After coming up with the idea, the next step in starting your business should be to write a comic book store business plan. Not only will a bank require you to have a business plan, but multiple studies have shown that a business plan helps increase the odds of starting a successful business.

Related: How to write a business plan

A business entity (also referred to as a business structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business entity is best for a comic book store, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay.
 
The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Related: Guide to forming your LLC
 

Finding the perfect name for a business can be challenging. Not only does the name have to resonate with your customers, but it also has to be available to use.

Related: Tips and ideas for naming a comic book store

A comic book retailer can choose to be a traditional brick-and-mortar location or an online business model. A brick and mortar store will have higher overhead due to the building. Building costs vary depending on the store’s location, size, and amenities, like off-street parking. A store located in a high-traffic retail area will carry a higher rental cost, but it can also bring in walk-in traffic and help build community awareness of the business.

Unless you plan to have extensive gaming, a comic shop can get by with minimal retail space to keep overhead low.

Related: Choosing a business location

There are no specific comic book store licenses; however, there may be some general local, state, and federal business registrations needed, such as a sales tax permit, Employer Identification Number, Occupancy Permit.

Related: Common business licenses, permits, and registrations by state

The largest comic book distributor is Diamond Comic Distributors, who have exclusive rights with the major franchises like Marvel, DC Comics, Dark Horse, and Image. They have a team that assists new stores with their business startup, which can help shorten the learning curve. There are also a number of independent distributors that will round out a store’s titles depending on the niche they are going after.

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a comic book store is another as most of the costs go towards inventory and remodeling. To get a loan, the borrower(s) will need to have good credit and personally invest 15-25% money towards the total start-up costs.

Related: Finding the money to start a business

Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
 
Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

Great marketing can help a comic book store stand out in a competitive industry and encourage customers to come into the store. Marketing techniques can include social media marketing, online advertising, print advertising, and more. A business owner might also establish a customer loyalty discount and/or a referral rewards policy to help drive sales and build up the customer base. Holding special events can also help to bring both returning and new customers into the store.

Once your comic shop is up and running, your customers can be a valuable source of information and insight. Don’t be afraid to talk to your customers about what they’re looking for, what they would like to see your store carry, and what products they have trouble finding locally. By listening to your customers, you can continue to improve your store to deliver the shopping experience that they want.

Related: Low-cost ideas to market a new business

There are several types of insurance to consider when starting a comic book store. A few of these include:
– General liability insurance protects the business if a customer is ever injured while on the property, such as during a slip or fall in the store. This type of policy typically covers expenses like medical bills and legal fees.
– Commercial property insurance helps to protect a business against financial losses if its inventory or equipment is ever damaged in an event like a fire.
– Worker’s compensation insurance helps to protect the business if an employee is ever injured on the job. It helps to cover expenses like medical bills and legal fees.

The cost to insure a comic book store will vary with the store’s location, the value of the inventory and building, and the number of employees on staff. To get the most accurate idea of what to budget for insurance, request policy quotes from multiple providers. When evaluating the quotes, consider how factors like premiums, exclusions, coverage limits, and deductibles compare.

Related: Common types of insurance a business may need

Depending on a comic book store’s hours, a shop owner may handle most or all of the initial staffing. As the store grows in popularity and size, it may be necessary to hire employees. Data on average comic book employee salaries isn’t available, but Glassdoor reports that bookstore clerks earn an average of $27,817 per year.

If a store hires employees, its budget will need to include salaries and other expenses like worker’s comp, unemployment insurance, paid time off, and vacation time.

Related: Hiring your first employee

Setting up an accounting system for your comic book shop is critical to your business’s long-term success.

Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up the accounting for your business