Business At A Glance


Startup Costs: $10,000 – $50,000
Online Operation? Yes

Business Overview

Pawnbrokers sometimes get a bad rap, andunfortunately it only takes a few bad apples dealing in stolenmerchandise to give the industry a bad name for all operators ofpawnshops. However, like any business venture, eventually the badbusiness operators will disappear and the good operators will flourish.

Starting a pawnshop business is a good choice as a business start-upfor a few reasons, such as no special business skill requirements,relatively low initial investment, and excellent profit potential.Furthermore, utilizing used product pricing or value guides such as theBlue Book take away any guesswork in terms of the wholesale and retailvalue of products.

The key to success for operating and profiting froma pawnbroker business is to keep all transactions legal, establish thebusiness in the right location, deal only in up-to-date merchandisethat has real value, and always practice good negotiation skills.

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.