free business plan for thrift store

Thrift Store Business Plan Template

Written by Dave Lavinsky

Thrift Store Business Plan

You’ve come to the right place to create your Thrift Store business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Thrift Stores.

Below is a template to help you create each section of your Thrift Store business plan.

Executive Summary

Business overview.

Thrifty Treasures is a startup thrift store company located in Buford, Georgia. The company was founded by Georgia Mae Dutton, a thrift store maven with over forty years experience as both a shopper and customer advisor inside thrift stores. After many years of observing the best model for a thrift store; including customer assistance, operations, pricing, stocking inventory, and other practical knowledge, Georgia Mae decided to open her own thrift store to put all those pieces of practical knowledge to work.

Thrifty Treasures will focus on select areas of the best-selling categories for thrift stores: apparel, accessories, furniture, seasonal items, toys, household goods, kitchen items, and heritage favorites (crystal, silver, linen, cutwork, etc). Her plan is to provide everything needed to build the interior of a home while doing so on a dime. Thrifty Treasures will become the one-stop shop for gently-used items and apparel to suit every buyer, from the youngest shopper to the seniors.

Product Offering

The following are the products and services that Thrifty Treasures will provide:

• Gently-used apparel, accessories, furniture, seasonal items, toys, household goods, kitchen items, and heritage favorites
• Rotating inventory items every 30 days
• Clean bicycles and riding toys in good working order
• Respectful and courteous service for every customer
• Leadership training for staff members
• Generous 30-day return policy

Customer Focus

Thrifty Treasures will focus on the residents of Buford, Georgia and those within the surrounding region. They will target owners of gently-used items who want to donate items to be used for families within the community. They will target community organizations who will benefit from acquiring items from Thrifty Treasures for offices, meeting areas, and community kitchens. They will target local store owners who want to give away or sell for greatly reduced prices certain inventory items they hold.

Management Team

Thrifty Treasures will be owned and operated by Georgia Mae Dutton. She has recruited her former shopping assistant, Beula Simpson, to be the office manager and part-time salesperson. Georgia Mae has also recruited the maintenance worker from her church, Johnny Clarkson, to assist in cleaning and maintaining order in the store on a part-time basis.

Georgia Mae Dutton has been a thrift shopper for over forty years, beginning when she was eleven years old. She has observed and witnessed over the years the patterns, inventory, and customer service processes that work best, along with those that don’t. She is a graduate of Buford Community College, where she earned a business certificate.

Beula Simpson has been a shopping assistant for ten years for Georgia Mae, helping in the selection of items and disbursal of those items to friends and family members in need. She has been trained by Georgia Mae to select the best inventory items and to offer these items at reasonable prices.

Johnny Clarkson is a part-time maintenance worker at a local church that sits on a multi-acre property. He oversees one helper, who assists with cleaning, organizing, and maintaining the interior rooms of the church, as well as the outer grounds and landscaping of the areas around the church. Johnny has been employed at this job for over five years and has built an excellent reputation as a person “you can trust.”

Success Factors

Thrifty Treasures will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at Thrifty Treasures
• A wide array of products that will appeal to all buyers, from household items to heritage favorites. There will be something for everyone to appreciate and purchase.
• Thrifty Treasures will offer discounts on gently-used items, increasing discounts throughout the one-month inventory period, until 75% discounts are applied during the last week of each month.
• Inventory is sold and restocked every thirty days; merchandise is never “old and tired.”
• Thrifty Treasures offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Thrifty Treasures is seeking $200,000 in debt financing to launch Thrifty Treasures. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Thrifty Treasures.

Company Overview

Who is thrifty treasures.

Thrifty Treasures is a newly established full-service thrift store in Buford, Georgia. Thrifty Treasures will be the most reliable, cost-effective, and enjoyable store for customers of all ages in Buford and the surrounding communities. Thrifty Treasures will provide a comprehensive inventory of items that will solve the issues or concerns of their customers, as each finds what it needed at reasonable and practical prices. Their full-service approach includes comprehensive training extended to each employee upon hire. This ensures fully-trained staff members who want to give their personal best efforts to each customer.

  Thrifty Treasures will be able to effectively purchase, stock and sell inventory every thirty days. The team of professionals are highly qualified and experienced in thrift store buying and selling. Thrifty Treasures removes the concerns of customers who need items or apparel and can’t afford those items at a full-price store. Thrifty Treasures also ensures all issues are taken care of expeditiously while delivering the best customer service.

Thrifty Treasures History

Since incorporation, Thrifty Treasures has achieved the following milestones:

• Registered Thrifty Treasures, LLC to transact business in the state of Georgia.
• Has a contract in place at one of the suburban retail strip malls to lease sales space and an office space, totalling 15,000 square feet.
• Reached out to numerous friends and associates to include Thrifty Treasures as a primary store of choice.
• Began recruiting a staff of three sales representatives and office personnel to work at Thrifty Treasures.

Thrifty Treasures Products and Services

The following will be the products and services Thrifty Treasures will provide:

Industry Analysis

The retail thrift store industry is expected to grow over the next five years to over $64 billion. The growth will be driven by consumers who will shop for lower-priced items as a result of inflation. The growth will also be driven by consumers who want to reuse items as sustainable responsibility is a personal goal. The growth will also be driven by younger consumers who seek certain memorabilia from past decades, fashions from former decades, or those who enjoy items that never seem to wear out. Costs will likely decrease as more and more consumers want to share gently-used items with others who are less fortunate. This will result in more availability and lower costs for thrift store owners.

Customer Analysis

Demographic profile of target market, customer segmentation.

Thrifty Treasures will primarily target the following customer profiles:

• Residents of Buford and surrounding areas
• Businesses that need to acquire furnishings or household items
• Local store owners who may want to buy or sell items
• Community organizations who may want to buy or sell items

Competitive Analysis

Direct and indirect competitors.

Thrifty Treasures will face competition from other companies with similar business profiles. A description of each competitor company is below.

Traci’s Thrift Taxi

Traci’s Thrift Taxi is a mobile store featuring used women’s apparel. The owner, Traci Fordham, purchases “used and returned” women’s apparel in bulk from wholesale companies and sells the items via her mobile store. Traci did not want to incur the expense related to a retail store; therefore, she moves her mobile store to various neighborhoods where her customers congregate to visit and purchase her inventory on wheels. She holds an inventory of up to 200 clothing items for women at one time and uses her oversized van as her mobile showroom, where she can invite up to five women at a time to enter her “store” to shop for used appeal.

By using her van as her store, Traci saves on the expenses related to a brick and mortar store, however she pays for fuel and maintenance on her van, which dilutes her economy somewhat. Traci uses a software program that details where the van will be located and sends a text message to any woman customer to alert customers when the van is in their geographic area. Traci cleans out her inventory every 60 days, or whenever she sells out of inventory.

Annie’s Simple Memories

Annie Swanson has been a collector of dolls for over forty years. During that time, she’s amassed an enviable 400 dolls, many of them complete with clothing and accessories. Annie decided to open a shop to highlight her dolls, selling them as customers preview them, along with other memorabilia related to dolls and the toys girls and boys have loved throughout the years.

Annie’s Simple Memories is focused on the Atlanta, Georgia area, where her shop is located on the outskirts of the city in a suburban mall. Her specialty of dolls and toys defines her customer base. She introduces her shop to local schools and offers various discounts and special promotions to the schools in order to successfully highlight her store in the region.

The consumer target market for memorabilia has continued to grow over the past few decades and, as consumers have more expendable income in this and projected years ahead, they will continue to acquire dolls and toys that represent special memories of the past.

Shifty’s Thrifty Auto Parts

Although not a direct competitor to Thrifty Treasures, Shifty’s Thrifty Auto Parts can be considered an indirect competitor, as the inventory for sale is used. The available inventory contains workable, used auto parts from automobiles of several decades. For the car aficionado, Shifty’s Thrifty Auto Parts is a dream come true, with auto parts from a wild array of cars from all over the world.

Shifty’s Thrifty Auto Parts has been in business since 2005 and has expanded from a small 500 square foot corner hub to a 3,000 square foot store. Customers purchase via in-store selections; however, Shifty’s Thrifty Auto Parts has built a considerably larger online presence during the past ten years, as much of the available inventory is highlighted on the website with the ability to purchase and receive parts in their own home. This part of the business has garnered multiple new customers and boosted the walk-in customer base of the initial years of business.

Competitive Advantage

Thrifty Treasures will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Thrifty Treasures will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide stellar customer service as they assist customers with purchases, returns, and questions that may arise.
• Steady rate of inventory turnover every 30 days that ensures fresh stock of apparel and other items from which to choose.
• Movable discount rates that offer customers an opportunity to save even more on inventory items.
• Inventory that holds value for everyone in the community.

Promotions Strategy

The promotions strategy for Thrifty Treasures is as follows:

Word of Mouth/Referrals

Thrifty Treasures has built up an extensive list of friends and associates over the years by providing expert advice to other shoppers for thrift items. Thrifty Treasures will be the culmination of years of knowledge-put-into-practice, as everyone helps by spreading the word of Thrifty Treasures.

Professional Associations and Networking

Thrifty Treasures will network extensively among community groups and clubs that may require furnishings or some types of inventory that can be purchased at lower-priced rates. Special discounts will be offered to these groups during the first three months of business.

Print Advertising

All residents of the Buford and surrounding communities will receive a direct mail piece, offering a discount for visitors to the store who make a purchase during the first three months of business.

Website/SEO Marketing

Thrifty Treasures will fully utilize their website, sharing photos and video reels of current and new stock items for sale. The website will be well organized, informative, and list all inventory categories that Thrifty Treasures provides. The website will also list their contact information and list their open hours. The website presence will be enhanced with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “thrift company” or “thrift store near me”, Thrifty Treasures will be listed at the top of the search results.

The pricing of Thrifty Treasures will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Thrifty Treasures. Operation Functions:

• Georgia Mae Dutton will be the Owner and President of the company. She will oversee all staff and manage client relations. She has spent the past year recruiting the following staff:
• Beula Simpson will be the Office Manager who will handle the office administration, inventory management, and accounts payable.
• Johnny Clarkson will be the Maintenance Manager at the store, overseeing the placement and care of the inventory, as well as the cleanliness and maintenance of the store.

Milestones:

Thrifty Treasures will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease store and office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Thrifty Treasures
• 6/1/202X – Finalize contracts with wholesale companies for Thrifty Treasures inventory
• 6/15/202X – Begin networking at community events
• 6/22/202X – Begin moving into Thrifty Treasures store and office
• 7/1/202X – Thrifty Treasures opens its store for business

Beula Simpson has been a shopping assistant for ten years for Georgia Mae, helping in the selection of items and disbursal of those items to friends and family members in need. She has been trained by Georgia Mae to select the best inventory items and to purchase these items at reasonable prices.

Financial Plan

Key revenue & costs.

The revenue drivers for Thrifty Treasures are the fees they will charge to customers for their product purchases.

The cost drivers will be the overhead costs required in order to staff Thrifty Treasures. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Thrifty Treasures is seeking $200,000 in debt financing to launch its retail store. The funding will be dedicated toward securing the store and office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 150
• Average Revenue per Month: $36,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, thrift store business plan faqs, what is a thrift store business plan.

A thrift store business plan is a plan to start and/or grow your thrift store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Thrift Store business plan using our Thrift Store Business Plan Template here .

What are the Main Types of Thrift Store Businesses? 

There are a number of different kinds of thrift store businesses , some examples include: Vintage thrift store, Consignment thrift store, and Goodwill thrift store.

How Do You Get Funding for Your Thrift Store Business Plan?

Thrift Store businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Thrift Store Business?

Starting a thrift store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Thrift Store Business Plan - The first step in starting a business is to create a detailed thrift store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your thrift store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your thrift store business is in compliance with local laws.

3. Register Your Thrift Store Business - Once you have chosen a legal structure, the next step is to register your thrift store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your thrift store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Thrift Store Equipment & Supplies - In order to start your thrift store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your thrift store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful thrift store business:

• How to Start a Thrift Store

Thrift Store Business Plan Template

Written by Dave Lavinsky

Thrift Store Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and thrift store owners create business plans to start and grow their thrift stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a thrift store business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Thrift Store Business Plan?

A business plan provides a snapshot of your thrift store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Thrift Store

If you’re looking to start a thrift store, or grow your existing thrift store, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your thrift store in order to improve your chances of success. Your thrift store business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Thrift Store

With regards to funding, the main sources of funding for a thrift store are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for thrift stores.

Finish Your Business Plan Today!

How to write a business plan for a thrift store.

If you want to start a thrift store or expand your current one, you need a business plan. Below are links to each section of your thrift store business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of thrift store you are operating and the status. For example, are you a startup, do you have a thrift store that you would like to grow, or are you operating thrift stores in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the thrift store industry. Discuss the type of thrift store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of thrift store you are operating.

For example, you might operate one of the following types of thrift stores:

• Vintage thrift store : this type of thrift store specializes in buying and selling retro-type clothes, shoes, etc. The items are usually aged over ten years.
• Consignment thrift store: this type of thrift store buys and sells more expensive types of clothing, shoes, jewelry, etc. They are usually luxury items that can be resold if in good condition.
• Goodwill thrift store: this type of thrift store will take donations of all monetary values. The store will also employ more disadvantaged workers and is a charitable benefit to the community.

In addition to explaining the type of thrift store you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of customers served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the thrift store industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the thrift store industry educates you. It helps you understand the market in which you are operating. Secondly, market research can improve your strategy, particularly if your research identifies market trends.The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your thrift store business plan:

• How big is the thrift store industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your thrift store? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your thrift store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and the low income population. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of thrift store you operate. Clearly, families would respond to different marketing promotions than college students, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other thrift stores. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes large retail stores, estate sales, neighborhood garage sales, etc.

With regards to direct competition, you want to describe the other thrift stores with which you compete. Most likely, your direct competitors will be thrift stores located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of thrift stores do they operate?
• What areas do they serve?
• What types of customers do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide thrift store items that your competitors don’t offer?
• Will you provide better employment opportunities?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a thrift store business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of thrift store that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to thrift store services, will you provide skating instruction and training, an area for food and drink, private parties, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your thrift store. Document your location and mention how the location will impact your success. For example, is your thrift store located near a school, a busy neighborhood, or an urban setting, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your thrift store marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your thrift store, including cleaning and maintaining the thrift store, inventory of items, scheduling of staff, taking in new inventory, marketing, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your thrift store to a new location.  

Management Team

To demonstrate your thrift store’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing thrift stores. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a thrift store or have nonprofit and community relations experience.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you do a 20% markup on purchased intake of inventory or will you sell donations people drop off for a low cost ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your thrift store, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a thrift store:

• Cost of thrift store construction and facility build-out
• Cost of thrift store supplies
• Cost of marketing the thrift store
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of items your thrift store will offer, types of customers you will be targeting, and the areas your thrift store will serve.  

Putting together a business plan for your thrift store is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the thrift store industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful thrift store.  

Thrift Store Business Plan FAQs

What is the easiest way to complete my thrift store business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Thrift Store Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of thrift store you are operating and the status; for example, are you a startup, do you have a thrift store that you would like to grow, or are you operating a chain of thrift stores?

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Thrift Store Business Plan : free template

In a world where sustainability and affordability are gaining paramount importance, thrift stores have emerged as a popular choice for eco-conscious and budget-conscious shoppers alike. At the forefront of this movement stands (Thrift Store Ltd), a visionary brand with a mission to revolutionize the thrift store industry. In this comprehensive business plan, we delve into the strategic framework that sets (Thrift Store Ltd) apart, covering every aspect from executive summary to financial projections. Join us as we explore the innovative product offerings, market analysis, marketing strategies, and the dynamic management team that propels (Thrift Store Ltd) toward a bright future. Discover how our commitment to sustainability, community engagement, and customer-centric values lays the groundwork for a thriving and socially responsible retail venture

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Thrift Store Business Plan: Executive Summary

Introduction.

The Executive Summary of the (Thrift Store Ltd) business plan provides an overview of the company’s vision, mission, and key objectives. It serves as a concise yet comprehensive snapshot of the entire business plan. This section is vital as it allows potential investors, partners, and stakeholders to quickly grasp the essence of the business and its potential for success.

Vision and Mission

At (Thrift Store Ltd), our vision is to become the leading thrift store chain that promotes sustainability, affordability, and community engagement. Our mission is to offer high-quality, pre-owned items at competitive prices while actively contributing to local charitable causes.

Business Objectives

1. Establish (Thrift Store Ltd) as a reputable brand in the thrift store industry. 2. Expand the number of store locations in key regions within the next five years. 3. Partner with local charities to support community development and environmental initiatives. 4. Enhance the online presence and e-commerce platform to reach a broader customer base. 5. Achieve steady revenue growth and maintain profitability.

Target Market

Our primary target market includes budget-conscious individuals and eco-conscious shoppers looking for affordable and sustainable shopping options. Additionally, we aim to attract vintage enthusiasts, bargain hunters, and college students seeking unique and cost-effective items.

Competitive Advantage

(Thrift Store Ltd) stands out from its competitors through its commitment to community support and sustainability. By fostering partnerships with local charities, we not only contribute positively to society but also gain customer loyalty and a strong reputation. Our vast and diverse product inventory, which includes clothing, furniture, electronics, and more, ensures a wide selection for customers.

Financial Summary

The financial projections indicate steady growth over the next five years, with conservative estimates in terms of revenue and expenses. Our strong cost management strategies and efficient inventory management will drive profitability while allowing for a competitive pricing advantage.

The Executive Summary highlights the core elements of (Thrift Store Ltd)’s business plan, emphasizing its mission to promote sustainability and affordability while contributing to the local community. As we move forward, we are confident that our innovative strategies and customer-centric approach will position us as a leader in the thrift store industry

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Thrift store business plan: product and service, product inventory.

At (Thrift Store Ltd), we take pride in our diverse and constantly evolving product inventory. Our thrift stores offer a wide range of pre-owned items, including clothing, shoes, accessories, furniture, home decor, electronics, books, and much more. Our inventory is carefully curated and thoroughly inspected to ensure the quality and condition of each item.

Quality Assurance

Maintaining the quality of our products is a top priority for (Thrift Store Ltd). We have implemented a rigorous quality assurance process that involves comprehensive inspections and necessary refurbishments before items hit the store shelves. This commitment to quality allows us to offer value for money to our customers.

Customer Service

At (Thrift Store Ltd), we believe that excellent customer service is the foundation of any successful retail business. Our well-trained and friendly staff are always ready to assist customers, helping them find what they need and providing relevant information about products and services. We value customer feedback and continuously strive to improve our services based on their suggestions.

E-commerce Platform

In addition to our physical stores, we have invested in a user-friendly e-commerce platform to cater to the growing demand for online shopping. Our website provides a convenient and secure platform for customers to browse and purchase items from the comfort of their homes. We ensure timely delivery and secure payment options to enhance the online shopping experience.

Unique Selling Proposition (USP)

Our USP lies in offering a vast and ever-changing inventory of high-quality pre-owned items at affordable prices. By encouraging the idea of sustainable shopping, we attract environmentally conscious consumers looking to reduce their carbon footprint. Furthermore, our partnerships with local charities make customers feel good about their purchases as they contribute to meaningful social causes.

Community Engagement

(Thrift Store Ltd) is not just a store; it is an active participant in the community. We regularly organize charity events, donation drives, and workshops to raise awareness about sustainability and promote a culture of giving back. By fostering a sense of community, we aim to create a loyal customer base and build long-lasting relationships.

(Thrift Store Ltd) offers a wide range of high-quality pre-owned items through its physical stores and e-commerce platform. With an emphasis on customer service, sustainability, and community engagement, our thrift store is well-positioned to attract a diverse and loyal customer base

Thrift Store Business Plan: Market Analysis

Industry overview.

The thrift store industry has experienced significant growth over the past decade, driven by increasing environmental consciousness and a shift towards sustainable shopping practices. As consumers become more mindful of their environmental impact, the demand for affordable, pre-owned goods has risen. (Thrift Store Ltd) aims to capitalize on this trend by offering a diverse range of high-quality secondhand products.

Market Size and Potential

The market for thrift stores has expanded substantially, with more consumers choosing to buy used items as a cost-effective and eco-friendly alternative. According to market research, the thrift store industry is projected to continue growing steadily in the coming years. (Thrift Store Ltd) seeks to tap into this potential by establishing itself as a leading player in the market.

Target Market Segments

Our target market comprises several distinct segments: 1. Eco-Conscious Consumers: Individuals who prioritize sustainability and seek environmentally friendly shopping options. 2. Budget-Conscious Shoppers: Customers looking for cost-effective alternatives to retail prices without compromising on quality. 3. Vintage Enthusiasts: Collectors and fashion enthusiasts who appreciate unique and one-of-a-kind items. 4. College Students: Young adults seeking affordable furniture, clothing, and household items for their dorms or apartments.

Competitor Analysis

While the thrift store industry presents an opportunity for growth, it is also competitive. (Thrift Store Ltd) faces competition from various players, including other thrift stores, online marketplaces, and traditional retail outlets. Understanding the strengths and weaknesses of competitors is essential for (Thrift Store Ltd) to position itself effectively.

SWOT Analysis

Strengths: • Diverse product inventory with high-quality pre-owned items. • Strong commitment to sustainability and community engagement. • Well-established physical stores and a user-friendly e-commerce platform. Weaknesses: • Limited brand recognition compared to some established competitors. • Initial challenges in acquiring a comprehensive inventory for new store locations. Opportunities: • Growing consumer interest in sustainable shopping practices. • Expansion potential in untapped markets and online sales. • Collaborations with local influencers and charities for increased visibility. Threats: • Intense competition from other thrift stores and online resellers. • Economic downturns affecting consumer spending on non-essential items.

Marketing Strategies

To gain a competitive edge, (Thrift Store Ltd) plans to implement a comprehensive marketing strategy: 1. Digital Marketing: Leveraging social media, email marketing, and search engine optimization (SEO) to increase online visibility and attract potential customers. 2. In-Store Promotions: Offering special discounts and loyalty programs to incentivize repeat purchases. 3. Community Partnerships: Collaborating with local charities and hosting joint events to engage the community and boost brand awareness. 4. Customer Referral Program: Encouraging satisfied customers to refer friends and family through exclusive rewards.

The market analysis demonstrates the significant potential for (Thrift Store Ltd) in the growing thrift store industry. By targeting various customer segments, understanding competitors, and implementing effective marketing strategies, (Thrift Store Ltd) aims to carve out a successful niche for itself in the market

Thrift Store Business Plan: Marketing & Sales Strategy

Brand identity.

Creating a strong brand identity is crucial for (Thrift Store Ltd) to stand out in the competitive thrift store market. We aim to portray ourselves as a socially responsible and environmentally conscious brand that offers high-quality products at affordable prices. The brand identity will be reflected in our logo, store aesthetics, website design, and marketing materials.

Online Presence

In today’s digital age, having a robust online presence is essential for any business. (Thrift Store Ltd) will invest in building and maintaining an engaging website and regularly updating social media platforms. By offering a seamless online shopping experience, we can reach a broader audience beyond our physical store locations.

Content Marketing

Content marketing is an effective way to engage with our target audience, build brand authority, and drive traffic to our website. We will create valuable and informative content related to sustainable living, thrift shopping tips, and community impact. This content will be shared through blog posts, videos, and social media to foster a sense of community and attract potential customers.

Visual Merchandising

A visually appealing and well-organized store layout is vital for attracting and retaining customers. (Thrift Store Ltd) will implement effective visual merchandising techniques to create an inviting shopping environment. By showcasing products creatively and categorizing them logically, we can enhance the overall shopping experience for our customers.

Customer Loyalty Program

To encourage repeat business, (Thrift Store Ltd) will introduce a customer loyalty program that rewards frequent shoppers with exclusive discounts, early access to sales, and special offers. This program will not only foster customer loyalty but also incentivize word-of-mouth referrals, contributing to our customer acquisition efforts.

Partnerships and Collaborations

Collaborating with local influencers, bloggers, and charities can significantly boost (Thrift Store Ltd)’s visibility and credibility within the community. We will actively seek out partnerships to host joint events, co-create content, and support local charitable initiatives. These partnerships will not only widen our reach but also showcase our commitment to giving back to society.

Advertising and Promotions

Strategic advertising and promotional campaigns will play a crucial role in increasing brand awareness and attracting new customers. We will utilize both digital and traditional advertising methods, such as online ads, flyers, and local media partnerships, to reach our target audience effectively.

Customer Feedback and Reviews

Listening to our customers is integral to improving our products and services. (Thrift Store Ltd) will actively seek customer feedback through surveys, social media interactions, and email communications. Positive reviews and testimonials will be leveraged in marketing efforts to build trust and credibility among potential customers.

Sales Forecast

Based on market research and historical data, (Thrift Store Ltd) has formulated a sales forecast that outlines expected revenue and growth targets over the next few years. Regular reviews and adjustments will be made to align with market trends and performance.

(Thrift Store Ltd)’s marketing and sales strategy aims to create a strong brand presence, engage customers both online and offline, and drive business growth through effective advertising, customer loyalty programs, and community partnerships. By combining these strategies, we are confident in positioning (Thrift Store Ltd) as a leading thrift store brand with a dedicated customer base

Thrift Store Business Plan: The Management Team

Executive team.

The success of (Thrift Store Ltd) hinges on the capabilities and expertise of its management team. The executive team consists of individuals with a passion for sustainable retail and extensive experience in the retail industry. 1. John Doe – Founder & CEO: John has a strong background in business management and a deep commitment to sustainability. He brings a wealth of experience from his previous roles in the retail sector, making him well-equipped to lead (Thrift Store Ltd) to success. 2. Jane Smith – Chief Operating Officer (COO): Jane is an operations expert with a keen eye for streamlining processes and optimizing efficiency. Her experience in managing retail operations ensures smooth day-to-day functioning of (Thrift Store Ltd) stores. 3. Michael Johnson – Chief Financial Officer (CFO): Michael is a seasoned finance professional with a track record of financial planning and analysis. He plays a critical role in the company’s financial forecasts and ensures fiscal responsibility.

Organizational Structure

(Thrift Store Ltd) adopts a flat organizational structure to encourage open communication and efficient decision-making. The structure comprises various departments, each headed by competent managers responsible for their respective areas. 1. Store Operations Department: Oversees all aspects of store management, including inventory, visual merchandising, and customer service. 2. Marketing and Sales Department: Manages the company’s marketing efforts, customer engagement, and brand promotion. 3. Finance and Accounting Department: Handles financial planning, budgeting, and financial reporting. 4. Human Resources Department: Responsible for hiring, training, and employee development.

Employee Training and Development

(Thrift Store Ltd) believes in investing in its employees’ growth and development. Comprehensive training programs are provided to all staff members, emphasizing customer service, product knowledge, and sustainability values. Regular workshops and skill enhancement sessions ensure that employees stay up-to-date with industry trends.

Company Culture

At (Thrift Store Ltd), fostering a positive company culture is essential. We encourage teamwork, creativity, and innovation among our employees. Additionally, our commitment to sustainability and community engagement is instilled in every employee, creating a sense of purpose and pride in their work.

Succession Plan

To ensure the long-term sustainability of (Thrift Store Ltd), a robust succession plan is in place. Key positions within the organization have designated successors who receive mentorship and guidance from the current executives. This ensures a smooth transition in case of any changes in leadership.

The management team at (Thrift Store Ltd) possesses the expertise and dedication required to lead the company toward its goals. With a flat organizational structure that encourages collaboration and employee development, (Thrift Store Ltd) is poised for success in the thrift store industry

Thrift Store Business Plan: Financial Forecasts or Projections

Financial projections.

Financial forecasts are crucial for (Thrift Store Ltd) to make informed business decisions and secure potential investors. The following projections outline the company’s expected financial performance over the next five years.

Revenue Projections

Based on market research and anticipated growth, (Thrift Store Ltd) expects its revenue to steadily increase over the forecast period. Factors contributing to revenue growth include expanding store locations, increasing online sales, and effective marketing strategies.

Cost of Goods Sold (COGS)

The cost of goods sold includes the expenses related to purchasing inventory, refurbishment, and any additional costs associated with preparing products for sale. (Thrift Store Ltd) will focus on efficient procurement processes and cost management to keep COGS at an optimal level.

Operating Expenses

Operating expenses encompass all the costs incurred in running (Thrift Store Ltd) business operations. These include employee salaries, rent, utilities, marketing expenses, and administrative costs. Strict budgeting and expense monitoring will be implemented to ensure effective financial management.

Gross Profit Margin

By maintaining a balance between revenue growth and cost optimization, (Thrift Store Ltd) aims to achieve a healthy gross profit margin. This metric reflects the company’s ability to generate profits from its core operations and is essential for sustained growth and financial stability.

Net Profit Margin

The net profit margin is a critical indicator of (Thrift Store Ltd)’s overall profitability. It represents the percentage of revenue that remains as profit after deducting all expenses, including COGS, operating expenses, and taxes. Consistently maintaining a positive net profit margin is crucial for the company’s long-term success.

Cash Flow Management

Effective cash flow management is paramount for (Thrift Store Ltd) to meet its financial obligations, invest in growth opportunities, and weather unforeseen economic challenges. The company will closely monitor its cash flow to ensure adequate liquidity and financial stability.

Investment and Financing

To fund its expansion and growth initiatives, (Thrift Store Ltd) may seek investments from potential partners, venture capitalists, or through loans. A balanced approach to investment and financing will be employed to maintain financial flexibility while meeting growth targets.

Risk Assessment

As with any business venture, (Thrift Store Ltd) faces inherent risks, such as changes in consumer behavior, economic downturns, and intense competition. The company’s risk management strategy includes diversification of product offerings, market research, and contingency planning to mitigate potential risks.

The financial projections provide a comprehensive view of (Thrift Store Ltd)’s expected financial performance over the next five years. By focusing on revenue growth, cost optimization, and effective financial management, (Thrift Store Ltd) is well-prepared to achieve its business objectives and become a prominent player in the thrift store industry

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Thrift Business Plan Template & Guidebook

Starting a thrift business can be an exciting and profitable venture for budding entrepreneurs. But, it's important to remember that the success of your thrift store depends on having an organized, comprehensive business plan in place. To help you create a road map for your thrift shop, use the #1 Thrift Business Plan Template & Guidebook. This comprehensive guide will show you not only how to write a business plan but also provide you with detailed instructions on how to navigate the process from beginning to end. You’ll be well on your way to developing a successful thrift business – with confidence – in no time!

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Thrift Business [11 Steps]
• 10+ Best & Profitable Thrift Business Ideas [2023]

How to Write a Thrift Business Plan in 7 Steps:

1. describe the purpose of your thrift business..

The first step to writing your business plan is to describe the purpose of your thrift business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a thrift business:

Our purpose is to offer quality pre-owned products to our customers at an affordable price while helping to reduce the environmental impact of over-consumption and waste. We strive to build strong relationships with our customers and provide exceptional customer service. We will use the profits from our business to help support local charities and organizations dedicated to sustainability, recycling, and environmental awareness.

2. Products & Services Offered by Your Thrift Business.

The next step is to outline your products and services for your thrift business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your thrift business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your thrift business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your thrift business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a thrift business?

• Computer and cash register
• Inventory management system for tracking sales and purchases
• Shelving, racks, or other furniture for storing merchandise
• Security system (cameras, alarms, etc.) to protect merchandise and guard against theft
• Adequate lighting for store hours
• Signs for advertising and/or regulations inside store
• Insurances to cover property against fire, theft, etc.
• Licenses or permits required by local authorities (including the Department of Health in some states)

5. Management & Organization of Your Thrift Business.

The second part of your thrift business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your thrift business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Thrift Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a thrift business varies based on many different variables, but below are a few different types of startup costs for a thrift business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your thrift business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your thrift business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your thrift business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Thrift Business Plans:

Why do you need a business plan for a thrift business.

A business plan for a thrift business is necessary to provide direction and guidance for launching, managing, and growing the business. It helps determine the startup capital required and identifies potential areas of revenue. Additionally, it can provide a benchmark to measure success as the business progresses over time, enabling an entrepreneur to adjust strategies quickly and make informed decisions.

Who should you ask for help with your thrift business plan?

It is always a good idea to get input from experts in the field and those who have experience starting and running a business. This could include a qualified business consultant, accountant, lawyer, and/or mentor. Additionally, you may want to research resources available from government or local small business agencies.

Can you write a thrift business plan yourself?

Yes, it is possible to write a thrift business plan yourself. Creating a thorough business plan is one of the most important steps when launching a new project, especially if it involves a lot of money. To write your own thrift business plan, start by researching the market and competitors, list out your goals and objectives, identify potential funding sources, create a budget and determine how you will measure success. Additionally, make sure to cover topics such as strategies for marketing, inventory management and staffing.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to write the business plan for a thrift shop

Do you feel passionate about doing your bit for the environment by giving a second life to pre-loved clothes and accessories? If you have a penchant for vintage fashion and a head for business, you may have decided to open your own thrift shop.

Before ordering in your stock and hiring a few friendly faces to talk with your customers about the benefits of slow fashion, however, it's important to think carefully about your business plan - because the success of your venture depends on it.

If you're not sure how to go about drafting up a business plan, then you've come to the right place. Simply read our guide below to make your thrift shop business plan come to life.

Why even write a business plan for a thrift shop?

Writing a business plan is an essential step in creating a business. It has three main objectives.

First of all, it enables you to check that your venture can be profitable.

A business plan will also help you evaluate exactly how much capital is needed to start your business.

Finally, a thrift shop business plan will also be specifically requested by any bank or investor you decide to approach, so drafting one up is a mandatory step when it comes to securing financing.

What information is needed for a thrift shop business plan?

Market research is an essential prerequisite for the creation of any business plan.

It will not only enable you to understand the dynamics of the market you've chosen to enter, but also help you understand the expectations of your customers to ensure your offering the type of second-hand goods and service they're looking for.

Writing a thrift shop business plan also enables you to keep track of the staff and equipment requirements of launching and operating a thrift shop, as well as how much each investment will cost.

It's also within your thrift shop business plan that you'll add up the costs associated with the stock, insurance, legal and accountancy fees, as well as your utility bills and rent.

To obtain the best rates and ensure you estimate these expenses as accurately as possible, get in touch with several professionals and ask them for quotes.

The financial forecast of a thrift shop business plan

Let's now look at the financial part of your thrift shop business plan. The financial forecast is composed of four tables, all of which have a specific function that we delve into below.

The projected loss and profit account

With this table, you'll have an overview of the expected turnover, growth, and profitability for your thrift shop over the first 3 to 5 years of activity. This essential chart helps you identify potential opportunities to reduce costs and enables you to ensure the profitability of your thrift shop.

The projected balance sheet

The projected balance sheet shows the value of the company's assets at a given time, and, in particular, the value of the assets (what the company owns) and liabilities (what the company owes to suppliers, lenders, etc.).

The projected cash flow statement

With the help of a projected cash flow statement, you will see how much cash is generated in your thrift shop business plan, where it comes from, and how it is used, whether it's to repay its loans or purchase more stock.

You'll also be able to see if you have enough cash to fulfill your obligations, or even if you might soon have enough cash to expand your business by opening more thrift shops.

The start-up capital

This section of your thrift shop's financial forecast gives your bank or investor a quick overview of the resources needed to launch your business and their costs - as well as ways in which they'll be financed, including via equity contribution, shareholder loans, and bank loans.

The editorial section of a thrift shop business plan

Whilst some believe that numbers speak louder than words, the written part of your thrift shop business plan should not be neglected.

Considering the fact that it puts the figures and estimations set out in the financial forecast into context, it's arguably just as (if not, more) important as the financial part.

Presenting each aspect of the business in detail, as well as the specific risks associated with it (and how you plan to combat them), the editorial section demonstrates to investors that you've thought long and hard about how you can create a strong and adaptable business model.

A thrift shop business plan is usually made up of the parts we present below.

The executive summary

Think of this section as the equivalent of a cover letter for your thrift shop business plan. The aim here is to introduce your project to investors in as engaging and concise a manner as possible, encouraging them to read on and learn more about your exciting venture.

Company description

In this part, you place a spotlight on the business's partners and their roles, as well as the distribution of the company's capital and the location of your thrift shop.

Products and services

This section explains the products being sold by your thrift shop, as well as the prices you've set for each.

Market research

It's within this section of the thrift shop business plan that you'll present the results of the market research we mentioned at the beginning of this article. The objective here is to demonstrate that there is indeed a viable business opportunity for your thrift shop to flourish.

Your business strategy

In this part, you'll reveal three key plans for your thrift shop business plan:

• Your pricing strategy - the prices you'll set
• Your marketing strategy - the actions you'll take to attract customers and build customer loyalty
• Your risk management strategy - how you'll minimise the risks related to your business

From your employees to your relationship with suppliers, you'll detail the operational organisation of your business.

The financial plan of your thrift shop

The financial forecast of your thrift shop, referred to earlier in this article, is accompanied by commentary that explains the assumptions used and the main results expected.

What tool should I use to write my thrift shop business plan?

Writing a thrift store business plan is not an easy task, especially when you have never done it before. There are several tools available to help you write your thrift shop business plan. To ensure you pick the solution that best suits you, we've reviewed the pros and cons for each below.

Write your business plan using Word or Excel

This solution has one major advantage: it's cheap.

Be wary, however, that you'll need to have an accounting background (or at least be very good with numbers) to write your plan in this way without making mistakes in the calculations.

Hire a consultant to develop your business plan

Hiring a chartered accountant or consultant to take care of the financial part of your thrift shop business plan is a good way to avoid errors.

However, the fees are generally quite expensive: budget around £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

If you decide to hire a consultant or accountant, remember to check what's included in the service - are they developing a complete business plan or just doing the financial forecast? And are you willing to pay extra for them to make changes, if necessary?

Using online business plan software

The last option is a tempting one: create a business plan for your thrift shop using online business plan software .

There are several advantages to using specialised software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan.
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you.
• You get a professional document, formatted and ready to be sent to your bank.

This third option offers an interesting compromise as using software is not only quicker and less technical than drafting your business plan alone, but it's also way less expensive than using a consultant.

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That's it for now, we hope this article has helped you better understand how to write a thrift shop business plan. If you have any questions related to setting up your business, please do not hesitate to contact us.

Also on The Business Plan Shop

• Business plan template for a thrift shop
• How to start a thrift shop
• Why do you need a business plan?

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Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Thrift Store Business

A thrift store business focuses on reselling items such as clothing, home goods, and furnishings. Some sell a little bit of everything, while others focus on a niche such as vintage clothing. Many thrift stores are focused on charity and/or nonprofit work, such as funding job programs or feeding the hungry. However, some thrift stores are for-profit businesses that seek to maximize revenue as any other for-profit business would.

Learn how to start your own Thrift Store Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a thrift store business by following these 10 steps:

• Plan your Thrift Store Business
• Form your Thrift Store Business into a Legal Entity
• Register your Thrift Store Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Thrift Store Business
• Get the Necessary Permits & Licenses for your Thrift Store Business
• Get Thrift Store Business Insurance
• Define your Thrift Store Business Brand
• Create your Thrift Store Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your thrift store business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is very important. Read our detailed guide on how to name your business . We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your thrift store business?

Business name generator, what are the costs involved in opening a thrift store business.

According to one previous thrift store owner in Nevada, opening a store costs between $20,000 and $30,000. That is if you do it right and have enough capital to stay open long enough to build a business. Among other things, you’ll need to rent space, purchase shelving and display cases, obtain merchandise, and implement a marketing plan. 

What are the ongoing expenses for a thrift store business?

The ongoing expenses for a thrift store include rent for the commercial space, utilities, internet, and phone. Storage is often an expense as well unless you have enough space to store plenty of merchandise. Probably the most significant ongoing expense is merchandise purchases. These businesses have to keep purchasing merchandise to keep the shelves filled. 

Who is the target market?

The target market for thrift stores is typically bargain hunters. Many of these are elderly and on fixed incomes, but not all. Some are just excited to find the best bargain or the hidden gem like they see others do on TV. There are also certain types of thrift stores, such as vintage clothing shops, that target a more specific market like fashion-conscious customers. 

How does a thrift store business make money?

A thrift store makes money by selling merchandise. This process begins by finding merchandise for sale that the businesses can buy at the right price. These businesses need to acquire merchandise for a low enough price to turn a profit when they resell it. 

As a general rule, thrift stores should price their merchandise at a quarter of the value of retail. So, if a good costs $100 in a store, you should charge $25 for it in your thrift store. There are exceptions to this rule, such as if you find a desirable product in great condition. However, you want to avoid overpricing your products because you want repeat customers. 

How much profit can a thrift store business make?

Thrift stores are not the most profitable businesses. Many are lucky to make $100 to $200 a day – just enough to keep the lights on. If you are trying to start a business with serious profit potential, a thrift store is not it. 

Most of these businesses are labors of love and/or charity organizations. 

There are exceptions. Large national chains like Goodwill are quite successful.

How can you make your business more profitable?

The biggest key to profitability in the thrift store business is learning how to buy the right merchandise at the right price. Far too many thrift stores fail to be profitable because they don’t buy the right merchandise or spend too much on merchandise. For example, they may pay $1,000 for a storage unit sale but only make $500 from the merchandise they find in the storage unit. If you want to increase your profitability, pinpoint where you can get the most bang for your buck in merchandise purchases. 

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your thrift store business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a thrift store business

One of the most effective ways to market a thrift store is to use social media. Platforms like Pinterest and Facebook have groups dedicated to thrift store shopping, antiques, and similar hobbies. If you can become a part of all of these different groups and post high-quality photos of your most desirable merchandise, you can attract customers to your store. Once they get there, they are likely to look around at all of your merchandise.

How to keep customers coming back

For most thrift store customers, the reason to frequent a store is to find a great deal. You can only deliver on these expectations if you are good at finding merchandise for your store. The better your inventory, the more likely you will get repeat customers. 

Another way to ensure customers like your store is to avoid excessive markups on merchandise. If you try to charge too much for your goods, shoppers will notice and may steer clear of your store.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

A thrift store is right for people who love a good deal and are willing to work hard to get one. If you love shopping at thrift stores, have a passion for guessing the value of merchandise, and are motivated – either to pay your bills or to contribute to a good cause – you may be the perfect fit for a thrift store business. 

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a thrift store business?

Thrift store owners spend their days on two primary tasks – obtaining merchandise and running their store. They obtain some merchandise through donations, but they also seek out storage unit sales and estate sales. A typical day may include scanning publications for potential merchandise purchases, organizing current merchandise, selling goods to customers, and designing displays. 

What are some skills and experiences that will help you build a successful thrift store business?

Running a successful thrift store requires good instincts for estimating merchandise value. If you spend $500 on merchandise that you can only sell for $400, you are going to struggle to get by. But if you are skilled at identifying a great deal – merchandise that you can buy low and sell high – then you are more likely to be successful as a thrift store owner. 

Other skills and experience that can prove useful are sales experience, negotiation skills, organizational skills, and retail display design experience.

What is the growth potential for a thrift store business?

The growth potential for a thrift store is usually not that great. Depending on where you live, you may have seen multiple thrift stores open and close in your area. That’s because it is difficult to turn a significant profit in the thrift store business – unless you are one of the big players. However, that does not mean growth is not possible. With the right model and some luck, you could hit upon a system that leads to growth for your business. 

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a thrift store business?

One of the most often overlooked aspects of the thrift store business is obtaining merchandise. New business owners often assume that people will just bring them merchandise for free or that they can go to a storage unit auction and get all they need. The problem is that these strategies tend to result in a lot of sub-par merchandise that you can’t make a profit on. 

To be successful in this business, you need sources of higher-quality merchandise. Estate sales are one source that can be fruitful. Estate sales companies often want to get rid of stuff as effortlessly as possible. If you can get them to call you first, you will have access to merchandise that can help keep your store profitable.

How and when to build a team

Thrift stores are not the most profitable businesses, so the more you can keep your labor costs down, the better. Ideally, you and perhaps your partner can do all of the work. Of course, business could be so good that you can’t keep up with everything. If that is the case, it is time to start looking for help. 

Have a Question? Leave a Comment!

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Thrift Store Business Plan Sample

AUG.23, 2018

Do you want to start thrift store business?

Do you want to start a thrift store? Well, if you want to start a business whose startup costs will be run over by the profits earned in the very few months, helping the underprivileged side by side, then this is undoubtedly the most suitable business for you.

A thrift store resembles opening a second hand store , in which you can keep used clothes, books, furniture, crockery or whatever you want, and sell them in relatively low prices. The thrift store owners gather the items by the rich community, which are in a position to be used again, and keep them in their stores.

Just like every other business, the first thing before starting a consignment shop is to make a business plan for thrift store , adding all the details and decisions about how will you manage to collect the items, how many persons will be required, which will be the most suitable location etc. As you might be starting this business without experience, you will be in need of a help regarding writing an professional business planning . You can take help from this s thrift store business plan sample  free of cost written for a thrift store startup named, ‘City Thrift Store’.

Executive Summary

2.1 the business.

City Thrift Store will be owned by Jude Daylon, who is a graduate from Harvard University. City Thrift Store will be located on Howard Street, one of the bustling streets of San Francisco. The business plan for thrift store is aimed to gather the used items which are in a condition to be used again and sell them at economical prices. The variety and number of the used items depend upon how vast do you want your business to expand. City Thrift Store is aimed to keep used clothes, books, toys, musical instruments, furniture items, small electronic instruments at the store with appealing presentation all the time.

2.2 Management

Management is the primary footstep on which the whole thrift store business stands. This business will require extraordinary management skills to make sure that the stock of items is available in the store every time and is displayed in the appealing way.

Jude has many unique thrift store marketing ideas , and he will act upon all by being the manager himself. Before starting a consignment shop business , Jude has planned all the policies and possible mechanisms for the smooth running of the store. He has hired a number of drivers and social workers to collect the items by roving in the whole San Francisco, which is a necessity to start a second hand store .

2.3 Customers

Our target market will be the residents who can’t afford expensive things and have relatively low income than the other citizens. Moreover, the people who are travelers, tourists, or students and want to buy reasonable but good quality goods for temporary use will also be our potential customers.

2.4 Business Target

We aim at becoming the most visited thrift store in the whole San Francisco. We aim at stabilizing our business plan for thrift store and balancing the initial startup costs with earned profits by the end of the first year.

The business targets and the profits as forecasted by our experts for the next three years are demonstrated in the following graph:

Company Summary

3.1 company owner.

City Thrift Store will be owned by Jude Daylon. Jude is a graduate and has been working as a senior manager in a prestigious restaurant for four years. Jude has done a lot of research on how to start a second hand store  and is passionate enough to help the underprivileged. He wants to start a trusted thrift store by collecting used products from the wealthier community.

3.2 Why the business is being started

San Francisco is the city, which is suffering from highest levels of income inequality. The difference of the income can be demonstrated by the fact that the city is divided in two groups of rich and poor, and the category being called as rich is the one which has 11 times income than that of the poor. An estimate shows that one out of ten families in the Bay Area are struggling to hardly make both ends meet.

Besides that, the rich community dispose of many things which are in usable or sometimes good state just because they get bored. Such people want someone to take away donations of clothes and other things from them and give to the poor, by usually putting them outside of their houses. So, Jude has decided to help the low-income and average households of his city by gathering those items and running a consignment shop .

3.3 How the business will be started

Don’t do the mistake of opening a consignment shop , without efficient planning. You will need the persons to load the luggage onto the vehicles and display them in different sections in the store. Jude has planned to make separate and arranged sections of the products so that customers can easily buy them. Jude has arranged the vehicles for loading the used items, he has made a list of the staff he will require to hire, moreover, he will also hire some good speakers to raise awareness among the wealthy to donate the things they don’t need.

If you are going to enter this venture you have to collect many things before starting the shop. But, this all can be done only by accurate planning. If you are new to the business plan for thrift store , you can take help from opening a consignment store ideas and plans available on the web like this one free of cost.

The financial experts have forecasted following costs for expenses, assets, investment, and loans for the startup.

Services for customers

If you are thinking about starting a second hand store , you must decide the things you will keep in your store. A thrift store can contain anything which can prove useful for the people. In case, you are a beginner in this business and don’t know much about how to open a second hand store , you can take help from this thrift store business plan sample of City Thrift Store. This sample business plan will not only guide you in opening the store but will also assist you by explaining how to run a consignment store successfully.

The City Thrift Store has hired skilled repairers to repair any type of damages to the second-hand objects and make them reusable. Our store will sell the following items.

• Furniture: We’ll clean and polish the furniture items such as wooden tables, chairs, cradles, old rugs and carpets, cupboards, etc. which are in a reusable condition and sell them to at very low and economical prices.
• Clothes, Shoes & Books: The reusable books, shoes, fashion accessories, and clothes like dress shirts, sweaters, jackets etc. will also be kept at the store to be purchased by the low-incomes.
• Small Electronic Devices: We will also sell the technology products and small electronics such as cell phones, microwaves, printers, mobile and computer accessories, storage devices and much more than that.
• Sports Equipment & Musical Instruments: This type of inventory is often found in the solely new condition as people after getting bored put their guitars, pianos, rackets, footballs and the things like that outside their house to be taken by someone, so we have decided to keep such reusable things in our shop.
• Miscellaneous: Besides the above-mentioned necessities of living, we will also keep the miscellaneous items like crockery, decoration pieces, baskets, plastic products etc.

Marketing Analysis of thrift store business

The most significant component of a thrift store business plan is its precise and accurate marketing analysis. Marketing analysis will help you to understand the position and demand of this business plan for thrift store in the latest market. It is important as it can help you in finding the most suitable location for your store. The location which will be frequently visited by your target customers and your donors. Your consignment shop business plan  must also include the strategies and policies you’ll adapt to market your services and how effectively can you gain and maintain your potential donors.

So, if you have any doubts and confusions regarding how to start a consignment shop business , you can take help from the thrift store business plans available online, you can also take help from this thrift store business plan sample  for City Thrift Store. You can also have the opportunity of downloading business plan for thrift store pdf from the web. No matter, how many business plans you read before writing yours, that cannot be equivalent to a single consignment store business plan  written by a professional marketing analyst. It would be better for you to seek the services of a professional to make for you a thrift store business plan template . A professional can better understand the marketing trends and do accurate marketing analysis and segmentation of your location before making a thrift store business model  for you.

5.1 Market Trends

Due to the rising economic inequality in the city and financial stress on the underprivileged and the average, people are now trying to cut their discretionary spending and are fascinated towards the idea of buying second-hand things on reasonable prices. The industry of selling used goods is growing at a noticeable rate of 2.6% annually. According to IBISWorld, there are about 84,037 such businesses running in the United States, employing more than 267 thousand people in the whole country. No matter, how many businesses of thrift store are currently running in the country, there is still demand of more in some areas, like the one for City Thrift Store.

If you are thinking that how can you generate a profit by selling the goods at almost no prices, whereby you have to bear the expenses of the staff you hire, don’t worry current report by IBISWorld has shown that this business has generated $20 billion at an annual rate.

These statics shows that you can also earn a massive profit besides helping people, provided that you plan your business plan for thrift store successfully.

5.2 Marketing Segmentation

Our customers will be the people with average financial background. Most people living in the Bay Area of San Francisco do not have enough incomes to meet their expenses in a rich city. These people lust for the items like clothes, furniture etc. and are convenient in buying used items. It is also a requirement of this business to attract notable and rich people for maximizing our donations, they will not be our customers, they will be our need. We’ll arrange seminars and advertise the need of their donations through social media.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Moneyless Senior Citizens: According to a report by City Performance Scorecards, more than 15 thousand senior citizens are living below the poverty level in San Francisco. The health and age of such people don’t allow them to meet their needs by hard work.

5.2.2 Underprivileged Children, Teens & Adults: There are many children and teens in the city who desire to buy good clothes, tech-based things, or sports equipment and musical instruments, but the reality is that most of their desires remain unfulfilled due to the costs of such items. Moreover, about 61 thousand young and adults are living below the poverty level in San Francisco, according to the same report. So, our marketing analyst has identified this as our largest target group in buying used goods.

5.2.3 Tourists & Students: There are often situations when you are roaming in another country, but due to wrong estimates, become out of budget. So, the tourists or students who have to cut their discretionary needs, temporarily, will also be one of our target groups.

5.3 Business Target

We aim at serving more and more needy and average people of our city to help them in raising their status and spirits. Our aim is to become the most visited thrift store in our city and the most trusted thrift store in the eyes of donors. We also aim to balance the initial startup costs with the profit earned in only a few months after the launch.

5.4 Product Pricing

Our main target is to serve the underprivileged community of the city, but, due to requirements of staff, wages of employees, costs of inventory, and expenses of transportation, we can’t sell the items totally free of cost. However, we have priced all the items at very meager and low costs to meet the targets of our business plan for thrift store .

Great service

Great service. Good turnaround time and quality work. Thanks!

If you are opting for starting a consignment store , you must prepare an effective and detailed business plan first. If you want your business plan to be complete and outstanding than instead of focusing on just how to open a consignment store you should also focus on how to run it successfully and how to pull the traffic to your site. If you are having difficulty about how to start a thrift store business plan, you can take help from this sample business plan for the City Thrift Store.

6.1 Competitive Analysis

Our biggest competitive advantage is the location which we have chosen after a great research and analysis. Our store is located on the main street of San Francisco, which is a street every citizen encounter while travelling in the city, as it connects the residential communities to the offices, institutes and recreational places. When so many people pass by our shop daily, a large number of them will be surely attracted toward our beautiful display through the large sized windows.

Our second competitive advantage is our excellent management system. We’ll collect the item which are in a good condition daily and display them in well-organized separate sections in our stores for the convenience of our buyers. Moreover, we have a quick transport facility for the rich people who want to donate their goods to us in large amounts.

6.2 Sales Strategy

For promoting our sales, we will advertise our store in local magazines, newspapers and social media. We will also distribute our flyers in nearby schools and colleges. We’ll post our banners in well-off residential communities.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

Personnel plan

No matter how much you invest your assets on your startup, it is all going to be wasted if you don’t have honest and dedicated workers. Before you open a consignment store , you must make a list of the workers you’ll need to hire. You should train your staff before starting your shop that how to value the needs of customers and help them in finding the best product for them.

If you are searching for how to start a consignment store,  then you can take help from this sample business plan for thrift store in which we have a complete guide on how to run a consignment shop . This thrift store business plan sample will guide you by informing you about the staff Jude will hire for running the City Thrift Store.

7.1 Company Staff

Jude will manage the overall operations and will hire the following people for his assistance.

• 1 Accountant for maintaining financial and other records
• 2 Cashiers for selling products and maintaining records
• 6 Salespersons for organizing the store and its different sections and assisting customers in finding their required item
• 3 Drivers for collecting products from the whole city every morning
• 5 Technicians/Workers/Sewers/Menders for repairing and reviving used things
• 2 Cleaners for maintaining freshness and cleanliness of the store
• 2 Persons responsible for advertisement of the store

Financial Plan

The first step before starting any business is to make a comprehensive business plan, and the most important part of an effective thrift store business plan is its financial plan. Before you start a consignment shop , you must collect a lot of items to keep in your store. You can find them free of cost but to be good and distinguished, you should sell these products after reviving them. For managing the costs of their repairs, the rent of your store and the salaries of your employees, you will need money initially. So, in your financial plan, you have to plan the ways of balancing your expenses with the profits earned. Although the business plan for thrift store is in great demand and has is responsible for generating a lot of profit annually, but besides thinking about how to start a consignment shop , you should also think about the worst situations you can face financially.

If you are searching for profit thrift store business plan and need help in writing an effective financial plan, you can take help from this sample business plan for thrift store on how to open a consignment shop . The statics and figures in this sample business plan are for the City Thrift Store, so, it is advised to hire a professional financial planner advisor, who can write for you an accurate financial plan according to your investments and sales.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

  8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

 8.3 Projected Profit and Loss

8.3.1 profit monthly.

The following charts shows detailed information about profit and loss, and total cost of sales.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Download Thrift Store Business Plan Sample in pdf

OGS capital writers specialize in business plan themes such as lingerie store business plan , snicker shoes business plan , clothing store business plan , bridal shop business startup , business plan for clothing store and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Here's how you open a profitable thrift store.

Launching a thrift store can be an exciting venture for those with a keen eye for value and a commitment to sustainable shopping practices.

Whether you're a seasoned thrifter with a knack for finding hidden gems or a motivated entrepreneur aiming to make an impact in the community, establishing a thrift store requires strategic planning and enthusiasm.

In this blog post, we'll walk you through the crucial steps of opening a thrift store, from the initial idea to the day you welcome your first customers.

How you should prepare to open a thrift store

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a thrift store because it will define the type of merchandise you offer, the store's aesthetic, and the demographic you aim to attract.

This decision will influence your location choice, store layout, inventory selection, pricing strategy, and marketing approach. A well-defined concept can help your thrift store stand out and draw in the right customers.

Essentially, selecting a concept is like deciding on the theme of your thrift store's narrative before you start decorating the space and curating the items.

To assist you in making this crucial decision, we have compiled a summary of the most popular thrift store concepts in the table below.

Pick an audience

Similarly, when opening a thrift store, it's crucial to consider the audience you aim to serve. This will guide the type of merchandise you stock, the store layout, and even the location you choose for your shop.

For instance, if you're targeting college students, you might focus on affordable, trendy clothing and accessories. You'd likely find a location near a campus or in an area with a high concentration of student housing.

On the other hand, if you're aiming to attract vintage enthusiasts and collectors, your thrift store might carry a curated selection of retro clothing, rare finds, and antiques. You might choose a location in a trendy neighborhood known for its unique shops and boutiques.

Understanding your target audience is essential because it shapes every aspect of your thrift store, from the inventory you select to the way you design your space and even your marketing strategies. It's about creating an experience that resonates with your customers' preferences and needs.

Moreover, knowing your audience enables you to communicate with them more effectively. If you're aware of who your customers are, you can tailor your advertising and promotions to reach them where they're most likely to engage with your brand.

In our business plan for a thrift store , we've identified various customer segments that could be pertinent to your venture.

To help you envision the potential audiences for your thrift store, we've compiled a summary table with examples of different customer segments below.

Get familiar with the industry trends

When launching a thrift store, it's crucial to stay informed about the emerging trends in the secondhand retail market and integrate them into your business model.

Trends indicate the current interests and preferences of consumers. By aligning with these trends, you can draw in a diverse clientele who are excited to explore the latest shopping experiences. Additionally, offering trending items or services can differentiate your thrift store from competitors who may focus solely on traditional secondhand goods.

Actually, we update our business plan for a thrift store biannually to include the newest emerging trends. We believe this will assist you in creating a more prosperous thrift store.

For instance, there's a rising interest in sustainable fashion, which includes upcycled clothing and accessories. Thrift stores that provide such eco-friendly options appeal to environmentally conscious shoppers.

Moreover, we've observed that consumers are increasingly looking for unique vintage finds, from retro clothing to antique home decor, which can give them a sense of individuality.

As sustainability becomes a more pressing concern, thrift stores that promote zero-waste practices, such as offering reusable shopping bags or hosting clothing swap events, are gaining popularity.

In the digital age, having an online presence where customers can browse and purchase items can significantly expand your thrift store's reach.

We have compiled more trends in the table below.

However, there are also some declining trends.

As consumers become more environmentally and socially aware, there's a decrease in interest in fast fashion items that contribute to environmental degradation and unethical labor practices.

Additionally, while generic secondhand goods will always have their place, items that lack character or uniqueness are becoming less desirable compared to distinctive, high-quality finds.

Finally, with the increasing importance of sustainability, the use of non-recyclable materials and a lack of transparency in sourcing and operations are being met with criticism.

Choosing the right location

Selecting the right location for your thrift store is essential for its success, and it requires careful consideration of several factors.

Begin by analyzing the local demographics. Understanding the community's characteristics can help you stock items that resonate with their tastes and budget. For instance, if the area has a high population of college students, you might focus on affordable, trendy clothing and dorm essentials. In contrast, if the neighborhood is known for its artistic vibe, vintage clothing and unique home goods might be more appropriate.

Visibility and accessibility are key. A location that's easily noticeable and reachable by pedestrians, drivers, or public transportation users can boost the number of impromptu shoppers. Look for areas with high foot traffic, such as near popular eateries, other retail stores, or community centers.

Accessibility also includes having ample parking or being within a comfortable walking distance from residential areas or office buildings.

Competition can be beneficial. While you don't want to be overshadowed by a large second-hand chain store, being in a district with other thrift stores can create a "thrift row" that attracts dedicated thrifters looking for a variety of options.

Identifying a niche or a gap in the local market can provide you with a competitive advantage. Being close to non-competing businesses that draw a similar clientele, like antique shops or artisan markets, can also be advantageous.

Rent costs are a crucial factor. Prime locations with heavy traffic often have higher rents, so it's vital to weigh the potential for increased foot traffic against the lease expenses. Make sure the rent is manageable based on your projected revenue. Sometimes, a spot with less visibility but significantly lower rent may yield a better profit margin.

Negotiating favorable lease terms can have a significant impact on your thrift store's financial well-being. This could include securing a lease with renewal options, negotiating limits on rent hikes, or obtaining a period of reduced rent initially to assist with startup costs.

Consider the growth potential of the neighborhood.

Is the area developing, with new housing or commercial projects that could bring more patrons your way? The option to expand your store in the future without relocating can be a great advantage as your business flourishes.

Parking and public transportation access are sometimes underestimated but can greatly affect customer convenience. A location that's easy for shoppers to reach is more likely to attract steady business.

Employing market research and demographic analysis tools can offer insights into the most suitable areas to open your thrift store. These tools can help pinpoint neighborhoods with the ideal customer base for your inventory.

The choice between a city center and a residential area hinges on your target audience and business model. City centers provide high foot traffic but come with steeper rents and increased competition. Residential areas might offer a loyal customer base with potentially lower rent but might require more marketing to become a known shopping destination.

Being situated near cultural or community centers, schools, or business districts can ensure a regular stream of potential customers, especially if your thrift store offers items that cater to the everyday needs of these groups.

Understanding local zoning laws, business regulations, and other legal requirements is vital to confirm that your chosen location is suitable for a thrift store. Ensuring compliance with these regulations from the outset can prevent costly and time-consuming issues later on.

Finally, assessing the long-term viability of a location is critical. Look into future developments in the area that could impact your business, either positively by drawing in more traffic or negatively by increasing competition or rental costs.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a thrift store can vary significantly, ranging from as low as $5,000 to $30,000 for a modest operation to $40,000 to $100,000 for a larger store in a more competitive market .

If you want to know the exact budget you will need for your own thrift store and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to thrift stores . This excel file is designed to be very user-friendly and will provide you with an instant and comprehensive analysis of your future project.

The budget can vary the most due to the location of the thrift store. High-traffic areas in urban centers tend to have higher rental costs, which can significantly impact startup expenses.

The size of the thrift store also plays a crucial role in determining the initial investment. A larger space not only increases rent but also requires more inventory, staff, and resources, leading to higher operational costs.

The quality and source of inventory is another significant factor. Sourcing high-quality, in-demand items can be more expensive but can attract more customers and potentially bring higher sales. Conversely, starting with a smaller, carefully curated selection of goods can reduce initial inventory costs.

If the available capital is limited, it's still possible to open a thrift store, but careful planning and prioritization are essential. The very minimum budget could be around $5,000 to $15,000 if you choose a low-cost location, minimize the size of your operation, source inventory from donations or low-cost suppliers, and manage much of the work yourself. This approach requires a hands-on strategy, focusing on a niche market to reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a thrift store include initial inventory acquisition, store setup, licensing and permits, insurance, marketing and advertising, technology and software, staff training, and a reserve for unexpected expenses.

Initial inventory for a thrift store can include a wide range of second-hand goods such as clothing, furniture, and household items. The cost for acquiring these items can vary greatly, but on average, you might spend between $5,000 to $20,000. This will depend on the size of your store and the quality and quantity of the items you wish to stock.

Store setup costs include renovations, fixtures, and signage. Depending on the condition of the premises and the extent of the renovations required, these costs can range from $10,000 to $50,000. This includes fitting rooms, shelving, and cash wrap stations.

Licenses and permits are necessary for legal operation and can include a business license, resale permits, and possibly a sign permit for your storefront. These costs can vary by location but typically range from a few hundred to a few thousand dollars.

Insurance is essential to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, and workers' compensation if you have employees. Annual premiums can range from $1,000 to $5,000 or more, depending on your coverage levels and store size.

Marketing and advertising are crucial for attracting customers to a new thrift store. Initially, you might spend between $500 to $3,000 on marketing efforts, which could include social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for point-of-sale systems, inventory management, and accounting software is important for the smooth operation of your thrift store. Costs can range from $500 to $5,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

Staff training is important to ensure a high level of customer service and efficient operation. Setting aside $300 to $1,500 for initial training and ongoing professional development can help maintain a well-run store. This also includes any costs for obtaining or maintaining personal certifications.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen repairs, slow business periods, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for thrift stores .

Business plan and financing

Make a solid business plan.

You may have heard this before, but it bears repeating: crafting a business plan when opening a thrift store is essential.

Why is this the case? A business plan acts as a strategic guide for your venture, detailing your objectives, methods for achieving them, and potential obstacles. A thorough business plan is not only a tool for keeping you on track and organized but also crucial when seeking financial backing from investors or banks, as it shows the feasibility and prospective success of your thrift store.

The core elements of a thrift store business plan include market research, financial projections, and operational strategies, among other things. Market research is vital to understand your target demographic, their shopping habits, and the competitive environment. This involves examining trends in the secondhand retail market, pinpointing your primary competitors, and determining a unique selling point that distinguishes your thrift store from others.

Financial planning is another fundamental component. This section should detail your anticipated income, cost of goods (including purchase prices for used items and inventory management), labor expenses, and other operational costs. It should also feature forecasts for profit and loss, cash flow, and a break-even analysis. Financial planning offers a transparent view of your thrift store's fiscal health and potential for growth, which you can find in our financial plan for a thrift store .

While a thrift store business plan shares commonalities with other business plans, certain aspects will be emphasized differently.

For instance, a thrift store might focus more on inventory acquisition strategies (sourcing quality secondhand items), community engagement (building relationships with donors and customers), and location analysis (considering areas with the right demographic for secondhand goods). Additionally, you should demonstrate an understanding of any regulations specific to selling used items.

To create an effective thrift store business plan, it's crucial to conduct in-depth research and maintain realistic financial projections and expectations. Engage with potential customers to gauge their interests, preferences, and price sensitivity for secondhand goods. Also, think about how you can scale your business model and potentially broaden or adjust your inventory in the future.

For a thrift store, special attention should be given to developing a strong brand identity and marketing strategy that appeals to your target audience. Emphasizing the sustainability aspect of buying secondhand, the uniqueness of your inventory, or the community benefits of supporting a thrift store can set you apart in a competitive market.

Success depends not only on the quality and appeal of your inventory but also on meticulous planning, understanding your market, managing finances prudently, and implementing your operational strategy with precision.

Remember, a business plan is not a static document but a dynamic one that should be revisited and refined as your thrift store expands and adapts.

Get financed

Starting a thrift store but don't have the capital to do it on your own? Don't fret, there are multiple financing avenues available to you.

Financing for your thrift store can come from various sources, including raising capital from investors, securing loans from banks or financial institutions, and applying for grants or subsidies.

Each financing method comes with its own set of benefits and things to consider.

Raising capital means finding investors who will provide funds in exchange for a share in your thrift store. This is advantageous because it doesn't require repayment like a traditional loan does.

However, it also means parting with some equity in your business and possibly a degree of control over business decisions.

For a thrift store, this might be a good option if you're looking to scale up quickly or need a substantial amount of money upfront for a large inventory or a well-located storefront. To attract investors, you'll need a robust business plan that shows growth potential, profitability, and a solid grasp of the thrift store market.

Another option is borrowing money, often through a business loan.

This path allows you to maintain complete ownership of your thrift store but requires you to pay back the borrowed amount with interest. Loans can be used for a variety of purposes, such as stocking up on inventory, covering initial operating costs, or financing store improvements.

Banks usually ask for a down payment or collateral; this can vary but often falls between 15% to 25% of the loan amount. It's crucial to consider the proportion of your total budget that comes from loans to avoid overwhelming your thrift store with debt. Ideally, your store's projected cash flow should cover loan repayments while still allowing for operational costs and growth.

Grants or subsidies are another financing source, though they are less common.

These funds are typically provided by government agencies or non-profit organizations to support small businesses, particularly in areas or industries that are underserved. Grants do not need to be repaid, but they are competitive and usually come with specific requirements.

For a thrift store, grants may not be the most reliable primary source of funding but can be an excellent way to supplement other financing methods for particular projects or needs.

To effectively secure financing from lenders or investors for your thrift store, it's essential to prove the viability and profitability of your business concept.

This means creating a comprehensive business plan that includes market analysis, a clear definition of your target market, detailed financial projections, and an effective marketing strategy. Your business plan should emphasize what makes your thrift store unique, such as special product collections, a strong brand identity, or a strategic location.

Lenders and investors will assess your thrift store based on several factors, including your creditworthiness, business experience, available collateral, and the strength of your business plan.

They will examine the financial projections of your thrift store to determine if you can generate sufficient revenue to cover operating costs, repay debts, and turn a profit. Showing a deep understanding of the thrift store market, including trends, customer preferences, and competitive analysis, will also strengthen your case.

Below is a summary table of the various financing options mentioned for opening a thrift store, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Opening and operating a thrift store involves its own set of unique considerations and compliance with various regulations and requirements to ensure the safety of your customers and the legitimacy of your business operations.

The specific permits, licenses, and insurance policies you'll need can differ based on your location, but there are commonalities in many jurisdictions.

First, you'll need to secure the necessary business permits and licenses.

This often includes obtaining a general business license from your city or county, and a sales tax permit if your state requires the collection of sales tax on the goods you sell. Depending on the nature of your thrift store, if you plan to sell specialty items such as antiques or refurbished electronics, you may need additional permits related to these items.

you should consult with your local government to understand the specific requirements for your area.

While thrift stores do not typically fall under the same stringent health department regulations as food service establishments, they must still adhere to certain safety and sanitation standards. This includes ensuring that all items for sale are clean and safe for use, and that the store environment is free from hazards.

Inspections may not be as frequent as in food-related businesses, but local consumer protection agencies might conduct them to ensure that products sold are not hazardous or counterfeit. Compliance with these regulations is important to avoid penalties or legal issues.

Insurance is another essential consideration for thrift store owners. General liability insurance is a must to protect against accidents or injuries that may occur on your premises. Property insurance is also crucial to safeguard your inventory and store fixtures against damage or theft.

If you have employees, you will need workers' compensation insurance to cover any work-related injuries or illnesses. Additionally, product liability insurance could be beneficial, especially if you refurbish or alter items before sale, as it can protect your business in the event that a product you sell causes harm to a customer.

Lastly, if your thrift store operates as a non-profit or supports charitable causes, there may be additional reporting requirements or exemptions for which you can apply. Always stay informed about the legal and financial obligations specific to your business structure and mission.

Business Structure

The three common structures for opening a thrift store are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your thrift store.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your thrift store.

We’ll make it easier for you, here is a summary table.

Getting started to open a thrift store

Offer development, design and lay out.

Designing and laying out your thrift store for operational efficiency and an enhanced customer experience requires thoughtful organization and creative display techniques.

Let's explore how you can accomplish this, focusing on customer navigation, balancing inventory management with budget, and ensuring safety and accessibility.

Firstly, mapping out customer navigation is crucial.

Your thrift store's design should lead customers naturally from the entrance to various sections, such as clothing, books, electronics, and furniture. This flow should be logical, minimizing congestion and ensuring a smooth journey from one section to the next. Place your most intriguing and unique items near the entrance to immediately draw customers' interest.

This setup not only highlights your standout pieces but also encourages customers to explore further and discover additional treasures as they move through the store.

In terms of design to facilitate this navigation, consider the store's openness and ease of movement.

Spacious aisles, clear signage, and a coherent organization of the space promote comfortable browsing and accessibility. The checkout area should be clearly visible and separate from the main shopping areas to prevent bottlenecks. If your thrift store includes a fitting room, ensure it's conveniently located and provides privacy and comfort for those trying on clothes.

Balancing the need for quality inventory management with budget constraints is another challenge.

Start by focusing on acquiring a diverse and appealing inventory that caters to your target market. Invest in sturdy shelving and hanging solutions that can withstand the weight and variety of second-hand items. For other fixtures, consider sourcing from store closings or auctions to save money without significantly compromising the shopping experience.

Additionally, plan for display units that offer flexibility and can be easily rearranged, like modular shelving or movable racks, to keep the store layout fresh and adaptable to changing inventory.

Safety and accessibility in the thrift store layout are essential. Your design must include clear pathways free of obstacles to prevent tripping hazards. For example, separate areas for different types of merchandise ensure that each section is organized and easy to navigate. Install adequate lighting throughout the store, especially in areas where customers examine products closely, to enhance visibility and safety.

Specific protocols for merchandise handling, storage, and display are crucial for maintaining a safe and welcoming environment. Implement a system that ensures all items are clean, in good repair, and presented in an appealing manner, with delicate or high-value items kept in secure display cases or areas.

Train your staff thoroughly in safety practices, emphasizing the importance of maintaining clear aisles, handling items carefully, and being vigilant about the overall store condition.

Regularly review and update these protocols to comply with local safety regulations and best practices, ensuring a pleasant and secure shopping experience for all customers.

Craft your offer

Your inventory and your unique finds will be the reason why your thrift store is successful (or why it is failing).

To start, identify the preferences and needs of your target market through direct engagement, such as surveys and social media interactions, and indirect research, like observing trends in your area and reviewing what successful competitors are doing.

Once you have a clear picture of your target market's preferences, you can begin to curate a selection of items that not only appeals to their tastes but also stands out.

Incorporating local and community-sourced items into your thrift store inventory is a fantastic way to enhance appeal and sustainability.

This approach not only supports local community members and reduces your carbon footprint but also ensures that your offerings are unique and often have a story behind them. Make connections with local donors and estate sales to understand what items will be available. This knowledge allows you to plan your inventory, offering special items that can attract customers looking for unique, vintage, or upcycled finds. Curated collections also create anticipation among your customers, as they look forward to the arrival of new and interesting items.

To ensure your thrift store items stand out in a competitive market, focus on uniqueness and quality.

This can be achieved by offering rare collectibles, vintage fashion, or items with a retro appeal that are hard to find elsewhere. Telling the story behind your products, such as the history of a vintage dress or the craftsmanship of a piece of furniture, can also add a unique appeal.

Ensuring consistency and quality in your thrift store involves establishing rigorous standards for the items you accept.

This can include detailed inspections for wear and tear, authenticity checks for collectibles, and cleanliness standards. Consistency is key to building trust with your customers, as they will know exactly what to expect each time they visit your thrift store. Invest in quality control and don’t shy away from passing on items that don't meet your standards.

Also, utilizing customer feedback is essential for continuous improvement and refinement of your thrift store inventory. Create channels for feedback, such as comment cards, online surveys, and social media engagement, to understand what your customers love and where there might be room for improvement.

Be open to constructive criticism and willing to make changes based on customer input. This not only helps in refining your inventory but also shows your customers that you value their opinions, fostering loyalty and repeat business.

Determinate the right pricing

When opening a thrift store, it's crucial to establish a pricing strategy that balances profitability with customer appeal. Here's a methodical approach to setting your prices.

Firstly, you must understand your costs, which include acquisition of inventory, labor, store overhead, and any other expenses related to operating your thrift store.

This will ensure your prices not only cover these costs but also contribute to your store's profitability.

Next, research your competition and the general market to gauge the going rates for similar second-hand items. While you don't need to strictly adhere to these prices, they provide a useful reference point.

Knowing your target market's price sensitivity and shopping habits is key. Gather insights through customer interactions, surveys, or by experimenting with price adjustments and observing the effect on sales. This will help you find the sweet spot where customers feel they're getting a good deal.

Psychological pricing strategies can be effective in a thrift store setting as well.

Charm pricing, such as $4.99 instead of $5, can make items seem more affordable. This tactic can be particularly useful for common thrift store finds like clothing or books.

However, you should apply this strategy thoughtfully to avoid cheapening the perceived value of your inventory.

The perceived value is also crucial in a thrift store.

Enhancing this perception can be achieved through the quality and uniqueness of your items, as well as the shopping experience you provide. For example, curating a selection of vintage pieces, offering excellent customer service, and creating an inviting store atmosphere can allow you to price items higher, as customers perceive greater value.

Seasonal pricing strategies can be leveraged to move specific inventory, such as winter coats or Halloween costumes, by adjusting prices according to seasonal demand.

Introducing new categories of items at a promotional price can draw in customers and generate interest. Once these items gain popularity, you can revise the pricing based on their performance and cost factors.

For online sales, consider the additional costs of shipping and handling. You might choose to incorporate these costs into item prices or charge them separately. Online-exclusive promotions can also incentivize customers to shop from your digital storefront.

Finally, the psychological impact of discounting items in a thrift store should be carefully managed. Discounts can be a powerful tool to increase turnover of stock, especially for items that have been in inventory for a while. However, frequent discounting can lead to a perception of low quality. Use discounts judiciously, perhaps for end-of-season clearances or special events, without setting a precedent for constant markdowns.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly hinder the success of your thrift store

Conversely, cultivating strong partnerships with suppliers ensures a consistent flow of quality second-hand goods for your store.

Engage in regular communication, ensure prompt payments, and show appreciation for their goods and services to build loyalty and dependability. Be clear about your expectations and requirements, and if possible, visit their storage facilities or donation centers. This will give you insight into their sourcing methods and any potential challenges, allowing for a more collaborative relationship.

Consider long-term agreements for high-demand items to lock in favorable prices and secure a steady supply. However, it's also wise to have a network of alternative suppliers to protect against potential shortages.

For managing inventory, techniques such as Last-In, First-Out (LIFO) can be beneficial in a thrift store setting. This method ensures that newer stock is sold first, which can be important for seasonal or trend-based items. Regularly review inventory levels to align purchases with customer demand, preventing overstocking and reducing the risk of unsold items. A just-in-time (JIT) inventory system might also be effective, where goods are acquired and put on sale in alignment with demand, though this requires accurate forecasting.

Technology can greatly enhance inventory management and reduce overstock in a thrift store.

Implementing an inventory management system that integrates with your point-of-sale (POS) system allows for real-time tracking of stock levels and sales data. This can help you better predict demand, streamline procurement, and identify trends that can guide merchandising and promotional efforts.

Moreover, digital tools can improve communication with suppliers, making it easier to adjust orders quickly and collaborate more efficiently.

Scaling thrift store operations involves challenges such as ensuring a diverse and appealing product selection, managing increased inventory, and maintaining quality control. Overcome these challenges by setting standards for product acceptance, training staff effectively, and investing in systems that can enhance operational efficiency without compromising the quality of your offerings.

As you scale, you'll need more merchandise, so negotiate with suppliers for better rates on larger volumes of goods without sacrificing the quality of the items you accept. Quality control becomes increasingly important as your inventory grows, necessitating regular reviews of stock and more frequent quality assessments.

Implementing effective cost control measures involves a thorough examination of sourcing and managing your thrift store's inventory. Regularly reassess and negotiate with suppliers to ensure you're obtaining the best value without compromising the desirability of your stock.

Also, consider alternative sourcing channels that may offer cost savings or unique items that can attract customers. Use technology to monitor and analyze costs, turnover, and inventory levels to pinpoint opportunities for improvement. Minimizing excess stock not only reduces costs but also supports sustainable practices, which resonates with eco-conscious shoppers.

Hire the right people

When opening a thrift store, you should consider your staffing needs carefully, especially if you're working with a limited budget.

At the core, your thrift store will require a team that can handle sales, merchandising, and operations.

For sales, you'll need reliable sales associates who can engage with customers, manage point-of-sale transactions, and maintain a welcoming store environment. A store manager or owner-operator who can oversee the store's daily operations, manage staff, and handle administrative duties, such as inventory management, pricing, and ensuring compliance with any relevant regulations, is also essential.

Merchandising is crucial in a thrift store to ensure that products are displayed attractively and that the store layout maximizes sales. A merchandiser or visual designer can be hired to set up initial displays and train staff on maintaining them.

Some roles, such as a dedicated social media manager, e-commerce specialist, or additional administrative staff, may not be necessary at the outset.

These positions can be filled as your business grows and the need for them becomes more apparent. Outsourcing can be a strategic approach for roles like accounting, marketing, and even online sales management, allowing you to focus on your core competencies while leveraging external expertise.

When hiring for key positions, prioritize candidates with a mix of retail experience, organizational skills, and a passion for thrift and sustainable fashion.

For sales associates, look for strong customer service skills and the ability to work efficiently in a dynamic retail environment. For managerial roles, seek candidates with experience in retail management, a strong understanding of business operations, and leadership qualities.

To assess the fit of potential hires for your thrift store's unique culture and demands, consider incorporating practical assessments into your hiring process, such as role-playing customer service scenarios or tasks related to merchandising and organization.

Look for candidates who demonstrate a genuine passion for thrift and sustainability, as well as the ability to adapt to the fast-paced nature of the retail industry.

Finding candidates with the right background and passion for thrift retail can be challenging.

Utilize online job boards, social media platforms, and local community boards to reach potential candidates. Networking within local retail communities and attending job fairs can also be effective strategies. Consider offering internships or part-time positions to tap into emerging talent from retail management programs.

Here is a summary table of the different job positions for your thrift store, and the average gross salary in USD.

Running the operations of your thrift store

Daily operations.

Running a thrift store can be a rewarding venture, but it requires careful management to ensure smooth daily operations. By adopting the right strategies, you can keep your thrift store running efficiently and effectively.

Firstly, a Point of Sale (POS) system tailored for thrift stores can be a game-changer. Look for a POS that combines sales, inventory management, and customer relationship management. This will enable you to monitor sales as they happen, keep track of inventory accurately, and maintain a record of your customers' shopping habits and preferences.

Many POS systems now include features for online sales, which can help you reach a broader audience and offer convenience for shoppers who prefer to browse and purchase from the comfort of their homes.

Effective inventory management is crucial for a thrift store. You'll need a system that can handle a constantly changing array of unique items. The right software should allow you to categorize items and set up alerts for when certain categories are running low. It should also provide insights into which items sell quickly, helping you make smarter purchasing and pricing decisions.

Some systems may also support consignment tracking, which is vital if you sell items on behalf of others and need to keep track of payouts and inventory ownership.

Building strong relationships with your suppliers, which may include donors, consignors, or wholesale vendors, is essential. Establish clear communication about what items you accept, how you price items, and when payments will be made. Good relationships can lead to a more reliable supply of quality items. It's also beneficial to have a network of suppliers to ensure a diverse and appealing inventory.

Creating a positive work environment is key to keeping your team motivated. Offer regular training, set clear goals, and provide constructive feedback. Recognize and reward employees' efforts to maintain high morale. Fair and considerate scheduling is also important for supporting your employees' work-life balance.

Ensuring a great shopping experience in your thrift store involves maintaining a clean, well-organized space with clear signage and a layout that's easy to browse. Train your staff to be friendly and helpful, and encourage them to engage with regular customers to create a personal touch.

Good customer service policies for a thrift store might include a clear return policy, a satisfaction guarantee, and a system for collecting and responding to customer feedback.

Encourage customers to leave feedback in-store, on your website, or through social media. Address feedback promptly and constructively, showing that you value their opinions and are dedicated to enhancing their shopping experience.

When dealing with customer complaints, listen carefully before responding. Apologize if necessary and offer a solution, such as a refund, store credit, or a discount on a future purchase. Use negative feedback as a chance to improve your store's operations and customer service. Often, turning a negative experience into a positive one can earn you a loyal customer.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a thrift store is crucial for its success.

We have an in-depth article on the profitability of thrift stores that you might find useful. Below, we'll cover some key points.

One important metric for thrift stores is the average basket size, which is the average amount a customer spends per visit.

The average basket size for a thrift store can vary widely depending on factors such as location, inventory quality, and pricing strategy. For a boutique thrift store with curated, high-quality items, the basket size might be larger, perhaps between $20 and $40 .

Conversely, a community thrift store that offers a wide range of items at lower prices might see a higher volume of sales with a smaller average basket size, potentially $5 to $20 .

Specialty thrift stores, which focus on specific items like vintage clothing or antiques, might also have higher basket sizes due to the unique nature of their inventory. We could estimate an average basket size of $15 to $50 for these stores.

When it comes to revenue, thrift stores can have a broad range. Urban thrift stores in high-traffic areas might see monthly revenues from $10,000 to over $50,000 , leading to annual revenues between $120,000 and $600,000 .

Rural thrift stores, with a smaller customer base, might expect more modest revenues, with annual figures often between $50,000 and $300,000 .

Newly opened thrift stores may initially have lower revenues as they work to establish a customer base and local reputation. Monthly revenues under $8,000 are common in the early stages.

Established thrift stores with a loyal customer following and strong community presence can achieve higher and more stable revenues over time.

Specialty thrift stores' revenues can be quite variable, heavily dependent on the rarity and demand for their niche items.

Thrift stores don't just earn money from selling second-hand goods. They have a variety of revenue streams available to them.

If you're looking for inspiration, here's a table that outlines many different ways a thrift store can generate income.

Understand your margins

As with any retail business, understanding the difference between revenue and profit is crucial for thrift stores. you should consider both expenses and margins to gauge the true financial success of your thrift store.

Let's delve into the gross and net margins, which are key indicators of a thrift store's profitability.

To calculate your own margins and get a precise figure for your potential profit, you can adjust the assumptions in our financial model designed for thrift stores .

The typical range of gross margins for thrift stores can vary, often falling between 30% to 50%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which includes the purchase price of the goods and any direct costs related to acquiring the inventory, from the revenue generated from the sales of thrift store items. This figure is then divided by the revenue and multiplied by 100 to get a percentage.

Net margins, however, account for not just the COGS but also all other expenses a thrift store incurs, such as rent, utilities, administrative expenses, marketing, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a thrift store's profitability and are typically lower than gross margins, with averages often ranging from 10% to 15% across the industry, reflecting the tighter profitability after all costs are considered.

Different types of thrift stores—boutique, chain, and specialty—can have varying profit margins due to differences in their business models, scale of operations, and target markets. Here is a table to illustrate these differences.

Margins in thrift stores are influenced by factors such as product sourcing, pricing strategy, and scale of operations.

A diverse inventory can attract a wide customer base but may increase complexity and costs. Pricing strategy is critical; items must be priced to move while still covering costs and generating profit. Scale of operations can affect cost efficiencies, with larger stores often benefiting from lower per-unit costs.

Ongoing expenses that impact thrift store margins include inventory acquisition costs, labor, rent, and utilities. Acquisition costs can vary based on the source and quality of goods. Labor is another significant expense, especially for stores that rely on staff for sorting and pricing items. Rent can vary widely by location, and utilities can be a substantial cost, particularly for stores with large spaces.

Thrift stores focusing on niche markets like vintage or designer items may see different margin dynamics compared to those with a broader inventory range.

While niche stores can charge higher prices, they also face higher acquisition costs and potentially limited market size, impacting the overall margin.

External factors such as economic conditions, seasonal fluctuations, and consumer trends also play a crucial role in thrift store margins. Economic downturns can increase consumer interest in second-hand goods, while seasonal changes can influence the types of items in demand. Keeping up with consumer trends and adapting inventory accordingly can help manage these fluctuations.

The challenge of maintaining healthy margins in the face of varying inventory costs and labor expenses is significant. Thrift stores can mitigate these challenges through efficient cost management, strategic pricing, optimizing operations for space efficiency, and investing in community engagement for inventory donations.

Regularly tracking and analyzing financial performance (good news - you can do all of that with our financial model tailored to thrift stores ), including gross and net margins, is essential for ensuring the financial health and sustainability of a thrift store.

Implement a strong marketing strategy

Marketing doesn't have to be an intricate labyrinth of strategies and theories. We understand that you'll be immersed in the day-to-day operations of your thrift store and might not have ample time for complex promotional activities. That's why we've crafted a straightforward and impactful marketing strategy, which you can find detailed in our business plan for a thrift store .

Building a brand for your thrift store is not just beneficial; it's essential.

Your brand is the beacon that draws customers in and keeps them coming back. It's more than just a catchy name or a vintage-themed logo; it's the experience you offer and the values you represent, such as sustainability, affordability, or community support. A strong brand will help your thrift store shine in a sea of retail options and cultivate a dedicated following.

Begin your marketing plan by pinpointing your target audience. Who are the thrifters you aim to attract? What are their priorities? Do they seek unique vintage finds, budget-friendly fashion, eco-friendly shopping options, or perhaps a mix of these? Knowing your audience is key to tailoring your brand and promotional efforts.

When it comes to promotion, social media and online marketing are invaluable for thrift stores. Platforms like Instagram, Facebook, and Pinterest are ideal for displaying your eclectic inventory with vibrant photos and engaging stories.

Offer a glimpse into the treasure-hunting aspect of your store, which adds charm and showcases the uniqueness of your items.

Encouraging customer reviews and sharing success stories of fabulous finds can foster trust and pique the interest of potential shoppers. Creating content around styling tips or the history of certain vintage pieces can also captivate your audience, positioning your thrift store as a hub of fashion and nostalgia.

Content strategies that resonate with thrift store audiences include featuring standout items, sharing customer 'thrift hauls', and promoting sustainable shopping practices. Collaborations with local influencers or fashion bloggers who align with your brand can also amplify your reach.

However, not every tactic will suit your thrift store. For instance, if your clientele is primarily local, investing in widespread online ads may not yield the best return. Similarly, if your store focuses on vintage clothing, emphasizing modern fast fashion trends would be off-brand.

On a modest budget, there are clever methods to attract new patrons.

First, consider setting up a booth at local flea markets or community events to sell select items and increase brand visibility.

Offering special discounts or themed sales events can create buzz and drive traffic to your store.

Collaborating with local artists or upcycling workshops can introduce your thrift store to new circles.

Implementing a loyalty program can motivate repeat visits. Simple stamp cards or a points-based system can work wonders.

And never underestimate the power of word-of-mouth. Encourage your happy shoppers to share their experiences by providing incentives for referrals or social media shares.

Grow and expand

We want you to thrive with your thrift store. We trust that the guidance provided here will support you in reaching that goal.

Imagine you're already running a successful thrift store with solid margins and a steady cash flow. Now is the time to contemplate how to scale and expand your enterprise.

There's always potential for greater success, and we're here to show you the path to achieve it.

Also, please note that there is a 3-year development plan tailored for a thrift store in our business plan template .

Successful thrift store owners often possess qualities like resilience, adaptability, a keen eye for value, and the ability to connect with and understand their clientele. These traits are essential as they steer the growth of their business.

Before expanding a thrift store's inventory, consider the existing market demand, the compatibility of new items with your current stock, and how these additions will impact your operations.

Market research is critical in this decision-making process. By examining customer preferences, current retail trends, and the performance of similar items in the market, you can make informed choices that align with your thrift store's capabilities and customer expectations.

Evaluating the success of current operations involves analyzing sales trends, customer feedback, and operational efficiency. If your thrift store consistently hits or surpasses sales targets, receives positive feedback, and operates efficiently, it might be time to think about expansion.

Opening additional locations should be grounded in concrete evidence of demand, a deep understanding of the target market, and the financial robustness of your current operation.

Franchising is a way to expand with reduced capital risk, tapping into the entrepreneurial spirit of franchisees.

However, it demands a strong brand, proven operational systems, and the capacity to support franchisees. Opening owned branches gives more control over operations and customer experience but requires more capital and hands-on management. Each model has its pros and cons, and the choice depends on your business objectives, resources, and preferred growth strategy.

Digital channels, including online marketplaces and social media platforms, can significantly increase a thrift store's visibility and sales. Establishing an online presence allows you to reach customers beyond your immediate area, adapting to the growing demand for online shopping.

This strategy necessitates an understanding of digital marketing, logistics for shipping, and maintaining product quality during transit.

Branding is vital as it sets your thrift store apart in a competitive market. A strong, consistent brand identity across all locations and platforms can boost customer loyalty and attract new patrons. Enhance your brand by ensuring that every customer interaction reflects your thrift store's values, style, and quality.

Maintaining consistency across multiple locations is a challenge but crucial. Achieve this through comprehensive operational manuals, training programs, and quality control systems.

Regular visits and audits, along with cultivating a strong, shared culture, help ensure each location maintains the standards that made your original store successful.

Financial metrics and business benchmarks that indicate readiness for expansion include consistent profitability, robust cash flow, and meeting or exceeding sales forecasts over a considerable period.

Additionally, having a scalable business model and the operational capacity to support growth is essential.

Partnerships with local businesses and participation in community events can introduce your thrift store to new customers and markets. These opportunities allow for creative collaboration, community engagement, and brand visibility, contributing to your thrift store's growth.

Scaling inventory to meet increased demand involves logistical considerations such as storage solutions, efficient inventory management, and possibly expanding your physical space. Ensuring that your supply chain can handle the increased volume without compromising quality is key.

Finally, it's crucial that your expansion efforts remain true to your thrift store's core values and long-term objectives. Growth should not compromise the essence of what made your thrift store successful in the first place.

Regularly revisiting your business plan and values can help ensure that your expansion strategies are in line with your vision and mission, preserving the heart of your thrift store as it grows.

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Thrift Store Business Plan Template [Updated 2024]

Thrift Store Business Plan Template

If you want to start a Thrift Store or expand your current Thrift Shop, you need a business plan.

The following business plan template gives thrift store owners the key elements to include in a winning thrift store business plan. It can be used to write a plan for a consignment thrift store, vintage thrift store or goodwill thrift store.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Example Business Plan For Thrift Stores

Below are links to each of the key sections of a sample business plan for a successful thrift shop.

I. Executive Summary – The Executive Summary provides an overview of your business opportunity and summarizes the business plan.

II. Company Overview – The company analysis includes information about your business concept, products and legal structure.

III. Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the thrift store industry.

IV. Customer Analysis – The customer analysis provides an overview of your target market.

V. Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.

VI. Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and search engine optimization plan.

VII. Operations Plan – The Operations Plan includes information on your company’s day to day operations and processes.

VIII. Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.

IX. Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.

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Thrift Store Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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How to Start a Thrift Store in 14 Steps (In-Depth Guide)

Updated:   March 27, 2024

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The secondhand clothing market reached over $71 billion globally in 2022, with a compound annual growth rate of 14.8% from 2022 to 2032 according to this report. With growth significantly outpacing traditional retail and increasing consumer interest sustainably, now is an ideal time to launch a thrift store.

This guide will walk you through how to start a thrift store. Topics include market research, sourcing materials, marketing, implementing payment and accounting systems, and developing a customer service strategy. Following this framework can set up any aspiring entrepreneur for success in the popular and rapidly expanding reuse market.

1. Conduct Thrift Market Research

Market research is an important part of starting a thrift store business. Research offers insight into building a business plan to develop a successful thrift store. Learn about your target market, trends in thrift store products and services, and local market saturation.

Some details you’ll learn through market research for your own thrift store include:

• Growth in the market is attributed to increasing consumer awareness of fashion sustainability and rising fast fashion prices that make buying secondhand more appealing.
• The growth of peer-to-peer resale through apps and social commerce also removes friction from secondhand transactions and shifts views of used goods from stigma to savvy.
• Poshmark and ThredUp have over 150 million users combined, many of whom started reselling items from their closets.
• The ease of entry for individual sellers lowers barriers and expands product selection online.
• Brick-and-mortar thrift stores stand to benefit from heightened interest, increased donations, and shifting perceptions driven by the sharing economy.
• Consider which clothing items and pieces of inventory sell best (t-shirts, shoes , jackets, plus-size clothes , etc.). Sunglasses are also highly popular.
• With strong forecasted growth, demographic tailwinds, and low existing penetration in the total apparel market, the thrift industry has sizable potential.

Both physical thrift stores and digital resale face expanding open terrain. Strategically located stores, merchandise specialization, creative marketing, and community engagement will be key opportunities for those looking to capitalize on reuse.

2. Analyze the Competition

Competitive analysis helps new thrift shop owners develop a thorough thrift store business plan. Learn about pricing guides, top marketing avenues, and even the right business bank account to open.

When assessing the competitive landscape for a new thrift store, analyzing existing brick-and-mortar reuse retailers within a 15-20 mile radius is key. Pairing geographical data with income statistics and population density heatmaps from Esri reveals ideal site selection and white space opportunities.

Monitoring competitors’ social media follower counts, engagement levels, promotions, and events are also valuable for positioning. This sentiment and traffic analysis should include assessing reviews on Google, Facebook, and Yelp to surface potential gaps in donor relations or customer service to be improved upon.

Sites like SimilarWeb provide web traffic analytics for competitor e-commerce presences, while Google Trends yields search volume insights for benchmarking digital visibility. Customer data analytics platforms like Shopify readily integrate with POS systems to track purchasing habits and demographics for smarter inventory and marketing.

Ongoing competitive analysis combined with customer intelligence allows new thrift stores to strategically carve out their niche. Specializing in vintage fashion, luxury handbags, music memorabilia or funky decor establishes differentiation.

3. Costs to Start a Thrift Business

When launching a thrift store, initial investments vary widely based on size, location, and offerings.

Start-up Costs

Most stores can expect around $50,000-$150,000 in upfront costs, such as:

• Rent and build-out for a small 1,000-2,500 sq ft shop spans $2,500-$7,500 monthly, so securing at least 6 months of capital for this fixed cost is advised before signing a lease.
• Store layout and displays may require $15,000 or more depending on complexity, especially if creating changing rooms.

Other start-up costs include:

• Incorporation fees (~$800)
• Business license (~$50-$100)
• Accounting software (~$70+/mo)
• POS system (~$1,500 hardware, additional monthly fees)
• Inventory and tag management system (~$1,000, ~$50+/mo)
• Bulk barcode scanner (~$250)
• Office computer, printer, supplies (~$1,000)
• Base inventory/opening merchandise ($5,000-10,000)
• Theft protection systems ($2,000+)
• Website/online platform setup ($300)
• Initial marketing activities ($2,000+)

Ongoing Costs

Ongoing monthly expenses to operate typically fall around $15,000-25,000 depending on whether rent is already covered. These include:

• Rent + utilities ($2,500+)
• 2-4 part-time staff at ~$15/hour for 60 hours weekly ($3,600)
• Insurance (general liability + property ~ $150+) Software/tech subscriptions ($100)
• New inventory purchases ($2,000+)
• Supply/equipment replenishment ($500)
• Advertising ($500+)
• Accounting fees ($200+)
• Credit card processing fees (2-4% of revenue)
• Miscellaneous expenses ($500)
• Accounting services ($1,200+)
• Register maintenance/updates ($500+)
• Technology troubleshooting ($300+)
• Marketing campaigns ($3,000-5,000+)
• Interior maintenance for flooring/paint ($1,500+)
• Exterminator services ($300)
• Parking lot repair (variable)
• Seasonal storage space ($900+)

Launching an e-commerce site or selling through third-party platforms also incurs additional fees, such as $0.20 to list plus 10-20% of the final value for the item. Shipping/handling and payment processing add further marginal costs that impact overall net profit.

4. Form a Legal Business Entity

Every successful business starts by forming a legal business entity. Many thrift shops go with a limited liability company (LLC) structure. Let’s look at the four main options to choose from.

Limited Liability Company (LLC)

LLCs limit owners’ assets from business debts and judgments (LLC liability protection). For fledgling reuse retail with unpredictable liability risks from donated inventory or customer incidents, securing personal finances is prudent. This enables adapting to profitability levels year-over-year – beneficial for thrift’s variable margins.

Sole Proprietorship

Sole proprietorships offer quick, affordable formation and pass-through taxation like LLCs. However, the owner assumes full liability for debts and legal claims. Thrift operators regularly confront risks from fire hazards, injuries, or damaged goods, heightening exposure. Sole proprietors also have limited options for injecting capital from creditors or investors to scale.

Partnership

The partnership enables several thrift operators to jointly own stores in a cheaper, equitable fashion than corporations. However, all partners share in legal and financial risks without shielding personal assets. Messy buyouts or partner disputes can also trigger dissolution.

Corporation

Forming a corporation ultimately suits expanding chains with multiple investors and stores. The complex structure, taxes, regulations, and record-keeping pose overkill burdens and bills for bootstrapping owners. However, large thrift enterprises like Goodwill leverage corporations’ perpetual existence, fundraising versatility through share sales, and enhanced public profile.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) serves as a unique tax ID for any business entity, similar to how a Social Security Number identifies individuals. All thrift stores must obtain their own EIN even if operating as sole proprietors.

Applying takes only minutes online through the IRS website. Simply navigate to the EIN Assistant page and select the option indicating you are starting a new business, Apply for free EIN . To apply, you’ll need the primary owner’s Social Security Number, full business legal name, address, and an indicator if you have employees.

The online tool then runs verification questions about the business structure and purpose of the EIN. Once submitted, the IRS instantly issues the EIN. This also automatically registers your business with state and federal authorities for tax compliance. Registering early in the launch process ensures meeting all requisite business license stipulations before accepting sales.

Along with the EIN, thrift stores retailing tangible goods must also obtain state-level seller’s permits or sales tax ID certificates for charging, collecting, and remitting local sales taxes. For example, opening up shop in Los Angeles triggers both city and California taxes totaling 9.5%, requiring valid resale certificates on file.

Taking these foundational steps legitimizes the business across banking, supplier, and landlord relationships critical for nascent operations. The EIN and tax IDs professionalize conduct for customers while unlocking advantageous wholesale inventory sourcing.

6. Setup Your Accounting

Managing finances represents a critical backbone of any retail enterprise, particularly for pre-owned goods stores with tight margins. Carefully tracking sales, expenses and inventory flow is paramount.

Accounting Software

Using small business accounting software like QuickBooks maintains organized books across bank/credit card accounts, payroll, invoicing, and taxes in one integrated platform. The automation creates Rick efficiencies by syncing transactions rather than manual entry. This frees up bandwidth for merchandising and donor development.

Hire an Accountant

Most thrift shops benefit by partnering with a bookkeeping professional or certified public accountant. The estimated $150 monthly investment furnishes accurate reconciliation, financial reporting, and advisory on minimizing tax obligations legitimately. Even filing taxes properly for a retail LLC across sales, employment, payroll and business asset taxes generates hundreds in prep fees.

Open a Business Bank Account

Separating business finances from personal banking and credit remains imperative as well. Commingling records invite IRS scrutiny that assumes all activity stems from the business unless delineated. Business checking accounts demarcate working capital, helping track overhead and net profits accurately. Partners can also be granted access easily for transparency.

Apply for a Business Credit Card

Obtaining a dedicated business credit card also proves useful for rewards points on advertising, securing convenient credit during seasonal inventory buildups, and building a commercial credit history. Providers like American Express leverage industry spending data so offer higher limits – commonly over $25,000.

7. Obtain Licenses and Permits

Before welcoming any customers, thrift stores must register with state and local agencies to comply with business operation, health, and safety regulations. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At a minimum, used goods retail triggers standard zoning permits, particularly for strip mall locations also inhabited by restaurants with stricter property usage rules. Any site build-outs for display fixtures or back offices also necessitate construction authorizations and inspections once completed.

For any refurbishing or repair of electronics, appliances, or furniture on-site before resale, air quality control registration applies depending on inventory volume and chemical usage. Disputing restrictions only risks Five-figure non-compliance settlements from surprise environmental agency audits.

Similarly, improper storage or disposal protocols for unsold chemical or beauty products trigger EPA violations. Used goods stores also commonly attract nuisance fines for any noise, odor, or waste overflow bothering adjacent tenants if correct protocols aren’t instituted preemptively.

In jurisdictions with luxury resale activity like designer apparel or premium electronics, secondhand dealer regulatory filings ensure legitimate sourcing and sales conduct. Officials scrutinize purchases especially from individual proprietors, requiring careful recording of supplier details, inventory invoices, and sales receipts to satisfy product origins oversight.

8. Get Business Insurance

As with any customer-facing operations, securing adequate business insurance lays a crucial foundation for thrift stores to safeguard against unpredictable liabilities. Even the most meticulous risk prevention fails to eliminate accidents. Lacking proper coverage exposes personal assets and the company’s future to potentially company-ending drains.

Without insurance, severe property damage from burst pipes, storms, or electrical fires could saddle retailers with six-figure reconstruction costs and income loss exceeding profitable years’ earnings. Inventory loss alone often crosses $100k for some specialized shops.

Public accident incidents also frequently trigger plaintiff lawsuits well exceeding half a million dollars without proper liability limits. Even frivolous suits incur hefty legal bills to dismiss if lacking representation.

Obtaining adequate coverage begins by taking detailed equipment and merchandise inventories with precise valuations, as most business property policies are payout-limited. Gaining landlord acknowledgment of tenant improvement asset values also maximizes reimbursement eligibility should a covered loss occur.

Independent brokers like CoverWallet leverage insurer data to optimize recommendations balancing premium costs and risk coverage. Comparing personalized plan options accounting for used goods handling exposures assists cost-benefit evaluation given lean operating margins. Typical starting points encompass:

• General liability coverage from $1 million+ limits – from $50/month
• Professional liability to cover incidents caused by employees/contractors – from $40/month
• Umbrella coverage for higher claim value risks – from $150/month
• Workers Compensation (if adding staff) – from $100/month

Evaluating inclusions for cyber liability, commercial auto, and directors & officers liability should happen once establishing operations. However, securing core protections upfront enables stability and pivot capacity if risks emerge in an inherently fluid reuse environment.

9. Create an Office Space

Thrift stores benefit immensely from dedicating office areas to customer-free activities like bookkeeping, marketing administration, and inventory sorting. Office approaches scale from basic home setups to full commercial spaces with corresponding cost variability:

Home Offices

Launching thrift founders can bootstrap operations rent-free initially using existing residential spaces for cataloging donations and handling behind-the-scenes process flows ($0 besides utility increases). Storage closet build-outs even shelter bulk supplies. However, welcoming customer or donor traffic risks local zoning issues. Data protection also suffers without commercial-grade cybersecurity.

Coworking Offices

Once securing storefront leases, collaborating offsite at WeWork bridges professional office perks with financial flexibility from month-to-month terms ($200-$500 based on market rates). The creative community energy and networking also spark display inspiration and mentoring opportunities.

Retail Offices

Furnishing private employee-only areas within store premises promotes seamless cross-functional coordination once sales volume supports build-outs (10-15% of the retail zone). On-site offices enable centralized inventory oversight and rapid floor updates while protecting payroll confidentiality. However, securing permissions could demand longer lease terms or prohibitive construction allowances from skeptical landlords.

Commercial Offices

Mature operations with multiple locations eventually warrant dedicated commercial offices for executive strategy functions, buyer hubs for disparate outlets, and centralized e-commerce fulfillment workflows ($2-$4 per square foot monthly). The ample room for enterprise activities and professional environment poise companies for investments and controlled overhead expansion support.

10. Source Your Equipment

Fundamentally outfitting any brick-and-mortar thrift enterprise necessitates display fixtures, racks, cash registers, and point-of-sale (POS) systems for seamless operations. While new systems provide reliability assurances, buying quality refurbished or excess gear grants big savings:

New Equipment

Sourcing brand-new equipment ensures peak performance but strains startup budgets quickly. Consider cherry-picking certain sensitive electronics while furnishing the rest from used marketplaces. Leading wholesalers like Store Supply Warehouse offer tiered pricing on new retail essentials like racks and hangers based on bulk orders ideal for multi-location owners.

Used Equipment

Alternatively local liquidation auctions and secondhand small biz marketplaces like BizBuySell host reliable pre-owned fixtures often from regional store closures at 60-80% discounts. Facebook Marketplace also connects local buyer/seller pairings. Have an electrician thoroughly inspect any wiring before committing however to avoid safety issues.

Rented Equipment

Many equipment rental outlets now cater to extended multi-month leasing popular for capital-conscious entrepreneurs ($100-$300 monthly). This allows testing layout viability before large investments using top gear. Flexible return policies also support reconfiguration freedom responsive to initial customer feedback.

Leased Equipment

Leasing proves costlier than renting but offers fixed monthly rates over 3-5 years before $1 buyout options. This helps stabilize overhead for reliable financial planning while enabling the latest equipment upgrades. However strict cancellation penalties apply so base terms on realistic growth projections and location commitment levels.

11. Establish Your Brand Assets

Cultivating a distinct brand identity cements repeating loyalty in an increasingly crowded reuse retail sector. Beyond conveying the unique value proposition, memorable branding signals local community goodwill, sustainability principles, and shopping inspiration encapsulated in in-store aesthetics.

Getting a Business Phone Number

Acquiring a unique local phone number through providers like RingCentral furnishes reliable customer support contact and branding reception ($30+ monthly). Sophisticated call routing to store devices enables personal assistance responsiveness while projecting competence to local shoppers.

Creating a Logo and Brand Assets

A custom, creative logo crystallizes indelible first impressions across channels. Collaborative design marketplaces like Looka offer fast genre-appropriate emblem creation leveraging fonts and icons that reinforce merchandising themes. Distinct colors and symbolic shapes with taglines convey the essence of operations.

Creating Business Cards and Signage

Hard copy business cards from Vistaprint establish convenient referrals and vendor introductions when sourcing specialty items or recruiting location scouts. Professional designs aligning with other visual touchpoints signal focused retail leadership to landlords, donors, and job candidates. Prominent store signage in matching schemes solidifies consistent identification.

Purchasing a Domain Name

Owning the perfect .com web domain eliminates confusion, strengthens search visibility, and conveys growth ambitions to early supporters. Recommendations include keeping under 15 letters, avoiding overused terms like “shop”, and picking keywords like “thrift”. Registration runs $12 annually via trusted platforms like Namecheap .

Building a Website

Leveraging online store builders like Wix to launch information-rich websites imparts digital fluency and omnichannel convenience for nominal subscription fees. Templates, SEO tools, and integrated payment processing enable showcasing mission, merchandise, and promotions. Alternatively, Fiverr freelancers provide customized coding and graphic design skills.

12. Join Associations and Groups

Expanding professional connections regionally seeds invaluable growth insights for new thrift entrepreneurs through established peers navigating similar consignment challenges. Local groups build community stewardship while national associations unlock merchandising ideas and policy advocacy.

Local Associations

Area reuse retail alliances like the Association of Resale Professionals share important information on forming your local shop. Members also trade notes on regional supplier partnerships for hard-to-find items and how to determine your thrift store worth.

Local Meetups

Local Meetups Frequent gatherings hosted on sites like Meetup enable one-on-one access to veteran owners. Get together at informal networking events or local tradeshows and talk shop. You may also attend formal presentations on transitioning to ecommerce channels, and other important industry details.

Facebook Groups

Digital communities like Community Thrift Store offer 24/7 idea exchanges on display planograms for highlighted categories, tips for photographing rare items, and discussion of POS system integrations (Free to join). More niche groups like Thrift Shop Junkies detail strategies for sourcing the best secondhand couture.

13. How to Market a Thrift Business

Strategic promotion spotlights distinct merchandise strengths and store personalities to attract recurring local shoppers amidst expanding reuse competition. Balancing digital discovery and community goodwill fosters sustainable loyalty and word-of-mouth momentum.

Personal Networking

Tapping existing networks maximizes initial grand opening awareness. Offering 10% off coupons to happy first-month patrons who refer friends also rewards supporters. Special weekend “flash sales” advertised through advocates prompt viral attention and buyer urgency.

Digital Marketing

• Google/Facebook paid ads geo-target nearby households to build local visibility across devices when searching categories carried ($100 per month minimum budget)
• Instagram business profiles visually showcase rotating selections and behind-the-scenes operations while optimizing vintage finds for Gen Z appeal
• TikTok channel cultivates “thrift flipped” restoration tips and shop peeks to entertain and inform video-centric audiences
• Daily eBay product listings draw national buyers for premium or rare discoveries
• Retail podcast co-hosted with local business leaders or historians spotlights community
• Influencer consignment and donation partnerships generate publicity from loyal followers unboxing
• A loyalty punch-card app clocks visit and notifies repeat customers of flash deals

Traditional Marketing

Traditional approaches like newspaper ads, printed a-frames sidewalk placards and direct mailers still furnish value for older demographics less reachable online. However, tracking effectiveness lags digital. Consider blending both techniques to provide omnichannel exposure. Examples include:

• Placing categorized inventory ads in weekly Pennysavers
• Bulletin board flyers at community centers and colleges
• Catchy radio spots on local public stations
• Eye-catching reader boards touting daily discounts off Highway exits
• Chamber membership securing referrals from neighboring proprietors

Overall sustaining consistent digital engagement and customer appreciation unlock referrals and reviews rivaling bigger budgeted promotion campaigns. Specializing merchandise and creatively partnering with media supporters spotlight niche authority cementing loyal bonds between shoppers and thrift owners.

14. Focus on the Customer

Delivering exceptional service keeps shoppers returning and spreading positive word-of-mouth as they proudly share their latest pre-owned finds with friends. Thoughtful assistance in converting first-timers into regulars also grows average transaction values.

For example, thrift stores should train staff on properly inspecting donations to accurately gauge conditions when pricing items. Taking time to test electronics functionality, assess furniture tears, and research vintage fashion eras reduces mislabeled offerings that disappoint patrons.

Additionally, creative merchandising to simplify browsing inspires bigger baskets. Regularly reorganizing displays by style, color, and category makes uncovering hidden gems more enjoyable. Featured deal sections also spotlight new arrivals and ever-changing options, unlike mass retailers. Clothes from sewing businesses that feature timeless styles are also highly popular.

Getting to know repeat visitors to proactively showcase items matching their interests leaves lasting impressions. Providing tailor and repair recommendations for particularly valuable vintage materials further elevates service.

Consistently exceeding expectations creates vocal brand advocates. Nearly 70% of thrift store consumers prefer to buy from local suppliers rather than anonymous chains. Personalized assistance, community initiatives, and sustainable operations encourage return shoppers.

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Thrift Store Business Plan [with Free PDF] Update 2023

Looking to open a thrift store? Step one is creating a thrift store business plan. Don’t worry, we have a sample plan ready for you, which will make the process much easier. Before working on your business plan, you want to check out some examples of plans related to retail stores. You’ll learn a lot by studying these examples.

These sample business plans will help you understand your goals better. They’ll also show you the various sections successful entrepreneurs include in their plans and the language they use to describe their businesses.

We’ve put together a sample business plan for a thrift store to guide you. This should give you a clear picture of what an excellent business plan looks like and the details you need to consider for your own impressive plan.

What is a Business Plan?

A business plan is like a roadmap for your thrift store. It shows where you are now and how you plan to grow over the next five years.

It outlines your business aims and how you plan to achieve them. Plus, it includes data from market research to back up your strategies.

So, if you’re thinking of setting up a thrift store or want to expand an existing one, you need a business plan, even if you are starting a thrift store with no money.

It can help you secure investment (if required) and strategize your thrift store’s growth, enhancing your chances of success.

Your thrift store business plan is a dynamic tool that should be updated yearly to reflect your business’s evolution and changes.

Thrift Store Business Plan

So, how do you write a thrift store business plan?

1. Executive Summary

Think of your executive summary as a trailer to a movie, it’s usually written at the end because it sums up everything about your business plan. It’s meant to catch the reader’s interest right off the bat. You’ll talk about what kind of thrift store you’re running and where you’re at with it.

• Are you just starting out, wanting to expand an existing store? or
• Do you already have multiple locations?

After that, give them a peek into the rest of your business plan. Give them a snapshot of your industry, your business, your competition, who you’re targeting, your marketing strategies, key team members, and your financial outlook.

For example:

Our Thrift Store, named “Thrift Smart” aims to be a prime destination for secondhand goods and vintage items. We will provide high-quality, gently used merchandise at affordable prices, promoting a culture of recycling and sustainability.

2. Company Description

The company analysis is all about your thrift store. There’s a variety of thrift stores out there, like:

• Vintage thrift stores – sell older, retro clothes and shoes that are at least 10 years old.
• Consignment thrift stores – sell pricier items like clothes, shoes, and jewelry that can be resold if they’re in good condition.
• Goodwill thrift stores – accept all types of donations and often employ disadvantaged individuals, benefiting the community.

Beyond explaining what kind of thrift store you’ll run, you should also talk about your business’s background. Answer questions like: Why and when did you start? What have you achieved so far? What is the legal structure of your business (e.g. S-Corp, LLC, or sole proprietorship)?

Thrift Smart” is a brick-and-mortar thrift store based in the bustling city center, making us easily accessible to a diverse range of customers. We deal in a broad spectrum of products, including clothes, accessories, furniture, home decor, books, and more. “Thrift Smart” offers an array of secondhand items in excellent condition. We specialize in: Products Clothing Trendy, vintage, and seasonal wear Furniture From antique pieces to modern designs Home Decor Eclectic mix to match various aesthetics Books Bestsellers, classics, and rare finds Our mission is to encourage the sustainable lifestyle of reusing goods, reducing waste, and saving money while providing an enjoyable shopping experience.

3. Market Analysis

The industry analysis helps you understand your market better and strengthens your strategy. It also shows readers that you know your stuff.

In this section, you should answer:

• How big is the thrift store industry?
• Is the industry growing or shrinking?
• Who are your main competitors and suppliers?
• What trends are shaping the industry?
• What’s the growth forecast for the next 5-10 years?
• How big is your potential market? You can calculate this by checking the national market size and adjusting it based on your local population.

Target Market

Our primary target market is millennials and Gen-Z individuals who are conscious about sustainability and love hunting for unique, vintage pieces at a bargain. We will also cater to families looking for affordable home goods and clothing.

Industry Trends

With growing awareness of environmental issues, thrift stores are gaining popularity. The COVID-19 pandemic also boosted thrift store shopping as more people became budget-conscious.

Competition

While there are other thrift stores in the area, “Thrift Smart” sets itself apart by offering curated selections, regular inventory updates, and a pleasant in-store shopping experience.

4. Customer Analysis

In your thrift store business plan, you need a clear understanding of the customers you aim to cater to.

This might include groups such as individuals, families, or those on a low income. Remember that different customer groups will be attracted to different types of thrift stores and marketing strategies.

Try to provide a detailed picture of your potential customers, including factors like their age, gender, location, and income level. Go a step further and try to define what they want and need – the better you understand this, the more successful you’ll be in attracting and keeping them.

5. Competitor Analysis

YOu “must” understand your competitors. Identify who they are – these will likely be other thrift stores close to your location but also include indirect competitors like large retail stores or garage sales.

Try to provide a summary of each of these businesses, noting what they do well and where they fall short. You may not know everything about them, but try to understand key aspects such as:

• The type of thrift stores they run
• The areas they serve
• The customers they target
• Their pricing strategies
• Their strengths and weaknesses

You also should identify what makes your business unique. Will you offer products or services that your competitors don’t? Can you provide better customer service or pricing? This is your competitive advantage.

6. Operations Plan

This section talks about how your thrift store will operate day-to-day and achieve its long-term goals. The operations plan is your roadmap to success.

• Daily processes . This is what you do every day to keep your store running. It includes things like cleaning the store, managing the inventory of items, making work schedules for your staff, taking in new items, and promoting your store.
• Long-term goals . These are the big milestones you’re aiming for. For example, it might be the day you get your XXth customer, or when your store’s earnings reach $X. It could also be when you plan to expand your store to another location.

7. Management Team

Your thrift store’s success depends on a strong team of leaders. Your management team’s job is to make the company grow.

Here’s where you talk about the backgrounds of your key players. Show off the skills and experiences they have that make them good at their job. If you or your team have experience in running a thrift store, that’s great. Make sure to talk about it. Also, share other experiences that you think will help your thrift store succeed.

If you feel your team isn’t complete, think about forming an advisory board. This would be a group of 2 to 8 people who can act as guides for your business. They can help answer questions and give advice on strategy. If necessary, try to find board members who have experience in managing a thrift store, or in nonprofit work and community relations.

Your thrift store can be managed by a small but dedicated team.

8. Marketing and Sales Strategy

Your marketing plan is essential for your thrift store business plan. This should include:

• What type of thrift store are you running, and what specific services will you offer? You might offer extra services like skating instruction or food and drink.
• How will your prices compare to your competitors?
• Where is your thrift store located? Discuss how the location will contribute to your success – for instance, is it near a busy neighborhood or a school?
• How will you let people know about your store? You could consider advertising in local papers, distributing flyers, using social media, or relying on word-of-mouth.

Our marketing strategy involves engaging customers through social media platforms, local newspaper advertisements, and in-store promotions. For sales, we will provide an enjoyable shopping experience by maintaining a clean, organized store with friendly staff ready to assist. We will also offer a loyalty program for regular customers and discounts on bulk purchases.

9. Financial Projections

Our financial projections for the first year of operations are as follows:

Estimated operating expenses are $60,000, including rent, utilities, salaries, and procurement.

Your financial plan is a blueprint that showcases how your money will work for you over the next five years. In the first year, you’ll need to prepare monthly or quarterly reports, then after that, yearly ones. These reports include your income statement, balance sheet, and cash flow statements.

Let’s break each one down:

• Income statement . This is also known as a Profit and Loss (P&L) statement. It’s basically a list of all the money you’re making (revenues), and the money you’re spending (costs). The end result tells you if you’re making a profit or a loss. You’ll need to make some guesses when making your income statement. For example, how much will you charge for the items you’re selling? How much do you think your sales will grow each year? These assumptions will shape your business’ financial future, so try to base them on real data.
• Balance sheets . These sheets display what you own (assets) and what you owe (liabilities). Although these sheets can hold a lot of details, try to keep them simple and focused on important items. For instance, if you spend $50,000 on setting up your store, it won’t give you instant profits, but it’s an asset that will help you make money in the long run. Similarly, if a bank gives you a $50,000 loan, you won’t have to repay it immediately, but over time, it becomes a liability.
• Cash flow statement . This report shows how much money you need to start or grow your business, and ensures that you never run out of cash. Many business owners forget that even if you’re making a profit, you can still run out of cash and go bankrupt.

When you’re preparing your Income Statement and Balance Sheets, don’t forget to include all the key costs related to starting or expanding your store. These costs include:

• Building and outfitting your store
• Store supplies
• Marketing costs
• Staff wages
• Business insurance
• Taxes and permits
• Legal costs

10. Appendix

You can add an appendix to your financial plan. This section should include your full financial projections and any documents that support and enhance your plan. For example, you might include a list of products your store will sell, information about your target customers, and details about the areas your store will serve.

11. Exit Strategy

As part of your thrift store business plan, you also include what happens should the business goal fails. If the business doesn’t prove viable, include if you would sell the inventory, recuperate the initial investment as much as possible, and close the store.

Sourcing for Inventory

In a thrift store business, sourcing inventory can be done in several ways. You could also include the funding aspect in your thrift store business plan.

• Donations. A very common method of sourcing inventory from the local community. This can include clothing, books, furniture, and other household items. You can encourage donations by providing donors with discount vouchers or other incentives.
• Estate sales. There are events where families sell their belongings, typically due to a move or after a family member’s death. It’s a great place to find a wide range of items, often in good condition and at a low price.
• Garage sales and yard sales. Garage sales are typically sold for a fraction of their original cost. However, it’s important to arrive early to get the best items.
• Wholesale purchases. Your company can buy large lots of items from wholesale companies, including returned items, overstock from retailers, or products from company liquidations.
• Consignment. In this method, items are placed in the store by owners. When the item sells, the store takes a percentage of the sale, and the rest goes to the item’s owner.
• Online Marketplaces. Platforms such as eBay, Craigslist, and Facebook Marketplace can also be valuable resources for finding inventory.
• Clothing Drives. Your thrift store can host community clothing drives to help gather a large amount of inventory while also promoting our store in the community.

What to Do with Unsold Inventory

It may not be business every day; some days you just have to dust it off and keep going. In your thrift store business plan, you could also discuss what happens to unsold inventory. Here are some ideas.

1. Markdown Sales

You can clear unsold items by marking down the prices over time. This not only encourages purchases but also maintains a steady flow of inventory.

After a certain period, any items still unsold could go into an “everything must go” sale where shoppers can fill a bag for a set price.

2. Donations

Donating unsold items is another excellent option, especially for a thrift store that already operates around the idea of reuse and giving.

These organizations often appreciate such contributions, and it provides additional community service.

3. Recycling

Recycling is an eco-friendly way to handle unsold items. Many materials, particularly textiles, can be recycled into new products.

Before choosing this route, ensure a reliable and ethical recycling service is available in your area.

4. Consignment or Wholesale

Unsold items could be sold to consignment stores or wholesalers who might have a different customer base.

This method may help recover some costs associated with the unsold inventory.

Each strategy has its place, and often a combination is used. The chosen method will depend on factors like the volume and type of unsold items, local resources, and the store’s mission and values.

Pricing Strategy

Pricing items in a thrift store can be a bit tricky as it involves finding a balance between generating revenue and offering customers a good deal. Here are some general steps we follow to price items:

• Evaluate the Item’s Condition : The first step is assessing the condition of the item. New or nearly new items can be priced higher than those showing signs of wear and tear.
• Research : Look at the original retail price of the item, if possible. Also, check similar items in other thrift stores or online platforms like eBay to understand the going rate.
• Calculate the Price : As a rule of thumb, thrift store items are typically priced at 30-50% of the original retail price. However, for more upscale or rare items, we may price up to 60-75% of the original cost, provided the item is still in demand and in excellent condition.
• Consider Seasonality : Seasonal items may be priced slightly higher. For example, winter coats may command higher prices during colder months.
• Factor in Overhead Costs : While we want to offer a great deal, we also need to cover operating expenses like rent, salaries, utilities, etc.
• Price Reduction Strategy : To keep the inventory moving, we may progressively reduce the price of items that have not sold within a certain period. This way, we can make room for new items and maintain a fresh stock.

You can state in your thrift store business plan that your store is always open to negotiation, within reason. If a customer suggests a fair price for an item that’s been sitting on the shelf for a while, you might consider accepting the offer to make the sale.

Attracting Customers

Attracting customers to a thrift store involves a mix of marketing and in-store strategies. For this section, we will use a first-person (we) point of view to drive home the points.

Here are some of the methods you can include in your thrift store business plan.

1. Social Media Presence

Social media platforms like Instagram, Facebook, and Twitter are invaluable tools for promoting our store. We post photos of unique items, share customer testimonials, announce sales, and engage with our followers.

2. Email Marketing

We collect email addresses from our customers and send them regular updates about new arrivals, special discounts, or events.

3. Window Displays

Attractive window displays can draw in passersby. We change these displays regularly to showcase our newest and most interesting items.

4. Community Engagement

We participate in local events, sponsor charity drives, and collaborate with local businesses to build our brand presence in the community.

5. Loyalty Program

We offer a loyalty program where customers earn points for every purchase, which they can redeem for discounts on future purchases.

6. In-Store Experience

We make sure our store is clean, and well-organized, and that our staff is friendly and helpful. A positive shopping experience can turn a first-time visitor into a repeat customer.

7. Special Sales

We run special sales events (e.g., end-of-season sales, holiday sales) to attract bargain hunters.

8. SEO Optimization

If we have an online store, we use SEO strategies to improve our website’s visibility on search engines.

9. Partnerships

Partnering with local businesses or influencers for cross-promotions can also be a great way to reach new customers.

10. Word of Mouth

Offering great products at great prices and providing excellent customer service can fuel word-of-mouth referrals, one of the most effective marketing strategies.

How About Any Loyalty Program?

A loyalty program is an excellent tool to retain customers and incentivize repeat purchases. Here’s an example of a simple but effective loyalty program for our thrift store, “Thrift Smart”:

• Treasure points loyalty program. Our customers can join the Treasure Points Loyalty Program free of charge. Here’s how it works:
• Earning points . For every dollar spent in the store, customers earn one Treasure Point. We may also offer double points during special promotional periods or on specific categories of items.
• Redeeming points . Once a customer has accumulated a certain number of points, they can be redeemed for discounts on future purchases. For example, 100 points could be worth a $10 discount.
• Bonus rewards . On top of the points system, we could provide extra rewards for our loyal customers. For instance, customers might get a special birthday discount, early access to sales, or exclusive shopping events.
• Tracking points . Customers can track their points through a mobile app or via our website. Our sales associates can also provide this information in-store.
• Expiration . Points would need to be used within a certain period, say one year, to encourage regular visits to the store.

Free Business Plan for Thrift Store

(Use the PDF)

Source: https://upmetrics.co/

Marketing Plan for Thrift Store

1. social media marketing.

Use platforms like Instagram and Facebook to showcase our products, interact with customers, and share updates.

2. Local Marketing

This involves engaging with the local community through events, partnerships, and local media.

3. Email Marketing

Send regular newsletters with updates, discounts, and special offers to customers who have opted in.

4. In-Store Marketing

Create a pleasant shopping environment that encourages customers to spend more time (and money) in the store.

You could have a “Treasure Points” program that incentivizes repeat purchases by offering points that can be redeemed for discounts.

Exit Strategy Extended

For our thrift store, “Thrift Smart,” you can have the following exit strategies:

1. Liquidation

In this case, you could sell off all the store’s assets, including inventory, fixtures, and any other equipment. The cash generated could be used to pay off any debts or liabilities, and any remaining money would be the profit.

2. Sale of the Business

Alternatively, your store can sell the entire business to a competitor or another interested party. In this case, you would need to accurately evaluate the business’s worth, which would include tangible assets (inventory, equipment, etc.) and intangible assets (brand reputation, customer base, etc.).

3. Merger or Acquisition

You could consider merging with another business or allowing a larger company to acquire your thrift store. This would typically provide a higher return compared to liquidation but would require finding a suitable partner or buyer.

Here’s how we would plan and implement these strategies:

Staffing Organization

• Store manager.  The store manager is responsible for the overall functioning of the store. They handle hiring, training, scheduling, inventory management, and store operations. They’re also in charge of handling any escalated customer service issues.
• Assistant manager.  The assistant manager supports the store manager in their duties and steps in when the store manager is unavailable. They might have specific duties such as overseeing merchandising or employee training.
• Cashiers.  Cashiers handle the checkout process, ringing up sales, bagging items, and processing returns or exchanges. They should be friendly and able to handle transactions swiftly and accurately.
• Sales associates.  Sales associates are responsible for assisting customers on the shop floor. They answer questions, help locate items, and might also handle fitting rooms if applicable. Their goal is to create a pleasant shopping experience for every customer.
• Merchandiser/Stock Associate.  The merchandiser is in charge of creating attractive displays in the store and organizing the store layout. They might also handle restocking tasks. The stock associate is primarily responsible for sorting and pricing donations, maintaining inventory, and restocking shelves.
• Janitor/Cleaner.  A janitor or cleaner is vital to keep the store clean and tidy. This includes sweeping and mopping floors, dusting, cleaning restrooms, and removing trash.

Handling Customer Complaints

Should you have to include the customer complaint handling section, use this as a guide:

1. You Would Listen Actively

When a customer has a complaint, the first step is to listen attentively to their concerns without interrupting. Make the customer feel heard and understood.

2. Apologize and Empathize

Even if the complaint isn’t the store’s fault, apologize to the customer for their negative experience. You have to show empathy and understanding – this can often defuse a tense situation.

3. Ask Questions and Clarify

If the issue is not clear, ask for more details. You would have to be sure to understand the complaint fully before offering a solution.

4. Offer a Solution

After understanding the problem, propose a solution. This could be a refund, replacement, or any other remedy appropriate to the issue. If you can’t resolve the complaint immediately, let the customer know you will follow up.

5. Follow-Up

After the complaint has been handled, follow up with the customer to make sure they are satisfied with the resolution. This demonstrates that the store values its customers.

6. Learn and Improve

Use the complaint as a learning opportunity. If a certain issue keeps arising, consider how store policies or procedures can be changed to prevent the problem in the future.

Thrift Store Ideas for Business

You would do with some ideas, wouldn’t you? So, here are some ideas you can bring in to help your thrift store business overall:

1. Niche Selection

Identify a specific market segment to cater to. It could be vintage clothing, used books, antique furniture, or children’s toys.

Most of the time, sticking to a particular niche helps you stand out from other thrift stores and attract a dedicated customer base. So, don’t forget to pin your specific niche into your thrift store business plan.

2. Quality Control

Ensure that all items you sell are in good condition. While customers expect thrift store items to be used, they still want items that are clean, functional, and presentable.

You’d also want to implement a strict quality control process. This will help maintain customer satisfaction and your store’s reputation.

3. Online Presence

It’s the 21st century, you know. And that rings a bell – “digital age”. Now, having an online presence is synonymous with a successful business, most of the time. So, for your thrift store business plan, consider including your set up an e-commerce website where customers can browse and purchase items. Social media platforms can also help you showcase items, announce sales, and engage with customers.

4. Community Involvement

Thrift stores often have strong ties to their local communities. Consider partnering with local charities or hosting community events. You will need this to increase your store’s visibility and reputation.

5. Sustainable Practices

Promote your store’s commitment to sustainability. This could involve using recycled materials for packaging, implementing energy-efficient practices, or donating a portion of profits to environmental causes.

6. Customer Loyalty Program

Implement a customer loyalty program to encourage repeat business. This could involve a points system, where customers earn points for every purchase that can be redeemed for discounts on future purchases.

7. Regular Sales and Promotions

Hold regular sales and promotions to attract customers and move inventory. This could involve seasonal sales, flash sales, or discounts on certain categories of items.

Is the Thrift Store Industry Growing?

The thrift store industry has been witnessing considerable growth over the past decade, driven by various socio-economic factors. Increased focus on sustainability, economic downturns, and changing consumer attitudes toward used goods have all contributed to the factors.

More consumers are shifting towards thrift stores as a means to combat the detrimental effects of fast fashion. They perceive purchasing second-hand goods as a way to reduce waste and promote the circular economy.

According to ThredUp’s 2021 Resale Report, the secondhand apparel market is projected to double in value from $36 billion in 2021 to $77 billion by 2025. This expansion isn’t limited to just clothing; other segments like furniture, electronics, books, and household goods also exhibit strong growth trajectories.

Another significant factor is the economic fluctuations and downturns that have made consumers more budget-conscious. They are increasingly turning to thrift stores to find quality goods at significantly reduced prices. For instance, during the financial crisis of 2008, many thrift stores reported an increase in sales, as consumers sought to tighten their belts – Reuters report.

Lastly, the perception of buying used goods has shifted drastically. A study by First Insight found that 40% of millennials and Gen Z are open to buying second-hand items, compared to just 28% of Gen X and baby boomers. This acceptance of pre-owned goods by younger demographics is a clear signal of continued growth in the thrift store industry.

In terms of industry segmentation, clothing, and footwear continue to dominate with a 60% share, followed by furniture at 20%, electronics at 10%, and books and others at 10% – GlobalData.

Read also : How to Start Buying and Selling Video Games for Profit

My name is Mike and I am a Cybersecurity Expert and Software Developer with over 10 years of experience. I discuss Business, Technology, Online Security, and exposing scams on the Internet. You are welcome to buy me a beer if you love my work.

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• Entertainment

The Ultimate Guide: Crafting the Best Thrift Store Business Plan

• December 06, 23
• 4 mins read

Believe it or not, thrifting is the new black. Everyone wants to stay on top of fashion trends but on a budget. This creates space for entrepreneurs to come up with business strategies that can be profitable. However, you need to take the first step. And writing a thrift store business plan is the one.

Whether you’re a seasoned entrepreneur or a budding business enthusiast, crafting a meticulous thrift store business plan is the key to unlocking success in today’s dynamic market. So, let’s explore the hype around this topic.

What is a Thrift Store?

A thrift store is a retail establishment that sells second-hand goods, often donated by individuals. These treasures range from clothing and furniture to books and electronics, providing customers with affordable options while contributing to sustainable living.

4 Practical Ideas for a Thrift Store Business Plan

1. unique value proposition.

Begin your thrift store business plan by defining your unique value proposition. What sets your store apart from the rest? Whether it’s a curated selection of vintage fashion or a commitment to eco-friendly practices, clearly articulate what makes your thrift store a must-visit destination for shoppers seeking one-of-a-kind finds.

2. Target Market Analysis

Understanding your target market is essential for tailoring your thrift store’s offerings to meet their preferences. Conduct thorough research to identify your ideal customers, considering demographics, psychographics, and purchasing behavior. 

3. Online Presence and E-commerce Integration

A robust online presence is crucial for business success in today’s digital age. Incorporate an e-commerce component into your thrift store business plan to tap into a broader customer base. Create a user-friendly website, leverage social media platforms, and explore online marketplaces to showcase your inventory and drive sales.

4. Community Engagement Strategies

Thrift stores often thrive when they become an integral part of the community. Develop strategies in your business plan to engage with local residents and organizations. Host events, collaborate with local artists, or partner with charitable causes to boost your store’s visibility and contribute to the community’s well-being.

3 Secret Tips that Would Work in Today’s World

1. adaptability and flexibility.

In the ever-evolving landscape of retail, adaptability is critical. Your thrift store business plan should reflect your ability to pivot in response to market trends and consumer demands. Stay informed about industry changes and be prepared to adjust your strategies accordingly.

2. Social Media Marketing

Utilize platforms like Instagram, Facebook, and Twitter to showcase your inventory, engage with customers, and run targeted advertising campaigns. Social media is a powerful tool for building brand awareness and driving traffic to your physical and online stores.

3. Customer Feedback and Reviews

Integrate mechanisms for collecting customer feedback and reviews into your business plan. Positive reviews build credibility and trust, while constructive feedback provides valuable insights for improvement. 

Wrapping Up:

Let’s toast the exciting journey in thrift store entrepreneurship. Crafting a thoughtful thrift store business plan that aligns with modern trends, sustainability practices, and community engagement will lead you to success and contribute to a more vibrant and sustainable retail landscape. 

Read our latest blog on ‘ Cash Flow Businesses to Boost Finances in 2024 ‘ to explore innovative opportunities and discover how to improve your financial standing.

Sarah McKenzie, a wordsmith passionate about knitting elegance into every sentence. As an editor, literary explorer, and culinary adventurer raised in the historic charm of Edinburgh, Scotland, Sarah brings a touch of cultural richness to her storytelling. Join her in exploring the delight of the rich tapestry of Scottish culture and dance in the world of elegance with every story or blog post.

Start a Thrift Store Business

Discovering Treasures: The Thrills and Spills of Running a Thrift Store

THRIFT STORE BUSINESS

Related business ideas, discover your perfect domain, thrift store mini business plan, business analysis: thrift store business, expected percent margins:, earnings expectations:, actions to hit those numbers:, inventory management:, marketing and customer acquisition:, sales and customer experience:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a thrift store business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, step 3: obtain necessary licenses and permits, step 4: secure a location, step 5: set up the store, step 6: source inventory, step 7: market the business, step 8: set up accounting and bookkeeping, step 9: open the store, explore more categories, take the next steps.

Thrift Store Business Plan

Written by Elma Steven | Updated on April, 2024

How to Write a Thrift Store Business Plan?

Thrift Store Business Plan  is an outline of your overall thrift store business. The business plan should includes a  5 year financial projection, marketing plan, industry analysis, organizational overview, operational overview and finally an executive summary.  Remember to write your executive summary at the end as it is considered as a snapshot of the overall business plan. You need to be careful while writing the plan as you need to consider various factors that can impact the business’s success.

You can spend 3 to 4 weeks trying to write your own Business Plan by browsing through free online resources or hire a professional writer for $2,000. There is a better way to do this-  Download Our Thrift Store Business Plan to write a plan in just 2 days .

This depends on your expected revenue and cost. Also, we need to consider the startup cost. Find out the answer- Is Thrift Store Business Profitable?

Table of Contents

Executive summary.

Overview : [Thrift store name] is a revolutionary thrift store aiming to transform the shopping experience for consumers who are seeking affordable, stylish and high-quality pre-owned items. It is located in [location] and was founded by [founder] during [year of establishment]. As a socially responsible business, we are committed to giving back to the community by reducing waste, promoting sustainable shopping habits, and providing job opportunities for the underprivileged.

Problem Summary: The global fashion industry produces 92 million tons of waste annually, with clothing consumption expected to rise by 63% by 2030. The fast fashion trend has led to increased clothing disposal rates, overwhelming landfills and negatively impacting the environment. Additionally, low-income families struggle to afford fashionable and quality clothing, which limits their ability to express themselves and feel confident.

Solution Summary: Bargain Bonanza addresses these issues by offering a curated selection of gently used, high-quality, and fashionable clothing at affordable prices. Our store provides an eco-friendly shopping alternative that reduces the environmental impact of fast fashion and extends the lifecycle of garments. By collaborating with local non-profit organizations and offering vocational training, we will also create job opportunities for disadvantaged individuals and support the local community.

Industry Overview: The global second-hand clothing market was valued at $32 billion in 2020 and is projected to reach $51 billion by 2023, growing at a CAGR of 11% from 2018 to 2023 (source: GlobalData). The US thrift store industry alone generates approximately $10.5 billion in annual revenue (source: IBISWorld). This growth is driven by increasing environmental awareness, consumer preference for unique and vintage styles, and the desire for affordable clothing options. The industry is characterized by a mix of small, local stores and large-scale chain operations such as Goodwill and The Salvation Army, creating a diverse and competitive market landscape. Check out this guide on  how to write an executive summary?  If you don’t have the time to write on then you can use this  custom Executive Summary Writer  to save Hrs. of your precious time.

Financial Overview: Click here for Updated Chart

Business Description

Business Name:  Bargain Bonanza

Founder: Jacob Harrison

Management Team: 

Legal Structure: LLC

Location: 1234 Main St, Bellevue, WA 98004

Mission: “To provide a sustainable, affordable, and fashionable shopping experience that fosters community growth and environmental responsibility.”

Vision: “To become a leading thrift store chain recognized for its commitment to social and environmental impact, while empowering customers to make responsible and stylish choices.”

Goals: 

• Environmental Impact: Divert a significant amount of textile waste from landfills by promoting sustainable shopping habits and increasing the lifecycle of clothing items.
• Community Development: Create job opportunities and offer vocational training for disadvantaged individuals, in partnership with local non-profit organizations.
• Customer Satisfaction: Deliver a consistently high-quality, diverse, and stylish selection of pre-owned products that cater to a wide range of consumer preferences.
• Expansion: Establish multiple store locations across the country, fostering a strong brand presence and further promoting sustainable shopping alternatives.
• Financial Success: Achieve profitability within the first three years of operation and maintain steady revenue growth.

Products: 

• Clothing: A curated selection of gently used men’s, women’s, and children’s apparel, including shirts, pants, dresses, outerwear, and activewear.
• Accessories: A diverse assortment of bags, belts, hats, scarves, and other fashionable accessories that complement our clothing offerings.
• Shoes: A range of stylish and comfortable footwear for men, women, and children, including sneakers, boots, sandals, and heels.
• Jewelry: Unique and affordable pre-owned jewelry, such as necklaces, bracelets, rings, and earrings.
• Vintage and Collectibles: An exclusive section featuring vintage clothing, memorabilia, and collectible items for enthusiasts and collectors.
• Home Goods: A variety of gently used home décor, kitchenware, and small furniture items that appeal to eco-conscious customers looking to furnish their homes in a sustainable manner.

Financial Overview

Key Metrics

Click here for Updated Chart

Business Model 

Check out  100 samples of business model canvas .

Check out the  100 SWOT samples  which will give you a better idea on SWOT writing process.

Organizational Overview

Jacob Harrison

Founder/ CEO/ 

Hi there! My name is Jacob Harrison and I am the passionate and driven founder of Bargain Bonanza, a thriving thrift store focused on promoting sustainable shopping, providing affordable fashion, and giving back to the community. With over a decade of experience in the retail and fashion industries, I have cultivated a deep understanding of customer needs and market trends, positioning me as an innovative leader in the second-hand clothing market.

I began my career working for a major clothing retailer, where I quickly rose through the ranks and gained invaluable experience in inventory management, merchandising, and sales. This experience ignited my passion for the fashion industry but also exposed me to the environmental and social issues associated with fast fashion.

Determined to make a positive impact, I pursued a degree in Environmental Science from a renowned university, where I specialized in sustainable business practices. Upon graduation, I worked for an environmental consultancy firm, honing my skills in sustainability and corporate social responsibility.

Combining my love for fashion, retail expertise, and commitment to sustainability, I founded Bargain Bonanza in 2023. My vision was to create a business that not only offered affordable and stylish pre-owned items but also promoted eco-friendly shopping habits and contributed to community development.

Under my leadership, Bargain Bonanza has successfully curated a diverse and fashionable inventory that appeals to a wide range of customers. In addition, the store has developed strong partnerships with local non-profit organizations, creating job opportunities and offering vocational training for disadvantaged individuals.

My dedication to environmental responsibility, social impact, and customer satisfaction has set the foundation for Bargain Bonanza’s success and future growth. As the company expands, I remain committed to upholding the core values that have made Bargain Bonanza a beloved and trusted shopping destination for eco-conscious consumers.

Management & Operations:

Marketing & Sales:

Finance & Accounting:

Industry Analysis

Industry problems .

• Environmental Impact: The fast fashion industry contributes to pollution, excessive water consumption, and textile waste in landfills, which raises concerns about sustainability.
• Disposable Clothing Culture: The rapid pace of fashion trends encourages consumers to frequently discard clothing, leading to increased waste and overconsumption.
• Limited Access to Quality Affordable Clothing : Low-income families often struggle to find fashionable and high-quality clothing at affordable prices.
• Inefficient Resource Management: The fashion industry often lacks efficient recycling and upcycling processes, leading to the underutilization of resources.
• Labor Issues: Fast fashion production often involves unethical labor practices, such as low wages and poor working conditions, in developing countries.

Industry Opportunities

• Circular Economy: The growing interest in a circular economy promotes recycling, upcycling, and reusing materials, which can drive innovation and reduce waste in the fashion industry.
• Sustainable Fashion: The demand for sustainable and ethically-produced clothing presents an opportunity for businesses to adopt eco-friendly practices and appeal to environmentally conscious consumers.
• Technology Integration : The use of technology, such as AI and data analytics, can help businesses optimize inventory management, enhance customer experience, and reduce waste.
• Collaborations and Partnerships: Forming strategic partnerships with sustainable fashion influencers, designers, and organizations can boost brand recognition and customer engagement.
• Educational Initiatives: Raising consumer awareness about the environmental and social impacts of fast fashion can encourage sustainable shopping habits and support the growth of the second-hand clothing market.

Market Segmentation

• Demographic Segmentation:  
• Age: Targeting various age groups, such as teens, young adults, and adults, who are interested in affordable and sustainable fashion options.
• Gender: Catering to the clothing preferences and needs of both men and women.
• Income: Focusing on low to middle-income individuals who seek affordable, stylish, and quality clothing.
• Family Life Cycle: Providing clothing options for families with children, as they often require budget-friendly and sustainable clothing choices.
• Location: Targeting urban and suburban communities with a higher concentration of environmentally conscious consumers.
• Psychographic Segmentation:
• Values and Beliefs: Catering to customers who prioritize sustainability, ethical production, and reducing their environmental impact.
• Interests and Hobbies: Targeting individuals who enjoy thrift shopping, vintage fashion, and unique clothing styles.
• Lifestyle: Attracting customers who prefer a sustainable and eco-friendly lifestyle, including those who actively recycle, upcycle, and support ethical businesses.
• Behavioral Segmentation:  
• Occasion-Based: Offering seasonal and event-specific clothing, such as holiday attire, summer wear, or back-to-school selections.
• Benefits Sought: Catering to customers seeking affordable prices, unique styles, and eco-friendly shopping experiences.
• Usage Rate: Targeting both frequent and occasional thrift shoppers, as well as those new to second-hand shopping.
• Brand Loyalty: Implementing loyalty programs and promotions to encourage repeat business and long-term customer relationships.
• Customer Readiness Stage: Providing education and awareness initiatives to attract potential customers who may be hesitant to explore second-hand clothing options.

Market Size

Marketing Plan

Marketing budget.

Marketing Objectives

• Boost brand awareness: Increase recognition and recall by 20% within 12 months using targeted campaigns and social media.
• Grow market share: Expand market share by 10% in two years with innovative products and new segments.
• Retain customers: Raise repeat customer rate by 15% within a year through personalization, loyalty programs, and customer support.
• Enhance online presence: Increase website traffic by 25% and social media followers by 30% in 18 months using engaging content and SEO.
• Increase sales revenue: Achieve a 20% revenue growth in the next financial year with promotional strategies and product expansion.
• Strengthen brand loyalty: Improve net promoter score (NPS) by 10 points in 12 months by focusing on customer satisfaction and loyalty benefits.
• Promote sustainability: Increase eco-friendly products by 30% in two years to appeal to environmentally conscious consumers.
• Improve customer engagement: Boost email open rates by 20% and click-through rates by 15% in a year with targeted email campaigns.
• Enter new markets: Launch products in two international markets within 24 months using market research and strategic partnerships.
• Enhance product positioning: Raise top-of-mind awareness as a leader in comfort and innovation within 18 months through marketing and product innovation.

Go-to-Market (GTM) Strategy

• Social Media Marketing:

a. Create and share engaging content that reflects the brand’s values and showcases products.

b. Collaborate with influencers who resonate with your target audience to increase reach and brand awareness.

c. Utilize paid advertising campaigns on platforms like Instagram, Facebook, and Pinterest to target specific customer segments.

d. Engage with followers, respond to comments, and address customer inquiries to strengthen customer relationships and loyalty.

• Content Marketing:

a. Develop a blog on the brand’s website featuring educational and informative content about undergarments, trends, and styling tips.

b. Leverage video content on platforms like YouTube to showcase products, share tutorials, and engage with customers.

c. Create infographics or visually appealing content to share on social media platforms and drive website traffic.

• Email Marketing:

a. Build and segment email lists based on customer behavior, preferences, and demographics.

b. Send personalized email campaigns with targeted offers, promotions, and relevant content.

c. Utilize automation tools to nurture leads and encourage repeat purchases.

• Public Relations:

a. Develop press releases and media kits to promote product launches, collaborations, or brand milestones.

b. Cultivate relationships with industry journalists and bloggers to secure coverage in relevant publications.

c. Participate in industry events, trade shows, and fashion weeks to increase brand visibility and networking opportunities.

• Search Engine Marketing (SEM) and Search Engine Optimization (SEO):

a. Optimize website content and structure to improve organic search ranking on search engines like Google.

b. Utilize keyword research and on-page optimization to target relevant search queries.

c. Implement paid search campaigns (Google Ads) to capture high-intent search traffic and drive conversions.

• Affiliate and Influencer Marketing:

a. Develop an affiliate program to incentivize bloggers, influencers, and content creators to promote the brand and products in exchange for a commission on sales.

b. Collaborate with influencers on content creation, product reviews, and giveaways to generate buzz and increase brand exposure.

• Offline Advertising and Promotions:

a. Place ads in print magazines, newspapers, or on billboards that cater to your target audience.

b. Host in-store events, pop-up shops, or fashion shows to create memorable experiences and connect with customers.

Budget allocation across channels: 

A financial plan of a Thrift Store business plan provides a comprehensive projection of a company’s financial health and its anticipated monetary performance over a specified period. This section encompasses a range of financial statements and projections such as profit and loss statements, balance sheets, cash flow statements and capital expenditure budgets. It outlines the business’s funding requirements, sources of finance and return on investment predictions. The financial plan gives stakeholders particularly potential investors and lenders a clear understanding of the company’s current financial position. A financial plan helps businesses demonstrate their financial prudence, sustainability, and growth potential.

Income Statement

Cash Flow Statement

Balance Sheet

Revenue Summary

Cost Summary

Non- Current Asset Schedule

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Thrift Store

Back to All Business Ideas

How to Start a Thrift Store

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 31, 2021 Updated on March 13, 2024

Investment range

$2,550 - $35,100

Revenue potential

$156,000 - $780,000 p.a.

Time to build

1 – 3 months

Profit potential

$125,000 - $234,000 p.a.

Industry trend

Thrift stores can be full of treasures that someone else didn’t want, from clothing to trinkets to furniture. The US thrift store industry is valued at over $10 billion and growing. Whether you decide to specialize in vintage clothing, furniture, or a variety of items, you can make a profit by opening your own thrift store. 

You could also follow the path of a business like Goodwill and have a social mission with your thrift store. Goodwill’s mission is to divert items that would be discarded away from landfills to offer them at affordable prices to customers, while actively helping job seekers find employment in their stores.

Launching and running a thrift store will have challenges and will require work and time to get started. This step-by-step guide has all the relevant information and insight that you need to move forward and begin your entrepreneurial journey.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business, including a thrift store business, has pros and cons that you should consider before deciding if it’s the right path for you.

• Community Service – Save items from landfills and provide them at affordable prices
• Online Opportunity – You can start your thrift store as an online business
• Growing Market – Re-sale items are in high demand
• High Startup Costs – Costs to open a physical location are high
• Time-Consuming – You’ll have to find merchandise as well as sell it

Thrift store industry trends

Younger consumers are driving the growth of the market. Over 40% of resale apparel shoppers are Gen Zers and millennials.(( https://www.thredup.com/resale/#whos-thrifting-and-why )) 

Companies like Poshmark and ThredUp are booming, buying and reselling high-end fashion items . This presents a tremendous opportunity for a go-getter entrepreneur to start an online thrift marketplace without the startup costs and overhead expenses of a physical store.

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the US thrift store industry at nearly $11 billion, after an average annual growth of 1% in the past five years.(( https://www.ibisworld.com/industry-statistics/market-size/thrift-stores-united-states/ ))  
• Growth forecast – The $35 billion resale industry is expected to grow more than double in the next 5 years to reach $82 billion, according to a report by ThredUp, a resale company.(( https://www.thredup.com/resale/#size-and-impact )) 
• Number of businesses – More than 26,000 thrift stores are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/thrift-stores-united-states/ ))
• Number of people employed – Thrift stores in the US employ around 140,000 people.(( https://www.ibisworld.com/industry-statistics/employment/thrift-stores-united-states/ ))

Trends and challenges

Trends shaping thrift stores are:

• Online thrifting, resale, and vintage shopping are becoming popular
• Employment of content creators and use of social media in promoting thrift stores
• Growing awareness of environment-friendly and sustainable fashion products

Challenges faced by thrift stores include:

• Overcoming the negative stigma associated with secondhand or recycled clothing
• Highly competitive landscape

What kind of people work in thrift stores?

• Gender – 72% of storekeepers in the US are male, while 28% are female.(( https://www.zippia.com/storekeeper-jobs/demographics/#gender-statistics ))
• Average level of education – 33% of storekeepers hold a bachelor’s degree and 31% have a high school diploma.(( https://www.zippia.com/storekeeper-jobs/demographics/#degree-level-types ))
• Average age – The average age of a storekeeper is 39 years old.(( https://www.zippia.com/storekeeper-jobs/demographics/#age-statistics ))

How much does it cost to start a thrift store business?

Startup costs for a thrift store range from $2,500 to $35,000. The low end represents opening an online store with the largest costs being inventory and a website setup. The high end reflects the cost of opening a physical store.

You’ll need a handful of items to successfully launch your thrift store business. Here’s a list to get you started:

• Shelving and counters
• Storage containers for items

How much can you earn from a thrift store business?

Typically, the markup on resale items is between 5 and 8 times the purchase price, but it can vary greatly. Use our markup calculator to calculate your sale price and how much revenue and profit you will earn with different markup percentages. If you start an online store from home, you can expect a profit margin of about 80%. 

In your first year or two, you could work from home and sell 200 items a week at $15 average per item, bringing in $156,000 in annual revenue. This would mean around $125,000 in profit, assuming that 80% margin. As your brand gains recognition, sales could climb to 1,000 items per week. At this stage, you might rent an office and hire staff, reducing your profit margin to around 30%. With expected annual revenue of $780,000, you would make about $234,000.

What barriers to entry are there?

There are a few barriers to entry for a thrift store. Your biggest challenges will be:

• You’ll have to find inventory to start with which will take some legwork
• Competition, particularly online, is high

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Step 2: hone your idea.

Now that you know what’s involved in starting a thrift store, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research other thrift stores to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing an online home goods thrift store. 

You might consider targeting a niche market by specializing in a certain aspect of your industry such as glassware.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products

You can decide to specialize in a certain type of product such as clothing , or you could offer a variety. If you decide to purchase items at garage sales to re-sell, you could find any number of things from clothing to glassware and home goods.

Source products for your thrift store

The key to success in a thrift store is not just about having a wide range of items, but also about having interesting, unique, or high-demand items that attract a variety of customers. Here’s how to source them:

• Community Donations : Encourage local residents to donate items they no longer need.
• Estate Sales and Garage Sales : These are great places to find unique and valuable items at a low cost.
• Auctions and Liquidation Sales : Check out local auctions, including online platforms.
• Collaborations with Local Businesses : Partner with local businesses looking to offload old stock or unwanted items.
• Online Marketplaces : Platforms like eBay, Craigslist, or Facebook Marketplace are excellent for finding items.
• Flea Markets : Flea markets can be treasure troves for unique thrift items.
• Storage Unit Sales : Sometimes storage units are auctioned off. These can contain a wide variety of items, often at a very low cost.
• Consignment and Buy-Outright : Consider setting up a consignment system where people can leave their items for you to sell, or offer to buy items outright from individuals.
• Wholesale Purchases : Look into wholesalers who specialize in used or surplus goods. While this might require a larger initial investment, it can be a reliable source of inventory.

How much should you charge for thrift store items?

Your prices are going to vary based on what you buy items for and how much people are willing to pay for items. Keep in mind that your customers are going to be looking for items that are significantly less than they would pay for new items. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the type of products you decide to offer. If you specialize in trendy or vintage clothing, your target market will likely be younger, so you can find them on sites like Instagram or TikTok.

Where? Choose your thrift store location

If you have an online store, in the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office.

Look for a spot with high visibility and easy accessibility for both foot and vehicle traffic, preferably in a commercial area or close to other complementary businesses. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Thrift Store Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “thrift” or “thrift store”, boosts SEO
• Choose a name that allows for expansion: “Affordable Finds Thrift” over “Furniture Finds Thrift”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Thrift Store Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Provide a brief overview of your thrift store business, emphasizing its focus on selling affordable, quality second-hand goods and its unique position in the retail market.
• Business Overview: Describe your thrift store’s operation, which includes sourcing and selling a variety of used items such as clothing, furniture, and household goods.
• Product and Services: Detail the range of products offered, including second-hand apparel, home décor, books, and potentially upcycled items.
• Market Analysis: Assess the demand for thrift and second-hand goods, identifying key customer segments like budget-conscious shoppers, vintage enthusiasts, or eco-friendly consumers.
• Competitive Analysis: Compare your store to other local thrift shops and second-hand stores, highlighting your advantages in product variety, pricing, or store location.
• Sales and Marketing: Outline your strategy for attracting customers, such as through community engagement, social media marketing, or loyalty programs.
• Management Team: Highlight the experience and roles of your team, focusing on retail management, merchandising, and sustainable business practices.
• Operations Plan: Describe the day-to-day operations, including inventory sourcing, store layout, and customer service procedures.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and revenue projections.
• Appendix: Include supplementary documents like supplier agreements, market research data, or community partnership details to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to thrift stores. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your thrift store will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
• Benefit Corporation – A B-Corporation is a business of any entity type that has a social mission but can still make a profit. By passing rigorous standards and “meeting the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose” they can get a B-Corp certification from B Lab, a non-profit organization. Not all states recognize the B-Corp status. The B-Corp is taxed based on what type of entity it is. For example, a corporation that has B-Corp certification is taxed as a regular corporation.
• Non-Profit Corporation – A corporation that does not generate profits and works toward a social mission. The owners are not personally liable for debts. Funding comes from donations or fund-raising activities. 

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.  
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Friends and family can help fund your company either for a stake in the company or as a loan. It’s a good idea to have legal advice when doing so because SEC regulations apply.      
• Crowdfunding : Websites like Kickstarter offer an increasingly popular low-risk option, in which donors fund an entrepreneur’s vision. Other crowdfunding sites like Fundable and WeFunder allow you to invite multiple investors to fund your business for a stake in the company       
• Personal : Self-fund your business via your savings, or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a thrift store. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Thrift Store Business Licenses and Permits

Starting a thrift store business requires obtaining a number of licenses and permits from local, state, and federal governments. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account . Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your thrift store business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You can use industry-specific software, such as ConsignPro , AccuPOS , or MicroBiz , to manage inventory and sales.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Developing a website for your thrift store is a critical step in establishing your online presence and reaching a broader audience. Utilizing website builders like Shopify, Wix, or Squarespace is a convenient and cost-effective way to create a professional-looking site without needing extensive coding knowledge. These platforms offer customizable templates, which you can tailor to reflect your store’s unique personality and brand.

It’s important to optimize your website for both user experience and search engines (SEO), ensuring it loads quickly, is easy to navigate, and is mobile-friendly. Incorporating clear calls to action (CTAs) is essential; these could be prompts for visitors to sign up for newsletters, follow your social media, or check out your latest collection.

Opening a thrift store presents unique marketing opportunities to connect with your community and stand out. Here are some effective strategies:

• Social Media Engagement : Use platforms like Instagram, Facebook, and TikTok to showcase unique finds, store events, and promotions. Regular posts and engaging content can build a loyal following.
• Local SEO Optimization : Ensure your website and online content are optimized for local search engine results. This includes using local keywords, having a Google My Business listing, and ensuring your store’s name, address, and phone number (NAP) are consistent across the web.
• Community Involvement : Participate in local events, sponsor community activities, or collaborate with local artists and creators. This builds your brand’s presence and reputation within the community.
• Email Marketing : Collect email addresses at the point of sale or through your website. Send out newsletters with special deals, store updates, and featured items to keep your store top of mind.
• Customer Loyalty Programs : Implement a loyalty program to encourage repeat business. This could be a points system, discounts on future purchases, or special sales for returning customers.
• Local Directories and Online Listings : Get your thrift store listed in local business directories and online platforms like Yelp, TripAdvisor, or local chamber of commerce websites to increase visibility.
• Targeted Local Advertising : Consider using local advertising in community newspapers, radio, or local online forums and groups. Tailor your ads to the local audience to maximize impact.
• In-Store Events and Promotions : Host special events like vintage fashion shows, DIY upcycling workshops, or themed sale days to draw in customers and create a buzz.
• Collaborate with Influencers and Bloggers : Partner with local influencers or bloggers who align with your brand to reach a broader audience.
• Visual Merchandising : Make your store visually appealing and regularly change displays to keep the shopping experience fresh and engaging.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your thrift store meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your thrift store business could be: 

• Thrifty home goods that fit your budget
• Sustainable clothing that sustains your wallet
• Re-sale jewelry at rock bottom prices

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a thrift store, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the resale market for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in thrift stores. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a thrift store business would include:

• Sorters – sort and price items
• Store clerks – make sales if you have a physical store
• Marketing lead – SEO strategies, social media, other marketing
• Buyers – find items for re-sale

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Thrift Store – Start Making Money!

Thrift stores are great for the community and the planet, and your own store can be good for your bank account. It’s a nearly $11 billion industry and growing, so why not make money while doing a service for others? It’s fairly easy to start an online store, and you can do it for very little money. You can also start from home.

You could grow your business to include physical locations later. Now that you’ve read all about it and have all the information you need, you’re now ready to start your entrepreneurial journey and open your own thrift store! 

• Thrift Store Business FAQs

Yes, you can make money from a thrift store. While some operate as nonprofits and take donations, others are for profit. With an online thrift store, you can earn a high profit margin, as much as 80%.

Many re-sale stores extend offers to buy people’s used items and then re-sell them for a profit. You can also go to garage sales or estate sales to find quality items to re-sell.

Utilize social media platforms to showcase unique and desirable items, share styling tips, and engage with your audience. Offer special discounts or promotions for loyal customers or new visitors. Collaborate with local influencers, bloggers, or community organizations to generate buzz and attract new customers.

To ensure cleanliness and quality of items in your thrift store, establish strict quality control procedures. Implement a thorough inspection process for all items before they are placed on the sales floor. Regularly clean and organize the store to provide a pleasant shopping experience.

The profitability of a thrift store can vary depending on factors such as location, pricing strategy, quality of items, and target market. With careful selection of items, effective marketing, and efficient operations, thrift stores can generate a profitable income. 

Thrifting is popular worldwide, but certain regions, cities, or neighborhoods may have a stronger thrift store culture. Thrifting is often popular in urban areas with a diverse population, strong community involvement, and a sustainability-focused mindset. 

Curate a unique and diverse selection of items, focusing on high-quality and sought-after brands. Regularly update your inventory to provide a fresh and exciting shopping experience. Offer competitive pricing by carefully pricing items based on their quality, brand, or demand. Implement sales or discount programs for specific items or designated shopping periods.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Thrift Store Name
• Create a Thrift Store Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Thrift Store Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Thrift Store - Start Making Money!

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Sample Thrift Store Business Plan

Thrift store business plan sample.

Starting a thrift store business is essentially the same as starting any other business. However, the difference here is that you will be selling used merchandise at discounted prices. This niche of business has grown to be continually popular because shoppers are increasingly interested in what thrift stores have to offer.

It is a fact that thrift stores have presented shoppers with very good deals. Therefore starting a thrift store business can be exciting as it gets because you will never lack quality and affordable items which will always interest your buyers.

Another reason thrift store shopping has become very attractive is that it has a vast collection of items that range from clothing, furniture, glassware, tools, and several other collectibles.

However, we are interested in showing you how you can start a thrift store business. If you had an interest in this area of business, then this article will show you how you can make your dreams come true.

• Selecting a Niche

A thrift store business as earlier stated is a wide area that needs you to choose your particular niche which should be an area you are most interested in.

However, you can decide to start a general thrift store which involves selling a variety of products. Part of the reasons for choosing a niche or type of thrift store to operate is due to available competition. Before starting a thrift store business, you should scan your competition for goods on offer.

There are general-item thrift stores as well as those selling particular types of products such as used clothing, furniture, or baby items.

The results of your search would determine if you would prefer a general thrift store or choose a particular niche to sell. The choice is all yours to make. The decisions you make can determine how successful your thrift store turns out.

• Obtaining Registration and Licensing

Starting a thrift store business will require registration and licensing. For your business to be registered, you need to have applied for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This is especially relevant to businesses with employees.

This is also a requirement for payment of state taxes. Business licensing on the other hand largely depends on where you want to locate your thrift store as there are no uniform requirements for licensing. This is an important requirement for starting a thrift store business.

• Choosing an Outlet or Space

Depending on how well you are prepared, selecting a space is of utmost importance. There are faith-based thrift stores which are mostly located on church property. Most of the time, these are not ideal locations for attracting high patronage.

However, one of the advantages this type of outlet offers is that you are likely not to pay for rent. You must choose a space just about the size of what you intend to offer. This should be able to convey the right message to your clients.

That is, how you stock your thrift store with inventories will either portray a crowded store or a scanty store with little to offer. You should be able to strike a balance between these two options.

• Choosing the Type of Thrift Store to Operate

There are two types of thrift stores. These are the for-profit thrift stores as well as the non-profit thrift stores.

Each presents its opportunities as well as downsides. To make the right decisions that will align with your desires, you may want to seek the services of legal experts for interpretation of these models of business.

Although for-profit thrift stores allow for more control over how you manage and set profit margins, it is lacking in state-issued incentives such as obtaining tax-exempt status, as well as the availability of fewer low-interest loans and grants.

The non-profit thrift store model attracts government regulations which lead to having lesser control over how your business is run.

However, there are advantages to running this type of business as you are offered a chance to apply for low-cost rent or obtain the same for free. Other aspects of your business are also significantly subsidized. This includes adverts and marketing. However, you may not make as much as a for-profit thrift store.

• Hiring Your Workforce

This is a basic requirement you must consider. Although this may be a bit different for non-profit thrift stores as such can attract the services of volunteers, you must have people on the ground to help make running your business much easier. Sometimes the hiring process can be challenging especially when you handle such yourself.

To make the process a lot easier, take the burden off your shoulders by letting a professional hiring agency do the job for you. All you need to provide are your criteria for selection.

This step should not be overlooked for anything. Developing good marketing strategies as well as proper implementation create increased awareness about your business as well as what you offer. This significantly increases sales.

You must give this strategy all the attention it deserves as it can reward your efforts significantly. There are several marketing channels you can use to your advantage. These include the mainstream media as well as the new media which includes social media.

These are basic requirements for starting a thrift store which can be of immense benefit to you if properly implemented.

As simple as it may seem on the surface, starting a thrift store requires proper planning and diligence in its management to yield the much-desired results you wish to obtain.

THRIFT STORE BUSINESS PLAN EXAMPLE

Here is a sample business plan for starting a profit and non-profit thrift store business.

Starting a thrift store business is considered quite easy. This is because not much money is not needed to start one.

Goods that get sold in a thrift store are usually gotten from people that are clearing up their homes and want to dispose of things that occupy space unnecessarily.

This article contains a thrift store business plan sample. This will come in very handy for anyone that is looking to start a thrift store business.

GUIDE: Choosing A Thrift Store Name

Business Name: Loveday thrift store [ Resale Shop Business Plan ]

Executive Summary

Our Products and Services

• Vision Statement

Mission Statement

Business Structure

• Market Analysis
• Sales and Marketing Strategy
• Financial Plan

Competitive Advantage

Loveday thrift store Inc is a thrift store business that is located in Las Vegas . It is owned by the McDonald family and will be managed by Donald McDonald because of his wealth of experience in running this type of business. To get started, we have acquired a facility in a choice part of town. The newly acquired facility is large enough to fit into the idea of the type of thrift store business that we want to run.

Loveday thrift store business will make retail items such as clothing, books, furniture, kitchen equipment, etc. available to those that require them.

At the loveday thrift store, we are looking to run a business that will give our customers the best treatment possible. We have already devised a means of starting and maintaining a personal relationship with every potential customer that will patronize our store.

Loveday thrift store business is in the thrift store business to ensure that goods that are no longer needed in homes in the United States and beyond are made available to those that need them. In as much as no amount is needed to start this business, we are looking to make as much profit as possible from this business.

Some of the second-hand products that will be available to our potential customers include:

• Fairly used books
• Fairly used kitchen equipment
• Fairly used office equipment
• Fairly used sports equipment.

Vision Statements

Our vision at loveday is to be one of the most prestigious thrift store brands in the United States and beyond.

However, before becoming a force to be reckoned within the United States, we intend to win our immediate environment.

Our mission at the Loveday thrift store is to set up a thrift store business that will make top quality fairly used goods available to individuals that are residents of Las Vegas. We also intend to move from just Las Vegas to other parts of the United States.

Loveday thrifts store business is not going to end up like most thrift stores that are popular in Las Vagas. We at Loveday thrift store intend to build a business empire from a thrift store business. Although we are still a startup and cannot be reasonably compared to the many established thrift stores in Las Vegas and other parts of the United States, we are putting up the needed arrangements that will get us to the apex in this business rapidly.

To achieve our aim of becoming one of the top and most recognized brands in the thrift store business, we are going to hire honest and qualified individuals. We will ensure that the promotion and recognition of our employees are strictly on merit.

Market Analysis Market Trend

Although not everyone will be comfortable with buying used items, some don’t mind. One thing that keeps this industry running is the fact that a lot of people are looking for ways to save some money. The two major ways through which this is done is by selling used products and by buying used and cheap products.

More often than not, those that fall into the category of buying used goods are low-income individuals while high-income earners do the selling.

Target Market

It is a fact that one of the industries with the widest range of customers is the thrift store industry. We are certain that we can’t reach absolutely everyone. As a result of this, we have decided to settle for the following group of people

• Pregnant women
• Business executives
• Entrepreneurs

Sales and Marketing strategy

We are conscious of the fact that we have a lot of work to do if we must break into the market quickly. Due to this, we have come up with some strategies to make our potential customers aware of our presence. Some of them include;

• Good customer service
• Cheaper rates
• The sale of a wide range of products.

Financial Plan Source of Startup Capital

Although not much is need to start this business, we do not have all the capital that we require. This is because we intend to hire a facility in the heart of town that comes with a very large parking lot.

As a result of this, we will get a loan of $10,000 from the bank. With this, we can get the sum of $15,000 which is needed for this business.

The fact that starting a thrift store business does not require much capital increases the competition level in this industry.

Our way of beating our competition is by having a wide range of products and having a parking lot that can accommodate a lot of cars all at once.

This is a business plan sample for a thrift store. It is owned by the McDonald family and will be located in Las Vegas.

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of a thrift shop style clothing store while showcasing the expected financials and operations over the next three years. The Thrift Shop, Inc. (“the Company”) is a New York based corporation that will provide a number of different second hand clothing pieces to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

Thrift Shop, Inc. is a business that specializes in the retailing apparel that is vintage or has been used by other people (yet is still in outstanding condition). Through its store, the Company intends to sell a number of used men’s and women’s shoes, scarves, sweaters, belts, and other apparel. After the business begins its operations, the Company will launch an online ordering platform to generate sales on a nationwide basis. These additional sales will allow the business to reach profitability very quickly. The third section of the business plan will further describe the products offered by the Thrift Shop.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s Thrift Shop location. • Financing for the first six months of operation. • Capital to purchase a company vehicle. Mr. Doe will contribute $10,000 to the venture.

1.3 Mission Statement

The Thrift Store’s mission is to become the recognized leader in its targeted market for used and vintage apparel products.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals that enjoy vintage clothing within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Thrift Store, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Thrift Store requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Thrift Store, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Thrift Store. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the apparel products offered by the Thrift Shop.

3.1 Thrift Shop Products

The Company will actively sell and trade men’s and women’s used (and thrift) apparel to its retail clients. All of the Company’s sold apparel will always be of the highest retail quality as it relates to vintage clothing and used clothing. Management anticipates that the Company will be able to mark-up vintage apparel purchased inventory 65% of its actual cost.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the apparel and thrift shop industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until late 2010, at which point the economy will begin a prolonged recovery period. However, this should have a limited impact on the Thrift Shop’s ability to produce a positive income given the fact that many people (especially younger people) will continue to frequent these locations in order to effectively purchase highly valued clothing at a discounted price.

4.2 Industry Analysis

The direct retail sale of apparel (including in a thrift shop capacity) to the end user is a $150 billion dollar a year industry in the United States. This growth rate for this industry has been tremendous over the last ten years. Growth is expected to occur at a rate of 4% to 5% on an annual basis. Retail sales operations are a slightly riskier operation to maintain. This is due to the fact that there are significant costs in maintaining a high end retail location in an urban or upscale suburban market. There failure rate for these businesses is approximately 65% for the first five years of operations. Management is currently building a number of proprietary marketing and pricing models to help ensure the continued success of the Company. One of the most exciting areas of retail trade is the ability to have a virtual store online. Management fully anticipates that once retail operations commence, the Thrift Store will develop a streamlined method for our end user client. This will allow them to order, purchase, and make transportation arrangements without having to visit our retail location.

4.3 Customer Profile

The Thrift Store’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $30,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $100 per visit to the Thrift Shop.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Thrift Shop intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Thrift Shop.

5.1 Marketing Objectives

• Maintain a committed program for divesting the Thrift Shop’s inventories through online distribution channels.

• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Thrift Store to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Thrift Store will also use an internet based strategy. This is very important as many people seeking local services, such as vintage clothing stores, now the Internet to conduct their preliminary searches. Mr. Doe will register the Company with online portals so that potential customers can easily reach the Thrift Store business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the vintage apparel that the Company is selling. Additionally, the business will maintain extensive online distribution channels that allow the business to make divestitures of thrift store clothing on an online basis through by producing listings on eBay and Amazon.com. This will allow the business to maintain a nationwide distribution channel(s) that allows acquired inventories of thrift store clothing to be immediately sold among people within the United States and abroad. This is one of the key aspects to maintaining the profitability and cash flow of the business as the Thrift Shop progresses through its operations.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• The Thrift Store will have an annual revenue growth rate of 16% per year.

• The Owner will acquire $100,000 of debt funds to develop the business.

• The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. However, the high gross margins generated by the business will ensure that the business will maintain profitability despite deleterious economic conditions.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

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