Small tobacconist shop

Regular adult customers from the local area, passing foot traffic, and cigar and pipe enthusiasts who want specialist advice.

Retail margin on products sold. Margins on mainstream tobacco are thin because of tax, so many shops rely on higher-margin cigars, accessories and extra lines. Sales of mainstream tobacco have been under pressure from high prices and illegal competition, so revenue can vary widely by location and product mix.

• Retail and customer service
• Stock control and cash handling
• Comfortable following strict compliance rules
• Knowledge of cigars and accessories (a plus)

• Tobacco retail licence or registration rules, which differ by state and territory, so check yours before signing a lease
• Plain packaging, display and advertising restrictions, and age verification rules
• Rules on selling vapes and nicotine products, which are tightly restricted, so check what you may legally stock
• Illegal tobacco competition and thin margins on legal stock, so test your numbers carefully
• Theft and robbery risk, so check security, cash handling and insurance (public liability, contents, business interruption)
• Workers compensation insurance and ABN or GST registration as you grow

Estimates suggest startup costs are typically around $30,000 to $120,000, depending on the premises, fit-out and opening stock. Check licence rules in your state or territory before signing a lease.

Monthly revenue is typically estimated at around $15,000 to $50,000, depending on location, foot traffic and what you stock. Margins on legal stock can be thin, so test your numbers carefully.

Check tobacco retail licence or registration rules, which differ by state and territory. Also check plain packaging, display, advertising and age verification rules, restrictions on vapes and nicotine products, security and insurance, and workers compensation if you hire.