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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

Western Apparel

You’ll say “Yee-haw” when customers flock to your specialty Western store.

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Business At A Glance

Western Apparel
Startup Costs: $10,000 – $50,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? No

Business Overview

Like country and western music, country and western apparel is currently enjoying a rebound in terms of consumer demand and popularity. Starting a business that retails western apparel is a sensational new business venture to put into action. In the spirit of being unique, consider opening a retail business selling the apparel in a nontraditional retail environment.

Try locating the business within an established country and western theme restaurant or club, or establishing the business within a music retailer that specializes in country music sales.

Forming this type of joint venture with an established retail business often facilitates a lower capital investment and reduced monthly operating overheads, not to mention the fact that the business can capitalize on the existing customer base to drive sales.

The Market

Your customers will be young and old, male and female. What’s most important is that there’s a large group of people who are interested in this type of music and style in your community, and there aren’t stores already catering to them. Does your community support a country-music venue, a line-dancing club or a radio station? Those are good clues that there will be interest in your business.

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Retail Business

Framed Movie Posters

Picture this: A business surrounding movies.

Entrepreneur

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Business At A Glance

Framed Movie Posters

Startup Costs: $2,000 – $10,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? Yes

Business Overview

Movie posters can often be purchased forless than $1 each from video stores and movie theaters. Once framed,these valuable pieces of art can be resold at flea markets, mall kiosksand to interior designers for terrific profits.

Older movie posters arealso in high demand as collector items and this side of the business isbest suited for internet sales. You can develop your own website for asmall investment and start marketing collectible movie posters.

Thereare guides available that list the value of collectible movie postersdepending on condition. These guides will be an invaluable source ofinformation if you intend to offer collectible movie posters for sale.

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Retail Business

Used Baby Equipment

Make the best of expensive baby products the original owner no longer needs by reselling them.

Entrepreneur

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Business At A Glance

Used Baby Equipment
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

Baby equipment–such as strollers, bassinets, car seats, cribs, toddler beds, cradles and changing tables–can be very expensive and often out of the financial reach of many new parents. So why not start your own business that specializes in clean, good-quality secondhand equipment for babies.

The business can be started for less than $15,000 and can be operated from a small retail store location. You can purchase items from parents and mark them up by at least 100 percent for resale purposes.

Likewise, you can also take in items on a consignment basis to reduce business startup costs. This business is ideally suited for a person who has a number of contacts with parents within the community.

It’ll also be helpful if you’re handy–you can purchase a piece of furniture or equipment that isn’t in tip-top shape, fix it up and sell it for a lot more. You’ll also want to keep a very close eye on this market–you don’t want to sell outdated equipment or anything that’s been recalled for safety reasons.

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