Open a Consignment Business

If you love shopping, especially for clothes, chances are you have run across a consignment shop in your day. Consignment shops are more interactive than traditional retail shops in that they offer the customers an opportunity to become a part of the shopping experience. Customers will sell their gently used goods, then the store owner will sell these items in their store for a higher price to make a profit. This gives the store a more community-involved feel that many customers appreciate. It also allows customers to purchase high quality items at very low prices.

Things You'll Need

• Business plan
• Friendly staff

Instructions

1. Choose your desired area. If you want to open a consignment business in your current town, you probably already have a good idea of where you want your business to be located. Even if this is true, it is a good idea to get research on similar stores and make notes of what each one features, location, and any other information that could be beneficial in your business planning, If you are moving somewhere new, do extensive of the are so you can find the right destination for your business.

2. Pick a location. Using your research, find the place that is best for you. Keep your rent range proportionate to your budget and projected profits. While it may be a great location, if you can’t afford it there is no sense in signing a lease. Likewise, a little out of the way might be a lot less inexpensive and affordable boosting profits.

3. Write a business plan. Include in this business plan your estimated amount of expenses, your projected labor costs, equipment costs, projected rent and more. Include your objective, lists of goals, and general business practice plans.

4. Get funding. Consignment stores are particularly easy to keep in stock because you rely on what others sell to you to make a profit for your business. However, you will need plenty of start up capital to get your business rolling. You will need to use the figures noted in your business plan to know how much capital you need. To get funding, seek out small business loans from banks and other lending organizations.

5. Build up your space. This is one of the most exciting parts of opening your store. Install the flooring and display cases. Set up your counter with your cash register. Decorate to your tastes to make your store as inviting as possible to as many people as you can.

6. Scout out your inventory. You probably have a wardrobe full of items you have collected over the years to feature in your store. However, you might be surprised by how much you will need in your store to give your customers plenty of variety. Scout out thrift stores, your friend’s closets, and internet auction sites. Scout out future customers to donate their items to receive a coupon towards their purchase once your store opens.

7. Hire your staff. You might not be able to do it all on your own, especially if business goes well. You will need to hire and train a friendly and courteous staff that can help your business grow.

8. Open your doors. If possible, have a grand opening celebration to introduce your store to the community. Don’t forget to market yourself to keep you in the thoughts of your customers, even after you cut the red tape. Take out ads, post flyers, and even send direct mail to inform your customers of your store.

Resources

• Read this Article in Spanish