How to Start a Second Hand Used Clothing Business

Secondhand clothing stores have increased in popularity in the last decade. In recent years, secondhand---or vintage---clothing has become the chic thing wear. Tough times further increase the appeal of buying quality clothing at discounted prices. Because people of all socioeconomic backgrounds suddenly want to shop for secondhand clothes, it's a great time to start a business that sells them.

Opening a secondhand-clothing store can be profitable while also helping the community. Plus, you're recycling, which helps the environment.

Things You'll Need

• Location for store
• Employees
• Required permits
• Clothing to sell in store
• Cleaning equipment to clean older clothing before reselling

Instructions

1. Pick a location for your store. The location must be in an area where demand for such a business is high. This doesn't mean it has to be in a lower-income section of town---people of all socioeconomic classes shop at secondhand boutiques. Your location should be in a safe area, easy to get to and close to another business that draws a similar clientele.

   Take time to shop around for the right spot, compare prices and weigh pros and cons before choosing a location.

2. Decide what kind of clothing "buy-back" policy you want. Will you only offer in-store credit to people who bring in clothes? Will you pay cash for the clothes up front? Will you operate as a consignment retailer? Your policy will require foresight and determine how much manpower you'll need.

3. Choose a cleaning method for the clothing that comes in. Will you send clothing out to an external cleaner or do all the cleaning in-house?

4. Hire dependable employees who work well with customers. They should have know how to evaluate and appraise the value of clothing that is brought in for buy back. Your employees should also feel as excited about secondhand clothing as you are.

5. Plan your marketing strategy and budget. Decide what type of media you want to use, such as newspapers, magazines, radio and TV. Consider teaming up with a nonprofit organization or charity in order to introduce yourself to the community. Offer special grand-opening discounts and events.

Tips & Warnings

• Most secondhand clothing stores offer buy-back programs, which allow customers to sell their used clothing to the store in exchange for store credit or cash. This is a great way for secondhand clothing stores to expand the merchandise and bring in new customers.

• When dealing with older clothing you need to be extra aware of the possibility of bug infestation. Make sure you carefully check and clean all clothing before putting it out on the floor.

References

• A 'how-to' manuel based on the experiences of a consignment store in CA
• Entrepreneur.com article on starting a second hand clothing store
• U.S. Small Business Administraton resources for starting and running a small business