Starting a Consignment Shop: Sample Business Plan Template
1. Get a Strategic Shop
In starting a consignment shop, it is very important to be strategic with the location and type of shop you get. It is vital to know that consignment shops may likely not thrive in highbrow areas of the society, but rather in the lower class suburbs of the city. So it is needful that you ensure you locate your consignment shop where the lower class of the society lives. This is because besides getting loads of people that might patronize you in this area, you would also get shops at a very cheaper rate compared to what you might get in high class area.
2. Search for People who have Items for sale
Much more than renting a shop for the purpose of starting a consignment shop, you would need items to stock up the shop with. One of the ways of getting items for your shop is to first start with your family and friends. You could request for the items they no longer use and would want to sell. What’s more, you could go around the neighborhood of the elites and talk with them. You would be surprised that such elites have loads of items to offload which you could even get for free.
3. Ensure to Examine and Review the Goods
If you are getting the items to be sold from people who intend making money off them, it’s important that you properly examine and review the goods so that you can properly cost them and agree on the percentage to pay the owners of the goods after selling them. If you do this, you might avoid having loads of goods occupying space for a longer period of time in your shop.
4. Create a Flexible Policy
It’s important you create a policy that can be flexible enough to accommodate different people with different choices. For example, you could make it a policy to only allow goods that people bring to your shop to stay within a period of days, this could be for about a month or so, and after the time has elapsed, you can then reduce the price or tell the suppliers that they have the options of taking back their goods if there are no sales within a certain period or better still donate it to any Charity of their choice. You can also set policies that allow people pay a fee before you help them sell their goods so that you make your commission at the end of sales. Whichever way it goes, make sure it is flexible and it’s a win – win for all.
5. Open a Website
If indeed you want your consignment shop to have a greater reach beyond the locality where the physical shop is located, you might be required to open a website cum online shop. If you open an online shop, you would be able to list goods that are available for sale, and you can even advertise your promos or discount sales on your website. With this people from far and wide can patronize you. You can even include free shipping for high end goods and for those buying in large quantities from your online shop.
6. Operate a Mobile Shop
Mobile shop is one of the easiest ways anyone can enter the business world. In the case of running your consignment shop as a mobile shop, what you would need to do is to load the booth of your car with as much goods as your car can carry especially clothes and shoes. Have your car parked in the centre of a business street in a suburb, with little music blaring from your car. You would be surprised at the rate which people would come check out what you have for sale. You can also rent a mobile truck and use it for this purpose.
7. Ensure to Keep Your Books (Accounts) Properly
Book keeping and accounting is one skill that can help you grow your consignment business. Since you will be getting your consignment from various people at different prices and you would be required to sell at different prices as well, it would be wise to have a proper record. Keeping your book properly will make you know how profitable your business is and what you might need to save.
In addition to these tips, if you have decided to try this line of business to see how it goes, it is advisable to start with selling used wedding gowns. This is because there are loads of people who might be willing to rent or buy second hand wedding gowns since they can only be used for a day. Make these tips yours and you too could start your consignment shop without stress.
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