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21 Replies Last post: Oct 29, 2009 4:33 PM by Mayfair

Opening a Cigar Store...any ideas!

Jul 22, 2009 2:20 PM

Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009

The business is not actually up and running at this time. However, the business will be a fine cigar and cigar accesories only retail store, no cigarettes or chewing tobacco. We have determined that there is a "quite demand" for fine cigars, a niche market with opportunity to grow. We may be starting backwards, but we are going start as online and telephone only to avoid the startup costs of brick & mortar. We will take orders through our website as well as by telephone, and will deliver by hand within a certain radius and for free with certain purchases. Outside of our delivery area we will deliver by either usps or ups. We are in a location that does not have a dedicated cigar retailer, only cigarette shops that sell some cigars. These stores offer neither the selection nor the expertice and appreciation that the valleys cigar smokers deserve. This idea has been in our heads for several months, and the feedback we have received has been very positive. We have questioned local business owners, including resorts, restaraunts and golf courses, all of whom have expressed interest in allowing advertising/marketing at their locations, as well as personal interest. We have our tax id and name registered with the state (mt) and are in the process of getting our tobacco license. We have determined a web site provider & merchant services provider and are in the process of getting that rolling. Our targeted customers to start will be local, middle age, middle & upper class males, and tourists in season. Eventually, of course, we would like to expand this to include non-local customers, and introduce new demographics to the world of fine cigars. Our marketing plan will take advantage of social networking sites such as twitter & facebook, local advertising and heavy word-of-mouth and business networking with an emphasis on the difference between "smoking" and enjoying a fine, imported, hand-made cigar. Some of my concerns are how taxes work and making sure we dont break any laws.We do not have an accountant or attorney, and would like to avoid getting them if at all possible as all startup money is going into equipment, inventory and advertising. Any help or advice in these two areas would be greatly appreciated, as well general feedback on the idea. And yes, I am in the process of contacting my local SCORE branch for advise! Thanks
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Click to view drivetraffic's profile Mogul drivetraffic 28 posts since
Jul 22, 2009
1. Re: Opening a Cigar Store...any ideas! Jul 22, 2009 3:13 PM
I like this idea. I do think that starting online will keep your overhead costs down. At a minimum, I would hope you have an LLC to cover your personal liability, if you don't get an attorney. There are several online companies that can do this for you. You can get it done yourself quite easily also. You may also want to invest in a good accountant if nothing else, because there are laws they know that are useful. You can get a certain level of tax advice from your state's sales tax office. They should at least have the knowledge of what taxes you should be collecting.

The most important part of a businesses success is sales and marketing. We offer an ebook course to help small businesses market online regardless of their budget, so conventional ways you may know of an I'm sure some you don't. You can check it out at http://www.drivetrafficforless.com

To Your Business Success!
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
2. Re: Opening a Cigar Store...any ideas! Jul 22, 2009 3:54 PM
Thank you for your advice. We are actually going with an llc, and are in the process of getting that paperwork filed right now. Our state (mt) does not actually have sales tax, and that was one of my concerns as far as taxes. Do we have to charge sales tax to customers out of state? As far as an accountant, do you have any idea how much it costs to have someone make sure you "start on the right foot," so to speak, to make make sure we cover our bases when starting up?
Click to view TravlinTexan's profile Professional TravlinTexan 3 posts since
Jun 17, 2009
3. Re: Opening a Cigar Store...any ideas! Jul 22, 2009 3:56 PM
in response to: snccigars
Interested in a business partner? Eric 512-567-8362
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
4. Re: Opening a Cigar Store...any ideas! Jul 22, 2009 4:05 PM
Sorry, not looking for a partner right now, thanks for the offer though!
Click to view drivetraffic's profile Mogul drivetraffic 28 posts since
Jul 22, 2009
5. Re: Opening a Cigar Store...any ideas! Jul 22, 2009 4:22 PM
in response to: snccigars
I'm not a tax advisor, but to my knowledge I believe you don't have to charge taxes to customers in states that are outside of your physical location. As far as any advice on an accountant, I would look for referrals. Ask an associate who they use and if they're satisfied. I think that's the best way to go. If no one you know uses one, there's always the internet. Look for a local accountant that offers a free consultation. That way you can get an idea of what you need, and if you can't afford their fees you have an idea of the services that are out there.

Hope this helps!

CJP
J.P. Marketing, LLC
http://www.drivetrafficforless.com
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
6. Re: Opening a Cigar Store...any ideas! Jul 22, 2009 4:26 PM
in response to: drivetraffic
Great advice, thank you!
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
7. Re: Opening a Cigar Store...any ideas! Jul 23, 2009 12:27 PM
So what do you guys think, is this a business that can make it? Does anyone know how the cigar business in your local area is doing. Any feedback woudl be greatly appreciated. Thanks!
Click to view g2techgroup's profile Authority g2techgroup 15 posts since
Jul 21, 2009
8. Re: Opening a Cigar Store...any ideas! Jul 23, 2009 6:48 PM
My advice is check out the Cigar Aficionado magazine/website and see if you can establish some sort of partnership with them.That will provide great tips and advice if you haven't already checked it out.
My other advice is see about having the resorts, restaurants and golf courses display a small box of your cigars at cost that way they understand you are providing added value for them and you get free advertising. Or at the golf course do a contest, whoever gets the best round of each group gets a coupon/discount for a box of your cigars. Hope that helps.
Click to view daly43's profile Professional daly43 4 posts since
Jul 23, 2009
9. Re: Opening a Cigar Store...any ideas! Jul 24, 2009 8:02 AM
From my own experience I can say that the money you spend on a consultation with an accountant will be the best money you ever spend on your business, and will actually end up saving you more money in your first year than you spend on the accountant. Many accountants will do an initial short consultation for free and at that time you can ask them what they think you need and how much it will cost. My guess is that it will be less than $500.

I have an article here http://www.homebusinesswiz.com/2007/03/lawyer-accountant-candlestick-maker-does-your-small-business-really-need-them.html
that addresses this issue in more detail.

Hope this helps!

Daly43
http://www.homebusinesswiz.com
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
10. Re: Opening a Cigar Store...any ideas! Jul 24, 2009 12:43 PM
in response to: g2techgroup
Thank you all for your advice. g2tech, your marketing ideas are very good, thank you. We have considered having a small display humidor located at the golf courses and resorts with business cards to draw those customers to our website. Cigar aficianado is expensive, however, that is of course one of our goals, is to have them as part or our marketing/advertising network. We do have several celebrities that have vacation homes here, as well as several championship level golf courses, we are planning on heavily marketing to these crowds.
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
11. Re: Opening a Cigar Store...any ideas! Aug 19, 2009 3:38 PM
Just an update...We have officially received our state tobacco license! We are now looking at business cards, then a website. Obviously we are constantly building capital to build inventory. Along those lines, we have determined that we will open with an offering of roughly 100 different kinds (sizes, styles) of cigars representing about 20 different brands. We are looking to start selling by 01/01/10. I am still interested in any feedback you guys have, whether business related or cigar related. I would be more than happy to answer any general cigar questions for those interested in fine, handmade, imported cigars! Also always willing to take advice or constructive criticism. Thanks guys.
Click to view g2techgroup's profile Authority g2techgroup 15 posts since
Jul 21, 2009
12. Re: Opening a Cigar Store...any ideas! Aug 19, 2009 3:57 PM
in response to: snccigars
Great to hear!
We got our business cards from gotprint.net and are very happy with them. We build professional websites as well and then give you the tools to manage the content on your site. If you are interested and would like a quote, please let us know.
-Jeff Kingsbury
Click to view snccigars's profile Mogul snccigars 43 posts since
Jul 22, 2009
13. Re: Opening a Cigar Store...any ideas! Sep 29, 2009 6:20 PM
So does anyone in here actually smoke cigars? I would love to discuss anything cigar related! Any questions concerning cigars, brands, getting started, how to smoke/cut/light a cigar I would be more than happy to answer. Cigar smoking is back on the rise after its crash in the late 90's, its a great time to get into it, start a classy tradition that you can share with friends for many years!
Click to view DomainDiva's profile Mogul DomainDiva 1,731 posts since
Oct 10, 2007
14. Re: Opening a Cigar Store...any ideas! Sep 30, 2009 9:11 AM
in response to: snccigars
My accountant always brings two cigars when he comes to the house so he and hubby can go outside and smoke. Are you planning on having a smoking room with those private humidors as well, where collectors can store their cigars?

I don't smoke anything anymore but I always bring DH a box of cigars when I go to South America or other countries known for fine cigars.
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