All the nuances and features of how to open a pawnshop and make money from it

The current situation in the domestic economy quite often forces people to look for additional funds. And one of the ways to quickly correct financial problems is to take out a loan secured by personal property that has a certain price at a pawnshop. That is why a pawnshop is becoming a very popular business idea for enterprising people who want to make a profitable investment in some business. Actually, for those who are interested in such a business, we think step-by-step instructions on how to open a pawnshop will be a good guide in building it.

What is a pawnshop and how does it work?

Although each of us is more or less familiar with the operating principle of a pawnshop, before telling you what it takes to open a pawnshop in Russia, I would like to remind you once again that in this establishment you can quickly get a certain amount of money, leaving some personal ( this is a prerequisite) a valuable thing. But the most important thing is that this item can then be returned back, provided that the borrowed amount is returned at the agreed time. If the borrower was unable to repurchase the pledged property on time, the pawnshop, in order to reimburse the amount not returned by the client, has the right to sell this property. However, this can be avoided if you try to negotiate an extension of the loan agreement (most pawnshops practice such relationships with clients). And if the business owner agrees to the concessions, the borrower will be charged interest on the amount received as a loan, which will need to be paid immediately. And only after this the contract will be extended.

In general, if we describe the essence of the business in simple words, we can say that a pawnshop is a small alternative for those who, in great need of cash, do not want to think about what they can sell from home to earn money, but are ready borrow them on collateral. And these people can be understood. After all, the item sold cannot be returned, and the advantage of a pawnshop is that it gives the client a chance to both solve a financial problem and preserve the property. But these advantages are in favor of clients. And what advantages attract those who decide to open a pawnshop business?

How much does it cost to open a pawnshop and what expenses to consider?

To open a pawnshop, you will need a substantial amount of money, time and patience to complete all the necessary documentation. The bulk of the amount will be used to issue loans. Therefore, small investments are not enough here. You will also need to rent a room, make repairs, and buy all the necessary equipment.

The cost of the equipment will depend on the type of property you are working with. For furs, for example, you will need a special refrigerated room for their safety (this is a legal requirement), and for cars - a protected place in a special parking lot. You will also need to take care of the security of the premises and the necessary security equipment (DVR, cameras, safes, alarms).

Below is a sample list of monthly expenses

The approximate amount of monthly expenses with such indicators is 320,000 rubles. But this amount can vary greatly depending on the city, location, type of activity of the pawnshop itself, and the number of loans issued.

It also does not take into account repair costs, taxes (depending on the number of things stored), and necessary documents. On average, the amount required to open is about 1.2-1.5 million rubles.

Also remember that you must have enough money to issue loans. For the first six months, a pawnshop may not make a profit at all. It is considered normal when the first year you simply break even, without losses. The average payback for such a business is 1.5 – 3 years.

Advantages and disadvantages of opening a pawnshop

Let's figure it out, because in order to open a pawnshop from scratch, it is very important to weigh the pros and cons, if only because you will have to work with other people's property and large sums of money. That is, this means that the business is risky and the entrepreneur must be prepared for the following:

• By accepting an item as collateral, you may not recognize a fake and pay off a loan, which, in the event of non-repayment of money, will not be able to be covered by the sale of this item;
• You can take an item that was stolen as collateral, and if it is confiscated by law enforcement agencies, it will be impossible to compensate for the damage;
• Some goods, in particular household appliances, leather and fur items, can quickly lose liquidity;
• When organizing a car pawnshop, you need to adhere to very high requirements (organizing a parking lot with security, having a highly qualified employee on staff), etc.

But as they say in such cases, those who don’t take risks don’t drink champagne. Moreover, those who had already decided to open a pawnshop from scratch on their own were not particularly focused on the disadvantages. Instead, its advantages were taken into account. In particular:

1. The risk of non-return of funds is minimal (property left as collateral can be sold at any time at a higher price, which will cover financial losses and also make good money;
2. Any room is suitable for organizing a business (a pawnshop can be set up perfectly either in a basement, in a garage or in a small room in a shopping center. The main thing is that the place is crowded;
3. The service is always in demand;
4. High business profitability;
5. Competition is very low.

In addition, to make it easier for a novice businessman to work, before opening a pawnshop, he can choose the type of activity, which is determined by the type of property that will be taken as collateral (this will allow him to gain experience in a new business, quickly learn to evaluate things, and determine their authenticity). Of course, over time this list can be expanded, but it’s better to start small.

What to consider when opening your own pawnshop organization

The main objects of collateral today are various jewelry and cars. Consequently, the enterprise will need specialists in assessing these objects.

At the moment, competition in this market is quite high, therefore, the conditions for providing loans should be (or seem) favorable to clients.

Some pawnshop organizations, in addition to jewelry, also accept computers and equipment. However, you should understand that storing such objects requires a lot of space. Consequently, it may be necessary to rent additional premises, for which the entrepreneur will have to spend some money.

In order to borrow cars as collateral, you will need a parking lot. If you plan to accept fur products for commission, you will need a refrigerator. These will be additional costs. However, it is important to understand that the greater the number of things the company being opened can take on commission, the more clients will use the services provided.

Types of pawnshops

As you know, every business begins with drawing up a business plan.
Since when writing a business plan for a pawnshop, you will need to clearly indicate its specialization, that is, for what type of property it will issue loans (this was mentioned above), this issue should be considered in more detail. After all, the amount of initial investment in the business will depend on this. In general, the list of property that pawn shops can take as collateral is very large. It can be:

• Household items;
• Antiques;
• Electrical goods and computer equipment;
• Jewelry;
• Valuable metals;
• Securities;
• Motor vehicles.

By the way, you cannot pawn real estate in a pawnshop. And even if they convince you otherwise, remember - this is illegal. Since such operations are a function of banking institutions.

Considering this list, the main types of pawnshop business include:

Pawn shop for buying jewelry and gold

The peculiarity of this type of pawnshop is that the clients of such establishments quite often become not only ordinary people with an average income, but also quite wealthy individuals who, for some reason, find themselves in a difficult financial situation and are ready to leave as collateral:

• Jewelry;
• Precious metals;
• Gems.

According to experts, cases of non-repayment of funds with borrowers who know the price of such capital are very rare. Accordingly, if a future businessman has a question about how to open a pawnshop profitably, then this type of activity may be a good option. Because bankruptcy will definitely not threaten him, because the borrower is not interested in his pledged assets being sold to anyone. And the fact that such establishments usually operate in stores selling gold jewelry suggests that this topic, in general, can become the foundation for a new business for businessmen who are interested in the question of where to start a jewelry business. So we advise you to think about it.

Pawn shop for purchasing household appliances

Establishments of this type are designed mainly for clients with an average level of income. In this case, cash loans are issued against the security of various home appliances that have a good appearance, perform their functions properly, and if the loan is not repaid, a new owner can be quickly “found” for it. However, for those who are interested in how to open a pawn shop for equipment, it is worth paying attention to the fact that experienced pawnbrokers do not take every item as collateral (which is generally correct, especially if you take into account the fact that modern equipment very quickly loses liquidity) . In this regard, preference is given to:

• Phones;
• Laptops;
• Video cameras;
• Computers.

But those who are looking for an opportunity to sell their old TV for money - at a pawnshop - will most likely be denied a loan secured by it. Because no one is interested in old TVs anymore, and if the loan is not repaid, the pawnshop will be forced to either keep this TV for years or give it back for something.

Universal pawnshop

This type of pawnshop business does not have any specific limits on the types of collateral. A loan can be obtained by pledging jewelry, fur items, and equipment. But if we are talking about a loan secured by such things as watches, antiques, luxury jewelry, then there may be problems. After all, the product is specific and it is not always possible to find a merchant for it.

When choosing this specificity, you need to remember one more important thing - before opening a pawnshop of a universal type from scratch, you will need, having thoroughly familiarized yourself with all the nuances of the business, to find good specialists who can:

• Correctly evaluate different things offered as collateral;
• Recognize the authenticity of things;
• Understand people (in case you don’t issue a loan secured by stolen things, etc.).

Auto pawnshop

This type of activity is interesting for clients because the conditions for obtaining a loan in a car pawnshop are much simpler than in banking institutions and microfinance organizations.
After all, although banks offer low interest rates, the process of issuing a loan is quite complicated and, moreover, takes a very long time. As for microfinance organizations, the procedure is simpler, but the loan amount is limited, and the interest rates are very high. So a car pawnshop is an excellent opportunity to get a quick loan. For a businessman, this type of activity is also quite profitable, but as for the question - how much money is needed to open a pawnshop that will take cars as collateral, there are several options.
The fact is that when pledging a car or any other vehicle as collateral, the pawnshop does not necessarily take it for storage. The pledged car can either be kept by the lender or remain in the use of the borrower (while he pays interest on the loan amount) and only in case of failure to fulfill obligations to the lender, the car can be seized and sold at market value. Accordingly, if a businessman is limited in finances, then when organizing a car pawnshop, he can limit himself to the option where the car is not taken for storage (then there is no need for a site, security, video surveillance, etc.). Although, of course, there is also some risk here, but these are nuances.

How to open a pawnshop: step-by-step instructions

15.01.2018

5879

Given the current situation in the Russian economy, many of our compatriots are forced to resort to alternative methods of obtaining additional funds. One of these methods is to take out a loan secured by valuable property. That is why the question of how to open a pawnshop is more relevant now than ever. The step-by-step instructions in this article will help you understand the stages of creating a pawnshop business.

What is a pawnshop?

A pawnshop is a legal commercial institution whose activities are based on mortgage principles. In other words, the pawnshop client, in exchange for the amount he needs, leaves his valuable property as collateral. After repaying the debt to the company, the borrower receives his item back.

An important point in completing a transaction between the pawnshop and the client is the collateral of only the borrower’s personal property. The loan size is determined based on many factors, especially the real value of the property.

How does the pawnshop business work in Russia?

Many pawnshops provide their clients with the opportunity to renew their loan agreement. In this case, the borrower will only have to pay the accrued interest, after which the loan agreement will be extended.

If the pledged object is not redeemed within the time period agreed upon by the parties, the pawnshop receives the full right to sell the property in order to compensate for its own losses.

I want to open it - where to start?

Opening your own pawnshop business must begin with drawing up a business plan.

Only in this case will it be possible to study the current market conditions as accurately as possible and calculate upcoming expenses and potential return on business.

Where is it better and more profitable to open a pawnshop: in Moscow or the regions?

In Moscow

According to recent studies, there are currently more than 550 pawnshops operating in the capital, most of which are private enterprises.

A well-located and organized pawnshop is visited by about 700 potential middle-class clients per week. In this situation, the average net profit of a pawnshop in a residential area of ​​Moscow is about 100-150 thousand rubles.

And in the regions?

To determine how profitable it is to open a pawnshop in a particular region, you need to determine:

• degree of market saturation;
• the largest organizations;
• principles and features of running a pawnshop business in the area.

Thus, in one of the Russian cities, opening a pawnshop may turn out to be extremely profitable, but in another it may lead to bankruptcy. Therefore, each situation must be considered individually.

What do you need to open a pawnshop in Russia?

Is it difficult?

In general, opening a pawnshop consists of the following main stages:

• Company registration;
• choosing the right location;
• equipment selection;
• personnel selection;
• launch of advertising.

With a well-written business plan and a sufficient amount of investment, opening a pawnshop will not be difficult.

What laws regulate the specifics of taxation?

The activities of pawnshops are regulated by the Civil Code of the Russian Federation and Federal Law No. 196-FZ “On Pawnshops” dated July 19, 2007.

Basic moments:

• According to paragraph 2 of Article 2 of Federal Law No. 196, only a specialized commercial institution can engage in pawnshop activities.
• The main directions of pawnshop activity are: provision of urgent loans and storage of property. Pawnshops are prohibited from engaging in other types of business activities.
• Pawnshops are participants in the general taxation system, since, according to clause 7, clause 3, Article 346.12 of the Tax Code, they do not have the right to use the simplified taxation system.
• The use of a taxation system in the form of UTII is also unacceptable, including when selling unredeemed collateral, since the pawnshop is not the owner of this property.
• Income received under loan agreements or to repay debt obligations is not recognized as income subject to corporate income tax in accordance with paragraph 10, paragraph 1, Article 251 of the Tax Code.
• At the same time, according to clause 6 of Art. 250 of the Tax Code, funds received from the sale of unclaimed items are subject to corporate income tax, since they relate to non-operating income.
• When calculating income tax, non-operating income also takes into account those converted into pawnshop income on the basis of clause 5 of Art. 13 of the Law of Money.

Thus, most pawnshops receive only interest income on loans, not subject to VAT (according to paragraph 15, paragraph 3, article 149 of the Tax Code).
Despite the fact that VAT is not paid in this case, it is still necessary to submit zero declarations on a general basis. If a pawnshop charges a certain fee for storing collateral (for example, in case of late payment), then the proceeds are subject to VAT. In this case, it will be necessary to maintain separate records of the amount of tax on taxable and non-taxable transactions (according to paragraph 4 of Article 170 of the Tax Code).

Important

: Pawn shops are not required to provide information on form 2-NDFL from the sale of collateral.

Transport tax and property tax are paid only if there are objects of taxation.

How much money do you need to open a pawnshop?

The amount of starting capital for opening a pawnshop depends on many factors. The main cost items that need to be taken into account when opening a pawnshop are:

• company registration costs;
• purchase of equipment;
• expenses for utilities and other monthly payments, including: employee salaries;
• rental of premises.

The amount of costs depends primarily on the region and the type of pawnshop.

Types of pawnshops and their features

The main types of pawnshops are:

• jewelry;
• household and digital appliances;
• automobile;
• universal.

Much less common are pawnshops specializing in watches, antiques and luxury jewelry.

For buying gold and jewelry

Jewelry pawnshops specialize in issuing urgent loans secured by:

• jewelry;
• precious metals;
• precious stones (rare).

Most often, such establishments are located at stores that sell gold.

In most cases, the services of jewelry pawnshops are used not only by middle-class people, but by fairly wealthy citizens who find themselves in difficult financial situations. The percentage of cases of non-refund of funds in such pawnshops is practically zero.

Household appliances

Pawnshops that accept equipment as collateral attract mainly middle-income clients.

The equipment left as collateral must be in full working order and in marketable condition.

Equipment pawnshops are especially interested in purchasing:

• telephones;
• video cameras;
• computers;
• laptops.

Universal

Universal pawnshops do not have clear restrictions on the type of collateral. In the same institution, loans are issued both against the security of jewelry and against the security of equipment, fur products and the like.

Profitability and payback period

The profitability and payback period of invested funds are primarily affected by the number of loans issued.

To shorten the payback period and increase profitability, it is necessary to increase the amount and number of loans issued. Experts consider the average payback period for a pawnshop to be 5-7 years.

Calculation example

As an example, let’s take a pawnshop, the opening of which cost 800 thousand rubles, of which:

• rent: 140 thousand rubles;
• salary for 5 people: 300 thousand rubles;
• security: 160 thousand rubles;
• other expenses (advertising, accounting, insurance, etc.): 200 thousand rubles.

With an average loan rate of 10%, the pawnshop's break-even point is approximately 8.8 million rubles.
In other words, to cover all expenses it is necessary to issue loans in the amount of 8.8 million rubles. In this case, the company's profitability will be zero. To make a profit, the amount of loans issued must be increased. As practice shows, for a pawnshop to operate “plus”, it is necessary to issue loans to 40-50 clients daily in the amount of 5 to 10 thousand rubles. On average, it takes 3 to 6 months for a pawnshop to reach the break-even point. The timing depends entirely on the correct selection of the location of the pawnshop, the presence of competitors and the method of advertising.

Thus, the payback period of the establishment based on the volume of loans issued will look something like this:

• average monthly turnover 9 million rubles: payback period: 9 years;
• return on investment: 13.33%;

Important: The higher the monthly turnover of funds, the higher the payback.

How to open a pawnshop: step-by-step instructions

What documents are needed

To carry out pawnshop activities you must have:

• registration certificates;
• title documents for the premises;
• sanitary and epidemiological report with a list of types of services provided
  .

If a pawnshop works with precious metals and stones, then the organization must register with:

• Federal Service for Financial Monitoring (former name – Financial Monitoring Committee);
• State Assay Supervision Inspectorate of the Russian State Assay Chamber.

Registration of a company: which government agencies should I contact?

According to current legislation, only legal entities can carry out pawnshop activities. The most common organizational and legal forms are:

• OOO;
• OJSC;
• COMPANY.

To select a legal entity and speed up the opening of an enterprise, it is recommended to seek help from legal offices - in this case, the entire routine of registering a pawnshop will fall on the shoulders of intermediaries.

The procedure for registering legal entities is determined by Federal Law No. 129-FZ of 08.08.2001.

Is it possible to open a pawnshop as an individual entrepreneur?

According to current Russian legislation, opening a pawnshop as an individual entrepreneur is prohibited.

Important: To register a pawnshop, it is necessary to open a legal entity, and the company name must contain the word “pawnshop.”

Since, by law, a pawnshop can only issue loans and store property, and in practice this is not very effective, a fairly common scheme is to simultaneously register a purchasing organization and a consignment store. In this case, the use of individual entrepreneurship is permissible.

What kind of premises do you need and where can you find it?

In more or less large cities, experts recommend opening a pawnshop in an ordinary residential area with a large number of residents.

When choosing a location, you need to consider factors such as:

• presence of competitors;
• permeability of the place.

Due to the fact that there are no special requirements for the premises of a pawnshop at the legislative level, the organization can be located almost anywhere.

However, it is more effective to locate a pawnshop in a separate building or non-residential premises on the ground floor of a residential building.

Since commercial real estate requires a large investment, the best option is to rent a premises with an area of ​​30-50 square meters.

Equipment: list of what is needed and cost

The list of necessary equipment depends on the scale of the planned activity.

In most cases you will need:

• showcase for goods;
• cabinets or racks for storage space;
• workplace: counter-counter, table, chair, table lamp;
• office equipment: cash register, computer, MFP, telephone;
• security: metal door, safe, video surveillance;
• specialized items: scales, materials for testing metals and stones;
• other: stationery, information stand, etc.

Personnel: how many people are needed, responsibilities and requirements, salary

Experts strongly recommend hiring men with excellent highly specialized knowledge and assessment skills to evaluate equipment. For women, determining the authenticity and value of jewelry is suitable.

When working at the cash register, the gender of the employee is not important.

It is important to pay sufficient attention to the number of employees.

When working around the clock, a shift work schedule is required, so one appraiser and one seller will not be enough.

What do you need to know about insurance and how much does it cost?

According to Article 358 of the Civil Code of the Russian Federation, pawnshops are required to insure, at their own expense, items accepted as collateral in the full amount of their estimated value.

The cost of insurance is estimated based on a combination of factors, including:

• specifications of things;
• loan terms;
• conditions for storing collateral objects in a pawnshop;
• information about the security of the pawnshop;
• information about the fire safety system;
• information about the design of the room.

The greater the potential risk of loss of collateral, the higher the cost of insurance.

Detailed pawnshop business plan with calculations: download

You can get acquainted with detailed business plans for creating a pawnshop by downloading documents from the link: Option 1: https://yadi.sk/i/u8TbRUEr3HWaKy Option 2: https://yadi.sk/i/0fX7MxJr3HWaMK.

Pawnshop as a business: reviews, pros and cons

The undeniable advantages of opening a pawnshop include:

• minimal risk of deprivation of funds (unredeemed collateral can always be sold at a more favorable price and cover the losses incurred);
• the size of the room does not matter much;
• demand for services;
• high income;
• low competition.

At the same time, the disadvantages of investing money in opening a pawnshop include:

• the possibility of losing money if: you do not recognize a fake in time;
• issue a loan as collateral for stolen products (the product will be confiscated, and no one will compensate for the damage);

Questions and answers

How to get a bank loan for a pawnshop?

As practice shows, the best option is to open a credit line, which allows you to receive additional funds in tranches, thanks to which it becomes possible to regularly increase the company’s turnover.

What problems can you encounter and how can you avoid them?

When creating a pawnshop business, it is necessary to take into account the potential risks that you may encounter during operation:

• Over time, hidden defects may be revealed in items pledged;
• equipment and some other types of collateral become obsolete over time and lose their value;
• incompetence of employees can cause serious losses due to the issuance of a loan secured by a counterfeit product;
• issuing a loan secured by a stolen item will bring losses to the pawnshop, since in this case law enforcement agencies will confiscate the object without compensating the losses incurred by the pawnshop.

How much does it cost to buy a ready-made pawnshop business?

What is the payback period for pawnshops in Moscow and in the regions? The range of prices for purchasing ready-made pawnshops is extremely wide. The cost of a ready-made business directly depends on the region in which the organization is located, how developed the business is, how well organized and streamlined the activity is, how good the location of the pawnshop is and many other factors.

Practice shows that in the capital there are many offers to purchase a ready-made pawnshop at a price of 5-10-15 thousand dollars.

At the same time, in the regions, the cost of a pawnshop may differ significantly from prices in the capital.

For example, at the moment in Chelyabinsk there is an offer to purchase a pawnshop for 22 thousand dollars.

Thus, the more profitable the business, the higher its price.

Pawnshop franchise: what you need to know

How to choose a franchisor - what to look for?

Experts strongly recommend that before purchasing a franchise, you carefully study the performance of the parent company, which offers the opening of a ready-made business.

To evaluate a franchisor, it is necessary to pay special attention to such indicators as:

• period of presence on the market (at least 1 year);
• pace of business development;
• efficiency of debugging business processes.

You should refuse the offer to purchase a franchise if:

• the parent company has been in existence for less than a year;
• the franchisor cannot provide the client with the documentation package necessary for an easy start;
• many franchisees of this company close some time after starting.

Thus, if the franchisor is not able to minimize potential risks and simplify the launch of his client’s business, then it is better to avoid cooperation with such a company.

Review of offers from Russian pawnshop franchisors

"Pawnshop No. 1"

The franchise was developed by two financial institutions: First Solution and Pawnshop No. 1.
Important: The company assumes all possible risks of opening and establishing a business.

The most accurate forecast for profit is provided.

The franchisee is provided with:

• legal and accounting support;
• complete brand book;
• effective advertising.

Thanks to the recognizable style, the need to spend on marketing and design services is completely eliminated.

The lower level of net profit is at the level of one hundred thousand rubles.

Estimated payback period: 4 months.

"Dresser"

The parent company has been operating since 2010.
The company owns 90 branches throughout Russia. About 100 more points are open as franchises. The company's management claims that a third of franchisees decide to expand the business and open a second location just six months after the launch of the business.

The company's main requirements for franchisees are the ability to hire 2-5 employees and the availability of premises with an area of ​​20 to 70 square meters.

"Good"

The company offers not only the opportunity to open a new business, but also rebranding an existing one.
The franchisor offers the client:

• well-known trademark;
• necessary documentation, guidelines and business standards;
• a mentor who provides comprehensive support;
• provision of a modern system product;
• access to the database.

An investment of at least one million rubles is required.

The estimated payback period is three months.

Income: up to 300 thousand rubles.

"Expert"

The approximate amount of investment to start is 150 thousand rubles.
The franchisor offers franchisees:

• assistance in developing a business plan;
• explanation of the rules for assessing collateral;
• legal support;
• maintaining accounting and other reporting;
• assistance in organizing auctions for the sale of collateral.

Royalty payments are provided. The amount of payments depends on the duration of cooperation. The minimum payment amount is 3 thousand rubles per month. Subsequently, the franchisee will have to give up to 10 percent of the proceeds

The company has been on the Russian pawnshop market since 2009. Currently, the company offers the acquisition of a franchise and the creation of a business in Russia or the Baltic countries.

The amount of the down payment is 150 thousand rubles. The size of the required investment ranges from 300 thousand to 1 million rubles.

From the fourth month of operation of the company, a royalty payment of 7 percent of income is provided.

The average payback period is 10-12 months.

"585/Gold"

The franchise was developed by an organization called “Jewelry Network 585/Golden”.
The company has been operating on the Russian market for more than 15 years. The advantages of this franchise are:

• balanced pricing policy;
• high quality of products provided;
• the ability to conduct three areas of business on a single platform.

The initial payment is 200 thousand rubles. The minimum investment threshold is 3 million rubles.

The minimum royalty level is 17 thousand rubles.

To open a business, you need a premises with an area of ​​40 to 150 square meters.

The approximate payback period is 22 months.

What other pawnshop franchises are there?

As practice shows, in recent years more and more organizations are launching the creation of a franchise under their own name. However, the main advantage of opening a franchise company is brand recognition. Therefore, it is best to purchase a ready-made business from companies that have existed in the domestic market for a long time.

Franchise pawnshop: reviews

Is it worth working as a franchise or is it better to open a pawn shop yourself from scratch?

If you purchase a franchise, the total cost of the business will be higher than opening and establishing a pawnshop on your own. However, in this case, the businessman will not have to independently go through all the necessary authorities to obtain the requested licenses and certificates.

Using a franchise is more profitable because it helps to avoid such a serious expense as advertising. This is due to the fact that most franchisors are well-established companies in the service market, which is why it is much easier to get on your feet and manage a stable flow of clients with a franchise.

Thus, if financial security allows, then it is best to give preference to purchasing a franchise.

Video

Using the links below you can watch videos useful for opening a pawnshop.

An interesting interview from the pawnshop owner:

To learn twenty ways to increase pawnshop profits, you need to watch this video:

You can learn how to properly manage a pawnshop business from the video:

Thus, the pawnshop business is not the simplest direction, having many important nuances and features. That is why it is extremely important to organize a competent approach to activities so as not to burn out even with a ready-made franchise.

Source: Internet magazine Dolg-FAQ.ru

Where should you start a business?

Having understood the general concepts, it’s time to find out how to open a pawnshop, whether this business is profitable and what documents are needed to open a pawnshop. And to make everything as clear as possible, we suggest using step-by-step instructions on how to open a pawnshop from scratch. But before opening a pawnshop in Russia, the future businessman will have to conduct a small monitoring study to find out the situation on the local market, in particular:

• How many similar establishments already operate in a particular region; in large cities, competition can be high. For example, the question of where to make money in Moscow is quickly resolved, if only because pawn shops are found there much more often than in some small town. Therefore, if you plan to open a business in Moscow, then monitoring must be carried out very carefully;
• If it turns out that there is competition, then what does the operating pawnshop specialize in?
• If there are no competitors, you need to pay attention to the population (what they can offer as collateral; this factor will help determine the specifics of your establishment);
• Analyze statistical data on loans (how many of the population actively use this opportunity). It is likely that by offering these people the opportunity to receive a loan using a simplified system, they will be able to quickly gain clients.

When all the information has been collected and analyzed, you can begin to study the legislation that regulates the activities of pawnshops, in particular the Law “On Pawnshops” (No. 196-FZ, July 19, 2007), which spells out all the points about lending and storage of pledged items, the procedure their implementation in case of non-repurchase and other nuances. Of course, it is unrealistic to study all the legislation, but the most important points need to be remembered:

• According to the law, the main type of commercial activity of a pawnshop is the provision of cash loans secured by security and storage of personal property of citizens;
• Providing a loan necessarily involves the conclusion of an agreement, which specifies: the name, valuation of the pledged item, as well as the period when the pledge must be redeemed, the rate and amount. In addition, when completing a transaction, the pawnshop issues a pawn ticket in 2 copies. In this case, one is issued to the borrower, the second, like pawnshop documentation, remains in the pawnshop;
• Loan and storage of items can be provided to the borrower for a maximum period of up to 1 year;
• Items taken by a pawnshop as collateral are subject to compulsory insurance;
• If the borrower has not redeemed the pledged item within the period specified in the contract (after all, there are cases when a person does not know how to earn 2,000 rubles in a day and is ready to sell anything, but then they cannot redeem the pledged item because there is no money again) a pawnshop, one month after this term, has the right to sell this thing;
• Items whose value exceeds 30 thousand rubles and which remain unclaimed are sold only through public auctions. Otherwise, the businessman will have to additionally register an enterprise that will engage in retail trade.

Also, a future businessman should know that the pawnshop business is regulated by legislation that prevents money laundering and determines the procedure for handling jewelry (stones, metals).

After studying the legislation, you can begin to implement your own business plan.

Writing a business plan

This important document is the basis of the business, and in the future, it will serve as a hint on what to do, how and when.
It describes all the stages of the future business, calculations of initial investments and current expenses, estimated income, payback, etc. That is why, even before starting to write a business plan, the future entrepreneur must clearly decide on the name. Moreover, the “pawnshop” legislation (Part 2, Article 2 of the Law “On Pawnshops”) obliges the word “pawnshop” to be included in the name of the company. For example, LLC Pawnshop Zhemchuzhina. You also need to decide on the form of ownership of the future enterprise. Here, by the way, there are also some nuances. The fact is that it is recommended to register a pawnshop business as an LLC (limited liability company), or JSC (a joint stock company that provides for the issue of shares), because this is what the current legislation of the Russian Federation says. Accordingly, to the question whether an individual entrepreneur can open a pawnshop, the answer is unequivocal: he cannot, because the legislation does not provide for such a possibility.

Determining the legal address of an enterprise such as a pawnshop is also not easy. After all, if in other cases, sometimes when registering legal entities, you can use the address of the place of residence of one of the participants in the company, then when registering a pawnshop, you need to indicate the address of the premises where it will provide services. And this means that you need to decide on the premises even before the business registration process. Therefore, a few words about the requirements for the premises. It should be located in a walk-through location, away from possible competitors. It’s not bad if it has an area of ​​30-50 square meters and is located in a separate building or in a non-residential premises of a residential building on the ground floor.

Preparation of documents for business registration

Since in order to open a pawnshop we have already found out what is needed for it to operate legally (first of all, we need registration, legal address, premises), then at this step we will talk about the documentation that will need to be prepared for submission to the relevant authorities.
Since, as already noted, a pawnshop can only be registered in the form of an LLC or JSC, we will not consider this option, because there will be few documents to open a pawnshop. A JSC will require a package of securities (shares), and when submitting an application for registration, you will need the documents required by law for this form of enterprise. And this:

1. The decision to establish a company which reflects:

• Name of the enterprise (pawnshop) - in full, short, foreign language form;
• Legal address;
• Amount of authorized capital;
• Approved charter of the company.

2. Information about the manager and his appointment (this could be one of the founders or a hired employee);

3. Application for state registration of a legal entity, signed by all founders in the presence of a notary, in which you need to indicate the code of the type of activity (code 64.92.6 is provided for pawnshops);

4. Charter (in two copies), which must indicate:

• The purpose of creating the company;
• Company structure;
• Amount of authorized capital;
• Information about the principles of activity;
• Liquidation procedure.

5. A receipt confirming payment of the state duty in the amount of 4,000 rubles;

6. Documents that confirm the address of the company (a copy of the certificate of ownership, or a letter of guarantee from the lessor).

The LLC registration procedure will last several days. But, at this point, the work with the documentation is not finished. And in our step-by-step instructions on how to open a pawnshop in 2020, the next stage of documentation, which will need to be started immediately after receiving the LLC registration certificate, is registration with the Pension Fund and the Social Insurance Fund.

Preparation of a package of documents for registration with Rosfinmonitoring

The term for registration is 30 days after registration of the pawnshop. To do this, you need to submit the following package of documents to Rosfinmonitoring:

• Card of registration as an organization that carries out monetary transactions and transactions with other property;
• Copies of all constituent documents;
• Copies of the certificate of ownership of the premises where the pawnshop will operate, or a letter of guarantee from the landlord;
• A certificate confirming the presence of a manager and an accountant in the company;
• Certificate of availability of premises with security in which the collateral property will be stored;
• A certificate confirming the existence of internal regulations that regulate the work of the pawnshop;
• Certificate of purchased equipment for cash accounting, information about collateral and other operational issues related to accounting;
• Financial accounting at the beginning of work.

In general, from the list of these documents, the conclusion suggests itself that before starting a pawnshop, in particular, registering with Rosfinmonitoring, a businessman needs to not only have an LLC registered, but also have premises, equipment, and an alarm system. That is, a fully organized business. This is why it is so important to know exactly how much it costs to open a pawn shop. After all, you will have to pay for everything, in fact, still not having confidence whether you will be able to launch the business. Moreover, if the company specializes in precious stones and metals, there is another stage of registration ahead.

Registration with the Assay Office

For those businessmen who dream of how to earn 10,000 rubles in one day by issuing loans as collateral for precious metals and stones, such registration is provided for by the Instruction on the procedure for accounting and storage of precious metals, approved by order of the Ministry of Finance “dated December 9, 2016 No. 231n.”
To register, you must submit to the Assay Office:

• Application in the appropriate form;
• Certificate of availability of premises equipped with special equipment;
• Confirmation that the pawnshop staff has undergone special training and education.

Property insurance

This is the last mandatory stage of the procedure for opening a pawnshop, which is regulated by Art. 358 of the Civil Code of the Russian Federation, which states that pawnshops are required to insure at their own expense items accepted as collateral in the full amount of their estimated value. The amount of insurance is determined by a combination of factors, including:

• Specialization of things;
• Credit terms;
• The conditions under which the collateral will be stored;
• Information about pawn shop security;
• Technical information about the fire safety system;
• Information about the floor plan.

In general, insurance takes into account all potential risks of property and the more such risks, the higher the cost of the insurance policy.

You can insure your property with any company. It is better to take out insurance for the total amount, and not for each item. This will be much more convenient than drawing up an agreement for each specific item.

Recruitment, starting work and business promotion

As already noted, the pawnshop business is special because all stages: registration, selection of premises, its arrangement are carried out almost simultaneously. And when we managed to sort all this out, we can move on to forming a team. The minimum staff of a pawnshop should include the following vacancies:

• Administrator;
• Cashier;
• Appraiser;
• Accountant.

If the pawnshop is small, you can hire people who can combine several functions. For example, an accountant is a cashier, an administrator is an appraiser. So, at first, it will be possible to save on salary payments. But a prerequisite for selecting personnel must be high qualifications in a certain industry, the ability to have a good understanding of a certain type of product and professionally assess the cost of things.

By the way, when dealing with the issue of opening a pawnshop, the owner should also know that the founders of such an enterprise should be people who do not have a valid criminal record for economic crimes or against government authority, as well as citizens who, less than a year ago, were brought to administrative responsibility and They were given disqualification as punishment.

As for the process of promoting a business, the first thing that plays a role here is a well-chosen name of the pawnshop. It should be bright and memorable. A separate role in the promotion process is assigned to the sign, which should attract customers. Well, the main segment of promotion will be the reputation of the establishment. Positive information shared among potential clients will do the trick. Video on the topic

Methods of advertising and promoting a new pawnshop business

1. In order to advertise his own establishment, an entrepreneur will only need to post leaflets on poles in the area in which he plans to open a pawnshop, as well as on the entrances of houses.
2. It would be a good idea to distribute leaflets to your potential clients.
3. Alternatively, you can agree to place advertisements about the opening of a new pawnshop organization in the newspaper.

It is important to note that the possible payback period for a pawnshop business is approximately 2 years. Consequently, the sooner an entrepreneur takes care of conducting a large-scale advertising campaign, the sooner a large number of clients will appear for the organization being opened, and accordingly, the businessman will be able to quickly return the money that was invested in the business.

Internal documentation and work schedule

According to the law, a pawnshop must open no earlier than 8:00 am and close no later than 8:00 pm. But a bill has already been submitted to the State Duma that could extend the opening hours.

Purchase of a ready-made business – pawnshop

As you have already seen, in order to implement a pawnshop business idea, you need to go through many stages. This is very troublesome, costly and time-consuming. But it turns out that if a person has the means, he can avoid some issues by taking advantage of the opportunity to open a pawnshop as a franchise. To choose a franchisor, you first need to study the performance of the company that offers a ready-made business. You need to pay attention to:

• How long has the company been on the market;
• At what pace is this company’s business developing?
• The effectiveness of its business projects in the regions.

The offer should not be accepted if:

• The main company has been operating for less than a year;
• The franchisor cannot provide the client with an easy start by providing him with a ready-made package of documents to get started;
• Companies that took advantage of the offer are quickly closing.

After all, if the franchisor cannot provide its client with a comfortable entry into the business, why pay money?

In general, if we talk about whether it will be profitable to open a pawnshop as a franchise in Russia, then, despite the fact that the total cost of a ready-made business will be higher than if a businessman opened it on his own, this option is much more profitable. Because:

• A businessman will not need to go through the authorities and obtain permits to operate;
• There will be no need to spend money on advertising;
• It will be much easier and faster to recoup your business.

Therefore, if financial capabilities allow, then if you want to open a pawnshop, it is better to take advantage of the offers of franchisors.

Paperwork

To work, you need to open an LLC, CJSC or OJSC. A pawnshop license must be obtained. A copy of it must be placed in the buyer’s corner.

Pawnshops operate according to the general taxation system. It is mandatory to prepare a standard package of documents, which include an agreement with the utility service, a rental agreement for the premises, a fire inspection report, and a SES report.

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Is it profitable to run a pawnshop?

To answer this question, you need to calculate the profitability of the business. Several factors are taken into account here:

• Loan amount;
• Interest rate;
• Term of use.

For example, let’s take the loan amount, say, 20 thousand rubles. Typically, interest rates range from 0.2 to 0.5% per day. The approximate term of using the loan is calculated from 10 to 40 days. In 10 days, the amount of accrued interest in this case will be 1000 rubles.

But here it should be remembered that in order to reach the level of being able to calculate approximate income, you need to have a constant flow of clients. Experts say that the successful operation of a pawnshop will be ensured with an attendance of 30-50 people per day. With such a flow, you can achieve a good monthly income.