Do you plan to open a thrift store? Opening this type of shop can let you place your ability to resell stuff to show at a more considerable volume. In case you know the ways of pricing merchandise and are adequately resourceful, it may be the right time to consider starting out as a thrift shop owner. Follow these steps to streamline the initial process.
Develop a business plan
After you have some ideas in mind, you should create a business plan. In case you do not know, a bank will ask you to make a business plan. Also, according to research, this kind of plan assists in boosting the success of opening a business.
Create a business entity
As you know, a business entity means the way a company is legislatively set up to run. You can select from 4 main corporate structures, which are LLC (aka Limited Liability Company), corporation, partnership, as well as a sole proprietorship. Different kinds of entities come with their own upsides and downsides in terms of administrative obligations, costs, liability exposure, and so on.
Select a business name when you open a thrift store
Selecting a suitable business name may be hard. We advise you to ensure that the name is able to resonate with your shoppers. Moreover, it needs to be accessible to use.
Choose a location
A thrift shop can enjoy the perks of being in a good area with high traffic, but it can be hard to afford in a few places. So remember to check with care and do some research. Retail shops often see more desirable traffic when being near main roads as well as shopping centers.
Register for corporate permits & licenses
Resale store owners should know some guidelines under the CPSA which means Consumer Product Safety Improvement Act. It requires shops to obey regulations when they sell certain goods.
Look for financing when opening a thrift store
You should look for the funding. To get a loan, you will have to have decent credit. Also, it is necessary for you to make a personal investment of 15 to 25 percent towards the entire costs of the start-up.
Make a marketing plan
To open a thrift store successfully, you should promote it to get the first customers. For example, you can create a website. Also, utilize Facebook and other social media channels. You can also promote your store on the radio. The marketing cost will have to do with the marketing approach you take. Thrift shop owners who are able to carry out some or every one of their marketing strategies will be able to run a thriving business later.
You should recruit some staff. Indeed, statistics show that the average rates per hour for the thrift shop staff are as follows:
- Supervisor: over 13 USD
- Sorter: over 9 USD
- Sales/ Cashier: over 10 USD
In conclusion, we hope our guide is helpful when you open a thrift store. Reach us for more help.