Thrift stores you can find today are so different from those in the past. They are now places where people look for trendy items and build their style to be unique and different from all the mass-producing retailers we now have easy access to. That’s why running a thrift store can be quite a lucrative business if you act smart. From picking the location, choosing the goods, and approaching your customers – all of these steps can take you to success. This guide will tell you more about how to start a thrift store and maybe make it a beginning of an exciting new chapter as a business owner.
About thrift business
Let’s go through some basics first. Thrift stores can offer a variety of items such as clothes, home goods, jewelry, and furniture. Most of them have been pre-loved, so the price is reduced. However, thrift stores are not exclusively second-hand shops. Very often, they collect items from sales of other businesses and this way offer brand new pieces. Low pricing is something that attracts many shoppers, as browsing a thrift store can really pay off.
Also, not only do these stores offer affordable items, but they offer one more thing as well – an exciting and unpredictable shopping experience. The beauty of shopping at these stores is that you never know what you’ll find. You can’t see the upcoming trends in a catalog or on official media and websites. Thrift stores offer a unique shopping experience as they always get new items, so shoppers don’t know what to expect.
Why run a thrift store?
The truth is that thrifting is becoming more and more popular these days. Millennials and gen Z people show us the growing trend of shopping at thrift businesses. The reason is that most of them are trying to be unique in the age of mass-producing large chain retailers and everyone dressing the same. Thrifting seems to be a way to stand out and create a style that’s not easy to copy. Furthermore, with the increasing prices of everything around us, shopping for affordable clothes is becoming as attractive as ever. That’s why such an investment can be very profitable. However, start the business the right way – and here are some tips for doing it.
Check out the best thrift stores in Chicago for ideas how to run a thrift store.
Tips for starting a thrift store
You should know some things about starting and running a thrifting business. They are particularly important if you don’t have a lot of experience as a business owner. Also, if you’ve never worked with a moving company before, it’s a good idea to investigate them a bit as well. You will probably need their assistance setting everything up at some point.
Create a solid plan
Every business idea should turn into a solid business plan. It helps you decide on your goal and make sure you stay focused on reaching it. To start a thrift store, create a business plan that will define the type of store as well as your target customers. It’s helpful to visit a couple of shops to get an idea of what your thrift store will look like. Your business plan should determine the type of items you’re going to sell. You can either sell various things or have a favorite category to focus on – vintage clothes, antique furniture, seasonal clothes, home décor, toys, maternity clothes, etc. Also, there are a couple of more things to include in your business plan:
- The budget – decide on a budget and financing of your new business. Research the local market, but starting a thrift will generally cost about $20,000 to $30,000. Choose the funding of your business – a business loan, bank loan, business credit card, or some other way to start.
- The name – how you name your business can set the tone and attract certain types of customers. Think about it carefully before you make it official. Make sure the name is easy to say and remember and sends the right message to the people you want to attract. Also, don’t forget to trademark the name to avoid any legal issues in the future.
- The competition – research your competition to figure out the way to make your store unique and more popular among customers. Having competition can be a positive challenge to stay strong in the market, so take a look at the local thrift stores before you start.
Choose the location
Like with most other businesses, the location matters. It needs to be a place with a lot of traffic, where your display windows can be clearly visible to passers-by. Also, consider your competition once again here. Even though it’s often considered you should be away from your competitor, it is not necessarily true with thrift shops. Thrift shoppers like to visit multiple stores on one shopping trip, so choosing a place close to your competition can be beneficial.
Make sure the process of moving into the rental is smooth and stress-free. Especially if your goods include fragile pieces and vintage home décor or furniture items. Excalibur Moving and Storage suggest business owners invest some effort into finding the right professional for the job. Choose experienced movers with the tools and skills to bring all the items to your store with minimum risk of damage.
Get necessary licenses and permits
Take care of the legal responsibilities as soon as possible and register your business. Make sure you get the business license you need to start a thrift store and all the necessary permits, open a bank account, and finally – get the insurance. It’s better to be safe than sorry, so insurance should be one of the top priorities.
Get the goods
Now it’s time to get all the goods you’ll sell at your thrift store. This is where you need to get very creative and resourceful. Depending on the type of items you’re going to sell, you need to go to different places to get your merchandise. Typically, you can find inventory for your thrift store at yard sales, moving sales, estate sales, wholesale suppliers, online markets, donations, and clearance sales of big retail stores. You must be open-minded about getting all the stuff when running a thrift store. Also, never stop looking for an excellent opportunity to grab a good deal.
Remember: sometimes you’ll get a great deal for specific inventory but have no space at your store to keep it. That’s why getting a storage facility can be very useful for your business. Use it to keep all the extra inventory or seasonal items that are not attractive at the moment. However, don’t forget that security is a crucial factor here. Make sure you rent a storage unit only from a professional, trusted storage company.
Promotion and attracting the customers
Even in the best, high-traffic location, your business would need some marketing to attract customers. There are several ways people can find out about your store. You can hand out fliers, display attractive signs nearby, spread the word among the people you know, and create an event on an opening day. Also, don’t forget the power of social media and online marketing in general. Social media networks are a simple way to reach out to people. You can also get creative and promote your items with unique pictures and videos you’ll post on the profile. Just be sure to stay consistent until people fall in love with your business.
Final words
As you can see, if you want to start a thrift store, it will take a lot of time and effort. However, this is an endeavor that can really pay off. You can create the business of your dreams with a proper business plan, solid financing method, and creativity! Good luck!