Starting a cigar shop and I need some help w/ Business plan

[Havana Dave]

Are there any most knowledgeable, most humble, fellow cigar lovers in the audience that have started a cig shop? I'm stuck on my business plan. I don't suppose you would let me take a look at yours? A few details...I want ot open it in Oklahoma City. Walk-in with a small to medium sized (free to customers) smoking lounge. No alcohol sales. Will sell pipes, pipe tobacco, Hookas and sisha. All the normal accesories. I'm stuck with the numbers. How to make projections for amount needed to borrow, profit and loss, sales projections. Any guidence would be great appreicated. Thank you.

 

[MoeCizlak]

Maybe put this idea on the back burner for a while.  Work in a cigar shop for a couple of years until you learn the business and then come back to it.  No offense, but you don't sound anywhere near ready enough to start this kind of venture.  Good luck to you whatever you choose.

 

[bluue13]

Also, post an intro, hang out a bit, get to know us.  Let us get to know you.  Its how we do it around here and you'll definitely be sure to get some more answers that way.
 
Good luck!

 

[BlindedByScience]

Maybe put this idea on the back burner for a while.  Work in a cigar shop for a couple of years until you learn the business and then come back to it.  No offense, but you don't sound anywhere near ready enough to start this kind of venture.  Good luck to you whatever you choose.

 
Sage advice.  Starting a business without experience in that same business is a good way to fail, hard.  Find a cigar store (or two) and work the counter for a year or two.  You'll gain experience (and contacts) that money can't buy.

 

[tomthirtysix]

Moe is actually the owner of the most successful line of cigar lounges in the greater Tri-City area. I'm sure if you shoot him a PM he'd share his secrets to success behind the scenes. Stuff like that you don't want out in the open for just anyone to see.

 

[tone-ny]

Moe is actually the owner of the most successful line of cigar lounges in the greater Tri-City area. I'm sure if you shoot him a PM he'd share his secrets to success behind the scenes. Stuff like that you don't want out in the open for just anyone to see.

X2

 

[Devil Doc]

Sell cigars for more than you pay for them. What could be simpler?
 
Doc

 

[ironpeddler]

Picking an industry under constant fire by our current Federal, State, and Local governments on all fronts known to mankind as one trying to be shuttered, is not a business venture I would invest in at this point in time.
 
I hope you have PLENTY of your own cash to finance this venture as I'm not sure many lending institutions would partner with someone associated with a business selling a tobacco product. The most polished business plan will face a huge uphill battle in securing any type of loans...even those backed 100% with solid, stable collateral.
 
I would also mention that most cigarette and cigar shops were put on our government's 'Endangered Species List' as of last year. If they cant stop the influx of product to the shops to shut them down, they'll tax them out of existence instead.
 
Good luck...

 

[Niko]

Moe is actually the owner of the most successful line of cigar lounges in the greater Tri-City area. I'm sure if you shoot him a PM he'd share his secrets to success behind the scenes. Stuff like that you don't want out in the open for just anyone to see.

Haha!  Ya, come on Moe... tell us all about your booming business.  :laugh:

 

[NorcalMark]

My father has been in business for 46 years in the same location. I have been working with him since 1992, but grew up in the shop. We have seen some major ups and downs in our industry.
 
Here is california, it takes two licenses to sell tobacco. The LR licensed (licensed retailer) allow you to only buy in the state of California. Prices are usually a little higher when you buy from a distributor, but the ca tobacco tax is paid. The cost in 2002 was 100 I believe. It only takes a form being filled out to be renewed. The cost may have gone up to apply for a new first time license.
 
The second license is the LD license (licensed distributor) which will allow you to purchase tobacco from outside the state of california. prices are a less from the manufactures. BUT, you have to pay the california tobacco tax yourself. you must keep track and pay monthly or quarterly. the cost for the license is 1000 per year. must be renewed at that price each year if you want to purchase directly from the manufacture.
 
In sacramento there is a city license they make us purchase. It's about 350 per year I think. I could be for a couple of years.
 
The ca tobacco tax is 30.68% of whole sale. So for every dollar add roughly 31 cents to the cost of the cigar.
 
I don't think I would even fathom opening a new store in this economy. No smoke law, increasing taxes, and just a over all hatred of tobacco by the majority.

 

[MadMonk]

Yeah, Norcalmark's response is quite sobering in this respect.
 
It really is a wonder how MoeCizlak has continued to not only prosper, but grow and open new locations. Sometimes I wish I could just sit with him for a few hours over a plates of Bucatini All' Amitriciana, I am sure just being in his presence is like, you know, experiences people have that create religious movements.

 

[MoeCizlak]

Moe is actually the owner of the most successful line of cigar lounges in the greater Tri-City STATE area. I'm sure if you shoot him a PM he'd share his secrets to success behind the scenes. Stuff like that you don't want out in the open for just anyone to see.

 
Fixed it for you.
 
LOL Dan.

 

[kann]

Looks like you guys scared off the intrepid entrepreneur...