Cost Analysis

Your prospective budget will need to take into account; professional fees, surveyor, solicitor, shop fittings, repairs, modifications, staff recruitment, additional labour costs, etc 

Operating costs are either fixed or variable, examples of these can include; rent, business rates, service charge utilities, broadband, PPL/PRS licence, buildings insurance, staff wages, rolling maintenance, SLA.s, refuge collection, Epos licences, staff travel, admin, driver associated Costs, etc. 

Depreciation over the life of the lease must be taken into account for the initial shop fit as Capex, which would require repayment back to the parent charity. 

Dilapidation's represent 'exit costs' for a tenant/charity at the end of their lease. These costs are typically attributed to putting the property back into its original, pre-let state, i.e. repairs or reinstating any cosmetic alterations. 

Taking into account all the above this analysis projects a return based on Investment (ROI) which is a performance measure used to evaluate the efficiency of an investment. The result is expressed as a percentage or a ratio, bench-marked against the industry average for a standard charity shop or Hospice shop. 

This process would be undertaken to justify the project supported by a business case to express the validity of the venture.