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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

Maternity Clothing

Moms-to-be don’t want to give up looking good. Cash in on this strong demographic.

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Business At A Glance

Maternity Clothing

Startup Costs: $2,000 – $10,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? No

Business Overview

Celebrity moms like Cindy Crawford and Kelly Ripa aren’t the only oneswho know that muumuu-style maternity clothes are so last century.

Today, pregnant women are all about celebrating their style and lookingsexy. From high-end maternity designers like Liz Lange and A Pea in thePod to midpriced maternity wear newcomers The Gap and Old Navy,clothing designers are on to the potential of this growing market.Withmore than 4 million babies born annually, it’s easy to see why thematernity clothing market is buzzing Assuming the average expectantmother purchases only five new maternity garments while pregnant addsup to a whopping 20 million maternity garments sold each year in theUnites States alone.

There are a few ways to cash in on this very largeand lucrative market. The first is to design, manufacture and sell thematernity clothing, and the second is to purchase maternity clothing ona wholesale basis and resell the clothing for a profit. While bothoptions are viable in terms of generating profits for the business, thefirst option has the potential to generate more sales and profits aswell as providing more options for the operator in terms of marketingmethods. Profit potential will vary, however, markups of 100 percentare not uncommon in this industry.

Needed Equipment

It depends on your focus. If you’re going to create the clothingyourself, you’ll need a sewing machine and other tools of the trade.Once the orders start pouring in, you may want to contract with amanufacturer. If you will just be selling them, you’ll need storage andtransportation. For both, you’ll need a computer to keep track oforders, accounts and contacts.

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Retail Business

Wine Shop

Drink to your health and to your business.

Entrepreneur

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Business At A Glance

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

Business Overview

Retailing wine can be extremely profitable, and this type of business can even be operated from a well-positioned kiosk located in a mall or market. In the right location, walk-in customers will keep you busy selling lots of wine.

But as a method to bolster sales and profits, also be sure to establish alliances with event and wedding planners, catering companies, and business clubs and associations as they can become a great source of repeat business.

Like any retail business, seek a competitive advantage, meaning offer your customers something the competition does not. Perhaps phone-in orders with free delivery or maybe a weekly wine tasting night. The ability to separate your business from the competitions’ often is the difference between business success or business failure.

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Retail Business

Leather Fashions

Rope in customers by offering leather clothes and accessories with large profit potential.

Entrepreneur

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Business At A Glance

Leather Fashions

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

Selling leather fashions is another greatfashion retailing business to initiate. Worldwide there are thousandsof manufacturers of leather fashions and accessories, so securing awholesale source for products should not prove to be difficult.

In thespirit of being unique, consider retailing the leather fashions innontraditional methods including by ways of the Internet, home shoppingparties, and catalog sales. Like many clothing ventures, the profitpotential is excellent for a business that retails leather fashions, asmany items can retail for as much $1,000 each, and the same item canoften be purchased wholesale for less than $500.

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