Gaming is one of the most popular industries making it a great investment if you’re looking to start a business. While popular, video games can be extremely expensive, so a used video game store might be ideal for opening up.
If this sounds like something you’re curious about, check out this post. Below are a few steps to follow if you want to open a used video game store.
1. Write a Business Plan
Creating a business plan is vital if you want to be successful. This will help you organize your thoughts and get a better idea of what you want your future business to be. For instance, do you plan to specialize in certain types of video games? Will it only be games or merchandise as well? Do you want to reach out to a specific demographic? What will its name be? These are key factors to consider for your plan.
If you need further assistance, consider downloading an online business plan template. Here, you’ll get general information about what to include, like an executive summary, company description, and potential services and products.
2. Obtain Business Licenses and Permits
Once you’ve come up with a strong business plan, you’ll want to start researching the necessary licenses and permits to open up your store.
For most video game stores, you’ll need to at least have a commercial license. This basic business license allows you to operate your store legally. These fees will vary based on your business needs as well as the location.
You’ll also have to register it under a certain entity. For a used video game store, it’s usually ideal to do so under a Limited Liability Company (LLC), which allows you to work independently and is much cheaper to register under than other options.
Depending on what video games you’re selling, you might also need to obtain rights to sell or advertise them. But, again, you’ll want to research copyright laws to ensure a permit isn’t required for certain brands.
3. Scout Out a Location
Finding the right spot for your store is also critical. If you rent a space in an area outside of your targeted demographic, you’ll quickly be out of business. On the other hand, if your shop is near several other similar stores, you might have trouble making a decent profit. Because of this, you’ll want to carefully investigate your desired location to ensure that it fits your needs.
Here are some key aspects to contemplate:
- If there’s adequate parking space
- If it’s near your targeted clientele
- If it’s in a safe and open area
4. Get Insured
You’ll also want to insure your business. This will protect it should your property get damaged or a customer somehow injures themselves in your store. Sometimes, property managers might not let you rent a building if you don’t show insurance proof. Because of this, it’s usually best to just purchase some.
So, what does small business insurance cover? More than most realize. Some of these include:
- Property damage
- Injuries
- Lost wages
- Defense costs
- Car accidents
- Business errors
Many agencies also offer online quotes. Just type in various information (like if you plan to hire employees and your average profit), and you’ll get a general idea of what you’ll need to pay. This way, you know what to expect and can sort your finances better.
In most cases, you can obtain insurance instantly once you sign up. This can be very useful if you need immediate insurance proof.
5. Understand Your Finances
Another important thing to consider is your financial situation. Do you have enough savings to open it on your own, or will you need loans and grants?
If you think you might need a loan, see if your bank offers any. You might also check out Small Business Administration loans which come in a variety of types that fit your needs. Some of these include:
- 7(a)
- 504
- Microloans
This is an easy way to get the necessary loans, but you do need to qualify for it. You’ll need to be for-profit, have invested equity, and not be receiving funds from other lenders to qualify for one.
You could also reach out to investors. These range from professional lenders to your friends and family. All you need to do is convince them that their investment will ultimately pay off.
Apart from this, opening a separate business account might be beneficial. This will help you keep your business dealings in one place and refer to any purchases or similar information when needed. It’s also very useful during tax season when you might need to check for certain fees and deductibles.
Running a used video game store can be rewarding but overwhelming. So if you’re interested in opening one, be sure to keep the steps above in mind. They’ll help guide you toward creating a profitable business.