Second-hand stores are incredibly popular. The secret of success is a large selection of high-quality and inexpensive clothing. Beginning entrepreneurs are attracted to the idea of opening a second-hand store due to its small investments at the start and a fairly quick payback.
You can open a store from scratch and with a minimum of funds, for which you need to understand clothes, feel comfortable in this area and be ready, at least at first, to work as a seller yourself.
Second hand is translated from English as “second hands”. Actually, the name of the stores explains the essence of their activity - second-hand stores sell clothes that have been used, but are of such high quality and neat that thrift and cultural norms do not allow them to be thrown away.
If you break down the opening of such a business into stages, you get the following:
- Stage 1. Drawing up a business plan. The project is being implemented “on paper”. The approximate cost of equipment, premises and personnel is calculated. An image of the store is created - its name, target audience, choice of clothes.
- Stage 2. Business registration. Opening an individual entrepreneur or registering a legal entity, registration with the Pension Fund, collecting the necessary documents.
- Stage 3. Selecting a room. Depends on available funds, product and future buyers. A family clothing store will pay off in a residential area, but youth or branded clothing sells better in large shopping areas.
Sorting and preparing goods for a second-hand store. - Stage 4. Search for business partners and purchase of goods. A very important stage, because if you don’t immediately find good and reliable suppliers, you may bitterly regret it in the future. You need to check the product in person, and it wouldn’t hurt to know from experience how to distinguish a quality item from a fake.
- Stage 5. Search and hiring of personnel. For a very small retail space, staff may not be needed. But, as a rule, such stores require experienced salespeople who understand clothing and the many intricacies associated with it.
- Stage 6. Promotion. Signboard, store design, its position. If the entrepreneur is talented, the advertising campaign he invented and launched, even a quiet one, will play a big role.
Some steps can be swapped depending on the situation. The most important thing is to correctly calculate when the store will start operating - this will minimize losses and reduce time.
Even just an open individual entrepreneur, without additional expenses, requires at least 40,000 rubles a year - as contributions to the Pension Fund and taxes.
Start of work and delivery of goods
Where do the products come from, how to find a supplier, what will they buy? These points should be emphasized.
Products come to Russia, as a rule, from Europe. Large sales are usually carried out by weight. The goods will probably contain some amount of defective and outdated clothing.
But the owner himself has the right to set a price for the product, so a small number of really good things will help to stay afloat.
Second-hand clothing for young people is in equal demand among both sexes, and for children's clothing you can open a specialized store, especially if the premises are located near parks and kindergartens.
How to choose the right location for a second-hand store, see tips in this video:
Business plan: income and expenses
Suppose you want to open a small clothing store “for everyone.” The starting capital is only 300,000 rubles.
- Renting premises. Let's say we need 30 square meters in a residential area. Considering the average cost of commercial real estate, the premises will cost approximately 30-40 thousand per month. If you are lucky enough to find a municipal area, the amount can be halved.
- Equipment. Cash registers, security systems, mirrors, hangers, etc. About 70 thousand rubles.
- Staff. A month of work for two people will require another 50 thousand.
- Business registration. From 3 thousand rubles.
- Advertising and design. About 20 thousand rubles.
- The remaining money is the purchase of things for sale.
The first purchase of goods is the most important. If it is unsuccessful, the discovery may turn into a failure. In such a case, it is always better to have an insurance amount.
What is the profit? With a successful combination of circumstances, a store of this size will earn approximately 50 thousand per month in pure profit.
This means taking into account the purchase of goods, wages and other costs. But at first it will probably be much less, until the store becomes quite popular.
- Store traffic should be higher than that of grocery retail outlets. It is obvious that clothes are much less often bought just like that, on the way home - this is usually a purposeful action. The more the store is noticed, the more often they will look into it.
- Quality is more important than quantity. No one needs a huge assortment of rags unless they are sold at a very ridiculous price.
- Shares are assistants in business. Real discounts, special offers, branded products promote the store and attract new customers.
Classification of second-hand goods by Russian wholesalers by composition and price. Photo: moneymakerfactory.ru - There is no need to skimp on safety. A store with expensive items needs cameras. Their presence already influences potential but hesitant shoplifters and reduces costs.
- A large selection is needed even if there are few things. That is, alternatives are needed. A buyer may not like one type of thing, and what will he gain if, in addition to it, there are two dozen more similar things?
- Second-hand clothing without fitting rooms is a market stall. Fitting rooms should be clean with washed mirrors.
- And a little about mirrors. It may seem strange, but they have a very big impact on the success of a clothing store.
People don't look the same in different mirrors. In a good mirror and with the right lighting, a person likes himself - which means he will probably like the clothes he tries on.
Conclusion
Despite the quick payback of second-hand stores and the apparent simplicity of starting a store, they quite often “burn out.”
The expression “second-hand”, literally meaning “second hand”, in the usual understanding of the Russian man in the street, is a store where you can inexpensively buy used items. Nowadays, for many, this option for updating their wardrobe is a good way to visit expensive retail outlets. And regular customers of second-hand stores know that on the shelves you can often find new items of very good quality at a consistently low price. The ranks of buyers of such stores have recently been growing, and the demand for inexpensive items is growing. In these conditions, the idea of launching your own retail outlet can be considered relevant.
Today we will talk about whether it is profitable to open a second-hand store, and we will tell you what is required for this.
Opening a second-hand store: where to start
Opening a second-hand store from scratch is certainly easier and cheaper than. However, you should not think that the audience of such retail outlets is entirely an unassuming public, ready to buy up any cheap product. Perhaps this was the case before. But today the situation has changed. In addition, competition for second-hand stores comes from numerous discount centers and Chinese online stores offering new goods at low prices. Therefore, only a serious approach and responsible attitude to business can lead you to success in this business.
In the process of preparing to open a second-hand store, you will need to pay attention to the following points:
- registration of business activities and choice of tax regime;
- choosing a suitable platform for trading;
- supplier search;
- purchase of commercial equipment;
- formation of assortment;
- search for colleagues;
- carrying out an advertising campaign.
Resolving all these issues may take from 1 to 2 months, depending on the activity of the entrepreneur himself, since no bureaucratic barriers arise when opening such outlets.
Advice: if you don’t know how to open a second-hand store, where to start your business in this environment, try to get a job in one of these stores. This will allow you to learn some of the subtleties and nuances of the work, get to know your target audience and connect with good, reliable suppliers of products.
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Registering a business and choosing a tax system
Of all the possible options for a second-hand store, running a business as an individual entrepreneur (IP) is more suitable. It’s not difficult: you need to collect a package of documents standard for such a procedure, fill out a registration application, and contact the tax authority. The price of the issue, if you act yourself, will be 800 rubles - the amount of the duty. The registration period will not exceed five working days.
Among the arguments in favor of an individual entrepreneur as an organizational and legal form, the main one can be highlighted - this is the opportunity to use. The advantages of this tax regime are that it exempts you from the obligation to pay income tax (personal income tax), value added tax (VAT) and property tax. An entrepreneur subject to a patent tax system pays only 6% of the potential income established by the state for a specific type of activity. In this case, the patent term can range from 1 to 12 months.
Before obtaining a patent to open a second-hand store, it is necessary to determine the size of the retail space. The fact is that such a tax regime can be used for retail trade only if the sales area does not exceed 50 square meters. m.
If you plan to use a larger premises for trading, then we can recommend switching to either a simplified system with the object of taxation “Income” (see).
The area of the sales floor is not the only point that you need to pay attention to when choosing a premises. Next, we’ll take a closer look at where it’s best to place a second-hand store and what requirements apply to the parameters and layout of the store.
Retail premises and equipment
It is not recommended to open a second-hand store in the central part of the city, since high rents will “eat up” a significant part of your income. In addition, you should take into account the target audience, which is mainly concentrated in residential areas, in the vicinity of markets. Choose densely populated areas of the city, areas densely built up with apartment buildings and dormitories.
The store premises must meet sanitary, hygienic, environmental, fire and electrical safety requirements. It must be equipped with engineering systems and have a convenient entrance.
It is desirable that there are advertising structures on the facade of the building for outdoor advertising. There must be space for a large sign at the entrance to the store.
Lighting in a store plays a very important role. It is better to entrust the design of a lighting system for a retail space to professionals.
Returning to the area of retail space, we note that the optimal area for a second-hand store is from 30 to 80 square meters. m. The number of square meters required will be influenced by the trading format you choose. There are three ways to sell second-hand clothes:
- weight – when the price is set for 1 kg of goods. This method is usually used to sell unsorted items (for rags) and everyday clothes with little wear;
- pricing - when the price is set for each product. Suitable for selling new items or items with minimal wear;
- combined – when both of the above options are used in the same store.
The first method of trading does not require a large area and significant costs for equipment. You will need about 30 sq. m of retail space, several shelves and racks, commercial scales and equipment for the seller’s workplace.
If you choose the second method, then it is advisable to rent a more spacious room that can comfortably accommodate mannequins, island and wall-mounted trading systems with hangers, bag racks, and counters for accessories. It is necessary for such a store to have 1-2 fitting booths. It is not necessary to purchase new equipment; you can save money and buy used. However, it must be of high quality, in good working order, and clean.
Make sure your customers enjoy coming to your store. Make repairs before opening, work on the design. This will create additional competitive advantages for your company.
Finding suppliers and filling the store
Before starting a second-hand business, you must determine for yourself what category of goods you will sell. There is a generally accepted classification of such products into several groups, each of which has a specific purchase price. We provide a list of product categories in ascending order of quality and price:
- original - things that do not pass sorting. Lowest quality, wholesale price from 2 to 3 euros per 1 kg;
- the first category is items with varying degrees of wear, among which there are clothes with minor defects. The cost in purchase is from 3 to 5.5 euros per 1 kg;
- extra - items of good quality, without defects, with minimal wear, there are brands. The purchase price is from 5.5 to 7 euros per 1 kg;
- luxury – things without wear, there are brands, there are goods with tags. Wholesale cost from 7 to 10 euros per 1 kg;
- cream - only branded items. Price from 10 to 19 euros per 1 kg;
- stock - new clothes. Purchasing cost from 10 to 25 euros per 1 kg.
It is difficult for a person who has never bought clothes by weight to understand how many pieces of clothing there are per 1 kg. To make it easier for you to navigate, we will give an example. 10 kg of summer women's clothing (blouses, dresses, sundresses, light trousers, etc.) will contain approximately 60-65 items.
A novice entrepreneur may think that of all the possible options, it is more profitable to open a second-hand store of branded items. However, this would not be a completely correct assumption. Despite the fact that the value of popular clothing brands in the eyes of Russian consumers is quite high, the majority of buyers with a limited budget will prefer to buy new clothes from an unknown manufacturer rather than used branded ones. The exception is young people under the age of 20 and student age, who account for about 30% of the total number of second-hand store clients.
Experienced businessmen recommend forming a store’s assortment from goods of the first category and the “extra” group in a 50/50 ratio. It should be borne in mind that much depends on how conscientious a supplier you can find.
Advice: do not purchase products from those suppliers who have second-hand retail stores in their structure. Most often, such companies select the highest quality goods for their retail network, and send the remainder to wholesalers.
Where to look for suppliers
The Internet will come to your aid with the answer to this question. Today in Russia and Ukraine there are many wholesale centers offering used items from Europe and America. When deciding with whom to cooperate, pay attention to the company’s experience in the market, the number of countries from which goods are imported, the frequency of price updates, delivery conditions, and the presence of regional offices.
Many entrepreneurs do not recommend ordering goods via the Internet, since in this case there is no way to evaluate its quality. Items are delivered to customers in large plastic bags, and you will never know in advance what specific items are included in their contents. Sometimes it is advisable to personally visit the warehouse to selectively get acquainted with the approximate range of products.
Do you know which one? Examples of commercial ideas that can generate profit even in times of crisis.
Consider which can be implemented and developed in our country.
How many goods need to be purchased
When opening a second-hand store, it is quite difficult to calculate the optimal volume of inventory. Some entrepreneurs recommend purchasing products at the rate of 10 kg per 1 sq. m. However, it is worth considering that in this business such an indicator as the novelty of the assortment is also important. There are times when a large flow of customers occurs directly at the opening of a retail outlet, and in just a few days the inventory becomes scarce. Consider this moment. You must be able to quickly respond to demand and make purchases on time.
How and how much can you earn from a second-hand store? The average markup on products sold in second-hand stores is 300%. Conventionally, by purchasing a batch of 20 kg of clothing in the “extra” category and spending about 8,000 rubles on it, you can potentially earn 24,000 rubles. Your net monthly profit will depend on your turnover.
There is not a single person left who does not know what second-hand clothing is. But how to open a second-hand store and where to start as an entrepreneur? Today we will look at this issue in more detail and find out where to start, bypassing the “pitfalls”, taking a quick look at different CIS countries.
About relevance
“Second Hand” establishments are increasingly in demand among regional residents due to the intensifying crisis situation in Russia, Ukraine and other post-Soviet countries.
The seller offers to buy clothes that were previously worn by another person, but were no longer needed by him. Used clothes cost much less, but often look nice, and some models even have a brand.
Opening a second-hand store will certainly be profitable, especially if there are no competing stores around. The buyers will be the middle class, who dream of buying simply good clothes without overpaying to stores for the brand.
Young people, pensioners, as well as parents who are not ready to buy expensive clothes for a child will come, so you need to select clothes that will suit these groups of people. Also, don't expect very large sums of money.
Choice of concept
If you are not familiar with the formats of such stores, they look like this:
- Price-based is the most common selling option in a second-hand store, causing greater confidence in the product among buyers. The goods are on long hangers and divided into different thematic sectors (children's, sports, pants, etc.). The seller individually assigns his own markup for each item (from 300% and above). Sometimes there is a separate area with things at one specific price, where the least selling items are located.
- Weight - things are located on shelves or directly in boxes, less often - on hangers. The price is determined per kilogram of items, for which the seller has special scales. Buyers trust their quality less, but due to the lower cost of the product, it is also relevant. Often a price reduction scheme is used during the week. For example, goods are delivered on Monday, when the cost of items is highest (again 300% markup). Every day the price decreases, and on Sunday clothes can be bought almost at their cost.
- Mixed - many entrepreneurs prefer this particular format. Everyday clothes are also sold on hangers and have their own price, while, for example, baby clothes, sports T-shirts and other cheaper items are sold by weighing.
Decor
You must initially register your business. The appropriate legal form for this is the Sole Proprietor.
When choosing a taxation system, choose UTII, or at least the simplified tax system. It will also be important to obtain permits from the Sanitary and Epidemiological Station and the fire department, but you do not need to obtain a license. You will also need a cash register, and it must be separately registered with the tax office. The last point will be the SES Certificate.
We are looking for a reliable supplier
An aspiring entrepreneur initially enters into an agreement with one or two wholesalers in the region, because this option is good for starting a business from a financial point of view. An approximate step-by-step instruction looks like this:
- Look for someone who is experienced in this market with about 5-7 years of experience.
- If his list of products includes clothes from a variety of countries, you are extremely lucky, as this will increase your assortment and popularity with customers.
- Keep an eye out for discounts, and also try to buy a larger quantity of goods, receiving a discount for bulk.
- Try to delve into current trends and make sure that the supplier has current fashion items.
- Compare prices and assortment from different suppliers, finally creating an even base.
There is also the option of purchasing branded but outdated items from official representatives. The variety of products and their quality will bring you extremely pleasant reviews from customers, as a result of which word of mouth will play. Having already developed your business if you know English, you will be able to purchase goods from Europe yourself without intermediaries.
Here are some tips on purchasing goods for your own store:
- When receiving bags of goods, weigh each one right on the spot, checking the weight with the data recorded in the delivery note.
- Transport only bags sewn with thick threads so as not to lose the goods.
- Buy goods with the expectation that at least about ten kilos of things should fit per square meter in the retail area of the store.
- Agree with the supplier that you want to check not only the weight, but also the contents of the bags when returning low-quality goods.
- Look specifically at the wear and tear and poor quality of materials, and only then at relevance, from a fashionable and seasonal point of view.
- Particularly thorough checks are required in the areas of the inner thighs and knees of trousers, the belly of skirts, and the armpits with cuffs and collar of shirts and blouses.
If you still receive a defective product, it can be resold as rags. Their purchases of rags are carried out by car washes, oil wiping factories, as well as some similar services.
We are looking for premises
To open your own second-hand store, you need to choose a suitable establishment. Pay attention to the area - it must be at least forty square meters.
You should only look for premises in the city center in a small regional town; in larger regional centers, a second-hand store will still pay for itself.
It is not necessary to carry out renovations, but this will help attract more buyers, especially if the design style is successful and original. When choosing a room, carefully weigh its pros and cons: spaciousness, availability of natural light, need for cosmetic repairs, convenience of layout and, of course, rent.
We make a convenient layout
Every store uses advice on a sales-friendly layout. For example, a large store, like any supermarket, must have lockers for visitors where they can leave things.
For a small establishment this will be unnecessary, but you can’t forget about the fitting rooms. The minimum number of fitting booths is two, and each should be equipped with a mirror, a mat, several hooks and preferably its own lighting.
You will probably need shelving for other things and shoes, as well as areas with boxes for hanging things. The seller's area should also be comfortable. In addition to the cash register, there will be a scale and a packing table, as well as a return or hold area.
According to sanitary standards, it is necessary to ventilate the premises daily, carry out wet cleaning, wash windows and shelves, and sometimes even clean the area adjacent to the store. Opening a business means starting to take responsibility for your project, and therefore it is important to follow all the instructions of the authorities.
We select personnel
The staff will need a set of vacancies as for a regular store: an administrator or director, several salespeople and a cleaner. At first, you should take on the management functions yourself: this will help you not spend money on another person and independently control the progress of your project, learn the latest news about the business.
At first, two salespeople will handle the work of the store - one should be at the cash register, weighing and packing goods, the second should help customers and monitor the condition of things on the sales floor. Sellers must also perform the following functions:
- Place goods on the floor before the store opens.
- Monitor the safety of things and their accounting.
- Keep track of which product is selling most popularly, take into account all the “wants” from customers for the next delivery of goods.
In addition, there may be a special person on staff who is involved in PR for the second-hand store on social networks and the Internet. This will allow you to create your own online product store.
Counting expenses
| Expense line | Amount of costs, thousand rubles. | |
| 1 | Initial rent for two months | 100 – 150 |
| 2 | Repair (cosmetic) | 20 |
| 3 | Furniture | 50 |
| 4 | Public utilities | 10 |
| 5 | Paperwork | 5 |
| 6 | Purchase of goods | 150 |
| 7 | Salesperson salary | 20 x 2 |
| 8 | Cleaner's salary | 10 |
| 9 | Marketing campaign | 15 |
| 10 | Taxes | 30 |
| 11 | Unexpected expenses | 10 |
| Total: | 440 | |
Remember that you need to enter monthly expenses, which will include rent and utilities, employee salaries, additional purchase of new goods and payment of taxes.
Video: second-hand - how to open a store?
Is the business profitable?
The last thing that interests readers of our article is whether it is profitable to open a second-hand store in your city? You need to understand that this business is seasonal, so the monthly profit will change each time. On average, the owner is left with about 70 thousand rubles per month after paying all expenses.
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Few enterprises are able to survive the economic crisis, so now it is risky to open a new business. People have less money, they can afford less, and they try to save money “under the pillow.” But some business areas are gaining popularity, for example, second-hand sales. People always need clothes.
Do you want to open your own business selling second-hand items, but don’t know where to start? Of course, you can simply lay out tables with clothes in a public place, sell the goods and give about 10% to the local market director. But you will spend more time and nerves on daily delivery, display of goods + you can forget about pensions and defending your rights in court. For example, if your goods are stolen or burned.
Official work provides an opportunity to receive a pension, create jobs, and boost the economy of the region and the country as a whole. You will be able to create your brand and expand the network to several cities in the future.
In this article you will receive step-by-step instructions from idea generation and discovery to profit automation. As a bonus, we will tell you about all the pitfalls that may come your way.
- Starting investment: from 200 thousand rubles.
- Projected net profit/month: from 60 thousand rubles.
- Payback: 3.5 months.
- Number of employees: from 2 people.
- Competition: low
The prospects of second-hand stores in Russia
The less a person receives, the more his clothing budget decreases. But no one has canceled the saying “We are not so rich that we can wear cheap things” - boots for 400 rubles will wear out on the day of purchase. People want to wear high-quality clothes, but not for the money that the modern clothing market offers. Therefore, they choose second-hand goods - excellent quality at a reasonable price.
There are economy class stores that are scary to go into - with dirty floors, clothes and hangers. But in the absence of such elements and with proper promotion of the outlet, the store will make a profit and attract huge queues of customers. The main marketing idea that should be conveyed to the target audience is the quality of the fabric and tailoring, the possibility of long-term wear, and maintaining its appearance after many washing cycles. Used clothing clearly shows how it has been preserved and how it will be worn in the future.
Remember! Most of the visitors are women (they buy clothes for themselves, relatives, and friends) and schoolchildren/students (in pursuit of fashion brands). Take this into account when creating your assortment and interior design.
You can calculate your potential profit using a business plan. It is best compiled by specialists - employees of a consulting company. Most often, a business plan is needed when there is no start-up capital and you need to use investor money or a bank loan.
Business mission— regular supply of high-quality clothing to the population at low prices. Coverage of this mission on banners and in the media attracts the following categories of the population: schoolchildren, students, pensioners, young families, poor people and people with average incomes, large families, men and women with non-standard figures.
Promising second-hand stores are opening near educational institutions, dormitories, and grocery stores. It has been proven that this business brings more profit than the business of selling new things.
Financial plan
Costs of starting a business (in rubles):
- Organizational - 5000;
- For rent - from 5000;
- For wages - from 40,000;
- For purchase - from 100,000;
- For advertising - 10,000;
- For stands - 35,000;
- Others - 5000.
Thus, the approximate costs of starting a business selling second-hand goods will be 200 thousand rubles.
Types of Clothes in Second Hand Stores
What kind of clothing items are found in second-hand stores:
Elite class— ADIDAS, Hollister, Stone Island and others, i.e. Things from popular and expensive brands. Where else can you find cheap branded clothing? It is interesting that expensive stores do not disdain such a supplier as a wholesale second-hand store.
Economy class- used clothes that can be found in most stores in this area. Suppliers call this type of clothing “sorting” - items are pressed into large bales and sold by weight. You can choose from the following categories: type, wear, season, gender, etc.
Owners of successful stores purchase second-hand clothes at average prices, diluting their assortment with branded items.
Miniature business plan
What an entrepreneur will need at the start:
- The place is about 40 square meters;
- Product (10-12 kg per square meter);
- Several suppliers that offer free shipping;
- Money to cover rent, utility bills and salaries (for 3 months).
The business will be profitable if the profit from trade covers the costs of rent, utility bills, purchase of goods and taxes.
Possible risks:
- Poor quality of items if the purchase occurs without reviewing the contents;
- Sanctions on the import of second-hand goods from abroad;
- Poorly thought out pricing policy;
- Growth in average income of the population.
Step 1: Analyze the demand for future activities
First, enter the search query “population in the city N,” where “N” is the locality in which your store will be located. If the number of people in the city and surrounding villages is about 10 thousand, you can safely start. Otherwise, think about another type of activity.
Step 2: We are looking for suppliers, finding out the terms of cooperation
You can find a wholesale supplier of second-hand goods through search engines or in the taxpayer database by type of activity. A prerequisite for cooperation is the ability to view items before purchasing them. It is clear that no one will allow you to take several things from a 12-kilogram bale, but this will allow you to evaluate their quality.
Signs of a reliable supplier:
- Official registration in the unified taxpayer database;
- Long time working in this field;
- Ability to view products before purchasing;
- Free shipping;
- Sale “from one bag” (not necessary, but nice).
Some suppliers offer to buy back “unliquid goods” - goods that are not sold within a certain time. The price will be much lower than the purchase price, but you don’t need to think about its removal or destruction. This is stated in the contract. You can also sell leftovers to factories - they need rags to wipe equipment.
If suppliers do not provide the following documents, cooperation with them is impossible:
- Second-hand goods processing certificates;
- Invoices with a signature and seal (or the inscription “without seal”, if there is none);
- Certificate of sanitary examination.
Step 3: Looking for a “fishy” place
The better the location for trading is chosen, the greater the flow of visitors you can count on. A good location for a second-hand store is close to potential consumers. Close to schools, grocery stores, residential areas.
“Nearby” does not mean directly next to another store. This means the path of movement of the buyer to another store. For example, placing a second-hand store door-to-door with a grocery store is prohibited by sanitation standards.
Look for a well-ventilated building for rent with an area of 40 square meters or more. If the sales area is poorly lit by a natural light source, you will have to install additional lighting. The rented premises must be divided into a staff room, a mini-warehouse, a cash register and a sales area. There should be a toilet and washbasin nearby.
Place is one of the three pillars on which your business will stand. 30% of success depends on the right location, so it’s better to wait until you find it.
Once you've found the perfect location, speed up the next steps.
Step 4: Register an entrepreneur
Selling second-hand goods is not a business where official registration is acceptable after the promotion of the store. On the first day after opening, the local authorities will be 100% interested in you. Therefore, you collect a bag of chocolate and alcoholic products and go to the tax office. You need to find out from tax agents about the following points:
- KVEDs for conducting activities;
- Preferred form and taxes;
- Availability of local fees for your region.
In Russia, individual entrepreneurs pay a tax of 6% of turnover. If a business owner has documents confirming the costs of purchasing and delivering goods from suppliers, he can change the tax system to a more favorable one (15% of net profit).
Conducting activities as an individual entrepreneur has a big disadvantage - he bears responsibility for debts with his own property. Naturally, people try to get around this disadvantage by registering real estate in the name of relatives.
Running a business as an LLC is safer for the owner - in this case, his liability is limited only to the company’s property. But at the same time, the opportunity to freely manage the money in the account is lost - you first need to pay taxes. This disadvantage is also circumvented by simultaneously creating an individual entrepreneur and concluding an agreement on turnaround financial assistance for the required amount.
To open an official store, you need to collect a package of documents and permits:
- Certificate of business activity;
- Tax registration document;
- Trade permit;
- Permission to trade in this area;
- Lease contract;
- Cash documents;
- Journal of income and expenses (sold in printing or stationery stores) - different options are available for simplification and the general taxation system.
All documents from the list above can be obtained from local authorities or purchased at the store. Some documents for doing business can only be obtained from suppliers, but this was discussed above in the text.
Step 5: Setting up the sales area
While the documents undergo state verification, there is time to prepare the hall to receive the first visitors:
- Minimal cosmetic repairs, layout, installation of lighting lamps are being done;
- Stands and racks are placed around the hall, a cashier's place and a warehouse for storing bales of things are set up;
- A general cleaning of the premises and the road to it from the entrance + 5 meters of the surrounding area is carried out.
Step 6: Purchase of goods
While the tax office continues to prepare documents, it goes for the first batch of goods. It is advisable to find out when suppliers deliver a new batch, so as not to sort through hundreds of bags of “unliquid goods”.
Suppliers at the initial stage are enterprises that purchase goods in bulk from abroad. They buy bags weighing from 100 kg and resell packages of 20-25 kg. For the first purchase, one such wholesaler is enough.
The main condition for cooperation is the quality of the goods supplied. When the second-hand business takes off, it won’t be difficult to find direct suppliers. Unfortunately, they do not show the contents of the bales prior to purchase.
You can predict the quality of items based on the country of delivery: the Germans hand over large-sized and heavily worn clothes, the French supply items made from natural materials and moderately worn. The ideal supplier is England - there are a lot of new, unworn items in bales from this country. This is not strange - London is one of the most expensive cities in the world.
Never order second-hand goods in bulk over the phone! Only personal visits to warehouses guarantee the quality of the purchased goods. Purchases should be made locally, but before that you need to superficially study the meaning of product categories from Europe:
- Cream— the most expensive category, new branded items;
- Lux- clothing from popular brands of average cost, new or with minimal wear;
- Extra- also branded items, about 10% wear (ideal for diluting ordinary goods).
Used clothing is divided into 3 grades:
- High-quality items, little worn (ideal for purchasing);
- Partially defective or moderately worn items;
- Things that cannot be worn.
Beginners are recommended to buy sorted second-hand goods of the 1st grade + several bales of luxury items with branded items (they are added daily to stir up the interest of visitors). It is necessary to carefully inspect each item from the offered bales. We pay attention to the following places:
- Cuffs;
- Collars;
- Armpits;
- Knee;
- Tips of socks.
We tell the supplier where to deliver the goods, wait for loading and go with him. By this time, you will officially be an entrepreneur.
In addition to clothing, you need to purchase equipment:
- Large mirrors for fitting rooms;
- Hangers;
- Cash registers;
- Several mannequins;
- Boxes for storing personal belongings;
- Scales for weighing goods in the hall and at the checkout;
- Cash registers;
- Table for packing purchased goods into bags.
Step 7: Order advertising
From the standard - a sign, advertising in local newspapers, flyers for distribution. Flyers are difficult to distribute - people are embarrassed to take them in front of everyone, but you can negotiate at the post office - they will be attached to mail notifications (for a small fee). If the store is located in a residential area, we agree on the placement of signs and directions - people must be 100% sure where to go. Without this, you may lose some visitors.
Step 8: Lay out the goods
After receiving the goods, you need to determine its retail value. There are 2 pricing options:
- Sell by weight, reducing the price daily;
- Sell at a fixed price.
In the first option, it is enough to hang things by category, in the second you need to sort and mark up each item separately. Some new clothes are sold at the checkout at a fixed price. All good things must be sold with a markup of 100-150%, otherwise the business risks not being profitable.
We divide things into the following categories: women's clothing, men's clothing, children's clothing + toys. It is advisable to use hangers of the same color.
You can do the first layout yourself, and hire people for subsequent ones. You can hang a notice on the door: “We need employees to display goods. Contact the number: +7ХХХ ХХХ ХХ ХХ.”
Step 9: Opening
Good marketing is a guarantee that many buyers will come on opening day. It is advisable to place an arch of inflatable balloons at the entrance - this will attract random passers-by. Make sure that customers do not threaten other merchants - if the second-hand store is located in a shopping center. Try to be as courteous as possible with guests - the first day will be remembered for a long time.
Make sure that video surveillance is installed in the store before opening - cutting off tags and buttons, removing designer ones will reduce the attractiveness of many things.
Step 10: Hiring Employees
For a month of work, you need to determine the approximate amount of revenue per day - this will help in assessing the work of staff. If the store is popular and brings in regular profits, you can think about hiring employees.
People are divided into 2 types - those who buy second-hand goods or those who hate everything connected with it. It is advisable to hire the first to fill a cashier position. They may steal a little - put things aside for the last day, take the best on the first day, sell to friends at a lower price. But they won’t look at visitors with disgust, and a well-thought-out system of motivation and remuneration will help get rid of theft.
The latter ones are better suited for arranging things - they definitely won’t be stolen. Payment is set at 30-50 kopecks per kilogram. You can place an advertisement on the door looking for employees with your number - those who are willing will find themselves.
In addition to cashiers and merchandisers, you will need security guards or cooperation with a security company - entrepreneurs calculate what is more profitable for their region.
Step 11: Expansion
When the store gains momentum, it’s time to look for a good manager-manager. He will be involved in procurement and control the sales process. You might think about opening another department in this or a neighboring city. Remember to visit the tax office regularly.
Allocate money to develop a website where the store brand will be promoted. Here you can place offers for the sale of the best things, create a section to attract wholesale customers. If you can establish direct deliveries, you can start selling sorted bags of clothes to other stores.
Conclusion
We have described everything a novice entrepreneur needs to open a second-hand store. This is a seasonal business, so you can open a laundry, sewing studio or chemical/stationery/food store nearby - they will bring a stable income in the off-season.
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