the overall cost of opening a lush store.
Source of Your Supplies
Another major factor that will determine the cost of opening a lush store is the source of your supplies. If you get your supplies from a cheaper source, then it will bring down the cost of starting the business.
If you are able to build a robust business relationship with some of the leading lush products wholesalers, you will be able to get bath bombs, shower gels and shower jellies, cleansers, shampoo bars, masks of magnanimity, lip scrubs, handmade soaps, dream cream,
Ro’s Argan body conditioner, perfumes and fragrances, hair treatments, and makeup products, including lipsticks, eyeliners, and foundation, often with natural and cruelty-free ingredients. As a matter of fact, you can even get your supplies on credit.
Cost of Recruiting and Training Your Staff
The fact that you are opening your lush store as a new business means that you are expected to recruit and train your staff. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire expert trainers, and that will add to the overall cost of opening a lush store.
The Cost for the Purchase and Customizing of Uniforms
Another factor that will determine the overall cost of opening a lush store is the cost of the purchase and customizing of uniforms. As expected, your staff need different uniforms, and these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a lush store.
The Cost of the Grand Opening of the Lush Store
Lastly, another factor that can influence the cost of opening your lush store is the cost of launching the business. Trust me, if you are able to successfully organize a launch party for your lush store, you will have successfully announced your presence in the community, and people in your community can easily visit your store to purchase soaps, shampoos, lotions, and other body and face products.
These are some of the factors that will determine the overall cost of opening a lush store. Please note that there are other factors not listed above that will surely influence the overall cost of opening your lush store.
Which is why we will advise that you work with the franchisor (The Lush Company) to look at other criteria you will need to meet, and the cost implications.