Business idea: How to open your own vape bar? Business plan for opening a vape shop (vape bar), developing an online store for electronic cigarettes from scratch, making money selling electronic cigarettes Ways to make money on electronic cigarettes.

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1. PROJECT SUMMARY

The goal of the project is to organize a vape shop in Novosibirsk. Vape shop (vape-shop) is a place that combines the functions of a shop and a club for lovers of the so-called electronic evaporators (electronic cigarettes). Customers can purchase electronic devices themselves, consumables for them, related accessories, as well as spend time smoking ("vaping") and chatting with other visitors to the vape shop. Vaping today is a fairly powerful subculture, so a well-organized vape shop is able to attract a large number of customers.

The level of competition in Novosibirsk today is quite low - there are no more than 3 vape shops in the whole city. This is one of the main success factors of the project. The main performance indicators of the project are given in Table. one.

Table 1. Project performance indicators

2. COMPANY AND INDUSTRY DESCRIPTION

Vaping (from the English Vape - steam) is a new subculture that is actively gaining popularity all over the world and in Russia in particular. Vapers contrast themselves with conventional cigarette smokers; E-cigarette smoking is not considered to be harmful to health. To date, there are no official statistics on the number of vapers, sales of devices and consumables. However, if we assume that every twentieth smoker in the country uses electronic cigarettes, then the market size can be estimated at 2.5 million people (according to statistics, in 2015, smokers accounted for 35% of the country's population). This number will constantly grow - both due to the transition of smokers of regular cigarettes to electronic ones, and due to non-smokers who are part of a new subculture. The average cost of a smoking device is 3,000 rubles, the period of use is 1-2 years. Consumables - bases, fragrances, batteries, etc. - are purchased at different intervals depending on the activity of using the device, but, as a rule, at least once a week. The average check is about 300 rubles. Thus, in monetary terms, the market can be estimated at 40 billion rubles a year.

Like any subculture, vaping is characterized by a high level of involvement of its participants, commitment to brands and trends, active tracking of new products and fashion trends.

In Novosibirsk, vape culture is also actively developing today, but the level of competition is still low - 12 stores specializing in the sale of electronic cigarettes and 3 vape shops.

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The main difference between a vape shop and a store is the opportunity to visit the first one not only to purchase devices or consumables, but also to communicate on interests while smoking, like in a social club. For this purpose, a counter like a bar and several chairs are provided in the premises of the institution. Since the establishment is not a catering establishment, it does not require a bathroom for customers, other requirements that are usually placed on bars and clubs also do not apply.

The location of the vape shop is the territory of the cultural and leisure center "Creative World", which houses shops for young people, art workshops, rental and repair of bicycles, etc. Since the most important target audience of the project are young men and women aged 18-35 years, the location in this place is the most appropriate and justified.

Assortment - devices for vaping, consumables for them and accessories. The price category is average. The product line includes devices for both beginners and professionals. The former are presented in a smaller volume than the latter.

The investment costs for opening a vape shop include the repair and decoration of the premises, the costs of the launch advertising campaign, the purchase of the first batch of goods for storage, as well as the formation of a working capital fund before the project reaches payback. The initiator of the project performs, among other things, the function of the seller. Investment costs are given in Table. 2.

Table 2. Investment costs

	NAME	AMOUNT, rub.
Real estate
	Premises renovation
Equipment
	Cash registers and software

Intangible assets


working capital
	working capital

	Total:	411 000 ₽
	Own funds:	RUB 200,000.00
	Required borrowings:	211 000 ₽
	Bid:	18,00%
	Term, months:

3. DESCRIPTION OF GOODS AND SERVICES

The range of the project includes devices for vaping, consumables, accessories. The product line consists of 78 items, therefore, for the convenience of description and financial calculations, they are combined into product groups, for each of which the average check amount is determined. Product groups and their characteristics are given in Table. 3.

Table 3. Product groups and their characteristics

	Product group	Characteristic
	Starter Kits	Starter kit consisting of maintenance-free low power electronic cigarette (clearomizer + battery pack) and battery (China)
	Professional kits	High power kits and mods serviced (China)
	Professional Premium Kits	A line of professional kits from the USA, released in a limited edition. Distinctive features: high autonomy and power, stylish design.
	Liquids	E-liquids and fragrances for vaping (China, Russia)
	Accessories	Electronic cigarette cases, maintenance tools and other accessories (China)

Table 4. Purchase cost and selling price

As an additional service, customers are offered to test individual models of devices or types of liquids in a vape shop, on the basis of which they can make a purchase decision. Also, visitors to the vape shop can soar inside the shop behind the bar. There are five seating places, however, if desired, visitors can also stand up.

Sellers provide consulting services on the choice of devices and liquids, instruct them in their maintenance; if necessary, they can conduct a master class on maintenance.

4. SALES AND MARKETING

Sales are carried out directly in the premises of the vape shop. Behind the bar is a showcase that houses devices and consumables. The client can comfortably sit at the bar while the seller talks about the features of a particular device, and can also test the device on the spot.

At the initial stage, promotion is carried out through contextual advertising on the Internet, as well as through the distribution of promotional materials among visitors to the Creative World CDC, which is, in fact, a youth community with close relationships. Community members support each other and help in development. Thus, the first customers of the vape shop will be tenants and visitors to the CDC. In the future, the viral dissemination of information through people who have already visited the vape shop is expected.

Of the traditional methods of promotion, promotion in social networks (vk.com, fb.com, Instagram, Twitter) is provided. In addition, innovative methods of brand promotion are expected to be used: shooting viral videos, holding competitions in cloud chasing (vaping at the power limit of electronic cigarettes in order to get a large cloud of vapor).

Reviews of new devices and liquids

Device selection and maintenance instructions

Life hacks for using vape devices

Cloudchasing competition video

company's news

A loyalty program is provided to stimulate the purchase of devices and consumables: each buyer receives a card, on which the seller puts a mark with each new purchase. After every tenth purchase, depending on the total amount, the customer receives a gift from the store.

5. PRODUCTION PLAN

The vape shop is located on the first floor of the Creative World CDC in a room of 25 m2. The property is in need of some cosmetic work and refurbishment. All communications are summed up. The estimated turnaround time for repairs is 10 business days. It is possible for the landlord to provide rental holidays for two months.

In parallel with the repair of the premises, a bar counter is made according to individual sizes. The manufacturer is a furniture factory in Novosibirsk.

The goods are purchased in small quantities from two wholesale suppliers located in China and Moscow, delivery is carried out by a transport company. The back room of the vape shop is used for warehousing. The volume of the purchased batch is determined as the planned sales volume for the month plus ten percent.

6. ORGANIZATIONAL PLAN

The project implementation process can be conditionally divided into two main stages: preparatory and working. During the preparatory phase, repairs and decoration of the premises are carried out, the first batch of goods is purchased. Duration - 3 weeks. At the second stage, operational activities are directly carried out. The project implementation period is supposedly limited to five years, after which, depending on the development of the vape device market, a decision may be made to close it and withdraw funds.

The organizational and legal form of the project is IP. All the main management functions are performed by the entrepreneur, combining them with the duties of the seller. The organizational structure of a vape shop is very simple: two shift sellers (one of them is the project initiator), an outsourced accountant. Working hours - 10.00 - 20.00, 2/2.

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There are no special requirements for project personnel. For a hired seller, knowledge of the topic of vaping is welcome; in the absence of such knowledge, training is provided. The salary of the seller is 25,000 rubles. The total wage fund (including payment for accounting services) is 37,700 rubles per month (with deductions to off-budget funds).

7. FINANCIAL PLAN

The financial plan is drawn up for a period of five years and takes into account all the income and expenses of the enterprise.

Investment costs include the cost of renovation and furnishing of the premises. Acquisition of cash register equipment and software for trade, development of a website and launching an advertising campaign. This also includes funds for the purchase of the first batch of goods, as well as for the formation of a working capital fund, which will cover the losses of the first periods of the project (Table 2).

Own funds of the project initiator - 200,000 rubles. The missing amount of money is planned to be attracted with the help of a bank loan for a period of 24 months at a rate of 18% per annum. Credit holidays - three months. Repayment is carried out by annuity payments.

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Variable costs include the cost of purchasing goods and transporting them (Table 4). Fixed costs include rent, utilities, advertising expenses, etc. It also includes depreciation of fixed assets and intangible assets. The amount of depreciation is calculated using the straight-line method, the useful life is five years.

A detailed financial plan is given in App. one.

Table 5. Fixed costs

8. PERFORMANCE EVALUATION

Efficiency assessment is carried out on the basis of the analysis of the financial plan, as well as using simple and integral performance indicators (Table 1).

Revenue from the first year of the project - 3.7 million rubles; net profit (after taxes) - 617,147 rubles. Revenue for subsequent years - 4.6 million rubles, net profit - 994,524 rubles.

Simple and discounted payback period - 9 months. To account for the change in the value of money over time, the method of discounting cash flows is used, the discount rate is 7%.

The net present value of the project (NPV) is 532,473 rubles. Return on investment ratio (ARR) - 20.7%. Internal rate of return (IRR) - 13.21%. Profitability index (PI) - 1.3. All these indicators testify to the profitability of the project and its investment attractiveness.

9. WARRANTIES AND RISKS

To achieve maximum efficiency and financial stability of the project, all possible risks associated with its implementation are analyzed. Both internal and external factors are evaluated.

The main internal factor can be attributed to the wrong assortment line. To prevent shortfalls in profits for this reason, constant monitoring of the market and competitors is necessary in order to identify the latest market trends and assess demand.

The main external factor of influence is the state regulation of the industry. In particular, the ban on the use of vape devices in public places, on the one hand, may negatively affect the level of consumer demand, on the other hand, attract more visitors to the vape shop as a place where devices can be used.

10. APPS

Attachment 1.

Financial plan

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Denis Miroshnichenko
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Every day there are more and more vape lovers. As a business idea, the sale of vaping products is considered very promising. There is no strong competition in this area. Along with the constantly growing number of vaping fans, the need arose to create establishments where vapers could gather and communicate with like-minded people. Opening a vape bar is much easier than, for example, a hookah bar - smoking bans do not yet apply to vaping. How to open your own vape bar so that it becomes profitable? Below we will consider this issue in more detail, but for now we will consider the legality of organizing such a business.

Anti-tobacco law No. 15-FZ (23.02.2013) does not affect the use of electronic vaporizers. Prohibitions apply to the use of tobacco cigarettes and the spread of tobacco smoke. Administrative liability, approved by law, occurs only for tobacco use - sniffing, chewing and inhaling smoke. Electronic cigarettes do not contain tobacco products. No tobacco smoke is generated during the use of the electronic vaporizer. The use of nicotine is not prohibited.

Most e-liquids do not contain nicotine. Therefore, the use of electronic cigarettes is not affected by the law and no matter where the vaper is located.

The only caveat that exists in the sale of electronic evaporators is that it is forbidden to wholesale and retail products that look like an ordinary cigarette. Considering that the use of such products is not prohibited, it is not surprising that such a legislative norm is puzzling. It turns out that it is possible to produce tobacco cigarettes, but not imitation? But almost all models of electronic evaporators do not resemble tobacco products, so problems with their implementation rarely arise.

Vape bar as a business project.

The main slogan of any vape bar is: “ We do not sell food and drinks, but mood!". This is a trendy place for like-minded people to relax. What attracts a vape bar to its customers?
Let's get acquainted with the features of vape bars:
The main clientele are young people aged 18-35. Young people are eager to get acquainted with all sorts of new products. Most of all they like to relax in the company of like-minded people, in a comfortable environment. Using the vaporizer outdoors is inconvenient. Although this is not prohibited by current legislation, vigilant people can consider the vapers to be a drug addict and call law enforcement representatives.
The atmosphere of vape bars is not much different from ordinary hookah bars. The atmosphere of hookah bars is most often made in oriental style, while the atmosphere of vape bars is laconic. The design of the room is done in a high-tech style or similar to the setting of sports bars. In addition to the main components - racks and showcases with liquids for vaping, vape bars contain indispensable attributes - a TV, a game console, board games, listening to music.
The main component of the success of a vape bar is competent staff. Vape bar employees should have professional knowledge in vaping, advise visitors on the choice of liquids and vaporizers.

After reading numerous reviews of vape bar visitors, we can conclude that the purpose of visiting vape bars is to vape, chat with like-minded people, try out new flavors of liquids and learn all the tricks of vaping. The desire to have a bite to eat, play a console or watch TV fades into the background. Therefore, friendly staff is so important for vape bars, able to explain all the subtleties of visiting these establishments. Vape bars also host competitions and master classes between vapers, during which they exchange all the intricacies of vaping with each other. Based on the results of search engine queries, you can see that such establishments are opening in large cities. Opening vape bars is becoming an increasingly popular business line.

The amount of investment and payback period of a vape bar.

The amount of starting capital directly depends on the format of the vape bar. A full range of services involves dividing the bar into several zones:

« Fresh» - an area where visitors are offered: tea, coffee, sandwiches and light snacks, juices, smoothies;
« Vapetek» - a recreation area for bathers, where they hold events, soar, acquire new tastes of liquids;
« Bar» - for vapers who love strong alcoholic drinks and cocktails;
« lounge» - a privacy zone for couples in love or fans of game consoles;

Services, prices for "gadgets" for vaping and liquids in different vape bars in the country.

The specifics of the institution and the target audience of visitors depend on the presence of certain zones.
There are two formats of vape bars:

To open an online store, the initial investment is about 600000 rubles. This amount is made up of the following costs:

Procurement of electronic devices and liquids — 420000 rub.;
Advertising promotion - 100000 rub.;
Website creation - 50000 rub.;
Promotion and optimization of the resource — 20000 rub.;
Dedicated number. Domain maintenance, SSL certificate - 10000 rub.

Chinese goods have a low cost, so the margin on them can reach 300% The daily income of an online store can reach 42,000 rubles. daily. From this it follows that with a competent approach, investments in an online store pay off in about a month and a half.

Conclusion.

Opening a vape bar is considered a promising business project, regardless of its format. You don't need much space to store vaporizers and related accessories. Additional profit can be brought by after-sales service of vaping equipment. After the entrepreneur has decided on the format of the club, he needs to start an advertising campaign on social networks. It is best to start informing the public about the opening of the institution three months before the date of its opening. During this period, you will have time to gain a sufficient number of subscribers and tell them about the specifics of your institution. During this advertising campaign, you will be able to determine the interest of potential customers in certain positions of the assortment, as well as arouse their interest in the opening institution.

Nowadays, vaping is a popular element of the subculture, and the demand for it is not only not decreasing, but is constantly growing. In addition to the actual sale of electronic cigarettes, you can open a vape bar - an atmospheric place, an interest club among vapers.

Here you can chat with like-minded people, spend time with friends or the second half. At the same time, the atmosphere is absolutely comfortable: no opponents of electronic cigarettes and ardent fans of real tobacco.

Legality of the vape bar

Any measures of administrative responsibility relate only to the use of tobacco, or rather, inhalation of the product of its combustion (smoke), sniffing or sucking. Electronic cigarettes are not subject to the ban, as they do not contain tobacco and do not produce smoke during the “soaring” process.

Nicotine, which is contained in many mixtures, is not prohibited for use. In addition, many "slurry" does not contain it at all.

Thus, there is not a single document that would prohibit the distribution and use of E-cigarettes.

The only nuance. The manufacture and sale of smoking products that mimic real cigarettes is prohibited. That is, you cannot sell vapes that have a similar shape, although you can use them.
Vaping is a legal and harmless analogue of cigarettes

Vape bar as a business

At the heart of this institution is not food and drinks, but the mood and atmosphere. This is a trendy place that has the following distinctive features:

Decorated in a modern style (as opposed to with an oriental bias).
Equipped with upholstered furniture for complete relaxation, a bar with soft drinks (alcohol is in another room) and a showcase with electronic cigarettes and a variety of liquids for them.
Has good ventilation.
It is supposed to rent electronic cigarettes. Visitors who come with their vapes should definitely purchase e-liquids and drinks at the bar. This is a must!
Equipped with high quality music system.

It will not be superfluous to equip the vape bar with additional entertainment moments: massage chairs, board games, etc.

Visitors

The main contingent of such establishments are young people from 18 to 35 years old. If you open a vape bar right now, you can fall into a wave of popularity, since such objects are only gaining momentum so far. And the novelty factor attracts young people.

In addition, it is not always comfortable to “float” on the street, you want to relax in an appropriate environment without the sidelong glances of passers-by.

Staff

The selection of employees should be taken seriously. First of all, all staff must be well versed in vaping. It is desirable that he was also a fan of vapes himself. In this case, visitors will be served by an experienced specialist who will advise new products to seasoned vapers, as well as explain to beginners the smoking process and the choice of e-liquid and a suitable device.

Staff must be on the same wavelength with customers

Institution format

A vape bar should consist of several zones:

Fresh is a zone that sells tea, coffee, non-alcoholic cocktails, juices, light snacks.
Vapetek is the main area where they buy and try electronic cigarettes, hold entertainment events.
The lounge is a place of solitude with the second half or for those who like to sit alone.
Alcoholic zone - for fans of strong drinks.

Calculate income and expenses

The amount of investments depends on the chosen type of institution. Two options are most widely used.

Vape bar, where catering and vaping services are combined. Here you can have a snack, drink and "steam" at the same time. In this case, the area of \u200b\u200bthe room should be large enough. If it is assumed that there is a kitchen, then this business idea is practically no different from ordinary cafes and restaurants, where a number of requirements must be followed.

It will take about 5 million rubles to open such an institution. The payback period is about 8 months.

The projected income in the future is 700 thousand rubles in the summer and 1 million in the winter.

Club place for vapers. This is a bar where you can play board games, watch a movie, take part in various competitions.

It is much easier to organize such a business, investments are much less. The entire project will cost no more than 2 million rubles.

Instead of a kitchen, you can install a pizza or hot dog vending machine, as well as a coffee machine.

Additional income will be brought by the point of sale of "slurry", batteries, charging cords, and so on.

Sale of liquids for vapes will bring additional income

Vape bar promotion

First of all, you need a bright sign that would immediately indicate the format of the institution.

Next, you need to create groups on social networks, while regularly updating them, posting interesting news about your institution, informing about promotions and discounts, and providing an assortment of liquids. It is better to lead a group of such a bar with the help of an informal style of writing, with a share of humor and jokes. This inspires confidence in the main category of visitors - young people aged 18 and over.

Own website is desirable, but not required.

As a rule, the vast majority of visitors are people who heard about you somewhere from someone or saw a sign. Therefore, the main ingredients for success are:

Location in a walkway
Attention-grabbing sign
Advertising in social networks
Emphasis on the quality of service delivery so that word of mouth works well.

Conclusion

Vape bars are now experiencing a boom. Whichever of the two formats you choose, both have excellent prospects. A large area of the institution is not required, any difficult conditions are not expected. All that is needed is the availability of related vaping accessories and a decent service.

The subtleties of the Vape Studio franchise business

To bookmarks

While vapers are being caricatured, the vaporizer business is transforming from a hobby into a global industry. The store owners told how to open a franchise business, what is the difference between metropolitan and regional vapers, and whether it is possible to make money on a pair.

The material was prepared with the support of Vape Studio.

The success of a franchise network is highly dependent on the efficiency of the franchisor. . It is all the more interesting to compare what problems the Vape Studio vaper franchise managed to solve.

Where to begin

Even in a well-established industry, franchisors often do not have serious assets, but only provide support on social networks and give questionable advice. Vape Studio offers its partners something more tangible and meaningful: a promoted brand, a full set of instructions for setting up a point of sale and staff training, discounts from suppliers, marketing support - and, most importantly, connections.

Selling vaping products is a completely new field, so the Vape Studio tutorials are unique. Consultants explain to newcomers how their stores and merchandise should look, how salespeople should communicate with customers, and what e-liquids to purchase first.

A separate line are consultations on work with government agencies. Vape Studio does not fit into the accounting of partners, but it teaches how to register a point of sale so that the sanitary and epidemiological station and the fire inspector do not issue a fine, and also explains the features of the taxation system.

We just opened at the end of May. Vape Studio consultants came to us and told us how the business is built, how to make repairs, what to write on social networks and what is better to buy for sale. Rodion (from founder of Vape Studio and"vape sommelier" - approx. website) came to the opening and trained the staff, told them how to present themselves in the market.

Now the company is well-known, everyone knows that we are a network. This inspires confidence, and sales are growing, many come to us because we have an interesting concept. Vape Studio negotiates with suppliers and knocks out discounts for us.
- Tatyana, the owner of the Vape Studio store in Nizhny Novgorod

Business entry cost

If in some franchises the owner receives only a sign, and otherwise is left to himself, then Vape Studio has the expenses broken down into points and the entry threshold is calculated. The cost of the franchise itself is 70 thousand rubles per city. Repair of the premises and design in accordance with the corporate identity will cost another 350-500 thousand rubles, and the first purchase from suppliers - 600 thousand. Plus advertising costs. Although the studio provides banners, sketches and print layouts, the franchisee pays for placement.

According to the co-owners of Vape Studio, when choosing a place, you need to focus on traffic, since the share of regular customers in this business is small. This is not a restaurant, here people prefer to buy consumables along the way. The one who stakes out the best place in the city will earn more.

“You don’t have to be afraid of big expenses - you need to be afraid of small incomes,” they say at Vape Studio and claim that the monthly profit from one store can be about 200,000 rubles at the very beginning of work. The market is just emerging, there are no established competitors, often there is one vape shop or none at all in the whole city. This determines the rules of the game: the margin of commodity items ranges from 100% to 400%.

However, money is not all that is needed to be successful in the industry. The vape business is a kind of retail trade, and without the relevant experience, as the studio founders admit, it is very difficult in this area. Therefore, not everyone who leaves applications on the landing page for the sale of a franchise goes all the way to a Vape Studio partner.

“If a person says: “Dad gave a million and a half, and I want to open a vape shop!” “We filter such people: they, as a rule, do not value their time and ours and think that if you open a business, you can immediately fly to the Dominican Republic to smoke cigars, but this is not so.”

A collective portrait of the owner of an electronic cigarette store - a young successful entrepreneur of 25 years old, who often develops the second line of business.

“For the first month, we definitely recaptured the salaries of sellers and rent, and partially recouped purchases. My accountant did not complain, - Tatyana continues to share her experience. “There is always enough for rent, salaries and purchases.”

Model Feature

The Vape Studio network now includes 15 stores, four of which are managed by the owners themselves - that is, the franchisors are not cut off from business, but work daily in the appropriate environment.

Vape Studio managers say that their business is more like a consulting business than a classic franchise. Initially, a one-time fee is paid for the right to use the sign, and the rest of the money from the franchisee comes in the form of payment for consultations.

We test vape liquids and tell you in what proportions to buy them. For example, milk will go well, but strawberries are worse. The most important thing is just the information that will be sold.
- Yuri, co-founder of Vape Studio

E-liquids have to be tested carefully, because in Russia there is still no clear legislative framework and control over the creation of e-liquids for vapes. That is why Yuri jokingly calls his partner "sommelier". Although various sanctions and counter-sanctions have not yet affected the industry in any way, the store owner can play import substitution. In Russia, the production of many brands of liquids has already been established, which successfully replace foreign ones in the budget segment.

Capital vaping vs. regional steam

The difference between metropolitan vapers and regional electronic cigarette lovers is striking. In Moscow, vaping has become a part of urban culture and a means of self-expression, which is often ridiculed on the Internet.

In the regions, there is no rigid relationship between electronic cigarettes and subculture. On the contrary: the phenomenon covers the entire population. Many people see vape as an alternative to regular cigarettes, someone just wants to choose the taste of smoke for themselves.

Different motivation strongly affects the culture of consumption and, accordingly, the average price tag. If in Moscow expensive “Zizhki” with complex aromatic bouquets are valued at a price of 1000-1500 rubles, in the regions simpler liquids in the segment of 400-700 rubles are more in demand. Only age and social criteria coincide more or less: the average vaper is 25 years old or older, and his income level can be assessed as stable.

The "Children's issue" Vape Studio decided preventively, without waiting for the adoption of relevant laws by the State Duma. Already, the network sells electronic cigarettes and consumables only to adults.

A business plan for starting a new business in the service sector, which can be used as an example to assess the investment attractiveness of opening your own vape shop.

The purpose of this review is to confirm the cost-effectiveness of launching a project to create your own vape shop in a city with a population of about 1 million people.

The relevance of the idea

Smoking is one of the most common bad habits in modern society. However, vaping (vape - from the English steam) is an unconventional form of this bad habit. Vapers (people who use electronic cigarettes to satisfy their smoking habit) oppose traditional smokers, claiming that the use of electronic cigarettes is not harmful to health. Vaping (smoking electronic cigarettes) has become widespread in modern cities; moreover, this movement has even grown into a subculture. Some experts attribute such a rapid and massive spread of this type of smoking to the ban on tobacco smoking in public places in some countries.

It is worth noting that the legislative prohibitions apply exclusively to the use of tobacco (in all its forms) in public places, but the use of nicotine itself continues to be ignored by the authorities. When opening his own vape shop, an entrepreneur must understand that this is not a simple store selling electronic devices for smoking and related consumables. Vape shops have become analogues of hookah shops: in addition to the outlets themselves, most of these stores have lounge spaces where the target audience can relax, try new flavors of smoking liquids, and just have a good time in the company of their like-minded people. It is not uncommon for vape shops to turn into an analogue of a cafe: the administration of such establishments offers their customers drinks, food and other attributes of catering places. However, do not forget that vaping is a fashionable, subcultural trend, and fashion, as we all know, tends to change and pass quickly.

The main services provided in the vape shop

Sale of devices for vaping
Sale of consumables
Sale of accessories

Below in the article, the stages of opening your own vape shop will be described step by step.

Organizational and legal form

To open your own vape shop, you can choose to create a legal entity in the form of a private entrepreneur or a limited liability company. Do not forget that when opening a legal entity in the form of a private (individual entrepreneur), all the risks associated with doing business are borne by the owner of the business. When opening a legal entity in the form of an LLC, the responsibility, in accordance with the current legislation, lies with the general director of the enterprise, as well as the chief accountant of the company. Do not forget that the form of taxation also depends on the type of the chosen legal form of the company. Opening an LLC will allow you to easily sell a share in your business, as well as attract partners. After choosing the organizational and legal form, it is necessary to proceed to the selection and registration of the cash register customer service system.

Premises for rent

When choosing a space to open your own vape shop, you need to carefully analyze the competitive environment. Due to the fact that the assortment of such stores is relatively the same, before concluding a lease agreement, you should make sure that there are no competitors in the location you have chosen. To organize a small store selling electronic smoking devices, an area of 50 sq.m. company of their like-minded people and try the product you just bought. You also need to make sure that your target audience is present in the location you have chosen. Considering that this phenomenon (vaping) is of a subcultural nature, one should pay attention to locations near large higher educational institutions, fashionable shopping centers, etc.

Repair and design of the premises

The cost of the initial renovation and design of the premises depends on the concept of your business. An entrepreneur should pay attention to the fact that he opens not just a store selling smoking equipment - he opens a kind of space (space) designed to pass the time of customers. It is not worth saving on the repair and design of the premises, since it is the design of the premises that will be one of the key competitive advantages of your business. Modern vape shops have become more and more like hookahs, but if the latter is dominated by an oriental interior, then vapers prefer high-tech style or classic English design.

Necessary equipment

Opening your own vape shop requires the following set of equipment, the most expensive of which is, of course, furniture designed to make your customers feel comfortable in your shop. Below is an approximate set of equipment required for the initial purchase.

equipment identification	Quantity	Cost of 1 unit, $	Total position value
Rack	5	100	500	Counter in the form of a bar counter	1	500	500	Sofa for a recreation area	4	300	1 200	Table for a recreation area	4	200	800	Television	1	400	400	Game console	1	500	500	Cash service system	1	600	600	Total			4 500

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Marketing plan

One of the key factors for the success of your own vape shop is a marketing campaign, the purpose of which is to convey to the target audience the competitive advantages of your establishment (price policy, assortment, service, etc.). Printing of printing products, which will be distributed near your store, promotion on the Internet (website, social networks) and, of course, the external design of your store, will help you achieve your goals, which is definitely not worth saving on.

Direction of activity/costs per month in $	1 month	2 months	3 months	4 months	5 months	6 months	7 months	8 months	9 months	10 months	11 months	12 months
Signboard	700	0	0	0	0	0	0	0	0	0	0	0	Printing	150	150	150	150	150	150	150	150	150	150	150	150	Advertising in social networks, Instagram	250	250	250	250	250	250	250	250	250	250	250	250	Total advertising spend	1100	400	400	400	400	400	400	400	400	400	400	400

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Staff

To open a small vape shop, you need 4 salespeople working in 2/2 shifts. It would be superfluous to mention that specialists selling goods of this kind should not only understand the basics of smoking using electronic devices, but be real professionals in this business. When hiring, you need to make sure that your future staff is knowledgeable and professional, since only a specialist knowledgeable in this field can provide the level of service necessary to sell your product. It is assumed that the functions of the administrator of the institution will be performed by the entrepreneur himself.

Job title	Number of staff	Salary, month, $
Fixed payroll costs			Shop assistant	4	400	Total fixed payroll costs		1600

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Calendar plan for opening your vape shop

On average, it takes about 1 month to fully launch a small vape shop. The schedule for the preparatory work is schematically presented below.

Stage name	1 week	2 weeks	3 weeks	4 weeks
Registration of a legal entity, opening a current account					Conclusion of a lease agreement					Ordering the necessary equipment and furniture					Formation and ordering of the initial product range					Start of an advertising campaign					Repair and design of the premises					Installation of equipment and furniture					Recruitment					Start of activity

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Calculation of the investment attractiveness of the project

For calculations, we used the following parameters (in addition to those already mentioned above):

Rent of a 50 sq.m. room: $1,500 per month (rent includes utility bills)
Initial renovation and design of the premises: $50 per sq.m.
Working hours of the vape shop: 12 hours a day without breaks and days off (from 10.00 to 22.00)
Average cost per smoking set: $60
Average cost per e-liquid: $5
Average cost per accessory: $10
Trade margin for the entire range: 100%

When drawing up a business plan, the calculation of net profit did not include the costs associated with the payment of taxes.

In our financial model, we used the assumption that each client who bought a smoking kit would purchase 3 smoking liquids per month.

Maximum capacity of a vape shop (sale of smoking kits): 120 customers per month
Maximum capacity of a vape shop (selling mixtures for smoking): 360 customers per month

Planned capacity of the vape shop: 80% of the maximum capacity

Financial plan for project implementation

Revenue	1 month	2 months	3 months	4 months	5 months	6 months	7 months	8 months	9 months	10 months	11 months	12 months	2 year	3 year
Sale of smoking kits															Number of clients		30	36	43	52	62	75	90	100	100	100	100	800	800	Revenue from the sale of smoking kits		3 600	4 320	5 184	6 221	7 465	8 958	10 750	12 000	12 000	12 000	12 000	80 000	80 000	Sale of liquids for smoking															Number of clients		90	108	130	156	187	224	269	300	300	300	300	2 400	2 400	Revenue from sales of e-liquids		900	1 080	1 296	1 555	1 866	2 239	2 687	3 000	3 000	3 000	3 000	24 000	24 000	Sale of accessories															Number of clients		50	60	72	86	104	124	149	179	180	180	180	2 160	2 160	Revenue from the sale of accessories		1 000	1 200	1 440	1 728	2 074	2 488	2 986	3 583	3 600	3 600	3 600	43 200	43 200	Total revenue	0	5 500	6 600	7 920	9 504	11 405	13 686	16 423	18 583	18 600	18 600	18 600	147 200	147 200	Expenses															Rent	1 500	1 500	1 500	1 500	1 500	1 500	1 500	1 500	1 500	1 500	1 500	1 500	18 000	18 000	Licensing	300														Initial renovation and interior design	2 500														Current renovation of the premises							150	150	150	150	150	150	1800	1800	Production cost		2 750	3 300	3 960	4 752	5 702	6 843	8 211	9 292	9 300	9 300	9 300	73 600	73 600	Fixed part of the wage fund		1 600	1 600	1 600	1 600	1 600	1 600	1 600	1 600	1 600	1 600	1 600	19200	19200	Marketing	1 100	400	400	400	400	400	400	400	400	400	400	400	4800	4800	other expenses		150	150	150	150	150	150	150	150	150	150	150	1800	1800	Total expenses	5 400	6 400	6 950	7 610	8 402	9 352	10 643	12 011	13 092	13 100	13 100	13 100	119 200	119 200	Financial results	-5 400	-900	-350	310	1 102	2 052	3 043	4 411	5 492	5 500	5 500	5 500	28 000	28 000	Equipment	4 500														Formation of the initial product range	5000														Net cash flow	-14 900	-900	-350	310	1 102	2 052	3 043	4 411	5 492	5 500	5 500	5 500	28 000	28 000	Need for investment	16 150

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Average business margin after reaching planned capacity: 29.5%

It should be noted that the calculations do not take into account such items as depreciation, as well as all costs associated with the taxation of the enterprise.

Graphical representation of the dynamics of revenue and net profit by months in the first year of the project