When the labor market becomes calm and good work is practically impossible to find, the question arises about opening your own business. However, you should not believe tempting offers that this is possible without investing your own capital - it will be needed in any case. First of all, you need to decide on the finances that can be allocated to organize a business, and, based on this figure, look for a worthy occupation.
If you have an amount available that does not exceed several thousand dollars, you should pay attention to a business related to the sale of second-hand clothing. This business does not require any special expenses. The main expenses will be rent and wages of sellers. However, like any business, trading this type of clothing has its pitfalls.
Preliminary preparation
First of all, you need to understand what second-hand stores sell. They sell clothes coming from Europe and America. As a rule, these are already used items. On the territory of these states there are special points where you can hand over or sell old things for a small amount. As a rule, after updating their wardrobe, people get rid of old things.
After collection, used clothing is sent for treatment at high temperatures and using various antibacterial agents. Heavily worn items are sent for recycling. Wearable items are sent to suppliers.
When choosing a product, the rule applies: the further away the country, the better the product. The highest quality clothing comes from England, and the closer the country is to Russia, the lower the quality of the goods supplied. Supplies can be divided into two types with different assortments: original and sorted.
Original
In this case, the supplier packs the items after processing without sorting them. The bag can contain both new things and rags. It all depends on the integrity of the seller. However, such batches often contain fashionable and exclusive items. Bags can be from 50 to 200 kg;
Sorting
After processing, goods of this type are sent to sorting points. When purchasing sorted items, you know their purpose in advance. This makes the task easier if you know what assortment is needed. In this case, the goods are usually packaged in 30 kg bags. Things are sorted into different categories:
- Seasonal;
- Age;
- High quality;
- Gender;
- Typical.
To begin with, it is better to choose a mixed form of trading. You need to decide which product will be most in demand at your outlet, and adjust the assortment along the way.
When determining the quantity of goods, you can start from the size of the store. Approximately 20 kg per m2 of room area is required. To begin with, it is better to take more of the original. And, of course, you should take into account that the product needs to be updated every week.
- Glavstoksekondtorg;
- Mix Europe;
- Trading house of Holland.
You can independently contact foreign partners - a trip to the Baltics would be optimal. Perhaps this method will be somewhat cheaper, but you should always remember that the final result will depend on the integrity of the supplier.
In any case, at the initial phase, until the relationship with the seller has been established, it is necessary to carefully check all supplied goods. It is better to make payment upon receipt.
Necessary package of documents for opening a store
After preliminary research, you can begin to formalize your work activity. To do this, you need to register as an individual entrepreneur and register with the tax office.
In this case, it is necessary to decide on the taxation system. For clothing stores, two systems are most acceptable, from which you need to choose the best one for yourself:
- USN. A simplified tax system, which requires an individual entrepreneur to pay only one tax. It can be a percentage of income or the difference between income and expenses;
- UTII. A single tax on imputed income is applicable for certain activities. It is taken from the estimated income and does not depend on revenue.
To determine the system, you need to work out in detail the structure of your business. The economic feasibility of the chosen system depends on every nuance of the activity. To make the right decision, it is best to contact specialists. They can also help with paperwork.
At the next stage, you need to find premises for the store and conclude a lease agreement. By obtaining permits to trade and operate a store, the process of completing basic documents is completed.
However, the specifics of trade in second-hand goods require additional documents:
- Concluding a sanitary inspection station for the store premises, as well as concluding contracts for disinfection and deratization;
- Permission from Rospotrebnadzor;
- Sanitary and industrial control program;
- Contract for removal of solid waste.
It must be remembered that any violation of financial or environmental requirements will entail large financial problems. Therefore, you should be very careful when preparing documentation.
Choosing a commercial premises
You need to start by choosing a trading area. The store does not have to be located on the main streets. Sleeping areas where the entire population is mainly concentrated are ideal. You should also remember that second-hand stores are prohibited from opening in the same area as grocery stores.
When choosing a room, you need to pay attention to how many people pass near it during the day, and whether there are transport stops nearby. Some people are embarrassed to visit such stores, so some distance from crowded places may attract additional customers. But at the same time, they install signs that attract attention and show the way.
The room does not require any special sophistication. You can do ordinary cosmetic repairs. The first equipment you will need is tubes that are attached to the walls. Hangers with clothes are hung on them. At a minimum, two fitting booths will be required. You also need a counter and a cash register. With a large assortment, shelves and racks may be needed.
When choosing a room, you should not settle on areas smaller than 40 m2. A small store area will make the business unprofitable. For a large turnover, it is necessary to have a large quantity of cheap goods - only this will contribute to obtaining a good profit.
Selecting personnel for the store
It is best to start this business as a family business. In this case, there will be no need for hired employees. One person can handle supplies and accounting. And the second one is in the store and sells goods. When expanding your business, you can attract relatives. In this case, there is no need to control the sellers.
If it is necessary to select sellers, preference should be given to sociable people with experience in trading. At the same time, you should not refuse the probationary period in order to better know the business qualities of the applicant. If financial issues cause difficulties, it is better to invite an accountant.
Advertising company or how to attract clients?
It is also advisable to order business cards for the store and distribute them to customers. In addition, it is necessary to reach nearby houses and distribute printed advertisements to mailboxes. With the expansion of the business and its successful development, you can connect radio and the press.
To promote your business, it’s good to create a page on the Internet or use social networks. In the modern world this is a very effective method.
Which one should I buy? Our article will help you choose the most profitable option.
To open a clothing store, carefully study the article.
How to choose a seller? The job description described below will help you determine the rights and responsibilities of the parties.
Step-by-step instructions for opening a second-hand store
Let's look at the main stages and approximate costs when opening a store selling second-hand items. All costs will depend on the region of residence, the taxation system, the method of document preparation and many other nuances. Preparation of all documentation. It is difficult to indicate any numbers here.
It all depends on whether the documents will be drawn up on their own or whether professionals will do it. In the first case, you can save a lot.
- Renting premises. The cost of rent is influenced by a huge number of factors. On average, this is 50,000 rubles per month for a room of 50 m2;
- Equipment. These are one-time expenses; in the case of second-hand stores, there is no need for a large amount. Therefore, 50,000 rubles should be enough;
- Salary. When using hired labor, the cost of two sellers per month will be approximately 50,000 rubles;
- Product. The first purchase of goods requires about 150,000 rubles. For repeated purchases, even a quarter of the initial amount is enough;
- The monthly revenue of such a store can be about 300,000 rubles. A second-hand store can pay for itself within a year.
However, when opening a business, you should remember that all possible risks when running a business fall on the owner. Therefore, the success of the endeavor will depend on:
- Professional skills of an entrepreneur;
- Business qualities of the store owner;
- Successful development of trade.
- The decision must be made individually after weighing the pros and cons.
In contact with
Few enterprises are able to survive the economic crisis, so now it is risky to open a new business. People have less money, they can afford less, and they try to save money “under the pillow.” But some business areas are gaining popularity, for example, second-hand sales. People always need clothes.
Do you want to open your own business selling second-hand items, but don’t know where to start? Of course, you can simply lay out tables with clothes in a public place, sell the goods and give about 10% to the local market director. But you will spend more time and nerves on daily delivery, display of goods + you can forget about pensions and defending your rights in court. For example, if your goods are stolen or burned.
Official work provides an opportunity to receive a pension, create jobs, and boost the economy of the region and the country as a whole. You will be able to create your brand and expand the network to several cities in the future.
In this article you will receive step-by-step instructions from idea generation and discovery to profit automation. As a bonus, we will tell you about all the pitfalls that may come your way.
- Starting investment: from 200 thousand rubles.
- Projected net profit/month: from 60 thousand rubles.
- Payback: 3.5 months.
- Number of employees: from 2 people.
- Competition: low
The prospects of second-hand stores in Russia
The less a person receives, the more his clothing budget decreases. But no one has canceled the saying “We are not so rich that we can wear cheap things” - boots for 400 rubles will wear out on the day of purchase. People want to wear high-quality clothes, but not for the money that the modern clothing market offers. Therefore, they choose second-hand goods - excellent quality at a reasonable price.
There are economy class stores that are scary to go into - with dirty floors, clothes and hangers. But in the absence of such elements and with proper promotion of the outlet, the store will make a profit and attract huge queues of customers. The main marketing idea that should be conveyed to the target audience is the quality of the fabric and tailoring, the possibility of long-term wear, and maintaining its appearance after many washing cycles. Used clothing clearly shows how it has been preserved and how it will be worn in the future.
Remember! Most of the visitors are women (they buy clothes for themselves, relatives, and friends) and schoolchildren/students (in pursuit of fashion brands). Take this into account when creating your assortment and interior design.
You can calculate your potential profit using a business plan. It is best compiled by specialists - employees of a consulting company. Most often, a business plan is needed when there is no start-up capital and you need to use investor money or a bank loan.
Business mission— regular supply of high-quality clothing to the population at low prices. Coverage of this mission on banners and in the media attracts the following categories of the population: schoolchildren, students, pensioners, young families, poor people and people with average incomes, large families, men and women with non-standard figures.
Promising second-hand stores are opening near educational institutions, dormitories, and grocery stores. It has been proven that this business brings more profit than the business of selling new things.
Financial plan
Costs of starting a business (in rubles):
- Organizational - 5000;
- For rent - from 5000;
- For wages - from 40,000;
- For purchase - from 100,000;
- For advertising - 10,000;
- For stands - 35,000;
- Others - 5000.
Thus, the approximate costs of starting a business selling second-hand goods will be 200 thousand rubles.
Types of Clothes in Second Hand Stores
What kind of clothing items are found in second-hand stores:
Elite class— ADIDAS, Hollister, Stone Island and others, i.e. Things from popular and expensive brands. Where else can you find cheap branded clothing? It is interesting that expensive stores do not disdain such a supplier as a wholesale second-hand store.
Economy class- used clothes that can be found in most stores in this area. Suppliers call this type of clothing “sorting” - items are pressed into large bales and sold by weight. You can choose from the following categories: type, wear, season, gender, etc.
Owners of successful stores purchase second-hand clothes at average prices, diluting their assortment with branded items.
Miniature business plan
What an entrepreneur will need at the start:
- The place is about 40 square meters;
- Product (10-12 kg per square meter);
- Several suppliers that offer free shipping;
- Money to cover rent, utility bills and salaries (for 3 months).
The business will be profitable if the profit from trade covers the costs of rent, utility bills, purchase of goods and taxes.
Possible risks:
- Poor quality of items if the purchase occurs without reviewing the contents;
- Sanctions on the import of second-hand goods from abroad;
- Poorly thought out pricing policy;
- Growth in average income of the population.
Step 1: Analyze the demand for future activities
First, enter the search query “population in the city N,” where “N” is the locality in which your store will be located. If the number of people in the city and surrounding villages is about 10 thousand, you can safely start. Otherwise, think about another type of activity.
Step 2: We are looking for suppliers, finding out the terms of cooperation
You can find a wholesale supplier of second-hand goods through search engines or in the taxpayer database by type of activity. A prerequisite for cooperation is the ability to view items before purchasing them. It is clear that no one will allow you to take several things from a 12-kilogram bale, but this will allow you to evaluate their quality.
Signs of a reliable supplier:
- Official registration in the unified taxpayer database;
- Long time working in this field;
- Ability to view products before purchasing;
- Free shipping;
- Sale “from one bag” (not necessary, but nice).
Some suppliers offer to buy back “unliquid goods” - goods that are not sold within a certain time. The price will be much lower than the purchase price, but you don’t need to think about its removal or destruction. This is stated in the contract. You can also sell leftovers to factories - they need rags to wipe equipment.
If suppliers do not provide the following documents, cooperation with them is impossible:
- Second-hand goods processing certificates;
- Invoices with a signature and seal (or the inscription “without seal”, if there is none);
- Certificate of sanitary examination.
Step 3: Looking for a “fishy” place
The better the location for trading is chosen, the greater the flow of visitors you can count on. A good location for a second-hand store is close to potential consumers. Close to schools, grocery stores, residential areas.
“Nearby” does not mean directly next to another store. This means the path of movement of the buyer to another store. For example, placing a second-hand store door-to-door with a grocery store is prohibited by sanitation standards.
Look for a well-ventilated building for rent with an area of 40 square meters or more. If the sales area is poorly lit by a natural light source, you will have to install additional lighting. The rented premises must be divided into a staff room, a mini-warehouse, a cash register and a sales area. There should be a toilet and washbasin nearby.
Place is one of the three pillars on which your business will stand. 30% of success depends on the right location, so it’s better to wait until you find it.
Once you've found the perfect location, speed up the next steps.
Step 4: Register an entrepreneur
Selling second-hand goods is not a business where official registration is acceptable after the promotion of the store. On the first day after opening, the local authorities will be 100% interested in you. Therefore, you collect a bag of chocolate and alcoholic products and go to the tax office. You need to find out from tax agents about the following points:
- KVEDs for conducting activities;
- Preferred form and taxes;
- Availability of local fees for your region.
In Russia, individual entrepreneurs pay a tax of 6% of turnover. If a business owner has documents confirming the costs of purchasing and delivering goods from suppliers, he can change the tax system to a more favorable one (15% of net profit).
Conducting activities as an individual entrepreneur has a big disadvantage - he bears responsibility for debts with his own property. Naturally, people try to get around this disadvantage by registering real estate in the name of relatives.
Running a business as an LLC is safer for the owner - in this case, his liability is limited only to the company’s property. But at the same time, the opportunity to freely manage the money in the account is lost - you first need to pay taxes. This disadvantage is also circumvented by simultaneously creating an individual entrepreneur and concluding an agreement on financial assistance for the required amount.
To open an official store, you need to collect a package of documents and permits:
- Certificate of business activity;
- Tax registration document;
- Trade permit;
- Permission to trade in this area;
- Lease contract;
- Cash documents;
- Journal of income and expenses (sold in the printing industry or stationery store) - different options are available for simplification and the general taxation system.
All documents from the list above can be obtained from local authorities or purchased at the store. Some documents for doing business can only be obtained from suppliers, but this was discussed above in the text.
Step 5: Setting up the sales area
While the documents undergo state verification, there is time to prepare the hall to receive the first visitors:
- Minimal cosmetic repairs, layout, installation of lighting lamps are being done;
- Stands and racks are placed around the hall, a cashier's place and a warehouse for storing bales of things are set up;
- A general cleaning of the premises and the road to it from the entrance + 5 meters of the surrounding area is carried out.
Step 6: Purchase of goods
While the tax office continues to prepare documents, it goes for the first batch of goods. It is advisable to find out when suppliers deliver a new batch, so as not to sort through hundreds of bags of “unliquid goods”.
Suppliers at the initial stage are enterprises that purchase goods in bulk from abroad. They buy bags weighing from 100 kg and resell packages of 20-25 kg. For the first purchase, one such wholesaler is enough.
The main condition for cooperation is the quality of the goods supplied. When the second-hand business takes off, it won’t be difficult to find direct suppliers. Unfortunately, they do not show the contents of the bales prior to purchase.
You can predict the quality of items based on the country of delivery: the Germans hand over large-sized and heavily worn clothes, the French supply items made from natural materials and moderately worn. The ideal supplier is England - there are a lot of new, unworn items in bales from this country. This is not strange - London is one of the most expensive cities in the world.
Never order second-hand goods in bulk over the phone! Only personal visits to warehouses guarantee the quality of the purchased goods. Purchases should be made locally, but before that you need to superficially study the meaning of product categories from Europe:
- Cream— the most expensive category, new branded items;
- Lux- clothing from popular brands of average cost, new or with minimal wear;
- Extra- also branded items, about 10% wear (ideal for diluting ordinary goods).
Used clothing is divided into 3 grades:
- High-quality items, little worn (ideal for purchasing);
- Partially defective or moderately worn items;
- Things that cannot be worn.
Beginners are recommended to buy sorted second-hand goods of the 1st grade + several bales of luxury items with branded items (they are added daily to stir up the interest of visitors). It is necessary to carefully inspect each item from the offered bales. We pay attention to the following places:
- Cuffs;
- Collars;
- Armpits;
- Knee;
- Tips of socks.
We tell the supplier where to deliver the goods, wait for loading and go with him. By this time, you will officially be an entrepreneur.
In addition to clothing, you need to purchase equipment:
- Large mirrors for fitting rooms;
- Hangers;
- Cash registers;
- Several mannequins;
- Boxes for storing personal belongings;
- Scales for weighing goods in the hall and at the checkout;
- Cash registers;
- Table for packing purchased goods into bags.
Step 7: Order advertising
From the standard - a sign, advertising in local newspapers, flyers for distribution. Flyers are difficult to distribute - people are embarrassed to take them in front of everyone, but you can negotiate at the post office - they will be attached to mail notifications (for a small fee). If the store is located in a residential area, we agree on the placement of signs and directions - people must be 100% sure where to go. Without this, you may lose some visitors.
Step 8: Lay out the goods
After receiving the goods, you need to determine its retail value. There are 2 pricing options:
- Sell by weight, reducing the price daily;
- Sell at a fixed price.
In the first option, it is enough to hang things by category, in the second you need to sort and mark up each item separately. Some new clothes are sold at the checkout at a fixed price. All good things must be sold with a markup of 100-150%, otherwise the business risks not being profitable.
We divide things into the following categories: women's clothing, men's clothing, children's clothing + toys. It is advisable to use hangers of the same color.
You can do the first layout yourself, and hire people for subsequent ones. You can hang a notice on the door: “We need employees to display goods. Contact the number: +7ХХХ ХХХ ХХ ХХ.”
Step 9: Opening
Good marketing is a guarantee that many buyers will come on opening day. It is advisable to place an arch of inflatable balloons at the entrance - this will attract random passers-by. Make sure that customers do not threaten other merchants - if the second-hand store is located in a shopping center. Try to be as courteous as possible with guests - the first day will be remembered for a long time.
Make sure that video surveillance is installed in the store before opening - cutting off tags and buttons, removing designer ones will reduce the attractiveness of many things.
Step 10: Hiring Employees
For a month of work, you need to determine the approximate amount of revenue per day - this will help in assessing the work of staff. If the store is popular and brings in regular profits, you can think about hiring employees.
People are divided into 2 types - those who buy second-hand goods or those who hate everything connected with it. It is advisable to hire the first to fill a cashier position. They may steal a little - put things aside for the last day, take the best on the first day, sell to friends at a lower price. But they won’t look at visitors with disgust, and a well-thought-out system of motivation and remuneration will help get rid of theft.
The latter ones are better suited for arranging things - they definitely won’t be stolen. Payment is set at 30-50 kopecks per kilogram. You can place an advertisement on the door looking for employees with your number - those who are willing will find themselves.
In addition to cashiers and merchandisers, you will need security guards or cooperation with a security company - entrepreneurs calculate what is more profitable for their region.
Step 11: Expansion
When the store gains momentum, it’s time to look for a good manager-manager. He will be involved in procurement and control the sales process. You might think about opening another department in this or a neighboring city. Remember to visit the tax office regularly.
Allocate money to develop a website where the store brand will be promoted. Here you can place offers for the sale of the best things, create a section to attract wholesale customers. If you can establish direct deliveries, you can start selling sorted bags of clothes to other stores.
Conclusion
We have described everything a novice entrepreneur needs to open a second-hand store. This is a seasonal business, so you can open a laundry, sewing studio or chemical/stationery/food store nearby - they will bring a stable income in the off-season.
The expression “second-hand”, literally meaning “second hand”, in the usual understanding of the Russian average person is a store where you can inexpensively buy used items. Nowadays, for many, this option for updating their wardrobe is a good way to visit expensive retail outlets. And regular customers of second-hand stores know that on the shelves you can often find new items of very good quality at a consistently low price. The ranks of buyers of such stores have recently been growing, and the demand for inexpensive items is growing. In these conditions, the idea of launching your own retail outlet can be considered relevant.
Today we will talk about whether it is profitable to open a second-hand store, and we will tell you what is required for this.
Opening a second-hand store: where to start
Opening a second-hand store from scratch is certainly easier and cheaper than. However, you should not think that the audience of such retail outlets is entirely an unassuming public, ready to buy up any cheap product. Perhaps this was the case before. But today the situation has changed. In addition, competition for second-hand stores comes from numerous discount centers and Chinese online stores offering new goods at low prices. Therefore, only a serious approach and responsible attitude to business can lead you to success in this business.
In the process of preparing to open a second-hand store, you will need to pay attention to the following points:
- registration of business activities and choice of tax regime;
- choosing a suitable platform for trading;
- supplier search;
- purchase of commercial equipment;
- formation of assortment;
- search for colleagues;
- carrying out an advertising campaign.
Resolving all these issues may take from 1 to 2 months, depending on the activity of the entrepreneur himself, since no bureaucratic barriers arise when opening such outlets.
Advice: if you don’t know how to open a second-hand store, where to start your business in this environment, try to get a job in one of these stores. This will allow you to learn some of the subtleties and nuances of the work, get to know your target audience and connect with good, reliable suppliers of products.
The World of Business website team recommends that all readers take the Lazy Investor Course, where you will learn how to put things in order in your personal finances and learn how to earn passive income. No enticements, only high-quality information from a practicing investor (from real estate to cryptocurrency). The first week of training is free! Registration for a free week of training
Registering a business and choosing a tax system
Of all the possible options for a second-hand store, running a business as an individual entrepreneur (IP) is more suitable. It’s not difficult: you need to collect a package of documents standard for such a procedure, fill out a registration application, and contact the tax authority. The price of the issue, if you act yourself, will be 800 rubles - the amount of the duty. The registration period will not exceed five working days.
Among the arguments in favor of an individual entrepreneur as an organizational and legal form, the main one can be highlighted - this is the opportunity to use. The advantages of this tax regime are that it exempts you from the obligation to pay income tax (personal income tax), value added tax (VAT) and property tax. An entrepreneur subject to a patent tax system pays only 6% of the potential income established by the state for a specific type of activity. In this case, the patent term can range from 1 to 12 months.
Before obtaining a patent to open a second-hand store, it is necessary to determine the size of the retail space. The fact is that such a tax regime can be used for retail trade only if the sales area does not exceed 50 square meters. m.
If you plan to use a larger premises for trading, then we can recommend switching to either a simplified system with the object of taxation “Income” (see).
The area of the sales floor is not the only point that you need to pay attention to when choosing a premises. Next, we’ll take a closer look at where it’s best to place a second-hand store and what requirements apply to the parameters and layout of the store.
Retail premises and equipment
It is not recommended to open a second-hand store in the central part of the city, since high rents will “eat up” a significant part of your income. In addition, you should take into account the target audience, which is mainly concentrated in residential areas, in the vicinity of markets. Choose densely populated areas of the city, areas densely built up with apartment buildings and dormitories.
The store premises must meet sanitary, hygienic, environmental, fire and electrical safety requirements. It must be equipped with engineering systems and have a convenient entrance.
It is desirable that there are advertising structures on the facade of the building for outdoor advertising. There must be space for a large sign at the entrance to the store.
Lighting in a store plays a very important role. It is better to entrust the design of a lighting system for a retail space to professionals.
Returning to the area of retail space, we note that the optimal area for a second-hand store is from 30 to 80 square meters. m. The number of square meters required will be influenced by the trading format you choose. There are three ways to sell second-hand clothes:
- weight – when the price is set for 1 kg of goods. This method is usually used to sell unsorted items (for rags) and everyday clothes with little wear;
- pricing - when the price is set for each product. Suitable for selling new items or items with minimal wear;
- combined – when both of the above options are used in the same store.
The first method of trading does not require a large area and significant costs for equipment. You will need about 30 sq. m of retail space, several shelves and racks, commercial scales and equipment for the seller’s workplace.
If you choose the second method, then it is advisable to rent a more spacious room that can comfortably accommodate mannequins, island and wall-mounted trading systems with hangers, bag racks, and counters for accessories. It is necessary for such a store to have 1-2 fitting booths. It is not necessary to purchase new equipment; you can save money and buy used. However, it must be of high quality, in good working order, and clean.
Make sure your customers enjoy coming to your store. Make repairs before opening, work on the design. This will create additional competitive advantages for your company.
Finding suppliers and filling the store
Before you start a second-hand business, you must determine for yourself what category of goods you will sell. There is a generally accepted classification of such products into several groups, each of which has a specific purchase price. We provide a list of product categories in ascending order of quality and price:
- original - things that do not pass sorting. Lowest quality, wholesale price from 2 to 3 euros per 1 kg;
- the first category is items with varying degrees of wear, among which there are clothes with minor defects. The cost in purchase is from 3 to 5.5 euros per 1 kg;
- extra - items of good quality, without defects, with minimal wear, there are brands. The purchase price is from 5.5 to 7 euros per 1 kg;
- luxury - things without wear, there are brands, there are goods with tags. Wholesale cost from 7 to 10 euros per 1 kg;
- cream - only branded items. Price from 10 to 19 euros per 1 kg;
- stock - new clothes. Purchasing cost from 10 to 25 euros per 1 kg.
It is difficult for a person who has never bought clothes by weight to understand how many pieces of clothing there are per 1 kg. To make it easier for you to navigate, we will give an example. 10 kg of summer women's clothing (blouses, dresses, sundresses, light trousers, etc.) will contain approximately 60-65 items.
It may seem to a novice entrepreneur that, of all the possible options, it is more profitable to open a second-hand store of branded items. However, this would not be a completely correct assumption. Despite the fact that the value of popular clothing brands in the eyes of Russian consumers is quite high, the majority of buyers with a limited budget will prefer to buy new clothes from an unknown manufacturer rather than used branded ones. The exception is young people under the age of 20 and student age, who account for about 30% of the total number of second-hand store clients.
Experienced businessmen recommend forming a store’s assortment from goods of the first category and the “extra” group in a 50/50 ratio. It should be borne in mind that much depends on how conscientious a supplier you can find.
Advice: do not purchase products from those suppliers who have second-hand retail stores in their structure. Most often, such companies select the highest quality goods for their retail network, and send the remainder to wholesalers.
Where to look for suppliers
The Internet will come to your aid with the answer to this question. Today in Russia and Ukraine there are many wholesale centers offering used items from Europe and America. When deciding with whom to cooperate, pay attention to the company’s experience in the market, the number of countries from which goods are imported, the frequency of price updates, delivery conditions, and the presence of regional offices.
Many entrepreneurs do not recommend ordering goods via the Internet, since in this case there is no way to evaluate its quality. Items are delivered to customers in large plastic bags, and you will never know in advance what specific items are included in their contents. Sometimes it is advisable to personally visit the warehouse to selectively get acquainted with the approximate range of products.
Consider which can be implemented and developed in our country.
How many goods need to be purchased
When opening a second-hand store, it is quite difficult to calculate the optimal volume of inventory. Some entrepreneurs recommend purchasing products at the rate of 10 kg per 1 sq. m. However, it is worth considering that in this business such an indicator as the novelty of the assortment is also important. There are times when a large flow of customers occurs directly at the opening of a retail outlet, and in just a few days the inventory becomes scarce. Consider this moment. You must be able to quickly respond to demand and make purchases on time.
How and how much can you earn from a second-hand store? The average markup on products sold in second-hand stores is 300%. Conventionally, by purchasing a batch of 20 kg of clothing in the “extra” category and spending about 8,000 rubles on it, you can potentially earn 24,000 rubles. Your net monthly profit will depend on your turnover.
Opening your own business in an unstable economic situation in the country is quite a risky business. Due to decreased demand for certain goods and services, many areas of business are in a difficult situation. But, despite the crisis, there is a group of goods and services that will be popular and in demand at any time. For example, the need for food, clothing, and medicine will always be there, regardless of the duration of the crisis.
In the previous article we discussed, today, let's talk about how to open a second-hand store. We’ll also talk about what documents are required to register this business and what the payback period is.
The need for clothing will always exist; we cannot do without it. Especially in times of crisis, cheap things will be relevant. Therefore, opening a second-hand store is a profitable and highly profitable business that does not require large financial investments.
How to open a second-hand store?
Before you start opening, you need to draw up a business plan for a second-hand store, this is necessary in order to calculate all the costs, the level of competition and the payback period of the business.
Business registration
This type of activity must be legally registered. To do this, first register with the tax service as an individual entrepreneur. You must also have all the certificates confirming the processing of things, permits from the sanitary and epidemiological service.
You can prepare all the necessary documents yourself or, to save time, entrust this work to an experienced lawyer.
Renting premises
Let's start with the location of your retail outlet. You need to choose a place for a second-hand store that is crowded and passable. The best option is the central part of the city and residential areas. There, the number of potential buyers is quite large and there will always be clients.
As for the area, it all depends on the scale of the business. At the initial stage, a small room of 30 square meters will be enough. m, and in the future you can increase the scale of sales, subject to success in business.
Video on the topic
What is needed and is it profitable to open a second-hand store?
You can only find out how profitable this business is by trying yourself in this field of activity. It all depends on the range of goods, a good location, competent pricing policy and advertising campaign. Take these nuances into account when organizing your business in the trading sector.
Purchase of goods and formation of assortment
Used items fall into several categories:
Elite second-hand clothes are clothes from famous brands. Many designers and fashion designers are selling their last year's collections at big discounts. Such products are of very high quality; you can purchase these clothes at a low price only abroad. As a rule, such clothes are then sold in our elite stores. You may well find foreign suppliers and buy exclusive items for further resale.
Items are in average wear. As a rule, such clothes are sold in our second-hand stores. It is purchased in bulk, in compressed bags. Depending on the price, you can choose the seasonality of the clothing (summer, winter), category (women's, men's, children's) and the degree of wear. I recommend that you buy moderately priced used clothes, because cheap items have almost lost their marketable appearance.
Store interior
Take responsibility for interior design. This will help in attracting additional buyers.
The room must be clean, wet cleaning must be carried out daily. Wipe off the dust, wash the windows and doors, there should be perfect order and a cozy atmosphere.
Lighting. Pay attention to proper lighting in the store. The goods should be laid out neatly and in a visible place, and not in dusty, dimly lit corners of the room.
It is also necessary to equip fitting rooms so that customers can try on the things they like.
Video on the topic
Ventilation
Items sold in second-hand stores are treated with a special disinfectant, so they have a not entirely pleasant smell. Therefore, it is worth ventilating the store premises several times a day.
Favorable placement of things
It is very important to arrange the goods correctly. In good stores, things are neatly hung on hangers. It is best to hang seasonal clothing in the most visible places to attract the attention of buyers.
You also need to decide on prices. As a rule, items in second-hand stores are sold by weight. But for some goods you can set other prices, this practice exists.
Your own second-hand business is a profitable and quick-paying business that can be opened both in a big city and in a small town.
I wish you success in business.
- Market prospects
- Description of goods and services
- Production plan
- Recruitment
- Marketing plan
- Business risks
- Financial plan
- Similar business ideas:
Business plan for organizing a second-hand store in rented premises on a retail area of 70 square meters. m.
How much money do you need to open a store?
According to preliminary calculations, opening a second-hand store in a rented premises will require an investment of about 1,190,000 rubles:
- Cosmetic renovation of the premises - 100,000 rubles.
- Purchase of commercial equipment and accounting programs (1C, cash register) - 150,000 rubles.
- Creation of an assortment of goods - 600,000 rubles.
- Business registration, approvals and permits (SES, fire supervision) - 40,000 rubles.
- Advertising budget - 100,000 rubles.
- Other expenses - 50,000 rubles.
- Reserve fund - 150,000 rubles.
Step-by-step plan for opening a store
- Search for sources of project financing;
- Search for profitable suppliers of goods;
- Selection of premises in areas with high traffic from a potential audience of buyers;
- Business registration;
- Concluding a lease agreement, obtaining permits;
- Cosmetic renovation of the premises, purchase of commercial equipment and its installation;
- Hiring;
- Creation of a product range;
- Opening of the store.
Market prospects
Why should second-hand stores be in demand? There are several categories of people who are interested in such a product:
- Among the items there are quite a few branded goods from a variety of European and American manufacturers. Moreover, at prices several times lower than those that can be found in elite clothing boutiques. This is of interest primarily to brand fanatics.
- Here you can find fashion and fashion products at the lowest prices. This is very beneficial for a poor audience of clients, such as students and young people.
- Public sector workers, for whom a certain dress code is important, can dress impeccably without spending a lot of money.
- In general, second-hand clothing is a product that is easy to decide to purchase. This is a product that is comfortable for the widest audience of customers to buy.
Description of goods and services
Our store's assortment will include the sale of the following products:
- Women's clothing (blouses, shirts, skirts, sweaters, sweatshirts, dresses, suits, jackets, raincoats, etc.);
- Men's clothing (jackets, raincoats, jackets, T-shirts, T-shirts, shirts, etc.);
- Children's goods (toys, shirts, sweatshirts, sweatshirts, jeans, hats, etc.);
- Accessories (bags, belts, scarves, jewelry, gloves, mittens);
- Shoes and socks;
- Household items.
The markup on goods will be on average 200%. For clothing of the first and second categories (the best product), the markup can reach up to 500%, while the product of the third category (clothing of poor quality) will actually be sold at cost. The planned average bill will be 500 rubles. It is planned to purchase goods from large wholesale suppliers who import goods from European countries (mainly England, Italy, Holland and Germany). In addition, the assortment will also include completely new products, supplied directly from domestic factories and neighboring countries.
Production plan
To locate a second-hand goods store, premises will be rented in an office center, in a fairly accessible part of the city (not the center). The size of the rented area will be 70 square meters, and the amount of rental payments will be 32 thousand rubles per month. The selection of premises was based on the following principles:
- Availability of high cross-country ability;
- Not high rental prices;
- Good condition of the premises, not requiring major repairs;
- Convenient access roads and good parking.
Which tax system to choose
As an organizational and legal form, it is planned to register individual entrepreneurship with the local tax service. The taxation system will be UTII - a single tax on imputed income. We believe that this is the optimal tax regime for a second-hand store. The tax will be fixed and amount to only 7,500 rubles per month. Installing a cash register for UTII is not necessary, but a cash register will still be installed in the store, as it facilitates the accounting of goods and increases the status of the store in the eyes of customers.
Recruitment
Our store will need sales consultants (3 people), warehouse workers (2 people) and a cashier. Accountant and cleaning services will be outsourced. Sellers will be required to meet the following requirements: experience in clothing retail, ability to use the 1C program, good communication skills, tact, energy and friendliness. The salary will be about 18 thousand rubles per month (as a percentage of revenue) + bonuses for exceeding the sales plan. The total wage fund, according to preliminary calculations, will be 95 thousand rubles per month.
Marketing plan
To attract buyers to the second-hand store, it is planned to use the following advertising methods:
- Outdoor advertising (placing banners near bus stops, markets and other places with high traffic);
- Advertising in newspapers and magazines, on radio;
- Distribution of leaflets, flyers, booklets to mailboxes;
- Sound notification a few days before the store opens (driving on city roads in a car with a loudspeaker);
- Placing a bright sign above the store entrance.
In total, according to the business plan, advertising will cost from 20 to 50 thousand rubles per month. In order to retain regular customers, our store will operate a cumulative discount system. With a total purchase amount of 5,000 rubles or more, next purchases will receive a 3% discount, from 10,000 rubles - 5%, and from 20,000 rubles - 10% of the purchase amount. In addition, our store will invite customers to leave their phone number and e-mail in order to be aware of all promotions and sweepstakes. Thus, it is planned to recruit a large base of regular visitors.
Business risks
Conducting this business, in our opinion, is associated with the following risks:
- Decrease in demand for used goods due to increasing welfare of the population;
- Growing competition in the clothing retail sector. Reduced prices for new products;
- The introduction of economic sanctions and new laws limiting the import of goods from abroad (or making it less profitable).
Financial plan
Fixed monthly expenses of a second-hand store will include:
- Rent — 32,000 rub.
- Salary - 95,000 rubles.
- Insurance contributions to the Pension Fund and Social Insurance Fund - 28,500 rubles.
- Utility payments - 15,000 rubles.
- Advertising - 30,000 rubles.
- Taxes (UTII) - 7500 rub.
- Fuel and lubricants - 25,000 rubles.
- Other unforeseen expenses - RUB 15,000.
Total - 233,000 rubles. Variable expenses:
- Purchase of goods for resale - 30% of turnover.
How much can you earn from selling second-hand store goods?
Break-even point of sales with fixed costs of 233 thousand rubles. per month and a trade margin of 200% will be 349.5 thousand rubles. With monthly revenue of 629 thousand rubles, the store’s profit will be 279 thousand rubles.
Income
- The average bill is 500 rubles.
- The number of customers per month is 900 people. (on average 30 people per day)
- Revenue per month - 450,000 rubles.
Net profit: 450,000 - 233,000 (fixed expenses) - 135,000 (variable expenses - goods) = 82,000 rubles per month. Return on sales is 18.2%. With such calculations, taking into account the period for business promotion (4-6 months), the return on investment in the business will occur after 18 - 20 months of the store’s operation.
This is a full-fledged, ready-made project that you will not find in the public domain. Contents of the business plan: 1. Confidentiality 2. Summary 3. Stages of project implementation 4. Characteristics of the object 5. Marketing plan 6. Technical and economic data of the equipment 7. Financial plan 8. Risk assessment 9. Financial and economic justification of investments 10. Conclusions
Loading...
