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Need advice: Looking to open an electronic cigarette store in Newtown, PA (Aka Vape Shop)

Currently looking to open a vape shop dedicated to helping people quit smoking. For those who don't know what a "Vape Shop" is, it is a store dedicated to selling electronic cigarettes and accessories to those who want a safer alternative to smoking.
Bucks County has a very large e-cig market and I have complied months of local market research to find that there is a very high demand for this in the town of Newtown.The main problem is that I am trying to find the funds to take on this endeavor. As of now, it will take about $35,000-$40,000 to open doors with fully stocked shelves, payroll, necessities, etc. I have been down the SBA road and had no luck (Not surprised) and family funding/bootstraping isn't really an option.

All and all, I am seeking advise on ways to obtain the funds to open shop. Any input will be greatly appreciated!

Thank you.

Brad Tartaglia

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Answers (4)
No User Photo

Hey Brad,

Shoot me an email and maybe we can further discuss if you are still interested. I own multiple vape businesses in California. Tony@vaporall.com

Jul 31, 2015
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The BAF Group LLC
MD

Good luck, Brad. But don't ignore accountants. They are frequently in position to understand whether a client has money to invest, and frankly whether the client may even need to invest excess cash for tax or other reasons.

Jan 30, 2015
Brad Tartaglia
Live Concepts USA
Owner
Bucks County, PA

Don,

Thanks for your response! I currently own a production company and thats where 90% of my income sources from so I'd be willing to put up to 50%.

As far as plan goes, all laid down on paper so its just about getting in front of the right people at this point. I have been back and forth with my attorney but have never spoke with him about his clients/connections so I will be sure to do that next time we speak.

Thanks again for your response. I will be sure to use your advice as I move forward with this endeavor.

Jan 28, 2015
No User Photo
The BAF Group LLC
MD

There really are not many options out there. Family and friends are your best option, but if that is not open to you, there is relatively little that you can do. The amount you are requesting is low, but that is frankly part of the problem. No institutional lender is going to want to do something less than $100,000.

I would ask whether you have a business plan, completely detailing each and every phase of your intended business, along with each and every expenditure you plan to make. And one of the big things you should consider is your own level of experience. What have you done in the way of retail management? And how much money of your own are you prepared to bring to the table? If you have no experience, if you have no money of your own to invest, and you do not have a detailed business plan, you really have no hope of anyone investing in you, because all you really have is an idea.

On the other hand, if you have all of these things prepared, I might talk to CPAs and Attorneys to determine whether they have Any clients looking for this kind of investment opportunity. There are frequently investment clubs in most towns and cities, where a group of people get together and pull their money to make investments of this kind. Finally, I would just look for partner. I am not a fan of partnerships, because they frequently do not work out well for the long term. If you do take that route, be absolutely certain that you have a well planned and well organized partnership agreement. This means determining who is putting in what money in return for what stock or percentage of ownership, terms that permit one partner to buy out the other based on a prearranged formula, rights of survivorship in case one partner passes away, and other issues. This is something you do with an experienced attorney, and not something that you pull off the Internet.

Jan 28, 2015