Well let me tell you that every day they open new pawn shops. And it is not for less because this has proven to be a business that well managed can represent excellent income by providing convenient solutions to people who for one reason or another need quick money.
The Pawnshops They are usually businesses that meet certain needs that the traditional banking system cannot cover. Essentially, people can borrow money almost instantaneously, with no hassle and little or no paperwork.
Essentially to obtain a quick loan, clients need:
- be of legal age
- present your identification
- have some good to pledge as collateral for the loan
Mount a quick loan business or pawn shop is relatively simple for any entrepreneur because its business plan It is based mainly on having a capital to provide these loans to its clients, minimizing the risks in the operation.
So if you have some capital available to put it to work, this is an attractive and profitable business option.
Guide to Opening a Pawn Shop
1. Market study. Like any business, for your project to be successful it is important to carry out a market study to be able to choose the most appropriate area to locate your premises and attract your potential clients. Remember that the sector that usually demands these quick loans is usually the medium-low sector with high consumption. You must also verify the number of competitors that are already operating in the same sector where you want to open your pawn shop.
2. Legalize your company. Acquire an operating license. In most cities the loan houses are regulated by the banking and financial system of your country. This is good because it somehow guarantees equality of standards to compete and minimizes risks for customers based on the use that bad entrepreneurs can make of this business.
3. Hire the staff. You must recruit adequate personnel to manage the operation and administration of the business. Essentially you will need one or two cashiers, an appraiser for the products to be received and a store manager in charge of all financial and transactional matters. Of course, the extra services such as the accounting, legal and other parts can be outsourced to reduce your initial fixed costs.
4. Promote your business and start attracting customers. Today there are many inexpensive ways to achieve this, so I recommend you see our post on how to promote your business without spending too much.
Key Elements in Assembling the Business
Derived from the fact that this is a financial businessIt is important that you meet and get advice from experts in finance on issues related to financing, interest rates, terms, guarantees and everything related to loan management so that your investment multiplies with calculated risks.
It is very important for the pawnshop have professional and competent personnel in the valuation of the authenticity and estimated value of precious metals and jewels that are received as pledge.
Recommended: Book My Loan Business
Initial Investment
Considering that the raw material of a Pawnshop To operate is cash, you will need to have a good liquid capital to grant the loans without problems. This will also determine the maximum amounts you can offer.
Equipment of the Pawn Shop
Equipping your business will require some initial furniture such as:
- Counters to serve customers
- Displays to display products for sale
- Basic office furniture for the administrative area
- Warehouse for storage space
- Stations to display the products
Undoubtedly setting up a pawn shop is the opportunity to put your money to work instead of just continuing to work for money. If you are interested, this book is a good starting point to obtain the entire business plan for setting up your loan business.
