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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

Evening Gown Rentals

Turn women into Cinderellas for a night by renting them evening gowns.

Entrepreneur

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Business At A Glance

Evening Gown Rentals

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

Many designer evening gowns cost $1,000 ormore, placing them far outside the financial reach of many customers.This creates more than ample opportunity for the determinedentrepreneur to start an evening gown rental business, which can beeasily conducted from a home based location.

Marketing the business canbe as simple as creating a full-color catalog that features picturesand descriptions of the evening gowns for rent and distributing thecatalogs throughout the community where they’ll generate the mostinterest in the service.

Once established, an evening gown rentalbusiness should receive a vast amount of referrals from satisfiedcustomers, not to mention a lot of repeat business.

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Retail Business

Patio Furniture Retailer

Attractive, comfortable furniture can turn a patio into another living space.

Entrepreneur

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Business At A Glance

Patio Furniture Retailer

Startup Costs: $50,000 – $100,000
Online Operation? No

Business Overview

All new decks and patios require one thingto complete them: patio furniture. A retail business that sells patiofurniture is a very easy business to initiate, as there are no specialskill requirements.

Patio furniture will pretty much sell itself,providing of course that the prices are fair and the quality isoutstanding. Worldwide, there are thousands of manufacturers of patiofurniture products, so securing a product line should not be difficult.

Additionally, consider stocking an inventory of locally made cedar orlog patio furniture, as traditionally wood patio chairs and tables havealways been excellent sellers. Marketing the business can beaccomplished by using all local print media, as well as by holding agrand opening sale to let potential customers know where you are andwhat products you stock.

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Retail Business

Secondhand Clothing Store

People love a bargain. Put your good taste to use by opening a used clothing store.

Entrepreneur

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Business At A Glance

Secondhand Clothing Store

Startup Costs: $2,000 – $10,000
Online Operation? Yes

Business Overview

There are a few options available to theentrepreneur considering a retail business that sells secondhandclothing. The first and most capital-intensive option is to open a usedclothing store from a fixed retail location or storefront.

The secondoption is to sell the secondhand clothing items via a flea-marketbooth. The third option is to develop a website and sell used clothingonline.

Of course, all three options could be combined into oneoperating format, and combining all three methods of marketing anddistribution would greatly increase potential business revenue. Thereare even a few companies that sell secondhand designer clothing by wayof home parties and independent sales consultants, which could also bea potential avenue worth investigating.

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