How Much Money Do Comic Book Stores Make

Start a comic book store by following these 10 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your comic book store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What are the startup and ongoing costs?
Who is your target market?
How much can you charge customers?
What will you name your business?

Luckily we have done a lot of this research for you.

What are the costs involved in opening a comic book store?

The two most significant costs involved in opening a comic book include costs of setting up your physical storefront and costs to purchase an initial comic book inventory.

Assuming you lease a store location, you will likely need to put down a deposit for the lease. In addition, you will need display racks that cost about $300 each. Make sure the retail space is very small and the rent is cheap, but also, if possible, find a store in a good area with decent foot traffic.

For example, a 100' x 15' space (150 square feet) in a high traffic area may cost around $450 per month. That is all you need to present your very best treasures to your customers. You can also use a computer to present a database of your whole collection so that customers can search to see if you have the books they are looking for. This same database can be used on your website if you plan to sell your books online as well.

If you do not already have an extensive collection of comic books to sell you will have to invest in inventory. Having a decent selection of inventory may require an investment of $10,000 to $25,000 to get started.

Read our comic book store purchasing guide to learn about the materials and equipment you'll need to start a comic book store, how much to budget, and where to make purchases.

What are the ongoing expenses for a comic book store?

The ongoing costs are labor (if you have employees), rent, and the cost of the electricity for the lights plus an internet connection and shipping (for physical comics) if you sell online as well. Other expenses include the purchase of new comics, figures, and other related items.

Who is the target market?

Serious ollectors are the lifeblood of this business. The customers who want a rare comic book that is extremely hard to find are good and the ones that maintain more than one type of collection are excellent customers. Disposable income allows customers to pay big prices for the collectibles that they treasure. These are good customers for this business. You hunt for them and they pay good prices to you in order to complete their collection of the comic books they love.

Although the customer types mentioned above are the best for the business, one must not forget the less dedicated customer, or casual fan. These are customers who may only wish to purchase new comics, models, or just make sporadic purchases. Appealing to both hardcore and casual fans will make your shop more successful.

How does a comic book store make money?

A comic book store makes money by purchasing comic books and and reselling them for a profit. The key to this business is to be a successful trader. You must know the fair market prices for rare comic books and you must buy them for less than the going prices in order to resell them for a profit.

Additionally, a comic book store can also make money by selling online. Two alternatives to the traditional brick-and-mortar store business model include:

Online sale of physical comics
Online sale of digital comics

These business models may be more viable for those who do not have the capital to open a physical location and/or can be an additional business that increases revenue in combination with a physical location.

How much can you charge customers?

The rule of thumb in retail pricing is to use a 30% to 40% markup on cost. If you acquire a collectible comic book for $10 then you would want to sell it for $13 or $14. Remember that the market plays the biggest role in determining prices. The rarest comics are the most expensive, while newly produced comics may also carry a moderately high price due to their topical nature. Figures and models are priced similarly.

In addition, there is often a bargaining structure in play at comic shops and as such, customers may expect to be able to bargain for prices. Whether or you not you choose to have set prices is your decision.

How much profit can a comic book store make?

To say that you will get rich in this business would be an overstatement. The idea is to make enough to pay the rent and keep the store open until you find a treasure at a bargain price that you can sell for a substantial profit.

How can you make your business more profitable?

Besides selling physical items in store, you can also buy and sell online and place your most valuable pieces in online auctions with a minimum bid in place to maximize your profits. Bringing your best stuff to comic book conventions and renting a booth to sell items there is another way to make extra money. An alternative business model might involve selling physical comic books online that you publish yourself. You may want to sell digital comics for devices such as Kindle, Android, and on the Internet through systems like ComiXology.

As a sideline business, you may want to offer video games and gaming equipment as well. Because comic book stores that are popular become a place where collectors like to hang out, there is an opportunity for increased profits through things like paid-entry for in-store gaming tournaments or paid raffle entries to win rare comics.

What will you name your business?

Choosing the right name is important and challenging. If you don't already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Comic Book Store Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

Your state's business records
Federal and state trademark records
Social media platforms
Web domain availability.

It's very important to secure your domain name before someone else does.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your comic book store is sued.

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

Small Business Taxes

Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).

You can learn more about small business taxes in these guides:

LLC Taxes
Sole Proprietorship vs LLC
LLC vs Corporation
LLC vs S Corp
How to Start an S Corp

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

This separates your personal assets from your company's assets, which is necessary for personal asset protection.
It also makes accounting and tax filing easier.

The Truic Flame Logo

Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Open net-30 accounts

When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.

Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.

Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.

Get a business credit card

This helps you separate personal and business expenses by putting your business' expenses all in one place.
It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to open a comic book store. Learn more about licensing requirements in your state by visiting SBA's reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Comic book stores may also wish to look into applying for a resale certificate, as a resale certificate allows retailers to purchase goods intended for resale without paying sales tax.

In addition, certain local licensing or regulatory requirements may apply. For more information:

Check with your town, city or county clerk's office
Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.

Music Licensing

Like many other types of retail businesses, comic books stores often play music over a sound system for their patrons. In order to play music in a business setting, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a "blanket" license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP or BMI.

Learn more about music licensing requirements

Certificate of Occupancy

It is generally the landlord's responsibility to obtain a CO.
Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a comic book store.
After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

If you plan to purchase or build a location:

You will be responsible for obtaining a valid CO from a local government authority.
Review all building codes and zoning requirements for your business' location to ensure your store will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company's financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you're unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it's a great place to start for your business.

Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers' Compensation Insurance. If your business will have employees, it's a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a comic book store

Larger retail bookstores have the ability to offer new comic books and related paraphernalia at a lower price. In order to stand out as a smaller comic book store, it is essential to offer things that cannot be found in the larger stores. This can be done in many ways, such as have special comic book signings by the creators, offering giveaways/raffles, and selling rare items, which customers can only find in your store.

Opening this type of business requires careful consideration of the demographics of the target market. It is important to open in a location with a highly visible storefront, in an area with a younger population that has disposable income. To get customers to stop at the store, it is important to locate it in an area that has significant foot traffic passing by the store.

How to keep customers coming back

You need to nurture the interests of your customers in finding the rare items that they are looking for. This is the enthusiasm of the treasure hunt, which you will want to encourage. Ask customers to fill out a profile of things they like and list the rare items that they cannot find, so you can hunt for these treasured items that they want to have in their collection.

More casual fans are harder to attract, but essential for the success of the store. Look for ways to entice these customers, like displaying comics related to new blockbuster movies or video games. Staying up-to-date with pop culture can help you capitalize on the market.

The Truic Flame Logo

Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it's out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn't delay building your website:

All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That's not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We've reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2021 to find the best phone service for your small business.

Recommended Business Phone Service: Nextiva

Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.