In this blog post, Nabarun Roy, Superintendent of Central Excise and Customs, Export Refund Section, Central Excise, Kolkata – I Commissionerate, Kolkata under the Dept. of Revenue, Ministry of Finance, Government of India, who is currently pursuing a Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata discusses the essentials that need to be kept in mind while opening a bookstore.
Everyone in their childhood has felt the excitement of browsing through the crisp pages of a book, be it the school textbook every year or a gifted storybook, a magazine or a comic book. In today’s world, just when book reading had almost been written off as a little old-fashioned and people had started carrying volume less e-books in their so-called smartphones, it slowly dawned on people that actually, there is no alternative to the excitement and novelty offered by books themselves. And we can see that the sale of books has picked up again in the recent past. While some people prefer to buy books online, a lot of people prefer to buy books from a local bookstore which has many advantages .
Advantages
- You get to see and feel the books.
- You enjoy walking up to the store and browsing through the various categories for hour or two, exploring them, soaking in the comfortable and congenial atmosphere and maybe with a hot cup of coffee in your hand.
- You can buy in cash/card and instantly become the owner of the book you desire.
- You can get it gift wrapped for someone you love.
- You may also like to participate in book reading sessions or various other activities in a bookstore.
- You may also like to interact with the knowledgeable staff of the store, which can suitably guide you in choosing/finding the right book. Above all, it is the personal touch that a book lover enjoys in a bookstore, which is completely absent in the e-staff.
While this discussion might seem irrelevant in this blog post, but one quickly realizes that this is very much required to be understood in order to formulate a business plan effectively. A business plan will state your goals, why you think those goals are achievable and how you plan to reach them. It should include an impressive executive summary in just one page. It should include a solid marketing scheme. It should also necessarily contain all the financial documents and projections to convince the investors and lenders.
Now that we have decided to open a bookstore in our locality, let us first delve deep into the formalities involved in opening a bookstore.
Essentials to be kept in mind while opening a bookstore
1. Location: It is advisable to find an area with a lot of pedestrian traffic.
2. Area: Size of the bookstore should be in conformity with the kind of business plan being followed.
3. Legal formalities: It is always smart to take professional help in this matter. If your Business Plan involves the creation of a Proprietorship/Partnership, professionals adept in business law and entrepreneurship administration can help suitably. For example, if you incorporate a company, your personal assets will not be at stake, but your income will be taxed both as corporate and personal income, while if you operate as a sole proprietorship, you risk losing even your personal assets (like your car or home). Also, agreements with the publishing houses, dealers, guilds, etc. for procurement of books, “Agreement of Tenancy” or “Sale/Transfer/Lease Deeds” etc. involved in the procurement of space for a bookstore, once handled by skilled professionals saves many tears in the future. Also to be considered are:
4. Number of staff to be employed and service agreements/conditions.
5. Obtaining of Trade Licence, Registration with the government authorities like Income Tax, EPF, Service Tax, Sales Tax, ESIC, Labour Commission, Fire Department, etc. may be considered as per the need and number of employees.
6. Strict observance of fire safety regulations & installation of fire extinguishers at convenient places with suitable placards displaying instructions on “dos and don’ts” along with an Emergency Exit Plan in the case of an emergency.
7. Liability Insurance of the bookstore and its inventories laying proper emphasis on fire, theft, and natural calamity factors.
8. Agreements regarding the hosting of a web portal in the name of the bookstore. This goes a long way if managed properly, in creating a bridge between the store and it’s book lover customers who are either too busy or incapacitated for some reason to come to the store. This also helps in giving short reviews regarding books and for creating a book lovers community. Also to be considered are agreements with various online selling portals for the furtherance of the business.
9. Agreements with the financiers of the project.
10. Financing: The business plan, as discussed above, should clearly mention how much start-up capital is needed, and then a comprehensive plan has to be formulated to get that money. This money may come from three sources namely assets of self, investors, and lenders. It is crucial to achieve a balance among these three sources of money in order to maintain the financial health of the business.
- A substantial portion of the start-up capital should consist of the Proprietor’s/Partner’s money. It sends a good signal of vested interest to the lenders/investors.
- Money should also be garnered from investors. It is better to get in touch with friends or venture capitalists and convince them that your business is a promising investment. When investors give you money, they establish equity in your business, meaning they also become part owners. You are not obligated to pay them back if the business fails, but they are certain to expect a high return in exchange for shouldering that risk.
- Bank loan can be a good option too. There are plenty of small business loan schemes available. Loans have the benefit of costing less than equity (the interest rates will be lower than an investor’s expected return), but it is obligatory to pay them back.
11. Bookstore environment: The proper lighting of all the available space is a must while at the same time; it should not be too harsh. Proper shelving and inventory, window signage, fliers, etc. are necessary. Armchairs, a coffee counter, a fireplace (for colder climates), soft music, etc. may add charm. Socialization may be encouraged by sponsoring a book club, book readings, book-signings and other literature related events. There can also be open mike nights for live music and offer classes or seminars on topics appropriate to the bookstore’s niche.
12. Stocking the bookstore: Filling up the shelves with the kind of books that aligns with the market niche proposed to be explored in the business plan is the most important thing. It should also be revamped continually. Also, stocking of books catering to every age group and taste is a detail that must be kept in mind.
13. Advertising the business:Before opening, make sure people in the surrounding community know about your new bookstore. Consider printing fliers, putting ads or coupons in the local newspapers, advertising online or holding a grand opening sale. Make sure to take advantage of social media technologies to spread the word about your new store.
14. Mission statement:You should try to make people know that each time they come into the bookstore, they’ll find something awesome. It might take more than 30 seconds—it might take some browsing—but you should guarantee they are sure to find something they love. And they can also be helped to find it. And unlike every other bookstore, you should know about everything available in there. You should at least know something about every one of these books. Other senior staff of the store should also be trained in handling the customers in a similar fashion.
15. A good website: All this said and done, there has to be a ‘Homepage’ for the bookstore on the web today, and it should be entertaining, interactive and at the same time, informative.
16. Feedback system: Collecting feedback from your customers can be very valuable for the proper growth of the store. This has to be done very tactfully, either through some promotional schemes, over a free cup of coffee or during reading and writing sessions.
Once the above-mentioned steps are taken care of, your lovely bookstore is ready for a gala opening, may be in the presence of a well-known local persona or a famous writer. And voila! See the satisfaction in the faces of the customers coming out of the bookstore.
