Who Needs a Low Cost and Simple Business To Start?
Lots of people over 50 are looking for a small business to start. Some of them have put in decades behind a company desk and are ready for retirement or a change. Others have lost their jobs, find that employment prospects are tough as they age, and have decided that they can provide their own security. We have found one great idea that requires little capital, is fairly simple to run, and has been a winner for many budding business owners. Note we got some inspiration for this article here – Frugal Business and Thrift Shops.
How Much Money Do You Need to Start A Thrift Shop?
There is a famous story, outlined in the article above, of a laid off woman who started her resale shop with the $900 she had left in her bank account. She also had that shop in the black within 6 weeks! However, you should note that she did this quite a few years ago, so that money would not be the same in today’s value.
But there are still ways you can start your thrift store for very little money, and if you do not need an actual store front right away, for even less! A lot of your startup money might go towards renting space, providing a security deposit, paying deposits on utilities, and getting any business insurance the landlord requires.
If you need to buy fixtures and inventory, you will have to spend more. Of course, the very nature of your store means you will be purchasing your inventory at something close to garage sale prices. You can rely upon your own ability to display and clean up your products so you can sell it at a profit. You could also be creative with fixtures, or look for used ones, so you can save more money.
It would be ideal to find a store space with good exposure and good parking. You may be able to make up for a less ideal location, off the main road, with agressive promotion. These days, social networking, can make it a lot easier to get the word out. You can also rely on some older method of cheap advertising like flyers, door hangers, and blurbs in community or neighborhood newsletters.
But under any circumstances, I would estimate that it will cost you a couple of thousand dollars, at the least, to get started. You also need money to pay bills with for some time. The story about the store that was profiting within 6 weeks is great, but it is also very optimistic to expect results like that.
But still, even if you have to set aside a few thousand dollars to get your business started, you will save tens of thousands of dollars over most franchise business opportunities.
A Thrift Store Without A Store
Here is another way to get started that will cost you less, and that will mean you could keep your day job while you began. Try buying local inventory from friends, neighbors, garage sales, auctions, etc. But then flip it online. You do have to pay for auctions at the big sites like EBay, but you can pay as you go, and you will probably spend a lot less than rent would cost. This is really important as you are getting started. And even after you have a brick and mortar business, you may still choose to supplement your revenue with online sales. This way, you do not have to depend upon local business. On the other hand, many retailers never leave the online world, and they do very well that way!
Choose a Niche To Begin
You may notice that your area has competing resale shops, or you may have a particular area of expertise. In this case consider starting with a niche. You can always expand later, and many people find it is easier to succeed quickly if they do not try to be all things to all people.
The particular niche you should choose depends upon what you know. But resale stores for babies, musical instruments, tools, furniture or upscale and gently used brand name clothes are some ideas to start you thinking.
You also need to decide how you want to buy and sell. You may purchase inventory outright, but you have to know how much you can sell things for to make a profit. Please do research before you start spending half your bank roll on used sports uniforms, old books, or out of tune pianos! You could also try buying on consignment, which means you do not have to pay until you sell your products. This may work out very well if you have very little seed cash to get started on.
What Do Yout Think About Resale Shops?
I do not run a resale shop, but I love them! In my opinion, frugal is the new black! I frequent local thrift shops, and I love finding great deals. I also think that starting a resale shop would be a simple and low cost business to start.
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Thrift shops can even be big businesses. Look at Plato’s closet. It is an upscale, brand name clothing thrift shop for teens and young adults. It has spread all over the US as a franchise now. I think that frugal is in.