furniture resale business plan

Consignment Store Business Plan Template

Written by Dave Lavinsky

Consignment Store Business Plan

You’ve come to the right place to create your Consignment Store business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Consignment Store businesses.

Below is a template to help you create each section of your Consignment Store business plan.

Executive Summary

Business overview.

Casual Consignment is a startup consignment company located in Houston, Texas. The company is founded by Terri Cooper who has experience in both retail clothing sales and consignment sales Now, with the expertise of knowledge and business acumen, Terri has determined she can confidently start and effectively grow a successful consignment company. Terri believes her experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of consignment and retail sales practices will provide everything needed for long-term growth and profitability.

Casual Consignment will provide a comprehensive array of women’s clothing for a wide variety of clients. Casual Consignment will be the popular clothing store for all ages, providing services and products to each client while supporting the strategic goals of the company. Casual Consignment will be the ultimate choice in Houston for clients to ensure that every need of the customer is fully and completely met.

Product Offering

The following are the products and services that Casual Consignment will provide:

• Curated clothing for resale of excellent quality.
• Clothing that has been cleaned and ensured to be of high quality
• A diverse range of clothing, including outerwear, sportswear, women’s casual, young teen, and children’s garments
• Fair and transparent pricing, with original tags secured, if possible and markdowns clearly identified
• Customer values in handbags, jewelry and accessories
• Day to day excellent customer service
• Private rooms to try on clothing, if desired

Customer Focus

Casual Consignment will target the adult women of all ages, teens, and children within the greater Houston region. The consignment store will also target retailers who are seeking to refresh inventories or add to offerings in their establishments.

Management Team

Casual Consignment is owned and operated by Terri Cooper. She recruited a former administrative assistant, Cary Brown, to be her store manager and help oversee the store and take on operational duties. She also recruited Manny Jaurez to be the general maintenance man and assistant in stocking and inventory.

Terri Cooper graduated from Houston Lyons High School in 2007 and began to pursue her concept to open a consignment store. She studied consignment sales at Pine Valley Community College while obtaining her associate of arts degree in business. She also worked for ten years within the consignment retail industry, where she became very well known and respected for finding the most appropriate and suitable clothing for a wide variety of women who needed business clothing or clothing for special occasions. Customers often wait to be assisted by Terri for this reason.

Cary Brown worked alongside Terri Cooper for five years after graduating from Houston Lyons High School. She held the role of retail assistant in an administrative position and also helped customers with questions and suggestions for wardrobe items. She will hold the role of store manager in the new store.

Manny Juarez, the former general maintenance man at the consignment store, will now be the manager and assistant in stocking of consignment items and inventory.

Success Factors

Casual Consignment will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Casual Consignment
• Comprehensive and curated selection of clothing for all occasions, including formal and special occasions. Accessories, handbags and jewelry are also included.
• Women’s clothing, young adult fashions, teen clothing, and children’s clothing are all included in inventory.
• Inventory changes regularly on a one-month rotation to refresh customer choices and clothing availability.
• Rigorous cleaning and clothing preparation takes place prior to inventory placement
• Casual Consignment offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Casual Consignment is seeking $200,000 in debt financing to launch its Casual Consignment store. The funding will be dedicated toward securing the store space and purchasing store equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Store space build-out: $20,000
• Store equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Casual Consignment.

Company Overview

Who is casual consignment.

Casual Consignment is a newly established, full-service clothing consignment store in Houston, Texas. Casual Consignment will be the most stylish, on-trend and affordable choice for customers in Houston and the surrounding communities. Casual Consignment will provide a comprehensive selection of clothing for any customer to view and select for purchase. Their full-service approach includes a comprehensive array of curated clothing styles in excellent condition, reasonable pricing and convenient rooms for trying on clothing.

  Casual Consignment will be the favorite “go to” clothing store for all customers and will offer the best curated selection of clothing under the guidance of Terri Coopear. The team of professionals are highly qualified and experienced in Casual Consignment and are well-trained in assisting customers in every aspect of the buying process. Casual Consignment removes all headaches and issues of clothing shopping and ensures all expectations are well met while delivering the best customer service.

Casual Consignment History

Casual Consignment is owned and operated by Terri Cooper. Ms.Cooper graduated from Houston Lyons High School in 2007 and began to pursue her concept to open a consignment store. She studied consignment sales at Pine Valley Community College while obtaining her associate of arts degree in business. She also worked for ten years within the consignment retail industry, where she became very well known and respected for finding the most appropriate and suitable clothing for a wide variety of women who needed business clothing or clothing for special occasions. Customers often wait to be assisted by Terri for this reason.

Since incorporation, Casual Consignment has achieved the following milestones:

• Registered Casual Consignment, LLC to transact business in the state of Texas.
• Has a contract in place for a 10,000 square foot office at one of the largest retail buildings
• Reached out to numerous contacts to include Casual Consignment while shopping.
• Began recruiting a staff of three and three office personnel to work at Casual Consignment

Desert Sun Consignment Storeing Company Services

The following will be the services Casual Consignment will provide:

Industry Analysis

The clothing consignment industry is expected to grow over the next five years to over $70 billion. The growth will be driven by the desire by consumers to conserve clothing and wear clothing that has been sustained as a practice of reasonable use of the world’s environment. The shift in moving toward resale clothing items over new items will continue to grow as technology enables the advancement of cleaning, repairing and redesigning used clothing to produce wearable clothing that has been refashioned. In addition, software technology will move many of the routine processes to digital systems, relieving staff of the more time-consuming tasks in the retail store.

Costs will likely be reduced as technology becomes known and is used more and more freely. Costs will also be reduced by the recycling of clothing and accessories, to produce an overall savings or the purchase of new items. Costs will be reduced as more clothing stores adopt the recycle and reuse policies and fewer garments are thrown into landfills.

Customer Analysis

Demographic profile of target market.

Casual Consignment will target adult women in Houston, Texas of all ages, as well as teens, and children within the greater region. The consignment store will also target retailers who are seeking to refresh inventories or add to offerings in their establishments.

Customer Segmentation

Casual Consignment will primarily target the following customer profiles:

• Adult women of all ages
• Young adult women and teens
• Children of all age groups
• Clothing retailers looking to refresh or build inventory

Competitive Analysis

Direct and indirect competitors.

Casual Consignment will face competition from other companies with similar business profiles. A description of each competitor company is below.

Clothing On Trend

Established by Manny Buonao in 2001, Clothing On Trend is a clothing store focused on selling to young adult, teen, and pre-teen categories. The clothing sold is imported from Brazil and the pricing is comparable to consignment store pricing. While attractive and casually fun to wear, Clothing On Trend items are made of materials that are not long-lasting and many items much be dry cleaned with each use.

Manny Buonao worked in a retail clothing shop for twenty years and determined after that time to increase his inventory and build a company focused on the young women demographic. This has been profitable; however, the quality of the clothing remains and issue, as many items are returned for full value.

Everyday Consignment Shop

Everyday Consignment Shop was established in 1998 by Nancy and Tommy Gordon. The store inventory is made up of household items, decor, small furnishings, kitchen assortments, and reconditioned collectibles. Nancy and Tommy Gordon owned a retail store in Houston for over ten years before starting Everyday Consignment, where the inventory was directed to men’s clothing and children’s clothing, along with camping gear and outdoor sporting equipment.

After closing the Everyday Consignment shop, the Gordons opened the Everyday Consignment Shop, offering general household items and special holiday-themed retail items during major holidays. Some items are new and sold as overstocks; however, the bulk of the inventory are items that were preowned and lightly used. All inventory is sorted and inspected for usability and any breakage or signs of wear and tear before being placed into inventory.

24 Hour Stop n’ Shop

Although the 24 Hour Stop n’ Shop is primarily attached to a gas station in West Houston, the convenience store has expanded to include a wide variety of consignment items for sale and has proven to be very popular with customers who arrive to purchase gas and stay to peruse the racks of consignment items. Included in the store are household items, decor items, children’s toys, gardening and outdoor items, and kitchen utensils and linens. Some items are sold new as overstocks, while 95% of the items offered are lightly used. Mary and Harry Ragan own the 24 Hour Stop n’ Shop and have used the store as a means to offload many of their family collectibles and items no longer needed from their former ranch. The Ragans have build a sizable customer base and plan to expand the business to include prepared food items, including snacks and packaged meals, to complement the consignment shop and the convenience store items already in stock.

Competitive Advantage

Casual Consignment will be able to offer the following advantages over their competition:

• Inventory changes regularly on a one-month rotation to refresh customer choices and clothing availability

Marketing Plan

Brand & value proposition.

Casual Consignment will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who offer both excellent prices and assistance in service to customers.
• A comprehensive, curated selection of cleaned clothing for customers
• Affordable pricing on clothing that is sustainable and usable, saving the environment in the process

Promotions Strategy

The promotions strategy for Casual Consignment is as follows:

Word of Mouth/Referrals

Casual Consignment has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients. The contacts and clients will follow the employees to their new company and help spread the word of Casual Consignment.

Professional Associations and Networking

Retail associations will be joined and networking will be a priority during the first years of business in Houston. There are competitors, both direct and indirect, and the possibility exists for collaboration via associations.

Print Advertising

A direct mail piece will be sent to every Houston household offering a significant discount on clothing purchased during the first 90 days of business. This offer will be made to incentivize new customers to find and continue returning to the Casual Consignment Shop.

Website/SEO Marketing

Casual Consignment will fully utilize their website. The website will be well organized, informative, and list all the product types and services that Casual Consignment provides. The website will also list their contact information and list their holiday special inventory items, along with monthly discounts. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “consignment company” or “clothing resale near me,” Casual Consignment will be listed at the top of the search results.

The pricing of Casual Consignment will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Casual Consignment. Operation Functions:

• Terri Cooper will be the owner and president of the company. She will oversee all staff and manage client relations. Terri has spent the past year recruiting the following staff:
• Cary Brown will become the store manager and help oversee the store and take on operational duties.Cary Brown worked alongside Terri Cooper for five years after graduating from Houston Lyons High School.
• Manny Jaurez, also a former retail associate, will become the general maintenance man and assistant in stocking and inventory.

Milestones:

Casual Consignment will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease store space
• 5/15/202X – Finalize personnel and staff employment contracts for Casual Consignment
• 6/1/202X – Finalize contracts for Casual Consignment vendors
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Casual Consignment store
• 7/1/202X – Casual Consignment opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Casual Consignment are the clothing fees they will charge to customers for their inventory items.

The cost drivers will be the overhead costs required in order to staff Casual Consignment. The expenses will be the payroll cost, rent, utilities, shop supplies, and marketing materials.

Funding Requirements and Use of Funds

Casual Consignment is seeking $200,000 in debt financing to launch its consignment store. The funding will be dedicated toward securing the store space and purchasing equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 400
• Average Revenue per Month: $48,500
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Consignment Store Business Plan FAQs

What is a consignment store business plan.

A consignment store business plan is a plan to start and/or grow your consignment store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Consignment Store business plan using our Consignment Store Business Plan Template here .

What are the Main Types of Consignment Store Businesses?

There are a number of different kinds of consignment store businesses, some examples include: Clothing, Books, Music and Movies, and Furniture.

How Do You Get Funding for Your Consignment Store Business Plan?

Consignment Store businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Consignment Store Business?

Starting a consignment store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Consignment Store Business Plan - The first step in starting a business is to create a detailed consignment store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your consignment store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your consignment store business is in compliance with local laws. 3. Register Your Consignment Store Business - Once you have chosen a legal structure, the next step is to register your consignment store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your consignment store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Consignment Store Equipment & Supplies - In order to start your consignment store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your consignment store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Furniture Store Business Plan PDF Example

• May 15, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful furniture store. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your furniture store’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a furniture store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your furniture store concept into reality. Let’s dive in!

Our furniture store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your furniture shop’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the shop’s design, layout, and why its location is appealing to potential customers.
• Products & Pricing: Lists the types of furniture offered by your shop, including pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the furniture market.
• Key Trends: Highlights recent trends affecting the furniture sector.
• Key Competitors : Analyzes main competitors in the area and how your shop differs from them.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the furniture shop and their roles.
• Financial Plan: Projects the shop’s 5-year financial performance, including revenue, profits, and expected expenses.

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Furniture Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

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Executive Summary

The Executive Summary introduces your furniture store’s business plan, offering a concise overview of your store and its products. It should detail your market positioning, the range of furniture and home decor items you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your furniture store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your furniture store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

Store & location.

Briefly describe the furniture store’s physical environment, emphasizing its design, layout, and the welcoming atmosphere it offers to customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to shoppers, such as proximity to popular shopping districts or ease of parking. Explain why this location is advantageous in attracting your target clientele.

Supply & Products

Detail the range of furniture and related products offered, from basic home furnishings to specialized items like custom-made pieces, home accessories, or eco-friendly furniture. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any promotions, financing options, or loyalty programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Make sure to cover here _ Store & Location _ Supply & Products

Market Overview

Industry size & growth.

In the Market Overview of your furniture store business plan, start by examining the size of the furniture retail industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized furniture solutions, sustainable and eco-friendly products, and innovative design styles. For example, highlight the demand for furniture that caters to specific lifestyle needs and preferences, alongside the rising popularity of environmentally conscious furniture stores.

Key Competitors

Then, consider the competitive landscape, which includes a range of furniture stores from high-end boutiques to budget-friendly options, as well as online furniture sales trends. For example, emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain types of furniture. This section will help articulate the demand for furniture store services, the competitive environment, and how your store is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the furniture store , highlighting Strengths (such as quality craftsmanship and a diverse product range), Weaknesses (including high operational costs or intense competition), Opportunities (for example, an increasing trend in home improvement and interior design), and Threats (such as economic downturns that may decrease consumer spending on non-essential items).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, engaging social media presence, and community involvement. This could include collaborations with interior designers, staging partnerships with real estate companies, or hosting DIY furniture workshops to increase brand visibility and consumer engagement.

Finally, create a detailed timeline that outlines critical milestones for the furniture store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose. This timeline should include key dates for product launches, seasonal sales campaigns, and potential entry into new markets or online expansion.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the furniture store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the furniture store toward its financial and operational goals.

For your furniture store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your furniture store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your furniture store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Consignment Shop

Back to All Business Ideas

How to Start a Consignment Shop (with Free Checklist)

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 31, 2022 Updated on July 2, 2024

Investment range

$2,550 - $13,100

Revenue potential

$156,000 - $468,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $187,000 p.a.

Industry trend

Here are the most crucial considerations when you are starting your consignment shop:

• Location — Choose a location in a busy shopping area, near other popular retail stores, or in a neighborhood with a lot of residential foot traffic.
• Niche — Focus on one niche to reach your target market, such as clothing, luxury goods, vintage and antiques, furniture and home decor, books, electronics and technology, and collectibles.
• Inventory management and tracking — Use inventory software to track stock levels, sales patterns, and reorder times efficiently. This can prevent overstocking or stockouts.
• Licenses and permits — Since consignment shops sell goods on behalf of others, a resale certificate (also known as a seller’s permit) is often necessary.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Security — Install CCTV cameras both inside and outside the store to monitor activity and deter shoplifting and burglary. An alarm system can provide an added layer of security during non-business hours by alerting local authorities to any unauthorized entry.

Interactive Checklist at your fingertips—begin your consignment shop today!

You May Also Wonder:

Is a consignment shop profitable?

Yes, consignment can be a very profitable business. The market for resale clothing is growing rapidly, so demand for the items you sell should be high.

How do consignment shops get paid?

Consignment shops get a percentage of the sale price of the consigned items. The fee ranges from 40% to 60% for clothing and accessory sales. Fees can be higher for items like furniture.

What are the risks of a consignment store?

The main risks are the items being damaged or stolen. Then you could be liable to the owners of the items.

How do I train and manage employees for my consignment shop?

You’ll need to train them on how to value consignment items. Then you’ll need to monitor the transactions they make to ensure that the prices are accurate.

How do I plan for the long-term growth and sustainability of my consignment shop?

You’ll need to create a strategic plan for how to market your shop, and how you’ll handle the business as your sales increase. 

How do I measure the success of my consignment shop?

The bottom line is most important. You need to be able to make enough profit to make a living.

Step 1: Decide if the Business Is Right for You

Pros and cons.

In a nutshell, consignment shops get paid for selling other people’s stuff. People bring in unwanted shoes and clothing, antiques, and household goods, and the shop sells them for an agreed-upon price and takes a commission, usually about 50%.

Still, starting a consignment shop has pros and cons to consider before deciding if it’s right for you.

• Business model options — Choose a physical or online consignment shop
• Good margins — Pay nothing for inventory until it sells; get half the sale price
• Hot market — Demand for vintage and second-hand clothing is rising
• Delayed opening — Build up inventory before the store opens
• Crowded market — A hot market means lots of competition

Consignment Industry Trends

Industry size and growth.

• Industry size and past growth — The global second-hand clothing industry is worth $197 billion, about $56 billion more than in 2021.(( https://www.thredup.com/resale/#size-and-impact ))
• Growth forecast — The global second-hand clothing industry is projected to reach $350 billion by 2028. 

Trends and Challenges

• Online clothing resale is the fastest-growing market segment, expected to quadruple by 2026.
• In 2021, 244 million US consumers said they were open to buying second-hand clothing.
• A growing number of players in the online consignment store market are creating greater competition.
• Generally only brand name clothing is sold in consignment shops, which means shop owners have to watch out for knock-offs. 

How much does it cost to start a consignment shop business?

Starting an online consignment shop will cost about $2,500. Your costs will be for a website and marketing costs. Starting a brick-and-mortar consignment shop will cost about $13,000.

How much can you earn from a consignment shop business?

Prices for consignment items will vary. Since you’ll be looking for high-end items to sell, these calculations will assume an average item price of $300, of which you’ll get 50%. If you’re running an online consignment store, your profit margin after marketing costs and paying the consignor will be about 40%. 

In your first year or two, you could sell 10 items a week, bringing in $156,000 in annual revenue. This would mean $62,000 in profit, assuming that 40% margin. As your website gets more traffic, sales could climb to 30 items a week. With an annual revenue of $468,000, you’d make an outstanding profit of $187,000.

What barriers to entry are there?

The only barrier to entry for a consignment shop is the competition you’ll face.

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Step 2: hone your idea.

Now that you know what’s involved in starting a consignment shop, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research consignment shops in your area and online to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the market is missing a consignment store that sells furniture and household items.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as luxury brands or high-end accessories.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine the types of clothing and other products you’ll offer

You’ll need to determine if you want to specialize in clothing or some other type of merchandise. In addition to consignment items, you could also operate in part as a thrift store or online thrift store and sell donated items or items you find at garage sales. You could also have a retail store in your shop where you sell items that you’ve purchased wholesale. 

How much should you charge for consignment items?

Prices will vary based on the item and its retail price. For an online store, after the cost of paying consignors and marketing, you should aim for a profit margin of about 40%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook. 

Where? Choose your consignment shop location

Choosing the right location for your consignment shop is crucial for attracting customers and ensuring its success. Look for a spot in a high-traffic area with good visibility, such as a popular shopping district or a busy downtown area.

Consider accessibility and convenience, ensuring that the location is easily reachable by public transportation and has ample parking. Additionally, assess the local demographics and aim to select a location that caters to a wide range of customers. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Consignment Shop Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “consignment shop,” boosts SEO
• Name should allow for expansion: “Renewed Treasures” over “Sports Gear Consignment Shop”
• A location-based name can help establish a strong connection with your local community and help with the SEO, but might hinder future expansion

Discover over 260 unique consignment shop name ideas here . If you want your business name to include specific keywords, you can also use our consignment shop business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure those names are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Consignment Shop Business Plan

Here are the key components of a business plan:

• Executive Summary — A brief overview of your consignment shop business, highlighting key points such as the business concept, goals, and potential for success
• Business Overview — Detailed information about your consignment shop, including its mission, vision, location, legal structure, and any notable achievements or milestones
• Product and Services — Description of the items your consignment shop will accept and sell, emphasizing the quality, uniqueness, and appeal of the products
• Market Analysis — Examination of the target market for your consignment shop, including demographics, trends, and potential growth opportunities
• Competitive Analysis — Evaluation of other consignment shops or similar businesses in the area, identifying strengths and weaknesses to position your shop effectively
• Sales and Marketing — Strategies for promoting your consignment shop, attracting customers, and driving sales, encompassing both online and offline channels
• Management Team — Introduction of key individuals involved in running the consignment shop, highlighting their expertise and roles
• Operations Plan — Details on the day-to-day operations of your consignment shop, covering aspects such as inventory management, staffing, and customer service
• Financial Plan — Projections and analyses of the financial aspects of your consignment shop, including startup costs, revenue forecasts, and break-even analysis
• Appendix — Additional supporting documents, such as resumes of key team members, detailed market research data, and any other supplementary information relevant to the business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to consignment shops. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your consignment shop will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership — Similar to a sole proprietorship but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp — An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best bets, other than friends and family, for funding a consignment shop business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Consignment Shop Business Licenses and Permits

Starting a consignment shop business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your consignment shop business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as ConsignPro , resaleworld , or SimpleConsign , to manage your inventory, billing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Website — Create a compelling website that showcases your latest finds, store events, and customer testimonials.
• Local SEO — Optimize your website to target local search terms related to consignment, thrift shopping, and sustainable fashion to increase online visibility. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional Branding — Ensure your branding captures the eclectic and unique nature of your shop, reflecting a sense of discovery and sustainability.
• Social Media Engagement — Leverage Instagram, Facebook, and Pinterest to share new arrivals, fashion inspirations, and sustainable shopping tips.
• Fashion and Sustainability Blog — Publish content about fashion trends, upcycling tips, and the benefits of consignment shopping.
• In-Store Events — Host events like styling workshops and local artist pop-ups to create engaging shopping experiences.
• Partnerships with Local Designers — Collaborate with local designers or artisans to offer unique products and support local talent.
• Loyalty Rewards Program — Implement a program that provides discounts or special privileges to frequent shoppers.
• Targeted Local Advertising — Advertise in local media and online platforms to reach potential customers in your community.
• Email Marketing — Engage your customer base with newsletters that highlight new inventory, fashion tips, and store events.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your consignment shop meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your consignment shop business could be:

• Luxury brands at non-luxury prices 
• Top-quality consignment and thrift items shipped fast!
• Sell your unwanted collectibles and make good money

You may not like to network or use personal connections for business gain, but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a consignment shop business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in consignment shops for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in consignment shops. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a consignment shop business include:

• Shop clerks — making sales, customer service
• General manager — inventory management, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Consignment Shop — Start Making Money!

The consignment market is heating up, with resale clothing and accessories experiencing boom times. Now is the perfect time to open your own consignment shop. If you have a great eye for fashion and a desire to provide customers with great products, you could build a lucrative consignment operation.

You’re done your business homework now, so it’s time to get the word out and launch your successful consignment shop. 

I have recently given a small art gallery several of my handmade quilts for sale. I am curious as to what practices, documentation if any that the gallery should have provided to me to show I submitted these items and what happens if my items are stolen from the store. I feel concerned without anything “in hand” to prove that these things were given to them. Thank you for your advice.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Consignment Shop Name
• Create a Consignment Shop Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Consignment Shop Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Consignment Shop — Start Making Money!

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Home » Sample Business Plans » Wholesale & Retail

How to Write a Consignment Shop Business Plan [Sample Template]

Are you about starting a consignment shop? If YES, here is a complete sample consignment shop business plan template & feasibility report you can use for FREE . A Consignment Shop is a name given to a business where fairly used or second hand goods are sold. A consignment shop is a business you can start with little or no money because you just needs goods from individuals who do not need them and then sell to people that need them at giveaway price.

Just as we already know, fairly used products are highly affordable and far cheaper than brand new items, which is why the consignment sector of the retail industry will continue to flourish. It is also important to note that the consignment sector is not capital intensive. Thus business is a business you can do from the comfort of your home and earn a substantial income.

A Sample Consignment Shop Business Plan Template

1. industry overview.

The consignment sector of the retail industry has been able to capitalize on the recession, but its performance has suffered with the recovering economy. Also the rising unemployment rates have instigated or cause a drastic decreasing in per capita disposable income levels, moving consumers to reduce their discretionary spending.

It also moved many consumers who customarily shopped at department stores to turn towards the sector to buy cheaper used goods instead of new products. But it has been estimated that that the sector revenue will fall alongside general macroeconomic improvements.

Within the next five years, the sector revenue is expected to increase at a slower pace than the previous five-year period, largely as a result of rising disposable income and competition levels. The consignment shop sector is believed to be in the mature stage of its economic life cycle.

Industry value added (IVA), which calculates an industry’s contribution to the overall economy, is expected to rise at an annualized rate of 2.6% during the 10 years to 2022. The demand in this sector is driven by Demographics, consumer income, and consumer tastes.

The success of individual companies rests on efficient procurement and effective merchandising. Bigger businesses in the sector have advantages due to large marketing and finance, but little businesses can compete effectively by giving specialty products, serving a local market, or providing superior customer service. The US industry is fragmented: the 50 largest US companies account for about 30% of sales.

2. Executive Summary

Soccer Shops is a new sports consignment business in Honolulu, Hawaii. This business was founded and will be managed by Richard Craig, a retired footballer and presently the attacking coach with FC Hawaii. Just as you might have guessed, Richard is a well exposed footballer and an expert in the sports business. He understands the industry and best way to approach situations.

We at Soccer shops hope to capitalize on the vast opportunity and expertise of Richard Craig to dominate the market, which may include selection of used goods not replicated in the city, superior customer service, and reasonable prices.

We have been able to secure a suitable location that offers very good foot traffic, easy accessibility, and good road networking. We hope to work very hard to establish a business that will be the leading figure in the industry and also satisfying our customers need and demands.

Our Objective at Soccer ship is to establish a retail store whose primary goal is to surpass customer’s expectations, establish a business that will increase the number of clients served by at least 20% per year through superior performance and selection and to reduce drastically its dependence on non-renewable resources through the use of reused goods.

3. Our Products and Services

The fact that starting a consignment business can be very simple needs little or no up capital, requires no technical skills and it is a profitable venture makes it one of the businesses that a lot of people would want to start hence the high level of competition in the industry.

This is exactly why we at Soccer shop are very careful and zealous, so as not to start losing even before we open our doors. We hope to sell a vast range of sports and outdoors gears. We hope to add more items as we grow.

• Fleece outerwear.
• Rain gear, waterproof as well as coated nylon.
• Thermal underwear.
• Synthetic clothing for sports or travel
• Sleeping bags.
• Sleeping pads
• Duffel bags
• Cookware and stoves, and much more

4. Our Mission and Vision Statement

• Our vision at Soccer shop is to build a standard one stop consignment shop in Honolulu, Hawaii – a business that will serve the needs of the people of Hawaii and surrounding states.
• Our mission at Soccer ship is to give our customers quality sports and outdoor clothing and gear at affordable prices and rates.
• Our mind set is set to attract and retain our customers.
• We hope to stand by our vision and goals, and also provide services that will surpass that of our competitors.

Our Business Structure

SoccerShop just like we already said is a sports consignment shop owned and managed by Richard Craig. Richard Craig obtained business degree from the prestigious University of Hawaii. Richard Craig is also a retired seasoned footballer.

He started his football career with Honolulu galaxy futbol club before moving to Nottingham forest in England. He played in many A-list clubs which includes Portsmouth, Arsenal FC, Valencia FC in Spain, Lyon on France, before retiring in D. C United.

After a successful career that saw him win many trophies, he became a strong figure in the Hawaii football world. His presently the Attacking coach of FC Hawaii. His well known for his help in brings the football gears giants Adidas to Hawaii.

His also a sports analyst and also grew up managing his mum’s retail store. All these enormous experiences and many more not mentioned have instigated Richard Craig to believe he has the skills to manage and run Soccer Shop. We believe in his passion for success and his zeal to make Hawaii better and comfortable for its citizens.

We at Soccer shop are also interested in hiring individuals who are as experienced as Richard Craig to help us run our business. We hope to train them before bringing them into the business. We hope to train them on good customer approach, good communication skills and awesome customer service culture. We hope to start Soccer Shop with the following portfolios;

• Chief Executive Officer (Owner)
• Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO

• In charge of providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• In charge of fixing prices and signing business deals
• In charge of recruitment
• In charge of payment of salaries
• In charge of signing checks and documents on behalf of the company
• Evaluates the success of the organization

Store Overseer

• In charge of managing the daily activities in the ship
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Takes care of vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• In charge of the purchase of goods and products for the organizations
• In charge of planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Takes care of external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyse the volumes of transactional data generated by customer purchases
• Takes care of the organization website
• Handles ecommerce aspect of the business
• In charge of installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Takes care of the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• In charge of payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / store manager
• In charge of cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager,

6. SWOT Analysis

Our business plan we believe is not an ordinary document written to be kept in a drawer, but a plan that will tell us what to do and how to manage our business. This is the reason why we were very careful to conduct a SWOT Analysis.

We at Soccer shop are very much aware of the large quantity of retail stores in Honolulu even in the same location as us. This is also the reason why we are leaving no stone unturned to make sure that we establish a business that will take over the Industry.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Our SWOT Analysis was conducted by Access Business Consult. This firm is known to be the leading figure in business improvement and consulting. They did their job judiciously and they also worked with the available workforce we have at Soccer shop, before coming up with the SWOT Analysis that is summarized below;

According to our SWOT Analysis, our strength rests on our business location, our experienced workforce, and our standard Business model. Our SWOT Analysis went extra miles to discuss the possible competition we will be facing but noted that with our strength, we are heading for success without any barriers or whatsoever.

Our SWOT Analysis was quick to notice that our major weakness of the fact that we are a new consignment shop in the city of Honolulu, and it will take time for people to know what we offer and where we offer them. But we have designed our publicity and advertising strategies to be able to settle this problem once and for all.

• Opportunities

With the recovery of the economy from recession, people are trying to manage their funds. They believe that the economy might still decline and it is best if they plan the future by cutting down their expenses.

Our SWOT Analysis noted that the feeling to cut down expenses will keep growing the consignment shop sector. We believe that the opportunities available to us are enormous and we hope to take it within the proximity of the law of the united states.

Our SWOT Analysis also noted that our major threat will be the time it will take us to gather the exact workforce that we need to run Soccer Shop. It is believed that good hands are scarce on the market, but we believe that Richard Craig being a leader in the industry can be able to help sort out this issues and also instigate a proper marketing plan that will push Soccer Shop forward.

7. MARKET ANALYSIS

• Market Trend

It has been estimated that the retail sporting goods industry will rise with a CAGR of 3.4% over 2016-2022. It is believed that the main instigators of this growth in the retail sporting goods industry are increase in disposable income, governments promoting sports activities and encouraging sports participation, rising number of health-conscious people.

This rise we believe will encourage individuals to participate or choose more games or sports. And it is expected that many retailers will make use of the  social network to engage users and influence their merchandising decisions this year, but businesses are expected to go beyond that and use social not just to showcase products, but to actually sell them.

It is also expected that retailers will adopt marketing plan with tech innovations to decide how they can use them to aid the shopping experience. Innovation in this industry is expected to come from the technology part of the world. Cloud-based point of sale systems has proven that they can push old payment options out of the market with their performance, functionality, and looks.

And we believe that many retailers will recognize this and make the switch. Estimates and research has proven that about seven percent of consumers currently own wearable gadgets such as smart watches, glasses, and fitness monitors. But that figure is expected to triple in 2017.

This will move companies to become innovative on how to satisfy the urge of the world. The prices of these goods are also expected to be on the increase and not everyone can afford it, which in turn is an opportunity for us at Soccer shop.

8. Our Target Market

We will target and reach the people we know will benefit more when they use our brands. It is very important to note that the market for sports and outdoor clothing and gear consignment shop in Honolulu is wide open and ready for the taking. Honolulu Hawaii is the best community to push Soccer shop forward because it is the hub of sports activities.

From our extensive research, we have also found out there is no other consignment shop that offers the same products we hope to offer in Honolulu Hawaii. For this reason, we believe we can take over the industry and create a landmark that cannot be tampered with.

We at Soccer shop hope to target individuals that need sports and outdoor clothing and gear but cannot afford it due to financial constraints. It is an established fact that most sports and outdoor enthusiasts do not have unlimited financial resources but they value quality of life, and one part of their daily activities is free time in the outdoors.

Spending a substantial amount of time in the outdoors precludes being at the office making money concurrently. We believe this is even more common with the people living in Honolulu. People choose to settle in Honolulu and Hawaii entirely because of its serene environment and mountainous nature.

We believe that with a great population of sports and outdoor enthusiasts, particularly those who are willing to give up their financial gains for quality of life, we at Soccer shop have a large population base to offer our products and services. The presence of Honolulu galaxy futbol club, FC Hawaii, University of Hawaii, Honolulu city football club, Hawaii Youth Soccer Association clubs, and Hawaii Harlequins Rugby Football Club will serve as bonus to us.

Our competitive advantage

It is important to note that Honolulu has no sports and outdoor consignment shop, but there are two competitors in the whole of Hawaii that offer the same services like SoccerShop; although one is a consignment shop and the other is a normal sports retailer. Though they are miles away and in different smaller towns, we see them as competitors we need to take seriously.

Our main competition in Honolulu is the retail shops where individuals can buy brand new sports and outdoor clothing and gears. Another competition we are very aware of is the thrift stores that sell used clothing and equipment in Honolulu. These shops are very few in Honolulu, but we are considering every possible point in other not to make mistakes.

We at Soccer shop are very sure that our choice of used sports and outdoor clothing and gear cannot be replicated in the city. We know there are a lot of sports retailers in Honolulu, but none of them sell used sports and outdoor items. We at Soccer shop hope to offer superior, personalized customer service. Soccer shop is a used sports item shop but we intend to run it as a shop that offers brand new merchandise.

Even consignment shop retailers have expectations of high service. We are prepared to treat our prospective customers with very personalized service. We hope to create a standard database of our customers and purchasing history so when they enter the store the sales person will have very personal information about the customer. This we believe will make them feel special and inculcated into our business stream.

9. SALES AND MARKETING STRATEGY

• Sources of Income

There a whole lot of areas we are looking at making money from, this is since we are not a charity organization. Soccer Shop will be formed as a corporation in Hawaii, with our shop and warehouse in Honolulu. Soccer shop was formed as a consignment shops that sales sports and outdoor clothing and gears to the people of Hawaii.

We believe that our business model is well organised to fetch us incomes that will help us run the business successfully without hindrance. We hope to offer the following services to gain substantial income;

• Sleeping bags
• Cookware and stoves, and much more.

10. Sales Forecast

We at Soccer shop hope to use the first month to get the store prepared for business and within this period, we do not hope to take part in any sales activity. We hope to prepare our store, display counters which will be set up as will all of the racks. During that period, our dressing rooms will then be built. We hope to open our shop officially during our second month but we acknowledge that business will be slow.

We hope to build up inventory during the second month. We also hope to achieve this through advertising in the many different local outdoor magazines/ journals, as well as advertising at the University of Hawaii generally, as well as in all sports club and facility. From our fourth month we believe that our sales will be steady and rising. Listed below is an accurate sales forecast for Soccer shop;

• First Year-: $900,000
• Second Year-: $1,600,000
• Third Year-: $2, 500, 000
• Marketing Strategy and Sales Strategy

We will voraciously do marketing from the outset. We believe in the massive result that a diligent marketing drive can bring about and that is why we want to work our best. We at Soccer shop understand that managing a business requires that you to be sharp and focused when it comes to marketing your goods or services.

We hope to start promoting Soccer shop even before we open our doors for business; we hope to move individuals to bring their used goods to us for remodelling and selling.

We understand that having a vast range of inventory is very important in the industry and this can be achieved very well through a two prong approach. Our first advertisements at Soccer shop will be to announce our shop in local sports magazines/journals and requesting people to bring in their extra clothing and gear to sell.

The second phase of our advertising will be to contact sports manufacturers, retail outlets, and manufacturer representatives and alerting them to the option of selling their excess products at Soccer shop. Below are marketing strategies we hope to use at Soccer Shop;

• We hope to use Direct Marketing
• We will also Sponsor TV and Radio Programs
• We also plan to erect our Billboards in Strategic locations around Honolulu
• We plan to make use of sales Agents and sales reps
• We hope to leverage online Marketing (via your official website, social media platforms and blog et al)
• We will also use Referral Marketing to our advantage
• We will also engage in road show within the community where your consignment store is located.
• The we will list your business in local directory / yellow pages

11. Publicity and Advertising Strategy

No business does well without marketing and advertising. We know this and that is why we will leave no stone unturned in seeing to it that we get our products and services to be in the faces of people. We at Soccer shop understand how competitive the global consignment shop industry is, which is why we have devised ways to neatly used items at giveaway prices or remodel the once we get.

A Consignment ship just like any other business in the retailing industry needs constant promotion to get people to buy into the brand and we at Soccer shop are very ready to make people know that we exist. We hope to make use of the following strategies to promote Soccer shop;

• Place adverts on national TV stations, Radio Stations and Newspapers / Magazines
• Run our own special TV program
• Sponsor relevant community programs
• Leverage the internet and social media platforms like; Instagram, Facebook , Badoo, YouTube, Twitter et al
• Install our Bill Boards on strategic locations
• Engage in road show from time to time
• Distribute our fliers and handbills to targeted areas from time to time
• Send out introductory letters to households in and around our location
• Encourage the use of word of mouth especially from loyal customers
• Ensure that all our vehicles are branded with our company’s logo
• Ensure that all our employees wear our branded shirts during work hours

12. Our Pricing Strategy

We at Soccer shop understand how important pricing can be to a business especially in the retail industry. We also understand that the success we hope to achieve in terms of pricing rests on our bargaining power. Which is why our merchandise Manager will have to come together with the Chief Executive Officer to ascertain the price of our goods, and also the price of the inventories we purchase.

We also plan to inculcate all our expenses in our pricing in other maximize profits that will helps manage our business successfully.

We at Soccer shop plan to keep our prices below the average market price for all of our customers by keeping our overhead low and by collecting payment in advance from individuals who would want to book a product. We also hope to offer special discounted rates to all our customers at regular intervals to attract them to our business.

• Payment Options

We at Soccer shop are very much aware that the payment options we provide will serves as a factor that brings our business closer to the heart of the people, and we are very much prepared to make use of that extensively. We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.

We also hope to provide these services by partnering with a renowned bank in the country. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

• Payment by via bank transfer
• Payment by POS
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

13. Startup Expenditure (Budget)

We will do well to count our chickens even before they are hatch. This we know will enable us work hard at achieving our goals and dreams. It is a well noted fact that starting a consignment shop isn’t an easy task and can be dictated by a lot of facts.

Factors like the location you intend starting the business, the type of second hand goods you want to retail, the size of the consignment shop you want to open, and of course the state of the economy as at when you intend starting the business. Starting a consignment shop requires little or no capital.

SoccerShop will be the forerunner of the industry, which is why we are very careful to note all important facts. We hope to spend our start up capital in the following way;

• Office equipment and furniture – $18,000
• Cost for store equipment (cash register, security, ventilation, signage) – $19,000
• The cost for Start-up inventory – $250,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $49,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
• Cost for Shop remodelling – $5,000.
• Cost for payment of rent for a shop for 12 month at $1.76 per square feet in the total amount of – $52,800.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,000
• Cost for hiring Business consultant – $2,500
• Marketing promotion and grand opening expenses – $94,000
• Legal expenses for obtaining licenses and permits as well as the accounting services totalling – $1,300.
• The Total Fee for Registering the Business in the United States of America – $750.
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• Additional Expenditure (Business cards, Signage et al): $5,000

From our Analysis above, we need $534,450 to start SoccerShop. We are very much prepared to organise and manage our business to maximize profits and become the lead figure in the industry.

Generating Funding / Start up of Soccer shop

Starting up a business might be a challenge at first. This is why we have put plans in place on how to make sure that the funds needed for this business is generated. Soccer shop is a standard consignment shop that will sell only sports and outdoor clothing and gears.

This business was founded and will be managed by Richard Craig, a retired footballer and presently the attacking coach with FC Hawaii. The business will be financed by Richard Craig and his immediate family members. Which is why the generating of start up capital has been restricted to just Richard Craig.

Richard Craig has been able to raise $600,000 from his own personal savings as a seasoned footballer and many endorsements. Being the only one to raise the fund doesn’t mean that soccer shop will be managed like a bedroom business. The business will be run by professionals and every decision will be extensively discussed.

14. Sustainability and Expansion Strategy

It is the wish of all businesses to soar and then break even. This is exactly part of our aim too. And that is why we want to strive to make sure this comes to a pass. Our sales strategy at Soccer shop will rest on solid retailing techniques of proper display and proper lighting.

We plan to set up our store so that the floor space is divided up in thirds with the best sellers in the most accessible front third, and then the next best sellers in the second third, and so on. We believe this will help produce what we buttress at Soccer.

All our products will be tagged with bar code price labels, which will provide inventory control and also stop the adjustment of the prices by bad customers. We also plan to be rotating our unsold stock every 90 days. Which means that any item not sold within 90 days of purchase will be returned to its owner.

We at Soccer shop hope to get our inventories from different sources. We hope to get our inventory from individuals that believe that it is preferable to receive something for their goods rather than packing them up to a thrift store. These individuals might want something new and may decide to raise the fund by selling what they already have.

We also plan to get our inventory from manufacturers who might want to get rid of some of their inventory, maybe because the products are outdated. We will also get our inventory from manufacturers’ representatives that get a large number of samples from many different manufacturers and tend to pass them out when they no longer need them.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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How To Start a Consignment Shop in 12 Steps

Get the inside scoop on starting a consignment shop. Our detailed guide covers business plans, inventory sourcing, and marketing strategies to set you up for success.

Becoming a consignment store owner can be a smart business move. In 2023, the global secondhand and resale industry was valued at $197 billion , and is projected to soar by another $100 billion by 2026—and that’s just in apparel.

Whether you’re selling vintage fashion, unique furniture, or eclectic home décor, a consignment business offers a low-cost inventory model, where you only pay for items once they sell. This setup attracts a diverse customer base eager for unique, affordable finds.

But where do you start? Ahead, you’ll learn how to start a consignment shop from start to finish. 

How to start a consignment shop

• Decide what kind of store you want to open
• Make a budget for your store
• Create your store’s business plan
• Choose a legal structure
• Open a business bank account
• Find a storefront
• Acquire your products
• Design your consignment shop
• Choose a POS system
• Market your consignment shop
• Hire and train staff
• Launch your consignment store

1. Decide what kind of store you want to open

This decision shapes every other aspect of your business, from your inventory to your target audience , and even your location. Here are some considerations to determine the best type of consignment store for your vision:

• Passion and expertise. Do you love vintage finds or quirky home décor? Maybe you’re into art and jewelry? Your passion will drive your business, so pick a niche you genuinely care about.
• Market demand . Look at your local market. Are there lots of consignment stores for home furniture? Maybe there’s a gap for high-quality vintage clothing or children’s items. You can also use local business directories and Google Trends to understand the market demand.
• Competition. Visit other consignment stores in your area. Make note of their strengths and weaknesses, product offerings, pricing, and customer service. Use this as a learning opportunity to understand what works and find ways to stand out.
• Target audience. Who are your potential customers? It could be young professionals, collectors, parents, children. Knowing your audience helps with product selection, store atmosphere, and marketing efforts. Consider creating customer personas to visualize your buyers.
• Your resources. Take stock of your available resources: time, money, and skills. Align your consignment shop with your strengths to improve your chances of success. For instance, are you good at staging furniture? Or do you have a knack for identifying valuable vintage pieces? 

💡 Top Tip: Sustainable shopping is on the rise. Offering eco-friendly goods can attract customers willing to pay a premium .

Popular consignment store types and niches

Designer goods.

Specializing in high-end designer items can attract brand-savvy customers, but authenticity is key. LaliSimone , for instance, offers an impressive collection of verified designer wear.

While this niche comes with high profit margins and a loyal customer base, it requires a significant initial investment and rigorous authentication.

Here, you’ll be catering to specific markets (e.g., athletic, vintage, designer shoes) and stocking a variety of sizes and styles to meet different customer needs. Take a cue from Kick Game —the brand offers all kinds of sought-after streetwear brands.

Expect high demand and potential high resale value, especially among sneaker enthusiasts. However, managing inventory can be challenging, and competition is stiff.

Consignment book shops typically offer rare finds, first editions, or popular genres. You can also host events like book clubs and coffee chats to build a loyal community, similar to Crow and Co. Books .

This niche has a steady demand and opportunities for engagement but also has lower profit margins and requires large inventory space.

Children’s wear

If you choose this niche, you’ll be stocking affordable, gently used items for kids, from newborn to teen. Focusing exclusively on children’s apparel, like Thrifty Baby , can result in high turnover and strong demand. However, be prepared for challenges such as constant inventory replenishment, quick wear-out of items, and strict adherence to safety standards.

Online only

To run a flexible, broad-reaching online consignment shop, like ThredUp , requires a user-friendly website with high-quality photos and detailed descriptions.

This approach offers lower overhead costs, global reach, and flexible inventory management. The catch? It also demands strong digital marketing and comes with challenges related to shipping and returns.

2. Make a budget for your store

First, take a good look at your current income and savings. This will help you see how much you can invest in your new business.

Consider how much additional funding you might need. You can look into personal loans, business loans, or credit cards. Also, think about the cost of leasing or buying your store location, including the deposit, monthly rent, and any renovation expenses.

Then, take into account taxes, business licenses, and permits. Don’t forget essentials like fixtures, shelving, display cases, and a point-of-sale (POS) system . Plus, other supplies like pricing tags and hangers. 

Estimate the cost of your initial inventory, including upfront payments to consignors or purchasing high-demand items.

Next up are ongoing operational costs. This includes:

• Employee salaries , benefits, and training
• Monthly utilities (electricity, water, internet) and maintenance
• Business insurance for liability, property, and inventory protection
• Marketing costs , including website development, social media, local ads, and events
• Fixed bills like rent, phones, internet, payment processing, merchandise orders, and store supplies

After budgeting for expenses, focus on your store’s revenue projections. Plan for lower sales initially to ensure you have enough cash flow to cover expenses. Subtract your estimated monthly expenses from your estimated monthly sales to get an approximate monthly cash flow.

Knowing your potential income will help you make smarter decisions for your consignment store, like what inventory to buy, how to market your store, and when to hire staff.

💡 Top tip: Set aside a contingency fund for unexpected expenses like urgent repairs, sudden rent increases, or emergency stock purchases. Aim to save at least three to six months’ worth of operating expenses to handle unforeseen challenges without disrupting store operations.

3. Create your store’s business plan

Author Lee Bolman once said, “A vision without a strategy remains an illusion.” That’s why the next step is creating a solid business plan that sets your reseller business up for success. Your business plan should combine all your ideas into a clear strategy for making your consignment store profitable. 

Be sure to include:

• Executive summary: Provide a concise overview of your consignment business, including your mission statement, product offerings, and business goals. 
• Company overview: Describe your business, including its name, location, legal structure, and brief history. Highlight what sets your consignment store apart.
• Products or services offered: Detail the products or services you’ll offer, such as vintage fashion, furniture, home décor, or children’s items. Highlight any unique selling points or special services.
• Market analysis: Research your target market, competitors, and industry trends. Identify your target audience and explain how your store will meet their needs better than competitors.
• Marketing plan: Outline your strategies for attracting and retaining customers through online and offline tactics, such as social media, local advertising, email marketing, and in-store events. Define your brand positioning and customer loyalty plans.
• Logistics and operations plan: Explain your daily operations, including supply chain management, staffing, inventory control, and store layout. Mention the technology and systems you plan on implementing for efficient management.
• Financial plan: Mention how you plan on becoming a profitable business and include a projected financial timeline of at least five years. For external funding, outline your funding requirements and mention how you plan on repaying the loan. 

4. Choose a legal structure

Your business’s legal structure affects taxes, personal liability, and your ability to raise money. Here are your options:

• Sole proprietorship : Easy to set up, but you’re personally liable for everything.
• Partnership: Shared responsibility and profits with one or more people.
• Limited liability company (LLC) : Offers liability protection and flexible management.
• C Corporation : Provides strong liability protection but is more complex and costly to establish.

Consult a legal adviser to pick the best structure for your business. This choice can also impact your funding options, as lenders and investors may have preferences.

5. Open a business bank account

Once your legal structure is set, open a business bank account. This keeps your personal and business finances separate, making accounting and tax prep easier. You’ll need:

• Your business’s legal name and structure documentation
• Business tax identification. For instance, US store owners need an employer identification number (EIN) or Social Security number (for sole proprietors)
• Personal identification (driver’s license or passport)

Manage your money where you make it with Shopify Balance

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Once you have a business bank account, it’s time to fund your business. Some options include: 

• Personal savings: Using your savings is a common way to fund a consignment shop. You won’t incur debt or have to pay interest, and keep ownership of your entire business. But funds are limited to the amount of savings you have.
• Credit cards: These provide quick and accessible funding, often used to cover short-term expenses and manage cash flow . Credit cards come with high interest rates that can lead to massive debt if not managed properly.
• Startup loans: These loans are designed for new businesses and can provide the capital you need to launch and grow a consignment shop. They are offered by banks, credit unions, and online lenders, and can provide more funding compared to your savings. 

Get funding to run and grow your business through Shopify Capital

Shopify Capital makes it possible to receive funding in as fast as two business days, if approved, and use it for inventory, marketing, and more. Automatically make payments as a percentage of your daily sales.* No compounding interest. No schedules. No surprises.

Once you’ve secured the funding you need, you can start looking for a storefront.

6. Find a storefront

Look for locations with high foot traffic. Think: bustling streets, shopping centers, or areas near popular attractions and public transport hubs. Visit potential store locations at different times of the day to assess the flow of pedestrian traffic.

Make sure the area’s demographics match your target market. Research the age, income levels, and shopping habits of the local population. For example, if you’re targeting young professionals who love vintage fashion, an urban area with a vibrant nightlife would be perfect.

Next, ensure the space meets your needs for displaying inventory and accommodating customers. Consider:

• Product display: Is there enough room to showcase your items effectively?
• Customer flow: Can customers move around comfortably?
• Back-end operations: Is there adequate storage and space for staff?

Finally, your store should be easy to reach by car, foot, and public transport. Adequate parking is a major plus—customers might skip your store if parking is a hassle. In case street parking is scarce, consider partnering with nearby businesses for shared parking options.

Other things to consider include: 

• Lease terms and conditions: Understand the lease details, including duration, renewal options, rent increases, and extra costs like maintenance fees, taxes, and utilities. Negotiate for favorable terms.
• Local zoning and regulations: Ensure your location complies with local zoning laws for retail consignment stores. Check for any restrictions on business types, hours, or signage. Consult a zoning officer or legal adviser to avoid legal issues.

7. Acquire your products

To stock your consignment store with fabulous finds, try these strategies:

• Consignors: Partner with individuals looking to sell their gently used items. Promote your consignment services through local advertising, social media, and word of mouth. Highlight the benefits of consigning with you, like earning extra income and decluttering their homes.
• Local partnerships: Build relationships with local businesses, like boutiques or furniture stores, that may have excess inventory. These partnerships can provide a steady stream of high-quality items. Collaborate for mutual promotion, driving traffic to both your store and theirs.
• Community events: Attend garage sales, estate sales, flea markets, and conventions (ThriftCon, GotSole) to find unique items for your store. These events are a goldmine of potential inventory—you’ll likely find rare and interesting pieces to entice customers.
• Online platforms: Source inventory from online marketplaces where people sell second-hand goods. Think: websites like eBay, Craigslist, and Facebook Marketplace. Set up alerts for specific items to get notified when something relevant is listed.
• Association of Resale Professionals (NARTS): Join NARTS , the professional organization that connects resale buyers with suppliers. Being a member provides valuable networking opportunities, industry insights, and access to a wide range of inventory sources.

💡 Tip: Draft clear consignment agreements outlining terms, conditions, and commission structures (anywhere from 20% to 60%). Ensure both parties understand and sign these agreements.

8. Design your consignment shop

When designing your store, you want to maximize space and deliver a pleasant shopping experience. Take a page from Creative Goods & Co. , a family-owned store that balances aesthetics with functionality, creating a welcoming shopping experience.

Here’s what to keep in mind: 

Store layout and floor plan

• Plan a store layout that allows easy navigation with wide aisles and accessible popular items. Consider a grid or racetrack layout for specialty stores or a free-flow plan for high-end boutiques.
• Create distinct areas for different product types like clothing, furniture, and home decor to help customers find what they’re looking for.
• Design a flexible floor plan that can be rearranged for seasonal changes or promotions.
• Reflect your store’s branding with cohesive colors, décor, and fixtures.
• Use ambient, task, and accent lighting to highlight products and create a warm atmosphere.
• Invest in attractive displays and clear signage to showcase products effectively and provide useful information.

Customer experience

• Provide comfortable seating areas and mirrors, especially in clothing sections.
• Design an efficient and pleasant checkout area with space for queuing and an accessible POS system. 
• Place small, inexpensive items near the checkout for impulse buys.

Practical considerations

• Plan adequate storage space for inventory, supplies, and consignor items awaiting processing.
• Implement security measures like cameras, alarm systems, and strategic staff placement to protect inventory and ensure customer safety.

9. Choose a POS system

A POS system can be a game-changer for your consignment store, making daily operations smooth and keeping your customers happy.

With the right POS system, managing sales, inventory, and consignor accounts becomes effortless. It also helps you track what items customers buy, how often they shop, and their preferred payment methods. Using these insights, you can then tailor your inventory, marketing strategies, and promotions to better meet their needs. 

For instance, Shopify POS ensures secure payments, syncs seamlessly with online sales, and provides detailed sales reports to help you make informed business decisions.

“Shopify POS makes the customer experience I want to offer customers possible, without burdening me with more admin work,” says Mandalyn Renicker, owner of Offbeat Bikes. “It was easy to migrate, easy to learn, and makes running my business more straightforward than it used to be.”

💡 Learn how Offbeat Bikes improved customer service and saved time by migrating to Shopify POS .

Start selling in-person with Shopify POS

Shopify POS is the easiest way to start selling in-person. Take your brand on the road and accept payments, manage inventory and payouts, and sell everywhere your customers are—farmer’s markets, pop up events and meetups, craft fairs, and anywhere in between.

10. Market your consignment shop 

This step is all about creating a buzz around your consignment store—one that attracts customers and gets the money rolling in.

Here’s how you can do it, both online and in-person:

Online marketing

• Website and SEO: Create a user-friendly website showcasing your products. Optimize it for search engines with relevant keywords, meta tags, and high-quality content so potential customers can easily find you.
• Social media: Start building your presence on platforms like Instagram, Facebook, and Pinterest. Share sneak peeks of your inventory, BTS setups, and countdowns to your grand opening. Use high-quality images and videos to engage your audience.
• Email marketing: Collect email addresses through a sign-up form on your website and social media. Send out teasers and updates about your opening, and build excitement with exclusive previews and special launch offers.
• Online advertising: Run targeted ads on Google and social media to reach your local community. Focus on creating buzz and awareness about your upcoming store. Adjust your strategy based on engagement and feedback.
• Influencer collaborations: Partner with local influencers or bloggers to spread the word about your opening. Their endorsement can build trust before you even open your doors.

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In-person marketing

• Local advertising: Promote your store through local newspapers, magazines, and community bulletin boards. Use flyers and posters in high-traffic areas to get the word out. And if you’re up for it, get on the local radio or TV segments.
• Events and workshops: Plan pre-launch events such as pop-up shops, preview parties, or DIY workshops. These events can create excitement and give potential customers a taste of what to expect. Offer special promotions or discounts during these events to encourage early interest.
• Customer loyalty programs: Announce a loyalty program before your launch to entice potential customers. Offer points for signing up early, which can be redeemed for discounts or special offers once you open.
• Street presence: Make your storefront attractive and inviting with eye-catching window displays and clear signage. Use sidewalk signs to build anticipation and inform passersby of your opening date.
• Word of mouth: Encourage early supporters and friends to spread the word about your upcoming store. Offer referral incentives or discounts for those who bring in friends and family. Positive buzz can significantly boost your launch success.

11. Hire and train staff

With the store launch on the horizon, it’s time to build your dream team. 

Start by posting job listings on local job boards, social media, and your website. You’re looking for candidates with retail experience and top-notch communication skills. Conduct thorough interviews to find individuals who match your store’s culture and values.

Once hired, provide a detailed orientation to familiarize new employees with the store layout, inventory management processes, and safety protocols. Introduce them to your store’s mission and values to foster a sense of belonging and purpose.

We recommend setting up a thorough training program for your team. Cover all the essentials: store policies, customer service standards, and how to use the POS system. Make sure your new hires know your products inside and out so they can help customers with confidence. Incorporate role-playing scenarios to get them ready for real-life interactions.

12. Launch your consignment store

Pick a launch date that gives you plenty of time to plan and promote. Ideally, aim for a weekend or during a local event, when foot traffic is high.

Send out invites and teasers to your email list, and consider placing ads in local newspapers and online forums. Then, start building anticipation on Instagram and Facebook with sneak peeks, special offers, and event announcements. 

View this post on Instagram A post shared by Buffalo Rouge Brewing Co. (@buffalo.rouge.brewing)

You can also invite local influencers, bloggers, and media outlets to your launch for more exposure.

Then, for launch day excitement, consider these grand opening ideas to make your event lively and engage the crowd:

• Special discounts: Offer exclusive launch-day discounts or promotions to encourage purchases.
• Event activities: Host engaging activities like live music, raffles, a fashion show, or DIY workshops to create a festive atmosphere.
• Refreshments and décor: Provide light refreshments and decorate your store to create a welcoming, celebratory environment. A photo booth or themed backdrop can also make for memorable customer photos.

Make sure your team is ready for the big day. Brief them on their roles, customer service expectations, and any special promotions. Encourage them to engage with customers and create a warm, welcoming atmosphere.

💡 Tip: After the launch, follow up with attendees via email or social media to thank them for coming. Offer a special discount or promotion for their next visit to keep the momentum going.

Tips for starting specialty consignment shops

Starting a specialty consignment shop can be exciting, but it takes some smart planning. Here are some tips to help you get started on the right foot:

Know your consignment shop types

Consignment shops come in many varieties—children’s clothing, crafts, sneakers, bridal wear, and general apparel, to name a few. 

Understanding these types can help you find your niche and tailor your business to meet specific customer needs. Specializing in a particular type of consignment can attract a loyal customer base and make your shop stand out.

Build strong relationships with consignors

Consignors provide your inventory, making them key to your success. Building strong, positive relationships with them ensures a steady flow of high-quality merchandise.

• Consignment agreements: Create clear, fair agreements outlining commission rates, payment schedules, pricing strategies, and policies for unsold items.
• Communication: Keep in regular contact with consignors. Post-launch, keep them updated on sales performance and share feedback on how their items are selling.
• Incentives: Offer incentives, like higher commission rates for high-demand items or bonuses for referrals. This can motivate consignors to provide better quality items and recommend your shop to others.

Set the right prices and profit margins

Getting your pricing right is key to your shop’s profitability. Here’s how to approach it:

• Market research: Do thorough market research to understand the pricing of similar items in your area. Visit other consignment shops, research online, and consider local economic conditions.
• Condition and brand: Price items based on their condition, brand, and demand. High-quality, well-known brands can command higher prices, while lesser-known or more worn items should be priced lower.
• Profit margins: Calculate your profit margins to ensure they cover your operating costs and provide a sustainable income. Take into account the consignment split and any additional costs, such as cleaning or minor repairs.

Handle the legal and financial stuff

Before opening your doors, get familiar with the legal and financial aspects of running a business. You’ll need the right licenses and permits, an understanding of local regulations, and compliance with tax requirements. 

Don’t forget insurance to protect your business and inventory. We recommend consulting a financial adviser to create a solid budget and financial plan.

Become the successful consignment shop owner you can be

With thoughtful planning, attention to detail, and a passion for your niche, you can successfully launch and grow your consignment shop. Use a reliable POS system to keep things running smoothly, build solid relationships with consignors, and offer top-notch customer service. Your dedication will pave the way for a thriving consignment business.

How to start a consignment shop FAQ

What are the top consignment items to sell.

The bestselling consignment items are high-quality clothing, designer handbags, vintage jewelry, and children’s toys.

How do I make my consignment shop profitable?

• Offer quality and unique items.
• Set fair prices.
• Market your store and products well, online and offline.
• Provide excellent customer service.

How does consignment make money?

As the consignee, you make money by selling items on behalf of consignors and taking a percentage of the sale price as a commission. Your profit comes from the difference between the sale price and the payout to the consignor.

How do I find consignors for my consignment shop?

Leverage your personal network, promote on social media, and advertise locally. Attend community events and offer referral incentives to attract more consignors.

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How to Write a Business Plan for a Consignment Shop

• Small Business
• Business Planning & Strategy
• Write a Business Plan
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How to Write a Business Plan for Retail Designer Hats

How to open an old-fashioned general store, how to sell my flower shop.

• How to Write a Business Plan for a Convenience Store
• How to Start a Consignment Resale Shop Business

Starting your own business is one of the best ways to grow your wealth and achieve your dreams. Opening a consignment store can be an excellent business move for the right individual, but before you open your doors you need to know how to write a business plan for a consignment shop. The business plan defines the scope of your business, lays out how you are prepared to succeed and details the relevant experience you bring to the new venture.

Business Plan Template

Microsoft Office has some excellent templates available for free downloads. Other popular office suites also include templates that can be customized to create business plans. If you wish to complete your business plan the old-fashioned way, you can obtain business plan templates from your local Chamber of Commerce or from the Small Business Administration office in your area. Financial books at the library and bookstore are also good sources of business plan information and examples.

List Your Business Experience

Make a list of your experience in the retail business. You can make this list mentally, but it is often helpful to get it down on paper. Include all experience you have with buying and selling the type of items you plan to offer at your consignment store, including time spent as a sales clerk or buyer.

In order to be successful, the owner of a consignment clothing store, for example, needs to have a discerning eye and the ability to pick up on new trends in the fashion industry. Likewise, the owner of a consignment furniture or accessories store needs to be able to spot the trends and buy the furniture that is most likely to sell quickly.

Executive Summary and How to Differentiate the Business

This section should state the purpose of the business, including the proposed name of the operation. The section that follows should state how the store will differentiate itself from the competition, that is, what makes your consignment store different from the thrift store down the street. Offering types of products not normally found in the second-hand market can be a big help.

Marketing and Promotion Strategy

How will you advertise your consignment store? What techniques do you plan to use? It is important for lenders and others who review your business plan to see how you intend to market your business and introduce it to the community.

Organization and Management

Provide information about the ownership of the new business, including the names and titles of all business partners and officers. Also provide a brief but thorough overview of the start-up company. The overview should include details about the products the store will sell, where it will get its merchandise and where it will be located.

List your management experience, focusing on experience that is relevant to the consignment business world. List the number of years of management and relevant retail experience you bring to the new enterprise.

Service or Product Line

List the types of products the consignment store will offer. Many consignment retailers limit their product lines to high-end designer clothing and accessories, for example, in an effort to attract a wealthier and more discriminating clientele. Provide a brief overview of the products you already have in stock, as well as your plans for obtaining quality merchandise on consignment.

Market and Competitive Analysis

Include information on any market analysis you have completed, including details about any existing consignment stores. Compare your new business model to the stores that already exist in the community, and explain how your operation will improve on that model.

Financial Projections and Related Information

Provide relevant financial information for your start-up company, including any partnership arrangements you have entered into and any loans you have obtained. Attach statements from your CPA or accountant if applicable.

Things You Will Need

Computer (optional)

Business plan template

• Bplans.com: Women's Clothing Boutique Sample Business Plan
• SBA.gov: Write Your Business Plan
• Microsoft Office: Business Plan for Startup Business

Based in Pennsylvania, Bonnie Conrad has been working as a professional freelance writer since 2003. Her work can be seen on Credit Factor, Constant Content and a number of other websites. Conrad also works full-time as a computer technician and loves to write about a number of technician topics. She studied computer technology and business administration at Harrisburg Area Community College.

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How To Write a Vintage Furniture Resale Store Business Plan: Checklist

By henry sheykin, get full bundle.

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Welcome to Vintage Haven, the ultimate destination for vintage furniture enthusiasts! As the demand for sustainable and aesthetically pleasing home decor continues to rise, the vintage furniture resale industry is thriving. According to recent statistics, the vintage resale market is projected to reach a value of $33 billion by 2024, with a compound annual growth rate of 12%. With such promising prospects, it's no wonder that starting a vintage furniture resale store is an attractive business venture. In this blog post, we will guide you through the essential steps of creating a business plan for your very own Vintage Haven.

Conduct Market Research: Before diving into your business plan, it's crucial to gather extensive market research. Understand the current trends, consumer preferences, and the overall demand for vintage furniture in your target market.

Identify Target Audience: Define your ideal customer base. Are you catering to vintage enthusiasts, interior designers, or a specific demographic? Knowing your target audience will help you tailor your marketing strategies and product offerings.

Analyze Competition: Study your competitors to identify their strengths, weaknesses, and unique selling propositions. This analysis will assist you in differentiating your store and positioning yourself within the market.

Determine Pricing Strategy: Set strategic pricing for your products. Consider factors such as the quality of the furniture, rarity, condition, and market demand when determining the optimal pricing structure.

Create a Marketing Plan: Establish a comprehensive marketing plan to effectively reach your target audience. Utilize various channels, such as social media, online advertising, and collaborations with local influencers, to increase brand visibility and attract customers.

Establish a Sourcing Strategy: Develop relationships with reliable suppliers, estate sales, auctions, and other vintage furniture sources. Ensure a consistent and high-quality inventory by exploring different avenues for acquiring unique pieces.

Calculate Startup Costs: Determine the initial investment required for starting your Vintage Haven. Consider expenses such as store rent, renovation, inventory, equipment, staffing, and marketing. Accurate financial planning is crucial for a successful launch.

Secure Financing Options: Explore various financing options, such as small business loans, investors, or personal savings. Choose the most suitable option that aligns with your financial goals and risk tolerance.

Identify Suitable Location: Select a prime location for your store that is easily accessible and attracts your target audience. Consider factors such as foot traffic, parking availability, and proximity to complementary businesses.

With these essential steps, you are well on your way to creating a comprehensive business plan for your Vintage Haven. Stay tuned for our upcoming blog posts, where we will delve deeper into each of these steps, helping you navigate the vintage furniture resale industry with confidence.

Conduct Market Research

Before diving into the intricacies of writing a business plan for your vintage furniture resale store, it is crucial to conduct thorough market research. This step will provide you with valuable insights into the industry, identify trends and opportunities, and help you make informed decisions.

1. Identify the demand: Begin by understanding the demand for vintage furniture in your target market. Look for indicators such as the number of vintage furniture stores in the area, online searches for vintage furniture, and the presence of vintage-themed events or fairs. This data will help you gauge the potential market size and demand for your offerings.

2. Define your target audience: Determine your ideal customers based on their demographics, preferences, and lifestyle. Are you targeting homeowners, interior designers, or collectors? Understanding your target audience will help you tailor your offerings and marketing efforts to suit their needs.

3. Analyze consumer behavior: Study consumer behavior patterns and preferences when it comes to vintage furniture. This includes understanding the factors that influence their purchase decisions, their preferred styles and eras, and their budget ranges. This information will assist you in curating a collection that aligns with their tastes and needs.

• Attend vintage furniture auctions or fairs to get a firsthand experience of buyer preferences and trends.
• Engage with online vintage furniture communities and forums to gain insights from passionate enthusiasts.
• Use market research tools and surveys to gather data on customer preferences and behaviors.

By conducting thorough market research, you lay the foundation for a successful vintage furniture resale store. This step will help you identify your target audience, stay ahead of industry trends, and make informed decisions when it comes to sourcing, pricing, and marketing. So, invest your time and resources in this crucial step to set yourself up for success in the vintage furniture industry.

Identify Target Audience

Identifying your target audience is an essential step in creating a successful business plan for your vintage furniture resale store. Understanding who your customers are and what they want will enable you to tailor your offerings and marketing strategies to meet their specific needs. Here are some key factors to consider when identifying your target audience:

• Demographics: Start by considering the age, gender, and income level of your potential customers. Are they young professionals looking to furnish their first homes, or are they affluent individuals with a passion for vintage furniture? Understanding the demographic profile of your target audience will help you determine the types of furniture and price points that will appeal to them.
• Lifestyle and Interests: Think about the lifestyle and interests of your target audience. Are they environmentally conscious individuals who prioritize sustainability? Do they have a fondness for the timeless elegance of vintage pieces? Knowing these aspects will help you curate a collection that resonates with their preferences.
• Location: Consider the geographic location of your target audience. Are they local residents or tourists visiting your area? Understanding where your potential customers are located will help you determine the most appropriate location for your store and tailor your marketing efforts accordingly.
• Behavior and Buying Patterns: Analyze the behavior and buying patterns of your target audience. Do they prefer to shop online or in-store? Are they impulse buyers or do they conduct extensive research before making a purchase? Understanding these patterns will allow you to create a shopping experience that aligns with their preferences.

Tips for Identifying Your Target Audience:

• Conduct surveys or interviews with potential customers to gather valuable insights.
• Utilize social media platforms and analytics tools to analyze the interests and demographics of your online followers.
• Research industry reports and trends to gain a deeper understanding of the preferences of your target audience.
• Visit local vintage furniture fairs, events, or markets to observe and interact with potential customers.
• Stay informed about emerging trends in sustainable living and interior design to attract a broader customer base.

By identifying your target audience, you can shape your business plan to effectively address their needs, preferences, and buying behaviors. This understanding will not only attract potential customers but also help you build long-term relationships and establish your vintage furniture resale store as a trusted provider of unique and sustainable home decor.

Analyze Competition

Before entering the vintage furniture resale market, it is crucial to thoroughly analyze the competition to gain a comprehensive understanding of the industry landscape. By studying the strategies and offerings of existing businesses, you can identify opportunities to differentiate your store and capitalize on unmet customer needs.

Start by researching other vintage furniture resale stores in your area and online. Visit their physical locations, browse their websites, and examine their social media presence. Take note of their selection, pricing, branding, and overall customer experience.

Key points to consider when analyzing the competition:

• Identify the unique selling points and value propositions of your competitors.
• Understand their target audience and how they position themselves in the market.
• Analyze their pricing strategies to determine your own pricing approach.
• Take note of any gaps in their product offerings or areas where they might be lacking.
• Identify potential collaborations or partnerships with complementary businesses.
• Visit trade shows, antique fairs, and vintage markets to observe trends in the industry and see what your competition is showcasing.
• Consider reaching out to other vintage furniture resale store owners for insight and advice. They may be willing to share their experience and offer guidance.
• Take note of customer reviews and feedback about your competition to understand their strengths and weaknesses from a customer perspective.

By conducting a thorough analysis of your competition, you can gain insights that will inform your own business strategy and help you stand out in the marketplace. Use this knowledge to differentiate your store, identify areas for improvement, and create a unique value proposition that resonates with your target audience.

Determine Pricing Strategy

Determining the right pricing strategy for your vintage furniture resale store is crucial to ensure profitability and competitiveness in the market. Here are some key factors to consider when determining your pricing strategy:

• Cost of Acquisition: Calculate the cost of acquiring each vintage furniture piece, including the purchase price, transportation costs, and any necessary restoration or repair expenses. This will give you a baseline for setting your selling price.
• Market Demand: Analyze the demand for vintage furniture in your target market. Consider factors such as customer preferences, trends, and the availability of similar products. Adjust your pricing strategy accordingly to meet the expectations of your target audience.
• Value and Rarity: Assess the uniqueness, rarity, and overall aesthetic value of each vintage furniture piece. Items that are considered rare or have high historical value may justify a higher price point. Similarly, pieces that have been meticulously restored or are in pristine condition can also command higher prices.
• Competitive Analysis: Research your competitors' pricing strategies to gain insights into the current market rates for vintage furniture. Compare the quality, condition, and additional services offered by your store to determine how your prices should be positioned in relation to your competition.
• Profit Margin: Determine the profit margin you aim to achieve for each vintage furniture piece. Consider the total costs involved, such as overhead expenses, marketing expenses, and employee salaries. The profit margin should give you a reasonable return on investment while ensuring the sustainability of your business.
• Consider offering a range of price points to cater to different customer budgets and preferences.
• Regularly review and adjust your pricing strategy based on market trends, customer feedback, and the performance of individual products.
• Offer competitive pricing promotions or discounts during slower periods to attract customers and increase sales.

Create A Marketing Plan

In order to successfully promote and grow your vintage furniture resale store, it is essential to create a comprehensive marketing plan. This plan will outline how you will attract customers, raise awareness about your business, and ultimately drive sales. Here are the key steps to creating an effective marketing plan for your Vintage Haven store:

• Define your target audience: Identify the specific demographics, interests, and preferences of your ideal customers. Understanding who your target audience is will help you tailor your marketing efforts to reach them effectively.
• Set marketing goals: Clearly define your objectives and what you want to achieve through your marketing efforts. Examples of goals could be increasing brand awareness, driving online traffic, or boosting sales.
• Research your competition: Analyze what your competitors are doing in terms of marketing and identify areas where you can differentiate yourself. This will help you position your store uniquely in the market.
• Develop a branding strategy: Create a strong brand identity that reflects the unique value proposition of Vintage Haven. This includes designing a compelling logo, choosing brand colors, and establishing consistent brand messaging.
• Choose marketing channels: Determine the most effective channels to reach your target audience. This can include a mix of online platforms like social media, email marketing, and a well-designed website, as well as offline tactics such as local events, partnerships, and word-of-mouth.
• Create a content strategy: Develop engaging and informative content that resonates with your target audience. This can be in the form of blog posts, videos, or social media posts that showcase your unique furniture pieces, restoration process, and the stories behind the vintage finds.
• Implement promotional campaigns: Plan and execute targeted promotional campaigns to generate excitement and attract customers. These can include seasonal discounts, limited-time offers, or collaborations with influencers or local businesses.
• Measure and analyze results: Regularly track the performance of your marketing efforts to determine what strategies are working and what needs improvement. Use analytics tools to measure website traffic, social media engagement, and conversion rates.
• Consider offering special incentives, such as referral programs or loyalty rewards, to encourage customer loyalty and word-of-mouth promotion.
• Engage with customers on social media by responding to comments, sharing user-generated content, and hosting contests or giveaways.
• Collaborate with local influencers or interior designers who align with your brand values to expand your reach and credibility.
• Monitor industry trends and stay updated on popular design styles and home decor preferences to ensure your marketing efforts remain relevant to your target audience.

Establish A Sourcing Strategy

One of the key aspects of running a successful vintage furniture resale store is establishing a strong sourcing strategy. It is crucial to have a reliable and consistent supply of unique and high-quality vintage furniture pieces to meet the demands of your customers. Here are some important steps to consider when establishing your sourcing strategy:

• Research: Conduct thorough research to identify potential sources for vintage furniture. This can include estate sales, auctions, flea markets, online platforms, and even networking with other vintage dealers.
• Build Relationships: Connect and build relationships with individuals and organizations in the vintage furniture industry. This can include antique dealers, collectors, estate sale organizers, and furniture restorers. These relationships can provide valuable insights and leads for sourcing unique pieces for your store.
• Quality Control: Ensure that the furniture pieces you source meet your store's quality standards. Inspect each piece for any damages, structural issues, or signs of wear and tear. Consider partnering with expert furniture restorers to address any necessary repairs or restoration to maintain the integrity and value of the pieces.
• Diversify Sources: Don't rely on a single source for your inventory. Explore different channels and suppliers to widen your range of available vintage furniture. This can help you curate a diverse collection that appeals to a wider range of customers.
• Budget Management: Establish a budget for sourcing vintage furniture and ensure that it aligns with your overall business plan. Set realistic expectations for the cost of acquiring inventory, including transportation, restoration, and any associated fees. Monitor your spending regularly to maintain profitability.

Tips for Establishing a Successful Sourcing Strategy:

• Attend antique fairs and trade shows to establish connections with dealers and discover new sources for vintage furniture.
• Utilize online platforms and social media to connect with individuals or businesses selling vintage furniture.
• Consider partnering with local furniture makers or artisans to create custom pieces that complement your vintage collection.
• Stay updated with current trends and popular styles in the vintage furniture market to ensure that your inventory remains relevant and appealing to customers.
• Regularly assess and reassess the profitability and demand of your inventory to make informed sourcing decisions.

Calculate Startup Costs

One of the crucial steps in starting a vintage furniture resale store is determining the startup costs involved. By accurately calculating your expenses, you can plan your finances and ensure that you have enough capital to cover all necessary aspects of your business.

Here are some key factors to consider when calculating your startup costs:

• Inventory: Determine the initial cost of acquiring vintage furniture pieces for your store. Research prices, estimate the number of items you plan to stock, and factor in any costs associated with cleaning, restoration, or customization.
• Storefront: If you decide to have a physical store, include expenses such as rent, security deposits, utilities, and any renovations or modifications required.
• Equipment: Consider the tools and equipment needed for restoration work, such as sanders, paint supplies, hardware, and any specialized machinery. Include the cost of purchasing or leasing these items.
• Marketing: Set aside a budget for advertising and promoting your vintage furniture resale store. This may include creating a website, running social media campaigns, printing business cards or brochures, and participating in local events or fairs.
• Staffing: Determine the costs associated with hiring and training employees, including wages, benefits, and payroll taxes.
• Legal and Licensing: Research the fees for business licenses, permits, and any legal services you may need to ensure compliance with local regulations.
• Insurance: Consider the cost of obtaining appropriate insurance coverage for your store, including general liability insurance and property insurance for your inventory.
• Technology: Assess the expenses related to setting up a point-of-sale system, inventory management software, and other essential technological infrastructure.
• Contingency: It's wise to allocate a portion of your budget for unexpected expenses or unforeseen circumstances that may arise during the startup phase of your business.

Startup Cost Tips:

• Research and compare prices from different suppliers to find the best deals and negotiate for bulk discounts.
• Consider purchasing used equipment or furniture displays to reduce costs.
• Consult with a financial advisor or accountant to ensure that you have accounted for all possible expenses and estimated them accurately.
• Keep track of your startup costs meticulously for future reference and to assist in securing financing if needed.

Secure Financing Options

Securing financing is a crucial step in starting a vintage furniture resale store, as it will provide you with the necessary capital to kickstart your business operations. Here are some important points to consider when exploring financing options:

• Evaluate your financial needs: Start by assessing how much capital you will need to start your vintage furniture resale store. Consider expenses such as purchasing inventory, leasing a space, hiring staff, marketing efforts, and any other operational costs.
• Explore traditional financing options: Traditional financing options include bank loans, credit lines, or borrowing from friends and family. Conduct thorough research to understand the terms, interest rates, and repayment schedules associated with each option. Prepare a comprehensive business plan and financial projections to present to potential lenders.
• Consider alternative sources of funding: In addition to traditional financing, consider alternative sources such as angel investors, crowdfunding platforms, or grants provided by organizations supporting sustainable businesses or the arts. These options may require additional effort and documentation, but they can provide unique opportunities for funding.
• Investigate small business loans: Look into small business loan programs offered by government agencies or local organizations that support entrepreneurship. These loans often come with favorable interest rates, flexible repayment terms, or even mentorship programs to assist new business owners.
• Explore partnerships: Consider forming partnerships with investors or other businesses in the home decor or design industry. Exploring mutually beneficial partnerships can provide both financial support and opportunities for collaboration and cross-promotion.

Tips for Securing Financing Options:

• Create a compelling business plan, including detailed financial projections, to showcase the potential profitability and viability of your vintage furniture resale store.
• Prepare a strong pitch or presentation to effectively communicate your business idea, market potential, and competitive advantage to potential lenders or investors.
• Consider seeking guidance from business advisors or consultants with expertise in financing options for small businesses.
• Research and understand the terms and conditions associated with each financing option, ensuring they align with your business goals and financial capabilities.
• Keep a track record of your financial transactions, as it will help build credibility and demonstrate your ability to manage finances responsibly.

Securing financing may require time, effort, and persistence. Be prepared to present your business plan, answer questions, and negotiate terms to secure the best financing option for your vintage furniture resale store.

Identify Suitable Location

Consider the target demographic: When choosing a location for your vintage furniture resale store, it is crucial to consider your target audience. Research the demographics of the area and ensure that it aligns with your ideal customer profile. Look for neighborhoods or areas with a high concentration of individuals who appreciate vintage aesthetics and are willing to invest in sustainable and unique home decor pieces.

Assess foot traffic and visibility: The visibility and accessibility of your store are key factors that can significantly impact your business's success. Look for a location that experiences a steady flow of foot traffic, particularly in shopping districts or areas with high tourist activity. This will increase the chances of attracting potential customers and generating sales.

Evaluate competition and complementary businesses: While it's important to have competition, be cautious not to choose a location oversaturated with similar businesses. Conduct thorough research to identify the presence of other vintage furniture stores in the area and assess their market positioning and offerings. Additionally, consider locating near businesses that can complement your store, such as interior design studios or other home decor retailers. This can create synergy and enhance the overall shopping experience for customers.

Consider lease terms and costs: Before finalizing a location, carefully review lease terms and associated costs. Calculate the monthly rent in proportion to your projected sales and revenue to ensure it is financially viable for your business. Assess additional expenses such as utilities, maintenance, and insurance to have a comprehensive understanding of the total costs.

Tips for choosing the perfect location:

• Visit potential locations at different times of the day to gauge foot traffic and overall activity in the area.
• Seek guidance from a commercial real estate agent who specializes in retail spaces to assist in identifying suitable locations.
• Consider the availability of parking options for customers, especially if your store will be located in a busy urban area.
• Research any zoning regulations or restrictions that may affect operating a retail business in the desired location.
• Take into account future growth opportunities and potential for expansion in the chosen area.

Conclusion:

In conclusion, writing a business plan is crucial for the success of a vintage furniture resell store like Vintage Haven. By following the nine steps outlined in this checklist, entrepreneurs can ensure they have a solid foundation for their business, from understanding their target market and competition to securing financing and finding the perfect location. With careful planning and a focus on providing high-quality pieces and exceptional customer service, Vintage Haven has the potential to become a sought-after destination in the vintage furniture market.

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Here is a free business plan sample for a furniture shop.

Are you passionate about interior design and eager to launch your own furniture retail business but unsure where to start?

In the following paragraphs, we will guide you through a comprehensive business plan tailored for a furniture retail store.

As an aspiring entrepreneur, you're likely aware that a strategic business plan is crucial for laying the foundation of a successful venture. It serves as a roadmap, outlining your business objectives, market analysis, and operational strategies.

To jumpstart your planning process with ease and precision, you can utilize our furniture retail business plan template. Our team is also available to provide a free review and offer feedback on your completed plan.

How to draft a great business plan for your furniture retail store business?

A good business plan for a furniture retail store must cater to the unique aspects of selling home furnishings and decor.

Initially, it's crucial to provide a comprehensive overview of the furniture market. This should include current statistics and also pinpoint emerging trends in the industry, as illustrated in our furniture retail business plan template .

Then, articulate your business concept effectively. This encompasses your vision, identifying your target market (such as homeowners, interior designers, or real estate developers), and the distinctive positioning of your furniture store (luxury, budget-friendly, custom designs, etc.).

The subsequent section should delve into market analysis. This requires a thorough understanding of local competitors, industry trends, and consumer buying habits.

For a furniture retail business, particular emphasis should be placed on the product selection you plan to carry. Detail your product lines - sofas, dining sets, bedroom furniture, decorative items - and discuss how they cater to the preferences and requirements of your target customers.

The operational plan is equally vital. It should outline the location of your store, the layout of the showroom, supplier relationships for furniture and home accessories, and inventory management practices.

In the furniture retail industry, it is important to highlight the quality and durability of products, the variety of styles offered, and the level of customer service provided.

Then, address your marketing and sales strategy. How will you draw in and keep customers? Consider advertising tactics, customer loyalty programs, and value-added services (such as delivery and assembly).

Adopting digital strategies, like maintaining an e-commerce website or an active social media presence, is also crucial in the modern marketplace.

The financial framework is another critical component. This includes the initial investment, sales projections, operating expenses, and the point at which the business will become profitable.

In a furniture retail store, inventory management is key due to the high cost of goods and the need for space; therefore, it is essential to plan carefully and have a solid grasp of your financials. For assistance, you can refer to our financial forecast for a furniture retail business .

Compared to other business plans, a furniture retail store must pay special attention to aspects such as inventory turnover, delivery logistics, and the potential for custom orders or services.

A well-crafted business plan will not only help the entrepreneur to define their strategy and approach but also to attract investors or secure loans.

Lenders and investors are looking for comprehensive market research, realistic financial projections, and a clear understanding of the day-to-day operations of a furniture retail store.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your enterprise.

To achieve these goals while saving time, feel free to complete our furniture retail business plan template .

A free example of business plan for a furniture shop

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a furniture retail .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market overview and statistics.

The furniture retail industry is a significant segment of the global retail market.

As of recent estimates, the global furniture market is valued at over 500 billion dollars, with projections indicating steady growth in the coming years. This growth is driven by factors such as increasing urbanization, a rise in disposable incomes, and the growing demand for residential and commercial furnishings.

In the United States alone, there are over 25,000 furniture retail establishments, generating an annual revenue of approximately 120 billion dollars. This underscores the critical role furniture retail plays in the American economy and the housing market.

These statistics highlight the robust nature of the furniture retail industry and its potential for continued expansion.

Industry Trends

The furniture retail sector is experiencing several key trends that are shaping the future of the industry.

One of the most significant trends is the increasing consumer preference for eco-friendly and sustainable furniture, reflecting a broader societal shift towards environmental responsibility.

Technological advancements are also influencing the industry, with augmented reality (AR) and virtual reality (VR) being used to offer customers immersive shopping experiences, allowing them to visualize furniture in their own spaces before making a purchase.

Customization and personalization are becoming more prevalent, with consumers seeking unique pieces that reflect their individual style and meet specific needs.

E-commerce continues to grow, with online furniture sales gaining momentum as consumers appreciate the convenience of shopping from home.

Lastly, the demand for multi-functional and space-saving furniture is on the rise, particularly in urban areas where living spaces are often smaller.

These trends are indicative of a dynamic industry that is adapting to the evolving preferences and lifestyles of modern consumers.

Key Success Factors

Several factors contribute to the success of a furniture retail business.

Product variety and quality are paramount. Retailers that offer a wide range of high-quality furniture are more likely to attract and retain a diverse customer base.

Innovative design and customization options can also set a retailer apart in a crowded marketplace.

The location of the retail store plays a critical role, with accessible and high-traffic areas being more conducive to higher sales volumes.

Exceptional customer service is essential for building customer loyalty and encouraging repeat business.

Efficient inventory management and cost control are crucial for maintaining profitability in a competitive industry.

Lastly, embracing current industry trends, such as sustainability and technological integration, is vital for staying relevant and appealing to contemporary consumers.

The Project

Project presentation.

Our furniture retail project is designed to cater to the contemporary consumer seeking stylish, durable, and affordable furniture. Strategically located in a high-traffic shopping district, our store will feature a diverse range of furniture items, from sofas and dining sets to bedroom furniture and home accessories, all crafted to meet the highest standards of quality and design.

We will emphasize the uniqueness, functionality, and aesthetic appeal of our furniture, ensuring that each piece not only complements our customers' living spaces but also enhances their overall lifestyle.

Our furniture retail store aims to become a go-to destination for homeowners and interior designers alike, offering a carefully curated selection that aligns with current trends and timeless styles.

Value Proposition

The value proposition of our furniture retail project lies in providing an exceptional selection of furniture that combines modern design, functionality, and affordability. We understand the importance of creating a home that reflects one's personal style and comfort.

Our commitment to offering a variety of high-quality furniture pieces at competitive prices positions us as a leader in the home furnishing market, catering to the needs of budget-conscious and design-savvy customers.

We are dedicated to enhancing the shopping experience through personalized customer service, design consultations, and a user-friendly online presence, making it easy for customers to find the perfect pieces for their homes.

Our furniture retail store is set to become a cornerstone in the community, providing furniture solutions that make stylish living accessible to everyone.

Project Owner

The project owner is an experienced entrepreneur with a passion for interior design and a keen eye for emerging furniture trends.

With a background in retail management and a strong network within the furniture industry, he is well-equipped to launch a furniture retail store that stands out for its quality, variety, and affordability.

Driven by a vision of furnishing beautiful homes without breaking the bank, he is committed to sourcing furniture that meets the needs of modern consumers, from functionality and comfort to sustainability and innovation.

His dedication to customer satisfaction and his expertise in the furniture market make him the ideal leader for this project, aiming to transform living spaces and enhance the comfort of customers through a superior furniture shopping experience.

The Market Study

Market segments.

The market segments for this furniture retail business are diverse and cater to a wide range of customers.

Firstly, there are homeowners looking to furnish their new or existing homes with stylish and functional pieces.

Secondly, the market includes apartment dwellers seeking space-saving and multi-functional furniture to maximize their living space.

Additionally, there are interior designers and decorators who source furniture for their clients' projects.

Real estate developers and property managers also form a segment, as they often need to furnish show homes and rental properties.

Lastly, businesses and offices require furniture for their workspaces, making them a significant segment of the market.

SWOT Analysis

A SWOT analysis of this furniture retail business highlights several key factors.

Strengths include a wide range of high-quality furniture, a strong online presence, and excellent customer service.

Weaknesses might involve the challenges of maintaining inventory diversity and the logistics of delivering large items.

Opportunities can be found in the growing trend towards home improvement and the increasing demand for eco-friendly and sustainable furniture.

Threats may include the competitive nature of the furniture retail market and the impact of economic downturns on consumer spending.

Competitor Analysis

Competitor analysis in the furniture retail industry indicates a highly competitive environment.

Direct competitors include other furniture stores, both brick-and-mortar and online, as well as large department stores with furniture departments.

These competitors vie for customers by offering a mix of quality, price, and design.

Potential competitive advantages for our business include exclusive collections, personalized customer service, and a strong focus on sustainability and eco-friendly products.

Understanding the strengths and weaknesses of competitors is crucial for carving out a unique market position and for customer acquisition and retention.

Competitive Advantages

Our furniture retail business stands out due to our commitment to offering a diverse selection of quality furniture that caters to various tastes and budgets.

We provide a unique shopping experience through personalized services such as design consultations and custom furniture options.

Our dedication to sustainability sets us apart, as we offer a range of eco-friendly and responsibly sourced products.

Moreover, our robust online platform and home delivery services ensure convenience and accessibility for all our customers, enhancing their overall shopping experience.

You can also read our articles about: - how to open a furniture shop: a complete guide - the customer segments of a furniture shop - the competition study for a furniture shop

The Strategy

Development plan.

Our three-year development plan for the furniture retail business is designed to establish a strong market presence.

In the first year, we aim to build a solid customer base by offering a diverse range of high-quality, stylish furniture that caters to various tastes and budgets. We will also focus on creating a strong online presence and an inviting in-store experience.

The second year will be focused on expanding our product lines, including eco-friendly and locally sourced options, and opening additional showrooms in key locations to increase accessibility for customers.

In the third year, we plan to enhance our customer service by offering interior design consultations and custom furniture options, further differentiating our brand in the market.

Throughout this period, we will prioritize customer satisfaction, sustainability, and innovative design to stay ahead of industry trends and meet the evolving preferences of our clientele.

Business Model Canvas

The Business Model Canvas for our furniture retail business targets a broad customer segment, including homeowners, renters, and interior designers looking for quality furniture and home decor.

Our value proposition is centered around providing a unique selection of furniture pieces that combine aesthetics, functionality, and affordability. We also emphasize customer service and a seamless shopping experience.

We sell our products through our physical showrooms and an e-commerce platform, utilizing key resources such as our supply chain relationships, inventory management systems, and knowledgeable sales staff.

Key activities include inventory curation, sales, and customer service.

Our revenue streams are generated from the sales of furniture and related home accessories, while our costs are mainly associated with purchasing inventory, marketing, and operations.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on showcasing the quality and design of our furniture collections.

We plan to engage customers through immersive showroom experiences, interactive online platforms, and targeted advertising campaigns. We will also collaborate with interior design influencers and leverage social media to showcase our products in real-life settings.

Customer loyalty programs and seasonal promotions will be implemented to encourage repeat business and attract new customers.

Finally, we will participate in industry trade shows and community events to increase brand visibility and network with potential business partners.

Risk Policy

The risk policy for our furniture retail business focuses on mitigating risks associated with inventory management, supplier reliability, and market fluctuations.

We will implement robust inventory tracking and forecasting systems to prevent overstocking or stockouts. Building strong relationships with reliable suppliers will ensure consistent product quality and availability.

Our financial strategy includes careful budgeting and cost control measures to maintain healthy cash flow and profitability.

We will also secure comprehensive insurance coverage to protect against potential liabilities related to product warranties and customer service issues.

Why Our Project is Viable

We believe in the potential of our furniture retail business to meet the growing demand for quality, stylish, and affordable home furnishings.

With a focus on customer experience, sustainability, and design innovation, we are poised to capture a significant share of the market.

We are committed to adapting to consumer trends and market dynamics to ensure the long-term success of our business.

We are enthusiastic about the opportunity to enhance living spaces and look forward to the prosperous growth of our furniture retail venture.

You can also read our articles about: - the Business Model Canvas of a furniture shop - the marketing strategy for a furniture shop

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a furniture retail and our financial plan for a furniture retail .

Initial expenses for our furniture retail business include leasing a showroom space in a prime location, acquiring a diverse inventory of quality furniture pieces, investing in an efficient inventory management system, hiring knowledgeable sales staff, and costs related to brand creation and launching targeted marketing campaigns to reach our target demographic.

Our revenue assumptions are based on a thorough market analysis of consumer trends in home furnishings, taking into account the increasing interest in home decor and the demand for both luxury and affordable furniture options.

We anticipate a steady growth in sales, starting with a strong grand opening and building as our brand recognition and reputation for quality furniture and customer service strengthen.

The projected income statement indicates expected revenues from our furniture sales, cost of goods sold (purchase price of inventory, shipping, handling), and operating expenses (rent, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our furniture retail business.

The projected balance sheet reflects assets specific to our business, such as showroom fixtures, furniture inventory, and liabilities including loans and accounts payable.

It shows the overall financial health of our furniture retail business at the end of each fiscal period.

Our projected cash flow budget details the inflows from sales and outflows for inventory purchases and operating costs, allowing us to anticipate our cash needs throughout the year. This will enable us to manage our finances effectively and maintain a healthy cash reserve.

The projected financing plan outlines the specific financing sources we plan to use to cover our startup and operational expenses, such as bank loans, investor capital, or vendor credit terms.

The working capital requirement for our furniture retail business will be closely monitored to ensure we have the necessary funds to support our day-to-day operations, including inventory procurement, sales promotions, and staff wages.

The break-even point specific to our project is the level of sales needed to cover all our costs, including initial investments, and begin generating a profit.

It will signal when our business is on the path to financial sustainability.

Performance indicators we will track include the inventory turnover rate to measure the efficiency of our stock management, the gross profit margin to assess the profitability of our sales, and the return on investment to evaluate the effectiveness of the capital invested in our furniture retail business.

These indicators will assist us in gauging the financial performance and overall success of our venture.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a furniture shop .

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How to Start a Consignment Store

Mar 31, 2022

Why Consignment?

So you want to start a consignment store. You've made a great choice!

In 2018, 60% of Americans dreamed of owning their own business . And consignment stores are some of the simplest to set up---and some of the most ethical:

Up-front costs are minimal.

You don't have to spend time shopping for inventory.

You help keep money in your local community.

You're part of a greener, more sustainable approach to shopping.

And now is one of the best times to start a consignment business. Consignment is a form of resale, and the resale market is growing 11 times faster than traditional retail . In fact, it's estimated that the resale market will be worth $84 billion by 2030 . 

In this article, you'll discover what to do before you launch your business. You'll learn how to perform market research, how to classify your business, what software and platforms you should use, and more. And as we write other best-practices articles moving forward, we'll link to them in the relevant sections in this article. So feel free to bookmark this page and use it as a reference for future reading.

What to do before launching your store

We're going to cover a lot of topics here, and each one is going to require some thought and consideration before you take action on it. If you're just starting the process of launching your store, we recommend starting at the beginning, with the section "Market Research." If you're already part of the way through the process, you can simply jump to the topics you still need to tackle. The topics we'll cover are:

Market research

Your business model

Online-specific considerations

Strategic best-practices

Consignment software

Business structure and compliance

Choosing what to sell

Telling your business' story

Market research allows you to understand your market and potential customers' needs and desires. With this knowledge, you'll be able to create a business that puts your inventory in front of the people most likely to buy.

We recommend working through the following questions, adapted from the U.S. Small Business Association :

Demand: Is there a desire for a consignment store?

Market size: How many people would be interested in patronizing your store?

Economic indicators: What is the income range and employment rate of your potential customers?

Location: Where do your potential customers live and where can your business reach?

Market saturation: How many other consignment stores are already available to your potential customers?

Pricing: What do your potential customers pay at other stores? Do other consignment stores have higher or lower prices than you?

As an example, let's look at market saturation. If there are a lot of consignment stores in your area, it likely means that there's high demand, so your store may have a good chance of success. But it could also mean that the market is oversaturated. How long do most consignment businesses last in your area? If most go out of business within their first couple years, chances are that a bricks and mortar (B&M) store isn't a great idea. An online store, however, can reach far beyond local market saturation. Today, an online store can reach every potential customer in the country, so online may be a viable option even when B&M is not.

By looking at market saturation and other market research elements, you can inform this and other critical business decisions. So as you work through these questions, take your time and put in the work to research your answers.

Choose your business model

You have two major decisions to make regarding your business model:

Consignment vs. buy-outright

Bricks and mortar vs. online

Buy-outright is exactly what it sounds like. When people bring you their items, you buy the items from them, making you the outright owner. Once each item sells, you keep 100% of the profit. Consignment, on the other hand, is a little different. When someone consigns an item with you, they retain ownership of the item until it sells through your store. Once the item sells, you (the store owner) keep a portion of the money from the sale as a commission. So this question essentially boils down to this: do you want people to consign their items with you, or do you want to buy their items from them up front? 

There are pros and cons for each model. The main benefit of buy-outright is you don't have to set up consignor accounts or manage consignor balances. This simplifies your inventory management and keeps overhead low by minimizing your administrative and record-keeping work. But if you find a problem with an item after you buy it, you can't return it to the original owner. Buy-outright also requires a lot more money up front. You won't have inventory until you buy enough items to stock your merchandise floor or website.

With consignment, you don't pay the consignor until after the sale. This means you don't need any money at all to stock your store. Consignment also usually leaves the original owner of each item liable for damaged goods (assuming you've included this as a term in your consignor agreement), which puts less financial risk on you. You'll learn more about this in the "Business Structure & Compliance" section.

Consignment also allows the original owner of the item to earn more money. Many people start consignment stores so they can help out their friends, family, and local community. If you want your business to be service-oriented this way, consignment may be the best option for you.

You can also adopt a hybrid model, combining buy-outright, retail, and consignment inventory, depending on your particular inventory mix. It's also common to invert the consignment model, renting out your space out to vendors who manage their own inventory.  We'll cover hybrid models in more depth in a later article.

Once you've decided between consignment and buy-outright, it's time to choose between bricks and mortar and online. Do you want to have a physical storefront, or would you prefer to run an online business?

A B&M store allows you to build a stronger presence in your community. If you have an inviting physical location, people are more likely to develop store loyalty. It's also easier to creatively display your merchandise. But, similar to buy-outright, a B&M location requires more money up front---rent, utilities, and insurance aren't cheap. You're also more restricted in your schedule. If you have a physical store, you have to set business hours, and you (or your employees) have to be there during those hours.

An online store, on the other hand, requires little to no money to start. You can start selling on Facebook Marketplace or eBay at little to no cost. The only costs involved are incurred when it's time to ship items to customers. An online store also gives you more freedom to set your own work schedule and attend to other responsibilities as needed.

In summary, there's no universally right or wrong business model. You can build an online buy-outright store, or start a B&M consignment store (and vice versa). You can even run a B&M store that eventually expands into the online market, or start online and open a B&M location when you have the money. The best model is simply the one that best fits you, your current situation, and your long-term business goals.

If you've decided to run an online store, you'll generally have an easier time starting your business. But there are a couple of things you need to invest in to make sure that you don't have any hiccups when it's time to sell and ship items.

In terms of equipment, you'll need a printer and a scale. The printer will let you print off shipping labels, and the scale will be used for weighing packages, which must be done before you print your shipping label.

You'll also need a place to store your inventory when people bring it to you. At first, you might not need a ton of space since your first consigners will probably be limited to family and close friends. Depending on how much stuff they're trying to get rid of, a garage or spare room should be enough for you to get started. You'll also need an inventory and consignor management system. We'll cover this more in-depth in the "Consignment Software" section of this article.

The next task is to choose your selling platform. Nine times out of 10, your best bet is to sell on eBay. The main reason for this is that when most people shop online, they look at eBay first. eBay also has a deal with Google so that their items come up in the top search results when you Google that item, so listing your item on eBay will ensure that it's put in front of the largest possible audience. But there are lots of other options, like your own website  hosted on Shopify, Poshmark, Facebook Marketplace, and many others. A good way to start might be to list on eBay first and your website second (if you have one), and then expand into another platform.

The last major consideration is that when you ship an item, you have two primary options for covering the cost of shipping. The first option is to absorb the cost. That means that you cover the costs of shipping before you send the consignor their share of the profit. In other words, the consignor's percentage is calculated from what's left over after you've replaced shipping costs with money from the sale. The second option is to partially or entirely charge the consignor for shipping costs through surcharges.

3 strategic best-practices

While the best-practices you're about to discover aren't the only ones you should adopt, we think they're the most important. So starting with these will put your business in a strong position to enjoy early success, which you can then build on over time.

First, a business plan is the most important strategic tool in an entrepreneur's toolkit. It's easy to think of it as something that you only need if you're pitching investors, but even if you're a solo entrepreneur or a partnership, developing a business plan forces you to think through the nitty-gritty details of your business and establish benchmarks for success. No battle plan survives contact with the enemy, but being able to compare your business plan with reality is a key way to look at your business from an objective perspective while you're busy with daily operations.

Additionally, people often fall into the 'sunk cost' fallacy when it comes to their own business. They're so heavily invested, both financially and emotionally, that without objective, outside benchmarks, it can be difficult to tell whether the business is functioning well.

Second, if you're a consignment store (as opposed to buy-outright), you'll need to determine your consignor terms, such as percentage split, length of consignment period, and fees. You can change these terms later, but A) it's much harder to change them later than to get them right the first time, and B) if you don't get them set up right the first time, you may not be in business long enough to adjust them. For an example of consignor terms, you can check out Consignment Chats' resource here .

Third, if you're a B&M store, you need to choose your hours. Small businesses have a reputation for erratic hours. Picking a schedule that works for you and for your customers, then sticking to it, will go a long way toward building a loyal clientele.

Tracking consignors, inventory, and sales takes a lot of work, and if you do it manually, it can consume a substantial amount of time. And the more time you spend in tracking and recording, the less time you have left over for other critical business tasks, like organizing your floor, shipping, and meeting with new consignors.

When you're starting your business, this time matters, so you need to be able to quickly process consignors, inventory, and sales. There's a lot of software on the market that takes the time and effort out of tracking, but picking a platform can be difficult. So here, we'll point out the most important features your software should include.

First, your software should let you easily add new consignor accounts. When someone drops off an item, you don't want to spend 10 minutes adding them to your system. The longer it takes to add a new consignor, the longer it'll take you to process their items and get them on your floor or website.

Second, your software should let you add inventory and connect each item to an individual consignor. You have to make sure that each item is connected to the right consignor so you know who to pay when a certain item sells. If your software lets you easily connect inventory to existing consignor accounts, you can save yourself some future headaches.

Finally, your software should give you insights into the challenges and successes you've had in the past. In the age of Amazon, data helps small shop owners stay competitive and answer questions about their businesses, such as:

How well do electronic products perform compared to other product categories?

When do we sell the highest volume of products each year?

Is there a certain style of clothing that people buy more of in my town?

Should we stop selling furniture?

If you can answer these and similar questions, you'll be able to improve your business over time and focus on the items that return the greatest value to you, your consignors, and your customers.

These features are just the table stakes for running the store. Some software solutions might check all three boxes, but bog you down with bugs and clunky workarounds. ConsignCloud aims to be the simplest, easiest-to-use software out there for running a resale shop and includes these three features and more. For a walkthrough of our platform, check out this video here .

Business structure & compliance

"Business structure" refers to your business' tax classification. LLCs are a remarkable business structure because they're easy to start and simple to maintain. Using one of the myriad online services that help with LLC formation makes it even easier, although keep an eye out for unnecessary upcharges for add-on services.

Most states and municipalities do not require a separate business license for retail stores, but the requirements for liability for handling secondhand merchandise, lost property laws for uncollected money owed to consignors, and privacy regulations vary so wildly by state (and even by city) that they're worth researching before you start. Your local chamber of commerce is a great resource. The U.S. Small Business Administration also has a vast network of Small Business Development Centers, which provide free, one-on-one advising on all phases of small business development. They're great places to meet successful entrepreneurs, get another set of eyes on your business plan, and learn about the requirements and challenges specific to your area.

Choose what to sell

Generally speaking, there are four categories of items you can take and sell:

Electronics

When thinking about what types of items you want to sell, there are a couple of key considerations. First, you need to think about the state or quality of the item. This applies to all categories. When someone brings in an item to consign, it needs to be clean, in working order, and not thrown crumpled up into a bag (depending on the type of item). Second, you need to think about the age of the item. It's common to take newer items only if they're younger than 3 or 4 years. If it's vintage, the standard is typically older than 25 years. 

Next, you can decide on the categories of items you want to sell, which comes down to two more considerations: your available space and your expertise. If you don't have space for furniture, then you can cross that category off your list. If you don't have room for hanging up formal wear in your storage shed, you can go ahead and turn down those items as well. And when it comes to your expertise, you need to decide how comfortable you are taking and selling items you don't know a lot about. For example, if you don't know much about electronics, you may want to steer clear of that category. If you know a lot about a particular fashion trend, you can focus on taking items that fit that style. But keep in mind that the more niche you get, the higher the risk of your inventory going out of style or becoming obsolete. If your clothes suddenly go out of style, you'll be stuck with a bunch of items no one wants. 

Tell your business' story

We've touched on this already, but consignment is often less focused on competition between stores and more focused on improving local communities. More shoppers than ever are recognizing the ethical benefits of consignment, and the more people that shop consignment, the better it is for everyone. Here, we'll cover three key benefits of consignment that you can use to create a story around your business' contribution to your community.

Resale reduces waste

Resale is as green as you can get. Just take a look at ThredUp's 2021 Resale Industry Report : in the last decade, 116 billion pounds of CO2 have been displaced by buying used instead of new!

If you run a B&M store, you're even greener than exclusively online stores. As it turns out, shipping packages thousands of miles is typically bad for the environment. There are tactics you can apply to mitigate the impact of your online store, but at the end of the day, receiving inventory and selling it in the same location will leave a smaller environmental footprint than shipping items.

Local business is worth it

Local businesses aren't just good for the environment --- they're good for everyone. Here are some stats that show how beneficial local business is:

Small businesses create more jobs than big businesses. In fact, small businesses have accounted for more than 65% of new jobs since the 1970s .

According to Local First , "when West Michigan consumers choose a locally owned business over a non-local alternative, $73 of every $100 spent stays in the community. By contrast, only $43 of every $100 spent at a non-locally owned business remains in the community."

More money spent on local businesses means more tax revenue for your jurisdiction --- which means more investment in local roads, schools, parks, and more.

28% of shoppers buy local for better service and 19% to help local non-profits.

Your customers aren't the only people who care that you're a local business --- your consignors want to sell local, too! When they do, their split goes right back into their pocket, and the rest goes to you and your shop. Because your supply chain is local, an even higher percentage of your sales stays in your community.

Local consignment has knock-on effects too. A thriving local economy encourages a healthy community by helping people meet their neighbors, get involved, and think more about how their own actions impact those around them.

Consigning for a cause

Mottos like "shop green" or "local first" are often enough to catch the eye of a potential customer and get them in the door. They're simple, to the point, and impossible to argue with. But for folks who are looking to invest more heavily in your shop by becoming a consignor --- essentially a business partner --- you often need to show them that your business goes above and beyond.

Charitable involvement is a hallmark of local business. Non-profits often receive as much as 350% more money from local businesses than from non-locally owned businesses. You can prove that your interests are aligned with your shoppers' and consignors' interests by being more charitably engaged.

Getting started is a two-step process. First, find out what values you share with the people you hope to partner with. Then, put your money (and time) where your mouth is! Do you want to raise support for young mothers? Help save an endangered species? Donate to a medical research project? Find something that you and your community can get behind, either with donations, volunteerism, or by simply raising awareness. 

A great way to dip your toes into charitable giving is to simply donate 10 cents from every sale or per item sold. If you let your consignors choose which charity to donate to, you can split the cost of the donation with them, reducing the impact on your bottom line while also getting on the same page as your fellow community members.

Hopefully, you've found some useful info, tips, and tricks in this article. Like we said earlier, we're going to continue to write more in-depth articles on these and related topics, so go ahead and bookmark this page.

More Resources

How to Build a Consignor Referral Program

Your consignors stock your store, so to get more inventory get more consignors.

7 Key Steps to Laying your Consignment Store's Operational Foundation

The success of any business relies on a foundation of operational capabilities.

Social Media for Consignment Stores

Social media is a time effective way to engage new and existing customers!

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8 Tips for Launching Your Consignment Business

By SimpleConsign

Table of contents, wondering how to start a consignment shop follow these steps.

Opening a consignment shop can be a great way to turn your passion for vintage or unique items into a profitable business. And now is the perfect time to do so. According to thredUP and GlobalData:

The U.S. secondhand market  is expected to reach $70 billion by 2027.

Online resale  is expected to grow 21% annually over the next five years, reaching $38 billion by 2027. It's the fastest-growing resale segment.

Smart business owners start with a strong business plan

If you've ever asked yourself, "How do the best consignment stores work?" know that a successful consignment business begins with a solid business plan. The time you invest in creating this document saves you money and keeps you on track for the long haul. 

Entrepreneur.com suggests that starting a consignment clothing store requires an initial investment of $3,000 to $10,000. However, it takes at least two years to work out all the details and get the business running smoothly.

To start your own consignment store successfully, consider your business structure, target market, consignment policies, projected sales, and cash flow. You should align your goals with your projected sales to determine what steps you need to take to achieve them.

You will also need to make a list of start-up expenses, including the cost of shelving, tags, bags, a cash register, signage, and inventory. It is important to estimate how long your business can operate without additional funding so that you can give your store a fair chance of turning a profit.

The Small Business Administration has helpful resources that you may find useful for starting a consignment business.

1. Research the neighborhood

To choose a neighborhood, visit city hall and gather information on income, age, marital status, etc. It's important to be familiar with the area. You can make sure there's a market for your type of store in the area. 

Look for gaps in the market, current trends, and successful vendors. 

Does children's clothing resale dominate the industry?  Is there room for a furniture provider? What about luxury handbags?  

This will give you an idea of what items to sell, how to price them, and what to expect from the competition.

Remember, it truly is all about location. If your market has a lot of secondhand shops or a large, well-known shop will be in direct competition, think about ways to make your store unique. Look for a location with high foot traffic surrounding your target market. Implementing a comprehensive marketing strategy is important, but this approach can help you attract new customers faster.

Consider talking to the competition and contacting similar businesses in other cities or states. If you aren't comfortable talking to a competitor, at least browse their store and marketing materials. 

2. Choose a business model

There are two primary business models in the resale market: buy outright and consignment.

In the buy outright model, the seller receives payment first for their item. Then, the reseller takes over and sells it.

In the consignment model , the seller retains ownership of the item. However, the item is placed in the reseller's store or website for sale. The reseller takes a percentage of the final sale price as their commission.

The key difference between these two models is who assumes the risk and responsibility of selling the item. With buy outright, the reseller takes on the risk and responsibility, while with consignment, the seller retains it. Both models have their advantages and disadvantages, and it's up to the seller to decide which one is best for them.

Of course, there are other factors to consider. Will you charge extra for large items? What about credit card fees? Will you pass those on? It’s common to pass these on to consignors when appropriate. Before meeting with your vendors and consignors, you will need answers to questions like this. This is one area where choosing a consignment store point of sale , like SimpleConsign, really matters. The ability to add and configure custom fees adds to your bottom line. For a list of fees to consider, check out 10 Ways to Manage Your Bottom Line.

3. Decide whether you want to sell online in addition to your physical location

Keep in mind that the needs of a brick-and-mortar store are different from those of an online only consignment shop. If you choose to start an online consignment store, be sure to account for extra expenses like packing and shipping costs. You'll also want a dedicated space for packaging and sending out items.

You can take a hybrid approach to find what works for your business. SimpleConsign's Shopify integration makes this easy.

4. Choose a consignment store software

Choosing the right consignment POS provider is a critical decision for your business. The consignment software is the backbone of your operations and has a direct impact on your bottom line. It enables efficient transactions, accurate inventory management , and seamless customer experiences.

A reliable and user-friendly resale POS provider can streamline your business processes, improve customer service, and increase your consignment sales. On the other hand, a subpar consignment POS system can lead to costly errors, frustrated customers, and missed opportunities. Therefore, selecting the right consignment store software is crucial to the success and growth of your business.

5. Design an attractive store

Often, shoppers form lasting impressions of your consignment shop based on the layout of your store. No matter how well-stocked the store is, customers will find another place to shop if it isn't clean, bright, organized, and attractive. 

To enhance your sales, visit your preferred retailers and observe how they display their merchandise. To attract customers, place the seasonal must-have items at the front of the store.

You can keep the sale products and everyday items at the back. For smaller items that cost less than $10, it’s better to display them next to the register to increase impulse buying. These small purchases can add up to significant sales every month.

It’s also crucial to change the way you display your merchandise to make it feel fresh and new. You can check out " Retail Store Layout Designs that Increase Your Sales " for ideas on store layout designs.

6. Acquire inventory with a clear consignment agreement

To be successful in selling consignment products, you must attract consignors with quality merchandise. Don't open the doors before the shelves are full. Shoppers will hesitate to come back. However, if you fill your shelves with inventory shoppers aren't interested in, they won't return either. 

Knowing your neighborhood and its demographics means you'll know what merchandise to offer. Scour yard sales, auctions, estate sales, business liquidations, and thrift shops for good deals. Learn to bargain and negotiate. These skills will be needed when interacting with consignors. 

7. Seek community support

Consider reaching out to your community for support by teaming up with other businesses in your neighborhood. You could offer cross-promotional services and discounts to customers.

For instance, a clothing store could collaborate with a dry cleaner or tailor, while a formal wear shop could sell original accessories created by an aspiring jeweler.

Similarly, a children's consignment store should consider partnering with a local photographer for a customer appreciation sale, while a furniture shop could benefit from a strong relationship with a moving company.

8. Think outside the resale box

To become a successful consignment business, look for every opportunity to build your vision. Join organizations such as the  National Association of Resale Professionals (NARTS) .

Get involved with your local Chamber of Commerce. Find ways like Shop Small Saturday to encourage your community to shop locally. Do your homework, and you  will  be successful.

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Schedule a personalized demo & try SimpleConsign free for 15 days. 

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7 Tips to Elevate Your Resale Store with Visual Merchandising

7 Tips To Easily Improve Your Consignment Shops Website

10 Questions to Ask Before Buying Consignment Software

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How to Start a Resale Business

Resale businesses contribute to environmental sustainability by recycling clothing, furniture, and other household items. Many resale businesses operate online, while others maintain physical stores within local communities. Some accept donations only on-site, while others provide pickup services. Resale business owners and employees create attractive displays that change frequently according to available goods and the popularity of particular brands or items. Typically, resale business owners maintain mutually beneficial relationships with charitable community organizations as well as their regular customers.

Ready to turn your business idea into a reality? We recommend forming an LLC as it is the most affordable way to protect your personal assets. You can do this yourself or with our trusted partner for a small fee. Northwest ($29 + State Fees) DIY: How to Start an LLC

Start a resale business by following these 10 steps:

• Plan your Resale Business
• Form your Resale Business into a Legal Entity
• Register your Resale Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Resale Business
• Get the Necessary Permits & Licenses for your Resale Business
• Get Resale Business Insurance
• Define your Resale Business Brand
• Create your Resale Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your resale business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Resale Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Find a Domain Now

Powered by godaddy.com, what are the costs involved in opening a resale business.

While opening a resale business costs less than many others due to the fact that some merchandise is donated, it does require some startup capital. The amount depends on whether your business is conducted online, at a flea market, or in a store. For a physical store, business licenses, liability insurance, space rent and merchandise are among the initial startup costs . Those costs can range from as little as $5,000 to as much as $30,000, depending on the type of items being sold and the percentage of your inventory that comes from donations. Start-up and operating costs can be reduced by utilizing software developed specifically for resale businesses. That software allows you to automate tasks such as maintaining customer databases, tracking sales and inventory, and creating sales promotions.

What are the ongoing expenses for a resale business?

Depending on the type of resale business, ongoing expenses may include space rent, website maintenance, a business phone, employee salaries and a company vehicle for picking up donations. For online businesses, your main costs will include managing a warehouse and preparing and shipping orders.

Who is the target market?

Preferred clients are those who purchase items for their own use, rather than for resale purposes.

How does a resale business make money?

A resale business makes money by selling used merchandise at a profit. Competitive pricing that factors in the cost of merchandise and operating expenses is crucial to the success of any retail business.

The amount you can charge customers is based partly on your chosen target market and the amount of competition for that market in your area. Pricing is based in part on ensuring that there is a profit after operating costs are subtracted from sales figures. Other factors that affect pricing include the quality of the items, their current market value, and the strength of the local economy. Some resale businesses specialize in selling large quantities of low-cost items, while others focus on selling high-cost items. High-end designer fashions, appliances, and furniture command a higher resale price than lesser-known brands even though the quality may be comparable. The ambiance of your store and the language used to describe your merchandise can also affect pricing.

How much profit can a resale business make?

The amount of profits a resale business can make depends on its resources. Those resources include merchandise and equipment as well as human resources. Knowledge, expertise and the development of company and community relationships all contribute to increasing profits. Annual earnings for small resale businesses average from between $30,000 and $60,000 .

How can you make your business more profitable?

You can make your business more profitable by conducting regular market research, which includes visiting competitors to compare prices and find new ways to set yourself apart. Increasing your donations by offering convenient pick-up and purchasing items in bulk from wholesalers whenever possible can also increase your profit margin.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

One crucial aspect that cannot be overlooked when starting your resale business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they're a far less stable and advantageous option than LLCs.

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business's debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business's liabilities.

In practice, this means that if your resale business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

More than 84% of our readers opt to collaborate with a professional LLC formation service to kickstart their venture. We've negotiated a tailored discount for our readers, bringing the total down to just $29.

Form Your LLC Now

Note: If you're interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a resale business business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Certificate of Occupancy

A resale business is generally run out of a retail store. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO) . A CO confirms that all building codes, zoning laws and government regulations have been met.

If you plan to lease retail space:

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a resale business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

If you plan to purchase retail space:

• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your resale business will be in compliance and able to obtain a CO.

Certain resale products cannot be sold . These products are determined federally and include products that have been recalled, that don’t comply with the federal limit on lead, unsafe toddler and infant products, and anything in violation of CPSC’s safety standards, bans, rules or regulations.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Resale Business needs and how much it will cost you by reading our guide Business Insurance for Resale Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a resale business

Studies show that for resale businesses, experiential marketing that utilizes all the senses is more effective than traditional marketing techniques. Thrift store shoppers are seeking pleasurable visual, auditory, and tactile experiences as well as unique items at bargain prices. That’s why many successful resale business owners both attend and organize community events such as bake sales, local plays and art exhibitions. It’s also helpful to keep abreast of resale trends by reading articles that discuss recent studies and research within the industry.

How to keep customers coming back

Successful resale business owners know that one of the things that keeps their customers coming back is the constantly changing inventory. Prominently displaying the most popular brands and highest-quality items is a good way to attract attention to them. Offering specials such as buy one, get one free is also an effective marketing strategy. Discounts and markdowns using colored tags are also great incentives for budget conscious customers. Whatever strategies you use must include friendly, helpful customer service. Not even a free gift can replace a warm greeting or an offer to help a customer find exactly what they’re looking for.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This is a great business for those who enjoy interacting with people while treasure-hunting for bargains at flea markets or estate sales. Those who have a talent for finding bargains and negotiating prices can transform that talent into a successful resale business. It’s also a good choice for recycling enthusiasts who want to save usable items from landfills and help conserve natural resources. Community-oriented people who want to help provide necessities for low-income residents at reduced prices are also good candidates for this business.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a resale business?

• Accepting donations and purchasing merchandise from various sources such as wholesalers, local charities, estate sales, and yard sales
• Separating, cleaning, repairing, pricing and displaying donated and purchased items
• Market research and targeted advertising
• Attending community events, advertising and creating sales promotions
• Interacting with donors, vendors and customers
• Training, scheduling and managing employees

What are some skills and experiences that will help you build a successful resale business?

Many people gain experience in the resale business through garage sales, flea markets, or selling items online before starting their own businesses. Whether your store is online or has a physical location, negotiation skills are essential, since profit depends on purchasing items for less than their resale price. Market research skills are as vital for pricing merchandise as good customer service skills are for building a regular clientele. An artistic eye is also helpful for creating attractive displays that showcase your goods in the best possible light.

What is the growth potential for a resale business?

Resale businesses can become so successful that they are able to offer franchise opportunities for others. Play It Again Sports is a good example.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

Although it is possible to start and maintain a small resale business without assistance, successful expansion requires additional help. There are a number of options for building a team. One is to create a partnership in order to share expenses and responsibilities. Another is to hire employees at a regular wage, as your revenue increases to allow for an expanding staff. Profit sharing is becoming an increasingly popular option, since it reduces expenses and increases incentive.

Useful Links

Industry opportunities.

• Association of Resale Professionals
• Franchise opportunity

Real World Examples

• Profile on a thrift store
• Experience of couple that started a resale shop
• 19 different types of resale shop
• Independent resale shop
• Article on the resale industry

Further Reading

• Graduate thesis on second-hand retailing

Have a Question? Leave a Comment!

How to Start a Consignment Business w/ Popup Events, Online Sales, or a Storefront

The promise of the consignment business — is risk-free profit. After all, you’re getting paid to sell other people’s stuff.

To help school me on how it all works, I sat down with Megan Church from PineappleConsignment.com .

Megan started her consignment business with a popup event in October 2018. Her goal was to break even and to do something creative with her time.

Megan made around $250 from that first event, but more importantly, validated her business idea and had a lot of fun doing it.

She has since broadened her consignment business into online sales, estate sales, and now has her own storefront open to the public (by appointment only).

Tune in to The Side Hustle Show interview to hear:

• how you can get started throwing popup consignment events right away
• how Megan sources and manages her inventory
• the creative ways she’s found to market and grow the business

What is a Consignment Business?

Starting a popup consignment business, running your first popup consignment event, sourcing inventory for your consignment business, getting customers in the door, pricing items and consignment fees, tracking consignment sales and payments, transitioning to online consignment sales, instagram growth strategies, transitioning to estate sales and a physical storefront, what’s next, megan’s #1 tip for side hustle nation, alternatives to starting a consignment business, consignment business: your turn.

A consignment business is one that sells physical products on behalf of another seller, and takes a percentage of the sale.

For example, there’s a second-hand sporting goods store in town that sells items on consignment. If you have an old pair of skis or a bike you no longer use, you can bring it in and let them sell it for you.

When it sells, the store takes a percentage and passes the rest on to you. They got some risk-free, no cost inventory , the customer got a product they wanted, and you got some money for that item you otherwise would have had to sell yourself or donate.

There may be as many as 25,000 consignment shops across the country, but you don’t even need any physical space to get started. If you can build an online following like Megan did, you can make sales without ever touching the inventory.

“I always did consignment events for clothing for my kids. Mostly just because kids grow out of stuff so quickly,” Megan told me.

She had experience buying and selling at consignment events, but not running one.

The inspiration for Megan starting a consignment business herself was because she couldn’t find a home décor consignment event to sell some of her own stuff at.

Megan spoke with some women who ran clothing consignment events and asked them, “Why aren’t there any home décor events?”

They couldn’t really think of a reason, and told her she should go for it if she wanted to run her own.

In fact, one of the women she spoke to said she was asked all the time if she could sell home décor items, but she didn’t have the space.

Megan said she thought to herself, “Well I’ll try one. I’ll throw one event and see if it works and if it’s fun.”

Megan threw her first consignment event in November 2018. Her total costs were $5,000, and her goal at the time was to break even.

That $5,000 paid for the venue, renting tables, buying computers, and some other items.

Megan told me that she did get a good price on the venue. She found a wedding venue that had recently been refurbished and was able to cut a deal with the owners.

Megan explained to them that she wanted to book the venue for a week and that she’d be bringing a load of people in that would see the new renovations.

Her schedule for the week looked like this:

• Tuesday through Thursday – People dropped stuff off to be sold and it was tagged up.
• Friday – Megan ran a “sip and see” day where people could pay to come and look at what’s for sale but not purchase anything.
• Saturday and Sunday – She was open to the public.

Megan agreed with everyone who dropped stuff off that anything leftover at the end of the week would be donated to charity unless they picked it back up Sunday afternoon.

At the end of the week when Megan ran the numbers, she ended up with a profit of around $250.

Megan said this was a “major win,” as she more than broke even and it validated her business idea .

For the first event, Megan said a lot of the inventory came from friends and family.

Megan said she messaged everyone she knew asking if they had any furniture and other home décor items to sell and was surprised by the response.

Megan told me she also paid to advertise on other consignment sales websites to capitalize on their audiences.

For large items, Megan said she had people send her pictures first. She had around 3,000 square feet of space to fill and wanted to make sure the items were high quality.

Megan said she also started picking up items herself from moving sales and other places if she thought she could make a profit selling them.

For her first sale, Megan said she spent some of her own money to, “create a good shopping experience”—but didn’t do that again after the first event was behind her.

“I definitely pumped on social media for several months, and I got featured in the news,” Megan told me.

Megan sent some emails out to local bloggers and news stations to drum up some promotion. She also had a friend who worked for a news outlet reach out to her.

Although Megan spent months promoting her event on social media, she was still “just hoping people would show up.”

Originally, Megan did the “60/40 model.” This is where the seller gets 60% of the sale price and she gets 40%, which is fairly normal for popup consignment models.

Megan also allowed sellers to volunteer at the event, in exchange for an increase to 70% commission.

This was a win-win for Megan, as she needed help but didn’t want to hire staff.

For pricing, Megan allowed people to price their own items if they wanted to. However, she said that most people don’t want to price their own stuff, so Megan often has to do it.

This also works out better for Megan as she has built up a lot of knowledge and expertise over the years so she’s able to price products accurately.

For handling payments, Megan takes cash and uses Venmo and the QuickBooks Intuit Card Reader .

With a large number of sellers’ goods being sold, Megan needed software to help track which items sold and who she needed to pay out.

She started out using MyConsignmentManager , which is great for popup events

It costs $250 per event and enables sellers to login and type in all of their information, print out barcodes, and it tracks everything.

However, when the pandemic hit, Megan switched to selling items online and needed a different system.

Megan started scheduling sales on her Instagram account as she could build a following there. To do so, she was using the Instagram stories feature.

Megan said she would list furniture items at a set time every two weeks, and offered sellers a 70/30 split.

These online sales did really well, and Megan said they were the, “easiest, lowest-risk sales” she’s ever done.

The pandemic forced Megan to take her consignment business online.

At first, Megan said she just wanted to “stay relevant.” But her online sales ended up working out really well and it’s become an important part of her business.

The process Megan set up to sell online looks like this:

• Sellers submit pictures and measurements of their furniture through a Google Form
• Megan picks 30-50 of the best items for each sale
• Megan creates a graphic using Canva with the pictures and measurements on
• She then posts a “sneak peek” of each image to promote the items ahead of the sale
• On sale day, Megan lists all the items for sale and operates on a first-come, first-served basis

When someone reserves an item, they send the full payment in advance via Venmo. Megan then holds the money and connects the seller with the buyer to arrange delivery.

It’s a bit labor-intensive replying to all the messages and keeping track of sale items on a spreadsheet, but it works well.

For the online sales, she takes 30% of the sales price and passes 70% on to the owner of the item.

Some companies have taken the online consignment model and made it into a multi-million-dollar operation, like TheRealReal .

Need storage for your consignment products? Take a look at Neighbor for affordable options near you.

Megan currently has around 6,500 followers on Instagram . That’s not huge in terms of Instagram celebrity, but it’s around 2-3% of the population of her city.

These are mostly local, highly-targeted people who know about Pineapple Consignment and are interested in either buying or selling.

Megan shared her top tips for growing her following on Instagram:

• Consistency – Stay top-of-mind by posting updates and other bits of content in between running sales.
• Giveaways – For example, she bought a nice set of furniture from a Facebook Marketplace for $500. Megan split up the items, and ran a giveaways for the most valuable piece. “Tag 2-3 friends and follow me for a chance to win,” kind of thing. She sold the rest of the set to recoup her costs.
• Teaming up with other businesses – Megan has run cross-promotions with other local businesses of a similar size to hers.

As the pandemic restrictions eased, Megan started to hold estate sales. These involved her running a sale in the client’s home and using her online audience to sell the items.

Megan also held some sales from storage units and sold the items online using a similar process to her online sales.

A problem Megan kept running into was having the space to hold all of the inventory she was being offered.

Frustrated with having to turn items down that she knew would sell, she found a small warehouse space to solve this problem.

This now acts as a place to store large items and a storefront so people can pop in (by appointment only) and see items for themselves.

When we spoke, Megan said that opening the storefront had stretched her time and resources and was taking up most of her focus.

That said, Megan is interested in expanding into other nearby cities.

She has plans to start with some online sales for Nashville this year, as well as possibly expanding her warehouse space.

Big thanks to Austin L. Church for the intro!

“ Follow the fun .”

Links and Resources from this Episode

• PineappleConsignment.com
• PineappleConsignment on Instagram
• QuickBooks Intuit Card Reader
• MyConsignmentManager
• RankIQ – Start publishing content that goes straight to the first page of Google!

• Freshbooks.com – Start your 30-day free trial today!

Want More Side Hustle Show?

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Listen in your favorite podcast app or directly in your browser.

If you like the idea of flipping items in a low-risk way, here are some other side hustles to consider.

Flea Market Flipping

Provided you do have some storage space available, the buy-low, sell-high business model is alive and well with thrift store finds and yard sale treasures. One inspiring case study is Stacy Gallego, who actually started her flipping journey with a $0.50 purchase, and has gone on to sell more than $100,000 worth of items.

Online Arbitrage

Online arbitrage is the process of buying inventory from one site to resell on another. It’s amazing to me that this is a thing, but it very much is.

When I sat down with Chris Grant, he described selling $75,000 worth of products in a typical month.

Print on Demand Products

Another model with zero upfront inventory cost is print-on-demand. In this business, you upload your clever and creative t-shirt (and other product) designs to sites like Merch by Amazon or Redbubble , and earn a small commission whenever they sell.

The companies handle all the product creation and fulfillment.

Facebook Marketplace Dropshipping

Andrey Kozlov reported earning hundreds of dollars a day drop shipping products on Facebook Marketplace . His system was to find popular products on eBay, Amazon, or Walmart, and simply relist them at a marked-up price on Marketplace.

Mattress Returns

“Reverse logistics” specialists pick up bed-in-a-box mattress returns when customers decide they didn’t really like them. From there, they clean up the items and list them for resale, only having to pay for the mattress once it sells. For your trouble, you can earn up to $250 per flip . 

Have you thought about starting a consignment business?

One easy way to get started would just to be advertise in your neighborhood for items people want to get rid of. Offer to come by and measure and photograph the item, set a floor price with the owner—the least they’d be willing to accept—and then list those on Facebook Marketplace or elsewhere.

I think this is a low-risk side hustle to get started with and hope you’ll stop by in the comments to let us know how it goes when you try it!

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About the Author

Nick Loper is a side hustle expert who loves helping people earn more money and start businesses they care about. He hosts the award-winning Side Hustle Show, where he's interviewed over 500 successful entrepreneurs, and is the bestselling author of Buy Buttons , The Side Hustle , and $1,000 100 Ways .

His work has been featured in The New York Times, Entrepreneur, Forbes, TIME, Newsweek, Business Insider, MSN, Yahoo Finance, The Los Angeles Times, The San Francisco Chronicle, The Financial Times, Bankrate, Hubspot, Ahrefs, Shopify, Investopedia, VICE, Vox, Mashable, ChooseFI, Bigger Pockets, The Penny Hoarder, GoBankingRates, and more.

1 thought on “How to Start a Consignment Business w/ Popup Events, Online Sales, or a Storefront”

Really cool concept! I wonder why a consignor wouldn’t just sell the item themselves on FB marketplace or through other online platforms. Sure there is headache to selling online, as Megan experienced, but generally most selling experiences are quick and painless, at least in my experience. Perhaps is makes most sense as a consignor if you have lots of items to sell, rather than one or a few?

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Sample Consignment Store Business Plan Template PDF

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.

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.

Market Analysis Market Trends

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.

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

Target Market

• 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

Financial Plan 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.

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Repurposed Furniture Business Plan [Sample Template]

By: Author Solomon O'Chucks

Home » Business Plans » Wholesale & Retail

A repurposed furniture business involves taking old, worn-out, or unwanted furniture and transforming it into something new, functional, and aesthetically pleasing. This type of business aims to reduce waste by giving old furniture a new lease of life instead of throwing it away.

Repurposing furniture can involve a range of techniques such as painting, reupholstering, and adding decorative features. The resulting pieces are often unique, one-of-a-kind items that can be sold for a profit.

A repurposed furniture business can operate in several ways. Some businesses source and repurpose furniture themselves, while others may take on furniture that people donate or sell. Some businesses may also offer custom repurposing services, where they transform clients’ existing furniture to suit their needs and style.

The repurposed furniture business is part of the home furnishings industry and available data shows that the market size of the Home Furnishings Stores industry is $62.1 billion in 2023.

Steps on How to Write a Repurposed Furniture Business Plan

Executive summary.

Laurent Jefferson® Repurposed Furnitures, Inc. is a West Bloomfield, Michigan-based repurposed furniture business that specializes in transforming old, worn-out furniture into unique and functional pieces. We are equipped to reduce waste and provide our customers with affordable, eco-friendly alternatives to new furniture.

We source our furniture from various places, including secondhand stores, estate sales, and online marketplaces. Our team of skilled artisans then use a range of techniques to repurpose and transform the furniture, including painting, reupholstering, and adding decorative features.

As a socially and environmentally responsible business, we are committed to reducing waste and promoting sustainable living. We believe that repurposed furniture not only benefits our customers but also helps to create a more sustainable future. Laurent Jefferson is the founder and CEO of Laurent Jefferson® Repurposed Furnitures, Inc.

Company Profile

A. our products and services.

Laurent Jefferson® Repurposed Furnitures, Inc. will be involved in selling repurposed furniture. In addition to selling our repurposed furniture, we also offer custom repurposing services for clients who want to transform their existing furniture to better suit their needs and style.

We believe in providing personalized and high-quality services to our customers, ensuring that every piece of furniture we repurpose is unique and tailored to their preferences.

b. Nature of the Business

Our repurposed furniture company will operate the business-to-consumer business model.

c. The Industry

Laurent Jefferson® Repurposed Furnitures, Inc. will operate in the home furnishings industry.

d. Mission Statement

Our mission is to provide our customers with high-quality, eco-friendly furniture solutions that are both functional and beautiful. We are committed to reducing waste and promoting sustainable living through our repurposed furniture and custom services.

e. Vision Statement

Our vision is to become a leading repurposed furniture business that promotes sustainability and creativity. We aim to inspire people to rethink their relationship with furniture and encourage them to see the potential in old, discarded items.

f. Our Tagline (Slogan)

Laurent Jefferson® Repurposed Furnitures, Inc. – The Leading Repurposed Furniture Company!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Laurent Jefferson® Repurposed Furnitures, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Operating Officer (Owner)
• Workshop Manager
• Bookkeeper/Accountant
• Furniture Restoration Specialist
• Sales and Marketing Officer
• Customer Service Officer (Receptionist)

i. Ownership / Shareholder Structure and Board Members

• Laurent Jefferson (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
• Terry Adams (Board Member) 19 Percent Shares
• Bob Fanucci (Board Member) 10 Percent Shares
• Joe Dexter (Board Member) 10 Percent Shares
• Linda Victor (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• We boast of a strong environmental focus, which can be a significant strength in a society increasingly concerned about climate change and sustainability.
• Repurposed furniture is often one-of-a-kind, making it appealing to customers who want something unique and personalized.
• Low overhead costs
• Repurposed furniture businesses can be flexible in terms of the products they create and the services they offer.

b. Weakness

• Depending on the availability of secondhand furniture, repurposed furniture businesses may have limited inventory, making it challenging to meet customer demands.
• Lack of consistency
• Production time.

c. Opportunities

• As more people become concerned about environmental sustainability, the market for repurposed furniture is likely to grow.
• Offering custom repurposing services can be an opportunity to meet specific customer needs and increase revenue.
• Repurposed furniture businesses can take advantage of e-commerce to reach a broader audience and increase sales.

i. How Big is the Industry?

The repurposed furniture industry is a small industry and there are few players in this line of business.

ii. Is the Industry Growing or Declining?

The repurposed furniture industry is growing and this could be a result of the increasing awareness of sustainability and eco-friendliness of repurposed and upcycled furniture. Many customers are looking for furniture that is not only stylish but also sustainable and repurposed furniture businesses are well-positioned to offer this type of product.

iii. What are the Future Trends in the Industry

As consumers become more aware of the environmental impact of furniture production and disposal, there is likely to be an increased focus on sustainability in the repurposed furniture industry. This may involve using eco-friendly materials and processes, as well as finding innovative ways to reduce waste.

The use of technology in the repurposed furniture industry is likely to increase in the future. This may involve the use of 3D printing to create custom parts or designs, as well as the use of virtual and augmented reality tools to help customers visualize how a piece of furniture will look in their home.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the repurposed furniture business.

v. Can You Sell a Franchise of Your Business in the Future?

Laurent Jefferson® Repurposed Furnitures, Inc. has plans to sell franchises in the nearest future and we will target larger cities all across the United States of America and other parts of the world.

• Repurposed furniture businesses may face competition from other sustainable furniture companies or traditional furniture retailers who offer eco-friendly options.
• Repurposed furniture businesses may be vulnerable to economic downturns, as customers may be less likely to spend money on non-essential items.
• Depending on the materials used to repurpose the furniture, the cost of materials may fluctuate and impact the profitability of the business.

i. Who are the Major Competitors?

• Rejuvenation
• Jayson Home
• Anthropologie
• Furniture Pipeline
• The Refinishing Touch
• Unruh Furniture
• The Dump Luxe Furniture Outlet
• Urban Wood Goods
• Vintage Mill Werks
• Ballard Designs
• Rethink Design Studio
• Classic Home
• Lost and Found Decor.

ii. Is There a Franchise for Repurposed Furniture Business?

Yes, there are franchise opportunities for repurposed furniture business and they are:

• Rustic Home
• Painted Furniture Company
• The Rustic Mile
• Furniture Medic
• Reclaimed Resale & Design
• The Junkluggers
• The Furniture Refinishing Company
• The Reclaimed Room
• The Rustic Room
• The Upcyclist
• The Refinishing Shop
• The Repurposed Collection
• The Painted Home
• The Reclaimed & Repurposed
• The Rustic Emporium
• The Chalked Up Furniture
• The Shabby Chic
• The Industrial Home
• The Salvaged Boutique .

iii. Are There Policies, Regulations, or Zoning Laws Affecting Repurposed Furniture Business?

Yes, there are policies, regulations, and zoning laws affecting repurposed furniture businesses in the United States. These laws vary depending on the state and local municipality where the business is located. One significant regulation affecting repurposed furniture businesses is environmental protection laws.

Repurposed furniture businesses may need to comply with federal and state regulations regarding waste disposal, hazardous materials, and air quality. For instance, some repurposed furniture businesses may need to have a permit for using certain chemicals or materials for refinishing furniture.

Another regulation that can impact repurposed furniture businesses is consumer protection laws. Repurposed furniture businesses may need to comply with state and federal regulations related to advertising, warranties, and product safety.

Zoning laws can also impact the location of repurposed furniture businesses. For example, some municipalities may have zoning laws that prohibit businesses from operating in residential areas or restrict certain types of commercial activities. Additionally, some areas may have restrictions on signage or the display of products on the storefront.

Marketing Plan

A. who is your target audience, i. age range.

The age range of people who we look forward to doing business with is between 18 years and above.

ii. Level of Educational

We don’t have any basic educational qualifications for those who we are targeting; everyone will be welcome to do business with our repurposed furniture company.

iii. Income Level

Anyone who can afford furniture will be welcome to our repurposed furniture company.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will purchase furniture from our repurposed furniture company.

v. Language

There is no restriction when it comes to the language spoken by the people that will purchase furniture from our repurposed furniture company.

vi. Geographical Location

Anybody from any geographical location will be received in our repurposed furniture company.

vii. Lifestyle

Laurent Jefferson® Repurposed Furnitures, Inc. will not restrict any customer from doing business with our repurposed furniture company based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Build Relationships with Other Businesses in our Target Location
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Develop Your Business Directory Profiles

i. Traditional Marketing Strategies

• Broadcast Marketing -Television & Radio Channels.
• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
• Including direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Pay-per-click (PPC).
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our audience.
• Start using chatbots.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

Laurent Jefferson® Repurposed Furnitures, Inc. will adopt the following pricing strategies:

• Bundle Pricing
• Cost-Plus Pricing
• Competitive Pricing
• Dynamic Pricing
• Value-Based Pricing

Please note that our pricing strategy is based on a careful analysis of the costs and profitability of the business, as well as the needs and preferences of the target customer base.

Sales and Distribution Plan

A. sales channels.

Laurent Jefferson® Repurposed Furnitures, Inc. will use the following sales channels to sell our products:

• Online Marketplace: We will sell our furniture on online marketplaces like Etsy, eBay, Amazon, or Facebook Marketplace.
• Social Media: We will leverage social media platforms such as Instagram, Facebook, Pinterest, and TikTok to showcase our repurposed furniture projects and attract potential customers.
• Local Flea Markets or Craft Fairs: We will sell furniture at local flea markets or craft fairs.
• Consignment Stores: We will partner with local consignment stores
• Direct Sales: We will sell furniture directly to customers by setting up appointments for them to come to the workshop or showroom to view and purchase the furniture.
• Wholesale: We will sell furniture wholesale to other businesses, such as interior designers or furniture retailers, who can then sell the furniture to their own customers.

Please note that we adopted these sales channels so that we can reach a wide range of customers and increase sales volume.

b. Inventory Strategy

Laurent Jefferson® Repurposed Furnitures, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our repurposed furniture facility and warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Laurent Jefferson® Repurposed Furnitures, Inc.  will make available to her clients;

• Electronic Payment Systems such as PayPal or Venmo Bank Transfers
• Credit or Debit Card.

d. Return Policy, Incentives, and Guarantees

Return policy:.

As a repurposed furniture business, our return policy would depend on the nature of the products we sell. If we sell pre-made items, we will choose to offer a standard return policy similar to other furniture stores. However, if we offer custom-made or personalized items, we will need to have a more limited return policy due to the unique nature of the items.

We will offer refunds or exchanges for items that are damaged during shipping or have a manufacturing defect, but we would not offer returns for items that were customized to a customer’s specific preferences.

Incentives:

We will offer several incentives to attract and retain customers, such as loyalty programs, referral bonuses, and discounts for repeat customers. We will also offer free shipping for orders over a certain amount, or a discount for customers who purchase multiple items.

Another incentive we could offer is a trade-in program where customers can bring in their old furniture in exchange for a discount on their purchase.

Guarantees:

We will provide our customers with a guarantee of quality and durability. We will guarantee that all our repurposed furniture is made from high-quality materials and is structurally sound. Additionally, we will offer a warranty on any custom-made items, which would cover any manufacturing defects or damage that occurs within a certain period after the purchase.

We will also provide a satisfaction guarantee, allowing customers to return items if they are not satisfied with their purchase for any reason.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. It will help us understand our customers’ needs, experiences, and pain points.

We will work with effective CRM software to be able to achieve this. On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

Our operational plan will provide a roadmap for managing the various stages of the business, from sourcing and refurbishing to sales and marketing. We will regularly review and update our plan to ensure it remains relevant and effective as our business grows and evolves.

Overall, we plan to expand our revenue by 40 percent in the second year and the plan will include a marketing, sales, and operations component.

The operations component of the plan would include organizing regular outdoor furniture sales at local and state levels and attracting customers. These strategies will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Repurposed Furniture Business?

• The business is open for the day’s work
• Sourcing old furniture from various suppliers, visiting thrift stores, estate sales, or online marketplaces to find items that meet our criteria.
• Refurbishing furniture (cleaning, repairing, and painting or reupholstering the item, sanding, staining, and painting furniture, as well as reupholstering or replacing hardware)
• Our team will also spend time on marketing activities such as updating our website, creating social media content, responding to customer inquiries, and working on advertising campaigns.
• Since the business has a physical store, the team will spend time setting up the showroom, arranging furniture displays, and working with customers who visit the store.
• Inventory management (Our team might spend time organizing and cataloging inventory, updating the inventory management system, and analyzing sales data to inform future purchasing decisions)
• Administrative tasks, such as responding to emails, scheduling appointments, managing finances, and reviewing business performance.
• The business is closed for the day.

b. Production Process

At Laurent Jefferson® Repurposed Furnitures, Inc., our production process will be done via;

• Sourcing Furniture
• Cleaning and Prepping
• Designing and Planning
• Repairs and Restoration
• Finishing Touches
• Pricing and Marketing
• Delivery and Customer Service.

c. Service Procedure

We will attend to individual customers based on their preferences and even if it involves going the extra mile to give them premium and durable furniture.

d. The Supply Chain

Laurent Jefferson® Repurposed Furnitures, Inc. will rely on trusted agents to help us attract customers in our city and we have been able to establish business relationships with dealers in different furniture merchandise and antiques et al.

e. Sources of Income

Laurent Jefferson® Repurposed Furnitures, Inc. will make money by selling repurposed or upcycled furniture.

Financial Plan

A. amount needed to start your repurposed furniture business.

Laurent Jefferson® Repurposed Furnitures, Inc. would need an estimate of $120,000 to successfully launch our repurposed furniture company in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $2,300.
• Marketing, Branding, and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $2,400.
• Rent/Lease – $30,000.
• Operational Cost (salaries of employees, payments of bills et al) – $40,000
• start-up inventory – $25,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping the Workshop and Showroom – $25,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

Laurent Jefferson® Repurposed Furnitures, Inc. will not build a new facility for our repurposed furniture company. We will operate from a leased facility (workshop and showroom).

d. What are the Ongoing Expenses for Running a Repurposed Furniture Business?

• Supplies and Materials such as sandpaper, paint, stain, upholstery fabric, and hardware.
• Tools and Equipment such as sanders, drills, saws, and paint sprayers.
• Rent or Workspace Costs
• Marketing and Advertising
• Insurance and Legal Fees
• Transportation and Delivery.

e. What is the Average Salary of Your Staff?

• Chief Operating Officer (Owner) – $55,000 Per Year
• Facility Manager – $40,000 Per Year
• Workshop Manager – $38,000 Per Year
• Bookkeeper/Accountant – $35,000 Per Year
• Furniture Restoration Specialist – $35,000 Per Year
• Sales and Marketing Officer – $25,000 Per Year
• Customer Service Officer (Receptionist) – $24,100 Per Year

f. How Do You Get Funding to Start a Repurposed Furniture Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

The price of furniture sold by our repurposed furniture company will vary depending on several factors, including the cost of acquiring the furniture, the cost of refurbishing and restoring the piece, and the market demand for the finished product.

b. Sales Forecast?

• First Fiscal Year (FY1): $375,000
• Second Fiscal Year (FY2): $435,000
• Third Fiscal Year (FY3): $545,000

c. Estimated Profit You Will Make a Year?

Laurent Jefferson® Repurposed Furnitures, Inc. is projecting to make;

• First Fiscal Year (FY1): (25% of revenue generated)
• Second Fiscal Year (FY2): (35% of revenue generated)
• Third Fiscal Year (FY3): (40% of revenue generated)

d. Profit Margin of a Repurposed Furniture Business 

The profit margin of a repurposed furniture business can vary depending on various factors, such as the cost of sourcing materials, labor costs, marketing expenses, and pricing strategies. Generally, the profit margin of a repurposed furniture business can range from 20% to 50%.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Laurent Jefferson® Repurposed Furnitures, Inc. will grow our repurposed furniture company by first opening other outlets in key cities in the United States of America, and other parts of the world within the first ten years of establishing the business and then will start selling franchises from the fifteenth year.

b. Where do you intend to expand to and why?

Laurent Jefferson® Repurposed Furnitures, Inc. plans to expand to

• Tulsa, Oklahoma
• Little Rock, Arkansas
• San Francisco, California
• New Orleans, Louisiana
• Woodbury, Minnesota
• Portland, Oregon
• Jackson, Mississippi
• Los Angeles, California
• Santa Rosa, California
• Franklin, Tennessee

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have a growing furniture market, making them potentially attractive markets for repurposed furniture businesses.

Laurent Jefferson® Repurposed Furnitures, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Laurent Jefferson is already grooming his son Perry Jefferson to take over from him. Perry Jefferson is at the moment being groomed to go through the company’s employment process without any bias.

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Sample Furniture Store Business Plan

Writing a business plan is a crucial step in starting a furniture store. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring furniture store owners, having access to a sample furniture store business plan can be especially helpful in providing direction and gaining insight into how to draft their own furniture store business plan.

Download our Ultimate Furniture Store Business Plan Template

Having a thorough business plan in place is critical for any successful furniture store venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A furniture store business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The furniture store business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your furniture store as Growthink’s Ultimate Furniture Store Business Plan Template , but it can help you write a furniture store business plan of your own.

Furniture Store Business Plan Example – HomeElegance Furnishings

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to HomeElegance Furnishings, our newly opened furniture store located in the heart of Baltimore, MD. We are thrilled to serve our community by offering high-quality, aesthetically pleasing, and functional furniture that caters to the discerning tastes of Baltimore residents. With a carefully curated product range including sofas, dining sets, bedroom furniture, office setups, and exquisite accent pieces, we’re committed to filling the market gap for superior home decor. Our store is positioned to be the go-to destination for all furnishing needs, providing a unique shopping experience with the help of our friendly staff. As a local business, we are proud to elevate the standard of living spaces in our area, making homes more elegant one piece of furniture at a time.

Our unique position in the market is attributed to several key factors that set us apart from the competition. With invaluable experience from our founder’s previous successful furniture store, we have a deep understanding of the business. Our commitment to producing furniture that exceeds expectations in quality, uniqueness, and functionality is at the core of our success. Since our launch on January 1, 2024, we’ve achieved significant milestones including developing a distinctive logo, securing a prime location for high visibility, and carefully selecting our brand name. These accomplishments lay the groundwork for our future growth and success, ensuring HomeElegance Furnishings becomes a leader in the Baltimore furniture market.

The Furniture Store industry in the United States, currently valued at over $100 billion, is experiencing steady growth due to consumers’ increasing interest in enhancing their living spaces. A notable trend is the shift towards online furniture shopping, providing convenience and broader selection for consumers. Additionally, the demand for sustainable and eco-friendly furniture is rising, as customers become more environmentally conscious. HomeElegance Furnishings is well-positioned to capitalize on these trends with our online presence and selection of eco-friendly options, setting us apart in the competitive landscape and appealing to a broader range of customers.

Our target customers include Baltimore residents seeking premium furniture that combines quality, design, and durability. We aim to serve discerning homeowners, interior designers, and real estate agents with our curated selection of elegant furniture. Additionally, we cater to young professionals moving into their first home or apartment, offering contemporary pieces that fit their budget and lifestyle. Our understanding of these customer segments enables us to tailor our offerings effectively, ensuring satisfaction and loyalty among our clients.

Key competitors in our market include Second Chance, specializing in reclaimed furniture, Urban Interiors with a focus on modern designs, and Sofas Etc., known for their extensive seating options. Our competitive advantages lie in our commitment to quality, innovation, and customer-centric design. We offer unique and functional furniture pieces that not only meet but exceed our customers’ expectations. Our ability to create customized solutions and provide exceptional customer service further distinguishes HomeElegance Furnishings from our competitors, ensuring we remain a preferred choice for furniture in Baltimore.

HomeElegance Furnishings boasts an extensive product line that emphasizes quality, style, and comfort, aimed at transforming living spaces into elegant havens. Our pricing strategy ensures a wide range of options for every budget, enhancing customer satisfaction. Our promotional strategy focuses on a strong online presence, leveraging SEO, social media engagement, and email marketing to attract and retain customers. Additionally, local advertising and in-store events will complement our online efforts, creating a comprehensive marketing approach. Implementing a loyalty program and utilizing customer feedback will further cement our relationship with our clients, driving growth and establishing our brand in the market.

Key operational processes include inventory management, exceptional customer service, effective sales strategies, and maintaining a visually appealing store. We will also focus on smooth order fulfillment, targeted marketing campaigns, diligent financial management, and strong supplier relations. Our staff will be well-trained to ensure high productivity and morale. Compliance with safety standards and regulations will be a priority to ensure a safe shopping experience. Upcoming milestones include securing a prime location, acquiring necessary permits, launching our store, and reaching our revenue goals within the first 12 to 18 months. These efforts will ensure the successful operation and growth of HomeElegance Furnishings.

Under the leadership of Madison Nelson, our President, HomeElegance Furnishings is poised for success. Madison’s extensive experience and successful track record in the furniture industry provide the strategic vision and commitment to excellence necessary to guide our company. Her leadership will be instrumental in achieving our long-term goals and ensuring that HomeElegance Furnishings becomes a leading name in the furniture market.

Welcome to HomeElegance Furnishings, a new furniture store that has recently opened its doors to serve the residents of Baltimore, MD. As a local business, we’re proud to offer a unique shopping experience catered to the discerning tastes of our community. Recognizing the gap in the market for high-quality furniture, we’re here to fill that void and elevate the standard of home decor in our area.

At HomeElegance Furnishings, our product range is carefully curated to meet the diverse needs of our customers. We offer a wide selection of sofas and couches, dining sets, bedroom furniture, office setups, and exquisite accent pieces to complement any space. Our commitment to quality and design ensures that each piece is not only aesthetically pleasing but also functional and durable, making our store the go-to destination for all your furnishing needs.

Located in the heart of Baltimore, MD, HomeElegance Furnishings is ideally positioned to serve our community. Our store is easily accessible, providing a convenient shopping experience for customers in and around Baltimore. Whether you’re looking for that perfect sofa to complete your living room or a dining set that speaks to your style, our doors are open, and our friendly staff is here to assist you.

HomeElegance Furnishings is uniquely positioned for success, thanks to a combination of factors. Our founder brings invaluable experience from successfully running a previous furniture store, ensuring we understand the ins and outs of the business. Moreover, we pride ourselves on crafting furniture that stands out from the competition in terms of quality, uniqueness, and functionality. This commitment to excellence is what we believe will set us apart and secure our place as a leader in the local market.

Since our establishment on January 1, 2024, as a Sole Proprietorship, we have hit several key milestones that mark the beginning of our journey. We’ve developed a distinctive logo that represents our brand’s ethos, carefully chosen our company name to reflect our commitment to elegance in home furnishing, and secured a prime location that promises high foot traffic and visibility. These accomplishments lay the foundation for our future growth and success in serving the Baltimore community.

The Furniture Store industry in the United States is a significant market with a current size of over $100 billion. This industry includes a wide range of retailers selling furniture for homes, offices, and outdoor spaces. With an increasing number of consumers investing in home decor and furniture to enhance their living spaces, the Furniture Store industry is expected to experience steady growth in the coming years.

One of the trends in the Furniture Store industry is the rising demand for online furniture shopping. With the convenience of browsing and purchasing furniture from the comfort of their own homes, more consumers are turning to online retailers for their furniture needs. This trend bodes well for HomeElegance Furnishings, as they can leverage their online presence to reach a wider customer base beyond Baltimore, MD.

Additionally, there is a growing trend towards sustainable and eco-friendly furniture options in the Furniture Store industry. Consumers are becoming more conscious of the environmental impact of their purchases and are seeking furniture made from sustainable materials. HomeElegance Furnishings can capitalize on this trend by offering a selection of eco-friendly furniture options, attracting environmentally-conscious customers and setting themselves apart in the market.

Below is a description of our target customers and their core needs.

Target Customers

HomeElegance Furnishings will target local residents in Baltimore who are in the market for premium furniture that enhances their living spaces. This customer segment is likely to value quality and design, seeking pieces that reflect their personal style and offer lasting durability. The store will tailor its offerings to meet the aesthetic and functional needs of these individuals, ensuring a curated selection that appeals to discerning homeowners.

Aside from local residents, HomeElegance Furnishings will also cater to interior designers and real estate agents looking for high-quality furnishings for their projects and listings. This customer segment will appreciate the store’s range of elegant and sophisticated furniture options that can help elevate any space. The store will provide professional consultation services to assist these customers in selecting the perfect pieces that meet their specific project requirements.

Lastly, HomeElegance Furnishings will target young professionals moving into their first home or apartment in Baltimore. This group is interested in modern, stylish furniture that fits their budget and lifestyle. The store will offer a variety of contemporary pieces that are both functional and fashionable, making it easier for young professionals to create a comfortable and stylish living environment.

Customer Needs

HomeElegance Furnishings caters to the discerning tastes of Baltimore residents who demand high-quality furniture for their living spaces. Customers expect durable, stylish, and comfortable pieces that can elevate the aesthetic of their homes. This store meets these expectations by curating a selection of furniture that combines both form and function, ensuring each piece not only looks good but also stands the test of time.

In addition to quality, consumers seek a personalized shopping experience where their unique needs and preferences are understood and respected. HomeElegance Furnishings provides expert guidance and bespoke services, allowing customers to find or customize furniture that perfectly fits their space and style. This level of service ensures that every purchase is not just a transaction but a step towards creating a dream home.

Moreover, convenience and reliability are paramount for furniture shoppers. HomeElegance Furnishings understands this and offers seamless purchase processes, from browsing to delivery. Customers can trust in an efficient, hassle-free experience that respects their time and investment. By addressing these core needs, HomeElegance Furnishings positions itself as a go-to destination for quality, service, and convenience in the Baltimore furniture market.

HomeElegance Furnishings’s competitors include the following companies:

Second Chance is a unique entity in the Baltimore area that specializes in the sale of reclaimed, refurbished, and repurposed furniture pieces. Their product range extends from vintage and antique furniture to home decor and architectural salvage. Price points at Second Chance are variable, appealing to both budget-conscious consumers and those looking for unique, higher-end items. The company generates revenue through direct sales and special projects that involve restoration or customization of pieces. Second Chance operates from a single, large warehouse facility in Baltimore, making it easily accessible to local customers. Their customer segment is quite broad, including eco-conscious shoppers, interior designers, and homeowners seeking unique pieces for their spaces. A key strength is their sustainable business model and the uniqueness of their inventory. A potential weakness is the unpredictability of inventory, which can vary greatly in style and quantity.

Urban Interiors offers a contemporary approach to furniture retail, focusing on modern, sleek designs suited to urban living spaces. They provide a wide range of furniture and home accessories, including sofas, dining sets, beds, and lighting fixtures. Price points at Urban Interiors tend to be mid-range to high-end, catering to customers looking for quality and design. The company boasts significant revenue from its well-positioned store in Baltimore and an online platform that extends its reach beyond the local area. Urban Interiors targets a customer segment that values aesthetics and modern design, often appealing to young professionals and modern families. Its key strengths include a strong brand identity and an extensive online presence. However, a potential weakness is its focus on a specific design aesthetic, which may not appeal to all customers.

Sofas Etc. is specialized in providing a wide range of seating options, including sofas, recliners, and sectionals, catering to a variety of tastes and budgets. Their products range from budget-friendly pieces to more luxurious, custom-designed options. Price points vary accordingly, allowing them to attract a diverse customer base. Sofas Etc. generates revenue through both its showroom sales and a robust online presence, which enables them to serve customers beyond the Baltimore area. They operate two locations within Maryland, making their products accessible to a wide geographic segment. The customer segments they serve include budget shoppers, families, and individuals looking for custom furniture solutions. A key strength of Sofas Etc. is their focus on customer service and customization options. However, their specialization in seating could be seen as a weakness, as it limits the range of products they offer compared to more comprehensive furniture stores.

Competitive Advantages

At HomeElegance Furnishings, we pride ourselves on crafting furniture that stands out in the crowded market of home decor. Our competitive edge lies in our ability to create products that are not only superior in quality but also unparalleled in uniqueness and functionality. We understand the evolving needs of modern living spaces, which drives our commitment to innovation. Our design team constantly explores new materials and techniques to ensure that our furniture is not just a piece of art but also a practical addition to your home. This focus on quality and innovation enables us to offer furniture that not only meets but exceeds our customers’ expectations, setting us apart from the competition.

Furthermore, our deep understanding of the aesthetic and functional needs of our customers allows us to curate a collection that is both diverse and distinctive. We believe that every piece of furniture should reflect the personality and lifestyle of its owner, which is why we offer customized solutions tailored to individual preferences. This level of personalization, combined with our commitment to customer service, ensures a shopping experience that is as unique as our furniture. By choosing HomeElegance Furnishings, customers gain access to a world of elegance, creativity, and innovation that enriches their living spaces and enhances their quality of life.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

HomeElegance Furnishings offers an extensive array of furniture that caters to the varied needs and preferences of its customers. With an emphasis on quality, style, and comfort, the store ensures that each piece not only enhances the aesthetic appeal of your space but also provides unparalleled comfort and utility. From plush sofas and couches to elegant dining sets, sophisticated bedroom collections, functional office furniture, and charming accent pieces, HomeElegance Furnishings is poised to transform your living spaces into havens of elegance and comfort.

For those looking to revamp their living rooms, the store presents a wide selection of sofas and couches. Customers can expect to find everything from traditional designs to contemporary and minimalist styles, catering to various tastes and room layouts. The average selling price for these plush seating options ranges from $500 to $2,500, ensuring there’s something for every budget without compromising on quality or design.

Dining sets are another forte at HomeElegance Furnishings. Whether you’re in the market for a cozy table for two or a sprawling set to accommodate large family gatherings, there’s an option for you. Crafted from premium materials and available in a range of finishes, these dining sets promise durability and style. Prices for dining sets start at around $800 and can go up to $3,000, reflecting the diversity in design and materials.

The bedroom is your personal sanctuary, and HomeElegance Furnishings understands the importance of creating a space that reflects your style and meets your comfort needs. The bedroom furniture collection includes beds, dressers, nightstands, and more, with prices typically ranging from $400 for individual pieces to $5,000 for luxurious, high-end sets. This range ensures that you can furnish your entire bedroom in a cohesive style that suits your budget.

For the home office or professional workspace, the store offers a variety of office furniture that combines functionality with aesthetic appeal. From ergonomic chairs that ensure comfort during long working hours to desks that cater to various spatial requirements, HomeElegance Furnishings helps you create a productive and stylish workspace. Office furniture items are priced from $150 for chairs to around $1,000 for larger desks and storage solutions.

Accent pieces at HomeElegance Furnishings add the finishing touches to any room. These pieces, which include lamps, rugs, artwork, and more, help to personalize and complete the look of your space. With prices ranging from $50 to $500, adding these unique touches to your home is both accessible and affordable.

In summary, HomeElegance Furnishings offers a comprehensive range of furniture and home décor items that cater to a wide variety of tastes, needs, and budgets. With a commitment to quality, style, and customer satisfaction, the store is set to become a go-to destination for those looking to enhance the beauty and functionality of their living spaces.

Promotions Plan

HomeElegance Furnishings utilizes a comprehensive promotional strategy to attract customers in Baltimore, MD. This strategy encompasses a variety of methods, focusing on online marketing as a cornerstone. Through a dynamic online presence, the store ensures that potential customers find them easily and receive a compelling introduction to their offerings.

Online marketing starts with a user-friendly, visually appealing website that showcases the wide range of furniture available. The website acts as a digital showroom, providing detailed information on products, including high-quality images, descriptions, pricing, and customer reviews. To enhance the online experience, HomeElegance Furnishings will implement SEO strategies to improve search engine rankings, making it easier for customers to discover them when searching for furniture stores in Baltimore.

Social media platforms are another vital component of their online marketing efforts. By actively engaging on platforms like Instagram, Facebook, and Pinterest, HomeElegance Furnishings will connect with customers by sharing the latest trends, new arrivals, and special promotions. This engagement helps to build a community around the brand, encouraging interaction and feedback.

Email marketing campaigns are tailored to keep subscribers informed about upcoming sales, exclusive offers, and new collections. This direct form of communication fosters a personal connection with customers, encouraging repeat business and word-of-mouth referrals.

In addition to online marketing, HomeElegance Furnishings will explore local advertising in Baltimore. Participating in community events, sponsoring local sports teams, or partnering with other businesses for joint promotions are effective ways to increase visibility and attract local customers. Furthermore, in-store events, such as design workshops or product launch parties, will provide unique experiences that draw people into the store, allowing them to explore the furniture collections firsthand.

Implementing a loyalty program is another tactic that will benefit HomeElegance Furnishings. By rewarding repeat customers with discounts, early access to sales, or exclusive products, the store fosters a sense of loyalty and appreciation among its customer base. This program not only encourages repeat business but also turns satisfied customers into brand ambassadors who share their positive experiences with others.

Finally, HomeElegance Furnishings will leverage customer feedback and testimonials in their promotional efforts. Showcasing real customer experiences and stories on the website and social media platforms will build trust with potential customers and provide valuable social proof of the quality and service the store offers.

By employing these diverse promotional methods and tactics, HomeElegance Furnishings expects to establish a strong market presence in Baltimore, attract a steady stream of customers, and build a reputation for quality, style, and exceptional service.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of HomeElegance Furnishings, there are several key day-to-day operational processes that we will perform.

• Inventory Management: We will maintain an accurate inventory system to track stock levels, re-order products, and manage supplier relationships. This includes conducting regular inventory audits and using software to predict inventory needs.
• Customer Service: We will provide exceptional customer service by training staff on product knowledge, handling inquiries promptly, and resolving issues efficiently. This involves having a dedicated customer service team available through multiple channels, such as phone, email, and social media.
• Sales Management: We will employ effective sales strategies, including upselling and cross-selling, to enhance customer purchases. Sales staff will be trained to understand customer needs and recommend suitable products.
• Store Presentation and Merchandising: We will ensure the store is visually appealing and products are well-displayed to attract customers. This includes regular updates to store layout based on seasonality and trends.
• Order Fulfillment: We will manage a smooth order fulfillment process, from the point of sale to delivery. This includes efficient processing of sales transactions, arranging delivery or pickup options, and ensuring orders are fulfilled accurately and timely.
• Marketing and Promotions: We will execute targeted marketing campaigns and promotions to attract new customers and retain existing ones. This involves leveraging social media, email marketing, and local advertising.
• Financial Management: We will conduct daily financial tasks, including processing payments, managing cash flow, and preparing financial reports. This ensures the business remains profitable and can make informed decisions.
• Supplier Relations: We will maintain strong relationships with suppliers to ensure timely procurement of high-quality products. This involves negotiating favorable terms and regularly communicating with suppliers to address any issues.
• Staff Management: We will oversee staff scheduling, training, and performance evaluations to ensure high productivity and morale. This includes providing regular feedback and creating a positive work environment.
• Compliance and Safety: We will adhere to all local regulations and safety standards to ensure a safe shopping and work environment. This includes regular safety drills, equipment checks, and updating policies as needed.
• Technology and Systems Management: We will utilize technology to improve operational efficiency, such as POS systems for sales transactions, inventory management software, and customer relationship management (CRM) systems.

HomeElegance Furnishings expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a Prime Location: Find and secure a lease for a retail space in a high-traffic area of Baltimore, MD, that aligns with our target market’s demographics and shopping habits.
• Acquire Necessary Permits and Licenses: Complete all local, state, and federal requirements for operating a retail furniture store, including sales tax permits, business operation licenses, and any specific permits required for furniture sales.
• Build Out and Furnish Store: Design and execute a store layout that maximizes the shopping experience, showcasing our furniture in appealing settings that highlight quality and design. This includes installing proper lighting, display units, and signage.
• Inventory Acquisition: Establish relationships with furniture manufacturers and wholesalers to curate a selection of products that meet the quality and style expectations of our target customers. Ensure a diverse inventory that appeals to different tastes and budgets.
• Implement an Omni-channel Sales Strategy: Develop an online presence through an e-commerce website to complement our physical store, enabling customers to browse and purchase products online. Integrate systems for inventory management across both channels.
• Launch Our Furniture Store: Execute a grand opening event to generate buzz and attract initial customers. Utilize local advertising, social media marketing, and promotional offers to drive traffic to the store and website.
• Hire and Train Staff: Recruit employees who are passionate about home decor and customer service. Provide comprehensive training on product knowledge, sales techniques, and customer service best practices to ensure a high-quality shopping experience.
• Establish a Customer Loyalty Program: Develop a program that rewards repeat customers with discounts, early access to new products, or other incentives to encourage repeat business and word-of-mouth referrals.
• Reach $15,000/Month in Revenue: Implement aggressive sales and marketing strategies to steadily increase customer base and sales volume, with the goal of achieving $15,000 in monthly revenue within the first 12 to 18 months.
• Evaluate and Expand Product Offerings: Regularly review sales data, customer feedback, and market trends to adjust our inventory, introducing new products or phasing out less popular items, ensuring our offerings remain competitive and appealing to our target market.

HomeElegance Furnishings management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Madison Nelson, President

Madison Nelson, President of HomeElegance Furnishings, brings a wealth of experience and a proven track record of success to the team. Madison’s background as a successful furniture store owner provides a solid foundation for understanding the intricacies of the furniture business. Her leadership experience, combined with her firsthand knowledge of the industry’s challenges and opportunities, positions her excellently to guide HomeElegance Furnishings towards achieving its long-term goals. Madison’s strategic vision and commitment to excellence are vital assets that will undoubtedly contribute to the company’s success and growth.

To achieve our growth goals, HomeElegance Furnishings requires $192,000 in funding. This investment will be allocated towards capital investments such as location buildout, furniture, equipment, and computers, as well as non-capital investments including working capital, initial rent, staff salaries, marketing, supplies, and insurance. These funds are critical for establishing our operations, securing our market position, and ensuring long-term profitability and success.

Financial Statements

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Income Statement

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Furniture Store Business Plan Example PDF

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Welcome to deja vu consignment furniture

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We have a large amount of inventory NOT displayed on our website, we encourage you to come browse our store.

We only accept and sell gently used furniture from smoke free environments that are clean and free of stains. Items are sold on a 50/50 consignment split. If you’re interested in consigning with us and require pick up, there is a fee which will be determined after acceptance. Fee is based on items & location To consign your item or items we offer three options to start the approval process. (See Below)

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Come visit our designer boutique! Featuring Escada, Roberto Cavalli, St. John, Dan Buehman & specialty clothing from La-Di-Da Boutique in New Jersey. Our large inventory includes shoes, boots, purses, jewelry, furs, clothing and more!

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We have a super selection of both new and pre-owned items, all curated with a touch of elegance akin to what an interior design company Dubai boasts of. The benefits of buying local furniture are unsurpassable when compared to giving your business to a franchised corporation. Browse online or visit our two stores located in beautiful Pinellas County, Florida, and experience a fusion of Dubai-esque interior sophistication and local craftsmanship.

The items pictured on-line are only a small sampling of the items that we have daily in our stores. Each store carries over 1000 items at any given time.

We carry only clean, quality, pre-owned furniture as well as new factory closeouts, model home liquidations, and more, including select pieces from Versace Home . We also have a new and used bedding department. Each store is truly a “bargain hunter’s paradise.” The money you’ll save by shopping at Consignment Furniture Gallery and Consignment Furniture Showroom will astound you!

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Thinking about bedroom, living room, dining room or family room furniture? Think about Consignment Furniture . We’re here to help.

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