Starting a vape business in the USA presents significant challenges due to complex regulations, marketing restrictions, and capital requirements. Many entrepreneurs are attracted to this industry but quickly become overwhelmed by the legal hurdles and compliance demands.

To start a vape business in the USA, you must navigate federal, state, and local regulations, obtain necessary licenses, secure reliable suppliers, develop compliant products, create a strong brand identity, establish distribution channels, implement age verification systems, and secure sufficient funding. The process typically takes 6-12 months and requires initial investment ranging from $50,000 for a small retail operation to $500,000+ for manufacturing and distribution businesses.

"Vape business planning documents"

The vaping industry continues to evolve rapidly with changing regulations, technological advancements, and shifting consumer preferences. Despite challenges, entrepreneurs who approach this market with thorough preparation and compliance-focused strategies can build sustainable businesses.

Do You Need a License to Sell Vapes in the US?

The regulatory landscape for vape products creates significant confusion for new entrepreneurs. Many assume they can simply purchase products wholesale and begin selling without special permissions, similar to other retail businesses.

Yes, you absolutely need licenses to sell vape products in the USA. At the federal level, all manufacturers, importers, distributors, and retailers must register with the FDA and comply with the Premarket Tobacco Product Application (PMTA) requirements. Additionally, most states require a specific tobacco or electronic cigarette retailer license, with annual fees ranging from $100 to $1,200 depending on your location. Some states and municipalities require additional permits specifically for nicotine-containing products. You'll also need standard business licenses including a general business license, Employer Identification Number (EIN), sales tax permit, and potentially a wholesale license if you'll distribute to other retailers. Operating without proper licensing can result in fines exceeding $10,000 per violation, product seizures, and potential criminal charges.

"Vape licensing documentation"

The licensing process for vape businesses involves navigating a complex web of federal, state, and local requirements that frequently change and vary significantly by location. Understanding these requirements is essential for establishing a compliant operation.

The FDA regulatory framework represents the primary federal oversight for vape products, enforced through the Center for Tobacco Products (CTP). Following the 2016 Deeming Rule, all Electronic Nicotine Delivery Systems (ENDS) became regulated tobacco products, requiring manufacturers and importers to register establishments and submit product listings. The most significant federal requirement is the Premarket Tobacco Product Application (PMTA)¹ process, which requires manufacturers to demonstrate that their products are "appropriate for the protection of public health." This extensive application includes detailed product composition, health risk assessments, manufacturing processes, and potential impact on both users and non-users. While retailers aren't directly responsible for PMTAs, they can only legally sell products that have received marketing authorization from the FDA. During my consultations with new vape entrepreneurs, I've found this distinction frequently misunderstood – many believe they can sell any product without verifying its regulatory status, which can lead to significant liability. The FDA maintains a searchable database of authorized products, which responsible retailers must regularly consult to ensure compliance. The complexity of this system means even established businesses must dedicate significant resources to compliance monitoring, with many employing dedicated compliance specialists or consultants to track regulatory developments.

State-level licensing requirements add another layer of complexity and vary dramatically across jurisdictions. California, for example, requires a Cigarette and Tobacco Products Retailer's License² ($265 annually) from the California Department of Tax and Fee Administration, plus a Tobacco Retailer License from many local jurisdictions. New York requires a Retail Dealer Registration for Cigarettes and Tobacco Products from the Department of Taxation and Finance ($300 annually) and recently implemented additional vapor products dealer registration. Florida necessitates a Tobacco Retail License from the Division of Alcoholic Beverages and Tobacco ($50 annually). Texas requires a Cigarette, Cigar, and/or Tobacco Products Retailer's Permit from the Comptroller's office ($180 annually). These examples merely scratch the surface of state variations, as requirements frequently change and may include different fee structures for online versus physical retailers, varying renewal periods, and differing application processes. During my work helping vape startups navigate multi-state operations, I've observed that this regulatory patchwork creates significant operational challenges, as businesses must maintain current licensing across all jurisdictions where they sell products. Many entrepreneurs underestimate both the initial licensing costs and the ongoing administrative burden of maintaining compliance across multiple jurisdictions. Successful operations typically implement robust compliance calendars and dedicated personnel to manage renewal timelines and requirement changes.

Local licensing requirements create the third regulatory layer, often with the most stringent operational restrictions. Many municipalities have implemented additional licensing beyond state requirements, particularly in areas concerned about youth access to nicotine products. For example, certain counties in Maryland require specific Electronic Smoking Device licenses ($25-$75) on top of state tobacco permits. Chicago requires a Tobacco Retail License ($500 initially, $250 annual renewal) with specific additional provisions for electronic cigarette sales. San Francisco has effectively banned all electronic cigarette sales through local ordinance despite state licensing mechanisms existing. Local requirements frequently include specific operational restrictions such as minimum distance requirements from schools (typically 500-1,000 feet), restrictions on hours of operation, limitations on product displays, and specific signage requirements. These local regulations can significantly impact site selection and business operations, sometimes effectively creating "zoning out" situations where no viable retail locations exist within certain municipalities despite licenses technically being available. During my facility planning consultations with vape entrepreneurs, I've found that these local restrictions often constitute the most limiting factor in determining viable business locations, requiring careful analysis during the planning phase to avoid investing in locations that appear suitable but cannot legally operate as vape businesses.

The age verification requirements³ represent a critical compliance area for vape businesses with particularly severe penalties for violations. Under federal law, retailers must verify that purchasers are at least 21 years old, with the specific verification methods becoming increasingly stringent. For online sales, the FDA and many states now require more than simple age-attestation checkboxes, instead mandating advanced age verification services that cross-check purchaser information against public records databases, with some states requiring signature verification upon delivery. Physical retailers must check government-issued photo identification for anyone under 30, with some states requiring ID checks for all customers regardless of apparent age. California has implemented particularly robust requirements through its STAKE Act, requiring specific age verification training programs for employees and maintaining signed age verification logs. Beyond regulatory requirements, credit card processors and delivery services often impose their own age verification mandates as conditions of service. The penalties for age verification failures are particularly severe, with fines typically starting at $500 for first violations and escalating to $10,000+ for repeat offenses, often accompanied by license suspensions or revocations. During FDA compliance checks, undercover operatives regularly attempt to purchase without identification, creating significant risk for businesses without robust verification protocols. Successful vape businesses implement comprehensive age verification training programs, regular compliance audits, and multiple verification checkpoints to mitigate these risks.

Is It Hard to Start a Vape Company?

Many potential entrepreneurs are drawn to the vape industry by its visible growth and seemingly straightforward business model. The apparent simplicity of purchasing wholesale products and selling at markup makes this business appear accessible compared to more complex industries.

Yes, starting a vape company is exceptionally challenging compared to most other retail businesses due to unique industry barriers. Beyond the extensive licensing requirements, vape businesses face significant operational hurdles including: restricted access to financial services, with major banks and payment processors often declining vape business accounts; substantial insurance difficulties, with premiums 300-400% higher than comparable retail operations when coverage is available; extremely limited marketing options due to prohibitions on most digital advertising platforms; constantly changing regulations requiring ongoing legal consultation; complex supply chain management to ensure all products meet current FDA requirements; specialized retail infrastructure for product security and age verification; and higher-than-average initial inventory investments due to product diversity requirements. Additionally, vape businesses face significant public perception challenges and potential future regulatory restrictions that create uncertainty for long-term planning.

"Challenges facing vape startups"

The banking and financial services challenges represent one of the most significant operational hurdles for vape businesses, creating complications that extend throughout all business activities. Despite being legal businesses, vape companies face similar financial service restrictions to other highly regulated industries, with most major banks and payment processors declining their accounts. This banking discrimination⁴ stems from several factors: risk department concerns about regulatory compliance, potential future liabilities, and classification of vape products as "high-risk" similar to alcohol, firearms, and gambling services. In practical terms, this means vape startups typically cannot secure accounts with major national banks, cannot use popular payment processors like Square or PayPal, face difficulties obtaining business loans, and must work with specialized high-risk merchant account providers that charge premium rates (typically 5-8% versus 2-3% for standard businesses). During my initial business development, I experienced rejection from seven banks before finding a local credit union willing to provide basic business banking services. These financial restrictions create cascade effects throughout operations, complicating everything from payroll processing to vendor payments to customer transactions. Successful vape businesses typically develop relationships with smaller regional banks or credit unions, implement multiple payment processing solutions as contingencies, maintain higher cash reserves to manage payment processing interruptions, and often develop cryptocurrency payment options as alternatives when traditional processing faces disruptions. The financial services challenge alone adds significant operational complexity and costs that many entrepreneurs fail to anticipate in their initial business planning.

The marketing and advertising restrictions⁵ create another substantial barrier that dramatically impacts customer acquisition strategies. Unlike most retail businesses that can utilize mainstream advertising platforms, vape businesses face near-total exclusion from major digital marketing channels. Google, Facebook, Instagram, Twitter, TikTok, YouTube, and most major advertising networks explicitly prohibit vape product advertising. These platform-specific policies extend beyond obvious product advertisements to include indirect marketing such as educational content about vaping, brand awareness campaigns, and even store location promotion if the business primarily sells vape products. Traditional media channels often implement similar restrictions, with many print publications, radio stations, and outdoor advertising companies declining vape-related content. These marketing limitations force vape businesses to develop alternative promotion strategies including: in-store events and loyalty programs, industry-specific publications and websites, email marketing to existing customers, search engine optimization focused on organic search traffic, public relations targeting industry publications, strategic partnerships with complementary businesses, and community engagement efforts. During my experience developing marketing strategies for multiple vape brands, I've found these restrictions typically double or triple customer acquisition costs compared to businesses with access to mainstream advertising platforms. Successful vape businesses invest heavily in creative marketing alternatives and customer retention programs to overcome these limitations, requiring specialized marketing expertise that understands both the technical restrictions and effective alternative approaches.

The rapidly evolving regulatory environment creates perpetual compliance challenges that extend well beyond initial licensing. The vape industry has experienced more regulatory changes in the past five years than many industries face in decades, requiring constant monitoring and adaptation. The FDA continues to refine its PMTA review process, with authorization decisions regularly changing product availability. State regulations frequently change in response to public health concerns and legislative priorities, sometimes with minimal implementation notice. Local ordinances continue to evolve, with municipalities regularly implementing new restrictions on locations, flavors, and operations. These overlapping regulatory changes require vape businesses to maintain regulatory monitoring systems that track developments across multiple jurisdictional levels, often necessitating relationships with specialized attorneys or compliance consultants. The practical impact includes regular inventory adjustments as product authorizations change, frequent policy and procedure updates to meet new requirements, ongoing staff training to ensure compliance with changing rules, and periodic physical location modifications to meet evolving requirements for product storage and display. One particularly challenging aspect of this regulatory flux is the frequent need to remove non-compliant inventory as authorizations change, creating significant potential for inventory losses not typically faced by other retail businesses. During industry association meetings I've attended, regulatory compliance consistently ranks as the top operational challenge reported by vape business owners, with many dedicating 15-20% of operational time purely to compliance monitoring and implementation activities.

The supply chain management requirements for vape businesses present complexities well beyond typical retail operations. Unlike most retail categories where product sourcing primarily focuses on cost and quality considerations, vape businesses must primarily focus on regulatory compliance in their sourcing decisions. This requires implementing supplier verification protocols to ensure all products have current FDA marketing authorizations, developing tracking systems for authorization expiration dates and status changes, and maintaining comprehensive product documentation including ingredient lists, manufacturing details, and test results. Many vape businesses implement formal supplier qualification programs, regularly auditing their suppliers' regulatory compliance and documentation. The global nature of the vape supply chain creates additional complications, as many products originate from international manufacturers who may not fully understand or comply with U.S. regulations. During manufacturing facility tours I've conducted in Shenzhen, China (the global hub of vape production), I've observed the dramatic variation in regulatory awareness among manufacturers, highlighting the importance of thorough supplier vetting. Beyond compliance concerns, vape supply chains face frequent disruptions due to regulatory changes, shipping restrictions, and customs challenges, requiring businesses to maintain larger inventory buffers and multiple supplier relationships for critical products. Successful vape businesses typically develop proprietary supplier evaluation systems, maintain comprehensive product documentation databases, implement contingency planning for supply disruptions, and often work with specialized import consultants to navigate the complexities of international vape product sourcing.

Is the Vape Business Profitable?

The visible presence of vape shops in many communities suggests a thriving, profitable industry. Entrepreneurs often observe premium pricing on products and assume this translates to substantial profit margins for business owners.

Yes, the vape business can be profitable, but with important caveats regarding business model and scale. Retail-only vape shops typically achieve 30-45% gross margins but face high operational costs including lease expenses, compliance costs, and labor, resulting in net profit margins of 10-15% when well-managed – comparable to other specialty retail operations but with higher regulatory risks. Distribution businesses generally operate on thinner margins (15-25% gross) but can achieve greater scale, while manufacturing operations offer the highest potential returns (50-70% gross margins) but require substantial startup capital, technical expertise, and regulatory navigation capability. The most profitable vape business models typically integrate multiple revenue streams: combining retail with house-brand products, adding subscription services, developing proprietary hardware or e-liquid lines, expanding into multiple locations to leverage operational efficiencies, or creating specialized product niches serving underserved market segments.

"Vape business profit analysis"

The financial structure of vape businesses varies significantly based on business model, location, and operational strategy. Understanding the realistic profit potential¹ and key financial drivers helps entrepreneurs develop sustainable business plans and appropriate funding strategies.

The retail vape shop financial model presents a mixed picture of moderate margins with significant operational complexities. Typical product margin structures in retail vape operations include: disposable vape devices (35-45% gross margin), refillable device systems (40-50%), e-liquids (45-60%), coils and accessories (50-65%), and CBD/alternative products (40-55%). These seemingly attractive margins must support substantial operational costs² including commercial leases ($2,000-10,000 monthly depending on location and size), specialized fixtures and displays ($15,000-30,000 initial investment), comprehensive insurance packages ($4,000-12,000 annually), licensing and compliance costs ($1,500-5,000 annually), specialized inventory management systems, and typically higher-than-average staffing requirements due to product knowledge needs and security considerations. During my financial consultations with vape retailers, I consistently find that successful operations maintain significantly higher gross margins than comparable retail businesses to compensate for these elevated operational costs. A typical profitable independent vape shop generates $300,000-600,000 in annual revenue with 35-45% blended gross margins, resulting in $105,000-270,000 gross profit. After accounting for operational expenses, well-managed shops typically achieve 10-15% net profit margins, translating to $30,000-90,000 annual profit – respectable returns but requiring substantial expertise and careful financial management. The most financially successful retail operations typically develop additional revenue streams beyond basic product sales, including subscription programs, membership models, or service components like build services and device maintenance.

The manufacturer-distributor model offers potentially higher returns but requires substantially greater initial investment and operational sophistication. Vape product manufacturing requires specialized facilities ($100,000-500,000 initial setup), comprehensive testing equipment ($50,000-200,000), regulatory compliance³ infrastructure, specialized personnel including formulation experts and quality control staff, and substantial working capital for raw materials and inventory. The manufacturing regulatory burden is particularly significant, as manufacturers bear primary responsibility for PMTA submissions, with costs ranging from $117,000 to $466,000 per product according to FDA estimates. However, this model offers significantly higher margin potential, with successful manufacturers achieving 50-70% gross margins on proprietary products and the ability to scale operations more effectively than retail-only businesses. Distribution operations typically operate on thinner margins (15-25% gross) but offer volume advantages and greater geographical reach. During industry financial benchmarking sessions I've participated in, manufacturers consistently report the highest profit potential but also the greatest regulatory risk exposure and capital requirements. The most successful manufacturing operations typically focus on specific product niches rather than attempting to compete across all categories, develop proprietary technologies or formulations that create competitive advantages, and implement robust regulatory compliance systems that become strategic assets rather than mere cost centers.

The online vape business model presents a distinct financial profile with unique advantages and challenges. E-commerce operations typically achieve lower gross margins than physical retail (25-35% versus 35-45%) due to pricing transparency and competition, but benefit from substantially lower overhead costs without physical retail space requirements. However, online operations face significantly higher customer acquisition costs due to marketing restrictions, shipping complexities including specialized age verification requirements, higher payment processing fees through high-risk merchant accounts (typically 5-8% versus 2-3% for standard retail), and more complex regulatory compliance across multiple jurisdictions. During my work developing omnichannel strategies for vape retailers, I've observed that successful online operations typically require $75,000-150,000 initial investment and generate positive cash flow within 9-12 months when well-executed. The most successful online vape businesses develop specialized niches rather than competing on mainstream products, create subscription models to improve customer retention and reduce acquisition costs, implement robust content marketing strategies that provide value beyond product sales, and develop proprietary products with stronger margins. The financial viability of online-only models has diminished somewhat in recent years as shipping restrictions have increased and marketing channels have narrowed, making hybrid models that combine online sales with at least one physical location increasingly advantageous for operational flexibility.

The current profitability landscape reflects an industry in transition, with regulatory developments creating both challenges and opportunities. Recent years have seen significant consolidation, with larger operations acquiring independent shops and smaller manufacturers, creating economies of scale that can better absorb compliance costs. Profit leaders in the current market typically share several characteristics: diversified revenue streams across multiple product categories; strong compliance infrastructure that turns regulatory requirements into competitive advantages; proprietary products or exclusive distribution relationships that provide margin protection; sophisticated inventory management systems that optimize cash flow; and lean operational structures that carefully control fixed costs. For entrepreneurs entering the market, profitability prospects depend heavily on positioning and execution. New entrants focusing purely on commodity products face thin margins and challenging economics, while those developing specialized niches, proprietary formulations, or innovative service models can still achieve attractive returns. During my financial advisory work with industry startups, I recommend developing detailed five-year projections that explicitly account for regulatory compliance costs, marketing limitations, and capital requirements for inventory. Successful business plans typically demonstrate profitability within 18-24 months, with first-year losses anticipated as customer acquisition and market positioning investments are established. The industry continues to offer profit potential, but requires substantially more sophisticated planning, stronger capitalization, and more specialized expertise than most retail categories – factors that have reduced the number of new entrants but improved the quality and sustainability of those that do enter the market.

How Big is the US Vape Market?

Many entrepreneurs considering the vape industry struggle to find reliable market size data. Public perceptions range widely from viewing vaping as a declining trend to seeing it as a massive growth market, creating confusion about the actual market potential.

The US vape market is substantial and growing despite regulatory headwinds. Current market size estimates range from $8.1 billion to $9.3 billion annually (2022), representing approximately 3% of the total US tobacco market but growing at 4-5% annually while traditional tobacco products decline. The market consists of several distinct segments: disposable vapes (currently the fastest growing at 30%+ annually), accounting for approximately 35% of sales; pod/cartridge systems representing about 30%; refillable tank systems at roughly 20%; e-liquids at 10%; and accessories at 5%. The customer base includes approximately 13.7 million regular adult vapers in the US (about 5% of the adult population), with market penetration varying significantly by region and demographic. Market concentration is moderate, with the top ten manufacturers representing approximately 70% of sales, while retail remains fragmented with the largest chains controlling less than 15% of total retail distribution.

"US vape market statistics"

The US vape market demonstrates significant segmentation across product categories, distribution channels, and consumer demographics, creating diverse opportunities for specialized business models targeting specific market niches.

The market dynamics within specific product segments reveal varying growth trajectories and competitive landscapes. The disposable vape category⁶ has experienced the most dramatic growth, expanding from approximately 15% of the total market in 2019 to 35% in 2022, driven by convenience, technological improvements, and consumer preference for simplified systems. Within this segment, competition has intensified with over 150 brands currently available, though regulatory actions against unauthorized products are likely to significantly reduce this number over the coming years. The pod/cartridge systems segment remains dominated by a smaller number of manufacturers, with approximately 65% of sales concentrated among five major brands, creating higher barriers to entry for new manufacturers but opportunities for specialized retail and distribution operations. The traditional tank system and e-liquid segments have stabilized after initial declines, maintaining loyal customer bases of experienced users who value customization and cost efficiency over convenience. During my product strategy consultations with manufacturing clients, I've observed the emergence of hybrid products that combine elements of different categories, such as refillable pods and semi-disposable systems, demonstrating ongoing innovation despite regulatory constraints. The component and accessories segment, though smaller in revenue terms, typically offers superior margins (45-65%) and faces fewer direct regulatory restrictions, providing ancillary revenue opportunities for businesses primarily focused on devices and e-liquids. The overall product landscape continues to evolve rapidly, with significant innovation occurring in response to regulatory constraints, creating opportunities for businesses that can quickly adapt to emerging consumer preferences within compliant frameworks.

The regional market distribution reveals significant geographic variation in both market size and product preferences. The largest vape markets by state are California (approximately 15% of national market despite significant regulatory restrictions), Florida (11%), Texas (9%), New York (7%), and Illinois (5%), reflecting both population distribution and regional regulatory environments. Significant regional variations exist in product preferences, with disposable systems showing strongest market share in the Midwest and South (38-42% of sales), while tank systems and e-liquids maintain higher market share in the Pacific Northwest and Mountain states (combined 35-40% of sales). These regional variations reflect differing regulatory environments, consumer demographics, and distribution infrastructure. Additionally, substantial urban-rural divides exist in product availability and consumer preferences, with urban markets demonstrating greater product diversity and faster adoption of new products, while rural markets show stronger customer loyalty and price sensitivity. During my national distribution planning work, these regional variations have necessitated tailored inventory and marketing strategies for different geographical areas. The market concentration also varies significantly by region, with some states (particularly in the Northeast) showing higher chain store concentration, while others maintain stronger independent retail presence. These regional variations create opportunities for businesses with strong local market knowledge to develop tailored product and service offerings that address specific regional preferences and distribution challenges.

The demographic composition of the vape consumer base⁷ provides important insights for market sizing and targeting. The current US vaping population includes approximately 13.7 million regular users (defined as vaping at least once weekly), with demographic distribution showing highest concentration in the 25-44 age range (representing approximately 56% of users). Gender distribution has evolved toward greater balance, with men representing 58% of users (down from 70%+ in early market years). Income distribution analysis reveals interesting patterns, with dual concentration among middle-income consumers ($35,000-75,000 annually, approximately 45% of users) and higher-income brackets ($100,000+, approximately 25% of users), but lower representation in lower-income brackets compared to traditional tobacco products. Former smokers represent the largest user segment (approximately 65%), with dual users (those who both smoke and vape) representing about 25%, and never-smokers approximately 10%. Customer segmentation research I've conducted reveals distinct usage patterns and product preferences across these demographic groups, with former smokers demonstrating stronger brand loyalty and higher average transaction values, while younger adult users show greater experimentation across brands and products. The demographic data indicates a maturing market that has evolved beyond early adopters to reach mainstream consumer segments, but with significant potential for further penetration among current smokers (approximately 34 million US adults) who represent the primary conversion opportunity for future market growth.

The market forecast through 2026⁸ suggests continued growth despite regulatory headwinds, with total market size projected to reach $12-14 billion annually by 2026, representing 5-7% compound annual growth. This growth projection factors in expected regulatory impacts, including potential national restrictions on flavored products, increased taxation, and continued PMTA enforcement actions. Industry consolidation is expected to accelerate, with larger manufacturers and retail chains capturing increased market share as compliance costs create competitive advantages for scaled operations. Product evolution will likely continue toward simplified systems with enhanced technology, biodegradable components, and reduced environmental impact. Alternative nicotine delivery systems including nicotine pouches, lozenges, and synthetic nicotine products are expected to capture increasing market share, potentially reaching 15-20% of the total alternative nicotine market by 2026. Distribution channels will likely continue evolving, with specialized vape retailers maintaining a significant but declining share of the market (projected to fall from approximately 45% currently to 35-40% by 2026), while online sales, convenience channels, and tobacco outlets capture larger shares. During strategic planning sessions with industry partners, these forecasts have driven increased investment in compliance infrastructure, alternative nicotine technologies, and omnichannel distribution capabilities as hedges against potential category-specific regulations. For entrepreneurs considering market entry, these projections suggest opportunities remain viable but require careful positioning with emphasis on regulatory compliance capabilities, product diversification, and operational flexibility to navigate changing market conditions.

Conclusion

Starting a vape business in the USA requires navigating complex regulations, substantial capital investment, and operational challenges unique to this industry. Success demands thorough understanding of licensing requirements, strategic positioning within the growing market, and development of robust compliance systems. Despite challenges, profitable opportunities exist for well-prepared entrepreneurs with appropriate capitalization and specialized expertise.

My Role

As the founder of FOF Vape, I've guided numerous entrepreneurs through the process of establishing compliant, profitable vape businesses. My journey from factory employee to manufacturing company owner has provided firsthand experience with every aspect of this industry, from production challenges to regulatory navigation to retail operations.

When Tommy approached me about starting his vape distribution business in Malaysia, I recognized his exceptional product design background would be valuable, but he needed guidance on operational realities. Drawing on my experiences helping US-based clients, I outlined the regulatory framework he would face, capital requirements for inventory and compliance, and marketing strategies that would work within industry constraints.

Over the past decade, I've watched many entrepreneurs succeed in this space by approaching it with proper preparation and realistic expectations. The key has been helping them understand that in the vape industry, compliance isn't just a cost center—it's a competitive advantage that creates barriers to entry and protects businesses that do things properly. Tommy's distribution company now serves retailers across Malaysia, with a reputation for quality products and regulatory expertise that differentiates his business from competitors who cut corners.