A Pawn Shop is considered a financial institution and its
main activity is loaning money to people who offer an acceptable
item as a collateral. The shop normally earn its revenues from
the interest that it collects from individual borrowers and also
on profits from sales of unclaimed collaterals.
For your permits and licenses, you can inquire about the
requirements at your town hall. Since Pawn Shops store pawned
items in their premises during the contract period, it is
usually required to post a "bond" as a protection to
its customers and also yourself.
This is one business which require a big start-up capital
even if you operate it from your home. It is virtually
impossible to start the business with nothing.
People also go to pawn shops whom they have confidence and
trust that their pawned items will be safe. Meaning, the shop
must project an image of financial stability. It will be
difficult to start this business without the money.
Thank you for being part of Power HomeBiz Guides.
the PowerHomeBiz.com Guide:
Nach Maravilla is
the Publisher of Power Homebiz Guides. He has over thirty years
experience in sales and marketing of various products, which
covered as he jokingly describes, "from toothpicks to
airplanes" He also had extensive experience in
International trading and he always excelled in special promotional
ideas for retail outlets.
The opinions expressed in this column
are those of the author, not of PowerHomeBiz.com. Users should not treat the
Guide's response as legal, accounting, or professional advice as all answers
are intended to be general in nature. Such advice can only be properly given
by qualified professionals who are fully aware of a user's specific
geographical areas or circumstances, such as an attorney or accountant.