How to open a pawnshop. Pawnshop business: how to open a pawnshop for household appliances

Useful information from the world of jewelry

How to make money at a pawnshop

Everyone knows what a pawnshop and buying are, but how many have thought about cooperation with these organizations, about how to make money from them?

Let us immediately note their difference. A pawnshop is a credit institution that provides loan services for a certain period of time secured by movable property of value, which can then be redeemed by paying accrued interest.

The process looks like this: the client brings his jewelry, Swiss watches, collectible coins, etc. to the pawnshop, specialists carefully study it, check for authenticity, evaluate it in accordance with the current price of gold on the world exchange and offer their own price, which , we must not forget, is always below the purchase price. A pledge ticket is issued, which indicates the borrower’s data, characteristics of the item, appraisal amount, loan term, repayment date, interest rate, and the possibility of early repayment of the loan.

If the borrower is unable to repay the money on time, the pawnshop, at its discretion, may provide a grace month, during which the product is still stored in the pawnshop and is not sold. If the borrower cannot pay his debt, then the item becomes the property of the pawnshop. It can be sold in a matter of days.

Buying differs from a pawnshop in that the client is not given the opportunity to buy back his product. They buy the product from him at a price lower than the purchase price, but more attractive than in a pawn shop.

As for items that come into the possession of a pawnshop or purchase, they are put up for sale. Specialists in this business and collectors are well aware of this, because this is where you can buy authentic jewelry from luxury brands, Swiss watches, and collectible coins at an attractive price. As practice shows, products do not stay here for long. And this is not surprising, where else can you buy, for example, original Cartier watches for much less than the original purchase price.

Having bought original Swiss watches or jewelry at a bargain price in a pawnshop or purchase, they can later be resold to collectors who are interested in people through sites such as ebay, Avito, a specialized site for the sale and purchase of Swiss watches chrono24, exhibit lots on sites for collectors, and make money from this.

Pawnshops and purchases will exist for a long time, because there will always be those who want to sell gold and those who want to buy it. Cooperation with them will be a very profitable business.

How to open your own pawnshop from scratch? A question asked by an entrepreneur who decides to open his own business. But, before you start filling out the documentation and looking for a place for a pawnshop, it’s worth drawing up a business plan and calculating how quickly the investment will pay off.

There cannot be a definite answer to this question, since it is necessary to take into account a number of factors that directly affect the profitability of a business, in particular:

• location of the pawnshop - it is advisable to locate the enterprise in areas with high traffic of potential customers;
• cost of rent - the higher the monthly payments, especially at the initial stage, the more difficult it is for an entrepreneur to recoup his costs and start making a profit;
• advertising effectiveness - well-organized PR campaigns attract customers;
• competitiveness - the business owner should study the demand for the services of organizations of this type in a particular area and come up with what exactly his pawnshop will be attractive to clients;
• trained staff - if the pawnshop employs unqualified employees, the owner will lose part of the profit due to their mistakes or inability to communicate with customers.

For the owner of a pawnshop, the most difficult period is considered to be the first half of the year from the moment of opening, since at this time the company is just gaining momentum and often operates at a loss. For this reason, more than a third of pawnshops cease their activities at this time. After this period, profits begin to gradually grow; after a couple of years, even a small pawnshop begins to bring its owner about 100-150 thousand rubles monthly.

But even compliance with the above conditions does not guarantee business profitability. For this reason, it is necessary to draw up a detailed business plan, calculate all the costs and risks, then the likelihood of opening a profitable pawnshop will increase significantly.

What do you need to open your own pawnshop?

Before you decide to open a business, you should choose its specialization. So, pawnshops can be of the following types:

1. Auto pawnshop— the organization accepts cars as collateral for issued funds. Such a business is very profitable, but to organize its work you will need additional space to accommodate the machines.
2. Antique— here paintings, expensive fur clothes, ancient souvenirs, rare coins and other things of antique value are accepted as collateral.
3. Technical— here the collateral items are household and other appliances, which the client leaves in exchange for the funds received.
4. Jewelry- the most common type of business. These pawnshops accept precious metals and precious items made from them.

There are often mixed types of pawnshops in which, for example, a client can pawn both a mobile phone and gold earrings. This integrated approach allows you to receive greater profits and attract an increased number of customers.

An entrepreneur, even at the stage of deciding to open a pawnshop, should study the legislative acts regulating the activities of the enterprise:

• Federal Law No. 196, which sets out the main aspects of activity;
• Rosfinmonitoring order No. 203 dated August 3, 2010, which sets out the requirements for education and training;
• Order of the Ministry of Finance of 2001 No. 68n, which lists the requirements for the activities of pawnshops dealing in precious stones and metals.

It is important to take into account that the law obliges pawnshops to apply the OSNO (general taxation system), while the storage of things accepted as collateral is subject to VAT, but the interest received is not. In accordance with this provision, the entrepreneur will be required to maintain tax records for each type of activity.

Step-by-step instruction

The first thing you should do at the opening planning stage is to study the market for these services. A businessman should:

• carefully calculate the risks, costs of opening and organizing an enterprise;
• find out how popular pawnshops are in a particular locality and region;
• is there competition, can he offer clients more favorable conditions than competitors.

If preliminary economic calculations suit the entrepreneur, the enterprise should be registered with the official bodies:

1. Register with the tax office as an LLC, indicating the relevant OKVED 65.22.6., 74.14., 67.13.5.
2. Register the pawnshop within thirty days from the date of registration with the Assay Office and Rosfinmonitoring.
3. Insure the accepted items in favor of the pledgors with the selected company providing these services. It is advisable to take out insurance for any amount so that you do not have to insure each item separately.

Selection and preparation of premises

The choice of location should be approached responsibly: a considerable share of success depends on the location. So, the best place for a pawnshop would be a shopping center or a separate premises located in areas with high customer traffic. It is very good if there is a parking lot next to the pawnshop you are opening, and the premises itself will be close to busy public transport stops.

A pawnshop does not need expensive, elite furnishings—it is enough to place good-quality chairs and a table in the customer area, as well as equip a work area. But you should not neglect security - you should install:

• alarm and panic button for quickly calling security;
• metal bars on the windows, where the work and client areas are separated;
• metal doors;
• bulletproof glass;
• video surveillance system.

The set of equipment for work will depend entirely on the preferences of the entrepreneur and the type of pawnshop, but in any case you will need:

• office equipment - printer, computer with licensed software, high-quality Internet, telephone;
• special equipment - to determine the authenticity of products, high-precision weighing equipment, etc.;
• trade equipment - racks, counters, information boards, display cases, tables and chairs for staff and visitors.

Advertising

In order for as many clients as possible to know about the pawnshop, you should not spare money on advertising. First of all, you need to come up with a name for the pawnshop - it should be sonorous, memorable, and not too long. Then you should order an eye-catching sign that will indicate the name and operating hours.

It would be a good idea to order advertising in the media, hire promoters to distribute leaflets, and organize enterprise groups on social networks. An excellent solution is to hold a promotion on opening days, for example: “For first clients, the interest rate is halved!”

Hiring staff

To organize the work of a small pawnshop, a minimum staff consisting of qualified and certified workers is sufficient:

• manager;
• appraiser;
• security guard;
• accountant;
• merchandising specialist

Often the functions of several employees are assigned to one employee, but this is best done only if the pawnshop is small, otherwise the employee will not be able to cope with all the responsibilities.

Business plan

When drawing up a business plan, the most important thing is to calculate all costs and estimated profitability and profit. Thus, it is advisable to open a pawnshop whose profitability is at least 30%.

When writing a business plan, it is important to consider the initial costs:

• for documentation - 50,000 rubles;
• repair and equipment of the premises - 1,000,000;
• purchase of office equipment and equipment - from 300,000;
• advertising - 150,000.

Initial costs include funds intended for distribution to mortgagors (at least 9 million rubles) and money intended to finance activities until they become profitable (at least 2 million).

You should also take into account monthly costs, which include:

• payment of wages to employees - from RUB 300,000;
• rent - individually, depending on the location of the premises can vary from several hundred to several thousand rubles per square meter;
• hiring security - from 150,000 rubles;
• other expenses, tax deductions - from 200,000 rubles.

To calculate the profitability of a business, you should calculate what percentage the net profit of the revenue received will be. For example, with a million-dollar revenue, the profit is equal to 142,200 rubles, respectively, the profitability of the enterprise will be only 14.2%. In the first months of operation, such indicators are not low, but after 3-6 months they should at least double - this will mean that the pawnshop pays for itself and begins to make a profit.

The average cost of opening a pawnshop will be 12,000,000 rubles, this amount will include:

• funds for issuing loans;
• initial expenses for renovation of the premises, purchase of equipment, furniture, appliances;
• funds to finance activities for the first time.

With an average monthly revenue of 1,000,000 rubles and a net profit of 178 thousand rubles, the pawnshop will fully pay for itself in 84 months of operation.

There is another option for opening your own pawnshop.- acquisition of a franchise. This method will cost the entrepreneur more than opening it on his own, but will save on advertising (as a rule, franchisors provide all marketing materials). The advantage of opening a franchise pawnshop is brand recognition - people who want to get a secured loan more often turn to pawnshops with a famous name. And this fact is a guarantee of ensuring a constant flow of customers.

The main advantages of business are the possibility of rapid development and high demand among the population for the services offered, so pawnshops are becoming increasingly popular as the main type of business activity. With due effort, coordinated and precise work, and a sufficient amount of investment, the pawnshop will begin to generate income that will grow annually after six months from the opening.

All owners of organizations specializing in lending are thinking about getting maximum profit from the operation of their business. Entrepreneurs who have opened their own network of pawn shops are no exception to this. Each of them wants to receive a stable income from the car pawnshop that he founded.

What determines the fate of the bail bond office?

The lifespan of a car pawnshop is primarily affected by its level of profitability. Profitable pawnshop networks have been operating for quite a long time. Receiving a stable income, their owners open new branches both in their country of residence and abroad. Thereby increasing cash flow into your business.

The fate of pawnshops whose founders do not follow effective methods of business development is exactly the opposite. Such organizations eventually leave the service market, making room for more established firms. The constant development of a car pawnshop is the main guarantee of the profitability of a pawnbroking organization. Even having recently founded his company, the owner has every chance to build a business through which he will receive a stable income.

Having opened your own pawnshop and wanting to get the maximum benefit from its operation, you must adhere to the rules for increasing income. The latter, as a rule, are unspoken. After all, every auto pawnshop founder keeps secret ways to help him get maximum income from his brainchild.

The conditions for increasing profits in car pawnshops are covered in special courses and seminars. All roads are currently open to those wishing to become successful entrepreneurs. And specialists who have experience in founding a car pawnshop are happy to share their work with newcomers, albeit for money. But people who understand that in the business world everything revolves around finances invest considerable sums in training in order to subsequently receive a stable monthly income from their own business.

Sources of profit for pawn shops

Making a profit at a car pawnshop is a fairly transparent scheme, which, however, is completely incomprehensible to beginners. Therefore, in this part of the article, I decided to list the sources from which the owner of a car pawnshop can receive considerable income:
— commission trade and sale of accessories;
— selling collateral that remains unredeemed;
— purchase and sale of gold and silver products, both jewelry and precious metal ingots;
— receiving interest on loans issued.

The income of a car pawnshop directly depends on the amount of loans issued. The higher the total amount of cash loans, the more profitable a functioning network of pawnshops is. Therefore, for the owner of such an organization, the main goal is to increase the number of loans issued.

Effective ways to develop a profitable pawnshop

To receive a stable income from a car pawnshop, you need to take into account all the finances involved in this business and have an excellent understanding of accounting and taxes. But an entrepreneur who creates his own network of pawnshops, as a rule, does not have a special education or simply does not have time to account for finances. Therefore, you should hire specialists who will take into account the expenses and income of the organization.

The main ways to develop a car pawnshop, from which a constant income should come, are:

1. Optimization of the taxation system.

2. Having an experienced accountant on the team who can find ways to reduce taxes.

3. Establishing favorable conditions for regular customers.

4. Creating privileges for potential clients.

5. Introduction of a reward system for company personnel.

6. Hiring employees who are specialists who are well versed in the lending system.

7. Increasing the list of things that can be used as collateral in a pawn shop helps increase income. The collateral can be not only household or mobile appliances and jewelry, but also vehicles. The number of consumers will increase significantly with the expansion of the list of collateral items.

8. The presence of bright advertising helps promote business. You should comply with the latest technologies when creating advertising. Advertisements posted on the Internet are the most profitable solution for the owner of a car pawnshop.

9. Solid design of the pawnshop’s website and office, which inspires trust, helps increase income. An informative website and an office with its own style are the “face” of the organization. You shouldn’t skimp on creating a recognizable pawnshop design!

10. Marketing solutions can significantly increase a pawnshop’s profit.

11. Advantageous offers of a collateral organization can also attract a larger number of clients, thereby making the organization the most profitable. As offers, you can use tempting promotions and discounts, thanks to which the owner can consistently receive big money from the car pawnshop.

Correct assessment of the value of precious metals is the key to the success of a pawnshop

Today, pawnshop clients are middle-income people. Such establishments are in demand in residential areas of megacities, and in the city center, if we are talking about a small settlement. This pattern is explained by the fact that the middle class of the population is settled precisely according to this principle.

For loan offices characterized by seasonality - spring or autumn. Most often, people need money before or after their vacation to pay off current loans. This jump is insignificant and does not exceed 10%.

How to open a pawnshop

As with starting any business, capital investments will be a mandatory starting point. In addition to rent and equipment, the cost includes hiring staff and advertising budget.

What you need to open a pawnshop:

• rental of premises;
• covering the entire room with iron wire;
• conducting and installing video surveillance;
• installing an alarm system and placing the facility under protection;
• purchase of special furniture, safes, lockers for storing pledged property (this equipment should be of two types - for daily and long-term storage);
• car pawnshops must be equipped with parking lots in the adjacent territory.

For a universal loan office, you will need from 50 to 100 m² of rented area. If the establishment accepts only precious metals, then this figure may drop to 20-30 m².

Staff

The team of any pawnshop is small. Apart from the owner, it can consist of 4 people.

1. Commodity appraiser
2. Security guard
3. Accountant
4. Manager

The most dangerous and risky position is working as a commodity appraiser.. He must correctly evaluate the product so that the company does not remain in the red; must monitor the market and have a good understanding of the value of jewelry. Distinguishing gold from fakes is also very important, so good, stable experience is needed here.

The work of other employees is less important.

What else is needed to open a pawnshop?

In order for service to be carried out at a high level, you will need good software that will allow you not to delay customers.

The weighing and grading equipment is also original. This includes scales, magnifying glasses, and equipment for determining the authenticity of diamonds.

If you plan to receive digital and household appliances, then you need to stock up on disks, headphones, and batteries so that you can easily check the serviceability of the devices.