How To Start A Mall Kiosk Business

How To Start A Mall Kiosk Business - Background About This Business:

A mall kiosk business is the type of business where the owner can be creative and sell their products and services in a high traffic area without the high cost of retail store space.

Once owned and run by individual owners who resold items they purchased wholesale, mall kiosks have been expanding as franchises around the world. Think about Kodak alone and you can probably count the number of times you had seen kiosks in mall areas, especially during the days of dropping off film and picking up pictures.

Having a mall kiosk is often having the best of two worlds: a retail shop and sometimes franchisor backing without the initial cash outlay with other traditional brick and mortar establishments.

How To Start A Mall Kiosk Business -Tasks And Skills Needed To This Business:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a mall kiosk:

Bookkeeping - you must keep excellent records for tax purposes

You must be able to handle money accurately and do bank transactions

You must be good with managing money and cash flow

You must deal with buyers and suppliers

You must make sure everything is done in lawful and ethical manner

You must know how to properly market and promote your kiosk business

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a mall kiosk:

You need to open the kiosk early in the morning and set out stock as well as put the stock away at closing and secure the kiosk
This task is Performed Daily

Inventory needs to be performed in order to keep your items in plentiful stock
This task is Performed Daily

Items for sale need to be inspected for dust and/or damage and displayed well
This task is Performed Daily at Varying Hours

Items and kiosk needs to be monitored at all times to avoid theft
This task is Performed Daily

You must visit the bank to make deposits and make sure you have change for customers
This task is Performed Daily and As Needed

How To Start A Mall Kiosk Business - Approximate Daily Hours Needed Run This Business:

General Hours of Operation: - When your business is open - You're looking at 10:00 a.m. to 9:00 p.m.

Hours Needed to Prepare - Before Opening and After Hours Activities - Plan to spend about an hour each in the morning for setup and evening for storing inventory and closing.

Number of Employees Needed To Run This Business:

Minimum Number of Employees - During the Start Up Phase - You cannot feasibly run a mall kiosk by yourself; it's too many hours to go without a break. You should have at least one other partner or employee to come in to relieve your for breaks, to do bank transactions, and meal times.

In addition, it is recommended that two people operate a kiosk to handle sales quickly as well as monitor the kiosk for theft attempts.

Number of Employees - Once Your Business is Up and Running Successfully

Bookkeeper to track transactions, bank account, and inventory

Customer service help for items that need replacing or additional orders

If your kiosk is portable, you could have someone do set up and break down of it each work day

Skill Requirements for This Business:

Retail management, people-skills

Passion and knowledge of the products being sold

Inventory management skills

Ability to create eye-pleasing displays

Licenses:

Though each state/province city and town have different laws, you must contact your local office to get the proper permits to operate a kiosk. You'll also need documents and any agreements between the landlord of the mall, some of which are posted by your business licensing on a kiosk wall or on a table near the cash register.

Approximate Minimum Start up Cost:

Bare Essential: - Starting a mall kiosk is fairly inexpensive compared to other types of retail businesses; as low as $1,500 versus $10,000 per month for a retail store space.

Minimal Exposure - If you want to expand your business, you are looking at $5,000 - $10,000. With this amount of funding, you'll be off to a good start with more stock, more kiosks at other locations, and some operating money to run and market your business.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment:

Cash register or lock box
A merchant account for accepting credit cards
Comfortable seating and card tables for displaying products
Cell phone to have someone bring in more stock if needed and to give you breaks
Computer for ordering products from supplier(s)

Supplementary Equipment: - Equipment that you can acquire to once your business is off and running:

Additional, bigger, or better signage
Video camera for monitoring transactions and any theft
Locking showcases
Printer
Fax

Monthly Expenses To Consider:

Space rental
Phone (some prefer a toll-free number for business-only)
Internet access
Business insurance
Advertising, including website design and hosting
Kiosk rental
Merchant fees (depending on your bank, credit card processor, etc.)
Employee wages
Professional Fees - accountant

Special Requirements For This Business:

You must have the ability to work long hours, be punctual, and keep accurate inventory and records.

May require heavy lifting and ability to reach high areas for hanging items.

Pros And Cons:

The Pros of Running a Mall Kiosk:

There can be a lot of profit to be made with a mall kiosk

Inventory can be changed easily according to consumer demand

Stock is less to put out and price and inventory easier to manage

Cheaper in overhead and the same exposure as a conventional storefront

You have the flexibility of selling products along with services (such as cell phones)

The Cons of Running a Mall Kiosk:

You may have to work many hours straight without a break

There is a lot of standing while dealing with customers

You must go to extra efforts to not appear "fly-by-night" so that customers understand that you operate a stable business with ongoing customer service

Susceptibility to theft

Products need to be removed and secured each night and put back out in the morning

Type of Customers You Need to Attract:

The types of customers that you need to attract are, as are many mall-goers, impulse-buyers. Kiosks that do very well keep up with the latest trends in their industries and are quick to put new items out for display.

Statistics:

One thing has been certain during the recession: retail storefronts have been closing up shop while kiosks have been doing fairly well due to their much lower overhead.

If you are looking at starting a kiosk franchise, the franchisor or "mother company" will have the statistics on sales in various locations at different times of the year.

You can also find statistics and an abundance of kiosk information at Specialty Retail Report.

Revenue:

The amount of money you can make depends largely on what items you are selling. In the case of a mall kiosk that sells a service, such as cell phone connectivity, you would make commissions on your sales.

Resources:

Industry Specific websites:

Specialty Retail

Courses:

The Kiosk Expert

Equipment:

NBI

Kiosko USA

Supplies:

Kiosk Market

Fixtures Group

Forums:

Mall Kiosk Forum

Associations:

American Kennel Club (AKC)

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