Start a glasses 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 glasses 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 glasses store?
As with most businesses, location is key. Take the time to find a space that sees a good deal of pedestrian traffic each day. Most consumers wait until they have ample time to consider their glasses options. For this reason, shopping areas are an ideal location, as many of the pedestrians are enjoying a leisurely stroll. The average cost of a 400 square foot optical shop is $30-$50 per square foot. Once you have your location, there are a number of other items you’ll need to budget for, such as:
Items you need include:
- Equipment and tools - to assist in reducing expenses, many business owners purchase items used or lease many of these items can be purchased used or leased, whichever fits best into your budget
- Business management software
- Credit card machine and cash register
- Proper lighting is critical in this industry
Industry leaders estimate startup costs at between $20,000 and $85,000, depending upon the specific services you wish to offer at your store.
There are a number of franchising opportunities in this market. To qualify, Pearle Vision requires entrepreneurs to possess $100,000 in liquid capital, with a net worth of at least $300,000. Bottom line investment reaches between $410,000 and $622,000. While the initial investment is quite steep, aligning yourself with a well-established enterprise often expedites business growth.
What are the ongoing expenses for a glasses store?
Ongoing expenses are fairly low, with payroll consuming the bulk of your budget. In addition to the standard overhead expenses incurred from running a storefront, a consistent marketing strategy and ample inventory will be your second and third largest expenses.
Who is the target market?
A study conducted by the Vision Council of America revealed that almost 75% of adults require vision correction of some kind. 64% of those polled prefer glasses over contacts. These individuals will comprise a large portion of your client base. Children and teenagers in need of corrective lenses will also come to you for assistance. Additionally, many eyewear stores serve the consumer with 20/20 vision who is shopping for glasses to complement their wardrobe or complete the look they're striving for.
How does a glasses store make money?
A glasses store generates revenue through the sale of each pair of glasses. Some charge a fee for services such as eyewear adjustments, while others offer these services free of charge.
If your company also employs a professional optometrist, you can also make money by offering eye exams and basic eye care at a competitive rate.
How much can you charge customers?
Eyeglasses vary in price, depending upon a number of factors. A generic pair of glasses will go for $69, while a designer pair can cost upwards of $900. Inventory should match the needs and wants of your customers.
How much profit can a glasses store make?
Established optical shops report average monthly sales of $125,000 to $205,000 per month. Your organization’s profit is dependent upon how many people you employ, the amount of inventory ordered each month, and operational costs.
How can you make your business more profitable?
Successful entrepreneurs are constantly looking for new opportunities to expand their business. To maximize profits, consider implementing one or more of the following strategies:
- Sell frames online to reach a broader audience.
- Develop your own line of eyewear. Many eyeglass manufacturers offer contract manufacturing. You provide them with your designs and they manufacture them in their facility.
- Partner with vendors that offer flexibility and a wide range of style and price points. There’s nothing worse than being stuck with a frame line or style that isn’t selling. You should also make sure that you align your business with a vendor that offers a fair exchange policy.
- Many shop owners have found success working with an optical dispensary management firm (ODM). These consulting firms offer management services specifically designed to fit your needs.
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 Glasses Store Name Generator
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
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your glasses store is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
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?.
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:
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.
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.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
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 operate a glasses 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.
Glasses 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.
Certificate of Occupancy
A glasses store can be run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease office space:
- 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 glasses 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 office space:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for you business’ location to ensure your glasses 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.
How to promote & market a glasses store
In this industry, networking is your most effective marketing strategy. Develop relationships with doctors and eyeglass repairmen in your surrounding area and work out a referral system. Get to know the needs of your customer base. Stock the shelves with those items and market directly to them. Social media is a great resource for promoting your business, sharing the latest trends, and informing your customers of upcoming news and specials. The Opticians Association of America offers members valuable industry data and business tools to assist in promoting your business.
How to keep customers coming back
To build a solid foundation, establish a loyal customer base. Delivering quality products and services is the most effective way to retain current customers and attract new ones. Word travels fast and is often a business’ most effective marketing tool.
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.
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.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Glasses Store In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Eyewear professionals or individuals who are passionate about fashionable eyewear should consider entering this industry. Since much of the day is spent consulting clients, this profession is best suited for entrepreneurs who enjoy working with and helping people.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a glasses store?
The specifics of your daily tasks largely depends upon the role you plan to take within the company. Many optometrists expand their practice to include eyewear sales, in an effort to increase profit margins. If this is your vision, a majority of your day will be spent in the exam room. In fact, entrepreneurs who choose this route advise others just starting out to hire a skilled optician to manage this aspect of their business. A financially savvy optician should be experienced enough to ensure quality goods and services are delivered to each client. If you’re not a medical eye professional, your days will be structured a little differently. If you have the necessary optician experience and knowledge, you could take on the management role yourself.
Duties would include:
- Analyze goods costs
- Set retail prices
- Negotiate with vendors
- Oversee staff to ensure they’re knowledgeable and capable of offering outstanding service
- Networking with medical eye professionals in the community
If your vision includes taking a more hands-on approach, a day on the floor would include the following activities:
- Consulting with the client to identify their needs. This encompasses inquiring about their day-to-day activities to determine what type of frames would be best suited for their lifestyle. s
- Conduct eye wear adjustments
- Measure and fit frames
- Prepare work orders
Upon opening your store, you’ll likely want to take on the role of administrator as well. This reduces overhead expenses, setting the business up for financial success. As the business grows, you can employ an assistant to handle these administrative tasks.
What are some skills and experiences that will help you build a successful glasses store?
Those dominating the industry possess strong leadership qualities, including communication, the ability to delegate, and the drive to succeed. When working the floor, customers will look to you for guidance regarding their glasses selection. When the client walks out that door, their appearance is a direct reflection on your company. You must be able to sensitively deliver honest advice, educating the customer before making their final decision. Marketing and networking will be instrumental in achieving short and long-term goals. If this is not your strong suit, consider bringing on a team member that can focus on this aspect of your business. Strong negotiating skills would also prove beneficial, as you’ll be purchasing glasses and lenses wholesale from vendors in order to complete sales orders.
What is the growth potential for a glasses store?
Approximately 60% of an optometrist’s revenue is generated from the sale of frames and eyeglasses - a fact every optometrist considering expansion should consider. As glasses continue to increase in popularity, eyewear stores stand to realize persistent sales growth. Franchise opportunities with well-established enterprises such as Sterling Optical and Pearle Vision offer entrepreneurs a unique opportunity to build a robust business. Many realize such great success that they’re able to open multiple stores across the country.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a glasses store?
The following are some tips from successful eyeglass store owners:
- Contact The Vision Council to identify lenses labs in your immediate area. Interview several labs and inquire about their pricing and business policies before committing.
- Use actual and projected patient volume data to ensure your inventory levels are accurate.
- Eyeglasses are often marked up 10 to 20 times over manufacturing costs. Consumers are now aware of this data and take the time to shop around. Conduct thorough research to ensure you’re able to offer competitive pricing while still maintaining a healthy profit.
- Get to know your target demographic. If they’re the type to only frequent establishments that accept insurance, contact the insurance companies to find out how you become a provider and what the reimbursement structure is.
- If partnering with an optometrist isn’t part of your business plan, make sure your research supports this decision. Having an optometrist on staff simplifies the process for customers. If you can take care of all their needs at once, you’re more likely to gain them as a client.
How and when to build a team
Unless you plan to bring an optometrist on board, you could operate the store yourself initially. When you’re ready to start building your team, make sure you hire professionals who possess the skills to fulfill their responsibilities. Universities with an optometry program and your state’s optician association are great resources for finding qualified staff. You should also offer periodic training sessions to ensure your staff is aware of new innovations in the industry.