2 answers
Alexander
Student
San Luis, Arizona
3
Questions
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How difficult and time consuming is it to start a small business like a pawn shop?
I want to know the answer to this question because I feel like it would be difficult to run and it could possibly be useful to learn in the future.
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2 answers
david kirk
Retired Computing Manager
478
Answers
Syracuse, New York
Updated
david’s Answer
Hi, Alexander,
Running a pawn shop sounds interesting, as I'm sure you would hear many stories from customers. Starting a pawn shop is very similar to starting other businesses, as they all have some items in common. Here are some of the steps you would be likely to face:
- you would need a business license
- you would need a bank account for "Alexander's Pawn Shop" - that's different from a personal account.
- you might need a tax id from the Federal government
- you need business liability insurance and business property insurance
- you need a business phone number
- you need to rent space and probably have a minimum one-year lease.
- you probably need a tax accountant
- you will need a line of credit from the bank, so you can pay bills that are due prior to receiving payments.
- you will need to hire at least one employee to ensure the store is always open.
- you will need an appropriate software accounting system to track payments, inventory, and salaries
- you will need to buy appropriate shelving and other furniture for the store
- you will need professional assistance in creating ads
- you will need to advertise in multiple media to announce your store
- you will need sufficient cash for initial obligations, and enough in savings to handle all costs for the first few months until the shop begins to stabilize with costs and revenues.
However, with all that, if it feels right, it can be a source of endless smiles. All the best to you in your pursuits.
Running a pawn shop sounds interesting, as I'm sure you would hear many stories from customers. Starting a pawn shop is very similar to starting other businesses, as they all have some items in common. Here are some of the steps you would be likely to face:
- you would need a business license
- you would need a bank account for "Alexander's Pawn Shop" - that's different from a personal account.
- you might need a tax id from the Federal government
- you need business liability insurance and business property insurance
- you need a business phone number
- you need to rent space and probably have a minimum one-year lease.
- you probably need a tax accountant
- you will need a line of credit from the bank, so you can pay bills that are due prior to receiving payments.
- you will need to hire at least one employee to ensure the store is always open.
- you will need an appropriate software accounting system to track payments, inventory, and salaries
- you will need to buy appropriate shelving and other furniture for the store
- you will need professional assistance in creating ads
- you will need to advertise in multiple media to announce your store
- you will need sufficient cash for initial obligations, and enough in savings to handle all costs for the first few months until the shop begins to stabilize with costs and revenues.
However, with all that, if it feels right, it can be a source of endless smiles. All the best to you in your pursuits.
Katherine Avery
Run a music studio and teach private music lessons; teach college-level religion classes
350
Answers
Spanish Fork, Utah
Updated
Katherine’s Answer
I don't know specifically about the business you mentioned, but a general good answer that most probably applies to you, because it applies to everyone, comes from Dave Ramsey: "It will take twice as long as you're thinking, and it'll cost twice as much as you're thinking, and you're not the exception." There's a good book called Entreleadership that specifically covers small businesses that might not be the same kind of thing you're looking into, but it gives a down to earth picture of the kinds of things you should think about when you want to have a business.