What if you missed out on the chance to open the business of your dreams?
If you've been wanting to open your own vape shop, now may be the best time. The vape industry was already worth over $14 billion in 2018. And that is likely to grow to more than $27 billion by 2027.
In other words, this is a steadily-growing market. Unfortunately, many entrepreneurs don't open their own vape shops because they aren't sure how to do so.
Are you wondering how to open a vape shop? Keep reading to discover everything you need to know!
Craft a Business Plan
If you're wondering how to open a vape shop, you don't have to reinvent the wheel. Many of the steps are similar to opening other businesses. And this includes the first step: writing out a business plan.
One thing your business plan should include is any obstacles to your success. To understand potential obstacles, be sure to research local vaping regulations, including taxes.
The reason owners of vape shops need to understand taxes is simple. How much your vapes are taxed helps inform the prices you set. Otherwise, you won't be able to make much of a profit.
Your business plan needs to list obstacles and how you will overcome them. You should also list all of your competitors and lay down a marketing strategy that is in line with FDA regulations.
After that, you need to include a good business name and choose whether to run the store as a sole proprietor, as an LLC, or as another business entity like S-corp and C-corp.
Take Care of the (Extensive) Paperwork
The next step is quite simple. You need to register your business and take care of other relevant paperwork.
This means getting any special licenses you may need to sell vapes and vaping accessories. And you may have to pay special fees for your various permits and licenses.
Finally, make sure you read and follow the FDA's regulations for tobacco retailers and manufacturers due to the nicotine in most vapes.
How to Open a Vape Shop: Find the Right Location
When it comes to vape shops, location is everything. So before you go any further with your plans, it's important to figure out where your business will be located.
In some cases, you may have to work with what you've got regarding available spaces to lease. In a perfect world, you'll find a high-visibility location that has plenty of parking and potential for foot traffic (for example, the location might be close to a popular restaurant or retail store, causing people to walk from there to your vape shop).
Ideally, the location will have an inviting storefront. Finally, it should be sufficiently far away from other vape shops to spare yourself the competition.
Find the Right Supplier
Soon, you'll need to figure out your overall startup costs. However, since a large part of the costs includes vapes and vaping accessories, you need to first find the right supplier.
Your supplier should be both trustworthy and reliable. And they should have a healthy selection of products. Remember: the more you can buy from your supplier, the more you can sell to your customers.
If you haven't done so already, this is the perfect time to watch videos from vaping enthusiasts and influencers online. This can help you stay on top of what is trending to determine what you should stock. Ultimately, you should have a variety of products, including disposable vapes, vape kits, and vape accessories like batteries, juices, and mods.
Calculate Overall Business Costs
Now, it's time to crunch some numbers. That's because you must determine the overall costs needed to start your vape business.
The cost of your vape supplies is just one part of the puzzle. You also need to account for the cost of leasing business space, buying the right point of sale hardware and software, and things you may want inside like furniture, displays, a refrigerator for your break room, and so on.
Long story short? Don't underestimate these costs. It could easily cost you $10,000 a month to run the shop. You need funding enough to set up your store and last long enough that you are reliably generating income.
Find the Right Business Insurance
When you know your startup costs, you're almost ready to get funding. Before you can do so, though, you need to find the right business insurance.
There are a few different reasons you need this insurance. First and foremost, most lenders require you to have it before they provide funding.
However, this insurance also helps to protect your new store from things like theft, vandalism, fire, and more. Without this protection, you could be one overnight theft away from losing your business.
Good business insurance also provides liability protection. That means when customers get hurt in your store and think it's your fault, you will be financially covered if they decide to sue.
Secure Funding For Your Business
Now that everything else is in place, you can get funding for your vaping store. How you get that funding is largely up to you.
For example, you could seek funding from local banks. However, some local banks may hesitate to fund a new startup. In that case, it is worth your time to research online lenders.
In recent years, crowdfunding has become a popular way to secure funding for many things. A crowdfunding effort helps you secure money from the local community, the online community, and even friends and family who want to help you out.
No matter how you get funded, don't forget to establish a separate bank account and credit card for your store. This will help you keep a firm line between personal banking and financing and commercial banking and financing.
Open Your Very Own Vape Shop Today!
Now you know how to open a vape shop. But do you know who can supply your different vaping and vaping accessory needs?
Here at Pay Less, we specialize in handling your vaping needs at prices you won't believe. To discover how we can help you set up your own vape shop, contact us today!