How To Open a Cigar Business

A lot of people are into smoking and have been spending a fixed amount of money on cigars and cigarettes on a regular basis. That is why despite the government warnings on the dangers of smoking, the cigar business is still afloat and booming. If you want to go into a cigar business, manufacturing is definitely out of the question. It is best to go into the retail distribution business, and get different brands of cigars from manufacturers or wholesalers and sell it for a mark up. Here are some useful information if you are looking at opening your own cigar business:

  1. Find out how you will finance your cigar business. Even if you have enough money on your savings account, it may still be necessary to get a bank loan because there are sudden expenses that come up and you need the cash to cover it. Prepare your business and marketing plan so you can see on paper all the things you will have to invest in, such as the lease on your cigar business space, advance payments for the suppliers, electricity bills, overhead expenses and payments for government licenses and permits.
  2. Look for a good location for your cigar store. Since cigar is usually bought by piece and not in bulk, then your retail store should be accessible to people traffic. The best location is inside a mall or a shopping center. You can also eye spaces near coffee shops, bars and restaurants, since people like to relax and have a smoke after a meal. Consider the cost of the location. You may opt to just have a retail stall, which requires a very small space, which can save you a lot on rentals. You can also opt for a larger store with a smoking lounge to encourage patrons to hang out while taking a puff, pretty much like a coffee shop.
  3. Look for reliable suppliers and business partners. You will have to deal with wholesalers. Since you want to retail different cigar brands, then you will be dealing with at least one wholesaler. Choose a company that provides a lower wholesale price so you can have a larger profit margin. Shop around for different wholesalers and compare their services and terms. It is best to deal with a supplier that also has a strong business relationship with the cigar manufacturer, so you are assured that there will always be continuous supply of cigar regardless of the conditions of the cigar industry.
  4. Complete the requirements in opening a cigar business. There are a lot more requirements in opening a cigar business since there are special regulations regarding the tobacco industry. Make sure you comply with these requirements and you have complete documents. In Texas, there are student entrepreneurs who successfully opened a cigar retail store, and they share their experience in getting licenses and permits as “really hard”. But considering that these are 19-year old students, you can also do it.
  5. Find other cigar related products that you can sell in your store. Aside from cigars, consider selling lighters, matches and other interesting items such as souvenir items and ashtrays.
  6. Advertise your business. This may be done through word of mouth by spreading the word to your friends and neighbors. You can also advertise in magazines once you already have steady income.


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