The real cost of opening a shop in Zimbabwe

Before you open

• Deposit, often several months of rent
• First month's rent in advance
• Business registration and any licences your trade needs
• Local authority requirements for the premises
• Shelving, counters, chairs and tables
• Signage inside and outside
• Electricity connection or deposit
• Painting, plumbing or repairs the landlord will not cover
• Opening stock

Every month after that

• Rent
• Electricity and water
• Security
• Internet and airtime
• Wages, if anyone helps you
• Restocking
• Marketing, so people know you are there

The question to answer honestly

Add the before-you-open list to three months of the monthly list. That is roughly how much cash you need in hand before your first customer walks through the door, because very few shops cover their costs in month one.

If that number is far beyond what you have, that is useful information, not failure. It means the first version of your business should be smaller.

A smaller first version

You can start serving the same customers without the fixed costs: sell from home, travel to clients, share a space with another trader, or take orders online and deliver.

A website costs nothing to design with MatSiteBuilder, then $15 a year for your domain and $10 a month for hosting. That is a running cost you can carry while you find out what sells.

Common mistakes

• Counting rent only, and treating fittings and stock as details
• Forgetting the deposit is money you cannot spend on the business
• Leaving nothing for the slow first months
• Spending the marketing budget on signage and hoping foot traffic does the rest