Editor’s Note: This content has been contributed by Vaping Daily.
Vaping is one of the fastest developing industries in the world. It’s a good tactic for you as an entrepreneur to focus your efforts where the profit may be more lavish. The global vaporizer market is expected to be worth $61.4 billion in 2025, growing at a rate of 20% by then.
But since the opportunities for business ventures are promising, more and more manufacturers, retailers, and other groups spring up to service it. Be ready to face stiff competition.
To become a successful businessman, you must have a plan and a vision. And you must know where exactly you want to go. Here’re 5 helpful tips:
1. Come up With an Idea.
There are several opportunities for entrepreneurs starting out in the e-cigarette industry:
- A vape shop. That’s an option for those who have the capital for renting (or building) your own store.
- An online vape shop. That’s a cheaper option. And since e-commerce is booming, you have favorable conditions for developing your start-up.
- Vape products, components or accessories as an additional offer. If you own a shop that sells things like glass pipes and bowls for the consumption of tobacco or cannabis, why not to expand the list of goods and add various vape products?
- A line of e-liquids. This business idea is for those who are good at mixing things and experimenting with flavors. You’ll still need a platform to sell it.
2. Understand Your Target Market
Your customers will fall into 2 groups:
1) Tobacco consumers who want to quit and look for alternative methods. You can reckon them to buy Vapingdaily e-cig vaporizer by mentioning the advantages of switching to vaping, including health and financial ones.
2) Current vapers that usually know what they want or look for some new vaping experience. To win this type of customers, bring a variety of quality products, offer unique e cigs for true enthusiasts, and make sure the price is also smart.
Additional tip: Choose the shop location that is close to tourists attractions. Many vape entrepreneurs ignore this, but travelers can be a consistent flow of customers.
3. Prepare for the Costs.
Like any other start-up, launching a vape shop means investing a lot of money. Industry experts estimate a budget of $25,000 for a small shop and $50,000 for a large one monthly. The budget includes the following points:
- Rent – $2,500-$5,000 per month, depending on your location
- Inventory (electronic cigarettes, parts, and accessories) – $7,500
- 10 bottles of e-liquid 15ml each in 20 flavors – $15,000
- iPad and point of sale software – $2,500
- Electric bill – $150-250 per month
- Liability insurance – $150.
If you are going to join the franchise system, the initial franchise fee will cost you between $10,000 and $20,000.
Know that it will be tough to get funding. Banks put you in the same high-risk category for loans as the adult entertainment industry. You can try to get a grant from Ventury Capital that has funded a few vape businesses. Fundera helps small businesses find funding but does not originate the loans. It connects people to options from its network of lenders some of which will fund vape shops (although some don’t.)
4. Legal Vape Business Concerns.
Many states are still figuring out vaping regulation. It’s mandatory to keep up to date with the latest laws. The last thing you want is to do a remarkable job of creating your shop and then realize you overlooked your legal bounds. So, research the specific laws in your area. If you have some questions, hire a legal expert for guidance.
Here’s a list of the things you should consider:
- forming a legal entity
- registering for taxes
- opening a business bank account
- setting up an accounting system
- getting all necessary licenses and permits
- getting business insurance.
5. Promote and Market Your Vape Shop
Now that you have a solid plan for your vape shop, it’s time to think about how to attract visitors. The best way of advertising is building online buzz for your retail products.
- Create social media pages, such as Facebook, Twitter, Instagram, or Reddit. Be active across these media channels even before opening. That will create hype around a new launch.
- To reach the guests of your city, (travelers we mentioned above), put your shop on Google Maps and Apple Maps. Add it to sites like Yelp.
- Devoted vapers attend different vape events, like contests and exhibitions. That’s your chance to publicize your shop. It’s also a perfect place to build business relationships with the best e-cig distributors.
Additional tip: before introducing your company to consumers, you should define your brand vision. It’s something that makes your business unique. Customers must understand what you offer and in what way you differ from others.
Do You Really Want to Be a Vape Entrepreneur?
Prior to starting a business, it’s important to understand what it means to be a vape entrepreneur. Assess your skills and abilities.
That’s what your typical day at a vape shop will be:
- interacting with customers
- networking with other representatives of the industry
- checking inventory
- placing orders
- ensuring workspace is clean
- completing administrative tasks
- managing staff and delegating responsibilities
As an owner of a shop specializing in electronic cigarette technologies, you should keep up with current events in this field. Industry news, tendencies, trends, and fads will help you see new business opportunities.
I suppose you already are a fan of vaping. If not, become it quickly. It’s so much easier to advertise and talk up something that you strongly believe in.
Some people who will visit your shop will be real aficionados, and the ability to help the conversation on is necessary. The vape community enjoys discussing new e-cigs, flavors, or rising vape stars. Every loyal customer that you manage to earn will put you one step closer to having a prosperous vapor shop.
Entrepreneurship is always risky and challenging. But it can also be rewarding. Just make sure your every step is well thought-out.
Good luck with your vaping business venture!