Frugal Business Ideas – Thrift Shop

Start a Frugal Business Helping Other People Be Frugal

One great idea for a low cost business start up, that actually does well during tough economic times, is a thrift shop. There is a famous article and ebook on tgtbt.com about a woman who started her thrift shop for the $900 she had left in her bank account after she lost her job. And there was a happy ending because she had her business in the black within 6 weeks!

This business was started quite a few years ago, and $900 does not go as far as it used to go. But there are ways to start this type of consignment or resale shop for every little money, and there are some ways to do it for even less than a grand.

Finding Space for Your Thrift Shop

Ok, rent and a rental security deposit may eat up a lot of your seed money.  It will be best, of course, to place your business where you have plenty of exposure and parking. However, you may save a lot by getting a location just a bit off the main roads, and then making sure people can find it with your promotion.  Word of mouth advertising, online social networking, door hangers, and flyers can give you a lot of attention for a little bit of money.

You Save On Inventory

If you plan to start a thrift store, you inventory should cost little or nothing. Consignment stores do not have to pay for items until they are sold. Resale stores should only pay a fraction of what they expect to gain. Before you purchase any thrift store items, make sure you visit some similar shops to get a really good idea of what you can expect to sell items for. 

A Thrift Shop with No Shop?

You can start out by selling online to save up enough for rent.  You must pay for your advertisement on online auctions like EBay, but they allow you to “pay as you go” so you can get a feel for your business. Even if you do have a brick and mortar store, online sales can complement your business.

Consider A Niche

It takes awhile to learn any business, even if you are reselling other people’s used things. In addition, you may have noticed other competing thrift stores in your area. One tactic is to specialize.  What type of items do you know well? Upscale, brand name only resale shops seem to do well in any economy.  You could also consider a resale shop for baby and toddler items. These things tend to get purchased, used for awhile, and then stored in the garage.  And when I think of thrift shops, I tend to think of clothes. But there is a market for gently used furniture, tools, electronics, or applicances too.

Do you have any ideas about frugal startup businesses? You can register for free and comment.

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