Cigar aficionados are like wine connoisseurs; in fact, the cigar industry is not really different from the wine one, as both deal with picky customers. However, if you play your cards right, you can make a fortune from setting up a cigar business. While the risks often associated with this business are many, it remains one of the most lucrative industries in the world.
So, if you are thinking about dabbling in the cigar business, read on to get a solid idea about why this industry can be profitable despite the risks.
The first thing any business owner thinks about when starting a new venture is longevity. Think about it; you definitely do not want to invest all of your capital in a business that is going to collapse in a few months. Due to the disruptions that hit the market every day, it is common to notice some dips in demand in certain fields like the real estate business.
On the contrary, such disruptions never really impact cigar businesses thanks to the continuous demand for their products. Even if your business is relatively small, you do not have to worry about market changes, as you can still maintain a steady stream of profits despite any fluctuations.
Easy marketing strategies are another aspect that sets the cigar industry apart from other business areas. As opposed to other types of ventures, you do not have to spend thousands upon thousands of dollars every year on marketing. Nowadays, most cigar businesses are leaning more towards online marketing to achieve their growth objectives.
As you can see when you click here, setting up an online store and offering competitive deals on various products are the main marketing strategies used in this business field. By offering premium deals, fast delivery, and impeccable customer service, cigar companies can now reach a wider audience. Of course, this translates into more revenue and growth in the long run.
When setting up a business, joining a competitive field is certainly intimidating, especially for first-time business owners who do not have much experience. Well, the good news is that the cigar industry is not oversaturated, which offers a great opportunity for beginners to start their own business without any undue effort. According to recent statistics, there are only 930 companies in the cigar industry in the United States.
So, this, of course, offers an incentive for newcomers to create their own distinctive brand without having to worry about excessive competition. The bottom line is that the cigar industry is big enough for all aspiring business owners.
As we have previously mentioned, continuous demand is a big part of the cigar business field, but have you ever wondered why? A huge misconception that many people have is that they think the cigar industry only focuses on, well, cigars. However, this couldn’t be further from the truth.
While cigars are the highest-ranking product when it comes to sales, cigar businesses cater to a very wide customer base including non-smokers! Yes, you read that right; non-smokers often contribute to the revenues of the industry because most cigar lounges offer a wide array of products other than cigars.
On the other hand, the industry also caters to the diverse preferences of smokers by offering tobacco of different qualities, a wide variety of cigars, and an array of cigar flavors. This is why many business owners consider the cigar industry inclusive. Thanks to its wide customer base, the cigar business is still going strong.
Low Costs Compared to the Profits
Any business owner knows that they have to invest a huge sum of money in their business if they want it to stay afloat. Nonetheless, when it comes to the cigar business, the costs are very minimal compared to the substantial profits the business makes every year. While you need at least $500,000 to start your business and must pay tobacco taxes, selling only a dozen cigar boxes a month can help you earn up to $3000.
So, just imagine how much those cigar business owners earn annually! This huge profit margin helps most cigar businesses break-even faster. Moreover, the cigar market has an expected 2.5% annual growth rate. Thus, enjoying immense profits without breaking the bank is pretty easy in this business field.
Although the cigar industry often entails paying high taxes, the profits this business generates outweigh the risks. Cigar business owners usually have an easy time capitalizing on their revenues thanks to a wider customer base, continuous demand for tobacco products, easy marketing strategies, and limited competition.
So, if you have been thinking about investing in this industry, rest assured that you are going to get your money’s worth, as dabbling in the cigar industry is a markedly safe business venture.