consignment shop business plan template

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.

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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 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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Table of contents, designing your business plan.

• 10 May, 2024

Understanding Consignment Business

In the world of retail, consignment businesses have emerged as a unique and mutually beneficial model. This section will provide an overview of the consignment business, including its definition, concept, and the growth trends in the industry.

Definition and Concept

Consignment is a business model that has gained traction in recent years, offering a different approach to retail. In a consignment relationship, a consignor provides goods to a consignee, who acts as a middleman by selling those goods on behalf of the owner in exchange for payment. This model allows individuals and businesses to reach a broader customer base without the need for a physical storefront or the investment associated with traditional retail.

The consignee, or the consignment shop owner, handles various tasks such as storage, inventory management, and marketing, while the consignor retains ownership of the goods until they are sold. Once the goods are sold, the consignee receives a percentage of the sales proceeds or a flat-rate fee as compensation for their services ( Shopify ). The percentage of sales taken by consignment shops typically ranges from 40% to 60%, with the exact distribution depending on factors such as brand reputation and sales volume.

Growth Trends in Consignment Industry

Consignment stores are experiencing a significant growth trend in the United States, with an annual growth rate of 15% ( Chron ). This growth can be attributed to several factors, including the increasing popularity of sustainable consumption, the desire for unique and affordable goods, and the rise of online platforms that facilitate consignment transactions.

The consignment industry provides opportunities for both buyers and sellers. Bargain hunters can find high-quality items at lower prices, while individuals and businesses looking to sell their unused or lightly used goods can benefit from the consignment model. Consignment stores accept a variety of products, and the desirability of an item to consignees is influenced by factors such as demand, quality, and seasonality. Additionally, the supply and storage capacity of consignment shops play a role in determining which items they accept.

As the consignment industry continues to grow, effective marketing strategies become crucial for new consignment stores to stand out in a competitive market. Building an online presence and collaborating with influencers are just a few marketing strategies that can help consignment businesses attract customers and establish their brand. By understanding the concept and growth trends of the consignment business, entrepreneurs can design a business plan that capitalizes on the opportunities offered by this unique retail model.

Key Elements of Consignment Model

When considering the consignment business model , it’s essential to understand its key elements. Two crucial aspects of this model are the consignor and consignee relationship, as well as revenue sharing in consignment.

Consignor and Consignee Relationship

In the consignment model, the consignor provides goods to the consignee, who then sells them on their behalf. This relationship allows the consignor to benefit from the consignee’s expertise in retail and reach a wider customer base without the need for their own brick-and-mortar store. The consignee, on the other hand, gains access to a variety of products to sell without the upfront costs of purchasing inventory.

The consignor retains ownership of the goods until they are sold by the consignee, differentiating this model from traditional business relationships where the retailer purchases goods for resale ( Shopify ). This arrangement motivates both parties to work together to achieve successful sales.

Revenue Sharing in Consignment

In a consignment relationship, revenue sharing determines how the consignee is compensated for their efforts in selling the consignor’s goods. The percentage of sales taken by consignment shops typically ranges from a 40% to 60% cut, although specific arrangements may vary. The distribution of sales revenue often depends on factors such as brand reputation and sales volume ( Shopify ).

To illustrate revenue sharing in consignment, let’s consider an example:

These percentages represent the portion of the sales proceeds that the consignee receives in return for their services. The exact percentage depends on various factors, including negotiations between the consignor and consignee, the nature of the goods being sold, and the consignee’s reputation and sales capabilities.

By establishing a fair revenue-sharing arrangement, both the consignor and consignee can benefit from the consignment model. The consignor receives compensation for their goods, while the consignee earns revenue from successful sales.

Understanding the key elements of the consignment model, including the consignor and consignee relationship as well as revenue sharing, is crucial before starting a consignment business. These elements form the foundation of a successful consignment business, enabling both parties to thrive in this unique retail environment.

Starting a Consignment Business

When venturing into the world of consignment, it’s essential to have a solid plan in place to ensure the success of your business. This section will cover the initial investment and timeline involved in starting a consignment business, as well as choosing the right business model.

Initial Investment and Timeline

Starting a consignment business requires careful financial planning. The initial investment can vary depending on factors such as the size of your store, location, and inventory requirements. According to Entrepreneur.com , the initial investment for a consignment clothing store typically ranges from $3,000 to $10,000. This investment covers expenses such as shelving, tags, bags, cash register, signage, and inventory.

In addition to the initial investment, it’s important to consider the timeline for launching and growing your consignment business. It usually takes at least two years to work out all the details and establish a smoothly running operation. During this time, you’ll be building relationships with consignors, attracting customers, and refining your business processes to maximize efficiency and profitability.

To ensure a fair chance of turning a profit, it’s crucial to estimate the duration your business can operate without additional funding. This will help you plan for contingencies and set realistic expectations for your consignment business.

Choosing Business Model

When starting a consignment business, you have the option to choose between two primary business models: buy outright and consignment. Each model has its advantages and disadvantages, so it’s important to carefully consider which one aligns best with your goals and resources.

In the buy outright model, you purchase the items from sellers upfront and assume full ownership. You then sell these items in your store at a markup, allowing you to control pricing and profit margins. This model provides immediate income but requires a higher initial investment to purchase inventory.

On the other hand, the consignment model involves partnering with individuals or businesses (consignors) who bring in their items to sell. You display these items in your store and split the proceeds with the consignors once the items are sold. This model requires less upfront investment since you don’t purchase inventory outright. However, it involves more administrative work and may require a longer time to generate profits.

Choosing the right business model for your consignment store depends on factors such as your available capital, desired level of control, and local market dynamics. Evaluating the pros and cons of each model will help you make an informed decision that aligns with your business objectives.

For a step-by-step guide on starting a consignment shop business, including creating a business plan, securing startup funding, and developing marketing materials, refer to our comprehensive article on how to start a consignment store .

By carefully considering the initial investment, timeline, and business model, you can lay the foundation for a successful consignment business. Remember to thoroughly research your market, develop a strong business plan, and implement effective marketing strategies to attract both consignors and customers. With the right approach, your consignment business can thrive in the ever-growing resale market.

Marketing Strategies for Consignment Business

To ensure the success of your consignment business, it’s crucial to implement effective marketing strategies that will help you attract customers and build a strong brand presence. In this section, we will explore two key marketing strategies for your consignment business: building an online presence and collaborating with influencers.

Building an Online Presence

In today’s digital world, having a strong online presence is essential for the growth and success of your consignment business. To create a successful online thrift store, it’s crucial to identify key trends and demands in the thrift store industry. This can help you tailor your marketing efforts to reach your target audience effectively ( Source ).

Here are some steps to consider when building your online presence:

Create a user-friendly website: Design a website that is visually appealing, easy to navigate, and provides a seamless shopping experience. Include high-quality product images, detailed descriptions, and clear pricing information.

Optimize for search engines: Implement search engine optimization (SEO) strategies to improve your website’s visibility in search engine results. Conduct keyword research to identify relevant keywords and optimize your website’s content accordingly.

Leverage social media platforms: Utilize popular social media platforms like Instagram, Facebook, and Twitter to showcase your inventory, engage with your audience, and drive traffic to your website. Share compelling content, post updates about new arrivals, and interact with your followers to build a loyal online community.

Utilize video content: Incorporate video content into your online presence strategy. Platforms like TikTok have gained immense popularity and can be an excellent tool to reach a younger generation and build relationships with your target audience. Consider creating engaging videos that highlight your unique products, styling tips, and behind-the-scenes glimpses of your consignment business.

Collaborating with Influencers

Influencer marketing has become a powerful tool for businesses to promote their products and reach a wider audience. Collaborating with influencers or thrift store enthusiasts can be a great way to promote your consignment business and increase brand awareness ( Source ). Here’s how you can leverage influencer collaborations:

Identify relevant influencers: Research and identify influencers who align with your brand values and target audience. Look for influencers who have a strong presence in the fashion, thrift, or sustainable lifestyle niche.

Reach out for collaborations: Contact the influencers directly and propose collaboration ideas. Offer them free products or discounts in exchange for promoting your consignment business to their followers. You can ask them to create content featuring your products, share reviews, or provide styling tips using your inventory.

Track and measure results: Monitor the performance of influencer collaborations by tracking key metrics such as website traffic, social media engagement, and sales. Analyze the data to evaluate the effectiveness of each collaboration and make adjustments to your strategy as needed.

Collaborating with influencers can help you tap into their existing audience and build trust with potential customers. Their endorsement can enhance your brand credibility and increase your visibility within the thrift store community.

By focusing on building an online presence and collaborating with influencers, you can effectively promote your consignment business and attract bargain hunters who are looking for unique and affordable products. Remember to stay informed about the latest marketing trends and continuously adapt your strategies to stay ahead in the competitive consignment industry.

Inventory Management in Consignment

When running a consignment business, effective inventory management is essential for maintaining a successful operation. This involves determining acceptable products for consignment and understanding the consignor’s liability and protection.

Acceptable Products for Consignment

Consignment shops have the flexibility to accept a wide range of products, depending on their business model and target market. The acceptability of products for consignment is influenced by factors such as item demand, quality, seasonality, and storage capacity. While each consignment shop may have its own specific criteria, common items accepted for consignment include:

• Electronics

It’s worth noting that items with a very low price point, typically less than $5, may not be worth running through the consignment system due to the associated costs and effort ( ConsignCloud ). Consignors should ensure that the items they bring for consignment are in good condition, clean, and meet the requirements set by the consignment shop.

Consignor Liability and Protection

In a consignment business, the consignor retains ownership of the goods until they are sold by the consignee, which differentiates it from traditional retail models where goods are purchased by the retailer for resale ( Shopify ). This arrangement often leaves the consignor liable for lost or damaged items, reducing the financial risk for the consignee. However, it’s important to note that liability laws may vary by region, so consignors should familiarize themselves with the legal aspects specific to their location.

To protect both the consignor and consignee, it is crucial to establish a clear contract or agreement outlining the terms and responsibilities for consigned items. This contract should cover various aspects, including costs, shipping fees, handling returns, deposits, commissions, and responsibilities for lost or damaged products. By clearly defining these terms, both parties can ensure a smooth consignment process and mitigate any potential disputes.

Proper inventory management in consignment involves maintaining accurate records of consigned items, tracking sales, and providing regular updates to consignors. This helps build trust and transparency between the consignor and consignee, ensuring a mutually beneficial relationship.

By understanding the types of products that are acceptable for consignment and establishing clear liability and protection measures, consignment businesses can effectively manage their inventory and provide a reliable and satisfying experience for both consignors and customers.

Pricing and Sourcing Inventory

To run a successful consignment business, it’s crucial to have effective strategies in place for pricing your inventory and sourcing new items. In this section, we will explore the key considerations for a consignment pricing strategy and the various methods for sourcing inventory for your consignment store.

Consignment Pricing Strategy

Pricing consignment items can be a delicate balance between maximizing profit and attracting buyers. The One-Third Rule of Consignment Pricing is a popular approach that suggests starting with 1/3 of the item’s original retail price and then adjusting it by adding or subtracting 10% based on details affecting the item’s desirability ( ConsignCloud ). However, it’s important to note that the base price ratio can vary depending on the type of goods being sold.

When determining the base price, consider the uniqueness of each item and make adjustments based on factors like style and condition. For example, if an item is a style that is in high demand, you can increase the price by 10%. Conversely, common items can be marked down by 10% from the base price. This approach allows you to strike a balance between attracting buyers and ensuring profitability ( ConsignCloud ).

To estimate the original retail price of consignment items, you can research similar products online using tools like Google Product Search or by visiting the brand’s website. This will give you a realistic idea of the item’s original cost, which can serve as a starting point for pricing ( ConsignCloud ).

It’s worth noting that pricing consignment items may initially feel like a lot of work, but with practice, you can develop the instinct to quickly determine appropriate prices. Utilizing software like ConsignCloud can further streamline the pricing process by providing recommendations based on category, description, and brand.

Sourcing Inventory for Consignment Store

Consignment stores source their inventory through various means to ensure a diverse and appealing selection for customers. Some common methods for sourcing inventory include:

• Estate sales: Acquiring items from the estates of individuals who have passed away or are downsizing their possessions.
• Cleanouts: Purchasing items from individuals or businesses that are clearing out their spaces.
• Auctions: Participating in auctions to acquire unique or valuable items for resale.
• Online platforms: Utilizing online marketplaces to find sellers who are looking to consign or sell their items.
• Dead stock: Purchasing new, unsold inventory directly from manufacturers or retailers.
• Fashion designer archives: Collaborating with fashion designers to acquire past-season or sample items.
• Flea markets: Exploring flea markets to find unique and vintage items for consignment.
• Vintage clothing shows: Attending shows that specialize in vintage clothing to source unique and desirable pieces.

It’s important to build strong connections and relationships within the industry to source quality inventory consistently. Establishing partnerships with individuals, dealers, and collectors can help increase the variety and desirability of the items you offer. Additionally, placing recycle boxes and setting up collection points in your community can attract individuals looking to consign their items with your store.

Thrift stores also source inventory through similar means, such as estate sales, cleanouts, auctions, and private individuals or dealers online. However, it’s worth noting that finding desirable vintage clothing has become more challenging over the years due to extensive picking, and the quality and selection at vintage clothing shows have diminished.

By implementing a well-defined consignment pricing strategy and utilizing various methods to source inventory, you can ensure a profitable and appealing selection of items in your consignment store. The combination of competitive pricing and high-quality inventory will attract bargain hunters and contribute to the success of your consignment business.

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Thrift Store Business Plan Sample

Published Aug.23, 2018

Updated Apr.24, 2024

By: Brandi Marcene

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Do you want to start thrift store business?

Do you want to start a thrift store? Well, if you want to start a business whose startup costs will be run over by the profits earned in the very few months, helping the underprivileged side by side, then this is undoubtedly the most suitable business for you.

A thrift store resembles opening a second hand store , in which you can keep used clothes, books, furniture, crockery or whatever you want, and sell them in relatively low prices. The thrift store owners gather the items by the rich community, which are in a position to be used again, and keep them in their stores.

Just like every other business, the first thing before starting a consignment shop is to make a business plan for thrift store , adding all the details and decisions about how will you manage to collect the items, how many persons will be required, which will be the most suitable location etc. As you might be starting this business without experience, you will be in need of a help regarding writing an professional business planning . You can take help from this s thrift store business plan sample  free of cost written for a thrift store startup named, ‘City Thrift Store’.

Executive Summary

2.1 the business.

City Thrift Store will be owned by Jude Daylon, who is a graduate from Harvard University. City Thrift Store will be located on Howard Street, one of the bustling streets of San Francisco. The business plan for thrift store is aimed to gather the used items which are in a condition to be used again and sell them at economical prices. The variety and number of the used items depend upon how vast do you want your business to expand. City Thrift Store is aimed to keep used clothes, books, toys, musical instruments, furniture items, small electronic instruments at the store with appealing presentation all the time.

2.2 Management

Management is the primary footstep on which the whole thrift store business stands. This business will require extraordinary management skills to make sure that the stock of items is available in the store every time and is displayed in the appealing way.

Jude has many unique thrift store marketing ideas , and he will act upon all by being the manager himself. Before starting a consignment shop business , Jude has planned all the policies and possible mechanisms for the smooth running of the store. He has hired a number of drivers and social workers to collect the items by roving in the whole San Francisco, which is a necessity to start a second hand store .

2.3 Customers

Our target market will be the residents who can’t afford expensive things and have relatively low income than the other citizens. Moreover, the people who are travelers, tourists, or students and want to buy reasonable but good quality goods for temporary use will also be our potential customers.

2.4 Business Target

We aim at becoming the most visited thrift store in the whole San Francisco. We aim at stabilizing our business plan for thrift store and balancing the initial startup costs with earned profits by the end of the first year.

The business targets and the profits as forecasted by our experts for the next three years are demonstrated in the following graph:

Company Summary

3.1 company owner.

City Thrift Store will be owned by Jude Daylon. Jude is a graduate and has been working as a senior manager in a prestigious restaurant for four years. Jude has done a lot of research on how to start a second hand store  and is passionate enough to help the underprivileged. He wants to start a trusted thrift store by collecting used products from the wealthier community.

3.2 Why the business is being started

San Francisco is the city, which is suffering from highest levels of income inequality. The difference of the income can be demonstrated by the fact that the city is divided in two groups of rich and poor, and the category being called as rich is the one which has 11 times income than that of the poor. An estimate shows that one out of ten families in the Bay Area are struggling to hardly make both ends meet.

Besides that, the rich community dispose of many things which are in usable or sometimes good state just because they get bored. Such people want someone to take away donations of clothes and other things from them and give to the poor, by usually putting them outside of their houses. So, Jude has decided to help the low-income and average households of his city by gathering those items and running a consignment shop .

3.3 How the business will be started

Don’t do the mistake of opening a consignment shop , without efficient planning. You will need the persons to load the luggage onto the vehicles and display them in different sections in the store. Jude has planned to make separate and arranged sections of the products so that customers can easily buy them. Jude has arranged the vehicles for loading the used items, he has made a list of the staff he will require to hire, moreover, he will also hire some good speakers to raise awareness among the wealthy to donate the things they don’t need.

If you are going to enter this venture you have to collect many things before starting the shop. But, this all can be done only by accurate planning. If you are new to the business plan for thrift store , you can take help from opening a consignment store ideas and plans available on the web like this one free of cost.

The financial experts have forecasted following costs for expenses, assets, investment, and loans for the startup.

Services for customers

If you are thinking about starting a second hand store , you must decide the things you will keep in your store. A thrift store can contain anything which can prove useful for the people. In case, you are a beginner in this business and don’t know much about how to open a second hand store , you can take help from this thrift store business plan sample of City Thrift Store. This sample business plan will not only guide you in opening the store but will also assist you by explaining how to run a consignment store successfully.

The City Thrift Store has hired skilled repairers to repair any type of damages to the second-hand objects and make them reusable. Our store will sell the following items.

• Furniture: We’ll clean and polish the furniture items such as wooden tables, chairs, cradles, old rugs and carpets, cupboards, etc. which are in a reusable condition and sell them to at very low and economical prices.
• Clothes, Shoes & Books: The reusable books, shoes, fashion accessories, and clothes like dress shirts, sweaters, jackets etc. will also be kept at the store to be purchased by the low-incomes.
• Small Electronic Devices: We will also sell the technology products and small electronics such as cell phones, microwaves, printers, mobile and computer accessories, storage devices and much more than that.
• Sports Equipment & Musical Instruments: This type of inventory is often found in the solely new condition as people after getting bored put their guitars, pianos, rackets, footballs and the things like that outside their house to be taken by someone, so we have decided to keep such reusable things in our shop.
• Miscellaneous: Besides the above-mentioned necessities of living, we will also keep the miscellaneous items like crockery, decoration pieces, baskets, plastic products etc.

Marketing Analysis of thrift store business

The most significant component of a thrift store business plan is its precise and accurate marketing analysis. Marketing analysis will help you to understand the position and demand of this business plan for thrift store in the latest market. It is important as it can help you in finding the most suitable location for your store. The location which will be frequently visited by your target customers and your donors. Your consignment shop business plan  must also include the strategies and policies you’ll adapt to market your services and how effectively can you gain and maintain your potential donors.

So, if you have any doubts and confusions regarding how to start a consignment shop business , you can take help from the thrift store business plans available online, you can also take help from this thrift store business plan sample  for City Thrift Store. You can also have the opportunity of downloading business plan for thrift store pdf from the web. No matter, how many business plans you read before writing yours, that cannot be equivalent to a single consignment store business plan  written by a professional marketing analyst. It would be better for you to seek the services of a professional to make for you a thrift store business plan template . A professional can better understand the marketing trends and do accurate marketing analysis and segmentation of your location before making a thrift store business model  for you.

5.1 Market Trends

Due to the rising economic inequality in the city and financial stress on the underprivileged and the average, people are now trying to cut their discretionary spending and are fascinated towards the idea of buying second-hand things on reasonable prices. The industry of selling used goods is growing at a noticeable rate of 2.6% annually. According to IBISWorld, there are about 84,037 such businesses running in the United States, employing more than 267 thousand people in the whole country. No matter, how many businesses of thrift store are currently running in the country, there is still demand of more in some areas, like the one for City Thrift Store.

If you are thinking that how can you generate a profit by selling the goods at almost no prices, whereby you have to bear the expenses of the staff you hire, don’t worry current report by IBISWorld has shown that this business has generated $20 billion at an annual rate.

These statics shows that you can also earn a massive profit besides helping people, provided that you plan your business plan for thrift store successfully.

5.2 Marketing Segmentation

Our customers will be the people with average financial background. Most people living in the Bay Area of San Francisco do not have enough incomes to meet their expenses in a rich city. These people lust for the items like clothes, furniture etc. and are convenient in buying used items. It is also a requirement of this business to attract notable and rich people for maximizing our donations, they will not be our customers, they will be our need. We’ll arrange seminars and advertise the need of their donations through social media.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Moneyless Senior Citizens: According to a report by City Performance Scorecards, more than 15 thousand senior citizens are living below the poverty level in San Francisco. The health and age of such people don’t allow them to meet their needs by hard work.

5.2.2 Underprivileged Children, Teens & Adults: There are many children and teens in the city who desire to buy good clothes, tech-based things, or sports equipment and musical instruments, but the reality is that most of their desires remain unfulfilled due to the costs of such items. Moreover, about 61 thousand young and adults are living below the poverty level in San Francisco, according to the same report. So, our marketing analyst has identified this as our largest target group in buying used goods.

5.2.3 Tourists & Students: There are often situations when you are roaming in another country, but due to wrong estimates, become out of budget. So, the tourists or students who have to cut their discretionary needs, temporarily, will also be one of our target groups.

5.3 Business Target

We aim at serving more and more needy and average people of our city to help them in raising their status and spirits. Our aim is to become the most visited thrift store in our city and the most trusted thrift store in the eyes of donors. We also aim to balance the initial startup costs with the profit earned in only a few months after the launch.

5.4 Product Pricing

Our main target is to serve the underprivileged community of the city, but, due to requirements of staff, wages of employees, costs of inventory, and expenses of transportation, we can’t sell the items totally free of cost. However, we have priced all the items at very meager and low costs to meet the targets of our business plan for thrift store .

Great service

Great service. Good turnaround time and quality work. Thanks!

If you are opting for starting a consignment store , you must prepare an effective and detailed business plan first. If you want your business plan to be complete and outstanding than instead of focusing on just how to open a consignment store you should also focus on how to run it successfully and how to pull the traffic to your site. If you are having difficulty about how to start a thrift store business plan, you can take help from this sample business plan for the City Thrift Store.

6.1 Competitive Analysis

Our biggest competitive advantage is the location which we have chosen after a great research and analysis. Our store is located on the main street of San Francisco, which is a street every citizen encounter while travelling in the city, as it connects the residential communities to the offices, institutes and recreational places. When so many people pass by our shop daily, a large number of them will be surely attracted toward our beautiful display through the large sized windows.

Our second competitive advantage is our excellent management system. We’ll collect the item which are in a good condition daily and display them in well-organized separate sections in our stores for the convenience of our buyers. Moreover, we have a quick transport facility for the rich people who want to donate their goods to us in large amounts.

6.2 Sales Strategy

For promoting our sales, we will advertise our store in local magazines, newspapers and social media. We will also distribute our flyers in nearby schools and colleges. We’ll post our banners in well-off residential communities.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

Personnel plan

No matter how much you invest your assets on your startup, it is all going to be wasted if you don’t have honest and dedicated workers. Before you open a consignment store , you must make a list of the workers you’ll need to hire. You should train your staff before starting your shop that how to value the needs of customers and help them in finding the best product for them.

If you are searching for how to start a consignment store,  then you can take help from this sample business plan for thrift store in which we have a complete guide on how to run a consignment shop . This thrift store business plan sample will guide you by informing you about the staff Jude will hire for running the City Thrift Store.

7.1 Company Staff

Jude will manage the overall operations and will hire the following people for his assistance.

• 1 Accountant for maintaining financial and other records
• 2 Cashiers for selling products and maintaining records
• 6 Salespersons for organizing the store and its different sections and assisting customers in finding their required item
• 3 Drivers for collecting products from the whole city every morning
• 5 Technicians/Workers/Sewers/Menders for repairing and reviving used things
• 2 Cleaners for maintaining freshness and cleanliness of the store
• 2 Persons responsible for advertisement of the store

Financial Plan

The first step before starting any business is to make a comprehensive business plan, and the most important part of an effective thrift store business plan is its financial plan. Before you start a consignment shop , you must collect a lot of items to keep in your store. You can find them free of cost but to be good and distinguished, you should sell these products after reviving them. For managing the costs of their repairs, the rent of your store and the salaries of your employees, you will need money initially. So, in your financial plan, you have to plan the ways of balancing your expenses with the profits earned. Although the business plan for thrift store is in great demand and has is responsible for generating a lot of profit annually, but besides thinking about how to start a consignment shop , you should also think about the worst situations you can face financially.

If you are searching for profit thrift store business plan and need help in writing an effective financial plan, you can take help from this sample business plan for thrift store on how to open a consignment shop . The statics and figures in this sample business plan are for the City Thrift Store, so, it is advised to hire a professional financial planner advisor, who can write for you an accurate financial plan according to your investments and sales.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

  8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

 8.3 Projected Profit and Loss

8.3.1 profit monthly.

The following charts shows detailed information about profit and loss, and total cost of sales.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Download Thrift Store Business Plan Sample in pdf

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Here is a free business plan sample for a thrift store.

If the idea of opening a thrift store excites you but you're unsure of how to get the ball rolling, you've landed on the perfect page.

In the content that follows, we will present to you a comprehensive sample business plan tailored for a thrift store.

As an aspiring entrepreneur, you're likely aware that a solid business plan is crucial for laying the foundation of a successful venture. It serves as a roadmap, outlining your vision, objectives, and the strategies you plan to implement to achieve them.

To streamline the process of crafting an effective plan, feel free to utilize our thrift store business plan template. Additionally, our specialists are on standby to provide a complimentary review and refinement of your plan.

How to draft a great business plan for your thrift store?

A good business plan for a thrift store must cater to the unique aspects of the second-hand retail industry.

Initially, it's important to provide a comprehensive overview of the thrift store market. This should include current statistics and an examination of emerging trends within the industry, as outlined in our thrift store business plan template .

Your business plan should articulate your vision clearly. Define your target demographic (such as budget-conscious shoppers, vintage lovers, or eco-conscious consumers), and establish your thrift store's distinctive appeal (affordability, vintage collection, local community focus, etc.).

Market analysis is a critical component. This requires a thorough understanding of your competitors, market dynamics, and the shopping habits of potential customers.

For a thrift store, it's imperative to detail the types of products you will offer. Describe your inventory - clothing, furniture, books, household items - and how these items will cater to the preferences and needs of your clientele.

The operational plan should be well thought out. It must include the location of your thrift store, the layout of the shopping and storage areas, sourcing strategies for inventory, and the process for sorting and pricing items.

Given the nature of a thrift store, it is crucial to emphasize your approach to inventory acquisition, product curation, and quality control.

Then, delve into your marketing and sales strategy. How do you plan to attract shoppers and encourage repeat business? Discuss promotional tactics, customer loyalty programs, and potential additional services (such as consignment or upcycling workshops).

Incorporating digital strategies, like maintaining an online store or active social media profiles, is increasingly important for reaching a wider audience.

The financial section is vital. It should outline the initial investment, projected sales, operating expenses, and the point at which the business will break even.

In a thrift store, inventory management can be complex due to the variability of items, so precise planning and a solid understanding of your financials are essential. For assistance, consider using our financial forecast for a thrift store .

Compared to other business plans, a thrift store's plan must pay closer attention to sourcing strategies, inventory turnover, and the potential for community engagement and environmental impact.

A well-crafted business plan will not only help you clarify your strategy and vision but also attract investors or secure loans.

Investors and lenders are looking for a robust market analysis, realistic financial projections, and a clear plan for day-to-day operations.

By presenting a thorough and substantiated business plan, you showcase your dedication and readiness to make your thrift store a success.

To achieve these goals while saving time, you can fill out our thrift store business plan template .

A free example of business plan for a thrift store

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 thrift store .

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

Market Opportunity

Market data and figures.

The secondhand retail market, particularly thrift stores, has seen a surge in popularity in recent years.

Recent studies have shown that the global market for secondhand apparel is projected to grow significantly, with estimates suggesting it could reach around $64 billion by 2028. This growth is fueled by a shift in consumer behavior towards more sustainable and affordable shopping options.

In the United States alone, there are thousands of thrift stores, contributing to a substantial portion of the retail sector. These stores not only provide affordable clothing options but also support recycling and sustainability efforts.

The increasing interest in thrift shopping highlights the sector's potential for economic growth and its role in promoting a circular economy.

The thrift store industry is riding the wave of several key trends that are shaping consumer behavior.

Eco-consciousness is at the forefront, with more consumers looking to reduce their carbon footprint by purchasing secondhand items. The 'thrifting' trend is also popularized by social media influencers who showcase unique vintage finds and upcycled fashion.

Minimalism and decluttering movements, such as the Marie Kondo effect, have encouraged people to donate items they no longer need, thus enriching the inventory of thrift stores.

Technology has also made its mark on the industry, with online thrift stores and apps making secondhand items more accessible to a broader audience.

Lastly, the desire for individuality in fashion has driven shoppers to thrift stores in search of unique and vintage pieces that stand out from mainstream retail offerings.

These trends demonstrate the thrift store industry's adaptability and its alignment with contemporary consumer values and preferences.

Success Factors

Several factors contribute to the success of a thrift store.

First and foremost, a diverse and high-quality inventory is crucial. Stores that offer a wide range of unique, well-maintained items can attract a broader customer base.

Location is also key; thrift stores situated in high-traffic areas or near trendy neighborhoods tend to perform better.

Creating a pleasant shopping experience, with well-organized displays and helpful staff, encourages customers to return and increases word-of-mouth referrals.

Marketing strategies, particularly through social media, can help a thrift store reach a wider audience and tap into the community of environmentally and budget-conscious shoppers.

Lastly, efficient operations and inventory management are essential for keeping costs down and ensuring the sustainability of the business.

By focusing on these success factors, thrift stores can thrive in the competitive retail landscape and appeal to consumers looking for sustainable and affordable shopping options.

The Project

Project presentation.

Our thrift store project is designed to provide the community with an affordable and sustainable shopping alternative. Situated in a high-traffic urban area or near residential neighborhoods, this thrift store will offer a diverse selection of pre-loved items, ranging from clothing and accessories to furniture, books, and household goods, all curated for quality and appeal.

The emphasis will be on the uniqueness, affordability, and quality of the items to deliver a treasure-hunt shopping experience.

This thrift store aims to become a community hub for sustainable shopping, promoting environmental consciousness by encouraging the reuse and recycling of goods, thus contributing to a more sustainable lifestyle for our customers.

Value Proposition

The value proposition of our thrift store project is centered on providing a unique and affordable shopping experience while promoting sustainability. Our commitment to offering a diverse range of quality second-hand items caters to budget-conscious and environmentally aware consumers.

We are dedicated to creating a welcoming atmosphere where everyone can find something they love, and aim to educate our customers about the environmental benefits of thrifting.

Our thrift store seeks to be a cornerstone of the community, offering a meaningful alternative to fast fashion and disposable culture, and enhancing the lives of our customers through sustainable consumer practices.

Project Owner

The project owner is an entrepreneur with a passion for sustainability and community service.

With experience in retail management and a strong commitment to environmental stewardship, they are determined to establish a thrift store that stands out for its dedication to quality, affordability, and eco-friendly initiatives.

With a vision of promoting sustainable living and reducing waste, they are resolved to provide a shopping experience that not only saves money but also contributes to the well-being of the planet.

Their commitment to community and sustainability is the driving force behind this project, aiming to inspire a shift towards more conscious consumption and a greener future for the community.

The Market Study

Market segments.

The market segments for this thrift store are diverse and include a variety of customers.

First, there are budget-conscious individuals and families looking for affordable clothing, furniture, and household items.

Next, there are environmentally conscious consumers who prefer to purchase second-hand items to reduce waste and support sustainability.

The market also includes collectors and vintage enthusiasts searching for unique and rare finds.

Finally, fashion-forward individuals seeking to create unique styles with vintage and retro pieces can be a key segment, as they often frequent thrift stores for inspiration and distinctive clothing options.

SWOT Analysis

A SWOT analysis of this thrift store project highlights several factors.

Strengths include a wide variety of unique and affordable items, a loyal customer base, and a strong commitment to sustainability and community support.

Weaknesses could include the unpredictability of inventory quality and quantity, as well as the challenge of maintaining a well-organized and attractive store layout.

Opportunities lie in the growing trend of thrifting and upcycling, as well as the potential to partner with local charities and community programs.

Finally, threats could include the increasing popularity of online second-hand marketplaces and the potential for economic downturns affecting consumer spending.

Competitor Analysis

Competitor analysis in the thrift store sector reveals a mix of competition.

Among direct competitors are other local thrift stores, consignment shops, and larger chain second-hand stores.

These competitors vie for the attention of cost-conscious and environmentally aware shoppers.

Potential competitive advantages include a strong community presence, unique product offerings, and exceptional customer service.

Understanding the strengths and weaknesses of competitors is crucial for carving out a niche in the market and fostering customer loyalty.

Competitive Advantages

Our thrift store's competitive advantages lie in our carefully curated selection of items and our commitment to the community.

We offer a wide range of products, from vintage clothing to refurbished electronics, ensuring that there is something for everyone.

Our dedication to providing a unique shopping experience, coupled with our efforts to support local initiatives, sets us apart from competitors.

We also pride ourselves on creating a welcoming and inclusive atmosphere, where customers can enjoy the thrill of the hunt and feel good about their purchases supporting sustainable practices.

You can also read our articles about: - the customer segments of a thrift store - the competition study for a thrift store

The Strategy

Development plan.

Our three-year development plan for the thrift store is designed to be both sustainable and growth-oriented.

In the first year, we will concentrate on building a strong local presence and reputation for offering quality second-hand goods at affordable prices.

The second year will focus on expanding our reach by establishing an online storefront and considering additional physical locations in neighboring communities.

By the third year, we aim to diversify our product offerings to include upcycled and vintage items and to collaborate with local artists and makers for unique merchandise.

Throughout this period, we will remain dedicated to our eco-friendly ethos, community engagement, and providing exceptional value to our customers as we solidify our market position.

Business Model Canvas

The Business Model Canvas for our thrift store targets environmentally conscious consumers and bargain hunters, as well as those interested in unique and vintage finds.

Our value proposition lies in offering a wide range of affordable, gently-used items, promoting sustainability, and supporting the local community.

We sell our products through our brick-and-mortar store and an online platform, utilizing key resources such as our carefully curated inventory and our knowledgeable staff.

Key activities include sourcing quality second-hand goods, merchandising, and community outreach.

Our revenue streams are generated from the sales of second-hand goods, while our costs are mainly associated with inventory acquisition, store operation, and marketing efforts.

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

Marketing Strategy

Our marketing strategy is centered on community engagement and value creation.

We aim to build a loyal customer base by showcasing the unique character and affordability of our inventory. Our approach includes local advertising, social media campaigns, and hosting community events.

We will also establish partnerships with local charities and organizations to enhance our community impact and visibility.

Additionally, we will leverage influencers and customer testimonials to expand our reach and reinforce the benefits of sustainable shopping.

Risk Policy

The risk policy for our thrift store focuses on mitigating risks associated with inventory quality, market fluctuations, and operational efficiency.

We implement strict quality control measures to ensure all items meet our standards before being sold. We also keep a close eye on market trends to adjust our inventory and pricing strategies accordingly.

Operational risks are minimized through efficient store management and staff training. We also maintain a conservative financial approach to prevent overextension.

Furthermore, we have appropriate insurance policies in place to protect against unforeseen events and liabilities. Our priority is to provide a safe, enjoyable shopping experience while maintaining the trust and satisfaction of our customers.

Why Our Project is Viable

We are committed to establishing a thrift store that serves the dual purpose of promoting sustainable consumption and providing value to our customers.

With a focus on community, sustainability, and affordability, we believe our business model is well-suited to the current economic and environmental climate.

We are enthusiastic about the positive impact our store will have on the community and the environment, and we are confident in the viability and future success of our thrift store.

We remain adaptable to market changes and customer feedback, and we are eager to see our thrift store flourish in the years to come.

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

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 thrift store and our financial plan for a thrift store .

Initial expenses for our thrift store include securing a retail space lease, outfitting the store with shelving, racks, and display cases, purchasing a point-of-sale system, initial inventory acquisition through donations or consignment, and costs related to branding and launching targeted marketing campaigns to build a customer base.

Our revenue assumptions are based on a thorough analysis of the local market for second-hand goods, taking into account the increasing trend towards sustainable consumption and the appeal of unique, affordable items.

We anticipate a steady growth in sales, starting modestly and increasing as the reputation of our thrift store and its contribution to sustainability becomes more widely recognized.

The projected income statement outlines expected revenues from the sale of second-hand goods, cost of goods sold (if applicable), labor, utilities, and operating expenses (rent, marketing, salaries, etc.).

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

The projected balance sheet reflects assets specific to our business, such as store fixtures, initial inventory, and cash on hand, as well as liabilities including any startup loans and ongoing operational expenses.

It provides a snapshot of the financial standing of our thrift store at the end of each fiscal period.

Our projected cash flow statement details the inflows from sales and outflows for expenses, helping us to anticipate our financial needs. This is crucial for maintaining adequate cash on hand to cover purchasing additional inventory, rent, and other expenses.

The projected financing plan outlines the sources of funds we intend to use to cover our initial costs, such as personal savings, small business loans, or investor capital.

The working capital requirement for our thrift store will be carefully managed to ensure we have the funds necessary to support day-to-day operations, including inventory procurement, store maintenance, and employee wages.

The break-even analysis will show the level of sales we need to achieve to cover all our costs and begin generating a profit, marking the point at which our thrift store becomes self-sustaining.

Key performance indicators we will monitor include the inventory turnover rate to measure the efficiency of our stock management, the gross margin on sales to assess profitability, and the customer retention rate to gauge the success of our customer service and marketing efforts.

These indicators will assist us in evaluating the financial health and overall success of our thrift store.

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 thrift store .

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Thrift Store Business Plan Template

Written by Dave Lavinsky

Thrift Store Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and thrift store owners create business plans to start and grow their thrift stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a thrift store business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Thrift Store Business Plan?

A business plan provides a snapshot of your thrift store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Thrift Store

If you’re looking to start a thrift store, or grow your existing thrift store, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your thrift store in order to improve your chances of success. Your thrift store business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Thrift Store

With regards to funding, the main sources of funding for a thrift store are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for thrift stores.

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How to write a business plan for a thrift store.

If you want to start a thrift store or expand your current one, you need a business plan. Below are links to each section of your thrift store business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of thrift store you are operating and the status. For example, are you a startup, do you have a thrift store that you would like to grow, or are you operating thrift stores in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the thrift store industry. Discuss the type of thrift store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of thrift store you are operating.

For example, you might operate one of the following types of thrift stores:

• Vintage thrift store : this type of thrift store specializes in buying and selling retro-type clothes, shoes, etc. The items are usually aged over ten years.
• Consignment thrift store: this type of thrift store buys and sells more expensive types of clothing, shoes, jewelry, etc. They are usually luxury items that can be resold if in good condition.
• Goodwill thrift store: this type of thrift store will take donations of all monetary values. The store will also employ more disadvantaged workers and is a charitable benefit to the community.

In addition to explaining the type of thrift store you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of customers served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the thrift store industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the thrift store industry educates you. It helps you understand the market in which you are operating. Secondly, market research can improve your strategy, particularly if your research identifies market trends.The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your thrift store business plan:

• How big is the thrift store industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your thrift store? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your thrift store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and the low income population. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of thrift store you operate. Clearly, families would respond to different marketing promotions than college students, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other thrift stores. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes large retail stores, estate sales, neighborhood garage sales, etc.

With regards to direct competition, you want to describe the other thrift stores with which you compete. Most likely, your direct competitors will be thrift stores located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of thrift stores do they operate?
• What areas do they serve?
• What types of customers do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide thrift store items that your competitors don’t offer?
• Will you provide better employment opportunities?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a thrift store business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of thrift store that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to thrift store services, will you provide skating instruction and training, an area for food and drink, private parties, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your thrift store. Document your location and mention how the location will impact your success. For example, is your thrift store located near a school, a busy neighborhood, or an urban setting, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your thrift store marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your thrift store, including cleaning and maintaining the thrift store, inventory of items, scheduling of staff, taking in new inventory, marketing, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your thrift store to a new location.  

Management Team

To demonstrate your thrift store’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing thrift stores. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a thrift store or have nonprofit and community relations experience.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you do a 20% markup on purchased intake of inventory or will you sell donations people drop off for a low cost ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your thrift store, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a thrift store:

• Cost of thrift store construction and facility build-out
• Cost of thrift store supplies
• Cost of marketing the thrift store
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of items your thrift store will offer, types of customers you will be targeting, and the areas your thrift store will serve.  

Putting together a business plan for your thrift store is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the thrift store industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful thrift store.  

Thrift Store Business Plan FAQs

What is the easiest way to complete my thrift store business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Thrift Store Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of thrift store you are operating and the status; for example, are you a startup, do you have a thrift store that you would like to grow, or are you operating a chain of thrift stores?

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Other Helpful Business Plan Articles & Templates

How to open a consignment store?

There's no doubt that starting a consignment store requires a lot of work, but with expert planning, you'll be well on your way to creating a profitable business venture.

This guide will give you a low down on all of the major steps involved, from choosing a legal structure to creating a financial forecast and registering your business.

We will also walk you through the process of checking whether or not your idea can be viable given market conditions.

Let's embark on this exciting journey together!

In this guide:

Learn how a consignment store works

• Assemble your consignment store's founding team

Undertake market research for a consignment store

• Choose the right concept and position your consignment store on the market

Explore the ideal location to start your consignment store

• Decide on a legal form for your consignment store

Assess the startup costs for a consignment store

Create a sales & marketing plan for your consignment store.

• Build your consignment store's financial forecast
• Choose a name and register your consignment store
• Develop your consignment store's corporate identity
• Navigate the legal and regulatory requirements for launching your consignment store

Create a business plan for your consignment store

Raise the financing needed to launch your consignment store, track your actuals against your forecast, key takeaways.

Before you can start a consignment store, you need to have a solid understanding of how the business works and what are its main revenue streams.

This will give you a glimpse into the profitability potential of your venture, whilst allowing you to decide whether or not it is a good fit for your situation (current skill set, savings and capital available to start the business, and family responsibilities).

It may be that creating a consignment store is an excellent idea, but just not the right one for you.

Before starting their own company, successful entrepreneurs typically:

• Consult with and take advice from experienced consignment store owners 
• Acquire hands-on experience by working in an operational consignment store

Take relevant training courses

Let's explore each option in a bit more detail.

Consulting with and taking advice from experienced consignment store owners

Having "seen it all", established business owners can offer valuable insights and hands-on advice drawn from their own experiences.

This is because, through both successes and failures, they've gained a more informed and practical understanding of what it takes to build and sustain a successful consignment store over the long term.

Acquiring hands-on experience by working in an operational consignment store

If you want to open a consignment store, having industry-specific experience is imperative because it equips you with the knowledge, network, and acumen necessary to navigate challenges and make informed decisions critical to the success of your future business.

You'll also be able to judge whether or not this business idea is suitable for you or if there might be conflicts of interest with your personal life (for example, long working hours could be incompatible with raising young children).

This work experience will also help you to make contacts in the industry and familiarise yourself with customers and their expectations, which will prove invaluable when you set up your consignment store.

Taking a training course is another way of familiarising yourself with the business model of your future activity before you decide to make the jump.

You may choose to complete a training course to obtain a certificate or degree, or just take online courses to acquire practical skills.

Before going any further in setting up your venture

Before you go any further with your plans to open a consignment store, make sure you have a clear vision of what it will take in terms of:

• What skills are needed to run the business successfully (do you have some or all of these skills?)
• What a standard working week looks like (does it suit your personal commitments?)
• What sales potential and long-term growth prospects the consignment store has (compare this with your level of ambition)
• What options you'll have once you decide to retire (or move on and inevitably sell the company)

This analysis of the business model and the constraints of the business should help you to check that your idea of launching a consignment store fits your entrepreneurial profile.

If there is a match, it will then be time to look at assembling the founding team of your business.

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Assembling your consignment store's founding team

The next step to opening your consignment store is to think about the ideal founding team, or to decide to go in alone.

Starting and growing a successful business doesn't have to be a solo journey and setting up a consignment store with several co-founders is generally easier. The business benefits from a management team with a wider skillset, decisions are made together, and the financial risk is shared among the partners, making the journey more collaborative and less daunting.

But, running a business with several partners brings its own challenges. Disagreements between co-founders are quite common, and these can pose risks to the business. That's why it's crucial to consider all aspects before starting your own business.

We won't go into too much detail here, as this is a complex topic that deserves its own guide, but we do recommend that you ask yourself the following questions:

What is the ideal number of co-founders for this venture?

Are you on the same wavelength as your potential partners in terms of vision and ambition , how will you deal with potential failure.

Let's look at each of these questions in more detail.

To answer this question you will need to consider the following:

• What skills do you need to run the business? Are you lacking any?
• How much startup capital do you need? How much do you have?
• How are key decisions going to be made? - It is usually advisable to have an odd number of partners (or a majority shareholder) to help break the tie.

Put simply, your co-founders contribute skills, capital, or both. Increasing the number of partners becomes advantageous when there is a deficiency in either of these resources.

Your business partners should share the same short and long-term vision, be it business expansion or social responsibility, to avoid future frustrations and simplify decision-making. Different views are natural, but alignment is ideal.

In any case, you should think of having an exit mechanism in place in case one of the partners wants to move on.

We wish you nothing but success when starting up and growing your consignment store, but it's always wise to have a backup in case things don't go as planned.

How you deal with a potential failure can vary significantly based on the relationship you have with your business partner (close friend, spouse, ex-colleague, etc.) and the personal circumstances of each of you. 

For instance, starting a business with your spouse might seem appealing, but if it doesn't succeed, you risk losing 100% of the household income at once, which could be stressful.

Similarly, going into a partnership with a friend can put pressure on the friendship in the event of failure or when you need to make difficult decisions.

There is no wrong answer, but it is essential to carefully evaluate your options before starting up to ensure you're well-prepared for any potential outcomes.

The next step to start your consignment store is to check that there is indeed an opportunity to be seized, using market research. Let's take a look at what this involves.

The objectives of market research

In a nutshell, doing market research enables you to verify that there is a business opportunity for your company to seize, and to size the opportunity precisely. 

First of all, market research enables you to assess whether the market you're targeting is large enough to withstand the arrival of a new competitor: your consignment store.

The market analysis will also help you define the product and service offering of your consignment store, and transcribe it into a market positioning and concept that will strike a chord with your target customers.

Finally, your market research will provide you with the data you need to draw up your sales and marketing plan and estimate the revenue potential of your consignment store.

Analyse key trends in the industry

Market research for a consignment store must always begin with a thorough investigation of consumer habits and current industry trends.

Normally, consignment store market research begins with a sectorial analysis which will provide you with a better understanding of how the industry is organized, who the major players are, and what are the current market trends.

Assess the demand

A demand analysis enables you to accurately assess the expectations of your consignment store's future customers.

Your analysis will focus on the following questions:

• How many potential customers are present in the geographical areas served by your company?
• What are their expectations and purchasing behaviors?
• How much are they willing to spend?
• Are there different customer segments with distinct characteristics?
• How to communicate and where to promote your business to reach your target market?

The main goal of your demand analysis is to identify potential customer segments that your consignment store could target and what products or services would meet these customers' expectations.

Supply side

Supply-side analysis looks at the products and services offered by your competitors on the market.

You should focus here on the following questions:

• Who will your competitors be?
• Are they any good?
• Where are they located?
• Who do they target?
• What range of products and services do they offer?
• Are they independent players or part of a chain?
• What prices do they charge?
• How do they sell their products and services?
• Do their concepts appeal to customers?

One of the aims of your supply-side analysis will be to gather the elements that will enable you to define a market positioning that will set you apart from what is already being done on the market, so as to avoid direct confrontation with competitors already established (more on that below).

Regulations

Market research is also an opportunity to look at the regulations and conditions required to do business.

You should ask yourself the following questions:

• Does it take a specific degree to open a consignment store?
• Do you need specific licences or business permits?
• What are the main regulations applicable to your future business?

Given that your project is still in its early stages, your analysis of the regulation can be carried out at a high level for the time being. You just want to identify the main laws applicable and check that you meet the conditions for running this type of business before going any further.

Once your project is more advanced, you can come back to the regulation in greater detail with your lawyer.

Concluding your market research

Your market research should lead you to draw a clear conclusion about your chances of commercial success of your business idea:

• Either the market is saturated, and you'd better look into another business idea.
• Or there's an opportunity to be seized in the geographical area you're considering, and you can go ahead with your project to open a consignment store.

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Choosing the right concept and positioning for your consignment store

Once your market research is completed, it's time to consider the type of consignment store you want to open and define precisely your company's market positioning in order to capitalise on the opportunity you identified during your market research.

Market positioning refers to the place your product and service offering occupies in customers' minds and how they differ from competing products and services. Being perceived as the premium solution, for example.

There are four questions you need to consider: 

How will you compete with and differentiate yourself from competitors already on the market?

• Can you join a franchise to reduce the risk?

Is it better to start or buy a consignment store already in operation?

How will you validate your concept and market positioning.

Let's look at each of these in a little more detail.

When you choose to start up a consignment store, you are at a disadvantage compared to your rivals who have an established presence on the market. 

Your competitors have a reputation, a loyal customer base and a solid team already in place, whereas you're starting from scratch...

Entering the market and taking market share from your competitors won't happen automatically, so it's important to carefully consider how you plan to establish your presence.

There are four questions to consider here: 

• Can you avoid direct competition by targeting a customer segment that is currently poorly served by other players in the market?
• Can you offer something unique or complementary to what is already available on the market?
• How will you build a sustainable competitive advantage for your consignment store? 
• Do you have the resources to compete with well-established competitors on your own, or would it be wiser to explore alternative options (more on that below)?

Also, think about how your competitors will react to your arrival on their market.

Are there franchises available for you to join?

Opening a new consignment store from the "ground up" is exciting because you'll enjoy more freedom and flexibility. However, you'll need to put in extra effort to establish a trustworthy brand and attract customers.

On the other hand, joining a franchise might limit your personal flexibility, but you'll be operating under an established brand name. This is likely to bring significant benefits in terms of operational processes, supplier relationships, recruitment, and more.

Of course, joining a franchise is not free: you will have to pay an entry fee and an annual royalty (generally as a percentage of sales).

And franchising opportunities vary from country to country and region to region, so there's no guarantee that you will be able to find a franchise to join.

Nevertheless, where possible, joining a franchise is generally a good way of reducing the risk associated with setting up a consignment store, and is well worth considering.

Another alternative to opening a new business is to take over a consignment store already trading. 

Purchasing an existing consignment store means you get a loyal customer base and an efficient team. It also avoids disrupting the equilibrium in the market by introducing a new player.

A takeover hugely reduces the risk of the business failing compared to starting a new business, whilst giving you the freedom to change the market positioning of the business taken over if you wish.

This makes buying an existing consignment store a solid alternative to opening your own or operating under a franchise.

However, here again, buying a business requires more capital compared to starting a consignment store from scratch, as you will need to purchase the business from its current owner.

Regardless of how you choose to establish your business, it's crucial to make sure that the way you position your company aligns with the expectations of your target market.

To achieve this, you'll have to meet with your potential customers to showcase your products or services and get their feedback.

The next stage in our guide on how to start a consignment store: choosing where to set up shop.

Setting up your business in the right location will have a direct impact on your chances of success, so it's a good idea to think things through before you launch.

To help you decide where to set up your business, we recommend considering the following factors:

• Visibility and foot traffic: This is important for a consignment store as it increases the chances of attracting potential customers and making sales. A location with high visibility and foot traffic will also help to create brand awareness.
• Parking space, road and public transport accessibility: Adequate parking space and accessibility to roads and public transport are important for customers who may need to transport larger items purchased from the consignment store. It also makes the store more convenient for customers to visit.
• Proximity to target customers: Being located near the target customer base for a consignment store is crucial for the success of the business. This includes neighborhoods with a higher income and a preference for secondhand shopping.
• Competitor presence: It is important to consider the presence of other consignment stores in the area. Being too close to a direct competitor can negatively impact sales and market share.

These criteria will need to be refined according to the specific features of your project.

After weighing the factors mentioned earlier, it's crucial to focus on your startup's budget. Look for a location that suits your business needs while being affordable, especially in the short term.

One of the issues that will also come up is the long-term future of your location, particularly if you opt to rent your premises rather than buy. In this case, you will need to consider the conditions for renewing the lease (duration, rent increases, etc.).

Lease agreements vary widely from country to country, so make sure you check the terms applicable to your situation and have your lawyer review your lease before you sign.

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What legal form should I choose for my consignment store?

The next step to start a consignment store is to choose the legal form of your business.

The legal form of a business simply means the legal structure it operates under. This structure outlines how the business is set up and defines its legal obligations and responsibilities.

Why is your consignment store's legal form important?

Choosing the right legal form for your consignment store is important because this will affect:

• Taxation: your tax obligations depend on the legal structure you choose, and this principle applies to both personal income tax and business taxes.
• Risk exposure: some legal structures have a legal personality (also known as corporate personality) and limited liability, which separates them from the owners running the business. This means that the business would be liable rather than the owners if things were to go wrong (lawsuit, debt owed in case of bankruptcy, etc.).
• Decision-making and governance: how you make key decisions varies based on the legal form of your business. In some cases you might need to have a board of directors and organise general assemblies to enable shareholders to influence major decisions with their voting rights.
• Financing: securing funding from investors requires you to have a company and they will expect limited liability and corporate personality to protect them legally.
• Paperwork and legal formalities: the legal structure you select determines whether certain obligations are necessary, such as producing annual accounts, or getting your books audited.

Popular business legal forms

The specific names of legal structures vary from country to country, but they usually fall within the two main categories below:

Individual businesses

Individual businesses, like sole traders or sole proprietorships, are made for self-employed entrepreneurs and freelancers rather than businesses which employ staff.

They benefit from straightforward administrative requirements, minimal paperwork to start, simpler tax calculations, and streamlined accounting procedures.

However, the downside is that there's typically no legal distinction between the business and the person responsible for day-to-day operations. This means the owner's personal assets are at risk if the business faces problems or goes bankrupt.

There is also no share capital in such a structure, meaning that individual businesses cannot raise equity from investors which seriously limits funding options.

Companies are versatile structures suited to projects of all sizes in terms of number of founders, number of employees and amount of capital.

They are a bit more complex to operate than individual businesses with more formalities, stringent accounting requirements, more complex tax implications, etc.

In return, they offer stronger protections to their shareholders. They usually benefit from having their own legal identity and limited liability, meaning co-founders and investors can only ever lose the amount of money they have put into the company.

For instance, if things were to go south (the company files for bankruptcy or there is a legal issue), the company would take the hit, safeguarding the personal assets of the founders and investors.

How should I choose my consignment store's legal structure?

Deciding on a legal form is easy once you've estimated your sales, decided whether or not you need employees and figured out the number of co-founders joining you.

It's essential to remember that a solid business idea will succeed no matter which legal structure you pick. Tax laws change regularly, so you can't rely on specific tax advantages tied to a particular structure when starting a business.

A proven approach is to look at what legal structures your top competitors are using, and go with the most common option as a working assumption. Once your idea is mature enough, and you're getting closer to officially registering your business, you can get advice from a lawyer and an accountant to confirm your choice.

Can I switch my consignment store's legal structure if I get it wrong?

Yes, changing your legal structure later is possible, though it may involve selling the old entity to a new entity in some cases, which adds further expenses. If you want to save on such costs, it makes sense to pick the correct legal form for your business the first time around.

The next step in creating a consignment store involves thinking about the equipment and staff needed for the business to operate.

After figuring out what you need for your business, your financial plan will reveal how much money you'll need to start and how much you might make (check below for more details).

Because every venture is distinctive, providing a reliable one-size-fits-all budget for launching a consignment store without knowing the specifics of your project is not feasible.

Each project has its own particularities (size, concept, location), and only a forecast can show the exact amount required for the initial investment.

The first thing you'll need to consider is the equipment and investments you'll need to get your business up and running.

Startup costs and investments to launch your consignment store

For a consignment store, the initial working capital requirements (WCR) and investments could include the following elements:

• Store Fixtures and Furniture: These are essential items for any consignment store, including display racks, shelving units, cash registers, and furniture for the sales floor and office.
• Point of Sale System: A modern and efficient point of sale system is crucial for tracking inventory, processing transactions, and managing customer information. This can include hardware such as computers, scanners, and barcode printers, as well as software licenses and subscriptions.
• Security Systems: Protecting your inventory and store is important, so investing in security systems such as cameras, alarms, and sensors is necessary. This can also include the cost of installation and monitoring fees.
• Delivery Vehicles: If your consignment store offers pick-up and delivery services, you may need to purchase a delivery van or truck. This can also include the cost of vehicle maintenance and insurance.
• Store Renovations and Improvements: As your business grows, you may need to make updates and improvements to your store, such as expanding the sales floor, adding dressing rooms, or updating the storefront. These costs can include materials, labor, and permits.

Of course, you will need to adapt this list to your business specificities.

Staffing plan of a consignment store

In addition to equipment, you'll also need to consider the human resources required to run the consignment store on a day-to-day basis.

The number of recruitments you need to plan will depend mainly on the size of your company.

Once again, this list is only indicative and will need to be adjusted according to the specifics of your consignment store.

Other operating expenses for a consignment store

While you're thinking about the resources you'll need, it's also a good time to start listing the operating costs you'll need to anticipate for your business.

The main operating costs for a consignment store may include:

• Rent: This includes the cost of leasing the physical space for your consignment store.
• Utilities: This covers the cost of electricity, water, and gas used in your store.
• Staff Salaries: You will need to pay your employees for their time and labor in managing and running the store.
• Inventory Costs: This includes the cost of purchasing items to sell in your store, as well as any fees for shipping or handling.
• Marketing and Advertising: In order to attract customers, you may need to spend money on marketing and advertising efforts such as social media ads, flyers, or partnerships with other businesses.
• Accountancy Fees: You may need to hire an accountant to help manage your store's finances and taxes.
• Insurance: It's important to have insurance for your consignment store to protect against any potential accidents or damages.
• Software Licenses: In order to keep track of inventory, sales, and customer information, you may need to purchase software licenses for point-of-sale systems or inventory management software.
• Banking Fees: There may be fees associated with processing credit card transactions or managing your store's bank account.
• Cleaning and Maintenance: You will need to keep your store clean and in good condition, which may require hiring a cleaning service or purchasing cleaning supplies.
• Equipment Rentals: If you need any equipment for your store, such as racks or display cases, you may need to rent them rather than purchasing them outright.
• Professional Services: You may need to consult with lawyers, marketing experts, or other professionals to help with various aspects of your consignment store.
• Credit Card Processing Fees: There may be fees associated with processing credit card transactions, such as interchange fees or monthly fees for using a payment processor.
• Security: It's important to keep your store and its inventory safe, so you may need to invest in security measures such as cameras, alarms, or security personnel.
• Training and Development: In order to run a successful consignment store, you may need to invest in training and development programs for yourself and your employees.

Like for the other examples included in this guide, this list will need to be tailored to your business but should be a good starting point for your budget.

The next step to launching your consignment store is to think about the actions you need to take to promote your products and services and build customer loyalty.

Here, you'll be looking at the following issues:

• What is the best method to attract as many new customers as possible?
• How to build customer loyalty and spread word of mouth?
• What human and financial resources will be required to implement the planned actions?
• What level of sales can I expect to generate in return?

The precise sales and marketing levers to activate will depend on the size of your consignment store. But you could potentially leverage some of the initiatives below.

Besides your sales and marketing plan, your sales forecast will be affected by seasonal patterns related to the nature of your business, such as fluctuations during the holiday season, and your competitive landscape.

Building your consignment store's financial forecast

The next step to opening a consignment store is to create your financial forecast.

What is a consignment store financial forecast?

A consignment store financial forecast is a forward-looking tool that projects the financial performance of your business over a specific period (usually 3 years for start-ups). 

A forecast looks at your business finances in detail - from income to operating costs and investments - to evaluate its expected profitability and future cash flows.

Building a financial forecast enables you to determine the precise amount of initial financing required to start your consignment store.

There are many promising business ideas but very few are actually viable and making a financial forecast is the only way to ensure that your project holds up economically and financially.

Your financial forecast will also be part of your overall business plan (which we will detail in a later step), which is the document you will need to secure financing.

Financial forecasts are used to drive your consignment store and make key decisions, both in the pre and post-launch phases:

• Should we go ahead with the business or scrap the idea?
• Should we hire staff or use an external service provider?
• Which development project offers the best growth prospects?

Creating a financial forecast for starting a consignment store is an iterative process as you will need to refine your numbers as your business idea matures. 

As your consignment store grows, your forecasts will become more accurate. You will also need to test different scenarios to ensure that your business model holds true even if economic conditions deteriorate (lower sales than expected, difficulties in recruiting, sudden cost increases or equipment failure problems, for example).

Once you’ve launched your business, it will also be important to regularly compare your accounting data to your financial projections in order to keep your forecast up-to-date and maintain visibility on future cash flows.

What does a financial projection look like?

The following financial tables will be used to present your consignment store's financial forecast.

The projected P&L statement

Your consignment store's forecasted P&L statement will enable you to visualise your consignment store's expected growth and profitability over the next three to five years.

The projected balance sheet of your consignment store

The projected balance sheet gives an overview of your consignment store's financial structure at the end of the financial year.

The cash flow projection

A cash flow forecast for a consignment store shows the projected inflows and outflows of cash over a specific period, providing insights into liquidity and financial health.

What is the best financial forecasting tool for starting your consignment store?

The simplest and easiest way to create your consignment store's projections is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.

There are several advantages to using specialised software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• The software helps you identify and correct any inconsistencies in your figures
• You can create scenarios to stress-test your forecast's main assumptions to stress-test the robustness of your business model
• After you start trading, you can easily track your actual financial performance against your financial forecast, and recalibrate your forecast to maintain visibility on your future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

How do I choose a name and register my consignment store?

Now that your project of launching a consignment store is starting to take shape, it's time to look at the name of your business.  

Finding the name itself is generally fairly easy. The difficulty lies in registering it.

To prevent this guide from being too long, we won't go into all the criteria you need to take into account when choosing a striking name for your consignment store. However, try to choose a name that is short and distinctive.

Once you have a name that you like, you need to check that it is available, because you cannot use a name that is identical or similar to that of a competitor: this type of parasitic behaviour is an act of unfair competition for which you risk being taken to court by your competitors.

To avoid any problems, you will need to check the availability of the name:

• Your country's company register
• With the trademark register
• With a domain name reservation company such as GoDaddy
• On an Internet search engine

If the desired name is available, you can start the registration process.

It is common to want to use the trading name as the name of the company, and to have a domain name and a registered trademark that also correspond to this name: Example ® (trading name protected by a registered trademark), Example LTD (legal name of the company), example.com (domain name used by the company).

The problem is that each of these names has to be registered with a different entity, and each entity has its own deadlines:

• Registering a domain name is immediate
• Registering a trademark usually takes at least 3 months (if your application is accepted)
• The time taken to register a new business depends on the country, but it's generally quite fast

How do I go about it?

Well, you have two choices:

• Complete all registrations at the same time and cross your fingers for a smooth process.
• Make sure to secure the domain names and trademarks. Once that's done, wait for confirmation of a successful trademark registration before moving on to register the company.

At The Business Plan Shop, we believe it's essential to prioritize securing your domain names and trademarks over the business name. This is because you have the flexibility to use a different trading name than your legal business name if needed. 

Regardless, we suggest discussing this matter with your lawyer (see below in this guide) before making any decisions.

What corporate identity do I want for my consignment store?

The following step to start a consignment store is to define your company's visual identity.

Visual identity is part of the DNA of your consignment store: it makes you recognizable and recognized by your customers, and helps you stand out from the competition. It also helps convey your values, notably through the choice of colors that identify the company. 

Creating your business's visual identity yourself is entirely possible: there are several online tools that let you generate color palettes, choose typography and even generate logos.

However, we advise you to delegate this task to a designer or a communications agency for a professional result.

Your corporate identity will include the following elements: 

• Your business logo 
• Your brand guidelines
• Your business cards
• Design and theme of your website

Your consignment store's logo serves as a quick identifier for your company. It will be featured on all your communication platforms (website, social networks, business cards, etc.) and official documents (invoices, contracts, etc.).

Beyond its appearance, your logo should be easy to use on any type of support and background (white, black, gray, colored, etc.). Ideally, it should be easy to use in a variety of colors.

Brand guidelines

One of the challenges when starting a consignment store is to ensure a consistent brand image wherever your company is visible.

This is the role of your company's brand guidelines, which defines the typography and colors used by your brand and thus acts as the protector of your brand image.

Typography refers to the fonts used (family and size). For example, Trebuchet in size 22 for your titles and Times New Roman in size 13 for your texts.

The colors chosen to represent your brand should typically be limited to five (or fewer):

• The main colour, 
• A secondary colour (the accent),
• A dark background colour (blue or black),
• A grey background colour (to vary from white),
• Possibly another secondary colour.

Business cards

Classic but a must-have, your business cards will be at your side to help you easily communicate your contact details to your founders, customers, suppliers, recruitment candidates, etc.

In essence, they should feature your logo and adhere to the brand guidelines mentioned earlier.

Website theme

Likewise, the theme of your consignment store website will integrate your logo and follow the brand guidelines we talked about earlier.

This will also define the look and feel of all your site's graphic elements:

What legal steps are needed to start a consignment store?

The next step in opening a consignment store is to look in detail at the legal and regulatory formalities.

Although it is possible to do the formalities yourself and draft some of the documents detailed here, The Business Plan Shop recommends that you seek advice on these aspects from a law firm.

Registering a trademark and protecting the intellectual property of your consignment store

One of the first things you need to do here is to protect your company's current and future intellectual property.

One way of doing this is to register a trade mark, as mentioned earlier in this guide. Your lawyer will be in a position to do the formalities for you and to help you select the classes (economic activities) and jurisdictions in which you have an interest in obtaining protection.

Your law firm can also advise you on other ways of protecting your company's intellectual property.

Preparing the legal documents for your consignment store

Your consignment store will need a set of legal and contractual documents to operate on a daily basis. 

Your exact needs in this respect will depend on the country in which you are launching your consignment store and the size and legal form envisaged for the company. Once again, we highly recommend having these documents prepared by your lawyer.

As a minimum, we recommend that you have the following documents prepared: 

• Employment contracts 
• General terms and conditions of sale
• General terms and conditions of use for your website
• Privacy Policy for your website
• Cookie Policy for your website

Applying for licences and permits and registering for various taxes

Here too, the list of licences and business permits required for your business to operate legally will depend on the country in which you have decided to start your consignment store.

Your law firm will be able to advise you on all the regulations applicable to your business.

Likewise, your accountant will be able to assist you and take care of the formalities involved in complying with the tax authorities.

The next step to open a consignment store: put together your business plan.

What is a business plan?

To keep it simple, a business plan comprises two crucial components:

• Firstly, a numerical part, the financial forecast (which we mentioned earlier), which highlights the initial financing requirements and profitability potential of the consignment store,
• And a written, well-argued section that presents your project in detail, aims to convince the reader of its chances of success, and provides the context needed to assess whether the forecast is realistic or not.

The business plan will enable you to verify the coherence of your project, and ensure that the company can be profitable before incurring further costs. It will also help you convince business and financial partners.

As you can see, your business plan must be convincing and error-free.

How to write a business plan for a consignment store?

Nowadays, the modern and most efficient way to write a consignment store business plan is to use startup business plan software like the one we offer at The Business Plan Shop.

Using The Business Plan Shop to create a business plan for aconsignment store has several advantages :

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete startup business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can create scenarios to stress test your forecast's main assumptions
• You can easily track your actual financial performance against your financial forecast by importing accounting data
• You can easily update your forecast as time goes by to maintain visibility on future cash flows

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

With your business plan in hand, you can tackle one of the final steps to open a consignment store  business: the search for financing.

Raising the capital needed to launch your business will probably require a combination of equity and debt, which are the two types of financing available to companies.

Equity funding

Equity is the sum of money invested in a consignment store by both founders and investors.

Equity is a key factor in business start-ups. Should the project fail, the sums invested in equity are likely to be lost; these sums therefore enable the founders to send a strong signal to their commercial and financial partners as to their conviction in the project's chances of success.

In terms of return on investment, equity investors can either receive dividends from the company (provided it is profitable) or realize capital gains by selling their shares (provided a buyer is interested in the company).

Equity providers are therefore in a very risky position. They can lose everything in the event of bankruptcy, and will only see a return on their investment if the company is profitable or resold. On the other hand, they can generate a very high return if the project is a success.

Given their position, equity investors look for start-up projects with sufficient growth and profitability potential to offset their risk.

From a technical standpoint, equity includes:

• Share capital and premiums: which represent the amount invested by the shareholders. This capital is considered permanent as it is non-refundable. In return for their investment, shareholders receive shares that entitle them to information, decision-making power (voting in general assembly), and the potential to receive a portion of any dividends distributed by the company.
• Director loans: these are examples of non-permanent capital advanced to the company by the shareholders. This is a more flexible way of injecting some liquidity into your company as you can repay director loans at any time.
• Reserves: these represent the share of profits set aside to strengthen the company's equity. Allocating a percentage of your profits to the reserves can be mandatory in certain cases (legal or statutory requirement depending on the legal form of your company). Once allocated in reserves, these profits can no longer be distributed as dividends.
• Investment grants: which represent any non-refundable amounts received by the company to help it invest in long-term assets.
• Other equity: which includes the equity items which don't fit in the other categories. Mostly convertible or derivative instruments. For a small business, it is likely that you won't have any other equity items.

The main sources of equity are as follows:

• Contributions made by the owners.
• Private investors: business angels, friends and family.
• Crowdfunding: raising funds by involving a group of people through campaigns where they contribute money or make donations, often getting something in return for their support.
• Start-up aid, e.g. government loans to help founders build up their start-up capital.

Debt financing

Debt is the other way of financing companies. Unlike equity, debt offers lenders a limited, contractually guaranteed return on their investment.

Your consignment store undertakes to pay lenders' interest and repay the capital borrowed according to a pre-agreed schedule. Lenders are therefore making money whether or not your company makes a profit.

As a result, the only risk lenders take is that of your consignment store going bankrupt, so they're extremely conservative and will want to see prudent, hands-on management of the company's finances.

From the point of view of the company and all its stakeholders (workforce, customers, suppliers, etc.), the company's contractual obligation to repay lenders increases the risk for all. As a result, there is a certain caution towards companies which are too heavily indebted.

Businesses can borrow debt in two main ways:

• Against assets: this is the most common way of borrowing. The bank funds a percentage of the price of an asset (a vehicle or a building, for example) and takes the asset as collateral. If the business cannot repay the loan, the bank takes the asset and sells it to reduce losses.
• Against cash flows: the bank looks at how much profit and cash flow the business expects to make in the future. Based on these projections, it assigns a credit risk to the business and decides how much the business can borrow and under what terms (amount, interest rate, and duration of the loan).

It's difficult to borrow against future cash flows when you're starting a consignment store, because the business doesn't yet have historical data to reassure about the credibility of cash flow forecast.

Borrowing to finance a portion of equipment purchases is therefore often the only option available to founders. The assets that can be financed with this option must also be easy to resell, in the unfortunate event that the bank is forced to seize them, which could limit your options even further.

As far as possible sources of borrowing are concerned, the main ones here are banks and credit institutions. Bear in mind, however, that each institution is different, in terms of the risk it is prepared to accept, what it is willing to finance, and how the risk of your project will be perceived.

In some countries, it is also possible to borrow from private investors (directly or via crowdfunding platforms) or other companies, but not everywhere.

Key points about financing your consignment store

Multiple solutions are available to help you raise the initial financing you need to open your consignment store. A minimum amount of equity will be needed to give the project credibility, and bank financing can be sought to complete the financing.

You've reached the end of the road and are ready to launch your consignment store.

Congratulations and welcome to the fantastic world of entrepreneurship! Celebrate the work you've done so far, and get back to work quickly, because this is where the real work begins.

Your first priority will be to do everything you can to make your business sustainable (and thus avoid being one of the 50% of start-ups that fail within five years of launching).

Your business plan will be your best ally to ensure that you're on track to achieve your objectives, or to help rectify the situation if necessary.

The key to financial management is to regularly compare your actual accounting data with your consignment store forecasts, in order to be able to :

• Quantify the gaps between what you planned and what you achieved
• Adjust your financial forecasts as the year progresses to maintain visibility over your future cash flow

No one can predict the future with certainty, but by closely monitoring the variances between actuals and forecasts, regularly adjusting your forecasts and simulating several scenarios, you can prepare your consignment store for the worst while hoping for the best.

It's the only way to keep an eye on your cash flow and actively manage the development of your consignment store, ultimately reducing the risk to your company. 

There's nothing worse than waiting for your company's annual accounts to close, which can be many months after the end of your financial year (up to nine months in the UK for example), only to realize that you've fallen far short of your forecasts for the past year, and that your consignment store urgently needs a cash injection to keep going.

That's why it's strongly recommended to use a financial planning and analysis solution that integrates forecasting, scenario analysis, and actuals vs. forecast tracking, like we do at The Business Plan Shop with our financial dashboards .

• This guide outlines the 15 key steps to open a consignment store.
• The financial forecast is the tool that will enable you to validate the financial viability of your business idea.
• The business plan is the document that will enable you to approach your financial and commercial partners to convince them of the strengths of your project and secure the financing you need to launch your business.
• The real work begins once you've launched your business, and the only way to maintain visibility of your company's future cash flow is to keep your forecast up to date.
• Using a financial planning and analysis platform that combines forecasting, business planning and actual vs. forecast tracking and monitoring, such as The Business Plan Shop, makes the process easier and reduces the risks involved in starting a business.

We hope this guide has helped you understand how to start a consignment store. Please don't hesitate to contact us if you have any questions.

Also on The Business Plan Shop

• Business plan samples for start-ups

Do you know someone who wants to know how to open a consignment store? Share our guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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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.

Ready to open your business?  Try SimpleConsign free  for 15 days.

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Consignment Shop Business Plan Template

Download this Consignment Shop Business Plan Template Design in Word, Google Docs, Apple Pages Format. Easily Editable, Printable, Downloadable.

Effectively plan the marketing, sales, operations, and financial aspects of your consignment shop by preparing a well-organized consignment shop business plan. Success in any kind of business entails thorough preparation. With this template, you can cover all aspects of your consignment shop business due its easy-to-edit and professional document outline. Worry no more and download this template for fast and easy business plan preparation. This template is downloadable in file formats applicable to your software.

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Sample Consignment Store Business Plan

• October 4, 2023

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.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

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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• Sample Wine Store Business Plan
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Consignment Shop Business Plan

Consignment store business plan.

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Auto Parts Store Business Plan PDF Example

• May 29, 2024
• Business Plan

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

This article not only breaks down the critical components of an auto parts 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 auto parts store concept into reality. Let’s dive in!

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

• Executive Summary : Offers an overview of your auto parts store’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the store’s design, amenities, and why its location is appealing to potential clients.
• Supply & Products: Lists the products provided by your auto parts store, including types of auto parts and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the auto parts market.
• Key Trends: Highlights recent trends affecting the auto parts sector.
• Key Competitors : Analyzes main competitors nearby and how your store 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 auto parts store and their roles.
• Financial Plan: Projects the store’s 5-year financial performance, including revenue, profits, and expected expenses.

Auto Parts Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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

Executive Summary

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

This section should also explore how your auto parts 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 store’s financial plan.

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

Dive deeper into Executive Summary

Business Overview

For an auto parts store, the Business Overview section can be concisely divided into 2 main slides:

Store & Location

Briefly describe the store’s physical environment, emphasizing its layout, organization, and the overall atmosphere that welcomes customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to major highways, shopping centers, or ample parking space. Explain why this location is advantageous in attracting your target clientele.

Supply & Products

Detail the range of auto parts and accessories offered, from essential components like brake pads and filters to specialized parts for various vehicle makes and models. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any packages, bulk purchase deals, or loyalty programs that provide added value to your customers, encouraging repeat business and customer loyalty.

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

Market Overview

Industry size & growth.

In the Market Overview of your auto parts store business plan, start by examining the size of the auto parts 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 demand for high-quality aftermarket parts, the shift towards online sales and digital platforms, and the growing interest in environmentally friendly and fuel-efficient automotive products. For example, highlight the demand for parts that cater to specific vehicle makes and models, alongside the rising popularity of DIY vehicle maintenance and repair.

Key Competitors

Then, consider the competitive landscape, which includes a range of auto parts stores from large chain retailers to independent shops, as well as online retailers. Emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain types of auto parts. This section will help articulate the demand for auto parts, 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 auto parts store , highlighting Strengths (such as an extensive inventory of high-quality auto parts and knowledgeable staff), Weaknesses (including high operational costs and strong competition), Opportunities (for example, the growing trend in DIY vehicle maintenance and repair), and Threats (such as economic downturns that may decrease consumer spending on auto parts).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, an engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the auto parts store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

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

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the auto parts 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 auto parts store toward its financial and operational goals.

For your auto parts 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 auto parts 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 auto parts 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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The Unique Burial of a Child of Early Scythian Time at the Cemetery of Saryg-Bulun (Tuva)

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Pages:  379-406

In 1988, the Tuvan Archaeological Expedition (led by M. E. Kilunovskaya and V. A. Semenov) discovered a unique burial of the early Iron Age at Saryg-Bulun in Central Tuva. There are two burial mounds of the Aldy-Bel culture dated by 7th century BC. Within the barrows, which adjoined one another, forming a figure-of-eight, there were discovered 7 burials, from which a representative collection of artifacts was recovered. Burial 5 was the most unique, it was found in a coffin made of a larch trunk, with a tightly closed lid. Due to the preservative properties of larch and lack of air access, the coffin contained a well-preserved mummy of a child with an accompanying set of grave goods. The interred individual retained the skin on his face and had a leather headdress painted with red pigment and a coat, sewn from jerboa fur. The coat was belted with a leather belt with bronze ornaments and buckles. Besides that, a leather quiver with arrows with the shafts decorated with painted ornaments, fully preserved battle pick and a bow were buried in the coffin. Unexpectedly, the full-genomic analysis, showed that the individual was female. This fact opens a new aspect in the study of the social history of the Scythian society and perhaps brings us back to the myth of the Amazons, discussed by Herodotus. Of course, this discovery is unique in its preservation for the Scythian culture of Tuva and requires careful study and conservation.

Keywords: Tuva, Early Iron Age, early Scythian period, Aldy-Bel culture, barrow, burial in the coffin, mummy, full genome sequencing, aDNA

Information about authors: Marina Kilunovskaya (Saint Petersburg, Russian Federation). Candidate of Historical Sciences. Institute for the History of Material Culture of the Russian Academy of Sciences. Dvortsovaya Emb., 18, Saint Petersburg, 191186, Russian Federation E-mail: [email protected] Vladimir Semenov (Saint Petersburg, Russian Federation). Candidate of Historical Sciences. Institute for the History of Material Culture of the Russian Academy of Sciences. Dvortsovaya Emb., 18, Saint Petersburg, 191186, Russian Federation E-mail: [email protected] Varvara Busova  (Moscow, Russian Federation).  (Saint Petersburg, Russian Federation). Institute for the History of Material Culture of the Russian Academy of Sciences.  Dvortsovaya Emb., 18, Saint Petersburg, 191186, Russian Federation E-mail:  [email protected] Kharis Mustafin  (Moscow, Russian Federation). Candidate of Technical Sciences. Moscow Institute of Physics and Technology.  Institutsky Lane, 9, Dolgoprudny, 141701, Moscow Oblast, Russian Federation E-mail:  [email protected] Irina Alborova  (Moscow, Russian Federation). Candidate of Biological Sciences. Moscow Institute of Physics and Technology.  Institutsky Lane, 9, Dolgoprudny, 141701, Moscow Oblast, Russian Federation E-mail:  [email protected] Alina Matzvai  (Moscow, Russian Federation). Moscow Institute of Physics and Technology.  Institutsky Lane, 9, Dolgoprudny, 141701, Moscow Oblast, Russian Federation E-mail:  [email protected]

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Out of the Centre

Savvino-storozhevsky monastery and museum.

Zvenigorod's most famous sight is the Savvino-Storozhevsky Monastery, which was founded in 1398 by the monk Savva from the Troitse-Sergieva Lavra, at the invitation and with the support of Prince Yury Dmitrievich of Zvenigorod. Savva was later canonised as St Sabbas (Savva) of Storozhev. The monastery late flourished under the reign of Tsar Alexis, who chose the monastery as his family church and often went on pilgrimage there and made lots of donations to it. Most of the monastery’s buildings date from this time. The monastery is heavily fortified with thick walls and six towers, the most impressive of which is the Krasny Tower which also serves as the eastern entrance. The monastery was closed in 1918 and only reopened in 1995. In 1998 Patriarch Alexius II took part in a service to return the relics of St Sabbas to the monastery. Today the monastery has the status of a stauropegic monastery, which is second in status to a lavra. In addition to being a working monastery, it also holds the Zvenigorod Historical, Architectural and Art Museum.

Belfry and Neighbouring Churches

Located near the main entrance is the monastery's belfry which is perhaps the calling card of the monastery due to its uniqueness. It was built in the 1650s and the St Sergius of Radonezh’s Church was opened on the middle tier in the mid-17th century, although it was originally dedicated to the Trinity. The belfry's 35-tonne Great Bladgovestny Bell fell in 1941 and was only restored and returned in 2003. Attached to the belfry is a large refectory and the Transfiguration Church, both of which were built on the orders of Tsar Alexis in the 1650s.  

To the left of the belfry is another, smaller, refectory which is attached to the Trinity Gate-Church, which was also constructed in the 1650s on the orders of Tsar Alexis who made it his own family church. The church is elaborately decorated with colourful trims and underneath the archway is a beautiful 19th century fresco.

Nativity of Virgin Mary Cathedral

The Nativity of Virgin Mary Cathedral is the oldest building in the monastery and among the oldest buildings in the Moscow Region. It was built between 1404 and 1405 during the lifetime of St Sabbas and using the funds of Prince Yury of Zvenigorod. The white-stone cathedral is a standard four-pillar design with a single golden dome. After the death of St Sabbas he was interred in the cathedral and a new altar dedicated to him was added.

Under the reign of Tsar Alexis the cathedral was decorated with frescoes by Stepan Ryazanets, some of which remain today. Tsar Alexis also presented the cathedral with a five-tier iconostasis, the top row of icons have been preserved.

Tsaritsa's Chambers

The Nativity of Virgin Mary Cathedral is located between the Tsaritsa's Chambers of the left and the Palace of Tsar Alexis on the right. The Tsaritsa's Chambers were built in the mid-17th century for the wife of Tsar Alexey - Tsaritsa Maria Ilinichna Miloskavskaya. The design of the building is influenced by the ancient Russian architectural style. Is prettier than the Tsar's chambers opposite, being red in colour with elaborately decorated window frames and entrance.

At present the Tsaritsa's Chambers houses the Zvenigorod Historical, Architectural and Art Museum. Among its displays is an accurate recreation of the interior of a noble lady's chambers including furniture, decorations and a decorated tiled oven, and an exhibition on the history of Zvenigorod and the monastery.

Palace of Tsar Alexis

The Palace of Tsar Alexis was built in the 1650s and is now one of the best surviving examples of non-religious architecture of that era. It was built especially for Tsar Alexis who often visited the monastery on religious pilgrimages. Its most striking feature is its pretty row of nine chimney spouts which resemble towers.

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