How to Open Your Thrift Store Business
Opening a thrift store affords people in your community the opportunity to purchase inexpensive, secondhand merchandise and a place to donate items they no longer need. Before you can open your doors and begin servicing your community, though, you will need to take several preliminary steps to prepare your thrift store for business.
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Instructions
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Acquire the required licenses to operate a business. Before you can secure a location and begin operating your thrift store, you'll need the appropriate licenses/permits (for example, reseller's license or sales tax permit). Register your business name at the local courthouse, and apply for a business license and other required licenses. Pay the appropriate fee to acquire these licenses.
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Contact the Internal Revenue Service. Visit the IRS website (IRS.gov) to find the form(s) and apply for a federal tax ID number for your business.
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Devise a business plan. This business plan describes your objective and details how you intend to run the business, as well as how you plan to use business funds. Due to the complicated nature of business plans, consider contracting a professional business plan writer.
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Select a financing option. Running a thrift store will require cash for rental deposits, buying merchandise and advertising. Decide how much you can spend, and then create a budget. Use money from personal savings, borrow cash from your home's equity or take out a personal business loan.
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Apply for nonprofit status. As a non-profit thrift store you can apply for tax-exempt status and provide customers with a receipt to write off the donation on their yearly taxes. Becoming a nonprofit organization is optional. Nonprofit stores support a charitable cause and they donate proceeds to a charity or organization.
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Start a "for-profit" thrift store. Not all thrift stores support a charity, organization or church. You can run the store like a retailer and make money from the business as a for-profit operation (like a consignment, secondhand or antique store). You wouldn't apply for tax-exempt status; you're required to pay yearly income taxes. For-profit thrift stores can accept donations, but donors cannot write off the donation.
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Pick a location. Positioning your thrift store business in a heavy-traffic shopping center can be helpful. You'll be able to take advantage of constant foot traffic from shoppers visiting other retail stores.
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Stock your store with merchandise. Donate your own unused merchandise to help stock the store, visit other thrift shops, go to flea markets or yard sales, or check print and online classifieds for free merchandise.
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Advertise your opening. Print an announcement in the local newspaper, have a grand opening sale and pass out flyers in local neighborhoods. Create a promotion to encourage visitors. For example, if customers bring an item to donate, they can acquire an item of equal value free.
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