Title: How to Start a Pawn Shop | TRUiC
Headings: How to Start a Pawn Shop
How to Start a Pawn Shop
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Start a pawn shop by following these 9 steps:
STEP 1: Plan your business
What are the costs involved in opening a pawn shop?
What are the ongoing expenses for a pawn shop?
Who is the target market?
How does a pawn shop make money?
How much can you charge customers?
How much profit can a pawn shop make?
How can you make your business more profitable?
What will you name your business?
STEP 2: Form a legal entity
Form Your LLC
STEP 3: Register for taxes
Small Business Taxes
STEP 4: Open a business bank account & credit card
Open a business bank account
Get a business credit card
STEP 5: Set up business accounting
STEP 6: Obtain necessary permits and licenses
State & Local Business Licensing Requirements
Certificate of Occupancy
Services Contract
Pawn shops should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.
STEP 7: Get business insurance
STEP 8: Define your brand
How to promote & market a pawn shop
How to keep customers coming back
STEP 9: Create your business website
Start A Pawn Shop In Your State
Is this Business Right For You?
Want to know if you are cut out to be an entrepreneur?
What happens during a typical day at a pawn shop?
What are some skills and experiences that will help you build a successful pawn shop?
What is the growth potential for a pawn shop?
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Take the Next Step
Find a business mentor
Resources to Help Women in Business
What are some insider tips for jump starting a pawn shop?
How and when to build a team

Content: Since a pawn shop makes money in multiple ways, it needs to attract more than one type of customers to be successful. In order to make money off short-term collateral loans, the shop must have customers who need cash to pay for something immediately, do not have or do not want to use other forms of credit, and has a source of income to pay off the loan and interest to redeem the item. To make a profit by selling items, the pawn shop needs customers who want to save money buying secondhand items. How does a pawn shop make money? Pawn shops make money in two ways. The first way is to offer collateral loans and to make money on the interest rate. The second way is to sell items at a profit. How much can you charge customers? The maximum amount pawn shops can charge customers on a loan is controlled by the state. According to the National Pawnbrokers Association, charging $15 on a 30-day, $150 loan is typical.