For example, you might start a feminist bookstore, with fiction and nonfiction books focused on equality and women’s rights. You might want to be genre-specific, such as starting a bookstore devoted to comics and graphic novels, or a bookstore focused on children’s books.
If you live in a small town, look at the downtown or town square area. Courthouses and government offices also generate a lot of foot traffic, as well as people waiting for appointments who might pop in to kill some time.
You’ll need to show banks or other investors your business plan to get the funding necessary to get your bookstore off the ground. If you’ve never drafted a business plan before, that’s okay! There are references online that you can use. For example, the U. S. Small Business Association (SBA) has free online resources to help you. You might also consider taking a class on small business operations, either online or through a nearby community college.
For example, you can start a business page on Facebook and invite all your existing friends to “like” the page and share it with others. Use the page to provide news about the planning and opening of the store. You don’t need to hire a web developer to build your website. Use a simple program, such as Wix, to build a basic site that’s easy to navigate. Add pages for announcements, special events, and store policies.
It will likely be 4 to 6 months before your bookstore starts turning a profit. Make sure you can afford the lease on the property in the meantime. Another possibility is to start small with just a few shelves in an existing business. You also could buy or rent a truck or van and have a mobile store for a while
Typically if you don’t choose a specific business structure, you’ll be considered a sole proprietorship by default. The biggest danger with a sole proprietorship is that your business is not considered separate from your personal finances, and you can be held personally liable for all business debts. An LLC has few formalities but will shield you from personal liability. You don’t need any partners to form an LLC. While there are some legal requirements and fees, they are relatively minimal. A corporation would provide you with the most protection, but these are fairly complicated to set up and maintain. You’ll have regular reports to file and need several business partners to form a corporate board.
Depending on the business structure you chose, your state or federal government may require you to register your business name. Brainstorm to come up with a good name, and check trademark and business name databases to make sure it’s unique. You can get a small business advisor or attorney to help you with this.
For example, if you have a U. S. bookstore you can get an employer identification number (EIN) quickly and easily on the IRS’s website. You just have to provide some basic information about yourself and your business.
If you plan to have a café in your bookstore, you’ll need health and sanitation inspections. You may need additional permits if you plan to host live music or other events. Check with your local small business center or chamber of commerce to find out what licenses and permits are required.
If you don’t have a background as a successful small business owner, you may have difficulty getting funding from traditional sources, such as banks. Credit cards and personal loans are an option, but be careful about starting your business with too much debt. Crowdfunding on websites such as Indiegogo or Kickstarter can be a way to not only raise funds but also build support in your community. Someone who invests even a small amount of money to open your store will be likely to shop there.
For example, in the U. S. you can join the American Booksellers Association (ABA) as a provisional member before your bookstore even opens. The ABA has a digital kit with information on how to open a bookstore.
If it’s in your budget, consider hiring a local carpenter or craftsman to custom build your shelves and fixtures. Potential customers will appreciate that you provided work to local professionals, and your fixtures will be of consistent quality. You may want to work with a professional retail designer to create a style and vision for your store. Even if you’re on a shoestring budget, your store should be a welcoming and comfortable place for customers to visit.
Talk to other small business owners, especially booksellers, and find out what system they use. Ask them what they like and don’t like about their system, and whether they would recommend it.
Find people who have retail experience and will provide good customer service. Knowledgeable, conscientious employees will set your store apart and keep readers coming back.
Typically you will have to pay up-front for your initial inventory. You don’t want to start with a lot of back stock since you can’t predict what will sell.
For example, you might add a small café or wine bar. Food and drink typically has a higher profit margin and will help support your operation. Selling branded coffee mugs, t-shirts, and hoodies can help you make money as well as promote your store.
Start planning your grand opening 2 to 3 months before the date so everything will run smoothly. Send out press releases to local newspapers and TV news outlets. You also want to send invitations to any influential book bloggers based nearby. If there are any relatively well-known authors nearby, invite them to the grand opening or arrange for a book signing.
Open mics and writer nights are another good way to build community support for your store.
Schools offer another opportunity for partnership. For example, you might partner with a local school and provide a discount for parents who buy books at your bookstore to fulfill their child’s summer reading requirements. Provide gift cards as an incentive for events and charity drives.
Keep your main website up-to-date. Whenever you have events or host an author, take plenty of pictures and post them on your website as well as social media. Encourage regular customers to contribute book reviews and recommendations.
For example, you may run a promotion where the store donates a book to needy children for every purchase in your store above a certain amount. Provide opportunities and encourage your employees to volunteer for local charity events and nonprofits. You may even be able to tie this into your niche. For example, if you’ve opened a feminist bookstore, you could coordinate efforts with a women’s rights organization.
