How To Open a Guitar Store: 7 Essential Steps

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So, your high school rock band never made it big, but you’re still determined to live out your bass guitarist dream — and this time, in a whole new way. You’re asking yourself how to open a guitar store, and we get it.

Entrepreneurship is the modern American dream, with more than six out of 10 people saying they’d prefer to be their own boss. More than half of them are willing to take on considerable financial risk to make it happen. But even if you’re a pro when it comes to acoustics, basses, and semi-acoustic guitars, opening a guitar store is a whole different riff.

In this blog, we’ll tune you into the potential profits of opening a guitar store and break down the essential steps to turn your vision into a reality.

The Profit Potential of Opening a Guitar Store

Being your own boss comes with unlimited earning potential, no matter the industry. While it’s not typical to open a business and become an instant millionaire, it’s certainly not out of the realm of possibility.

In the world of music sales, profit margins are usually modest — around 15% for regular music sales. However, when it comes to instruments, those margins jump to a much more exciting 20–40%, with high-end guitars reaching as much as 35%. That’s pretty impressive — it’s on par with industries like banking, and is certainly not the norm for retail. So, kudos to you for picking a passion that can bring in serious rewards.

Opening a guitar store can be highly profitable, particularly in areas with a vibrant music scene. Guitar sales, combined with accessories and repair services, offer steady revenue streams. With the right location, diverse inventory, and top-notch customer service, your store can attract everyone from beginners buying their first guitar to seasoned musicians hunting for premium instruments or rare finds. Plus, offering repair services, music lessons, and hosting live events can boost your income while building a loyal customer base over time.

So, how do you make all this happen? Let’s break it down step by step. Here’s how to open a guitar store.

Step 1: Set Up Your Business Plan and Budget

Before you dive into the nitty-gritty of setting up your guitar store, you need a solid business plan. Some store owners skip this step simply because they don’t fully understand its importance or how to create one.

But here’s the truth — businesses with a clear plan tend to grow 30% faster than those that don’t. Your plan will outline everything from startup costs and inventory expenses to staffing and expected profits. You’ll need to account for guitar inventory, accessories, rent, utilities, insurance, and, of course, salaries.

Even though guitar sales have skyrocketed in recent years, don’t sit back and think the instruments will do all the heavy lifting. The market might be hot right now, but having a business plan means you’re ready to sustain growth long-term.

A well-crafted plan guides your decisions, not just for the first few months, but for years to come. You’ll want to revisit your plan every 1–2 years, especially after you’ve gotten a better feel for your customers and what they’re looking for — whether it’s a new Fender Stratocaster or premium guitar accessories.

Your business plan and budget should also include financial forecasting. Knowing how much money you need to keep the lights on and how long it will take to start turning a profit will make managing your cash flow a lot easier.

Plus, remember that planning isn’t just good for your guitar shop — the skills you develop from planning and forecasting can spill over into other aspects of your life and help you succeed in whatever else you take on.

Step 2: Find the Perfect Location

The first step in opening a guitar store is to choose the right location. For a physical store, this is key to your success. Look for a spot that draws in both beginners and experienced musicians — places with high foot traffic are ideal. Areas near recording studios, music schools, or even local cafes can help you tap into a crowd that’s already into music. And if you’re near other music-related businesses or live venues, that can be a big bonus, too.

When thinking about the space itself, make sure it’s big enough to showcase guitars, accessories, and room for people to test instruments. If you’re offering repairs, you’ll need a small area for that, too. It’s equally important to consider accessibility — easy parking and good visibility makes a huge difference.

If you’re planning on going online instead of opening a physical store, you need less capital up front, but keep in mind that people love to try out guitars before they buy. Testing the feel, sound, and playability of a guitar is a huge draw for in-person shoppers.

Plus, with a physical store, you have the chance to cross-sell other items like amplifiers, pedals, or even guitar cases that an online store might not be able to push as easily. When consumers shop locally for instruments, they’ll typically be accustomed to better warranties and access to repairs.

Step 3: Get Your Licenses and Permits

Before you start rocking and rolling, you need to make sure you have the right licenses and permits to operate legally. The exact requirements depend on where your guitar store is located, but you’ll likely need things like a business license, a sales tax permit, and maybe even specific zoning permits.

If you plan on offering repairs or other services, check if you need any special certifications. Some states or cities require specific licenses for repairs to musical instruments or electronics, so make sure you’re covered. Don’t skip this step — it’s important to double-check with your local government to ensure you have everything lined up before you open your doors and start tuning up those guitars.

Step 4: Stock Your Guitar Store With the Right Inventory

Once your location is set, the next step is to focus on stocking your store. A successful guitar store requires a strong understanding of the instruments you sell. Customers are knowledgeable — especially since the average guitar player is around 30 years old, with nearly 37% holding a college degree. If they’re spending serious money, trust that they’ve done their research — and they’ll expect you to do the same.

You’ll need to carry popular brands like Gibson and Fender, but consider stocking lesser-played brands like Epiphone, too. While not as widely purchased as Fender and Gibson, Epiphone still has a loyal following and offers great instruments that can appeal to a segment of your customer base.

Remember to stock a variety of guitars — acoustic, electric, bass, and more. Know what works in your area since regional preferences vary. For example, jazz guitars might be more popular in New Orleans, while in Texas or the Midwest, acoustic guitars might be the preferred choice. Do your research and adapt to local trends.

Along with guitars, make sure your store is stocked with essentials like strings, tuners, picks, straps, and amplifiers. You also want to have extra parts on hand — pickups, cables, and tools — to assist customers with maintenance and repairs. Offering repair services helps boost your store’s revenue and build long-term relationships with your customers.

Step 5: Get the Right POS System for Your Music Store

When opening a guitar store, one of the smartest investments you can make is the right point of sale (POS) system. A POS system tailored for music stores helps you manage everything from guitar and amp inventory to processing sales and tracking customer data — all while supporting your marketing efforts.

Look for a POS system with features like:

Inventory management: You need to keep track of each guitar, amplifier, and accessory in stock. A good system automatically updates stock levels and helps you reorder instruments, strings, pedals, or other accessories when inventory is low.
Sales reports: A reliable POS generates detailed sales reports, showing you which guitars, amps, and gear are selling well and which ones are sitting on the shelf. This insight helps you make smarter purchasing decisions and optimizes your inventory mix.
Customer profiles: Some systems allow you to create customer profiles, which can be super valuable for personalized marketing. Track their favorite guitar brands, accessories, and past purchases to offer tailored promotions, loyalty rewards, and exclusive deals.
Payment flexibility: Make sure your POS can handle a variety of payment options, from credit cards and cash to financing options for bigger-ticket items like high-end guitars and custom-built instruments.

Having a POS system that’s built specifically for a guitar store makes managing your business much easier and gives you the tools to scale effectively.

Step 6: Launch an Online Store and Tap Into the Resale Market

Opening an online store is a smart move in the retail guitar world. The resale market for guitars brings in over $1 billion per year, and having an online presence allows you to tap into that.

With an online store, you can reach customers beyond your local area, creating new sales opportunities and expanding your customer base. Integrating resale platforms like Reverb directly into your website lets you offer both new and used guitars, giving your customers more options.

Being a part of the resale market also gives you the chance to find rare guitars, like a 1959 Gibson Les Paul Standard “Burst,” which can sell for a small fortune. Staying connected with resellers — both locally and nationally — builds relationships with people who might have access to rare instruments or insider info about upcoming events and sales. These connections open doors to networking opportunities with other collectors, musicians, or business owners who can help promote your store or guide you to valuable finds.

Adding resale options to your store not only broadens your inventory, but keeps you tuned in to the wider guitar market. Whether it’s discovering unique guitars, attending events to promote your business, or connecting with others in the guitar space, an online store helps your business stay competitive and grow.

Step 7: Market Your Store and Build a Community

Now that your guitar store is up and running, it’s time to get the word out and bring customers in. Effective marketing is essential for getting your name out there, especially when you’re just starting. Here are a few ways to attract attention and build a community around your store:

Create a website: A website is essential for modern businesses. It lets customers check out your selection of guitars, amps, and accessories, browse your prices, and even shop online — if that’s part of your plan. It’s a digital storefront that helps build trust with potential customers before they ever step foot in your shop.
Social media: Platforms like Facebook, Instagram, and TikTok are great tools for showcasing your guitars and any events or sales you’re hosting. Share videos of new gear arriving, customer reviews, or even behind-the-scenes content like live performances and jam sessions to keep your audience engaged.
Host events: In-store events, like guitar workshops, jam nights, or live performances, help you build a community of local musicians who keep coming back. These events not only create buzz, but help develop a loyal customer base that feels connected to your store. Plus, word-of-mouth advertising goes a long way.
Offer promotions: Consider offering discounts or special promotions, particularly when you first open. It’s a great way to attract curious customers who might be hesitant to buy from a new shop. Whether it’s a “Buy a Guitar, Get a Free Strap” offer or a seasonal sale, deals like these draw people in and kick-start your business.

With the right marketing strategy, you’ll create a hype around your store, connect with musicians, and build a loyal customer base that keeps coming back.

Bonus Tip: Focus on Customer Service

Customer service builds brand loyalty, and it can make or break your guitar store. While having great guitars and gear is important, providing exceptional customer service sets your shop apart from the competition.

Your staff should be friendly, approachable, and most importantly, knowledgeable. Whether a customer is a first-time buyer or a seasoned player, offering advice on everything from choosing the right guitar to maintaining it will earn their trust. Helping someone find their perfect guitar or offering tips on tuning, cleaning, or upgrading can turn a one-time buyer into a loyal customer.

In the end, exceptional customer service can make up for some minor faux pas. Even if you have the best or rarest inventory, customers won’t tolerate staff who seem disengaged or rude. A positive experience — from the moment someone walks in to when they leave with their new guitar — will create a lasting impression and lead to word-of-mouth referrals.

Open Your Dream Guitar Store With Music Shop 360

Opening a guitar store is an exciting journey, and with the right tools and planning, you can make it a successful one. Music Shop 360 helps streamline your operations and gives you the support you need to thrive. From inventory management to customer engagement, our platform is tailored to meet the unique needs of a guitar store.

Our system also offers marketing and operational tools, including e-commerce integration, email campaigns, and detailed analytics to help boost sales and engage with customers effectively. Plus, with our specialized POS system, you save time managing sales, rentals, repairs, and lessons, so you can focus on what matters most — growing your business.

Ready to take your store to the next level? Schedule a free demo today to discover how Music Shop 360 can help you open, run, and grow your dream guitar shop!