CONSIGNMENT SHOP BUSINESS PLAN SAMPLE
Are you looking for a cheap and easy business to start?
When you want to start a new and exciting business, you may want to think about starting a consignment shop. There is a lot that you can do with this type of business and still have a lot of fun doing it at the same time.
A consignment shop is a store where people bring things that they want to sell.
Oftentimes this is clothing, but it can be any number of items. You then sell the items for the person and take a percentage of the profit, giving them the rest.
Consignment shops are great not only for the owner but for the customers as well. People who can’t afford to shop retail can find nice items in consignment at a lower price.
Consignment shops have started popping up in nearly every town across the United States and the world at large.
Whether they are selling clothes or furniture, sporting goods, or household appliances, consignment offers a great way for people to buy and sell used goods, whether it is online or in a brick-and-mortar store.
I have here 5 steps to take for you to be able to start a consignment shop in your community or city and here they are.
- Research your Competitors
It takes a lot of research and groundwork to kick-start any kind of business and starting a consignment shop is no different.
Before you begin this business, you have to research your competitors. Jot down what you believe are their strengths and weaknesses. You should fine-tune your business plan and your advertising to play up your uniqueness. Decide what area of town your consignment shop would do best in.
- A Business Plan for your Consignment Shop
For a business to be successful, the one thing it needs initially above anything else is a solid consignment shop business plan. Even if you are not planning on getting a loan, you still need a business plan to help you plan things out and know the direction you want to move in. Without a business plan, the success of your consignment shop is uncertain.
Even a ten-page business plan will double your chances of success. Your business plan should spell out what your market is like, what kind of competition you have, and what niche you will fill. It should specify your business structure, how many employees you’ll need, and what your startup costs will be, as well as what your monthly overhead costs will be and how many months it will take for you to break even.
You also need to write a basic marketing plan and write a detailed resume for yourself and why you have what it takes to run a great consignment shop. There are plenty of resources online for how to write a business plan, but that gives you the thumbnail sketch.
- Selecting a Location
The location is a primary consideration and one of huge significance. Several aspects need to be considered.
Obviously, the first consideration is rent. Most prime locations charge a steep rent. But if you can afford it, you should not compromise on a location that has all the elements necessary to start a consignment shop.
Some of these are ample parking space, high traffic from pedestrians and vehicles, and proximity to similar or complementary businesses.
Have it in the back of your mind to get a good location that fits your budget so you don’t end up in a tight situation.
This will be easier than you think. Almost any consignment store owner will tell you that getting inventory is not a problem. Place a few ads or let friends know you’re taking inventory, and your store will fill up faster than you can believe.
The real problem is picking stuff that will actually sell. That’s a fine art, and most of your long-term success as a consignment store owner will hinge on it. Just keep practicing.
If you are taking things in on consignment, remember to only accept items that really grab your attention. You have no obligation to take things off of people’s hands that are too used or don’t fit with your style. The pickier you are, the more unique your store will become.
- Advertising your Consignment Shop
If you decide to start up a consignment shop, your biggest expense is going to be advertising. Be patient and continue to spread the word. Be fair with your prices and people will come in and give you repeat business.
As you make a profit, grow your business with it. Eventually, you could move your home-based business to something even larger!
You can advertise in the local newspapers. This is a great way to let others know who you are and what you want to do. Another good idea is to send out flyers to the local neighbors in your area to let them know that you are new and that you are in business.
CONSIGNMENT SHOP BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a consignment store.
A consignment store business is a business that can be started with very little capital. This is simply because it involves the sale of fairly used items that do not really cost a lot. The goods that you intend to sell in your consignment store can be sourced from individuals that do not need them and sold to those that need them at very affordable prices.
The ease with which a kids consignment store can be set up makes it a perfect business for individuals that do not really have a lot in terms of capital.
Apart from doing your feasibility study and raising the capital for starting a consignment store business, you will also need to come up with a business plan. Well, this article contains a consignment store business plan sample. This will help you write the perfect business plan for your consignment store business.
Business Name: Mr. Woods Consignment Store
- Executive Summary
- Our Products and Services
- Vision Statement
- Mission Statement
- Business Structure
- Market Analysis
- Sales and Marketing Strategy
- Financial Plan
- Competitive Advantage
Mr. Woods is a consignment store that will be located in Detroit, Michigan. Mr. Woods consignment store was established by Jesse John, a renowned furniture maker with over 30 years of experience. This business will be set up at $50,000 and will make very cheap but quality furniture available to the residents of Detroit, Michigan.
To get things started, we have already gotten an ideal facility where our consignment store will be located. This facility is in a very busy environment and also very easy to access. We are not just in this industry to make money, we are also very interested in becoming one of the biggest consignment stores in Detroit, Michigan, the entire United States, and major cities in neighboring Canada.
Our Products and Services
The level of competition in the consignment industry is quite high. The reason for this is the very little amount that is needed to start this business, the very little requirement for technical skill, and the huge gains that can be made in this industry.
To survive in this highly competitive industry, we have decided to create our own niche. We will not just sell products to members of the public, we will stick to the sale of furniture only.
Some of the goods that we will be selling are
- Fairly used office furniture
- Fairly used kitchen cabinets
At Mr. Woods consignment store, our vision is to establish a top-notch consignment store in Detroit, Michigan. We aim to use this means to meet the basic furniture needs of the people of Detroit, Michigan.
At Mr. Woods consignment store, our mission is straightforward. Our mission of establishing a consignment store is to make all manners of quality furniture available to the residents of Detroit, Michigan at very cheap prices. We are also looking to become a force to reckon with in this industry.
Several things keep us driven at Mr. Woods’s consignment store. However, a few of them are; to help people get the best of furniture at giveaway prices and to dominate the consignment store industry in the United States.
We are a new consignment store and we know that we will have to be intentional if we want to make it to the top.
To ensure that we become a force to be reckoned with in a very short while of operation, we will hire only hardworking and experienced individuals to work with us.
We will also ensure that our workers put in their best by giving them the best treatment possible.
The consignment industry has been running for quite a while. Since it was established, all it has done is flourish even when other industries haven’t. This is so because of the very high demand for cheap and quality fairly used goods.
The truth remains that the demand for consignment goods skyrockets when the economy is bad.
Now, look at it from this perspective; when the economy is bad, lots of individuals can’t afford to get quality new goods. This, therefore, makes most people focus their attention on fairly used goods.
Sales and Marketing Strategy
There is a high level of competition in this industry, as a result of this, we have come up with strategies to help us make more sales than our competitors. Some of them are;
- We will ensure that we have a strong internet presence
- We will ensure that our handbills are made available at public places so that people can get aware of our existence
- There are lots of consignment stores scattered across the United States. This implies that there is a high level of competition in this industry. We have carried out our research and have decided to deal in furniture only. Those we are looking to offer our services to are;
- Family People
Source of Startup Capital
Not much is need to start up this business. Despite this, we do not have all the money that we require to startup. We have 50% of the amount we need. This amounts to $25,000, the remaining amount will be sourced from the bank.
Mr. Woods consignment store is a consignment store that focuses on furniture only. Now, the fact that this consignment store is owned by a furniture maker automatically puts us ahead of other consignment stores in our niche. We have decided to capitalize very strongly on this factor.
This is a business plan sample for a consignment store business. This business is owned by Jesse John and will be located in Detroit, Michigan.