![]() ![]() How will you sell books through the Internet? How will you process online orders? How will you set up a web presence so that people would find out about the business?įactor in the costs of a domain, web hosting, email, website design, payment provider, etc. Website: In launching a business, think not only about the physical space but also the online storefront. “This also works if you absolutely love putting the right books into the hands of the right readers, and if you gain an immeasurable sense of peace and happiness from building a creative space where people can browse and explore the world of books,” he said. Other than the costs, Johnson told me that all of this only succeeds if you pick the right location with the right community supporting you, have the right people working for you, are an “amazing person yourself with multiple skill sets,” and are willing to read a lot fewer books - because everyone gets busy when there’s lots of work to do. These all add up to roughly $22,000 per month in expenses for a basic bare-bones or average bookstore where the owner does the majority of the labor.Īccording to Johnson, assuming you sell books at a 50% markup (new book markups are generally lower), you would need to sell $44,000 each month to break even, and “you would have to sell a lot more to pay for the $450,000 you have invested to get started.” Don’t forget other monthly expenses, which would most likely be around $2,000.If you were employing a manager to be your right-hand person, the salary would be slightly higher. Payroll would vary based on how much work you do, according to Johnson, but for a work of 120 hours per week at $15 per hour including health insurance, monthly compensation would be $10,000.Rent could range between $9,000 and $13,000. Take note of expenses on a monthly basis.And if you are not, then you should rethink opening a business,” he said. ![]() ![]() Johnson advised that you should start with at least $30,000 in the bank, if not more: “You might have to pay people before you even open to set up the store, unless you are one of those people who can work tirelessly 14 hours a day.Thus, a completely stocked new bookstore would cost $600,000, but used books would cost considerably less, possibly $60,000. Stock would cost about $300,000 if half of your stock is new books.Miscellaneous startup costs might total $10,000.For $50,000, you can have bookcases, counters, and registers, which you can make or buy yourself.An indie bookstore is much more geared towards a community, while commercial bookstores are focused on profit, often stocking a lot of bestsellers and “tried and tested” books on the shelves.Īn average used and new bookstore would likely need about 3500 square feet of space, according to Johnson. One example of an indie bookstore is Powell’s and an example of a commercial chain is Barnes & Noble. Each of these two operates slightly differently, so you need to decide which one you’d like to start. It’s likely impossible to build a bookstore chain from the ground up at the outset unless you happen to have a huge amount of capital. It’s also important to decide whether to open a commercial bookstore or an indie one. Do you have funds in the bank, or are you taking out loans? What’s the business strategy? How about market analysis? Who are the competitors? These all contribute to a chunk of all the costs of opening a bookstore. For financials, think about how you’re going to fund the business. You need a budget (which we’ll break down and explore later), financials, and strategy among other things. How to Get Started with Opening a Bookstoreįirst things first, in order to determine the average cost of opening a bookstore, you must create a sound business plan - or at least identify what makes up a business plan. ![]()
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