How To Open an Indie Bookshop

Many bookshop owners start with an online-only business. Running an entirely e-commerce bookselling business still allows you to host in-person “pop-ups” to sell inventory and introduce your bookshop to potential customers. Many independent booksellers host small pop-ups at local community events, breweries, coffee shops, and other small business partners.

Select Your E-Commerce Platform

A web presence is still beneficial even if you are opening a brick-and-mortar bookstore. By selling both in your physical store and online, you can tap into a larger market and reach customers beyond your local area.

This approach allows you to sell inventory 24/7 and increase overall book sales. Even if you do not ship books right away, offering customers the option to “buy online and pick up in-store” can boost your sales.

There are several e-commerce platforms you can use to build and operate your online store. Top online store builder apps small booksellers often use include:

• Shopify
• WooCommerce
• Squarespace

These platforms help manage inventory, process payments, and track sales. You can also build a custom online storefront that reflects your store’s brand and integrates your social channels. Specific features and capabilities vary by platform, so consider the unique needs of your store before paying for an e-commerce platform.

Using these platforms simplifies your online selling processes. But, you must sacrifice a portion of your revenue as they collect a percentage of your sales or charge other fees. Read the terms and conditions carefully before signing a contract for an e-commerce platform. A small business attorney can also review any necessary contracts for your business.

Selling online requires you to meet certain standards to protect online credit card transactions from fraud. It’s also important to safeguard your website and customer’s personal information from cyberattacks. Your website must also meet specific legal requirements.

Choosing a Location for Your Bookshop Storefront

Finding the right neighborhood and location for your bookshop is key. Consider all factors that may be important to your customers, like ease of parking or accessibility via public transit. You’ll also want to assess the neighborhood for demand. A small bookstore will likely get more traffic in a neighborhood with restaurants and other shopping.

The cost of your commercial rent will also likely be a determining factor. Carefully review your rental lease for maintenance responsibilities and any restrictions on business hours. Consider getting an attorney’s help with this. They can also help you negotiate a lease or rental agreement.

Other legal considerations include ensuring your space is ADA-compliant and meets all local zoning rules.

A solid business plan is the backbone of your business. It includes information on several aspects of your bookstore, including:

• Financial projections
• Market analysis
• Marketing strategies
• Operational plans
• Management structure
• Risk factors

Your business plan will inspire how you launch, operate, and grow your business. You will also need it to attract investors and apply for business loans.

Think about the types of books you will sell. Will your bookstore have a niche? Some successful bookshops specialize in one genre—like romance or mysteries. You can also cater to a specific audience, like children or the LGBTQ community.

Many independent bookstores have another profit-generating component of business, like in-store coffee and food. Some independent bookstores even serve beer and wine. Keep in mind there are additional licensing requirements if you serve prepared beverages, food, or alcohol.

You can also rent out space for private events, meetings, or community gatherings. Many bookstores generate additional profit by selling gifts and other merchandise. Consider partnering with local artists or makers to source gift items, cards, stationery, candles, and more.

Many customers who choose to shop at an indie bookstore instead of Amazon or a big-box book retailer are seeking more “experiential shopping.” This means they want a memorable and engaging experience rather than just a transaction. Think about what types of items someone would enjoy using alongside a book. Also, seemingly small touches can add to this experience—everything from how your bookshop smells to the artwork on the walls.

Your Target Market and Competitive Analysis

A key part of your business plan is your market research. Your market research should inform your marketing strategies and how you promote your business. It will also help you identify your customer base and how to market your store and products to them effectively.

You will also want to perform a competitive analysis. This will help you determine how to set your bookstore apart from other independent booksellers. This type of research is critical, especially in a saturated market. Further, finding your bookstore's niche helps you understand the market and identify how your bookstore can stand out.

A business attorney can help you write a business plan. There are also free templates online from the U.S. Small Business Administration (SBA). FindLaw’s Creating a Business Plan section.

Selecting the perfect business name may be one of the most exciting steps of opening your bookstore. You must choose a name that is not already registered to another business in your state. You can perform a business name search on your state corporation’s website, usually a Secretary of State. Next, use the United States Patent and Trademark Office’s (USPTO) trademark database to ensure your business name isn’t already federally trademarked.

You’ll also need to secure your website domain name and social media handles.

Choose a name that resonates with your target market and reflects your brand. It should be memorable and easy to pronounce. Imagine how the name will look on your marketing materials, signage, and website.

You will register your business name with your state when you choose your business structure. The next step discusses this in more detail.

Next, choose a business structure for your bookstore. Your business plan must include whether your business will operate as:

• Sole proprietorship
• Limited liability corporation (LLC)
• Corporation
• Partnership

The default business structure is a sole proprietorship (for businesses with one owner) or a partnership (for businesses with two or more owners). This means that if you do not register your business, your state will consider it a sole proprietorship or partnership.

Most local bookstores form as LLCs. This business structure offers personal liability protection, meaning your personal assets are protected from your bookstore’s liabilities and debts.

You can register your business with your state's Secretary of State or corporations office. You can also get professional legal help with this step. An attorney can help ensure you complete all paperwork correctly and that your bookshop meets the necessary legal requirements.

After you have registered your business with your state, trademark your business name and logo. This will protect your business name so others in the book industry cannot use it. You can apply for trademark rights through the USPTO.

Most small business owners must secure outside funding (outside of their savings) to launch their business. A small business loan from a bank or credit union can help you cover initial costs for inventory, rent, and other costs. Some owners also borrow money from family and friends to help with business costs.

Additionally, the SBA’s 7(a) loan program provides business loans to eligible small businesses.

You may be eligible for a small business grant. Some local governments or nonprofits offer grants to new businesses in particular neighborhoods. Other grants may focus on supporting underrepresented business owners, like women, veterans, or racial minorities. Check with your area’s Chamber of Commerce to find information on available grants.

Make sure your business plan is in good shape before you pursue funding. Investors and lenders will want to see your business plan to assess your business model and financial projections. Be prepared to answer questions about how you plan to achieve profitability and growth.

Brick-and-mortar stores require various business licenses and permits, including:

• Business license
• Zoning permit
• Sales tax permit
• Certificate of occupancy

You will need additional licenses if your bookstore serves coffee, food, or alcohol.

The licenses and permits you need depend on the specifics of your business and your location. The SBA has more information on determining the licenses and permits needed for your business.

Even online businesses need business licensing. The Internal Revenue Service (IRS) requires a business license for any online selling business that generates a profit. If you rent your home or belong to a homeowners association (HOA), be sure to review your lease agreement or your HOA governing documents—some do not allow at-home businesses.

You’ll need to find a supplier or distributor if your store will sell new books. You can also source books from publishers directly, which can help save money via a volume discount.

There are online programs that can help you make informed decisions on your inventory:

• Edelweiss helps booksellers discover new titles and manage inventory. It also provides book catalogs, reviews, and sales data.

• The Indie Next List from IndieBound can help you curate your selection with popular and recommended titles. You can also find recommendations from other booksellers.

To tap into audiobook sales, consider partnering with a program like Libro.fm. This allows you to earn a percentage of audiobook sales purchased through your store’s Libro.fm link. You do not have to purchase an initial audiobook inventory to participate. This also enhances customer loyalty by offering an alternative to physical books.

Another way to boost sales without having to source books is to use Bookshop.org. By setting up an affiliate page, you can earn a commission on your customers’ sales through the website.

If you also sell used books, consider offering “book buy-back” events for customers. Offer store credit or gift cards instead of cash to ensure what you pay is reinvested in your store. This can help increase your inventory and encourage repeat visits from customers.

Ultimately, effective inventory management is crucial for maintaining a selection of books your customers want to buy. Analyzing sales data and customer preferences can help you choose which titles to stock. Further, using inventory management software that tracks sales and manages reorders can ensure popular titles are available.

Even if your bookshop is online only, you may still need staff to fulfill orders, field customer service inquiries, and perform other tasks. Running a physical store will likely necessitate more help, especially if your bookshop has a coffee or food service component.

Write comprehensive job descriptions that thoroughly detail responsibilities and duties. Be transparent about pay—this will save you time during the interview and offer process. Candidates should be focused on the customer experience and book lovers themselves. Bookstore staff should be comfortable recommending titles to customers and discussing current literary trends and bestsellers.

As an employer, you must verify your employees’ identities and that they are legally able to work in the U.S. It is also a good idea to run background checks. Review federal and state hiring laws prior to hiring your first employee.

Securing commercial insurance can protect your bookstore from potential liabilities. At a minimum, you should carry general liability and product liability insurance. This insurance covers a range of risks, including property damage and theft.

Since you will be collecting payment information from customers, also consider cyber insurance. This type of coverage will protect you in the event of a data breach or hack. This is even more important if you are running an online-only business that collects customer addresses for shipping.

In general, customers who shop at indie bookstores enjoy shopping locally and supporting their community. Still, every indie bookseller is unique. Consider your target market and your community when formulating your marketing plan. Ultimately, the data in your business plan should inform your marketing strategies.

You can get creative with this process. Remember that your marketing and advertising strategy isn’t set in stone—be willing to pivot if something isn’t working. Be open to new ideas.

You may find the greatest success employing methods that connect with your community. Here are some ideas:

• Post a monthly calendar of upcoming events. Promote your in-store events online and personally invite customers back for events when they are completing their purchases.
• Host book clubs, either in-store or virtually. Consider offering a discount on the book club title.
• Boost sales for children’s books by engaging young readers and their parents with a story hour.
• Host local authors for readings and book signings.
• Advertise staff picks to help customers choose a hot bestseller or niche genre.
• Partner with community organizations, complementary businesses, and schools for book fairs.
• Curate seasonal subscription boxes.
• Host release parties for anticipated new releases.

It’s critical to employ a strong digital strategy. Post regularly on your social media channels. The content you post should be relevant to your audience. Share updates, book recommendations, and other updates that interest your audience. Don’t inundate your followers with excessive sales posts.

Brush up on search engine optimization (SEO) tactics. SEO helps improve your website's visibility and attract more visitors. Optimizing your content with relevant keywords can help you reach a wider audience. It’s also key to ensure your website is user-friendly.

It’s also smart to review advertising laws if you engage in email or text (SMS) marketing or offer promotional campaigns or discounts.