Crafting a thorough, detailed business plan is vital no matter what your industry. As you take the necessary steps to launch your e-cigarette store, remember that this document will be your evolving road map and compass that guides your success and can even help you to increase sales and traffic. Incorporate the following elements into your plan for maximum results.
1. Conduct market research.
Accumulate and analyze intelligence about the e-cig industry, your competitors and your target customer market. Consider things like the demand for e-cigarette products in your area, customer preferences and buying behaviors, the strengths, weaknesses, and marketing position of your competitors and any regulations or other restrictions that could affect your sales.
2. Pinpoint your target market.
These will be the customers who will drive your sales, so be sure you understand their income level, age range, gender, and occupations. Take note of whether most are novices to vaping and e-cigs or are long-time users. This will help you to curate your products and services. Also, carefully scope out your competitors to determine any gaps in their offerings that you can fill. You need to find ways to distinguish yourself from your rivals.
3. Decide on a location.
The right location for your store can have a profound, positive impact on your profits. Find a place with a population that has a favorable attitude toward vaping and not so many competitors that the market is saturated. Look for ample parking and access to public transportation for your customers, and choose an option that is attractive and visible. Finally, be sure that you can afford the payments for your rental, and figure them into your overhead expenses. All of these details will be laid out in your written business plan.
4. Develop your marketing strategy.
Your plan will feature a section that focuses on how you are going to spread the word about your shop to increase sales and traffic. This marketing strategy should include details about how you are going to define your target audience, establish your own unique brand identity, use digital marketing techniques and social media, exploit local advertising channels, and analyze the conditions around you to learn the effectiveness of your campaigns. Make your brand even more appealing by harnessing social proof with the help of online influencers, and network with colleagues in your industry to gain additional insights and showcase your products.
5. Figure out costs.
Goals and plans are fine, but your plan also needs to be highly specific about finances. When calculating your start-up expenses, take the following costs into account.
- Inventory.
- Overhead property costs.
- Necessary equipment for your shop.
- Permits and licenses.
- Advertising and marketing expenses.
- Technology, including your point of sale systems and computers.
- Employee-related expenses.
An accurate understanding of these numbers will help you communicate what you need to potential investors and will aid you in setting up an ongoing budget for your more long-term financial requirements.
6. Partner with the right payments provider.
Because so-called conventional financial institutions are reluctant to work with vape and e-cigarette sellers, you will need special payment processing for high-risk businesses. Although this comes at a higher cost and usually requires more time and scrutiny during the application process, it is possible to find a provider that can act as a valuable ally as you navigate through this complex industry.
As you stand on the precipice of launching your own e-cigarette store, you might be tempted to rush through the development of your business plan. In a word: Don’t. A well-crafted document will be invaluable for years to come as you develop your customer base and adjust to the varying conditions and trends that make operating in this industry so filled with potential for profits.
