Startup Costs: $10,000 - $50,000
Franchises Available? No
Online Operation? Yes
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.
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