How to Start a Bookmobile Business

Start a bookmobile business by following these 10 steps:

1. Plan your Bookmobile Business
2. Form your Bookmobile Business into a Legal Entity
3. Register your Bookmobile Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Bookmobile Business
6. Get the Necessary Permits & Licenses for your Bookmobile Business
7. Get Bookmobile Business Insurance
8. Define your Bookmobile Business Brand
9. Create your Bookmobile Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your bookmobile business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

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

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

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 Business 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.

What are the costs involved in opening a bookmobile business?

The costs for starting a bookmobile business can vary considerably, depending on your requirements. Buying a new vehicle, equipping it for business with shelves, etc., and purchasing an inventory of new books could cost more than $100,000. On the low end, you could purchase a used vehicle for less than $5,000, do the renovations yourself, and begin with a stock of used books. In this case, you could potentially get started for $10,000 or less.

What are the ongoing expenses for a bookmobile business?

The average annual cost of keeping a bookmobile on the road is around $200,000, according to the Association of Bookmobile and Outreach Services (ABOS). The need to continually replenish your book inventory is obvious, but you also must prepare for other ongoing expenses like vehicle repairs. You’ll likely need to drive your bookmobile every day, which results in wear and tear. As with any work vehicle, you should budget for repairs as part of your business.

Who is the target market?

A bookmobile business can serve multiple market segments. Literature enthusiasts, students, children, the elderly, and people without access to a nearby library or bookstore all represent potential target markets.

How does a bookmobile business make money?

Bookmobile businesses make money by selling books and related items to the public. Some bookmobiles may operate as nonprofits, such as those run by libraries. Nonprofit bookmobiles typically receive public funding.

How much can you charge customers?

A bookmobile business sells similar products to bookstores at similar prices. A typical paperback book can cost between $9.99 and $19.99 while hardcover books tend to cost $27.99 and up.

How much profit can a bookmobile business make?

Independent bookselling typically isn’t a highly lucrative business. Most independent booksellers only manage a 2 percent to 3 percent profit margin. If you can minimize your bookmobile operational costs, you may be able to save some money over what you’d pay renting a brick-and-mortar space for your business. But, you should still expect to run on fairly thin profit margins.

How can you make your business more profitable?

You can make your business more profitable in several ways. First, try to find items to sell in addition to books because you often can make a better profit margin on them. Items like bookmarks, journals, and themed souvenirs can help you boost your revenue. If your market demand will support it, operating more than one bookmobile is another way to make your business more profitable. Once you expand to multiple bookmobiles and can serve more of your area, you can increase revenue while benefiting from economies of scale.

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 bookmobile business is sued.

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.

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!

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.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money 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.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

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 operate an affiliate marketing business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

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.

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.

Is this Business Right For You?

Book lovers make obvious candidates to start a bookmobile business. But, a passion for books isn’t enough — you also must enjoy interacting with the public and traveling a fair bit. If you love books and want to share that love with others in a mobile environment, you’re probably the right fit for this business idea.

What happens during a typical day at a bookmobile business?

A typical day at a bookmobile business starts with preparing the bookmobile for travel. You may already know your route or you may need to determine that before you hit the road. Once you head out, you must get your bookmobile safely to your destination and open for business before you can start serving the public.

 

After you open for business, you’ll spend your time helping customers and keeping your inventory organized. Customers will ask for suggestions, and some may be quite eager to talk for hours about their favorite books. Your job will require the ability to successfully juggle friendly customer service with the practical needs of running your business.

At the end of the day, you’ll need to close up shop and prepare to hit the road again. Once you return to your home base, you must prepare for the next day and lock up.

What are some skills and experiences that will help you build a successful bookmobile business?

Book knowledge is one of the most important skills a bookmobile business owner needs because many of your customers will ask for recommendations. The more widely you read — both fiction and nonfiction books — the better equipped you’ll be to provide personalized recommendations and build rapport with your customers.

Customer service is another key skill bookmobile business owners need. To attract customers and keep them coming back, you must make a positive impression and know how to keep customers happy.

Auto repair experience is another useful, but perhaps not obvious requirement for this line of work. Like all automobiles, bookmobiles can break down from time to time. The better you are at fixing your vehicle, the less money you’ll need to spend on repairs.

What is the growth potential for a bookmobile business?

The growth potential for a bookmobile business depends on the size of the market in which it operates. A bookmobile business in a rural area, for example, may be able to meet market demand with a single bookmobile. In contrast, a bookmobile business in an urban area could expand into operating multiple bookmobiles to meet local demand. Another popular option for expansion is to open a brick-and-mortar bookstore after your bookmobile business develops name recognition.