Opening a Pawn Shop

This is the type of store that will offer their customers money for a variety of different items. The money that they offer is normally a fraction of what the item(s) are worth. The pawn shop has existed since Ancient Greece but they had different rules on how they operated them. Usually when you pawn an item, you will have one or two months to pay back the money owed to get your stuff back. You will also have an additional fee or charge. If you do not pay back what you borrowed in the specified time the pawnbroker will have the right to sell your item, but they cannot sell it before that date.

A top pawn shop may also take some of your items on consignment, which means that you will only get money if the item sells. The profits that are earned are normally split between the pawnbroker and the customer. You could offer to just sell your item to the pawn shop so the pawnbroker can sell the item without waiting and the customer does not have to worry about repaying a loan with an additional fee.

If you want to become a pawnbroker and open the best pawn shop you will generally need a license to start buying, lending, and selling items. You will also need to find you a shop in which to operate out of. If you do not get your license you may be penalized. If this is your first time to open a business it might help if you take some business courses at your local college to help you navigate the world of self employment and opening your first business. You may also want to read some books on appraising things because that will be a big part of running a pawn shop.

To get your license you will need to complete an application that will be supplied by the jurisdiction where you are opening your new shop. In some places you will need a tax ID or some type of proof that you also have a business license. You may also have to give them information about what type of business you are going to open, what hours it will be open, and where it will be located. You may also have to submit to a criminal background investigation. If you have a criminal record you may not be given a license.

Once you have your license and have your store you will need to make sure that you have shelves and display cabinets. Now you are ready to open the top pawn shop in the neighborhood.


Post time: 04-07-2017