How to Open a Bookstore

For the last two years, it seems we’ve been hearing the same old story - another beloved bookstore being closed down in the path of the pandemic. 

However, lockdown may have been more beneficial to the bookstore industry than initially imagined. Since over 200 million print books were sold in 2020 despite bricks-and-mortar bookshops being closed for much of the year, being limited in lockdown actually saw the largest collection of us starting to fall back in love with literature since 2012 [1].

With hospitality businesses reopening amidst these new trends, there’s no better time to become part of the story. So we’ve compiled a list of some textbook tips on how to start a book shop that’s top of the shelf.

Read into the industry

Before you start a business, it's crucial to research the industry. You need to know the ins and outs of how bookstores operate, who your target market is, what book lovers want to read, and what new authors are gaining buzz. This knowledge will help you make decisions about your store's inventory and marketing strategies down the line.

Write up a business plan

Once upon a time, researching alone was enough to open a book store successfully, however, with the current market holding so much competition, it’s crucial to create a bookstore business plan to ensure your business stays buoyant over time. Here, you should outline your business goals, budget, and marketing strategy.

There are some questions you definitely want to consider:

How much does it cost to open a bookstore? 

If you want to understand how to start a second-hand bookstore, you must consider your costs carefully. Bookstore startup costs vary considerably, depending on whether your store will be accessed through the web or a physical location. If you opt-out of selling online, you'll need a venue with utilities and insurance, as well as a larger initial inventory.

If you've got reservations about reselling pre-loved literature, don't judge a book by its cover. Understanding how to open a second-hand bookshop can greatly lower your bookstore’s inventory costs. The only initial investment you'll make is your inventory, which you can adjust to fit your budget. While some entrepreneurs invest thousands, others start from their own shelves.

If you're thinking of using an online bookselling platform for your store, bear in mind that you'll be charged selling and/or listing fees. However, most selling sites offer the option to have the charges deducted from your sales, as an alternative to paying upfront. So although taking these costs out of your sales figures might cost you more money overall, it can help keep your business afloat if you're starting on a tight budget.

What can you charge? 

The cost of secondhand books varies significantly from store to store, depending on what type of books you want to sell. You can pick up a variety of publications for a modest price with delivery included, on sites like eBay and Amazon; if you're buying rare books, the cost can be in the thousands.

For second-hand stores, offering one-third of your books' current rate allows you to make money while still offering excellent value. In some cases, you may want to consider going lower, as this can attract customers and increase the likelihood of them returning in the future.

What should you call your business? 

If you want to know how to start a bookstore, one of the most important things to consider is your company name. Selecting the proper business name may be difficult, but it's essential. Come up with several different names and get input on which one is best for your bookshop. If you operate a sole proprietorship, you might want to consider using your name as the business name.

Once you've selected a company name, it's important to check and make sure that it’s available in your area. You can do this by visiting your government website. Most municipalities have an online database where you can search for registered businesses by keyword or name.

You should also check for any potential trademark issues. If you find that your desired name is already in use, you might have to go back to the drawing board.

How can your bookstore be profitable? 

The first and most important step in establishing a bookstore is to figure out how to gain a healthy profit margin.

If you're familiar with out-of-print and rare books, you may generate extra cash by providing book evaluations. You can also increase your income by selling book-related items in addition to your used books.

Secure the (book)bag

Opening a small business can be expensive, so it's important to secure funding upfront. You may want to consider applying for a Small Business Administration loan or looking into local grants and incentives available to bookstore owners.

Get into your inventory

Once you have your business plan in place, it's time to start stocking your store. Make a list of the genres and authors you want to carry, as well as any specific titles or editions you would like to have in stock. You can find books at library sales, online retailers, and directly from publishers or book wholesalers.

If you're starting an online bookshop, there are a few things to consider when building your inventory. First, you'll need to decide whether you want to sell new or used books

Location

You want your customers to get lost in your literature, not on the way to your store.

If you do go for a brick-and-mortar bookshop, the old adage "location, location, location" has never been more true.

You want a space that's visible and accessible to foot traffic, with ample parking and good signage.

If you can find a spot near other independent businesses, that's even better.

Register for taxes 

When it comes to starting a bookstore, you need to register for taxes before running your business. You can apply easily on hmrc.gov.uk and they will provide you with a tax reference number that you can use on all of your business documents free of charge.

Open a business bank account 

Once you're registered for taxes, the next step is to open a business bank account. This will help keep your personal and business finances separate and make it easier to track expenses and income. Most banks offer free online banking and chequing accounts to small businesses.

Set up shop

Now that everything is in place, it's time to open your doors to the public! Promote your grand opening through social media, local news outlets, and word-of-mouth. Make sure you have a solid plan in place for marketing and selling books, so you can hit the ground running.

Page-turning promo

Before opening day, it's important to generate some excitement about your bookshop.

You can do this by creating a social media page, setting up a website, and sending out press releases to local newspapers and magazines.

Holding competitions and distributing flyers before your launch, leaves customers on a cliffhanger and encourages them to walk in, or check out your website.

Offline, you can promote your bookshop by setting up a table at local literary events or partnering with other businesses in your area. If you have the financial resources, purchasing advertising space in local publications can be a great way to reach your target market.

Read your business like a book, with an award-winning EPOS system

Epos Now offers state-of-the-art EPOS systems for businesses in retail and hospitality. Designed to work as a complete business management tool, our systems let you control all vital aspects of your company from one cloud-based system.

Receive detailed analysis on the areas that matter to your business:

• Review profitability reports based on individual product performance, trending items, best and worst sellers, and employee sales
• Access multi-award-winning inventory management systems that sync online sales and in-person sales for the most up-to-date stock levels
• Automate stock purchasing so you never miss a sales opportunity
• Create and send invoices using simple templates and a built-in VAT calculator
• Customer management systems that save customer contact details and shopping preferences for more targeted marketing. 
• Integrate with the business automation apps that are right for your business

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