Print Page   |   Contact Us   |   Sign In   |   Join
TNNA Blog
Blog Home All Blogs
Search all posts for:   

 

View all (160) posts »
 

TNNA Survey Says: Needle Arts Store Startup Costs 2016

Posted By India Hart Wood, Hart Business Research, Wednesday, July 27, 2016

TNNA Survey Says is a biweekly series of articles featuring useful business advice based upon the TNNA State of Specialty NeedleArts 2016 surveys of more than 15,000 fiber artists, retailers, and wholesalers.

TNNA Survey

Needle Arts Store Startup Costs

If you are starting out as a yarn retailer, you will typically need about $40,000 for up-front costs including initial rent deposit, remodeling, furniture and fixtures, initial marketing, information technology, professional services and startup inventory. Yarn retailers reported spending $1,500 to $185,000 on these costs, listed in the table below, with half of startups in the midrange of $20,000 to $60,000. Startup costs were similar for new needlepoint retailers and much lower for counted thread retailers.

On top of these startup costs you will need additional funds for ongoing monthly expenses which include rent, utilities, staff salaries, and insurance; these are dependent upon your local market, so look those up locally. Add ongoing inventory costs, too.

Median cost per yarn retailer startup:

Startup cost category

 

Median

Rent deposit or equivalent

$1,450

Remodeling, furniture, fixtures, decor, lighting

$5,000

Marketing (advertising, graphic design, website and social media design, interior and exterior signage, opening day, etc.)

$1,500

Information technology (computers, software, cloud services, website hosting, phones, support, etc.)

$2,500

Professional fees (accountant, lawyer, consultant, etc.)

$1,000

Startup inventory

$30,000

Survey question was “What were your approximate startup costs in each category? These could be costs incurred prior to opening.” Nearly all yarn startups (about 90% or more) spent money on each category; the one exception is “professional fees,” which 65% of startups spent money on. Each median includes only those spending money in that category. Stores reported startup costs for businesses founded in 2013 or later.

  • Source: TNNA Yarn Retailer Survey
  • Freshness: Yarn Retailers surveyed February 23 to March 28, 2016.
  • Respondents: 82 yarn, 5 needlepoint, and 6 counted thread retailers had recently opened a store and shared their cost data.

More information: http://www.tnna.org/?Survey2016


Tags:  TNNA Survey Says 

Share |
Permalink | Comments (0)
 
Search tnna.org
Sign In


Forgot your password?

Haven't joined yet?

TNNA's Blog
Calendar