How to Start a Consignment Business
Starting a consignment business is more and more people's next big idea with the struggling economy. The general trend is that people have adjusted their spending habits, now more than ever it has become "cool" to spend less and be thrifty. With that comes the growing trend in consignment shops and the resale business. How do you capitalize on this growing trend? Starting your own consignment business of course!
The consignment industry is a unique animal. On the positive side, the business model can be extremely profitable and provides a very strong cash flow business model if managed correctly. From a consumer standpoint, if inventory is handled correctly the customer will have a wide selection of choices at extremely discounted prices from standard retail. A well run consignment business provides an amazing and unique shopping experience for the customer.
On the negative side, consignment businesses walk a fine line, it doesn't take much to have a retail consignment business look or feel like a sleezy operation. The last thing you want to convey to someone is that you are in the same geneology as a pawn shop. The best consignment businesses are ones that are operated with the cleanliness, customer service and expectations of a high-end retail operation such as a store on Michigan Avenue in Chicago or on 5th Avenue in Manhattan. Image is everything, your pricing, customer traffic and overall business success is dependent on providing your customers with an exceptional shopping experience.
My recommendation is to consider a Consignment Franchise. Although the business model is simple, fun and can be extremely profitable, consignment businesses have a failed at an astonishing rate over the recent years. Work with a company that has been in the business, has a solid business model in place and will coach you through the process of opening, running and building your business. Every trade has tricks to it, the consignment industry is no different, let an experienced pro show you how to do it right.
FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.