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Regardless of economic climate, resale shops, also called thrift stores, can be a popular choice with shoppers. The clientele can encompass everyone from families on limited budgets to collectibles dealers searching for their next great treasure. If you are interested in a fun and potentially profitable way to make a living, you can start a thrift store business by following some basic steps.
Steps
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Decide if you want to start a thrift store that is a for-profit or not-for-profit business. [1] X Research source There are benefits and drawbacks to each type of business so you may wish to discuss the options with a certified business planner or attorney before you decide.
- Starting a for-profit thrift store business will allow more freedom in your management style and allow for larger profits. It may also mean you are eligible for fewer grants and fewer low-interest loans. Your business may not qualify for tax-exempt status even if you are donating some of the proceeds to charity.
- Starting a not-for-profit thrift store may allow you to apply for free or low-cost rent, advertising and other business necessities but your day-to-day management may be inhibited by additional government regulations.
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Prepare and file all required documents. This may include business licenses, insurance policies and tax account status forms. [2] X Research sourceAdvertisement
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Choose a location. [3] X Research source In most cases you will be looking for existing retail space that you can rent, lease or have donated. It should have ample parking, good lighting and a display-style window where you can set up prime items to entice shoppers into the store.
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Sketch a basic floor plan and decide what type of merchandise you are going to sell in each area. This will help you narrow down what type of display fixtures you need to purchase. You can buy them at fixtures stores or buy them from businesses that are closing.
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Stock inventory to sell. Most thrift stores stock gently-used, previously-owned goods with a lot of variety. [4] X Research source
- Advertise for donations to stock your store. If possible, schedule a day in each neighborhood where people who wish to donate can place items on the curb for you to pick up.
- Visit bulk distribution centers where used goods can be purchased by the pound instead of per piece.
- Check your local paper for storage unit auctions.
- Visit yard and estate sales toward the end of the sale and offer to purchase the unsold items as a lot.
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Hire people to staff your thrift store. If the hiring process seems daunting, consider going through a staffing service.
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Advertise your grand opening. For the best turnout on opening day, you want to start advertising heavily 2 to 4 weeks before your grand opening date. Using online sources for marketing materials, you easily and inexpensively run a marketing saturation campaign using direct mail postcards, banners and signs. The week before your grand opening date issue press releases to the local media and take out an advertisement in the local media. [5] X Research source
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Expert Q&A
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QuestionIs opening a thrift store worth it?Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston.Although this can be a worthwhile business, remember that owning a business is, unfortunately, a full time commitment. If that's where your heart is, it might be worth it. If you're not willing to commit to it, or trust someone to take the business in the direction that you want it to be, I would highly say don't do it.
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QuestionThings to know before opening a business?Community AnswerThere's too much to list in a few sentences. You can go to your city hall for licensing and insurance requirements. You may also want to take a few business courses.
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QuestionWhat's the difference between a non-profit and profit organization?Community AnswerA non-profit generally doesn’t have to make large profits to remain open. Their main goal is to raise money for the organization they are attached to or support charity or a public interest. A for-profit usually has the goal in mind of making a profit and expanding.
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Tips
- Before you start a thrift store make sure that you have enough operating capital to cover the daily expenses for the first 2 years. This will allow your thrift store the opportunity to generate a profit.Thanks
- Adding an opening day discount coupon to your marketing postcards is a great way to draw shoppers to your grand opening.Thanks
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References
- ↑ https://careertrend.com/start-thrift-store-9635.html
- ↑ https://careertrend.com/start-thrift-store-9635.html
- ↑ https://www.budgetsaresexy.com/how-to-open-thrift-store-with-tips/
- ↑ https://smallbiztrends.com/2016/07/open-a-second-hand-shop.html
- ↑ https://www.entrepreneur.com/article/56200
- http://www.entrepreneur.com/startingabusiness/startupbasics/article170776.html
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Reader Success Stories
- "My husband and I just recently open up a thrift store in Mississippi. We love it, and I wanted to read the article to make sure we've done right in our business. This article helped me so much. Thanks." ..." more
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"My husband and I just recently open up a thrift store in Mississippi. We love it, and I wanted to read the article to make sure we've done right in our business. This article helped me so much. Thanks."
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"This article had the step-by-step explanation of what I need, which I can start at step one, cross out when I am finished, and so on. Thank you so much. Oh, I almost forgot, I loved the short video."
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"This is a lovely article, I will like to find out if there is a difference between a thrift store and a charity store. We are currently trying to open up a charity store, and need assistance. "
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