If you want to open a 200-square-meter candy store in the United States, you really need to think carefully about the capital and preparations.
- Store Rental: The United States is a vast country, and the rent varies greatly in different locations. In bustling downtown areas like Manhattan, New York, the rent per square foot can soar above $50. In some quieter and less densely populated small towns in the Midwest, it might be just a little over $5. Let’s calculate based on a moderate figure of $15 per square foot. For a 200-square-meter store, the monthly rent will be $3,000. Generally, the landlord requires one month’s rent as a deposit and three months’ rent in advance, so you have to pay out $12,000 at once. This is really a large sum of money, and you need to prepare it adequately in the early stage.
- Decoration Investment: The decoration can’t be taken lightly, as it is directly related to the appearance of the store and the customer experience. If you just simply paint the walls and lay ordinary flooring, it will probably cost about $80 per square foot. But since we are opening a candy store, we need to create a dreamy and sweet atmosphere. A medium-level decoration standard, about $120 per square foot, is more appropriate. In this way, for 200 square meters, it will cost about $24,000. If you want to create some unique shapes and use high-quality materials, the cost will be even higher.
Equipment Purchase:
- Candy Display Shelves: We need to choose shelves that can display candies in an extremely attractive way. Ordinary shelves don’t look classy. We have to select those with good quality and a strong sense of design. A set will probably cost about $6,000. If you want more exquisite glass display cabinets, you need to add another couple of thousand dollars.
- Cash Register System: Don’t underestimate this cash register device. A good cash register system should have an accurate barcode scanner, a cash drawer for storing money and giving change, a receipt printer, and a stable cash register machine. It will basically cost about $4,000. If you want to connect advanced functions such as online payment and membership management, the cost will increase.
- Refrigeration Equipment: For selling chocolates and other heat-sensitive candies, a refrigerated display cabinet is essential. A common small refrigerated cabinet may cost about $4,000. If the store is large in scale and requires large-sized, multi-door professional refrigeration equipment, it will cost more than $10,000.
- Other Miscellaneous Items: We need to buy an accurate electronic scale for weighing bulk candies and a packaging machine for wrapping candies for customers. The two together will probably cost about $3,000.
- For the equipment purchase, all in all, it will cost about $20,000 conservatively.
- First Batch of Goods Purchase: When the store just opens, we need to fill the shelves with a wide variety of candies to attract customers’ attention. We should purchase classic candies from the United States, characteristic chocolates from Europe, and popular candies from Asia. The quantity of this first batch of goods purchase is quite large. We need to prepare at least $20,000. If we want to focus on high-end and boutique candies, $50,000 is not too much.
- Personnel Expenses: Labor costs in the United States are not cheap. Hiring a full-time employee requires at least $15 per hour. For those with some experience and good service attitude, it may be more than $20 per hour. Suppose we hire 4 employees, they work 8 hours a day, and calculate on a 22-day basis per month. Just the employees’ salary will be $15,840 per month. This doesn’t even include overtime pay on holidays. So, we need to reserve about $20,000 per month for personnel expenses.
- Marketing Expenses: When a new store opens, we need to let everyone know about it. We need to do advertising both online and offline. Online, we can invest in social media advertisements and search engine advertisements. Offline, we can print some flyers and do promotions in the surrounding communities. We also need to carry out some opening promotion activities. All in all, we need to prepare at least $8,000.
- Other Expenses: The water and electricity bills and property management fees will be about $1,500 per month. For tax payment and license processing, it is almost enough to prepare $5,000 in the early stage. Plus, the insurance, which is about $3,000 per year, and on average, it is more than $200 per month. For these miscellaneous expenses, it is more appropriate to prepare $10,000 in the early stage.
In this way, to open this 200-square-meter candy store in the United States, the initial startup capital will be at least $80,000. If you have higher requirements in all aspects, $150,000 is not exaggerated. And after the store starts operating, you need to have $20,000 – $40,000 per month to maintain its operation.
- Early-stage Planning:
- Market Research: We need to figure out what candies the local people like to eat. Do they prefer extremely sweet candies or those with a bit of sourness? Check if there are any competitors around, what products they sell, and what their prices are. For example, near a school, students may like novel and interesting candies. In a commercial area, office workers may prefer exquisite chocolates. Only by understanding these clearly can we find the right positioning for our own store.
- Business Plan Formulation: We need to carefully calculate how the store will operate in the future. What goods to purchase, what products to focus on, whether to take the affordable and people-friendly route or the high-end and luxurious route. How to attract customers, whether it is through discounts and promotions or through high-quality service. Also, in terms of finance, how to spend every penny and when we can get the capital back and make a profit, all these need to have a clear plan.
- Capital Raising: We need to figure out where the money comes from in advance. If we have our own savings, that’s the best. If it’s not enough, we need to consider applying for a bank loan, but we need to pay attention to the interest rate and the repayment period. We can also find some like-minded friends to invest together and pool the money to open the store.
- Store Location Selection: The location is extremely crucial. We need to find a place with convenient transportation. It is best to be near a bus stop or a subway station, which is convenient for customers to come. The pedestrian flow should be large. Areas like shopping malls and commercial streets, where there are a lot of people coming and going, have a high exposure rate. It is also better to have other supporting facilities around, such as restaurants, cinemas, etc. Customers can come to our store to buy candies after shopping or watching a movie.
- License Processing: There are quite a few procedures for opening a store in the United States. A business license must be obtained, which is the basis for legal operation. A food business license also needs to be obtained, after all, we are selling edible products. And a hygiene license, which is related to the health of customers. In addition, a tax registration certificate also needs to be handled well, otherwise, there will be troubles in tax matters. For the processing of these licenses, we need to prepare various materials in advance and follow the procedures step by step.
- Store Construction:
- Design and Decoration: We need to create a unique decoration style for the store. Since it is a candy store, it should be filled with a sweet and dreamy feeling. We can use warm colors like pink and purple and add some cartoon-shaped decorations, such as large candy models and cute animal images. When decorating, we also need to consider the utilization of space. How to arrange the shelves so that customers can walk smoothly and have a good shopping experience.
- Equipment Purchase and Installation: When buying equipment, we need to visit several suppliers and compare the prices and quality. After the equipment is purchased, we need to find professional people to install and debug it to ensure that the cash register can work properly, and the temperature of the refrigerated cabinet can be kept stable. Otherwise, if the equipment malfunctions, it will affect the business.
- Goods Purchase and Display: We need to establish long-term cooperative relationships with reliable suppliers to ensure the quality and stable supply of candies. After the purchased candies are back, we need to display them well. Put the popular and characteristic candies in prominent positions, and arrange them by taste and brand for the convenience of customers to choose. We can also create some creative displays, such as arranging candies into a large heart shape to attract customers to take photos and check in.
- Personnel Recruitment and Training: When recruiting, we need to find those who are enthusiastic, cheerful, and have a sense of service. After the employees are recruited, we need to train them well. Teach them the knowledge of various candies, how to introduce products to customers, how to handle customer complaints, and how to do a good job in cash register work. Only when the quality of employees is high can the store provide good service.
- Opening and Operation:
- Implementation of Marketing Strategy: Advertising and promotion need to be carried out in an all-round way. Online, we can post more beautiful candy pictures and interesting videos on social media to attract the attention of netizens. Offline, we can distribute flyers in the surrounding communities and schools and carry out some small activities. We can also launch a membership system, offer points and discounts to members, and increase customer stickiness.
- Control of Service Quality: When customers enter the store, employees should greet them with a smile and provide enthusiastic service. Patiently answer customers’ questions and help them choose suitable candies. If customers have special needs, such as customizing a candy gift box, we should try our best to meet them. Only when customers are satisfied will they come again and also help us promote the store.
- Inventory Management: Regularly take inventory to see which candies sell quickly and which ones don’t sell well. For those that sell quickly, we need to restock in time. For those that don’t sell well, we need to find a solution, whether it is to carry out promotions or adjust the purchase strategy. Inventory management needs to be meticulous. We should neither run out of stock and disappoint customers nor overstock too much goods and occupy capital.
- Financial Management: Every income and expenditure should be recorded clearly. Regularly conduct financial analysis to see where we have made money and where we have spent a lot of money. According to the financial situation, adjust the business strategy in a timely manner. If a certain category of candies has a high profit margin, we can purchase more goods and expand sales.
