Make Money With A Pop-Up Shop
Recently, pop-up stores have become widespread. As examples of successful pop up shops increases, it continues to grow. In the US, there is 2043 pop up stores in 2009 while it increases to 2380 in 2013. Nowadays you can see more pop-up shops in many cities. According to “The Meteoric Rise of Pop-up Retail” report, Los Angles, New York, London, Stockholm, Tokyo, Berlin, Paris, and Shanghai are the top cities for popups.
Today, even big brands like Google use pop-up stores.
What Is A Pop-Up Shop?
A pop-up shop is a temporary retail store. These temporary locations are preferred by different users for different purposes.
For instance, known brands use pop up store business plan:
- To directly interact with customers,
- To introduce new products,
- To understand customer behavior,
- To clear out stock or excess inventory.
Today, as online shopping spread, many merchants sacrifice from physical stores. They get rid of the costs in return. Online merchants frequently use pop-up shops
- As an extra branding tool.
- To test out a physical retail environment and get new customers.
- Enable the current customers to interact physically that is not possible otherwise.
Self-employed small-scale entrepreneurs even freelancers can use pop up shops to introduce their product or service.
In short, pop up shop meaning may change based on the user and content.
How Does The System Work?
In addition to different purposes, there are a variety of ways to do it.
- Rent out a portion of a retailer or gallery owner.
- Have a booth area at a craft fair, farmers market or other events depending on the sector.
- Rent a vacant storefront for a short period.
Unlike how to start an online pop up shop, the audience of the pop-up stores is people, passerby. Because of that, the location of pop up is significant for the success of a business. Good location is a busy route. Moreover, one should use innovative techniques to attract these people.
How You Can Earn By Pop Up Shops?
In fact, everyone can start pop up shop. Up to now, big brands like Danone have already experienced this concept. Popups also become popular among local artists, fashion designers, makers etc.
As an individual entrepreneur, you can also make pop up shops as a side job and earn extra money. For instance, mobile food trucks, handmade crafts are common as a personal side job. In general, the audience is youth and the most popular issue is “fashion”. However, this concept works for a variety of business.
To become a successful pop up shop to rent you can find some tips below:
- Choose your location. According to your audience find a place where potential customers pass frequently. It is an advantage if your location also near to complementary businesses.
- Promote your pop up: Create innovative methods to reach more and more people. You can use typical ways like a booklet, email marketing, social media as well as some creative ways like apps from mobile operators, SMS marketing etc.
- Turn it to an event: You are able to attract more people if you make pop up as a kind of show, as an event and have fun with it.
The Requirements For Pop Ups
The occupational requirements for pop-ups differ based on your product and service. You need a place as a store and equipment your product/ service necessitates. In addition to these, there are legal requirements. These may change based on the region you serve.
- Business License: Pop up shops are not exempt from licensing. If the city or state you will serve requires a business license to operate, you should get a license for your pop up business too. It is not important to work actively 1 day or 15 days a month. In addition, some services necessitate special licenses. For instance, you should get a special license if you want to sell food or alcohol.
- Leasing: If you negotiate a lease for popup shop, be careful about the contract and also aware of your rights. Temporary contracts don’t mean you will accept everything. Are you allowed to for instance decorate the walls? What are the operating hours?
- Incorporate: Even if it is not a requirement, incorporating your business may give you special advantages. It can protect your personal assets from any risk of business losses and vice versa.
- In the case of hiring employees: If you hire employees, you should meet the requirements of labor law. For instance, if required you should pay the minimum wage, offer health insurance etc.
In some cases, if you are planning to expand your business through pop up concept, it may better to hire experts like an attorney, financial adviser etc.
How Much Time Should I Spend?
You can do pop up shop as a side job as well as a complementary activity to your main activity. The time you need to spend depending on the way you use the pop-ups. For instance, you may prefer to get your truck and actively work whenever you work; or you may do it as a full time for a specific period.
Costs and Profits
There are many factors affecting the cost and profit of your pop up business. To get an idea about the average cost of pop up shop here is the information about the costs of a popular chocolate brand:
- Pop up shop: $1,500 $10,000
- Kiosk: $10,000 $30,000
- An inline stores: $20,000- $100,000
- Traditional brick-and-mortar store: $25,000 and up
The money you will earn also depends on many factors. As a real-life example, the fashion brand Finchittida Finch gets approximately $2,600 in the first month started to use pop up content.
Where You Can Find The Right Location
There are different online platforms you can use to find the right location for your business.
- The Store Front: You can find space you need with writing the city, your project, and budget. Moreover, you can get help from experts.
- Appear Here: You can look for the right space by creating an account.
- Square: You can filter your search based on the size of your Project and business type.
There are examples of pop up shops experienced both by big companies like Magnum and Nike; and also by personal brands like Squish Marshmallows at Union Square Holiday Market or StyleNMotion at founder’s mother’s home.