How to Start Creative Lights Business: Many people love fireworks and use them to celebrate all sorts of days, like the 4th of July, New Years and many others.
If you’re looking for a fun and exciting business to start, you can capitalize on this love of fireworks by opening your own outlet.
Aside from illuminating a room, lights when used creatively, can easily give beauty to the room.
Working again on the vanity of man, lights, especially LED lights can easily be sold as one of the high margin products in the market because, LED has a reputation of being a better choice compared to other lights.
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How to Start Creative Lights Business
1. Check the laws regarding fireworks in your area.
Many states have restrictions or even full bans on fireworks.
Some are only restricted to certain counties.
Check this out before trying to open a fireworks outlet, and see what the law does and does not permit you to sell.
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How to Start Creative Lights Business
2. Secure capital, or raise an initial investment.
You may need to take out a loan to do this, or borrow the money from friends and family.
Create a mental image of how you will run your business.
Will you lease a property? Or buy one? Or will you simply have a mobile stand on the side of the road?
Calculate how much this will cost, and do price estimates on the inventory you will need to purchase.
Also take into account running costs for the first year, i.e. employees, utilities, business fees.
Be sure to have more money than you will need in case of unforeseen expenses.
How to Start Creative Lights Business
3. Secure a business license for your store location.
Without a proper business license, your business may be seized and you may face criminal charges.
The best place to start on this is at your state government and with the local chamber of commerce.
Fireworks can be a touchy issue, so be prepared to defend your business model.
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4. Establish your business.
After securing your paperwork and funding, move into a building you have already scoped out and know you can afford.
Ensure the building has a more than adequate fire suppression system.
And that you are able to get property insurance, in case the worst happens.
5. Order your inventory.
Since fireworks tend to have a long shelf life, feel free to order a variety of products.
Keep it well organized and catalogue everything that comes in.
Be sure to check and recheck orders, invoices and what is actually in the boxes to avoid theft and shipping mistakes that could cost you money.
How to Start Creative Lights Business
6. Establish prices for your merchandise.
Average markup in many retail stores is 100-200% Namely, at 100% markup, if you have a pack of sparklers that cost you $2, sell them for $4. Ensure that you make money on every product. Failure to do this will result in losses for your business and may force you to default on your loans. Avoid the temptation to give things away for free.
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7. Keep it neat.
Ensure your store is well laid out and clean.
You want to make potential buyers feel welcome and comfortable.
Ensure that floors are swept and mopped nightly, windows are kept clean.
And counters are kept bare to avoid a cluttered appearance.
How to Start Creative Lights Business
8. Open your store.
You’ve gone through all the steps! Hold a grand opening to get the word out.
Pass out fliers, and since you do sell fireworks, consider doing a few displays.
Just ensure that you are allowed to do this beforehand.
9. Watch the store, closely, for the first year.
This is the time when businesses thrive or fail.
Each month be sure that you are making more money than you are shelling out.
If you are not, you must immediately take corrective action to ensure your store survives.
This may involve cutting costs by limiting the variety of merchandise, raising prices, letting a few employees go or working to attract more business.
Recognize that if a month dips even slightly into the red, it means you are losing money, and action must be taken.
How to Start Creative Lights Business
10. Advertise.
You may now have your fireworks store, but how do people know about it?
If you’re located along a major interstate or other roadway, shell out the cash to rent billboard space.
Also try getting a large vaulted sign, to draw customers right to your store.
If you’re in an area a bit more heavily populated, consider hiring a sign-waver to draw in a crowd.
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11. More tips
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Hire people with good backgrounds who you trust.
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Try to avoid hiring friends and family, as you may find yourself having to fire some of your employees down the road.
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Remember: a business is a business. Even though owning a fireworks store might seem like fun, it is still a business. Before you do anything, ask yourself, “Will I make money by doing this?” This will help ensure your dream stays alive for a long time.
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Always keep safety and common sense in mind. Fireworks can be dangerous, and as the proprietor, it is your job to keep your store safe.
Conclusion
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Ensure you are legally allowed to do something before doing it, and that you have the proper licensing.
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Keep a close eye on your finances. Continued losses over time will kill your dream of owning a fireworks store, and hurt your credit rating. It may also affect your personal life if the issuer of the loan demands repayment.