There’s something magical about walking through the doors of a pawn shop. Instantly, you’re surrounded by unique items that you couldn’t find anywhere else. And each item has a story.
If you find yourself drawn to pawn shops and you’d like to open your own, you’ll need to take some important steps to set yourself up for success. Want to know more?
Keep reading to learn about four simple tips for starting a pawn shop. Let’s get started!
1. Learn How to Assess Value
If you want to run a successful pawn shop, you’ll need to learn how to assess the basic value of jewelry, electronics, tools, and other popular items. Your ability to quickly evaluate an item’s worth will make or break your business.
Do your research by studying online auction sites. And keep your finger on the pulse of modern trends to figure out if an item will sell quickly.
If you find that you have an affinity for appraising and selling certain items, roll with it. You can even market your business accordingly. For example, advertise that you are a “silver pawn shop” or “piano pawn shop” to attract buyers and sellers with these particular goods.
2. Make a Plan
Next, you’ll need to create a plan for your business. Take some time to sit down and map out what you need to get started.
This plan should include a general business timeline, a vision for your marketing efforts, and a model for your day-to-day operations. Map out a strict budget and stick to it.
You’ll also need to decide if you want to promote your pawn shop online. Connecting buyers and sellers with your shop through an online service is a great way to boost your income and exposure.
3. Fill out the Necessary Paperwork
Now it’s time to make things official. Gather the business forms you need for your permits, storefront rental, employees, taxes, etc.
You can apply for your pawn shop license at your local branch of the Department of Financial Institutions. If necessary, fill out these forms with the help of an accountant or lawyer.
4. Make Security a Priority
When you’re designing the layout of your shop, don’t forget to include security at every corner. Install security cameras and an alarm system with an armed response. This way, if there’s an unsafe situation, you can notify the police right away.
Make Your Dreams of Starting a Pawn Shop a Reality
You’re so close to opening the pawn shop of your dreams. Just follow the four tips above and you’ll be on your way to owning a successful pawn business.
For the best results, start by educating yourself on how to assess the value of common pawn shop items like jewelry and electronics. If you have an affinity for certain goods, make them your specialty. And don’t forget to make safety a priority when setting up your shop.
We understand that starting a pawn shop isn’t easy. If you need some support, check out our small business assistant.