Hookah and shisha retail shop

Adult hookah smokers, from regulars who visit weekly to people buying their first hookah or a gift.

Retail margin on shisha and consumables that customers re-buy often, plus higher-priced hookahs and accessories. Repeat customers are the core of the business.

• Product knowledge and honest advice
• Retail sales and customer service
• Inventory ordering and cash handling

• State and local tobacco retail license, check which agency issues it and how long approval takes
• Federal minimum age to buy tobacco is 21, so check ID every time and train any staff
• FDA rules on waterpipe tobacco (labeling, warnings, which products may legally be sold), check your suppliers' compliance
• Some states and cities restrict flavored tobacco or limit shop locations near schools, check before signing a lease
• State tobacco taxes and sales tax registration
• Higher insurance costs, ask brokers whether general liability will cover a tobacco retailer
• Banks and payment processors can be cautious with tobacco shops, so ask early

Startup costs are typically around $40,000 to $150,000, depending on the storefront, fit-out, opening stock and licensing. Insurance may cost more for a tobacco retailer, so ask brokers early.

Monthly revenue is typically around $12,000 to $60,000, depending on location, product range, pricing and how many regular customers you build. Plan for a full-time commitment, typically 40 or more hours a week.

Things to check include state and local tobacco retail licenses, the federal minimum age of 21, FDA rules on waterpipe tobacco, flavored tobacco limits, location limits near schools, and state tobacco and sales tax registration.