Resale shops operate on the idea that one person's trash is another person's treasure theory. They rescue discarded goods from the grasp of the refuse bin or from yard sales and polish them up for resale. When considering opening a resale store, consider your knowledge of antiques and buying trends along with your business prowess.
Business Beginnings
When opening a resale store, follow some business basics. Develop a business plan and set a plan of action in place to help guide you while confronting the various aspects of starting and running a business. Seek out the appropriate business licenses necessary in your chosen locale. These can include a business permit and a resale license, which allows you to purchase wholesale goods for resale. Some states refer to a resale license as a sales tax license. Consider whether you will handle the accounting or whether you will seek out the help of a qualified accountant. Contact the Internal Revenue Service for an employer identification number (EIN) that will help you when filing taxes and reporting income.
Research Basics
Visit other resale shops in your area and see what kind of merchandise they stock. Take note of pricing and ask the owners questions about how they acquire the goods or if they can offer you any tips. Take stock of goods that seem to sell well in your area, such as used furniture or decorative accents. If you plan on operating a niche resale store, such as furniture, research various aspects of that specific industry. In this example, you would want to acquire as much knowledge about the different types of wood used in furniture design, popular manufacturers and identifying marks that may lead to information on the age of the piece.
Merchandise Matters
Consider how you plan to obtain the goods you will offer at your resale store. Start by acquiring goods from family and friends. Clean out your own basement. Visit garage sales, yard sales and flea markets for good deals on merchandise you can turn a profit on. Once you obtain goods for resale, identify a fair value market price and clearly label the item with the price. You can determine an items market value by conducting a little Internet research at various websites which offer items for sale to visitors. Operating on consignment is another option available for resale shops. Consignment shops offer to sell items for clients and then split the profit when the item sells.
Additional Considerations
Find a location with foot or car traffic. Use signs to clearly identify your store and clearly display hours of operation and any other pertinent information, such as grand opening sales specials. Set up a system to take payments. You may choose to operate as cash only or offer the convenience of credit card and debit card payments. In this case, a merchant account representative from a local bank or credit union can help you set up a point-of-sale system. People need to know your resale store exists. Take out ads in local papers and pass out fliers at local flea markets, garage sales and yard sales.
Tags: resale store, yard sales, flea markets, garage sales, garage sales yard