Regardless of the health of our economy, thrift stores can be a good opportunity for those looking to start a business. The clientele can be transversal, from families with low budgets to collectors looking for small treasures. If you like the idea of running a fun and potentially profitable business, you can start a used item resale by following a few simple steps.
Steps
Step 1. Decide if you want to start a for-profit or non-profit business
Each of the two options has advantages and disadvantages, so you may need to talk to a business consultant or lawyer before deciding.
- A for-profit activity will allow you to have greater management freedom and to obtain greater earnings. However, it could guarantee you access to fewer subsidies or soft loans; you probably won't be able to enjoy a tax exemption, even if part of your income goes to charity.
- A non-profit business might allow you to get free leases, advertising, or other low-cost necessities, but day-to-day management may be subject to stricter and burdensome regulation.
Step 2. Prepare and file all necessary documents
These include business permits, insurance policies and tax returns.
Step 3. Choose a venue
Most of the time you will have to look for a small place to rent or that can be given to you. It should have ample parking, good lighting and large windows to set up shop windows, where you can place the most important items to attract customers.
Step 4. Make a sketch of the floor plan of the venue and decide which types of goods you will sell in the different areas of the venue
This way you will reduce the number of exhibitors you will need. You can buy them in a specialized shop or at an auction of discarded products from a bankrupt company.
Step 5. Collect and store items for sale
Most of the time used goods dealers accept semi-used, second-hand and all kinds of goods.
- Run an advertising campaign to get donations. If possible, establish a day and a place in each neighborhood where people who wish to make a donation can arrange items that you will pick up.
- Pay a visit to large wholesale distribution centers, where used items can be purchased by weight, not number.
- Check your local newspaper for any upcoming auctions.
- Pay a visit to land sales agencies or an auction center and ask to buy unsold products.
Step 6. Hire staff for your thrift store
If you are discouraged by hiring procedures, consider seeking specialist advice.
Step 7. Advertise the business opening
To get the most out of the opening day, you'll need to start the advertising campaign at least two to four weeks before the opening date. Using online tools, you can easily organize a complete campaign at a low cost, through emails, banners and advertisements. The week before the opening, place an ad in the local newspaper or television.
Advice
- Include a discount coupon in your flyers to use on the opening day, it's a great idea to attract more customers.
- Before starting a thrift store, make sure you have enough capital to cover your daily expenses for at least two years. Only in this way will you be able to make a profit from your business.
