Start a Used Bookstore

Despite the rise of e-readers and giant online book sellers, used bookstores remain popular. They are a place where people can gather, spend as much time as they like browsing and discuss novels old and new. Yet starting a used bookstore, or any other small business, is a long process that is filled with risk, reward, frustration, joy and much more. As an owner you will have to make many decisions regarding risk, the type of store you want to operate, your inventory and how you will attract customers.

Steps

Part 1 of 4: Calculating Your Risks and Rewards

1. Reflect on whether starting your own used bookstore is for you. Running and owning your own business can be difficult. It involves dedication and long hours, particularly at the beginning. Are you prepared for this? To find out, ask yourself the following questions.
   • Are you prepared to take risks? You will be your own boss are you prepared to make difficult decisions?
   • Are you independent? Many decisions will need to be made on your own without the help of others.
   • Are you creative? Will you be able to market your bookstore in creative ways that draw people in?
   • How is your social network? Do you know people who can advise you when you start and grow your business?
2. Research your market. To run a successful used bookstore you need to understand your market. This includes information about your industry, your customers and your competitors. By researching these variables before opening your store you will put yourself in a good position to succeed.
   • To get started with market research check out any information provided by government sources. You can examine a specific market by looking at data from the census, statistics from U.S. businesses, small business research and statistics, amongst other sources. Look for markets that fit the bookstore you are thinking about opening.
   • Find any business specific market research through trade groups, academic institutions and other third parties. A good source for this is the American Booksellers Association.
   • Think about an international angle. Are you willing to advertise and ship abroad?
3. Use your market research to help select a location. This is perhaps the most important decision you will make as you start your used book store. It is vital that you have done market research to identify promising areas. It is also very important to check out potential spots, and the neighborhoods that surround them, in person.
   • It is important that your location matches the type of store you envision yourself owning. You do not want a used bookstore in an area known for selling sporting goods.
   • Look for competition. How many other used book stores are in the area? Do the other businesses around you complement your business or work against you.
   • Is the area safe? What is the crime rate? You do not want to worry about break-ins or customers feeling unsafe.
   • Big or small? Either way, it's best to have a place that you can grow into. If your business expands you will not want to relocate. A medium book store is about 3,700 square feet.
4. Keep the benefits in mind. Owning your own used bookstore can be a very fulfilling enterprise despite the risks and difficulties associated with start-ups. It offers flexibility, independence and it gives you the power to run things the way you want to. Also, while you probably will not become rich it can be a way to earn a good living. If this appeals to you, and you are prepared to put in the work, a used bookstore may be for you!

Part 2 of 4: Making Decisions About Your Bookstore

1. Decide if you want to open an exclusively online used bookstore. There is a strong case to be made for selling used books exclusively online. An online store has fewer start-up costs than a physical store, you can reach a huge global audience, and website design will allow you to create your own look and feel. While there are many positives to an online store, you need to be mindful of frustrations for customers as well.
   • On the positive side customers enjoy saving time, saving fuel, saving energy, the ability to compare prices easily, the lack of lines and that online shopping is easily searchable.
   • On the negative side online shoppers cannot personally check out their item and they do not get a sense of instant satisfaction after their purchase. Lack of interaction can be a big problem, especially in the used book business.
2. Build your online store. To Start an Online Business is actually rather simple. After registering your business with the state government, register for a domain name. This will be the name of your website, so choose carefully. Next find a web hosting service that will put your website online. Finally you will have to design your website and choose a way for your customers to pay. There are many convenient options including PayPal.
3. Think about a traditional 'brick and mortar' bookstore. This provides a physical presence where customers can come and browse the stacks. The 'brick and mortar' store is great option if you crave contact with people of a like mind and want to set up an environment where people come off the street to visit your store. However, just like an online store a traditional store also has its negatives.
   • The traditional bookstore has significant overhead expenses that will cut into potential profits. The biggest cost is the startup, where you will have to think about rent, taxes and other factors.
4. Register your business. If you decide that a traditional used bookstore is for you, you will first need to register your business' name with your state government. You will also need a tax identification number and will need to register for state and local taxes. Finally, you will need to obtain business licenses and permits.
   • Regulations vary from state to state, so begin with an internet search for business regulations in your state.
5. Combine the two options. The debate between an online store and a traditional store is not mutually exclusive. It is possible to do business both ways! If you decide to establish a traditional used bookstore you can design your own website and sell online to reach a global audience. Alternatively, you can start with an online store and expand into a traditional store once you establish a customer base.
   • Remember you can sell through auctions on Ebay, new and used book sales via Amazon, Barnes & Noble Booksellers, ABE, Biblio and more.

Part 3 of 4: Knowing Your Product

1. Become knowledgable. You can start by attend seminars given at book fairs, which take place all over the world. There you can learn about rare books, what is popular and what to expect from customers. It will also help you build a network and gain some hands on experience in book dealing.
   • In addition you need to understand condition, print issue, book terminology and what makes books rare or unusual.
   • Research can be done by reading magazines dedicated to books and rare books.
   • You may also consider visiting internet sites that explore the buying, selling and collecting process.
2. Write a Business Plan for a Small Business. Once you have decided what type of store you want to open put an action plan in place. Your business plan should forecast 3-5 years into the future. It should include several parts that can be shown to potential investors. It will also provide a useful reference guide for yourself. You should include the following.
   • An executive summary that summarizes the document.
   • A description of your company.
   • Analysis of the market.
   • Organization of the store.
   • Information on what you will sell.
   • Your intentions for marketing and sales.
   • Your financial projections.
   • For additional information, you can check out Write a Business Plan.
3. Acquire books to sell and always remember your inventory is your biggest investment. The acquisition of the right books comes from a wide variety of sources. Your book scouting legwork is mainly responsible for the inventory you find, although some will come to you from people you meet who buy and sell books.
   • Hunt for rare books online that can be purchased for a good price.
   • Beware of acquiring low-quality books and/or books in poor condition. This will leave you with low-quality inventory.
   • Cheap books should be avoided. Only buy books you believe you can make money on.
4. Become a book scout. A bookseller's success largely will depend on his scouting skills. A book scout is a person who searches out books available for sale. These searches take him or her to yard sales, estate auctions, thrift stores, friends of the library events and anywhere else books are offered for sale.
5. Inventory your supply. A used bookstore is only a building with a business name without an inventory of books to sell. Try to print out a list of all of the books for customers and post it online if you have a website or online store.

Part 4 of 4: Attracting Customers

1. Market your new store. There are a number of strategies that you can employ to get the word out about your new store. Begin by developing a marketing plan. Determine how much you want to spend on marketing, how exactly you want to market and who you want to market to. Your marketing strategy should reflect the marketing research you did earlier.
   • You may want to create business cards or flyers to highlight your new business.
   • Develop an internet presence. Even if you are opening a traditional used bookstore you will want to have a website where people can learn about your store and what it offers.
   • Get your store on social media. Try facebook, twitter, google plus, and more.
   • Talk to friends who own their own business and find out how they market their stores.
2. Associate with fellow bibliophiles. It can be very advantageous to frequent book fairs. Get on book fair mailing lists to stay informed of where they are held. When one is in your area set up a booth. A booth will help get word of your store out to potential customers.
   • Do a quick internet search for upcoming book fairs in your region. Attend them all!
3. Deliver a special experience for your customers. Nothing is better than word of mouth. Do your absolute best to make your customer feel valued and appreciated. Go out of your way to cater to their demands. By doing this you stand a good chance of gaining a repeat customer and of that customer referring a friend.
   • Offer incentives for customers who come back.
   • A 'thank you' goes a long way!

Sources and Citations

See also

• Boost Sales Performance
• Negotiate an Offer
• Have Multiple Businesses Under One LLC
• Avoid Unionization of a Company
• Enjoy a Good Book
• Deal With Union Problems
• Unbind a Book
• Tell Better Stories
• Find Information on a Business That No Longer Exists
• Start a Story

Read more ...

What links here

• Get Rid of Old Books
• Read Uninteresting Books