How to Start a Retail Firework Business

Step-by-Step Guide

1. 1

   Step 1: Check the laws regarding fireworks in your area.

   Many states have restrictions or even full bans on fireworks.
   
   Some are only restricted to certain counties.
   
   Check this out before trying to open a fireworks outlet, and see what the law does and does not permit you to sell.
2. 2

   Step 2: Secure capital

   You may need to take out a loan to do this, or borrow the money from friends and family.
   
   Create a mental image of how you will run your business.
   
   Will you lease a property? Or buy one? Or will you simply have a mobile stand on the side of the road? Calculate how much this will cost, and do price estimates on the inventory you will need to purchase.
   
   Also take into account running costs for the first year, i.e. employees, utilities, business fees.
   
   Be sure to have more money than you will need in case of unforeseen expenses. , Without a proper business license, your business may be seized and you may face criminal charges.
   
   The best place to start on this is at your state government and with the local chamber of commerce.
   
   Fireworks can be a touchy issue, so be prepared to defend your business model. , After securing your paperwork and funding, move into a building you have already scoped out and know you can afford.
   
   Ensure the building has a more than adequate fire suppression system, and that you are able to get property insurance, in case the worst happens. , Since fireworks tend to have a long shelf life, feel free to order a variety of products.
   
   Keep it well organised and catalogue everything that comes in.
   
   Be sure to check and recheck orders, invoices and what is actually in the boxes to avoid theft and shipping mistakes that could cost you money. , Average markup in many retail stores is 100-200% Namely, at 100% markup, if you have a pack of sparklers that cost you $2, sell them for $4.
   
   Ensure that you make money on every product.
   
   Failure to do this will result in losses for your business and may force you to default on your loans.
   
   Avoid the temptation to give things away for free. , Ensure your store is well laid out and clean.
   
   You want to make potential buyers feel welcome and comfortable.
   
   Ensure that floors are swept and mopped nightly, windows are kept clean, and counters are kept bare to avoid a cluttered appearance. , You've gone through all the steps! Hold a grand opening to get the word out.
   
   Pass out fliers, and since you do sell fireworks, consider doing a few displays.
   
   Just ensure that you are allowed to do this beforehand. , This is the time when businesses thrive or fail.
   
   Each month be sure that you are making more money than you are shelling out.
   
   If you are not, you must immediately take corrective action to ensure your store survives.
   
   This may involve cutting costs by limiting the variety of merchandise, raising prices, letting a few employees go or working to attract more business.
   
   Recognise that if a month dips even slightly into the red, it means you are losing money, and action must be taken. , You may now have your fireworks store, but how do people know about it? If you're located along a major interstate or other roadway, shell out the cash to rent billboard space.
   
   Also try getting a large vaulted sign, to draw customers right to your store.
   
   If you're in an area a bit more heavily populated, consider hiring a sign-waver to draw in a crowd.
3. 3

   Step 3: or raise an initial investment.

4. 4

   Step 4: Secure a business license for your store location.

5. 5

   Step 5: Establish your business.

6. 6

   Step 6: Order your inventory.

7. 7

   Step 7: Establish prices for your merchandise.

8. 8

   Step 8: Keep it neat.

9. 9

   Step 9: Open your store.

10. 10

    Step 10: Watch the store

11. 11

    Step 11: closely

12. 12

    Step 12: for the first year.

13. 13

    Step 13: Advertise.

Detailed Guide

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