Kiosks are open-air sales stands with a limited footprint. They’re usually found in shopping malls, shopping centers, and other similar locations. Mobile phone accessories, newspapers, sunglasses, tickets, household products, and other goods are sold at a kiosk. Small kiosk businesses usually prosper because of their exceptional accessibility. They’re commonly found in shopping centers, public spaces, and airports. Although a kiosk company is typically self-contained, kiosk owners may join larger kiosk networks to increase revenue.
You’ve identified the perfect business opportunity and are ready to move forward. It takes more than just filing paperwork with the government to start a company. Here are some tips to start your kiosk business.
1. Create a Business Plan
Every business owner must have a solid business plan before starting their venture. This will help the startup process go smoothly and even uncover potential setbacks before they start. Considerations include the startup and operating costs, defining your target market, payment collection methods, and what your kiosk name is going to be.
You can expect a startup cost of anywhere from $2,000-$10,000. This includes goods production or purchase, construction materials, legal fees, and leasing fees. Expect to pay around $800 per month after startup to cover rent and other ongoing costs.
You will also need to consider the space you’ll be operating in. Modular offices offer a way to stand apart from other kiosks. They also allow you to operate outdoors by protecting you from inclement weather.
2. Register Your Business
You will then need to set up your business as a legal entity. This is usually done at the state level and can be a time-consuming process. The sole proprietorship, partnership, limited liability company, and corporation are the most common business structures.
If your kiosk company is sued, forming a legal business group such as an LLC or corporation prevents you from being held personally liable.
For your LLC, you’ll need to choose a licensed agent. A free year of licensed agent services is normally included in LLC forming packages. You have the option of using a licensed agent or acting on your own.
3. Register for Taxes
Before you can start doing business, you’ll need to file for a number of state and federal taxes.
To file for taxes, you must first obtain an Employer Identification Number. It’s really simple and completely free! You can get your EIN for free by going to the IRS website, faxing it in, or mailing it in.
4. Get Your Business Its Own Bank Account
The use of dedicated business banking and credit accounts is needed for personal asset protection.
When you merge your personal and business accounts, your personal assets (such as your home, car, and other valuables) are at risk if your company is sued. In business law, this is known as piercing the corporate veil.
Learning how to build business credit will also help you get credit cards and other funding under your company’s name (rather than your own), lower interest rates, and raise credit lines, among other things.
5. Get Permits
To operate a kiosk company, you might need certain state permits and licenses. There may also be local licensing or administrative provisions. Consult your town, city, or county clerk’s office for more information on local licenses and permits.
6. Get Insurance
Insurance is required for your company to operate safely and legally. In the case of an insured loss, business insurance covers your company’s financial well-being.
There are a variety of insurance policies designed for various types of companies with various risks. If you’re not sure what kinds of risks your company could face, start with General Liability Insurance. This is the most popular type of coverage required by small businesses, so it’s a good place to start.
Workers’ Compensation Insurance is another important insurance policy that many companies need. If your company employs people, your state will likely require you to carry Workers’ Compensation Insurance.
After the basics are ironed out, you can then start the fun part. Before you open, you’ll want to define your brand, develop a website, devise a marketing strategy, and possibly hire extra help. Being an entrepreneur can be a rewarding experience if planned out thoroughly.