How to start a bookshop

If opening a bookshop is how you want to start your own business, you’re in the right place.

With the rise of online shopping and ecommerce, many might see bookshops as a thing of the past. However, while the number of brick-and-mortar stores may have fallen in the last year, the UK has 1,052 bookshops as of 2024 – a significant increase from a low of 867 in 2016.

And while ecommerce stores continue to dominate, physical shops aren’t disappearing anytime soon, particularly as nearly 80% of UK shoppers prefer to buy their books both online and in-store.

However, you’ll need more than just a passion for books to run your bookstore business successfully. You’ll need to identify your target audience, work out what your customers are looking for and how you’ll stand out in a competitive marketplace.

Our step-by-step guide will get you up to speed on everything you need to know, from the first chapter to the final closing words.

How to open a bookshop: step-by-step

Just like when reading a book, you shouldn’t skip ahead to the last chapter to open your bookstore. No one likes a rushed plot, and this goes for starting a business too.

Instead, you need to go through every chapter carefully and take the time to go through the essential stages before you open your doors to customers.

Below, we’ve listed eight crucial steps to opening a successful bookstore, from planning and research to marketing and promotion.

1. Write a business plan

For any new venture, creating a business plan should be the first step you take before anything else. Put simply, this is an important document that should outline what your business is about, what your goals are and how you plan to achieve them.

It’s crucial that you don’t skip this step, as a strong business plan is what will help you secure funding from investors, determine your financial needs and make strategic decisions.

Here’s a quick breakdown of what your business plan should include:

• Executive summary: a summary of your business plan, including your mission statement, idea, objectives, target market and marketing strategies.
• Personal summary: this should include your general details, such as your telephone number, email address and business website.
• Your business idea: a one-line summary of your business idea (AKA an elevator pitch) which outlines what it is and what it brings to the market.
• Your products and/or services: outline what you’re selling to customers, including details on your pricing strategy.
• Market analysis: details of your target market, such as who your typical customer is, how many customers you expect to reach and what you’ve learnt from market research.
• Competitor analysis: basic information about your primary competitors (e.g. name, location, business size, pricing, strengths and weaknesses, etc.)
• Cash forecast: outline your financial outlook, such as incoming costs (e.g. sales revenue, funding, etc.) and outgoing costs (e.g. staff salaries, shipping, etc.)
• Operations and logistics: how your day-to-day business activities will run, including details on how your business will operate and supplier analysis.
• Backup plan: how you’ll manage any unexpected losses if your cash flow temporarily stalls

2. Find your target market

Next, you’ll need to determine who your target customers are. Unfortunately, just sticking best-selling books on the shelves isn’t likely going to attract customers. Instead, you’ll need to find a niche and exploit it fully. For example, a demand for secondhand books among young, eco-conscious shoppers who prefer to buy used items.

This can be quite tricky to do, so here are some ways you can find your target audience:

• Start discussions/conversations on social media and web forums (e.g. Reddit)
• Sign up for a survey website (e.g. SurveyMonkey), or survey people on the high street (ideally where you’d like your bookshop to be)
• Set up a focus group – make sure to advertise this on social media so that it can reach as many people as possible. You should also include an incentive (e.g. cash or gift cards) to attract people.

3. Conduct market research

Once you’ve got your target market in mind, you’ll need to conduct market research. This is an important step as it’ll give you a better understanding of your target audience (e.g. pain points and preferences), competitors and current market trends, as well as develop effective strategies to reach the right customers.

For this, you’ll need to conduct primary, secondary and competitor research. Here’s a quick rundown of how they work:

Primary research

This is when you gather data directly from potential customers to get a better understanding of their needs, pain points and preferences. There are many methods of conducting primary research, including:

• Surveys and questionnaires (e.g. SurveyMonkey, Typeform and Qualtrics)
• Individual interviews or focus groups
• Observing customer behaviour in existing bookstores (e.g. genres they pick, how much they spend, etc.)

Secondary research

On the contrary, secondary research is when you gather existing data. For this, you should look at:

• Industry reports: look for statistics on trends, consumer behaviour and regional economic data, such as through IBISWorld or government sources.
• Online reviews: look into customer feedback, such as reviews from Yelp and TripAdvisor, to see what shoppers like and dislike about existing bookshops in your area.
• Census data: this offers demographic data for local areas, such as age, income levels, household sizes and occupation types.

Competitor research

And finally, you’ll need to have a good understanding of your main competitors. When researching this, you should conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis.

This will give you an idea of what your competitors are doing well, what could improve and where there may be gaps or opportunities for your business to gain a competitive edge, as well as potential threats that could impact your market position.

To get a better understanding of these factors, you should:

• Assess a bookstore’s current offerings and pricing strategies and look for any potential gaps that you could offer (e.g. bundle discounts, secondhand products, etc.)
• Visit competing bookstores and observe the customer experience, such as how staff interact with customers, the general atmosphere, or any other perks and add-ons (e.g. a cafe/coffee shop area)
• Look at a competitor’s unique selling points (USP) to determine what makes them stand out. For example, do they have a good selection of books? Do they offer a cafe with comfortable seating? Think about whether they have good marketing, a loyal customer base or a unique in-store experience that sets them apart.

5. Get funding for your bookshop

Much like owning a retail store or running a restaurant business, opening a bookshop doesn’t come cheap, and unless you have thousands of pounds in your back pocket, you’ll likely need funding to help you out.

Luckily, there are many business finance options available, both long-term and short-term, depending on your business needs. These include:

• Bank overdrafts: allow you to withdraw more money than what’s available in your account. Usually flexible but interest is charged on the amount you borrow.
• Short-term loans: a type of business loan that needs to be paid in a short period of time (usually 6-12 months). Good for unexpected expenses, but often comes with higher interest rates.
• Merchant Cash Advancements (MCAs): a lump sum loan where the lender provides the money upfront, but is later repaid by taking a percentage of your card transaction sales.
• Business credit cards: can be used to pay for expenses like supplies and inventory, but can also come with high interest rates.
• Business grants: a sum of money given to small businesses, without interest, equity or even paying the amount back at all.
• Bank loans: businesses borrow a fixed amount of money and agree to pay it over a predetermined period (often 3+ years).
• Angel investors: individuals who fund a business with their own money, either in exchange for equity or convertible debt.
• Crowdfunding: a business can use a crowdfunding platform (e.g. Kickstarter or Indiegogo) to collect small contributions from a large number of people.

6. Look for a business premises

When opening any kind of brick-and-mortar business, location is key. Whether you dream of opening on a bustling high street or a quiet corner of a small town, signing a commercial lease or buying a property is a huge commitment, so you’ll need to consider a few things before you agree to anything. This includes:

Foot traffic and visibility

Locations near busy streets, shopping centres or cafes can often attract customers, while close proximity to schools, universities or libraries can also get more foot traffic as these kinds of places naturally draw book lovers. When scouting locations, you should observe the flow of people throughout the day to assess peak times and visibility.

Accessibility and parking

These factors are often overlooked, but can significantly impact customer experience. Therefore, you should make sure the location is easy to reach via public transport, with clear signage and accessible entry points. If you’re located in an area with limited parking, consider nearby parking areas or streets with plenty of space to accommodate as many people as possible.

Size and layout

Make sure to choose a location that can comfortably house bookshelves, seating areas and checkout tills. Moreover, if you plan to host events like book clubs or signings, make sure there’s enough space for gatherings. 

Cost and balance

You should balance the cost of the rent or mortgage with projected sales. While high-traffic areas often come with higher prices, they may offer better sales opportunities. Weigh the potential benefits against your budget and look into incentives or grants that may be available for small businesses in your chosen area.

So, where should you look to find your ideal bookstore location? A few effective avenues include:

• Commercial real estate websites: sites like Rightmove and Zoopla list available spaces with details on size, cost and location.
• Local real estate agents: these agents specialise in commercial property in your local area, and can provide insider knowledge on prime retail spots and upcoming vacancies.
• Networking and word-of-mouth: networking with other local businesses, bookstore associations or community groups could help you uncover any hidden gems or soon-to-be-available spaces.
• Exploring desired areas: take a look around specific areas you’d like to set up in and see if any buildings have a “For Lease” or “For Sale” sign.
• Community centres and libraries: if renting or buying your own space is a little out of your budget right now, some of these spaces rent out dedicated retail spots for small businesses.

7. Find book suppliers

Finding suppliers for a bookstore involves a mix of research, networking and strategic partnerships. 

First, you’ll need to figure out what you need. Are you after bestsellers, indie titles, secondhand books or even some extras like stationery and gifts? Knowing this will help you find the right suppliers. Here are some suggestions:

• Gardners: one of the UK’s largest wholesalers with a significant book collection.
• Peters: specialists in children’s and educational books.
• Bookspeed: a good choice for curated selections, gift books and lifestyle titles.

Alternatively, you can:

Go directly to publishers

Large publishers like Penguin Random House, Hachette and HarperCollins often sell directly. For indie and niche publishers, reaching out directly can sometimes get you better deals.

Attend UK book events

Check out events like the London Book Fair, Bristol Book Fair or Northern Independent Bookseller Network (NIBS) events to meet suppliers and discover new titles.

Join Bookseller groups

The Booksellers Association (BA) is a great resource for connecting with supplies, getting industry advice and even getting discounts.

Find secondhand book suppliers

If your business specialises in selling secondhand books, or you just want to find cheaper options, World of Books and AwesomeBooks provide bulk secondhand buys. Charity shops, car boot sales and estate agencies can be goldmines for these too.

8. Develop your brand and marketing

Branding a bookstore is all about creating a unique identity that both resonates with your target customers and sets you apart from others. To brand effectively, you should:

Pick a memorable name

Your business name should reflect the vibe of your bookstore. Is it cosy, quirky, intellectual or modern? Also, make sure your name is easy to remember and can be easily recognised by customers.

Tell your story

Every brand has a story, and one loves those more than book lovers. For this, you should emphasise your mission, your passion for books and your values – whether it’s about supporting local authors, creating a community space or promoting sustainability by selling secondhand books.

Design your visuals

Just like with book covers, people are naturally going to be drawn to a brand with good visuals. This covers:

• Logo: this should be simple, but distinctive, as it’s the first thing people will associate with your store.
• Colour scheme: choose colours that fit your vibe. Bright colours might feel fun and playful, while darker tones could be more sophisticated.
• Typography: opt for fonts that are easy to read but also match the feel you want. For example, something classic for a vintage bookstore or modern for a new-wave indie shop.

Create an atmosphere

This is crucial for physical stores and should reflect what your brand is all about. For example, if your store is cosy, you could go for comfy seating and warm lighting. On the other hand, if it leans more towards being artistic, consider cool art on the walls and funky displays.

Build your online presence

Even if you’re not considering setting up an ecommerce store, you should still have a strong online presence so that customers can find you.

First, you should have a professional and user-friendly website where customers can find details on your shop, your catalogue or any upcoming events. If you do want to sell books online, make sure that it offers an easy checkout process, especially if you’re offering delivery.

Next, you should choose social media platforms that fit with your audience. For example, Instagram is great for visuals and community-building, while Facebook can help you connect with readers and promote events.

Even TikTok can be a useful tool, as the #booktok hashtag represents a community of book lovers who share their passion for reading, recommend books and discuss literature. Retail giants like Waterstones even have their own “BookTok Reads” section.

Start a customer loyalty programme

For this, you can offer rewards like discounts, exclusive events or early access to new stock for regular customers. This not only boosts repeat business but also makes your customers feel valued.

Host events

This could be bringing in authors for book signings or Q&A sessions, starting your own book club or hosting themed events (e.g. poetry slams, story readings for kids or book-themed trivia nights). These can help build a sense of community and give people a reason to come back to your store.

The costs of opening a bookshop

The cost to run your bookstore will largely depend on the type of business you’re running, the premises you use and the rarity of books that you wish to sell. Here’s a breakdown of the main costs you should keep in mind:

Rent/mortgage

This is one of the largest ongoing expenses and can vary greatly depending on your location. High street locations or areas with high foot traffic will cost more.

Tip: if you’re on a budget, consider a less central location but one that’s still accessible and has decent foot traffic. You could also consider a smaller pop-up space or start an online-only shop.

Inventory (books)

Obviously, you’ll need to stock up on books, and the cost will depend on how much you buy. Remember that wholesalers often offer discounts, and you can negotiate better prices as you build relationships.

Tip: start small and build your inventory gradually. Offering pre-orders for upcoming releases or stocking works by local authors can be a good way to generate sales without over-committing on stock.

Staff wages

If you have employees (or plan to hire them), wages will be a significant cost. The number of staff you need will depend on the size of your bookstore and the hours you plan to be open.

Tip: if you’re a smaller shop, you might start off with fewer staff and consider part-time help. Either way, make sure to account for the UK’s National Minimum Wage rate, which is set to be up to £12.21 per hour from April 2025.

Utilities and overheads

Your business overheads and utilities will include electricity, water, heating, internet and phone bills. You’ll likely have to pay more in the winter months for heating and possibly higher energy costs if your shop has a lot of lighting or equipment.

Tip: opt for energy-efficient lights (e.g. LEDs) and try to reduce unnecessary energy use to keep the cost down.

Insurance

You’ll need business insurance to cover things like public liability, property damage, and theft. Rates will depend on location and coverage.

Tip: shop around for the best rates and consider getting quotes from multiple insurance providers to find a plan that suits your needs.

Marketing and advertising

While digital marketing can be free, you’ll have to pay for your business to be promoted through social media ads and Google Ads. Traditional advertising, such as print ads (flyers, posters, etc.) is also pricier and can quickly eat into your profit margins.

Tip: social media can be a cost-effective way to promote your business, so focus on creating engaging content. Hosting events like author signings or book clubs can also attract traffic without a huge cost.

POS system

If you’re using a point-of-sale (POS) system there may be initial setup costs for hardware (e.g. tills, card readers and computers), as well as monthly fees for software like Square or Shopify.

Tip: look for POS systems that can integrate with inventory tracking and online sales (if applicable), so everything is in one place. Make sure to check out our list of the best POS systems for small businesses to see our personal recommendations.

Accounting software

Good accounting software is a must because it automates and simplest complex financial tasks, improves accuracy and provides real-time insights for better decision-making and financial management. Some popular platforms include Quickbooks, Zoho Books and FreeAgent.

Tip: if you’re just getting started, you don’t need all the bells and whistles. Many of these tools offer free trials, so test a few to see which one works best for you. You can always upgrade as your bookstore grows and your accounting needs become more complex.

Book displays and fixtures

You’ll need shelves, tables, signage and possibly even furniture like chairs or reading nooks. There are initial set-up costs, but they’ll be essential to creating an inviting space.

Tip: you can often find secondhand shelving or bookcases from charity shops, auctions or office furniture sales to save money.

Delivery/shipping costs

If you offer online orders, you’ll need to account for shipping costs. This includes postage, packaging (boxes, tape, labels, etc) and courier fees.

Tip: consider offering free shipping on larger orders to encourage sales, but build the shipping costs into your pricing strategy.

Stock losses and returns

Not every boom will sell, and some may get damaged or need to be returned. For this, you should factor in the cost of returns from distributors or unsold stock.

Tip: keep track of which books are slow-moving and try to avoid overstocking them.

Supplies

This includes things like pens, receipt paper, bags, gift wrapping and other small essentials. These costs are often minor, but they can add up over time.

Tip: always try to buy in bulk to save on recurring costs. You can also get branded supplies to improve your store’s branding and professional look.

Rules and regulations of running a bookshop

As you’d expect, running a bookshop comes with its own rulebook. Here are the main rules and regulations your business should adhere to:

Consumer protection

The Consumer Rights Act 2015 governs how businesses should treat customers. This means bookshops must offer clear pricing, a right to cancel or return goods (usually within 14 days) and products must be of satisfactory quality.

Health and safety

Bookshops must comply with the Health and Safety at Work Act 1974, which includes keeping the premises safe for both staff and customers, especially when it comes to fire safety, cleanliness and general wellbeing.

Age restrictions

Some books, particularly those with explicit content, are age-restricted. This means that booksellers are required to ensure that certain books aren’t sold to underage customers (e.g. graphic novels, adult content, etc.)

Privacy and data protection

Bookshops that handle customer data (e.g. through loyalty programmes, email subscriptions or online sales), must comply with the Data Protection Act 2018 (the UK’s implementation of GDPR). This includes keeping personal information safe and giving customers control over their data.

Intellectual property

Bookshops must ensure that the books they sell are not pirated or counterfeit. They should also respect copyright laws and make sure that the items they sell are authorised or legitimately distributed.

Online sales regulations

For bookshops that operate online, they must follow the Consumer Contracts Regulations. This includes providing clear information about shipping times, return policies, and terms of sales, as well as offering a 14-day cooling-off period for returns.

Accessibility

Under the Equality Act 2010, bookshops must make reasonable adjustments to accommodate customers with disabilities, such as providing accessible entrances or books in accessible formats (e.g. braille or audio).

Conclusion

If you’re a book lover, opening a bookshop can be a truly rewarding experience. However, as you would with any good read, it’s important not to skip ahead to the last few chapters, or you won’t get much of a happy ending.

The important thing is to match your passion for reading with a business mindset and as your story progresses, there’ll be highs and lows to get through. It won’t be an easy journey, but the key is to stay committed, adapt to challenges and learn from each chapter.