Business Idea

Start A Cigar Business

About

Starting a cigar business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cigar, or selling cigar online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a cigar business ➜

Key stats

market size
$9.29B
revenue (monthly)
$6.5K
starting costs
$44.3K
gross margin
34%
avg product price
$30
time to build
8 months
growth
SEO
business model
E-Commerce
time investment
Side project

About

Starting a cigar business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cigar, or selling cigar online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a cigar business ➜

Key stats

market size
$9.29B
revenue (monthly)
$6.5K
starting costs
$44.3K
gross margin
34%
avg product price
$30

 

time to build
8 months
growth
SEO
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800
Total Startup Costs $9,207 $76,247

Successful Businesses

Business URL Rank
Cigars International cigarsinternational.com #37,655
Famous Smoke Shop famous-smoke.com #37,820
Famous Smoke Shop's Beginner's Guide to Cigar Smoking cigarsforbeginners.famous-smoke.com #38,859
JRCigars.com auctions.jrcigars.com #54,421
JR Cigars | The World's Largest Online Cigar Store jrcigars.com #55,413
JR & Cigars sweepstakes.jrcigars.com #56,279
Cigar Aficionado cigaraficionado.com #82,381
Shop Cigars, Humidors & More at Mike's Cigar mikescigars.com #89,817
Shop Premium Cigars & Deals Online | Holt's Cigar Company holts.com #100,646
America's #1 Online Cigar Auction - first, best, biggest! - CigarBid cigarbid.com #115,044
Premium cigars for sale at Smoke Inn smoke shop. smokeinn.com #142,686

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a cigar business. This could be the start of an incredible business opportunity!
Unlimited income potential With starting a cigar business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Predictable income stream Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
Location is everything! When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!
You can sell your product in various places! There are various different markets to sell your product, which will help you reach different audiences and revenue streams.
Cons Description
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Low margins The gross margins for your cigar business are typically around 34%, which can make it more challenging to incur new expenses and maintain profitability.
Taxes As a cigar business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting a cigar business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜