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Pawnbroker

About Startup Costs

The startup costs provided in this database include an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup costs. Your investment will vary based on factors such as equipment, transportation, licensing and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.

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Business At A Glance

Pawnbroker

Startup Costs: $10,000 - $50,000

About

Franchises Available? No
Online Operation? Yes

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Use your negotiating skills by opening up a pawn shop and bringing in second-hand goods.

Business Overview

Pawnbrokers sometimes get a bad rap, and unfortunately it only takes a few bad apples dealing in stolen merchandise to give the industry a bad name for all operators of pawnshops. However, like any business venture, eventually the bad business operators will disappear and the good operators will flourish. Starting a pawnshop business is a good choice as a business start-up for a few reasons, such as no special business skill requirements, relatively low initial investment, and excellent profit potential. Furthermore, utilizing used product pricing or value guides such as the Blue Book take away any guesswork in terms of the wholesale and retail value of products. The key to success for operating and profiting from a pawnbroker business is to keep all transactions legal, establish the business in the right location, deal only in up-to-date merchandise that has real value, and always practice good negotiation skills.