How to Start a Smoke Shop

Summary: Cigarette lovers know that it takes mastery of the art of making cigarettes to come up with a nice blend of smoke. Are you interested in starting a smoke shop? Is there enough demand of smoke shop in your neighborhood?

If you are a follower of the art with a business in mind, a cigarette shop is one business you can start. Get some tips from our basic guide on how you can pursue this idea.

Cigarette making is more than just a process of manufacturing. Cigarette makers and cigarette lovers consider it an art. Blending a smoke that will give the smoker a unique experience in smoking takes experience, passion, talent and a keen sense for flavor and aroma. And so, if you want to start a business in tobacco retail, knowledge, taste and appreciation for this product are key factors for the eventual success of your business. To start a smoke store, you must:

• Find regional distributors and manufacturers from whom you can order selections of boxes of cigarettes and smoking accessories like pipes, hookahs, lighters, and ashtrays. If you want to carry famous brands, you’d have to work harder to get into the circle of elite distributors.
• Find a location near your target market or where traffic is busy. If you are having competition, find a niche that your business can serve. It could mean you have to deliver a wider variety of products than your competitors, or better customer service through a more knowledgeable staff.
• Come up with your pricing strategy. Cigarette business is a high markup business. You could put different markups depending on whether the merchandise was sourced direct from manufacturers, distributors or middlemen.
• Learn from your city office all the necessary requirements needed to start a cigar store. Tobacco and liquor businesses are heavily regulated. You’d most likely comply with additional requirements when opening a business. You may or may not be permitted to allow customers to smoke in your store premises. If you would, you’d need some certification from your state human services department. Accomplish all the necessary paperwork in order to operate legally.
• Refurbish your store both to suit the taste of your target clientele and to keep your inventory in good condition. Install implements (humidors) to condition the atmosphere of your shop to protect your stocks. Put decorations and sound system to set the ambiance you want to create for the shop.
• Buy stocks and fixtures for the store such as drawers, cash registers, shelves and display cases.
• Capital. During the cigar boom at the turn of the century, a small shop could cost $500,000 to set up.

Setting a smoke shop will be a challenge. You might not get a profit for months on at the start, until you can expect up to 20% return on investment. But if you are a cigarette lover, the challenges you’ll meet won’t matter much in your desire to create a shop where cigarette aficionados and would-be aficionados can buy cigarettes and congregate to share experiences about a good nice smoke.