You have heard about the vaping industry success especially Juul employees who became millionaires overnight and now you are wondering how you can open your own vape shop. Starting any business big or small can be a challenge, but by following and keeping these next steps in mind, will make things a little easier for you.
Step 1: Write yourself a business plan.
The most important step is doing some research and planning first and then you can later decide on a name and a business structure. Make sure to lay out the obstacles that your business might face as well as how you will overcome them. Do research about the competition in the area and if there is a demand for the products that you can sell. While you are planning make sure that your products will be FDA approved.
After this you can decide on a name and add it to your business plan. Check the secretary of state’s website to make sure your name is available. Choosing a business entity can be easy and your choice will influence your business structure for example:
Sole proprietorship if you are planning to run the business alone or LLC’S, S-Corp, C-Corps these all include limited liability protections and might be the best options for you.
Step 2: Register your business and get the licenses or permits that you need.
The next step is registering your business on the federal state and the local levels to get any licenses that are needed to comply with the law. Depending on your state, country, or city you might need extra permits or licenses to legally open and operate your vape shop. Consult a lawyer to make sure about the requirements in your area.
Just remember the cost of registering a business differs from state to state, you can find this info on the secretary of state webpage of your state.
Step 3: Essential start-up cost provision
Opening a bank account, looking for a secure location, getting a supplier, buying a point of sale as well as accounting software, launching a marketing campaign, or hiring training staff. These are all part of the first steps, and you will have to account for your start-up cost throughout the process. Don’t forget the cost of stocking your inventory.
The following is suggested to stock up your inventory of your vape shop:
– Replacement coils
– Chargers for the vapes
– Vape juice
– Vaporizers: from stationary to portable (desktop, dry herb vaporizers, vape pens, etc.)
Buy your inventory through a wholesaler, you can buy double the stock for half the price, just make sure that it is good quality. Opening a vape shop can cost you anything from $7000 to $10000 minimum on a monthly basis and this is not including your products. You will need at least $50000 to start a vape shop.
Get Business Insurance
The cost of your insurance policy will depend on risk factors like your revenue, the value of your property and equipment, and the value and amount of your products. You can purchase your insurance through insurance companies but there are also insurance brokers with policies specifically that cover your shop, property, and equipment.
Get a business card or business checking account
Make sure you have an account apart from your personal account. Having a business credit card can be important especially when it comes to funding. It is also good to build your business credit score. Expect that the card issuer will make a hard credit inquiry when you apply for a card and that they will ask you about your business financials.
Credit cards can be expensive if you carry a balance month to month. But if you pay your bills in full and choose no-fee business credit card this will be the better option for you.
Banks generally don’t fund start-up because there is no revenue, profitability shows that they will be able to pay their debt. For brand new options like friends and family loans, personal loans for the business and crowdsourcing are also popular. When you have built up your credit score and finances you can turn to the alternative option for a bigger option loan.
Flow to start a vape shop online
You will need to create an e-commerce website that you can sell your products on. There are a host of e-commerce websites and templates that can help you to get the job done. Next you will have to market your online shop and still comply with the laws around marketing your products. Requirements will also need to be installed like an age verification widget.
If you want to open a vape shop, go ahead and do it but be prepared for some challenges like prohibitive excise taxes, FDA strict regulations, online competition also the trouble of securing funding. But with a ton of research, a business plan, expert advice you will overcome these roadblocks.