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Retail Business

Inventory Liquidation

Every cloud has a silver lining. When other stores close shop, you can buy their products wholesale.

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Business At A Glance

Inventory Liquidation

Startup Costs: $10,000 – $50,000
Part Time: Can be operated part-time.
Online Operation? No

Business Overview

Every year thousands of retail merchants andcorporations across North America go out of business, move, reform, andamalgamate, and often this results in billions of dollars worth ofstock and inventory becoming available at bargain basement prices.Purchased right and this same inventory can sometimes be bought for aslittle as five cents on the dollar.

Later this can often be resold foras much as five times the purchase price on a wholesale basis, and asmuch as ten times on a direct-to-consumers retail basis. A goodstarting point for purchasing bargain inventory (at least until thebusiness builds a reputation and contact base as a liquidator) is toestablish alliances with trustees that deal in commercial bankruptcies.

Generally the trustee appointed will either arrange to auction off theinventory assets of clients, put out a tender, or offer to purchase theinventory, which usually goes to the highest bidder on a cash basis.Reselling the inventory can be accomplished in a few ways includingselling the inventory to retailers on a wholesale basis or selling theinventory in smaller quantities to other inventory liquidators.

On adirect-to-consumer retailing basis, the inventory can be sold through acompany-owned liquidation store or stores, or monthly inventoryliquidation sales can be advertised and held over a few days inshort-term rental premises. However, there is a down side to thisbusiness, which is purchasing inventory that is difficult to sellregardless of price.

This is a very common mistake for first timers inthis industry. Traditionally, the best type of products to purchaseunder inventory liquidation conditions are power and hand tools,nonperishable food items, books, music CDs, toys, building materials,and electronics. Always stay clear of products that have a limitedshelf life, or that have special warehousing and transportationrequirements.

Once again, this is the type of business where theability to profit will greatly depend on a number of factors such assales volumes, markups, and product costs. Having personally dabbled inthis industry in the past, I can assure you that it is possible to make$10,000 per month or more, providing a carefully planned andwell-researched approach to the business is executed.

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Retail Business

Glass Shop

A glass shop could be the window to your entrepreneurial future.

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Business At A Glance

Glass Shop

Startup Costs: $10,000 – $50,000
Online Operation? No

Business Overview

Windows, tabletops and mirrors’-the need forglass is everywhere. That’s why a glass shop in your community is agood business to start. Operating this kind of specialty businessrequires experience in glass cutting and glass installation techniques,which is called glazing; or a person with these skills is called aglazier.

Providing you or your staff possess this sort of workexperience and ability, then opening a glass shop can be a veryprofitable business to own. There are a great many types of glassinstallations the business could focus on.

Or you may want tospecialize in one or two specific areas, such as custom glass tabletops or only installing construction equipment glass, such aswindshields. This business venture can be costly to establish. However,once you have identified the market that you will be catering to, thebusiness can easily generate profits that can exceed $75,000 per year.

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Retail Business

Used Restaurant Equipment Sales

Sell used restaurant equipment to restaurateurs looking for a deal.

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Business At A Glance

Used Restaurant Equipment Sales
Startup Costs: $10,000 – $50,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? Yes

Business Overview

Did you know that starting a restaurant is one of the most common new business ventures? But did you also know that more than 90 percent of new restaurants go out of business within the first five years? The combination of these two facts is the basis for starting a business that buys and sells secondhand restaurant equipment like grills, fryers and coffee machines.

Simply put, when one restaurant goes out of business, you purchase their equipment. Then, when another restaurant opens, you resell that same equipment for a profit. This type of business venture can be started and operated from home initially (if you have storage space) and moved to a larger location as the business expands.

Furthermore, you can offer general restaurant equipment but you can also specialize in one particular type of restaurant equipment, such as deli equipment or grills. The potential to earn large profits from selling secondhand restaurant equipment is outstanding, and this business opportunity definitely warrants further investigation.

The Market

Your customers are new or current restaurant owners looking to purchase equipment. You will also have to court former restaurant owners whose equipment you want to purchase.

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Retail Business

Linen Shop

This retail business requires an eye for detail and design.

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Business At A Glance

Linen Shop

Startup Costs: $10,000 – $50,000
Online Operation? Yes

Business Overview

Retailing towels, bedding accessories, andtable linens can be extremely profitable, especially when you considerthat these products are routinely marked up 100 percent or more forretail sales. However, like any retail operation, success comes tothose operators with an eye for detail and a habit for practicing soundbusiness judgment, and a linen shop is no exception to the rule.

Considerations prior to opening will include business location, localcompetition, methods of advertising and promotion, and all managementaspects including finances, employees, and inventory. On the positiveside start-up costs for this type of business are reasonable, as thereare few chattel and equipment requirements.

The bulk of availablestart-up capital can be used for purchasing moneymaking inventory. Forthe financially concerned entrepreneur, consider a store-within-a-storeapproach as a method to reduce start-up costs. Good matches includeexisting retailers of home furnishings and grocery stores.

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