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There is money to be made in a second hand shop. Starting a second hand shop is not difficult; it just has its own unique set of challenges. The nomenclature for second hand shops is all over the place; sometimes effected by geographical location and sometimes just because of the way the industry developed. Many charitable organizations, use second hand stores, thrift shops, gently used stores, etc., to generate revenue. Hence second hand stores are also known by the names of the two largest in the industry, whether the store actually belongs to them or not; pick a good name.
While this is a low start up business, so is your profit. Start collecting stock right away. Find as much as you can for free and load up your garage completely. It's amazing how much stock it takes to even fill a small shop. Oftentimes display cases, clothing racks, and shelving can be found at larger second hand stores and at businesses selling used retail display items. Once in a while you can find them online with free shipping.
The next challenge is unique to second hand shops. People dump off at your front/back/side door. You as a business owner will have to handle this problem. Think first of positive ways to avoid the problem without immediately going the security camera route or anything with big warning signs that will turn your customers sour. This is what can be done to solve the problem. Only buy from your customers, don't accept donations after opening. This way they will want to see you to receive payment for their second hand stuff and they will probably bring you more. Pay them in trade for other things your business markets that they may need. This will require some thought so that a profit can still be made. For instance, when used paperback book stores were in business everywhere, their formula for buying stock went something like this: pay the customer ten percent of the estimated new value. Sell the item for about thirty to fifty percent of the price of a new one; depending on the item. Apply this to a paperback book now. Say it originally sold for $6.99; pay the customer 70 cents for the item, and sell it for $2.75. Notice these are just rough calculations. Don't be anxious about turning stuff away, it educates the people who bring things in, and stocks the store with the needed items. Who wants 50 white tee shirts and no other selection? Keep books reflecting the trades you make with these folks.
Turning a lot of goods over and a good central location is the secret to success in a second hand shop. Lower the overhead. Brainstorm and constantly be on the watch for ways to lower the overhead and improve the shop.
Get a business license, sole proprietorship, insurance, rent a building, and put all the stuff from your garage inside. Announce that you are; buy, sell, trade, and state the conditions and start doing business.
Starting a second hand shop is an easy, low cost, start up business that will certain be received well in this economic climate.
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