I guess we make it look easy, because we're asked all the time how to start a fireworks business.
Since 9-11 and because they are fireworks, it's actually probably the hardest business to start these days.
A misnomer is all fireworks people get their fireworks for free from someplace like area 51, where we only have a special pass to get them.
We all know that's not true and if it was, we'd love to know where it is. The fact is, we pay the same wholesale price as QuikTrip does for gas and gum. The reality is our markup is generally the same, if not less.
Before we ever open, we will have invested much more than you could possibly believe.
Then you have the fireworks......Your lucky if you can find a wholesaler and when you think you found one, he's going to want his money up front. You might find one that'll work with you on consignment, but that means you won't get the wholesale price. Either way the fireworks will cost you.
Once open, a storm at any moment would ruin our lives and we'd be in debt forever. You can only get liability insurance in the fireworks business. And that alone costs money.
The first thing you have to do is have money. Second is to learn the laws and understand what you have to do for your location. Third is actually find a location.
Here's a short list of the things you'll need.
1) Money and don't expect a return your first year. You'll be lucky to break even.
A) you'll also need a license $
B) you'll also need a State Fire Marshall permit. $
C) you'll also need a 'no tax due' letter from your state.
D) also, you'll need to set up a business or otherwise become an LLC $
E) most cities require a separate permit just to have a sign. $
2) A wholesaler. He will require you to buy it outright, maybe he'll do consignment. $
` A) You'll need a tent $
3) A location. You'll have to pay rent. In a ideal location, expect to pay as much as $1,000 a day. Starter might be better off offering to make a deal for the lot owner to get a percentage of your profit.
4) You will have a lot of trash. Fireworks come in cases with individually wrapped pieces. A good fireworks business has to have a disposal service $
5) You'll need to light and wire your tent. For a tent like ours, you can't steal power from the neighbors. You'll have to get a power box and a meter from the local power company. Depending on city codes, you have to get that power into the tent. You're looking at more $even for the smallest tent.
A) You'll likely have to have an inspection on everything above before you go further.
B) The tent has to be rated as a 'fire rated' tent.
6) Where you going to the bathroom? OK, you're going to need a porta potty. They're about $50 per week.
7) Where are you going to sleep? You or somebody has to be there 24/7. Most people have a camper with air conditioning and a TV. That's great. You can rent a camper for 2 weeks for about $400, but then you have an additional problem. Security.
8) Security. So now you have your fancy camper and TV and am willing to stay solid for two weeks, whose going to watch the fireworks all night? Expect to either stay awake 24/7 or have a security guard there at up to $40 per hour all night to watch your TV.$
A) Depending where you're located, some cities require you to hire their officers and may have to be approved by your city. The best security you can get are the biggest guys you can find in plain clothes, like bouncers, who don't take crap from anybody.$
9) Where you going to store your fireworks? You're going to have to rent a POD or storage trailers.$
A) At night, how are you going to see inside those trailers? You'll need lights. $
B) Those will have to be inspected.
10) How are you going to display your fireworks. You're going to need tables. You can make them with sheets of plywood on saw horses, or use standard folding tables. Either way, $
A) You'll also need a shit load of fire extinguishers and proof from many cities that you and your employees are qualified to operate them. Each extinguisher has to be certified for fireworks and be up to date. $
11) Are you going to accept credit cards? You'll need a phone line for that besides they charge up to 2.9%, you'll also have to buy or rent a credit card machine. If you take checks, you'll either just accept them or have to buy or rent a separate machine for Telephone-Check. You'll need at least one phone line. $
12) How are you going to check people out? You'll need sacks, punks, a cash register and a skilled person to do it. $
13) Then, while your gone for up to two weeks, whose gonna mow your yard and take care of your animals?$
14) Where will you shower?
15) Where and what will you eat? This isn't camping and you can't have a grill near the tent and you have to be there 24/7: so you pay the security guard so you can go eat. In most cities, grills (open flames) have to be 50 feet away. You'll get tired of the diner or the QT down the street after the 3rd day. One thing we do, is make a deal with the pizza guy (or wherever) to trade for fireworks.
16) So you thought all this through and it seems like no big deal. OK, I'm proud of you! How are you going to price the stuff? Markers, scanners, price guns or what? Where are you going to come up with the prices? However you decide prices, it costs $.
7) Advertisement. You'll need signs and advertisement $. You'll need to get your name out there.$
18) Name. You have to have a catchy name for your place and we were the first to discover that a long time ago. This pretty much goes with #17, but you may have to have a member of the family who can do this for you, or you'll have to get somebody. $
19) Bookkeeping. Whose going to keep track of the books? You? Your in the camper watching TV. Wait......You can't watch TV anymore without cable. You have to have a TV or a weather radio because the most essential thing if you made it this far is the weather. Cable $
20) Remember, you'll have at least a phone and electrical bill. $
21) Even if you're anywhere even remotely successful, you have to pay your employees. $
22) The worst day for us is the 5th when we have to put it all away. It takes us two weeks to put it all up and we tear it all down in 5 hours on the 5th. We don't pay our people until after that's done.
I won't tell you what we make.
I can tell you we don't make what people think we do. All of us have real jobs and this is our vacation so to speak. This certainly isn't a thing where you work for a few weeks and live off the profits for the rest of the year.
In fireworks, you have to know what things do and you have to know all fireworks are in categories.
There are:
1] novelties (basically kids things)
2] spinners (ground bloom flowers, etc)
3] wheels (the things you nail to a tree)
4] smoke
5] rockets, there are 2, 4, 6 and 8 oz rockets and larger.
6] missiles (a mistake is not knowing the difference between the two)
7] Saturn battery packs are missiles.
8] wings (a notch above spinners,,,wings are things that fly without a stick.
9] strobes
10] firecrackers.... these come packaged every way possible.
11] Roman candels....
12] sparklers
13] fountains
14] parachutes
15] multi effects
16] 500 gram cakes
17] reloadables
18] shells (single shot tubes)
19] racks (finale racks of single shot tubes from 3 shots to 10)
20] punks. Punks are made of camel poop. Yep, that's all they are and they are called "punks" and not "pumps". There is a difference betteen Camel shit and shoes [I think]
I guess after having done this for nearly 30 years is the following:
Never wear anything white working at a fireworks stand.
Invest in a NOAA weather radio.
Buy a box of baby wipes, because most of the time that's as close at
you'll get to a shower.
Always have a spare set of clothes with you.
Keep track of what day it is, because you will forget.
Invest in a cooler and keep it full of things you normally would enjoy.
Look forward to mosquitos, long hot days and nights.
Be prepared [but nice] to those people that think you got all these fireworks
for free and live the rest of the year off the income.
If those people come in with a baby and driving an old Dodge, then deal with them and give them a break. If the guy comes in driving a Lincoln wanting a deal, then work a deal or tell him to screw off.
It's been my experience that people with money expect free stuff.
It's pretty much a two week camping trip where your best hopes are to walk out with what you came in with.
Gary
