Despite the fact that smoking is injurious to health, the tobacco industry continues to flourish. In fact, the cigar business is a multi-billion dollar business. Due to this reason, many have made a livelihood out of it and it continues to be one of most profitable businesses out there.
If you want to start your own cigar business, then there are a few things you should do before you get started.
No matter if you are starting a cigar store or trading online via The Brit Method, the very first step is to know about how the specific industry works. It is also important to know about your product and the fact that it can cause health issues in people. It helps to attend seminars and workshops related to your business. You will also need to educate yourself about the various laws governing the sale of tobacco and its regulations.
The next step would be to work out the costs involved. With any start-up you will have the regular start-up costs such as insurance fees, licensing fees, rental costs etc. After all this comes the actual cost of your stock and the necessary equipment. A humidor is absolutely necessary if you want to run a cigar business. A humidor keeps the cigars under the right amount of humidity during storage.
You will need to do your research on the types of cigars and there is quite some jargon that you should familiarize yourself with. Then all you will need is a reliable supplier who will make timely distribution of high quality products. You should work out a deal so that you get the products at competitive rates and increase your profit.
- The store
Everything finally boils down to your cigar store. You will have to decide if you want a brick and mortar store or you would rather sell online. This is a very important decision to make and it will be difficult to start both at the same time as there are costs involved. A better option would be to consider tie-ups with related businesses which will bring down your cost. For e.g. you can tie-up with a liquor store where more people are likely to come looking for cigars.
This one requires you to co-ordinate with a lawyer. Procedures such as getting permits and licenses are very important in a cigar business and you are better off leaving it to the experts. You don’t want to be dealing with confusing paperwork or miss out on important documents needed for your business.
- Buying equipment
Spend your time to choose and buy the right kind of equipment to store and display your products. You should also have a section for cigar accessories like cigar cutters, lighters etc. It is also wise to think about having related items in the store like, beer and beverages which will only increase your sales. So you will have to buy the necessary equipment for these products too.
Have a sale plan and a target goal in place as this will help you offset the loans incurred before you can actually start making a profit. Also think of other ways to sell your product. For e.g. you can have stalls in malls and other such places; vending machines are another great idea too. Retail business has endless options and you should not be afraid to explore them if you want to grow in your business.