If you want to sell fireworks to the general public, you would need to open a consumer fireworks store. And because of the dangers involved, we’ll start with one of the most important parts of the process. Find out what permits and licensing requirements are in effect in the area where you want to open a store.
Some state laws may limit your ability to sell certain types of fireworks. Other states, such as Texas, Louisiana, and Oklahoma, don’t allow fireworks tent business sales as part of their state laws.
- READ MORE: How to Open a Retail Store
The Fireworks Industry in 2022
As in many other industries post-pandemic 2022, there is a supply shortage. And it is driving up the price of fireworks that are available.
Admittedly, fireworks can be dangerous if improperly used, this means taking measures to protect your assets. Business people who are selling fireworks use the Limited Liability Companies (LLC) framework to protect their personal assets, keeping them separate from the business.
Why Should You Start Your Own Fireworks Business?
Why should you start a small business selling fireworks?
- You’ve always wanted to start your own fireworks business because you have always loved everything about fireworks.
- You want to work in a seasonal or specialty business because it’s a good fit with your personal life.
- You’ve kept up to date on fireworks technology and know what’s popular in the industry. In other words, you’re pyrotechnically minded and know what customers want.
- You’re savvy about zoning laws and necessary permits required to start and operate a fireworks business tent, stand or store.
- You already have a location for the business and selling fireworks is an approved use there.
- You’ve worked hard at various small businesses but you want to work for yourself and make more money.
How to Sell Fireworks in 2022
First, as previously stated, do your research before you launch a business. What type of fireworks can you offer for sale, according to local and state laws?
Second, choose what type of fireworks business you’ll start. Will it be a fireworks tent business or a firework stand site? Or will you open a year-round store?
The tent or stand business setup is typically seasonal, in fact, many only operate for a few weeks before July 4. If you want to operate year-round, instead of solely targeting July, you may want a brick-and-mortar location.
- READ MORE: Should You Open a Pop-Up Shop?
Here are tips for launching your fireworks sale business:
1. Research state and local laws to learn about any restrictions on what you can sell in the industry. You can also contact your local fire personnel, who can be great resources, most likely up to date on requirements and licenses.
2. Choose the type of business you would run, seasonal, year-round, online, or a combination.
3. Register your business in your state. Get an EIN (Employer Identification Number) so you can collect sales tax and properly report federal taxes.
4. Open a Business Bank Account and get a business credit card.
5. Develop a Business Plan and budget. If you’re going to operate seasonally, your budget is ultra important – you want to sell nearly all the stock you purchase.
6. No matter which type of business you opt to run, the location is highly important. Often a fireworks business can relatively easily get state fireworks permits but may be denied local permits. Your business may be required to locate just out of a city. If you expect to make money, you’ll need to be in a great place on a heavily-traveled route.
7. Establish a website and social media presence. Make your pages a success by creating colorful images and videos.
8. If you’re operating a store, will you offer delivery? What permits may you need to carry products for delivery? What permits do you need to ship fireworks? Do you want to focus on online sales? Do you need a resale certificate?
9. Take care of your insurance needs. You’ll need general liability insurance. If you add employees, you’ll also need workers’ compensation insurance. If you have a permanent location, you’ll need commercial business insurance. After the purchase of inventory, insurance is one of the highest costs.
10. Purchase inventory. As stated, this will be one of your highest costs. However, if your tent, stand, or location gets a reputation for being “out of the best stuff” your customer traffic will slow.
11. When do you need to hire employees? This should be part of your business plan. If you do hire employees, what will their starting pay rate be?
12. Plan your big opening day. Make sure all the various aspects of that are covered, such as the announcement on your website page and social media pages. Contact representatives from local media and invite them to your event for some free advertising.
What Is a Fireworks Tent Business? What is a Fireworks stand?
The business operates either out of a tent or a stand. Neither is a permanent structure. Both are used for selling fireworks.
An entrepreneur can buy or rent a firework tent, or stand. There are also a couple of franchises to consider, such as Powder Monkey Fireworks tent business and Phantom Fireworks which operates a fireworks sale store for wholesale fireworks. There are also other retailers that offer similar products.
Of course, anyone shipping fireworks across state lines must abide by the destination state’s laws, or risk criminal charges.
- READ MORE: How to Write a Business Plan
How Much Does It Cost to Start a Fireworks Stand?
You’ll pay the most for inventory. If you’re running a fireworks tent business or firework stand, you’ll also need to pay for security – your location won’t be secure and you’ll need to hire security to watch the stock when you’re not there.
Here are other costs to consider:
- Licensing and permits
- Insurance
- Point of sale system (best if linked to inventory)
- Create signs and lighting
The size of the business will have an effect on your costs. Here’s are some estimates:
- Small tent or stand – Start-up costs range from $5,000 to $7,000
- Medium tent or stand – $12,000 to $20,000
- Large tent or stand – $20,000 to $50,000
- Year-round store – Estimates are about $50,000 to maintain stock.
Is a Fireworks Store Profitable?
Even considering the cost of purchasing wholesale fireworks to stock your business, you should make money with every sale. It’s up to you to create the successful business model that best fits your location and experience level.
A strictly seasonal fireworks business should earn from $20,000 to $50,000, after state and federal taxes. A year-round business should clear at least $50,000. Most businesses are augmenting their sale structure to add services by supplying special events. For example, the business provides fireworks that support a special event, such as a gender reveal announcement (pink or blue fireworks), a retirement, a graduation, or a sports event.
READ MORE:
- How to Open a Retail Store
- Should You Open a Pop-Up Shop?
- How to Write a Business Plan
- Best Fourth of July Decorations for Your Business in 2022
Image: Envato Elements
