Is it possible to open a pawnshop on un. How to open a pawnshop and what you need for this

Pawn business all over the world is considered a profitable business. The profitability of such a business reaches 40 percent. And this is a very high indicator. The profitability of the pawnshop remains high and tends to increase when the banking system in the country weakens, production decreases. And the most interesting thing is that the country has a developed middle class. He is the main consumer of pawnshop services.

Lombard business: theory and practice

If you have a desire and a penchant for pawnshop business, then it’s worth doing this business. Burning out at a pawnshop is very difficult.

So, you decided to open a pawnshop? What do we have to do? Before starting your own business in a pawnshop business, you need to study the market in which you have to work, carefully familiarize yourself with the legislation governing the activities of pawnshops, and relevant by-laws. This includes regulatory documents, government regulations of the Russian Federation and instructions, rules and requirements.

Is it profitable to open a pawnshop?

Engaging in the pawnshop business is a profitable business, therefore the number of companies and individuals involved in it is constantly increasing. According to information received from government sources, the number of pawnshops in our country is increasing annually by at least 150 companies. This year was no exception. Therefore, when studying the market, you need to find out the number of companies that are engaged in pawn business in your city. How do they satisfy the needs of the population for such services?

You need to find a niche for yourself, that is, the direction in which you will be engaged. Will you specialize in household appliances or motor vehicles, will you deal exclusively with jewelry and gold or real estate - all this must be determined before the pawnshop opens. It should be borne in mind that a pawnshop, in fact, is a small bank lending to the population for a short, most often term. But unlike a bank, this credit institution deals only with loans and only against the security of movable or immovable property.

A pawnshop works only with the population. Therefore, in order not to go bankrupt and have a constant profit, the mortgaged property must be liquid. Simply put, it must be such that it can be quickly implemented. Choosing a specialization, this moment needs to be considered.

After you have studied the market, decided on a specialization, you can deal directly with the opening of a pawnshop.

Pawnshop Opening and Law

We have already discussed the legislation governing the activities of pawnshops. If before making a decision to open your own pawnshop business, you could only familiarize yourself with it, then after a positive decision is made, the legislation needs to be studied in detail.

Knowledge of laws and their strict observance is the key to successful activity in your chosen field. By the way, in the pawnshop business deviation from the requirements of the law is punishable by a fine. Moreover, fines amount to considerable amounts.

The basis of the pawnshop is Federal Law "On Pawnshops". Its number is 196. It entered into force on July 19, 2007. This law determines the status of a pawnshop as a commercial organization, the activity of which is specific. The law permits the issuance of short-term loans secured by personal property. The loan is valid for up to 1 year. During this period, the mortgaged property must be kept by the lender. It is forbidden to sell the pledged property before the expiration of the term.

Mortgaged property must be valued before applying for a loan. Mandatory execution of a loan agreement. This agreement shall indicate the validity period, property valuation, rate at which the loan is issued, the amount issued.

The security ticket is made in duplicate. The first is issued to the borrower, the second remains with the lender.

A pawnshop has the right to sell the pledged property only if the delay has exceeded one month. The mortgaged property in this case goes on open sale. But if its value exceeds the amount established by law (the law indicates an amount equal to 30,000 rubles), then the property is sold at auction, that is, at an open auction.

Pawnshops themselves are prohibited from trading. The pledge either goes to an open distribution network for sale, or you have to open an additional company, the task of which will be the sale of the pledged property.

Guided in their activities will have to and by order of a federal organization called RosFinMonitoring. This order was published on 3.08. 2010 under the number 203. It has a long name, so we won’t give it in full, we will only say that this order approves the Regulation that defines the requirements for the activities of pawnshops. This Regulation sets out the requirements for staff education and training, for operations with property and cash, how to combat money laundering, financing extremist organizations and terrorist groups. The regulation determines the training period for pawnshop employees, how and what should they be trained, as well as the frequency of staff retraining.

This order has the force of law. Failure to comply with its requirements may lead, at a minimum, to administrative liability, and malicious evasion of requirements - to the closure of the company. If a pawnshop is engaged in the issuance of loans secured by jewels, then its activity is subject to Order of the Ministry of Finance of the Russian Federation  numbered 68. It was published in 2001 on August 29th. This order approves the Instruction, which determines the procedure, accounting and reporting when working with precious metals and precious stones.

These are the main legislative documents, the requirements of which should be guided by a pawnshop in their activities.

The legislation of the Russian Federation determines that taxes are imposed on pawnshops on a common basis. In this case, the Tax Code determines in Article No. 149 that VAT is not levied on interest received by a pawnshop. It is levied on the storage of mortgaged property. It follows that the accounting report will have to be kept separately for the storage of collateral and for the receipt of interest from a loan.

Opening a pawnshop: step by step instructions

Choosing a place, registering a pawnshop

Having studied the legislative acts, we proceed to the registration of registration documents. But first, in the step-by-step instruction “How to open a pawnshop?”, It seems to us that it is better to determine the place where the pawnshop will be located. It is advisable to choose a place where it is always crowded. For example, on a busy street or in a public public institution. You need to come up with the name and advertising of your company. Advertising should be bright, but discreet, attractive.

It is best to register a pawnshop, as Russian practice shows, as a limited liability company. The necessary list of documents can always be obtained from the Tax Inspectorate. You can simply download them on the Internet at the appropriate site.

A license for a pawnshop is not issued.

After registration with the Tax Service, you must register with the nearest RosFinMonitoring department. This must be done within a month after receiving state registration. If you intend to work with jewelry, you will have to get up on a special account. Such registration is made in the Assay Chamber of the Russian Federation or in the departments of the Chamber. After registration, you will be given a certificate of assay supervision. Then you will have to check your laboratory balance. Further checks of the weights are carried out in the prescribed manner - once a year.

What do you need to open a pawnshop?

Registration is completed, the place is selected, now you can engage in hiring staff and determine what is needed to open a pawnshop. First, we give a list of equipment that a pawnshop with a wide specialization will need to work.

Necessarily, commercial equipment will be needed: display cases, racks that will be located in the trading floor, storage racks, racks (they are counters), a cash drawer (several units are possible), a safe, and an information panel.

Office equipment will be needed, including a computer with an Internet connection. To ensure the safety of the facility will have to install a metal door. The door should have a window and a bell. Naturally, the pawnshop should be equipped with a security system.

The pawnshop should also have special equipment for checking property pledged. For some types of property, it is better to use the services of third-party organizations, for example, to test the performance and assess the value of the car. But for checking and evaluating jewelry, equipment should be at hand. A set of such equipment includes laboratory scales, reagents and tools for checking jewelry.

Personnel for work in a pawnshop are selected depending on the type of activity, schedule and amount of work. But the composition of workers always includes a director, accountant, security personnel, appraisers (they are managers and sellers). You can select employees on your own, or you can contact the employment office or recruitment agency.

Opening a pawnshop is a rather specific type of business. You need to be well versed in the work of such institutions in order to be successful.

In this article we will consider all the nuances of such an event, as well as provide a detailed business plan.

Is it profitable to open it?

To the question of whether the discovery and further maintenance of the pawnshop is beneficial, there is no and cannot be a concrete answer. Here everything will depend on a number of factors: office location, advertising effectiveness, rent for premises  etc.

It is best to choose the most lively place with a lot of people for this undertaking. The best option for office placement is the city center, in the immediate vicinity of large shopping centers, shops, hypermarkets and other institutions with a high level of attendance.

However, this is not a guarantee that a new business will bring a stable income. The organization of a pawnshop should be taken seriously, carefully considering all the expenses, risks and the level of estimated income. In addition, you need to draw up a detailed business plan, paying particular attention to the economic part.

What documents and permissions are needed?

Any entrepreneurial activity requires the availability of relevant documentation, a number of regulations and permits. Opening a pawnshop is a very troublesome event, you need to be prepared for this from the very beginning.

The fact is that the legal aspects governing the work of a pawnshop are not the same in different regions of the country. Also, the list of necessary documents and certificates is not the same. It may vary depending on the type of pawnshop you are about to open. Most often, with a novice entrepreneur they require:

• permission to sell jewelry;
• certificate of assay supervision, in the case when you intend to issue loans secured by jewelry. To obtain it, you need to register in the assay chamber;
• all kinds of certificates, documentation for submission to the tax service;
• have to register with the financial monitoring service;
• documents confirming the accuracy of the laboratory balance;
• obtaining certificates for pawnshop employees, etc.

The list of necessary certificates, confirmations and permissions is quite impressive. Moreover, some certificates demonstrating the honesty and legality of the company will have to be submitted to the relevant authorities more than once: every month, six months, a year, etc.

Types of pawnshops

There are several types of pawnshops specializing in:

• adoption of various types of equipment as collateral;
• accepting pledged jewelry, jewelry, gold from the 500th test, other valuable metals. Jewelry pawnshop does not require the arrangement of an additional room for storage of products. However, it may take a long time to resolve the legal aspects and collect the necessary documentation;
• antique items, taken on a very good security. Here visitors bring paintings, awards, antique souvenirs and coins. Also, expensive clothes made of natural fur (mink, lynx, chinchilla, arctic fox, etc.) can be taken here. Such a pawnshop is a favorite place of many collectors;
• issuing a certain amount of money secured by a car. In order to open a car pawnshop, you will need additional parking space. However, the income from the work of such an institution can be quite good.

Step-by-step procedure for opening and running a business

To open a pawnshop from scratch, you need to carry out preliminary organizational work, which may include:

• Thorough Market Research. Lombard business in Russia is only gaining momentum. Therefore, in some regions of the country pawnshops can be found almost everywhere, while in others you can not find a single institution of this type. The reason is the lack of serious online players.
    Before making a decision on organizing a business, it is necessary to consider all possible risks, try to predict whether this project will be successful, whether such services are in demand in the city and the district, whether there is competition and how strong it is, etc.
• Type of institution. A pawnshop can be: jewelry, technical, automobile, antique, etc. It is necessary to determine the type of services offered, as well as the relevance of their provision.
• Preliminary cash investment calculations. At this stage, it is necessary to calculate the funds that will be necessary for registration, execution and collection of documents, the purchase of equipment, etc.
    In addition, you should not lose sight of the further monthly expenses for employee salaries, rental of premises or parking. Based on the amount of monthly investments, you can calculate the interest rate on loans that will be issued by the institution on the security of property.
• Choosing an institution. The main requirement here is high availability and visibility. It is best to place a pawnshop near busy streets, roads, shopping centers and other places with good traffic. A concise and memorable name, as well as a catchy and well-lit sign will do the trick.
• Registration of a legal entity. It is worth considering that the taxation principle of LLC or CJSC is general. The charter should clearly spell out the activities of the institution:
  • issuance of a short-term loan secured by movable property;
  • storage services for valuables;
  • provision of information services and advice.

  The name of the legal entity must certainly include the word “pawnshop”.

• Paperwork, obtaining certificates, permits and certificates. This is a very troublesome and difficult stage, requiring a lot of patience and attention, as well as time-consuming. To date, compulsory licensing of a pawnshop is not applicable. The list of required documents will largely depend on the type of institution, as well as on the area of \u200b\u200bits location.
• Design development, logo selection, as well as a number of other works aimed at creating a cozy atmosphere and presentable appearance of the institution.
• Equipment purchase. It all depends on the type of pawnshop, as well as on the personal preferences of its owner. However, it is hardly possible to do without:
  • trade equipment: showcases, racks, counters and racks, chairs for visitors, information boards and other;
  • office equipment: computer equipment, multifunction devices, telephone, Internet connection, etc .;
  • equipment to ensure the proper level of security: OPS system, surveillance cameras, reliable and durable metal doors, locks, etc.
  • special devices: scales with high accuracy, equipment for authenticating jewelry, etc.
• Need to work on internal documentation. This may include the preparation of a cash register, a magazine for briefing in the event of a fire, drafting employment contracts, as well as orders establishing interest rates and the value of precious metals and other products.
• Advertising. In order for people to know about your existence, you need to tell them about it. Signs and posters placed on the facade are quite relevant. Sometimes they resort to posting announcements or holding an action in honor of the opening.

Selection of premises, staff

Most often, the offices of such institutions are located in large business centers. However, if this is not a network of branches, but one single pawnshop, while its organizer does not have enough funds to pay rent, then you can choose a more economical option.

When choosing a room should take into account the type of pawnshop. For example, for an institution issuing a loan on the security of equipment or antiques, you need a separate room for storing things and accessories. A car pawnshop should be equipped with a parking lot for cars. This will require separate rental costs.

When the pawnshop is ready for work, it's time to hire staff.

After all, they will have to deal with jewelry products, all kinds of equipment, and even cars of various brands. It is important that the employee is well versed in this type of goods and be able to correctly assess their value.

In addition, the institution definitely can not do without cashiers, movers (in the case of work with bulky equipment) and sellers. A separate role is assigned to the pawnshop manager. True, sometimes its functions are undertaken by an appraiser.

Security questions

Before starting work, establishments need to make sure that safety is ensured at the proper level. After all, everyone knows that a pawnshop is the very place where not only money is stored, but also all kinds of valuables, jewelry, expensive antiques and much more. It is necessary to provide reliable protection against hacking..

Special attention should be paid to the presence of an alarm button and alarm. Perhaps cooperation with a security organization or independent hiring of guards.

The control over everything that happens in the institution, as well as maintaining order is ensured through the choice of software. This will help, among other things, to verify the honesty of the staff, to identify the fact of theft, etc.

How much does it cost and what will be the income?

Opening a pawnshop from scratch is troublesome and very costly. The cost of organizing a business will directly depend on the type of institution and the services it provides, on the location (city, region, region, etc.) and a number of other factors. The rent of a room in the center of a metropolis is many times higher than the same rent for an office in a small provincial town.

On average, it takes to open an institution from 1 to 1.8 million rubles. The period for which the business will fully pay off and begin to make a profit can be about 1-2 years. So, a small pawnshop after a 3-year period can make a profit of 100-150 thousand rubles.

The period from the opening day to the end of 6 months of the institution’s work is especially important. This period of time can be called critical: the funds for opening and developing a business have already been invested, but it has not yet reached a “plus”. In order to make a profit, you need to achieve high daily attendance: on average, from 30 to 50 people a day. Otherwise, the institution will continue to bring only losses. That is why, after six months from the date of opening, more than 30% of pawnshops simply close.

Interview with the owner of a network of pawnshops

On the video - a detailed story about the business associated with these institutions:

The worse the economic situation, the more popular are the services of pawnshops. So, now a pawnshop is a profitable business. In the article, we will consider how to open a pawnshop from scratch, what documents are needed for this, and how much money is needed.

How to open a pawnshop from scratch

By law, a pawnshop is a credit institution that issues loans secured by movable property. Often pawnshops have a specialization - for example, they accept only jewelry or cars, but there are also pawnshops of a wide profile. therefore first step  when starting a business - conducting market analysis and the choice of niche demanded in your city.

Second step  - calculation of expenses. It is necessary to lay funds in them for:

• Registration
• Equipment
• Monthly expenses
• Opening

Based on monthly expenses, you can calculate interest rate  loans that you will issue on the security of property.

Third step - determine the location of the pawnshop. A win-win option is a busy street or a popular shopping center. However, a pawnshop can also work successfully in a densely populated residential area - it is important to be accessible and visible.

Fourth step - come up with a catchy name and attractive design, order a bright sign.

Step Five - register a legal entity  at the tax office.

   Keep in mind that the name “pawnshop” must be present in the legal entity’s name, and the organization’s activity (issuing loans, storing valuables, consulting services) must be included in the charter.

Sixth step  and the most difficult thing when opening a pawnshop from scratch is obtaining permits, certificates and certificates. You need to register with the Federal Service for Financial Monitoring and the State Inspection of Assay Supervision of the Russian State Assay Chamber. You will also need title documents for the premises (lease or purchase and sale agreement) and a sanitary and epidemiological report with an attached list of the types of services performed / rendered. In addition, you must insure the things accepted as collateral in favor of the mortgagors.

   According to the Federal Law of August 8, 2001 No. 128-ФЗ “On Licensing of Certain Types of Activities”, licensing of the activities of pawnshops is not provided.

Seventh step - staff recruitment. The success of your business depends on the qualifications of your employees. If an employee gives money for fake jewelry, problems cannot be avoided.

How much does it cost to open a pawnshop

It is difficult to calculate the cost of opening a pawnshop. The amount of investment in this business depends primarily on the type of organization: for example, opening an automobile pawnshop will cost you the most. On average, the cost of opening a pawnshop in Russia is 1-1.5 million rubles.

You will have to spend a significant amount on rent / purchase of premises that still need to be equipped. You will need:

• Sheathe the room with a grill of special metal wire
• Set alarm, panic button and video surveillance
• Hang deposit storage racks

You must also buy:

• Several safes
• A computer
• a printer
• Cash machine
• Jewelery Electronic Scale
• Assay needles
• Touchstone
• Assay acids
• Reagent Tubes
• Ring gauges
• Lamps with white, ultraviolet and other types of lighting
• Detectors of precious metals and stones
• Stationery
• Office furniture

In addition, the majority of costs will be “eaten up” by obligatory payments:

• Employee salary
• Insurance
• Accounting
• Rent

Opening a pawnshop by law: requirements in 2017

The activities of pawnshops in Russia are regulated by many laws and regulations:

• No. 315-ФЗ dated December 1, 2007 “On Pawnshops”
• No. 197-ФЗ dated July 19, 2007 “On Amending Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law“ On Pawnshops ””
• No. 375-ФЗ dated December 21, 2013 “On Amending Certain Legislative Acts of the Russian Federation”
• No. 363-ФЗ dated December 21, 2013 “On Amending Certain Legislative Acts of the Russian Federation and Recognizing Void of Some Provisions of Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law“ On Consumer Credit (Loan) “”
• No. 353-ФЗ dated December 21, 2013 “On consumer credit (loan)”
• No. 151-ФЗ dated July 2, 2010 "On Microfinance Activities and Microfinance Organizations"
• No. 315-ФЗ dated December 1, 2007 “On Self-Regulatory Organizations”

Pawnshop taxation

According to Art. 346.12 of the Tax Code of the Russian Federation, pawnshops are not entitled to apply a simplified tax system.

In addition, paragraph 5, paragraph 3 of Art. 149 of the Tax Code of the Russian Federation establishes: income received in the form of interest on loans is not taxed, VAT is not taxed, and storage activities are subject to VAT. Therefore, the organization must maintain separate accounting.

Pawnshop reporting

Like all enterprises engaged in commercial activities, pawnshops are required to report on their activities to the state:

• To the Central Bank of the Russian Federation: once a quarter - on activities, monthly - on cash transactions, once a year - on the personal composition of governing bodies
• To Rosfinmonitoring: quarterly - FES-04 report, once a year - SDL internal report

How to open a pawnshop with less risk

If you are not ready to spend time and effort opening a pawnshop from scratch, consider buying a ready-made business or franchise.

Buying an existing pawnshop, you save time and money on obtaining permits, finding a room, hiring employees, concluding partnership agreements. This option is perfect for entrepreneurs with little experience - you do not have to build a company from scratch.

If you are not ready to manage the business yourself, want to work under a well-known brand and get support, buy a franchise. It is in the interests of the franchisor to teach you all the business wisdom and contribute to your success, which is especially important in the absence of entrepreneurial experience.

Pawnshop is a profitable business that requires significant investments at the opening stage. But with proper management, these costs will quickly pay off, and the profit will not be long in coming.

The problem of lack of financial resources is relevant at any time and in any country. However, during economic crises, she gets up especially sharply. It is faced by both enterprises and the population. And if a legal entity, possessing collateral, can apply to the bank for a loan, then the average citizen cannot count on a short-term loan. Especially if the funds are needed not to make a major purchase, but to meet basic needs. Here the idea arises to turn to a pawnshop, which can quickly provide the necessary amount for a short time.

The business idea of \u200b\u200bopening a pawnshop from scratch is very profitable and relevant for any country, regardless of development level. Pawnshops are especially in demand at the time of the weakening of the banking system, the reduction of production. In this business plan, we will consider all the subtleties of this business.

The amount of the initial investment is 4 017 860 rubles.

Break-even point is reached. in the third  month of work.

The payback period is from 12 months.

2. Description of the business, product or service

A pawnshop is essentially a lending institution. He gives loans secured by property that has a certain value: gold, digital appliances, household goods.

Pawnshops earn interest. A citizen brings his pledge and receives an amount for it (from 25% to 90% of the cost). The maximum payment period is 30 days. As for interest rates on loans, they vary from 4% to 25%.

The interest rate is set for each day of using the loan, including the day of the pledge and the day of repayment. For repurchases, re-pledges and partial repayments, the pawnshop provides a discount on the interest rate.

Consider the average interest rates for a standard pawnshop located in a million-plus city.

For loans secured by gold products:

The basic interest rate is 0.4% per day (146% per year).

The interest rate, taking into account the discount, depends on the amount of a one-time loan (the discount is provided upon redemption, re-pledging and partial repayment).

For loans secured by digital equipment and other household products:

For liens for 1 day:

The basic interest rate is 0.458% per day (167.170% per year).

Pawnshop working hours: daily from 10:00 to 22:00, seven days a week.

3. Description of the market

In order to serve the client efficiently, it is necessary to understand who exactly uses the services of pawnshops.

The target audience is middle-income people. As a rule, their money is enough for a normal life (otherwise there would be no collateral), but any unforeseen situation unsettle them. These are people who have fallen into a difficult life situation, but hoping to solve it in the near future. Customers pawn things, initially hoping to redeem them in the future.

Also, a significant percentage of visitors are young entrepreneurs who need capital to grow their business.

There is a correlation between the demand for pawnshop services and the economic situation in the country.

So during crises and lowering of the average standard of living, the population and business are increasingly starting to use loans secured by their own property. After the 2008 crisis, the number of pawnshops in Moscow doubled.

However, crisis periods are very dangerous for pawnshops. The population is rapidly becoming poorer and ceases to redeem pledged products. In pawnshops there is a glut of gold, which no one to sell.

4. Sales and marketing

5. Production plan

We outline the main stages of launching a pawnshop.

1. Business registration procedure

• registration with the Federal Tax Service;
• registration with the Federal Financial Monitoring Service;
• registration in the Assay Office;

2. The signing of a lease or purchase / sale of premises;

3. carrying out repair work;

4. installation of equipment, video surveillance systems, signs;

5. recruitment;

6. marketing activities, promotion.

registration

To register a business, the only acceptable legal form is the formation of a complete society, IP (individual entrepreneur) cannot be used. As a rule, pawnshops are registered as a limited liability company. Then you need to go to the tax office for registration. A specialist of this service will tell you what documents are needed for the legitimate activities of the established institution.

After completing the registration procedure, you must register with the Federal Service for Financial Monitoring within a month, then at the Instrument Chamber.

Insurance

Opening a pawnshop does not require a license. But items that you accept as collateral must be insured. According to the current legislation, the insurance procedure for each item accepted is carried out at the expense of the entrepreneur. In order not to insure each item separately, insurance is required for a certain amount, which will make it possible to cover debt obligations to the client.

Selection and preparation of premises

When choosing a place, be guided by points with a high level of patency or densely populated areas. You can rent a room in a multi-storey residential building on the ground floor, basements are permissible. Ensure compliance with fire safety rules and SES requirements.

From the preparation of the place, pay special attention to safety:

• installation of metal gratings;
• bulletproof glass on display cases;
• metal doors;
• security call button;
• setting an alarm.

Do not spend a lot of money on repairs and expensive furniture. A pawnshop is a place in which a needy person can quickly receive a certain amount of money, so elements of luxury are inappropriate.

The office should contain a sign with prices for all services provided, a place for a client to wait, a convenient working area for staff.

6. Organizational structure

First of all, you need to search for qualified specialists who will be engaged in customer consultation and the sale of your goods. The search for employees is best done through specialized portals, as they provide access to resumes, reviews and other useful information. You can limit yourself to bulletin boards (for example, Avito). You will also need a cleaning lady and an accountant, they can be searched both on paid sites and on free resources (groups in social networks).

The staff of the average pawnshop is small and has the following composition:

1. Head
2. Appraiser - 2 people;
3. Seller - 2 people;
4. Accountant;
5. Cleaning lady.

And the functions they perform must correspond to reality. Failure to comply with these rules leads to considerable fines.

• Accountant:  maintains records of financial transactions, inventory pawnshop property, compiles and analyzes calculations of costs and business revenues, maintains reports, prepares data on tax payments, and fulfills other management instructions.
• Appraiser:evaluates customers ’products, analyzes information to determine the value, prepares and reports on the valuation process, informs customers about the reasons for reducing the amount in the event of defects or for other reasons, monitors market offers for the goods being valued, draws up a product purchase and purchase agreement, provides it to the public information about pawnshop services, prices, procedure for paying a pledge.
• Seller:  informs customers about the assortment, features and defects of goods, draws up a sales procedure, keeps track of finances, completed transactions, transmits customer comments and wishes to management, monitors compliance with sanitary standards of the store, is responsible for the safety of pawnshop inventory, replenishes supplies.

7. Financial plan

Investments in the opening of a pawnshop are as follows:

Do not know how to open a pawnshop and what is needed for this? A step-by-step instruction with the advice of experienced owners will help a beginner understand what is needed to open such a project and what is its profitability.

• Features
• Choose the format of work
• Law for employees
• We make out documents
• registration
• Taxation
• Insurance
• We select a profitable room
• Equipment
• We accept staff

Features

Why are these establishments popular in the CIS countries? Unfortunately, in all countries of the post-Soviet space there is a problem of a shortage of money among the population. Work does not cover needs, and people are afraid to get in touch with loans.

The average profitability of pawn points in the CIS is 40%, often owners even manage to open entire networks.

Here you can download a ready-made business plan for opening a pawnshop for a sample.

Choose the format of work

In order to open a pawnshop, for a start it is worth starting from scratch to determine its concept of work. The formats of this institution depend solely on what the evaluator accepts. The following areas are standardly distinguished:

1. Car reception - implies the presence of its own parking lot and a small car repair shop, so that it is possible to quickly and efficiently evaluate the car and prepare it for future sales. Parking should have at least thirty places, in addition, it is important to hire security. You will also need to have a large amount on hand for issuing for each car.
2. Reception of furs - here you will have to hire a specialist in evaluating furs specifically. You must correctly understand the quality of the material and its type for further sales. You will also have to rent a large area for a refrigeration workshop for fur coats or other clothing with fur.
3. Acceptance of jewelry and jewelry - for jewelry and precious assortment usually do not do checks and evaluations. Standardly brought things are evaluated as scrap: the weight of the precious metal and its purity are determined. The rest is sent to jewelers for sale.
4. Reception of antiques - such places are often visited by various collectors in order to purchase interesting things. To assess the antiquity and authenticity of the brought antiques, it is important to hire a specialist.
5. Reception of household appliances - they do not always accept only household appliances here. Evaluation of the pros and cons of each piece of equipment is in appearance, characteristics of work and internal state.

Pawnshop activities and law

In Russia, for example, there is a special law “On Pawnshops”, which is the regulator of the activities of these institutions.

According to the law, organizations can carry out work exclusively in the pawnshop field, engage in the issuance of loans and storage of things. Also, pawnshops undertake to insure against loss and damage of things for the loan term.

When providing a service to each client, it is required to draw up a special contract, which includes data on the terms of repayment and loan, loan amounts and the description of the item during the evaluation. For each of the parties to the agreement must be done in copy. Already after, the borrower agrees to pay the money issued to him with accrued interest on time or not to have proprietary claims for the mortgaged property.

The pawnshop further has the full right to sell the property received by it in ownership, selling it or arranging a special public auction. By the way, it is extremely important to understand that the sale of property must be carried out exclusively by an enterprise specializing in this. Because you have to create a new one. But the idea of \u200b\u200btrying to circumvent the law will lead to a large fine and the subsequent closure of the organization.

Law for employees

In Russia, there is also a separate order from RosFinMonitoring, which applies to employees of such credit organizations. This order under number 203 is obliged to regulate the following issues:

• The settings and the most important points of work that absolutely every employee of the pawnshop point should learn and prepare in order to perform high-quality work with money and pledged items.
• Dates during which each employee must be trained in this matter.
• The form and concept of staff training.
• Assessment of the abilities of a future employee after training.

Absolutely every pawnshop comes under liability in case of violation of the requirements of the order. In order not to lose business, it is important to check the availability of special documents on the education of each received employee. It is worth noting that each jewelry falls under a separate order of the Ministry of Finance under number 68. It regulates activities regarding the work with precious metals and stones.

We make out documents

Undoubtedly, for the legal opening of a business you will have to draw up some documentation. In this case, a Limited Liability Company, and not an Individual Entrepreneur, is selected as a legal form.

This imposes an obligation to pay a sufficiently large amount as the starting capital of the organization, be prepared for this.

registration

New business will have to be registered in two organizations - the Federal Service for Financial Monitoring and the Instrument Chamber.

Taxation

In the Russian Federation, the Tax Code does not provide for a separate taxation system for such loan cash registers, that is, in theory, institutions are required to pay taxes as usual.

But in practice, interest accrued by a pawnshop for loans is not taxed at all. The tax goes exclusively to the storage of another's property. Therefore, it is worth hiring a special accountant or to figure this out on your own in order not to have financial problems with the law.

Insurance

It has already been written above that client items mortgaged at interest are required to be insured against different situations.

Everything is obligatory for insurance of items placed solely on the organization of the entrepreneur, therefore, in order to facilitate your work and not insure each individual item, it is worth organizing regular party insurance for a certain amount.

We select a profitable room

The search for the right premises is one of the important points that has absolutely any business plan. A pawnshop should be opened in places with a high level of people traffic. A good option is large road lines in densely populated sleeping areas.

Some rent premises in residential buildings on the ground floor or in the basement. The basic rule when choosing a site and its equipment is following safety standards and the rules of SanEpidemStation. These include:

1. Metal bars on the windows (if placed on the first and second floors) and in the entrance doorway.
2. Glasses made of bulletproof alloy for shop windows.
3. Metal doors.
4. Security call button at the counter.
5. Alarm installation, including fire alarm.
6. The presence of ventilation and the necessary communications.
7. The presence of a bathroom.

All these points are important not only for authorities and documentation, but first of all they affect your safety and the safety of your organization’s savings, as well as the comfort of your employees.

Equipment

Protection against deliberate burglary is more important than ever here, so you should buy a door with a special function against burglary, so that the thief could not crack the input mechanisms. The bars on the windows will also help, but it may be worth playing safe and also purchasing armored automatic curtains.

The risks of losing the earned profit stored on the security of gold and other expensive items, as well as their lives, will be reduced by ordering real private protection. The alarm button at the counter should send the signal to her.

Video cameras will come to the aid of the alarm system and security company, which, by the way, will help to monitor theft at the workplace. The last method of securing money at a pawnshop will be a safe. The safer - the calmer you will be.

It remains only to equip the room with furniture. You don’t have to spend much money here: enough redecorating, buying a counter and display cases, as well as shelving. Want a unique design here? With a large start-up capital, this is quite realistic.

Is it profitable? It is unlikely that the money should be spent on security, insurance and the possibility of a loan, but excessive luxury can only scare away some potential customers. The situation outside, by the way, also requires expenses.

We accept staff

Unlike various business areas, such as product sales or the content of your own second-hand, it is important to find really upscale and versed people, in other words, specialists. What is needed for this? You can select a small step-by-step instruction:

• Search for appraisers in your particular area of \u200b\u200bchoice, be it jewelry or cars. It is desirable that in the past a person already had experience in conducting this activity.
• Arrange an interview with a trial of assessing some subject and assessing the personal qualities of a future employee.
• Find supposedly executive and honest people for the vacancies of cashiers-sellers and movers.
• Find a responsible and motivated employee for the position of manager.

A motivated employee is an aid to an entrepreneur, so value your staff and create favorable conditions for their earnings.

Video: how to open a pawnshop?

Profitability and opening cost

To determine how much it costs on average to open your own pawnshop from scratch, you can take the example of an abstract institution as a basis. As a sample, let’s take an average pawnshop, which went into a profitable antique direction, in a densely populated area of \u200b\u200bthe capital.

The table is as follows:

Profitability will also be different, we continue with the above example. On average, in the first months of operation, a pawnshop is visited by 10-20 customers per day, which is really not enough to break even.

Be prepared that the profit does not initially go beyond monthly expenses. In 7–9 months with the development of the client base, it will be possible to receive 30–50 clients per day, which will allow bringing the business to the profitability zone approximately one and a half years after opening.

Try to start opening as many lombard points as possible, so that further business development and strong competition do not flood your project.

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