I want to open a head shop and I want to do it soon. I have no experience opening a small business but I have a friend who just opened a head shop who is going to mentor me on the basics. He can show me step by step how to stock up from his wholesaler and what to stock up on. Theres lots he can show me to get me going.
My main area of help I need is how to step by step right up a business plan and estimate expenses of start up cost so I can seek capitol.
I just have no clue where to start. How do I know what a contractor will cost me to build the inside of the store and install cases and counter tops etc.. I just need some advice on how to go from empty commercial real estate unit to head shop, how do I estimate what it will cost me and how would I put it on paper? where would I start? I know once I have a professional looking business plan with accurate estimates that I will have no problem getting funding. But I need to know how to put this on paper and come up with accurate estimates. Any advice and step by step instructions would be great . thanks.

Let's just start on the first thing and most important = money.

You are not going to be able to walk into any bank or credit union and get funding for a start up retail business with a business plan alone.

Do you have any collateral like a house/cars/stocks that you can take a loan against?

If not, you need to start thinking of other places you are going to get money to start this if you do not have any.

lol, didn't know what a head shop was. had to google it. was thinking something else.

sry, can't otherwise help.

I have wealthy connections and if they believe in what im doing and the value of the business they will invest. I also have some liquid cash myself. The main help I ned is how to estimate the start up costs accurately and get them on paper.

Why don't you ask your friend who just started one? That seems like the first place I would go to. The only acceptable answer here is "It depends".

Opening up any shop 101

• You need a business name (FREE)
  
• You need logo/design work done for you ($50-$1,000)
  
• You need business cards ($20-$200)
  
• You need to set up an LLC or other entity to do business as ($200-$500)
  
• You need a RE agent to help you find a store front location (FREE)
  
• You need to negotiate a lease for the space ($600-$6,000 per month)
  
• You need a website (FREE - $10,000)
  
• You need to talk to at least 3 contractors for quotes and finish it out with whatever construction it might need if you cannot negotiate the building owner to do the finish out for you ($2,000 - $20,000)
  
• You need to furnish it with display cases and whatever fixtures and furnishings you want, possible even talk to some designers to help you ($500 - $20,000)
  
• You need to research suppliers and vendors and figure out what it is you are selling, what the best margins are for specific products, what niches you can come up with, what the population around you demands (FREE)
  
• You need to buy products/supplies to sell ($Depends on terms)
  
• You need to figure out what kind of marketing would be the best and estimate costs ($100 - $10,000)
  
• You need insurance ($50-$150/month)
  
• You need to figure out how many employees you might need

The list goes on and on and on....no one here can just spit out exact figures for you. You are going to have to do some work and research to figure all this out on your own unfortunately.

The list you gave me in that format is actually very helpful Thanks.
I feel like I have a lot of strong qualities to run and grow a business but im not organized and I have a hard time executing things in a timely manner. So step by step guides and basics just to launch are very helpful

does not compute

Op

please let me talk some sense into you..

1) retail shops like the one you are talking about barely make any money. You'll be lucky to make 50k a year after you pay rent, payroll, insurance, taxes, inventory, alarm, bge, maintenance, not to mention any loans you have to take out.
2) It is all volume driven. Lets say most retail business net 25% after all is said and done. You will need to do over 300k in sales just to make around 60k. Thats a lot of customers and sales.
3) you are about 15 years too late. A lot of the major wholesalers already have distribution outlets in brick and mortar and online
4) you wont be able to compete with online prices
5) How many people do you think will be return customers? Once someone comes in and buys a bong, it will last them for years. It is not like they buy a new piece every week
6) You have no business plan/experience

other than that good luck!

One business in this realm that I do find interesting and untapped in certain markets is the e-cig and juice business. There are certain "vape bars" (no idea what they're called) where the store sells e-cigs and accessories for them, as well as the nicotine juice in them.

The few I have been to (I smoke one occasionally) were pretty crowded with people buying replacement parts, upgrades, and trying flavors. I would think the juice, if made in house and it's not really that difficult, probably has a 300% markup at least and ranges from $6-$30+ per bottle depending on size and were basically talking about an addictive product here (nicotine).

The next gen's will be smoking the hell out of these things, not cigarettes. I'm assuming OP being "mr vapor" would be incorporating this into a shop?

Why don't you partner with your friend who is already experienced in this industry.

every part of this store feels like a trainwreck waiting to happen. good luck.

Seems like every BFI starting a business thread is full of people trying to talk OP out of it. Real shame...

1st thing is to make sure that it is legal to sell those items in your jurisdiction. Here in South Florida, many head shops have gotten raided and the owners and employees went to jail. Then make sure you have 1 year of expenses in cash, and plan on not making any money for a while. You need a marketing plan and quality products. I would suggest opening near a college campus, preferably within walking distance of the dorms (many students don't have wheels). Advertise in the campus publications, websites etc. Make friends with the frat boys (they will be your best customers). Good Luck.

I think there's a very high risk of governments bringing out legislation that could crush business like this overnight (ie: there is talk here in the UK of putting e-cigs under the same legislation as other nicotine replacement products and that they might only be sold from licensed pharmacists, etc).

Juk

there should be a provision in any shop like this' lease that if e-cigs get adversely regulated, you can leave.

Is it? When someone says they're disorganized, untimely, and completely inexperienced in every aspect of the business they want to operate, what do you expect? Cheerleaders? "My friend owns a head shop" is not a qualification. Planning is the first of the four management functions we learned back in the day and this isn't even there yet. We're still in the (pipe) dream phase.

I don't see any mention of margins, volume, location, competition, cost of credit, cost of anything. Floor space. Even the cost list above is horribly incomplete as mentioned. Business phone line. The POS system. Trash disposal. Security system. Payroll service. And of course shrinkage (retail anything and that will take a chunk).

Being clueless about certain aspects (like a build-out) is forgivable for a first shop at least. Construction anything is hard to price especially since it's so regional and can be extremely swingy as do materials. But I can't address that with virtually nothing to go on and I've done it. But to have no idea of anything means you're not prepared or qualified. If you ask 5 people, probably 4 will tell you they'd be able to run a successful small business given the opportunity.

Then there's the potential legal problems with a business like this depending on area. We've had head shops not only raided and fined in my state, but had their mercantile license revoked and shut down.

These threads just tend to go better when the OP puts at least a little effort into research and demonstrates some actual planning. Right now the only sensible advice is to buy his friend bunch of lunches and maybe work in his shop for a little bit.

Agree, and this thread was probably a bad one in which to make my point.

The most important part of any business is revenue. Incoming cashflow is what gives a business its value. Not a storefront, inventory, etc.

That big ass bullet list posted earlier is an example of what I'd called "playing business." Anyone can set up a shop, have business cards, buy inventory, and lose money.

Before you set up your headshop, you need to figure out how you're going to make money. Do you know who your customers are? How are you going to reach them? How to get them into the shop and buy stuff? Is there even a need for a headshop in the area? Even if there is a need, is the demand big enough to be profitable?

This kind of stuff might be best started as an online business. You can try things out, sell stuff to people you know, learn the ropes, etc, without the huge overhead costs. Running a brick-and-mortar without much insight or knowledge is like stabbing in the dark and hoping you succeed. I'd only do this if I sold drugs under-the-table hehe.

I have a bad idea or a good one,,, A headshop On the interstate to Denver?

Can't buy pot out this far, rural.. ruled against it.

Something out here for stoners, there is nothing,,,, you get to colorado and it is 3 hrs of nothing, lol... they don't like pot here,,, legal though... I was thinking of starting a headshop, but online always is easier,

Glad I read this post... and i am thinking of making glass pipes here.....

I have carpal tunnel but maybe could twist glass or get a lathe all day.... and train people to make easy pipes,,, maybe takes 80 hrs to get basics down good?

Yes, money runs things... So maybe a headshOP out of your house and advertise on CL... People shop on there for friends i think, LOL.. Sell pipes and stuff on Craigslist and maybe see how that goes? There is not enuf locals here for pot, i would be counting on people i never see again, or maybe on way back out of state.

The majority of people who want to start businesses shouldn't. OP certainly falls into that category. If there was any way to make money from betting against his success I would in a second. If I'm that certain that someone fail would it not be somewhat psychotic to not take a minute or two to try to get them to rethink their stupidity? Obviously they are rarely going to listen but encouraging the clueless to make major life mistakes is pretty cruel.

how active is this post still? Times have changed and the demand for smoke shops are running high. I work at one myself here in Florida and you would be amazed at the amount of revenue pulled in each month.

Sick bump. What ever happened to Henry17? Is he in prison lol?

Must be, it wasnt until i saw his post ITT that i checked the date, ha, he gone

what did he do?

This is EXACTLY what your friends should be doing every time you're trying to start a business. Seriously. The amount of risk you're taking you should be looking forward to defending the idea.