Starting a Thrift Store

A Thrift store or consignment shop is an excellent business to open and operate when economic times are tough as people are looking to save money on any and everything.  A consignment shop differs slightly in terms of a business model in that you actually do not own any of the products that you are selling.  Most thrift stores buy their inventory and resell it but they do, at times, accept items for consignment.

IF you are starting a thrift store the money you need will vary but you do need to set up a business plan and focus on your market but not in that order.

Customer Base

Before you decide what you are going to sell in your thrift store you want to see who would be likely customers. The way to do that is to see the demographics in a 5 mile radius of where you are considering opening a thrift store. If you have a pretty strong group of younger families, you may want to consider selling clothes and used items that would be for children.

On the other hand if you are in an area where senior citizens are prolific, a store with used clothes, used golf balls and clubs and books might be the way to go.  Once you get the demographic information, google your way to finding what that group buys.

 

Business Plan

When you are putting your business plan together consider that you will need some money in your personal bank account to handle your personal expenses for a few months.

Location - This may be the most important part of your business plan. Make sure that your store is visible from the main roadway and preferably close to or in the same shopping center of high traffic stores.

Store Size - If you can operate in a 2,000 square foot building, do not rent a 5,000 square foot building.  Your store will look empty, your utilities will be higher and you would need to hire more help to oversee that extra space.

Inventory - Having done your market research, you know what you are going to sell but you do need to decide how much inventory to carry.  Too much inventory and you end up with little to no reserve capital and too little and your store will look like a graveyard.

Advertising - Another very important aspect of your business plan.  You will need to announce that your store is open and you'll need to announce it on a regular basis.  A guerrilla marketing plan with flyers, free internet ads and even bandit signs should work well if you play your cards right.




Once you get all your ducks in a row, you should be able to make a tidy living offering good products at pricing that works for the budget conscious as a thrift store and a consignment shop can get some serious traffic.

Why Opening a Thrift Store is a Good Idea

In the world’s ever changing marketplace and the more recent downward trend of the economy, consumers are looking for more ways to save their well earned cash. In an effort to get the most for their dollar shoppers are looking for the best deals, discounts and specials they can find.

Thrift stores provide just that to today’s price conscious consumer.

As an entrepreneur, taking factors such as these into consideration when opening a business is crucial, it could mean the difference between opening a black hole or the ever sought cash cow. Starting a thrift store can be a small gold mine, for the wise entrepreneur can use the overturned market to make a profitable income.

The ability to innovate and individualize a thrift store allows the owner to really “make it their own.” Thrift stores do not necessarily mean you are getting second or third rate products either. The choices are endless when it comes to these bargain havens. They can be as general or specialized as an owner chooses.

Selections can range anywhere from apparel, books, antiques, furniture, music, toys, or a variety of all. The array of choices are never ending, opening a thrift store can allow for an entrepreneurs passion to really shine. It gives way for what we all have heard as “do what you love and love what you do,” a sports fanatic for instant, could open a thrift store specializing in sporting goods and equipment.

In addition, the start-up cost of a thrift store has much less of a strain on your wallet. Products to fill a thrift store can be found in a multitude of places. A major advantage of thrift stores is that you don’t have to buy everything you sell, donations can be a major supply source. In addition to donations, your own bargain hunting can be done at garage sales, online auctions and websites, as well as consigning.

The bargain hunter will never seize to exist which allows for thrift stores to stay alive. Good ideas come as a result of observation, research, and capitalizing on opportunity. Starting a thrift store can be just that, of course, careful planning must be done as is with all new businesses.

As consumers continue to protect their pockets these stores can be the “go-to” place for a more price savvy customer.