How to Write a Business Plan for Pawn Shops


A pawn shop can be a satisfying and profitable business. However, no matter what kind of business you plan on opening, you need a plan. Having a business plan is paramount to a successful beginning. You’ll need one to get investors, loans, or even business partners for your pawn shop. 


How to Write a Business Plan for Pawn Shop

A well written business plan may determine whether or not you get the capital you need to start your pawn shop. Here’s what you need to cover in your business plan. 

Title Page

Your title page doesn’t need to be elaborate. You simply need to make it look professional, and include only the relevant information such as the prospective business title, your name, etc. 


Outline and Summary

Not every business plan includes an actual outline, although it’s helpful for anyone looking through the document. After the outline, if you choose to include one, you also need a summary. Specifically, an executive summary. Keep it succinct and professional. This summary is exactly what it says it is: an overview of your business plan. Try not to use more than one page, although the shorter it is, the better. 


The summary should briefly state items such as a business description, any relevant information or notable accomplishments, and current financial circumstances, as well how much capital you need, and why. 


Describe Your Business

Next, you need to write a description of your business. Typically, people include a very short overview of the pawn shop industry. If you find credible sources, include them in the description or footnotes. Include information about whether you are sole owner, sole proprietor, part of corporation or partnership, etc. 


You also need to state whether it’s a new business or not, and what your business focus is. For instance, if you plan on dealing with a variety of items, but with a strong focus on musical instruments, include that. It’s a good idea to mention any reasons this will put you ahead of competing pawn shops. 


You need to let investors know how your business will operate. Will certain employees take care of loans, pawn items, or customer service? Will you advertise locally or online? These are all important parts of your business operations that give investors confidence in your success. 


Plan for Profit and Competition

Although you will cover the pawn shop market in your business description, you’ll need to be more specific in analyzing your competition. In this section, there should be a detailed analysis of the local pawn shop market, and the profitability thereof. 


Along with market analysis, your business plan should include how you plan to make a profit. This includes specific items like pricing, marketing, and a budget that allows for everything you need to operate. It can be difficult to include prices for everything, since pawn shops take in a wide variety of items. 


However, you can mention specifics for things like pawn fees, loan rates, and ballpark figures for categories of items.


Very Specific Financial Details

Near the end of your business plan, you should include more financial details. This is where you’ll ask for the funding you need, but it’s much more than that. Don’t leave out any details. If you need funding for a year, two years, or even more, have specific details on how each bit of funding is used. 


Have a plan for projected profits for at least the first year. Things may change from year to year, but your plan should include financial projections for at least as long as you need the funding for. You can also include the pawn shop software you intend to use to manage inventory and finances.



Writing a business plan for a pawn shop can be tricky. However, if you do your market research and follow this guide, you’ll have it done in no time. Stay dedicated, and don’t leave out any details. Sometimes, the key to winning startup funds is in the details.