Step 1: How to Budget for a Retail Shop Fitout
Let’s start with the number one question most shop owners don’t ask soon enough: “What is this actually going to cost me?”
Before you sign a lease, hire a designer or speak to a shopfitter, you need a clear budget. Not just a ballpark guess — a working document that sets the limits for what you can afford, what you’ll say yes to, and where you might need to compromise.
This step walks you through the three-part process I use with every client:
Set your total project budget – what’s your overall cap?
Break it into fitout vs operating costs – two separate budgets, both essential
Sense-check your figures – are they realistic based on tenancy type and location?
You don’t need exact quotes yet — but you do need to understand the size and shape of what you’re committing to. This step gives you the clarity to move forward with confidence, and avoid getting caught out later.
By the end of this step, you’ll have:
– A clearer picture of what your total project budget might need to cover
– A better understanding of how to break your budget into fitout and operational costs
– Enough insight to start asking smarter questions — and avoid costly surprises later on.
Start here:
There’s no one-size-fits-all number — but there is a reliable framework. And you will actually need to work on two budgets:
Your fitout costs — everything needed to build or transform the space. This includes things you might not have thought about yet – see the next step.
Your operational costs — your set-up stock, branding, insurance, opening staff, etc. This is everything you will need to pay for on a daily, weekly and monthly basis when your shop is open.
Don’t blur the line between your fitout budget and your operational budget.
It’s easy to dip into your running costs to cover build extras — but that’s how people end up with a great-looking shop and no cash to open it.
Getting your fitout budget right means you won’t have to rob your opening funds to finish the build.
→ Tip: Fitouts in Australia can range from $1,500 to well over $5,000 per square metre, depending on size, location, and level of finish.
Here’s a breakdown of what should definitely be on your radar.
Design + documentation
Compliance costs (certifications, approvals)
Project management or consultant fees (if any)
Services (electrical, plumbing, mechanical)
Fixtures and fittings (shelving, counters, POS)
Signage (external + internal)
Contingency (minimum 10%)
Want to read more — and a grab a free checklist?
Read this article: Smart Shop Fitout Budgeting: Plan, Prioritise & Open Without the Stress – Setting Up Your Shop ➜
After working with hundreds of shop owners, I can tell you — these are the budgeting mistakes that crop up again and again. And they’re the ones that tend to cost the most down the track.
- Budgeting only for the fitout — not the opening
Using old or irrelevant square metre rates
Not understanding what’s included in a shopfitter quote
Forgetting to add professional fees or contingency
Assuming the landlord will cover more than they actually will
💬 Karyn says: “Budgeting isn’t about picking the cheapest builder — it’s about knowing what’s mandatory, what’s optional, and what can bite you later.”
Want to dig a bit deeper into costs and common traps?
Still unsure if your budget’s on track?
The free Budget Buster Checklist walks you through some of the most common hidden costs and the things first-time shop owners often forget.