In recent years, the Netherlands has seen a rise in the number of smartshops, which is a natural consequence of promising scientific research into the use of substances like psychedelic truffles for human health. However, running a smartshop in the Netherlands comes with its own set of considerations and requires careful preparation to establish one's own smartshop. In this blog, we will address these considerations step by step.
1. Registering with the Chamber of Commerce
If you intend to establish a business or enterprise in the Netherlands, it is mandatory to register it with the Chamber of Commerce, known as the KvK. This involves scheduling an appointment at a nearby KvK office and providing the necessary information about your business activities. Registering a business with the KvK incurs a registration fee.
2. Market Research
To start a successful business, especially a smartshop, thorough market research is crucial in the area(s) where you plan to open a store. Consider the target demographics you wish to appeal to and whether there is existing competition in the form of other smartshops. If an area is already saturated with smartshops, breaking into the market and gaining (loyal) customers in the long term may prove more challenging.
3. Finding a Location
The next step in starting a smartshop is finding a suitable location for your store. Several factors come into play here. Firstly, the costs of renting (or purchasing) a space should be proportionate to the estimated profits you anticipate from your smartshop. It's also important to check the zoning regulations of the relevant municipality since smartshops fall under a specific category for which not every location is suitable. Each municipality has its own zoning plan, so inquire about this with the municipality where you intend to establish your smartshop.
4. Applying for a License
As smartshops are categorized as SHG shops (smartshop, headshop, giftshop), a special license is required to operate such a store. This license is issued by the mayor and is usually valid for a temporary period. Therefore, be prepared to reapply for a license after a certain time to continue operating your business.
5. Compliance with the Law
Various regulations apply to smartshops in the Netherlands, which are crucial to adhere to if you want to maintain your business. In addition to general rules applicable to all stores, there are also specific regulations regarding the sale of products. For example, smartshops are not allowed to sell alcohol, tobacco, or cannabis. There are also somewhat ambiguous rules regarding grow shop products, so it's wise to gather as much information about them as possible. It's important to stay informed about and comply with these regulations since municipalities can conduct unannounced inspections. Shops found in violation of these rules face strict penalties.
6. Online Store
Once you've successfully established a physical store, it can be beneficial to complement it with an online store. This can significantly expand your customer reach and serve as an important addition to your revenue.
7. Staff
As a business owner, you're often busy handling practical matters related to your store. Therefore, it's advisable to consider hiring staff for your store in the long run. There are also specific rules associated with this in the Netherlands. You can find a clear step-by-step guide from the Dutch government regarding hiring employees and the associated regulations through this link.
Getting your shop filled with products:
Shops like Happy Holland offer loads of unique and cool products to get your store filled up with almost everything you need. Franchise options are also available. Contacts: sales@happy-holland.com.
