Many traditional cigarette consumers are gradually shifting to electronic cigarettes, and this move has made the vaping business more lucrative. Since you want to start a vape business, it’ll help to have some industry knowledge. That way, you can make informed decisions about your new business and, in effect, encourage development. With that in mind, here are a few tips to know as you start a vape business.
1. Have a business plan.
You can’t just have a business without a clear vision of where you intend to take it and the process you’ll use to get there. It’s essential to draft a business plan that encapsulates your start-up capital budget, funding source, financial planning, operational business strategies, customer acquisition, legal framework, marketing strategies, and operational structure. Also, don’t forget to include all the required equipment in the business plan. This includes an oil filling machine for cartridges, vape cartridge tubes, and several other vaping instruments.
If you’re not sure where to start, sites like CoolJarz can help. They’re a subset of Earthwise Packaging, with about 30 years of experience offering pre-roll packaging solutions as well as innovative machines for the vaping industry. Their products are certified under the Consumer Product Safety Commission (CPSC)/ ASTM and include vape cartridge tubes, screw-top jars, herbal chew cans, pop-top bottles, plastic jars, labeling machines, and more.
2. Take out full coverage insurance.
It’s a good idea to take out comprehensive coverage from a trusted insurance company, especially since you’re selling goods that people ingest. However, it’s best to opt for a comprehensive insurance policy that should include general liability insurance, property insurance, car insurance, or commercial auto insurance.
Think about it. There are many reports of vape-related accidents—from serious lung injuries caused to battery explosions or other health-related issues. Having insurance will provide financial assistance from the lender when dealing with such situations, especially where lawsuits are involved. You certainly don’t want to handle a potential class-action suit on your own. That’s why it’s advisable to take out some type of insurance before your shop opens to the public.
It’s, however, understandable if you can’t subscribe to all insurance covers. Even though you may feel more secure that way, having multiple covers comes with paying many premiums, which may not be the best for your finances as a start-up business. So, assuming you’ve already subscribed to a comprehensive car insurance policy, amongst others. Having this type of coverage could be quite expensive because of its benefits. And so, you can drop it for a much less costly full coverage that can still help your small business—at least until you record substantive growth.
Before dropping your comprehensive car insurance, you could consider third party property or third party fire and theft insurance, liability coverage, and several others. Get further details on how to get this done on websites like Triple A Radio. You can also find information on the different kinds of insurance policies designed for all types of businesses and their unique risks. And aside from information on business insurance, the site also offers various interesting materials on how to grow your business.
3. Find a trustworthy supplier with quality products.
As mentioned earlier, it’s best to avoid lawsuits and other unfortunate incidents that could discredit your brand. If so, try to locate a reliable supplier as soon as you can. Suppliers play a crucial role in facilitating a business’s development. If you have a lousy supplier who isn’t licensed, doesn’t carry insurance, and is unprofessional in their dealings, you’ll likely receive defective raw materials or finished products.
What that means is, if you don’t perform due diligence on such supplies, you’ll be feeding customers with sub-standard goods that could essentially result in customer complaints, potential lawsuits, and complete customer dissatisfaction. Without your consumers, your business is null and void.
So yes, you need a great supplier, preferably one with industry knowledge that is well informed about your target market, accountability, production capabilities, and good reviews, and one who comes highly recommended.