The vaping industry is predicted to reach an astounding $43 billion dollars within the next 5 years. The vape demand is growing for young entrepreneurs.
The number of vapers rose from 7 million in 2011 to 23 million in 2016. The vape demand is growing for young entrepreneurs. This is the reason why you need to start the vape business immediately!
As millions of people move from regular cigarettes to e-cigarettes, the market grows, making it a viable business idea. Are you wondering how to start a vape shop and if you should do it? See below a few insights.
Starting a Vape Shop is Quite Affordable
There are two ways to go about joining vape shop entrepreneurs; franchise or startup. Joining a franchise might require as much as $100k to open shop while starting your shop from scratch can take as little as $25,000.
Going the franchise way is always a good idea considering the parent company has already established its brand; therefore, you need not do much to build a reputation. Unfortunately, as a franchise, you will have to follow specific regulations and trends that the parent company sets.
Starting your shop from scratch is quite affordable; however, you will need to build your shop’s brand from bottom-up. It will take a lot of effort, but it’s not such a bad idea since you will mold it your way. As long as you are positive about your venture, it will work out as planned.
Legal Requirements are Not as Complicated
Yes, sometimes legal requirements minimize our freedom to go all out, but since they are public, it becomes quite easy to access them and even easier to adhere to them.
Some legal requirements for vape shops include;
- Getting licenses and permits
- Registering for taxes
- Opening a bank account
- Having an accounting system or an accountant to achieve this
- Acquiring business insurance
Depending on your state, vape shop rules may vary, it would be wise to consult your lawyer on legal issues that may come up from starting one so that you can avoid them.
It’s Just like Any Other Startup
Just like any business startup, vape shops require the necessary foundation. Before you purchase anything, start by getting a favorable location. As mentioned, be keen on state laws that might forbid vape shop locations.
Some commonly banned vape shop locations include;
- Near schools
- Near churches
- Next to parks
Aside from restricted areas, go for a location that is in a busy street. Where you position your shop could help or hurt your vaping business. While this is not 100% accurate, it’s not worth the risk.
However, if you miss an excellent busy location, you can get a functional space and put more energy, and maybe money, into marketing your shop. After getting the right place, purchase inventory; electronic e-cigarettes, accessories, parts, several e-liquid bottles, and flavors.
Other things you will have to purchase;
- POS system
- An iPad or iPhone
- Liability insurance, among others
Then comes employment. A tip for hiring staff for your shop: get people who enjoy the industry. These are the people who will move your sales with just their passion for vaping.
However, don’t assume these new employees know-it-all. Make an effort to show them how you’d like things done and tell them how you would like them to handle the shop and its customers so that they can all follow similar regulations.
Vape Demand is high
According to Earnest Young’s report on e-cigarettes, most people vape because it’s less harmful to the body as compared to other smoking methods. Many smokers start vaping to curb their daily smoking habits. As much as there isn’t any proof that vaping helps smokers stop smoking regular cigarettes, it sure is a good alternative for them.
It’s Quite Easy to Diversify
There are many options for starting a vape shop. This means that you cannot limit yourself. However, the more ideas you incorporate, the more money you will need to be efficient to your clients.
You can opt to give space to people who would like to vape in your shop and retail e-cigarettes. When retailing e-cigarettes, it is essential to have a variety. E-cigarettes come in different sizes and shapes, brands and flavors.
Once you stock all the various types – which will cost you – then you have high chances of scaling. Singulating type, size, or flavor means you’ll send away clients with different preferences. One of the best vape sticks is the SMOK Stick V8 which you can include in your inventory.
If you have a good hand when it comes to mixing flavors, you can also choose to flavor e-liquids and sell as your handmade brand. This will also bring in more money to your shop since your flavors are homemade.
I wouldn’t distribute my flavors to other vape shops in my area; however, you can also opt for that and become a full blown flavor brand in town! If you choose to keep it indoors, then more customers will come to you for that one unique factor that others don’t have!
The Key to Selling is Customer Service
To build your vape shop’s reputation, start within your shop. How do you handle customers? Think about three things;
No matter how good your products are, it won’t matter if your customer service sucks. People like being treated as if they are valued. By this, we don’t just mean smiling while packing their e-cigarettes!
You have to engage in conversations, get to know what they like, have them try something new, tell a story, laugh to their jokes, and be more open-minded. Customers always come back to the funny guy at the vape shop. Also, when you make connections with customers, they feel at home, and everyone comes back home!
Creating relationships in the e-cigarette business extends beyond customers to even distributors. Vendors like working with friendly people. They may also put in a good word for you in the streets and bring in customers or be customers as well!
You can Use Social Media Too!
Yes, vaping is a business like any other and you can maximize on social media to create business awareness. This is a move you should make for your shop as early as you launch your business.
Social media is currently the easiest way to get people to be obsessed with what you are selling. As you walk into social media, keep it professional but fun. Showcase your variety of e-cigarettes, make videos, and post photos with your clients (with their consent).
You can also ask your clients to post photos of their experience at your shop on their social media pages and tag you. This is better than word-of-mouth. Everyone wants to be where everyone else is going and having fun; let your shop be that place.
As you go online with your vaping products, kindly remember FDA regulations that apply to your line of work. Place warning and disclaimers around your page info to stay legally safe.
You can also have a Website and E-commerce
The greatest competitors of vape brick and mortar shops are online retailers. Online retailers get to sell their vaping products at cheaper costs making it hard for shops to make sales.
Don’t worry; you can get a slice of the pie too by designing your website with an e-commerce platform. Diversity always does well in business! Going online means your loyal clients can still purchase from their favorite shop even when they travel outside the state.
Having a website makes you more efficient to your clientele and gives you another avenue of making sales. With an e-commerce site, you can showcase all your products with their prices and specifications. This will help clients choose the exact product they want.
If you choose to have an e-commerce site for your vaping products, have a walk-in popup that only allows adults to access the site. In case you have some extra cash, create attractive banners, and advertise online.
Another great way to promote your local shop is to register it under review platforms like Google My Business and Yelp.
It’s Easy to Spot Counterfeit Distributors
Each industry has its cons, the most common one being selling of counterfeit products; vaping is not an exception. Now, one thing you need to know about quality products is that they mold an excellent reputation for your shop. They might be a bit costly, but they are legit so you won’t have to worry about someone getting ill using your vaping products.
Spot the cons in the industry and avoid them! In case you opt low-quality products, make sure you let your clients know. Let them be the ones to say, “It’s okay; you can sell me that.” Else, you will close shop in a heartbeat!
If money is the problem, give it time, don’t start until you’ve enough to supply legitimate products. It’s never worth ruining your business’ reputation, and with an online presence, word will travel quite fast.
Take Advantage of Vape Demand and Start a Vape Shop Today!
Growing a vape shop from scratch might take some time, determination, and hard work. Fortunately, it’s not as complicated as growing most small business startups. As a young entrepreneur, you can’t miss out the chance to quench vape demand by starting your shop.
Join this multi-billion dollar business today and make good money! Check out more posts to learn various ways of self-improvement and to build a better life.