Analysts predict the global vape market to have a value of over $182 billion by 2030. With more and more people switching from traditional cigarettes each year, now’s a great time to start a new company.
If you want to start a new business centered around vaping, the process requires a fairly standard business plan. But there are a few subtle business strategy changes you should know to help your vape shop thrive.
The following guide will explore opening a vape shop and how to successfully start a company.
Make Your Business Plan
You must take your time writing a thorough business plan before you can open your vape shop. A business plan covers the goals for your vape shop and how you want to reach them.
The plan will help you evaluate your vape shop’s purpose and act as a guide to help you stay on track after opening. Include information about your vape company and brand, your competitors, marketing strategies, and your financial estimates.
You don’t need any previous education or experience writing a business plan. A quick search online can lead you to many helpful templates for standard business plans.
Study Local Regulations
Vape shops are unique from a standard retail business because they need specific licenses and legal requirements to open. Most laws regarding tobacco sales and use also cross over to vape and e-cigarettes.
Keep in mind that every state and even some cities within states have their own special set of regulations. Always check with your local authorities to comprehend their laws so that you can get the proper licenses for your vape shop.
Adding regulations to your business plan can help you avoid serious legal trouble later on.
Select a Location
When looking for a location perfect for your vape shop, make sure it gets a lot of traffic and visibility. It should also have enough parking and an appealing storefront.
There are a lot of vape shops popping up and the competition is steep in some areas. So, choosing a location that stands out from others or doesn’t have a lot of competition is key.
Remember that gas stations and convenience stores that carry vape products are also competing. Take time to analyze your competition and study commercial real estate in your area closely.
Budget Your Startup Expenses
You must have a strong understanding of the startup costs it takes to open your vape shop. The cost to open a vape shop varies greatly, but you should account for the basics at the very least.
First, calculate how much it might cost to rent a storefront for your shop. Then, add up the costs of licensing fees and permits for your vape shop. You’ll also need to pay for business insurance before you can open your doors.
Consider payroll for any employees you hire and tax costs related to staffing. You’ll also need to set money aside for your shop’s initial inventory. Don’t forget the cost of equipment like shelving, counters, and a point-of-sale system.
You might also set money aside for a quality website to help customers learn more about your vape shop and products. You can visit IGET Vape for a good example of an informative website.
Business Credit Card and Account
You must separate your business finances and personal finances, especially when running a regulated vape shop. Opening a business bank account for your vape business helps manage money coming in and going out.
Business credit cards also help with organization and also act as a funding method. You’ll also build your vape business’s credit score the more you use it and pay it off on time.
Most business credit card providers do a hard credit check on applicants and ask about your company’s financials. It doesn’t matter if you’re just starting and don’t have annual revenue, they’ll simply look at your personal credit history and debt.
Choose Suppliers and Order Inventory
It’s vital that you select a respected, trustworthy supplier that has excellent products for your customers’ needs. If you select an unreliable supplier, they might run out of your top-selling products, costing you sales and irritating your customers.
Next, you need to order inventory and try to select products that have mass appeal. Conduct some market research and ask anyone that vapes what products they tend to buy and what they wish other shops offered.
Have products for beginners and consider selling at least one type of rechargeable e-cigarette or a starter kit for e-cigarettes. You’ll also want to sell several customizable vape kits for veteran vapers as well.
Always stock a good selection of vape accessories such as batteries, mods, liquids, and juices for your customers to choose from.
Determine how many employees you need to hire for your shop and start posting job listings online or locally. Make sure the staff you hire understands the customer service practices of your vape shop.
Employees must have the ability to give vaping advice and product suggestions that meet each customer’s specific needs. For example, they might help a customer select a starter kit or help a customer figure out how to use a new pen or mod.
They’ll also have to explain the thousands of flavors and nicotine strengths of different juices so that customers stay informed. It might take some training for your employees to get fully up to speed on the world of vaping.
Make sure they know how to greet and interact with customers and how to handle exchanges and returns. Have a plan for your employees to follow if they encounter any angry customers or disputes.
Make sure to put customer service practices in writing and review them with your staff every so often. Listen to feedback from both your staff and customers and make changes as needed.
Starting Your New Company
Now you know the basics of starting a new company and tips specifically for a vape shop. Don’t rush the process or skip steps because you want to prepare as much as possible and help your vape shop thrive right from the beginning.
Check out our blog’s business and finance section for more useful tips to help your vape shop stay open for years to come!