How to Open a Vape Shop Franchise

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1 How to Open a Vape Shop Franchise Introduction Each year, thousands of people take the leap towards starting their own business in the vaping industry. Vaping is rapidly growing in popularity, especially amongst those who are trying to quit smoking. Retail vape stores are popping up in cities and towns all over the country, and more and more people are taking up vaping as a healthier and cleaner alternative to smoking. This makes it the perfect choice of industry to join if you re hoping to have a successful business that provides customers with products which are in high demand. If you re thinking of opening up your own vape business or franchise, it s important that you are fully prepared and know what to expect before you rush into anything. To run a vape shop, you ll need to be determined, ambitious and hard working. Opening a vape franchise can be the journey of a lifetime but before you embark on it, let s have a look into what it entails. Benefits of Opening a Business For many people, running a business of their own is a dream come true. Being an entrepreneur offers a higher level of flexibility than many other jobs, and the opportunity to be one s own boss is an attractive one to many. Having a flexible schedule may take time and hard work initially, however opening your own business allows you to work to plan goals in order to create a schedule that suits you, giving you more of a chance to enjoy life outside of work. Running your own business can, in time, provide an opportunity to earn a passive income meaning that you can retire early and watch the money come in. In today s volatile economy, job security is becoming more and more of a rare thing to find. Running your own business offers much more job security than many conventional careers as you re your own boss meaning that there s nobody to fire you or demote you. You are in full control of your own ambitions to succeed in life, and there s nobody who can take those away from you when you run your own business. There are also a number of tax benefits which are available to you as a business owner check with your certified public accountant (CPA) who will be able to provide you with a detailed list of the different tax benefits you can get such as car expenses and food bills. For many entrepreneurs, starting their own business was the moment when they really started to get to know themselves. Running a business gives you the opportunity to push the boundaries and limits that are put in place by many employed jobs. Running a business can help your existing skills to improve and will also give you the chance to acquire and discover new talents. Opening a Franchise vs. Starting Your Own Business When you decide to start your own business, there are two different choices available to you. Firstly, you can start your own business from scratch and build your own brand. Starting a business from the

2 ground up is a popular choice with many entrepreneurs, however this method can bring with it a number of problems and disadvantages, especially for first time business owners. Starting your own business from scratch means that you ll also need to build a brand from scratch. This entails many hours of putting work in to do brand research, researching your competition and attracting a customer base who have never bought your products before. You will need to research the best prices on the market when it comes to stock, and in the vape industry, design and possibly even manufacture your own e-cigarette hardware and liquid products. If you buy products from other suppliers, it s important to find them at optimal prices so that you can offer the best deals to customers who want to spend as little as possible on their vaping equipment. If you are considering starting a business in the vape industry, starting from scratch can be very risky. Because the industry itself is growing so rapidly, there are masses of competition which you will be up against many of which will be well established and successful with a loyal customer base. It will be up to you to put in a lot of hard work and effort to build your brand and create products which have the edge over the competition, something which can be quite difficult in such a fast-moving and competitive industry. When you combine the work needed to build a brand, develop or seek out products which will sell, market your brand and company and build a loyal customer base all on your own, it can quickly become a rather daunting and overwhelming idea. Along with the extra work, you ll also have to consider the costs required when starting your own vape business for example trademarking your brand and designing a logo. All of this combined can make for a very risky startup idea, especially for those who have little experience in running a business or are first-time entrepreneurs. Opening a franchise takes away a lot of this risk which is associated with starting your own business from scratch. When you open a franchise, you are joining a business and brand which is already established, therefore there s less need to put in a huge amount of work to gain the edge over the competition. The products which you sell when you open a franchise will be tried and tested and there s no need to worry about which ones will go down well with your customers as they ll be established in the market already. One of the main benefits of opening a franchise is that your shop and products will have a brand that is already being marketed and advertised, with a loyal customer base ready to come and buy from you. Although you will need to market your shop in the local area where you have set up, there will be less need for marketing as extensive as that of a business which is starting from scratch. Along with this, opening a franchise means that you re not on your own. When starting from scratch, many entrepreneurs can find themselves with little support, on their own to figure out the best path to take in order to make sure that their business is a success. Although there are many resources out there it can be time consuming to find them, leaving new business owners with little time to focus on aspects such as customer service. On the contrary, opening a franchise provides you with a full support team and help whenever needed. This makes it the perfect option for first time business owners with little experience, as there is a dedicated team ready to make sure that you are provided with the advice and support you need in

3 order to ensure that your business is a success. Rather than spending time building a brand and searching for resources on how to successfully run your business, you ll be able to open a shop that has a ready-made brand and have access to advice whenever needed. Why the Vape Industry? If you have already established that opening a franchise is the most ideal way for you to go about setting up your own business, the next step to take is that of deciding which industry or business sector you re going to join. A vape franchise is an awesome idea as not only are vape shops in high demand, they also stand out from the crowd and give you a good chance of running a successful business. When opening a franchise it s important to join a company which is experiencing good success, and the global e-cigarette market has been enjoying staggering growth rates that don t seem set to slow down any time soon. To give you an idea of how the demand for e-cigarettes and vaping gear is growing, let s have a look at some of the figures. Of all the products or business sectors you could choose to open a franchise for, e-cigarettes are definitely the ones showing the most significant growth with market worth leaping from $1 billion in 2013 to a huge $6 billion in If up until now you have been undecided when it comes to business sector as you hadn t found a product which shows large positive growth signals and an ever-expanding demand in the market, e-cigarettes are the exception which you ve been waiting for. They provide the successful, fast-growing market that makes the perfect base for setting up a franchise. Joining a market that is both revolutionary and fast-paced also comes with a range of other advantages. At a time where the economy is no longer blossoming, the vape industry continues to grow at a rapid pace creating positivity for all involved with it and opening up many new job opportunities. The industry itself may not be very old; but it is bringing people from all walks of life together around the ever-increasing growth of both e-cigarette hardware and e-liquid products. Going by history, conditions such as these are highly likely to bring about much innovation and even further chances for making investments and turning a profit. Like many potential franchise owners, you may have been put off some sectors thanks to the moral dimension which some of them entail. However, the e-cigarette industry is becoming a force for good in the world, offering the first serious alternative to smoking cigarettes which has for far too long been the cause of many serious diseases and even death. E-liquid does not contain many of the toxic substances found in conventional cigarettes and they do not burn in the same manner meaning that there is no production of carbon monoxide or ash. This makes them a much safer alternative to smoking conventional cigarettes which contain ingredients such as tar, arsenic, and cyanhydric acid. Running a business franchise which is able to provide customers with a means to kick a harmful habit and improve their lives can be just as satisfying as turning a profit. By setting up a vape franchise, you will be able to help to contribute towards a healthier and better society. Yet another benefit of choosing the vape industry for your franchise is the relative monetary investment compared to your potential profits. With a vape franchise your investment is much lower than a fast food restaurant, for example, where you would need to offer a wide range of products and throw away a lot of waste. Setting up a vape franchise means that you ll make a much lower

4 investment as you will be able to hang onto stock for longer and virtually everything you might have in stock can be sold. So, if you have decided that opening a franchise in the vaping and e-cigarette market is the right choice for you, the next step is to choose the right company with whom you will run your franchise. You ll need a company that s doing well and offers a good franchise package there are a few to choose from, but Artisan Vapor Company stands out as an ideal choice. Expected Costs of Opening a Vape Store Whether you choose to build your own vapor brand from scratch or choose to open a franchise, there are some inevitable costs involved with starting a business in the vaping industry. If you re not sure what to expect, here s an average cost breakdown to help give you an idea. Rent: $500-$3000 per month, depending on location and size Security Deposit: $500-$1500 Display Cases: $1000-$3000 Exterior Shop Sign: $500-$5000 Interior Signage: $500-$1500 POS System: $500-$1500 Merchant Bank Account: $500-$1000 Products: $1000-$5000 or more Local Licensing/Business Approvals: $0-$300 Optional Filing of LLC: $500-$1000 Trademark Name (ignore if setting up franchise): $500-$2000 depending on attorney Utilities: $100-$300 per month High Speed Internet and Telephone System: $150 per month Local Advertising: $300-$500 per month Insurance (Property, inventory, worker s compensation): $100-$200 per month Sales Tax and Tax Filings: $50-$100 per month Payroll Company: $20-$30 per employee per month Employee Salaries: $2500-$3500 per employee per month Costs can vary depending on whether you set up your own business from scratch or decide to open a franchise. For example, if you open a franchise there may be no need to pay for certain costs such as exterior or interior signage as these could be covered by the company with whom you have a franchise. There will also be no need to pay for trademark or patent costs as the brand and products which you sell will already be established. For many people wanting to start their own business, a franchise is a more cost-effective option. Although many of the above costs still apply when running a franchise, there is also much more support available and the benefit of joining an already established brand which can help to increase your profit margin in a shorter amount of time. Important Things to Consider

5 Whether you choose to open a franchise or open you own vaping retail store there are a number of factors which should be considered whilst in the planning stage. No matter the type of business which you are planning to open, these factors are significant and should be given careful consideration in order to help you make the right decisions about your new company. Location: Whether you are starting a business from scratch or opening a franchise store, it s important to get to know the local market and search for a prime location which will attract the most amount of customers. Don t be put off by areas which already have some competition a couple of competitors can be a good thing when approached in the right way, however an oversaturation of vape shops could put you out of business quickly. When looking at potential locations, search for competitors and see whether you could offer anything that they do not. Bear in mind that local competition can help your business, but it s important that you follow them closely. There are also a number of other things which you ll need to take into consideration when choosing a location for your retail vape store. You should check both state and federal laws which could affect the decision of where to locate your shop, and determine whether or not you will need a license to trade in the area. Because vaping products are viewed as adult products, they have an age restriction in some areas and you will be required to obtain a permit to sell them. Ask yourself a series of questions before making a decision regarding the store location. For example, will the area attract a lot of underage kids? Is there heavy foot traffic in the area? Will people be willing to travel further than the center of town to get to your shop if needed? Making sure that you choose an optimal location for your potential customers can make or break your business. Capital: Depending on your plans for your shop, the amount of capital you will need ready to invest upfront will vary. If you are starting a franchise you should check whether or not there is a minimum amount required. For Artisan Vapor Company franchises, it s recommended that you start out with an average of $100k. If you are opening your own store, however, the amount of capital which you start with is entirely up to you. Some shops have started with as little as $2k borrowed from family or friends, but in general the more you have to invest initially, the less stressful the process will be. How you go about gaining capital is up to you, and there are a range of choices. Banks offering conventional business loans can be used, however it s good to bear in mind that you will most likely be put straight into the high risk category, meaning that you ll be paying significantly high interest rates which will add to your business costs. An alternative to this is to search your local market for capital investment companies who will work with you to provide the amount of capital you need to comfortably get started but charge much lower interest rates on the amount borrowed. Inventory: With so many online vape shops available to customers these days, the trick when opening a physical retail store is to ensure that you offer the same products as are available online at competitive prices

6 to attract more customers. Customers who buy online tend to do so because they save money; but if you can offer the same products at similar prices on the high street, customers will be likely to switch as it means they can walk away with the product on the same day without paying premium prices. To guarantee success with customers, you should carry a full line of products in your store. Don t just carry the products that you enjoy yourself and think that your customers will find out what is in demand the most in your desired area, and make sure that they are part of your inventory as well. Make sure that you carry a variety of products to suit all different levels of vapers who may visit your shop. You ll need starter kits for those customers who are just starting to switch over from traditional cigarettes, all up to more advanced mods and accessories for the more experienced vaper. Stocking a variety of brands is essential so that you can cater to different tastes and preferences. Customers who are new to vaping often tend to go for products in lower and middle price ranges, as they haven t usually set aside a large budget for their new vape kit or don t want to spend a great deal as they re not sure whether or not they will see any benefits. One of the biggest mistakes that many vape retail stores make is to cater only for new customers and only stock the cheaper products. By making this mistake, you will lose out on customers further down the line when they upgrade to more advanced and technical mods. Your aim is to keep your customers for as long as possible, and by stocking vaping products for all different levels of experience, your customers will never need to go anywhere else except for your shop to get what they need. When you open an Artisan Vapor Company franchise, you ll be provided with a full list of stock which you can add to your inventory. If making sure that you choose the right products becomes overwhelming, their dedicated team of support staff can give you advice on which products you should stock and how to find out which products are in demand in your area. Promotion: Even before you open your shop doors to the public, promotion is essential. Social media is an excellent tool for promoting your shop and the products which you stock, with free giveaways being a great method. This will help you to gain more followers quickly and increase interest in your shop. Hosting Cloud Chasing competitions, where vapers compete to see who can create the largest vapor clouds, is also a fantastic way of getting people into your shop and increasing your customer base. Promotion is equally as important when you open an Artisan Vapor Company franchise, however you ll have help and support. The company will set up the necessary social media accounts for you as well as support you in updating and managing them to attract more customers to your store. Why an Artisan Vapor Franchise? When you open a franchise, the last thing that you want is a lot of difficult procedures to follow and red tape in place. You will be busy enough opening and setting up your own shop and you will want to keep any complications and stress to a minimum to make sure that the process is as simple and easy as possible. Artisan Vapor Company offer a set-up operation which is extremely streamlined and simple meaning that there s no need for you to worry about small print and intricate procedures. Instead, you ll be able to focus on your job, which is to run your franchise business successfully by providing your customers with the products and services that they want.

7 Artisan Vapor Company is a leading name in the vape and e-cigarette industry, making it an ideal choice for those setting up a franchise as you will be entering a brand and company which is already successful and profitable. Thanks to their already built success, Artisan Vapor Company is able to provide franchise owners with a constant stream of supply and support along with more visibility and easy access to resources. As this industry is relatively new and fast-growing, it s important for franchise owners to have a business behind them which is able to offer the support and potential training which they may need. This may well be your first franchise; if this is the case then it s likely that you will need a lot of support in order to understand the industry and what your potential customers are looking for. Artisan Vapor Company run a full training and support program which is run by qualified experts, giving you the resources needed to run your business in a manner that s both informed and focused. Marketing is an area of business that can be difficult to crack when you run a franchise. Many businesses don t offer marketing support to their franchise owners; instead simply providing them with marketing materials and expecting them to figure out a marketing campaign on their own. As all entrepreneurs know, marketing is a science in itself and has the power to make or break a business, especially a new startup franchise. Many shops, franchises included, fail due to a lack of expertise when it comes to knowing how to market themselves and not necessarily because they fail to offer good products or services. Unlike many other franchise companies which throw you in the deep end when it comes to marketing, the Artisan Vapor Company offers full marketing support for franchise owners which can be crucial to your success. Whilst you may have initiative, enthusiasm and lots of energy when it comes to setting up and running your franchise, experience is probably a key factor which you are lacking in especially if this is your first time running any kind of business. This is why Artisan Vapor Company has a team of both experienced and dedicated staff on hand to guide you every step of the way and give you all the advice you need to make sure that your franchise is a success. With Artisan Vapor Company, you ll never feel alone in your journey. Making sure that you have a reliable line of supply is an important concern when you run a franchise. For retailers, making sure that products are readily available for customers is important for building a loyal customer base and building a clientele list. Making sure that you can readily obtain stock when needed is essential to your trade, and when running a franchise it s important that you can call when needed and order stock that will be available for your customers when they need it. This is why Artisan Vapor Company has a dedicated supply team who work around the clock to ensure that your franchise has access to the best and latest products available in order to keep even the most demanding of customers satisfied. Making a healthy profit from your franchise is also a major concern. Making an income is usually the main reason why entrepreneurs start a franchise or business, and because of this it s important that the company you choose offers competitive rates. The less that you need to spend on keeping your shop in stock, the higher your profit margin will be. Artisan Vapor Company offers products that are priced between ten and thirty percent below the industry rate. This means lower initial investments in stock as well as ongoing higher profit margins and the opportunity to offer lower prices to your customers.

8 Building Your Customer Base When you open a franchise, you have the added benefit of a known brand name and therefore will have some ready-made customers who will come and buy from your shop no matter what. However, building a loyal customer base is just as important when running a franchise as it is when you start your own vape business from scratch. Marketing is a huge part of getting customers through the door, and thanks to the dedicated marketing support team provided by the Artisan Vapor Company you will certainly be provided with the means to do this successfully. Advertising locally through the use of business cards, flyers, and displaying posters can bring people from the local area into the shop to see what the vaping craze is all about. Handing out flyers that entitle new customers to special offers and discounts is also a great method of attracting new custom and increasing the footfall through your shop door. On top of that, you also have the whole of the internet at your fingertips, and this powerful marketing tool should not be ignored. Although you won t be able to set up your own website with a franchise, your store can be added onto the brand website and you can run your own social media page to interact with and attract new customers. The Artisan Vapor Company will help you to set up all the necessary social media accounts along with , so that you re able to keep your customers updated at all times. marketing lists can also be useful, as long as you have an approved mailing list of customers who ve signed up to receive information about offers from your store. Once a customer sets foot through your shop door, it s important to make the conversion from curious customer to loyal customer. You can help to make this happen in a variety of ways, but ensuring excellent standards of customer service is definitely one of them. Customers should be made to feel welcome in any way possible when visiting your store, and it s important to ensure that they know you care about their vaping needs and will go the extra mile to make sure that they get products which they love. Stock tester products to allow customers to try before they buy, and consider setting up a loyalty scheme such as a free e-liquid per every ten bought in order to keep customers coming back for more. Offering support and advice for those looking to quit smoking conventional cigarettes is also a fantastic way to drive more customers to your store and increase your loyal customer base. Many smokers want to quit but can be a little apprehensive when it comes to trying a new product such as a vape kit, and wonder whether it s worth paying money for. Holding events for those interested in switching to vaping from smoking can be an excellent way to drive interest to your store and enables you to offer support to the local community. Steps to Opening an Artisan Vapor Franchise Before you open a franchise with the Artisan Vapor Company, it s important that you plan and prepare properly in advance. Before beginning, it s recommended that you have around $100k startup capital to invest. Along with ensuring that you have enough capital to invest, it s also vital to check out the different locations where you are considering to open your shop in order to make sure that you re in an optimal place. Once you have picked a city where you d like to open your franchise, the Artisan

9 Vapor Company will help you to shortlist specific locations and select one which is ideal for both parties. Once you ve found a property for your shop to be located, you should choose a corporate approved interior design. The way which you design and display your shop will not completely be down to you, and although you will be given some freedom of choice it s important that the décor is in line with the Artisan Vapor Company brand. Once this is set up, you ll be able to order an Inventory which will contain everything you need to get your shop started. Along with ordering the basic products from Artisan Vapor Company, you should consider researching the customer base in the area so that you can stock the products which your customers want the most. The corporate marketing team will give you a head start by setting up all the necessary accounts for and social media as well as adding your store to their website. Before opening day, you ll also need to hire employees and management staff to work in your shop. You will be given the opportunity to interview and choose employees yourself, and the Artisan Vapor Company will assist with corporate training. This includes shop management training, customer service training, and information about the different products which you will sell. Your staff should not only be great at delivering fantastic customer service and making your customers feel extremely welcome, they should also be confident to answer any questions that customers might throw at them as well as be able to recommend different products to suit different customer needs and requirements. It s also a good idea to start your marketing campaign well before your shop doors open. This gives customers an advance notice that you re about to open up shop in the area and you ll be able to make sure that those customers who would have come along if they d have known don t miss out. In order to get a good turnout on opening day, it s a good idea to display posters and hand out flyers in the local area as well as post on your social media account. Offering special discounts and offers exclusive to opening day is a sure fire way to bring your first customers through the door. Once you and your team are ready, it s time to open the doors to your first customers and start trading in one of the most rapidly growing and popular industries!