Tommy Dobczyk shows how to estimate retail store startup costs: roughly $125,000 for inventory and buildout, $445,000 total capital needed, and $3,200 monthly rent to break even. A $500,000 Opportunity Zone fund covers it, with payback in about 32 months.
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What I did was I went back through and I said, just make assumptions. Like I'm wanting to get details quick on this because we're looking at wanting to, wanting to get going on it. Created the, what I'm telling you is I created the assumptions of all the rest of it. You can see for the inventory and all that, it broke it down and gave you a really good rough estimate of about $125,000 for everything inside the store to operate the store. We tagged that into the full capital stack. Now we're at $445,000, $445,000, $446,000. This is why I said if we did an Opportunity Zone fund for $500,000, this falls into that, covers everything, and it legally ties into being able to do even operating costs to an extent. So rolling through the rest of this right here, we're able to see that the assumptions come out to this. If we have a loan with these guys on the construction side at this, at these terms right here, we need to have a break-even from the store. We need to get from the store $3,200 a month in rent. Like, the store can make whatever it wants, but the store has to rent from us He's worth keeping in the dirt at least 32 months.