Opening a small retail store or boutique can be a viable way for an entrepreneur with an eye for a good deal to make a living. Small stores must compete with malls, department stores, online ordering, and other boutiques, all potentially vying for the same market, consisting of local residents, tourists, or both. Brick and mortar retail store owners can compete in the space by selecting products – and presenting those products – in such a way that draw in customers and away from other shopping options. Product selection could include unique items that are difficult to find elsewhere in your competitive area. Product selection could also include cheaper substitutes for competitor products. The type of store envisioned in this scenario sells basic, low-cost consumer and household goods, potentially targeting tourists as well.

As with all businesses in Baltimore, there are permits and licenses required, including building permit, use and occupancy permit, and inspections by the fire marshal and building inspector. These permits must be acquired before opening for business, and then they must be maintained while doing business to pass multiple inspections. Preparing the store for business such that it meets regulated standards will be the biggest start-up costs, and may not be factored as monthly operational costs.  Please visit the Department of Labor, Licensing and Regulation at http://www.dllr.state.md.us/ for requirements for your business.

The tables below depict the common issues and costs associated with operating a retail store.

Political		Labor laws – ensuring that staff is eligible to work in the US. Maintaining a safe work environment and compensating legally
Economic		Location of brick and mortar location that is accessible, especially for lunch
		Commodity prices
		Disposable income; tourism
Social		Competition from both large retailers; fashion
		Competition from other boutique-style retailers; fashion
Technological		Record keeping, including staff scheduling and inventory management – software and hardware
		Handling money and processing payments
		Advertising online and using social media
Environmental		Waste disposal
		Sourcing, dependent on products (imports, lead, etc.)
Legal		Zoning restrictions
		Building permit
		Use & Occupancy permit, including inspection by fire marshal, building inspector
		Water Discharge Permit (sewage)
Critical Success Factors		Brick and mortar location that is accessible to target market
		Gaining and maintaining all appropriate licenses and permits
Major Activities		Associated Costs		Cost Driver
Selling goods		Wholesale prices for products		Number of units of products ordered
Ordering and managing inventory		Staff time		Volume of products ordered; number of staff members per hour
	Projected Expenses
	Employee Costs including benefits		Year One Cost per month
	Owner		$          3,500
	Book Keeper – Outsourced		$              800
	Legal – Outsourced		$              800
	Tech Support – Outsourced		$              250
	Sales Associates/Register		$          8,000
	Wages Subtotal		$        13,350
	Taxes, Fees		$          2,003
	Subtotal		$        15,353
	Supplies/Stock
	Product stock		$          3,000
	Cleaning Supplies		$                50
	Subtotal		$          3,050
	Office/Facility
	Facility Expense (rent)		$          1,700
	Electric		$              300
	Water		$              125
	Internet/Telephone		$              100
	Office supplies		$                50
	Property Insurance		$              208
	Maintenance		$              500
	Computers/Hardware		$              100
	Subtotal		$          3,083
	Marketing Costs
	Web site hosting and advertising		$              200
	Web site updates		$              100
	Business Cards, Pens, Swag		$                50
	Subtotal		$              350
	Floor
	Displays/Decorations		$              3,300
	Subtotal		$          3,300
	Projected Monthly Costs		$        25,136