THRIFT STORE BUSINESS PLAN GUIDE
Starting a thrift store business is essentially the same as starting any other business. However, the difference here is that you will be selling used merchandise at discounted prices. This niche of business has grown to be continually popular because shoppers are increasingly interested in what thrift stores have to offer.
It is a fact that thrift stores have presented shoppers with very good deals. Therefore starting a thrift store business can be exciting as it gets because you will never lack quality and affordable items which will always interest your buyers.
Another reason thrift store shopping has become very attractive is that it has a vast collection of items that range from clothing, furniture, glassware, tools, and several other collectibles.
However, we are interested in showing you how you can start a thrift store business. If you had an interest in this area of business, then this article will show you how you can make your dreams come true.
- Selecting a Niche
A thrift store business as earlier stated is a wide area that needs you to choose your particular niche which should be an area you are most interested in.
However, you can decide to start a general thrift store which involves selling a variety of products. Part of the reasons for choosing a niche or type of thrift store to operate is due to available competition. Before starting a thrift store business, you should scan your competition for goods on offer.
There are general-item thrift stores as well as those selling particular types of products such as used clothing, furniture, or baby items.
The results of your search would determine if you would prefer a general thrift store or choose a particular niche to sell. The choice is all yours to make. The decisions you make can determine how successful your thrift store turns out.
- Obtaining Registration and Licensing
Starting a thrift store business will require registration and licensing. For your business to be registered, you need to have applied for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This is especially relevant to businesses with employees.
This is also a requirement for payment of state taxes. Business licensing on the other hand largely depends on where you want to locate your thrift store as there are no uniform requirements for licensing. This is an important requirement for starting a thrift store business.
- Choosing an Outlet or Space
Depending on how well you are prepared, selecting a space is of utmost importance. There are faith-based thrift stores which are mostly located on church property. Most of the time, these are not ideal locations for attracting high patronage.
However, one of the advantages this type of outlet offers is that you are likely not to pay for rent. You must choose a space just about the size of what you intend to offer. This should be able to convey the right message to your clients.
That is, how you stock your thrift store with inventories will either portray a crowded store or a scanty store with little to offer. You should be able to strike a balance between these two options.
- Choosing the Type of Thrift Store to Operate
There are two types of thrift stores. These are the for-profit thrift stores as well as the non-profit thrift stores.
Each presents its opportunities as well as downsides. To make the right decisions that will align with your desires, you may want to seek the services of legal experts for interpretation of these models of business.
Although for-profit thrift stores allow for more control over how you manage and set profit margins, it is lacking in state-issued incentives such as obtaining tax-exempt status, as well as the availability of fewer low-interest loans and grants.
The non-profit thrift store model attracts government regulations which lead to having lesser control over how your business is run.
However, there are advantages to running this type of business as you are offered a chance to apply for low-cost rent or obtain the same for free. Other aspects of your business are also significantly subsidized. This includes adverts and marketing. However, you may not make as much as a for-profit thrift store.
- Hiring Your Workforce
This is a basic requirement you must consider. Although this may be a bit different for non-profit thrift stores as such can attract the services of volunteers, you must have people on the ground to help make running your business much easier. Sometimes the hiring process can be challenging especially when you handle such yourself.
To make the process a lot easier, take the burden off your shoulders by letting a professional hiring agency do the job for you. All you need to provide are your criteria for selection.
This step should not be overlooked for anything. Developing good marketing strategies as well as proper implementation create increased awareness about your business as well as what you offer. This significantly increases sales.
You must give this strategy all the attention it deserves as it can reward your efforts significantly. There are several marketing channels you can use to your advantage. These include the mainstream media as well as the new media which includes social media.
These are basic requirements for starting a thrift store which can be of immense benefit to you if properly implemented.
As simple as it may seem on the surface, starting a thrift store requires proper planning and diligence in its management to yield the much-desired results you wish to obtain.
THRIFT STORE BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a profit and non-profit thrift store business.
Starting a thrift store business is considered quite easy. This is because not much money is not needed to start one.
Goods that get sold in a thrift store are usually gotten from people that are clearing up their homes and want to dispose of things that occupy space unnecessarily.
This article contains a thrift store business plan sample. This will come in very handy for anyone that is looking to start a thrift store business.
GUIDE: Choosing A Thrift Store Name
Business Name: Loveday thrift store [ Resale Shop Business Plan ]
- Executive Summary
- Our Products and Services
- Vision Statement
- Mission Statement
- Business Structure
- Market Analysis
- Sales and Marketing Strategy
- Financial Plan
- Competitive Advantage
Loveday thrift store Inc is a thrift store business that is located in Las Vegas. It is owned by the McDonald family and will be managed by Donald McDonald because of his wealth of experience in running this type of business. To get started, we have acquired a facility in a choice part of town. The newly acquired facility is large enough to fit into the idea of the type of thrift store business that we want to run.
Loveday thrift store business will make retail items such as clothing, books, furniture, kitchen equipment, etc. available to those that require them.
At the loveday thrift store, we are looking to run a business that will give our customers the best treatment possible. We have already devised a means of starting and maintaining a personal relationship with every potential customer that will patronize our store.
Our Products and Services
Loveday thrift store business is in the thrift store business to ensure that goods that are no longer needed in homes in the United States and beyond are made available to those that need them. In as much as no amount is needed to start this business, we are looking to make as much profit as possible from this business.
Some of the second-hand products that will be available to our potential customers include:
- Fairly used books
- Fairly used kitchen equipment
- Fairly used office equipment
- Fairly used sports equipment.
Our vision at loveday is to be one of the most prestigious thrift store brands in the United States and beyond.
However, before becoming a force to be reckoned within the United States, we intend to win our immediate environment.
Our mission at the Loveday thrift store is to set up a thrift store business that will make top quality fairly used goods available to individuals that are residents of Las Vegas. We also intend to move from just Las Vegas to other parts of the United States.
Loveday thrifts store business is not going to end up like most thrift stores that are popular in Las Vagas. We at Loveday thrift store intend to build a business empire from a thrift store business. Although we are still a startup and cannot be reasonably compared to the many established thrift stores in Las Vegas and other parts of the United States, we are putting up the needed arrangements that will get us to the apex in this business rapidly.
To achieve our aim of becoming one of the top and most recognized brands in the thrift store business, we are going to hire honest and qualified individuals. We will ensure that the promotion and recognition of our employees are strictly on merit.
Although not everyone will be comfortable with buying used items, some don’t mind. One thing that keeps this industry running is the fact that a lot of people are looking for ways to save some money. The two major ways through which this is done is by selling used products and by buying used and cheap products.
More often than not, those that fall into the category of buying used goods are low-income individuals while high-income earners do the selling.
It is a fact that one of the industries with the widest range of customers is the thrift store industry. We are certain that we can’t reach absolutely everyone. As a result of this, we have decided to settle for the following group of people
- Pregnant women
- Business executives
Sales and Marketing strategy
We are conscious of the fact that we have a lot of work to do if we must break into the market quickly. Due to this, we have come up with some strategies to make our potential customers aware of our presence. Some of them include;
- Good customer service
- Cheaper rates
- The sale of a wide range of products.
Source of Startup Capital
Although not much is need to start this business, we do not have all the capital that we require. This is because we intend to hire a facility in the heart of town that comes with a very large parking lot.
As a result of this, we will get a loan of $10,000 from the bank. With this, we can get the sum of $15,000 which is needed for this business.
The fact that starting a thrift store business does not require much capital increases the competition level in this industry.
Our way of beating our competition is by having a wide range of products and having a parking lot that can accommodate a lot of cars all at once.
This is a business plan sample for a thrift store. It is owned by the McDonald family and will be located in Las Vegas.