Want To Open Your Own Vape Shop? Here’s Some Things You Should Know
With vaping becoming extremely popular these days, the entrepreneur may be thinking about opening up a vape shop. They’re popping up everywhere, and there hasn’t been any closing, or not very many anyway. So maybe the timing is right to get in on this new dot com type of hype.
Or is the market saturated and you’ve missed that window of opportunity? Expert analyst that have tracked the vapor industry are estimating that the vaping industry could see an explosion over the next 3 years of double or more! So, no, it isn’t too late to jump on the vape game, but you want to do it right.
Go Franchise or Go Sole Owner
When it comes to opening a vape shop – you could take one of two roads. A franchise is always profitable and there are many perks to being part of the franchise, but it does take a sufficient amount of financing.
Opening an independent vape tore is another option and you will be your own boss, define your own brand, create your own reputation. You have total control over your product offerings and pricing, and down the road with immense success in place, you could establish your own franchise.
Regulations, Regulations, Regulations
Any business is going to have regulations to abide by, but when it comes to vaping, the local regulations are easy compared to the Federal and State regulations you’ll endure. You need to know and understand these regulations and rules before you do anything else toward opening a vape shop.
In addition to regulations stating where you can open a vape shop, such as a certain distance away from parks, schools, etc., there are the taxes you’ll have to pay too. The tax level in your area will be different from others, and many have found that having a brick-n-mortar vape shop has a big disadvantage compared to an online shop.
Financing Your Vape Shop
Like any business, opening a vape shop will require capital to operate on and financing to get started. Going the independent route isn’t as expensive upfront as buying into a franchise, but again, you won’t have a known name or the support that a franchise offers.
Check with your bank about a subsidized SBA loan if you don’t have cash sitting around. There are companies that will finance a good business plan for those with good credit and there are some that will with not-so-good credit too. The payback rate will vary, and will be on the high end of course.
If you choose to go the independent route, don’t forget your “must haves”:
- Business license
- Tax ID,
- Building and this may require an Occupancy License
- A POS System
Don’t jump into this, franchise or independent, without looking at various financing options. If your financing payments take up all your profits, you’re not going to enjoy this adventure as much. Yes, your incoming cash flow will have to go back into the store with inventory, promotions, etc., but you don’t want the bank or your financing to take what’s left.
Buying direct from manufacturers in China is not going to save you as much money as you may think. And there is much more red tape buying from overseas than you may realize. Go with a middle man – it may not save you money, but it will save you headaches.
Your inventory will need to consist of the following:
- Hardware (mods, tanks, starter kits)
- Replacement coils
- Batteries and Battery chargers
When it comes to the e-juice, you can find better deals going direct than through a middle man. You’ll want to have a wide selection and a lot of it. As you learn which ones are the best sellers and which one you can’t sell, you adjust your inventory restock accordingly.