Whether you’re expanding into a new premises or looking to make upgrades to your existing business space, undertaking a fit-out should be planned out thoughtfully.
A space that’s appealing to your target audience is worth the investment and effort to add to the overall customer experience with your brand.
A small business loan will help you on your way to complete a shop fit-out. The cost of undertaking a shop fit-out depends primarily on the size of the space, the timeline and intricacy of the job.
Thinking about undertaking a shop fit-out for your business?
Funda can assist with your finance requirements.
What to consider before you start?
Your shop fit-out is one of the most important decision you will make if you are in the retail or hospitality industries – or a B2B company that requires a physical presence for customers (e.g. a showroom).
When deciding on a physical retail space, location and the ease of access for customers should be a major consideration in your decision-making process. Once the space is secured, it’s important to spend time working out how your customers will engage within the space and the best way to present your product. If your budget allows it, hire a retail designer who will ensure you get it right.
Firstly, work out a budget for the fit-out, consider all the physical expenses such as the base building, materials, lighting, flooring, signage, technology, fixtures and most importantly the labor. Don’t forget about your time as well as your staff member’s time that they are working on a fit-out. These staff costs need to be factored into the project. Research and shop around for the best value items and materials. More than anything, ensure your store is both current, engaging and above all else hero your product and brand.
Once you have a budget worked out, you’ll need to plan the timing to allow for the project to be completed. Ideally you want the fit-out to be done in the shortest time possible as this will impact ultimately on your revenue. A quality fit-out will take some time, so it’s crucial that your new store will enjoy as much uninterrupted trade as possible for the foreseeable future. A great option is hiring a project manager to take care of the project operations which allows you to do what you do best, running your business.
What costs do you need to consider?
The costs will depend on the type of shop you run and the space you want to create. The basic expenses you will need to examine include installing flooring, having the walls painted, lighting, display shelving and signage.
Some costs you need to consider, may include:
- Air conditioning
- Cold rooms
- Display cabinet
- Wash basins
- Sales counters
- Clothes rails
- Electronic point of sale technology
- Fixtures & joinery
Cost of a fit-out
Most importantly is the cost of the contractors, with labor for fit-out renovations generally costing anywhere between $50 to $80 per hour. As a general guide prices can range from around $250 per square metre for a basic job, to a complex high-end project up to $2,000 per square metre.
Tips to keep costs down
Get multiple quotes
Shop around and compare quotes from multiple companies.
Design of fit-out
Consider fixtures that be easily adaptable to change up the layout.
Get your hands dirty
Cut costs by doing jobs you can do yourself.
Reduce structure changes
Avoid any larger structural changes where you can.
Sell or revamp
Selling or revamping furniture & fixtures is way to keep costs down.
Stick to the plan
Keep to the plan, any last-minute changes will affect the budget.
Many businesses are unaware that they are entitled to claim deductions in the form of depreciation for many of the assets installed during the fit-out of a commercial property.
Commercial tenants are able to claim depreciation for any fit out to a property once their lease starts. Some examples of common business assets installed during a fit-out include carpets, air conditioning units, firefighting equipment, desks, blinds, shelving and securing systems.
To ensure that depreciation deductions are maximized, we recommend that both parties, owners of the property and tenants, contact a Quantity Surveyor to arrange a tax deprecation schedule. The deductions help improve the cash flow and reduce your taxable income. The ATO can help you further with claiming depreciation for your shop fit-out,
We’re here to help
Funda is proud to offer a faster, fairer set of small business finance solutions than most other non-bank lenders. Our small business loans carry an interest rate of 2% per month on the outstanding balance. That is half of what most other non-bank lenders charge.