What You Should Know About Opening a Smoke Shop

Are you thinking about opening a smoke shop in the near future? Although tobacco use has declined in the past few years, smoke shops are still thriving in terms of business and profits. Opening one in a strategic location could prove to be a smart, financially rewarding business venture that leads you on the path to success. Of course, there are some things you need to know before jumping into this unique industry.

What Are Smoke Shops?

If this is your first time hearing about smoke shops, let me explain what they are -- basically, they are shops that sell cigarettes, cigars, chewing tobacco, cigarette rolling papers, smoking pipes and a variety of other smoking-related accessories. While anyone can run down to the nearest gas station to pick up a pack of cigarettes, it's doubtful they will find smoking pipes and other accessories, and this is where smoke shops come into play. These stores are catered specifically for smokers by showcasing a variety of pipes and products.

Choosing a Location For Your Smoke Shop

Just like practically any other retail store, location can either make or break your smoke shop business. Far too many new store owners try to save money on lease and utilities by choosing a location that's far away from main roads and highways. Although you can initially save some money on your lease this way, you'll lose far too much business to make it worth the savings. A better approach is to choose a location for your smoke shop that's around the "smoking" demographic. Don't be afraid to drive around various locations to scout out how many people are smoking. You can look at statistics and number data all you want, but sometimes there's nothing that compares to actually seeing the area for yourself.

Business License

In order to legally run a smoke shop, you'll need to acquire all of the necessary licenses and permits for the respective location. This varies from city to city, so check with the local zoning and planning office to determine what's required. Some areas may only require a traditional business license, while others may require a special permit for selling tobacco products. Running a smoke shop without the necessary licenses and permits places you at risk for fines and/or getting shut down. To prevent this from happening, get all of your ducks in order beforehand to ensure you are legally abiding by all federal and local laws.