A step-by-step instruction from which you will learn everything you need to open a pawnshop in Russia and how much it will cost. The material takes into account legislative, tax and organizational subtleties.

The procedure for opening a pawnshop is significantly different from opening a regular company. The difficulty lies in the fact that it is necessary to comply with all requirements of the legislation in this area and if you are absent (by mistake or not knowing) you will have to pay huge fines. In order to avoid this, we will analyze the intricacies of the requirements for pawnshops and study the procedure for opening and organizing it from scratch.

Stage 1: Regulatory documents

Consider in the form of step-by-step instructions what you need to open your pawnshop. The initial step in planning the opening of a pawnshop is to study the laws and regulations governing the work of a pawnshop organization. We must collect all the legal acts of our future activities, as legal issues will have to be faced in practice.

The main legislative act is the federal law Federal law of July 19, 2007 N 196-ФЗ "On pawnshops".

Highlights of the law:

• Pawnshop is a specialized commercial organization, the main activity of which is the issuance of loans to the population on bail, as well as activities for the storage of things.
• The pawnshop is forbidden to engage in any other activities, except for the granting of loans (for up to 1 year) and the storage of things.
• All things pledged by borrowers, the pawnshop is required to insure for the entire loan term.
• When transferring things as collateral or for storage, a pawnshop is required to evaluate these things.
• When granting a loan, a pawnshop is required to enter into a loan agreement in which the essential points of the transaction (amount, rate, repayment period, name and value of the pledged thing) should be recorded.
• When a loan is issued, the borrower is given 1 copy of the security ticket, the second copy remains at the pawnshop.
• The borrower undertakes to repay the loan received, as well as interest on it in accordance with the period specified in the contract. If the borrower has delayed the loan repayment period by more than 1 month, the pawnshop has the right to sell the mortgaged property.
• The sale of pledged things occurs by selling it, if the price of the item exceeds 30,000 rubles, its sale is carried out by conducting public tenders in the form of an open auction.

An important point: According to the Law “On Pawnshops”, pawnshops can only issue loans, therefore, for the sale of property on which a mortgage case has occurred, it is necessary to separate a separate legal entity that will engage in retail trade in jewelry.

The next legislative act regulating the activities of the pawnshop is the order of RosFinMonitoring No. 203 dated August 3, 2010 "On approval of the Regulation on the requirements for the training and education of personnel engaged in transactions with cash or other property in order to counter the legalization (laundering) of proceeds from crime through, and the financing of terrorism. "

This provision governs the following issues:

• Requirements for the training and education of personnel in transactions with cash and other property.
• Forms, frequency and terms of staff training
• Organization of accounting training

If the conditions of order No. 203 of August 3, 2010 are not met, the organization may be held administratively liable, and in case of systematic violations, it may be closed.

Due to the fact that the activities of the pawnshop are connected with the circulation of precious metals and stones, it falls within the scope of Order No. 68n of the Ministry of Finance of the Russian Federation dated August 29, 2001 "On Approving the Instructions on the Procedure for Recording and Storage of Precious Metals, Precious Stones, Products from them and reporting on their production, use and handling. "

An important point: This order applies to pawnshops issuing loans secured by precious metals and stones.

Features of taxation

The taxation of pawnshop activity there are certain subtleties. According to the Tax Code of the Russian Federation, the activities of pawnshops fall under the general taxation regime. At the same time, income received in the form of interest on VAT loans is not taxed (according to subparagraph 5 of paragraph 3 of Article 149 of the Tax Code of the Russian Federation), and storage activities are subject to VAT, therefore, separate accounting must be kept in the organization.

Stage 2: Calculation of the economy

One of the main stages in planning the opening of a pawnshop is to calculate its effectiveness. At this stage it is necessary:

1. Understand what investments are required to open a pawnshop.
2. What will be the consumable part of the pawnshop
3. How many loans must be issued per month in order to cover all costs and make a profit.

For example, we analyze the economic calculation of the opening of a pawnshop

All calculations are made for a pawnshop located in Moscow

On average, equipment in the amount of 500 thousand rubles is needed to equip one pawnshop with an area of \u200b\u200b40 m2. The costs consist of the following items: repair of the premises, purchase of furniture and office equipment, special equipment, a safe, purchase of accounting programs, printing of advertising materials, a set of reagents and tools for an appraiser, and so on.

Also, to open a pawnshop, you must have the means to issue loans to the population.

The costs of opening a pawnshop in our example amounted to 10.5 million rubles (0.5 million rubles. Capital costs and 10 million rubles. Funds for issuing loans).

Costs

• Rent: 3 500 rub. for 1 square. m. - 140,000 rubles (for 50 sq.m.)
• Salary: 5 people (1 director, 4 appraisers, two in two work in shifts) - 300,000 rubles (including taxes).
• Protection: - 160,000 rubles
• Other (advertising, administrative, accounting, insurance) - 200,000 rubles.
• Total expenses: 800,000 rubles.

Having analyzed the rates in existing pawnshops, the average loan rate on bail is 10%. Based on this rate and fixed costs, the break-even point of the pawnshop is 8.8 million rubles. This means that it is necessary to issue loans for 8.8 million rubles to cover all expenses and go to zero.

Therefore, in order for the pawnshop to make a profit, it is necessary to issue loans worth more than 8.8 million rubles a month. Use the methodology for calculating the working capital of a pawnshop for self-calculation for specific conditions.

In practice, for a pawnshop to work for profit, it is necessary that 40-50 people visit the pawnshop per day (average loan amount is 5-10 thousand rubles). On average, a pawnshop needs a period of 3 to 6 months to reach the breakeven point. The timing depends on the correct choice of the location of the point, the presence of competitors, advertising.

The payback period of a pawnshop based on the volume of loans issued:

As can be seen from the table, the larger the average monthly output, the faster the payback. In practice, the payback period of a pawnshop is 5-7 years.

Stage 3: Registration Procedures

If you were satisfied with the economic calculation of the activity of the pawnshop, and the prospect of getting bogged down in studying the various Talmuds regulating the activities of the pawnshop organization did not push you away, then you can safely proceed to register the pawnshop.

Specific steps to open

1. Register activity with the Tax Inspectorate.  The optimal organizational form for the pawnshop is “Limited liability company”. You can familiarize yourself with the list of documents necessary for registering an LLC on the site nalog.ru.

   As an activity, you must select the following:

   provision by pawnshops of short-term loans secured by movable property (OKVED 65.22.6.)

   the provision of services for the storage of valuables (OKVED 67.13.5.);

   the provision of consulting and information services (OKVED 74.14 Advice on business and enterprise management)

2. Register a pawnshop with the Federal Financial Monitoring Service.  Within 30 days from the date of state registration, the organization has an obligation to register with RosFinMonitoring. You can familiarize yourself with the list of documents required for registering a company on the official website.
3.   Register with the Assay Office.  According to the Order of the Ministry of Finance of the Russian Federation No. 68n dated August 29, 2001, organizations engaged in the turnover of precious metals and stones are required to register with the Assay Chamber. You can familiarize yourself with the list of documents required for special registration on the official website of the assay chamber.

   An important point:  Without registration with RosFinMonitoring and the Assay Chamber, a pawnshop is not entitled to issue loans.

4. Choose an insurance company and insure the things accepted as collateral in favor of the mortgagors. According to the Law “On Pawnshops”, to carry out activities on granting loans on bail, it is necessary to insure property offered as a pledge in favor of the pledger, but at the expense of own funds. Coercion to insurance at the expense of the mortgagor is prohibited. An important point: In order not to insure each thing individually, it will be optimal to insure yourself for a certain amount, which will allow you to cover all your obligations to the mortgagors.

Stage 4: Choosing a Location

The choice of the location of the pawnshop depends on whether your pawnshop will be profitable and how quickly it will pay off. The pawnshop premises must meet the following criteria:

• The room should be located on the first line of houses (first or ground floor, it is allowed to place a pawnshop in the basement, if there is a convenient staircase)
• The room should be in a place with a lot of human traffic (for profitable work, a pawnshop should come 40-50 visitors a day)
• The pawnshop should be located in a densely populated residential area ("sleeping area").
• The room must comply with fire safety rules and the requirements of SES.

The actual launch, the beginning of the pawnshop

Now you know the main stages of opening a pawnshop and for its real launch it remains:

1. Hire staff (the number depends on the area of \u200b\u200bthe pawnshop and on the number of services provided and the types of collateral accepted)
2. Determine the work schedule (It is optimal that the pawnshop works daily, from 10:00 to 23:00)
3. To develop internal regulations for the work of the pawnshop (internal regulations, job descriptions for employees, employment contracts, loan contract forms and so on).
4. To conclude an agreement on the protection of an object with a security company (It’s not advisable to keep your own security guard on staff; it’s optimal to hire a specialized security company to provide security services).
5. Purchase pawnshop software. (Purchasing software significantly optimizes the work of a pawnshop, speeds up the terms of a loan agreement, helps track repayment periods, and much more).

After completing all the steps, you just have to cut the red ribbon and start a business !!!

What is a pawnshop? What types of pawnshops are there in the Russian Federation? When it is not possible to get a loan from a bank, and a person has a valuable item at his disposal, one of the ways out of a difficult financial situation is to contact a pawnshop.

Pawnshops can issue loans for a short period, with a minimum amount of time.

Conclusion of a loan agreement in total takes, as a rule, no more than 20 minutes.

Important!

There are various types of pawnshops specializing in a certain type of mortgaged property.

Legal regulation of pawnshops

The activities of pawnshops are regulated by the Federal Law of July 19, 2007 No. 196-ФЗ “On Pawnshops” (hereinafter referred to as the Law No. 196-ФЗ). A pawnshop is a specialized commercial organization, the main activities of which are the provision of short-term loans to citizens and storage of things (clause 1 of article 2 of Law No. 196-FZ).

At the same time, the pawnshop is obligated at its own expense to insure in favor of the mortgagor the things taken in the full amount of their valuation. The assessment is established by the pawnshop at the time of taking things as collateral. A pawnshop is not entitled to use and dispose of pledged things (Clause 3, Article 358 of the Civil Code of the Russian Federation).

Regulation of activities and supervision of the activities of pawnshops is carried out by the Bank of Russia (Clause 3, Article 2.3 of Law No. 196-ФЗ). The pawnshop is required to comply with the instructions and requests of the Bank of Russia and submit documents to the Bank of Russia containing a report on its activities and on the management of the pawnshop (Clause 8, Article 2 of Law No. 196-FZ).

Types of pawnshops

What types of pawnshops exist on the market in the Russian Federation? The types of pawnshops are primarily determined by the type of collateral accepted. So, they distinguish:

Note.

Evaluation of the pledged thing is carried out according to the rules of the agreement of the parties in accordance with the prices of things of this kind and quality, usually set in trade at the time and place of its adoption as a pledge or for storage (Article 5 of Law No. 196-FZ).

Pawnshops with various types of collateral are common only in large cities - Moscow, St. Petersburg, Yekaterinburg.

Pledge paperwork

To obtain a loan secured by property, the client must be an adult and capable citizen of the Russian Federation, have a passport with him. A loan agreement is concluded with the client, the essential conditions of which are: the name of the pledged thing, the amount of its assessment, the amount of the loan provided, the interest rate on the loan and the loan term.

A loan agreement is executed by issuing a pawn ticket to a borrower by a pawnshop. Another copy of the security ticket remains at the pawnshop (Clause 4, Article 7 of Law No. 196-FZ).

A loan agreement is concluded only in writing and is effective from the moment the loan amount is transferred to the borrower and the pledged thing is transferred to the pawnshop (Clause 2, Article 7 of Law No. 196-FZ).

Here we will consider an article on how to open a pawnshop from scratch, what is needed for this, what documents and permissions are required to open it.

The process of opening a pawnshop is very different from creating a regular company. The main thing to keep in mind is that its activities are very strictly regulated by law. If you fail to comply with the requirements of the law, substantial penalties await you. To avoid possible problems, we will analyze from scratch the process of organizing a pawnshop and all possible requirements for it.

Instructions on how to open

So, let's look at the step-by-step instructions on how to open a pawnshop.

Legislation

Firstly, it is necessary to study the laws governing the activities of a pawnshop.

The main document is the Federal Law of July 19, 2007. No. 196-FZ “On Pawnshops” - reads as follows:

• This is a specialized commercial organization that has the right to carry out two main activities: providing the population with short-term loans and storing things.
• The pawnshop is forbidden to engage in other activities.
• The obligation of this institution is insurance of things pledged for the entire loan term.
• All items deposited or pledged must be evaluated.
• The pawnshop is required to conclude an agreement when granting a loan. It fixes the main points of the transaction (rate, amount, loan term, repayment date, valuation and name of the pledged thing).
• One copy of the security ticket must be transferred to the borrower. The second is stored in a pawnshop.
• By signing the contract, the borrower agrees to return the money received, as well as interest, within the terms agreed upon in the contract. In the event of a loan overdue for a period of more than 1 month, the pawnshop has the right to sell the property held as collateral.
• Implementation is done through sales. If the price of the item is more than 30,000 rubles, then the pawnshop is obliged to sell this item in the course of public bidding in the form of an open auction.

Please note: the law provides for pawnshops only issuing loans and storing things. Therefore, for the sale of property will have to open another legal entity.

The second document is the order of RosFinMonitoring No. 203 dated August 3, 2010 “On approval of the Regulation on the requirements for the training and education of personnel engaged in operations with cash or other property in order to counter the legalization (laundering) of proceeds from crime and the financing of terrorism” . For non-compliance with the terms of this order, a legal entity is held administratively liable, and if further violations are discovered, it may even be closed.

Pawnshops dealing with precious metals and stones must also comply with the requirements of the Order of the Ministry of Finance of the Russian Federation No. 68n of August 29, 2001.

Taxation and its features

The tax code requires pawnshops to apply a common taxation system. Keep in mind that the interest received is not subject to VAT, but storage activities are taxed. Accordingly, a pawnshop is required to carry out separate accounting.

Justification of economic feasibility

Before you open a pawnshop, you need to understand its future effectiveness:

1. Rate investment on opening;
2. Predict the consumable;
3. To calculate the required number of loans per month, which will not only be able to cover all costs, but also make a profit.

Example

For calculations, take a hypothetical pawnshop in Moscow.

To open, you need a room (40 m2). For its equipment, you will need 500 thousand rubles: repairs, the purchase of furniture, office equipment, special equipment, safes, accounting programs and the costs of advertising a pawnshop. To carry out direct activities, money is needed to issue loans. In our case, 10,000,000 rubles.

Monthly expenses will amount to about 800,000 rubles: rent, salary, security, insurance, advertising, etc.

The average rate in pawnshops is 10%. Focusing on this rate and expenses, we can find out that the breakeven point will be fixed at 8.8 million rubles. This is exactly the amount you need to issue per month in order to "go to zero." But we need a profit, so it should give out a lot more per month. Using the methodology for calculating the working capital of a pawnshop, you can make independent calculations. For profit, visits must be at least 40-50 per day. Subject to these conditions, after 3-6 months you will reach the breakeven point. In 5-7 years, the pawnshop will pay for itself. This period largely depends on the volume of issues, location, advertising and the competitive environment.

Register a company - step by step instructions

What do you need to open a pawnshop? If the economy of an undertaking suits you, but the laws do not scare? So it's time to move on to the registration process:

1. We register a legal entity with the Tax Inspectorate. The organizational form is better to choose "LLC".
2. We select the types of activities prescribed by law (OKVED 65.22.6., 67.13.5., 74.14).
3. We register the organization with the Federal Service for Financial Monitoring. After registration, it is given 30 days.
4. We also register with the Assay Office, since your organization - a pawnshop - will be engaged in the circulation of precious stones and metals.
5. We select an insurance company and insure in favor of the mortgagors all things accepted as collateral. It is easier to take out insurance for a certain amount. This eliminates the need to insure every thing. Remember, this procedure is carried out at your own expense!

Choosing the right location

The payback period of a pawnshop depends to a large extent on its location. Therefore, when choosing a place, we focus on the following parameters:

• Choose the first or ground floor (the entrance should not be from the yard).
• We provide a large "cross" due to being in a densely populated area.
• The pawnshop premises must be suitable for the SES and complies with the fire safety requirements.

The final stage

We have passed all the main stages. It remains the case for small:

1. Form a pawnshop team;
2. Define a work schedule;
3. Develop internal documentation;
4. Provide security for the facility by entering into an agreement with a security company;
5. Purchase software.

We hope that this article on how to open a pawnshop will help you start your own business.

The crisis entails the formation of various problems, and the lack of financial resources is one of them. This difficulty is relevant for Russian and other companies. The problem did not pass by the citizens, our compatriots who need funds. What to do in this case, because taking into account obtaining a long-term loan is not always relevant, and money is needed here and now. Of course, in such a situation, the idea arises to turn to a specialized organization - a pawnshop, which is ready to provide the necessary money for the required period.

People who decide to start their own business often think about starting a business with a pawnshop. Moreover, this venture from scratch can lead to good income. The profitability of conducting this activity often reaches 40%, which is good for this kind of organization.

Essence of the work

This is not to say that running a pawnshop is simple and easy. In fact, the business owner will have to solve many organizational issues, as well as conduct a lot of paper work, which makes many entrepreneurs abandon the venture in favor of another matter.

Note:  the difficulties of this business lie in the specifics of the legislation and the need to comply with certain requirements, otherwise - disobedience is fraught with serious fines.

In order to avoid these difficulties, it is worth taking into account all the requirements and subtleties presented by the state to conduct activities.

The work of an organization of this type is based on the fact that it provides a financial loan without guarantors and the need for an income statement. Property is taken on bail. There is no definite division of activity into types. When analyzing the domestic market, several main formats of activity can be noted:

1. Specialization in work with jewelry and other metals. By type of activity, it looks more like receiving jewelry than a pawnshop, because the client is not entitled to take his things back.
2. Automobile establishments when the pledge is a vehicle.
3. Reception of jewelry and household appliances.

According to the current legislation, this business has several definitions and subtleties of reference, taken into account:

1. A pawnshop is a commercial organization engaged in the issuance of secured loans and the storage of other people's property. In addition to these functions, they are not entitled to perform others.
2. The loan office is obliged to insure property transferred by the client as collateral.
3. The main obligation of the organization is to make an assessment of the value of the property, which was transferred on bail.
4. Upon the issuance by the institution of a pledge, it is necessary to conclude an appropriate contract indicating the necessary terms of the transaction.

The pawnshop makes an assessment of the value of property transferred to him on bail

Thus, a pawnshop as a business is a very interesting and promising area, but it requires special time and financial development costs. With a competent approach to the implementation of activities, you can get tremendous results and earn large sums of money for a short time.

How to open your pawnshop from scratch?The question that is asked by an entrepreneur who has decided to open his own business. But, before proceeding with paperwork and finding a place for a pawnshop, you should draw up a business plan and calculate how soon your investment will pay off.

There can be no definite answer to this question, since it is necessary to take into account a number of factors that directly affect the profitability of a business, in particular:

• pawnshop location - it is advisable to locate the enterprise in places with high traffic of potential customers;
• rental cost - the higher the monthly payments, especially at the initial stage, the more difficult it is for an entrepreneur to recoup his costs and start making a profit;
• advertising efficiency - well-organized public relations campaigns attract customers;
• competitiveness - the business owner should study the demand for the services of organizations of this type in a particular area and think of what exactly his pawnshop will be attractive to customers;
• trained personnel - if unskilled employees work in the pawnshop, the owner will lose part of the profit due to their mistakes or inability to communicate with customers.

For the owner of a pawnshop, the first half year from the moment of opening is considered the most difficult period, since at that time the company only gains momentum and often works at a loss. For this reason, more than a third of pawnshops stop their activities at this time. After this period, the profit begins to grow gradually, after a couple of years, even a small pawnshop begins to bring its owner about 100-150 thousand rubles a month.

But even compliance with the above conditions is not a guarantee of business profitability. For this reason, it is necessary to draw up a detailed business plan, calculate all the costs and risks, then the probability of opening a profitable pawnshop will increase significantly.

What do you need to open your pawnshop?

Before deciding to open a business, it is worth choosing its specialization. So, pawnshops can be of the following types:

1. Pawnshop- the organization takes cars as collateral for the issued cash. Such a business is very profitable, but for the organization of its work will require additional space for cars.
2. Antique- here, as a guarantee, paintings, expensive fur clothes, antique souvenirs, rare coins and other things of antique value are accepted.
3. Technical- here the mortgaged things are household and other appliances that the client leaves in return for the money received.
4. Jewelry- The most common type of business. Such pawnshops accept precious metals and precious products made from them.

Often there are pawnshops of mixed types, in which, for example, a client can lay both a mobile phone and gold earrings. Such an integrated approach allows you to make big profits and attract an increased number of customers.

The entrepreneur, at the stage of making the decision to open a pawnshop, should study the legislative acts regulating the activities of the enterprise:

• federal law No. 196, which spells out the main aspects of activity;
• rosfinmonitoring order No. 203 dated August 3, 2010, which stipulates the requirements for education and training;
• order of the Ministry of Finance of 2001 No. 68n, which lists the requirements for the activities of pawnshops dealing with precious stones and metals.

It is important to take into account that the law requires pawnshops to apply the general taxation system (general taxation system), while the storage of items accepted as collateral is subject to VAT, but the interest received is not. In accordance with this provision, the entrepreneur will be required to keep tax records for each type of activity.

Step-by-step instruction

The first thing to do at the planning stage of the opening is to study the market for these services. A businessman should:

• carefully calculate the risks, costs of opening and organizing an enterprise;
• find out how much pawnshops are demanded in a particular village and area;
• whether there is competition, whether he can offer customers more favorable conditions than competitors.

If preliminary economic calculations suit the entrepreneur, the company should be registered with the official authorities:

1. Register with the tax office as LLC, specifying the relevant OKVED 65.22.6., 74.14., 67.13.5.
2. Register the pawnshop within thirty days from the date of registration in the Assay Chamber and in the Federal Financial Monitoring Service.
3. Insure in the selected company that provides these services, the things taken in favor of the mortgagors. It is advisable to take out insurance for any amount so that you do not have to insure each thing individually.

Selection and preparation of premises

The choice of place should be approached responsibly: a considerable share of success depends on the location. So, the best place for a pawnshop will be a shopping center or a separate room located in places with high traffic of customers. It is very good if parking is located next to the pawnshop being opened, and the room itself is not far from busy public transport.

The pawnshop does not need an expensive elite atmosphere - it is enough to put sound chairs and a table in the customer area, as well as equip the working area. But do not neglect security - you should establish:

• alarm and panic button for quick call of security;
• metal bars on the windows, in the place of separation of the working and client areas;
• metal doors;
• bulletproof glass;
• video surveillance system.

The set of equipment for work will depend entirely on the preferences of the entrepreneur and the type of pawnshop, but in any case you will need:

• office equipment - printer, computer with licensed software, high-quality Internet, telephone;
• special equipment - for determining the authenticity of products, high-precision weighing equipment, etc .;
• trade equipment - racks, counters, information boards, shop windows, tables and chairs for staff, visitors.

Advertising

In order to know as many customers as possible about the pawnshop, one should not spare money on advertising. First of all, you need to come up with a name for the pawnshop - it should be sonorous, memorable, not too long. Then you should order an eye-catching sign, which will indicate the name and mode of operation.

It will not be superfluous to order advertising in the media, hire promoters to distribute leaflets, organize company groups on social networks. An excellent solution is to hold an action on opening days, for example: “For first customers, the interest rate is halved!”.

Hiring staff

To organize the work of a small pawnshop, a minimum staff consisting of qualified and certified workers is sufficient:

• manager
• appraiser;
• security guard;
• accountant;
• merchandiser.

Often the functions of several employees are assigned to one employee, but this is best done only if the pawnshop is small, otherwise the employee will not be able to cope with all the responsibilities.

Business plan

When preparing a business plan, the most important thing is to calculate all the costs and estimated profitability, profit. So, it is advisable to open a pawnshop, the profitability of which is at least 30%.

When writing a business plan, it is important to consider the initial costs:

• for paperwork - 50,000 rubles;
• repair and equipment of the premises - 1 000 000;
• purchase of office equipment and equipment - from 300,000;
• advertising - 150,000.

Initial costs include funds intended for issuance to mortgagors (at least 9 million rubles), and money intended to finance activities before they become a plus (at least 2 million).

You should also take into account the monthly costs, which include:

• salary payments to employees - from 300,000 rubles;
• rent - individually, depending on the location of the premises can vary from several hundred to several thousand rubles per square meter;
• hiring security - from 150,000 rubles;
• other expenses, tax deductions - from 200,000 rubles.

To calculate the profitability of the business, you should calculate how much interest will be the net profit from the proceeds. For example, with a millionth revenue, the profit is 142,200 rubles, respectively, the profitability of the enterprise will be only 14.2%. In the first months of operation, such indicators are not low, but after 3-6 months they should increase at least twice - this will mean that the pawnshop pays for itself and begins to make a profit.

The average cost of opening a pawnshop will be 12,000,000 rubles, this amount will include:

• funds for granting loans;
• initial expenses for the repair of the premises, the purchase of equipment, furniture, appliances;
• cash to finance activities at first.

With an average monthly revenue of 1,000,000 rubles and net profit in the amount of 178 thousand rubles, the pawnshop will fully pay off for 84 months of work.

There is another option for opening your own pawnshop.  - franchise acquisition. This method will cost the entrepreneur more than an independent discovery, but will save on advertising (as a rule, franchisors provide all marketing materials). The advantage of opening a pawnshop on a franchise is brand recognition - people who want a secured loan often go to pawnshops with a famous name. And this fact is a guarantee of a constant flow of customers.

Key Business Benefits are the possibility of rapid development and high demand among the population for the services offered, therefore pawnshops are becoming more popular as the main type of entrepreneurial activity. With proper efforts, well-coordinated and clear work, a sufficient number of investments, a pawnshop will bring in revenue after half a year from the moment of opening, which will grow annually.