by Leah and Elina Furman Published September 29, 1997 Read more Small Business Brainstorms	Who says you only go around once? By taking the second-hand store route, you can breathe new life into bygone fashions and resuscitate your finances. Just because grunge has gone the way of the powdered wig doesn't mean that retro chic has lost it's hold over pop culture. Look around. The runways are chock full of '80s regalia. The resurgence of Hush Puppies and Candies are just a taste of what's in store. Window displays are lined with threads pulled straight off of Charlie's Angels. Hip huggers, platforms, halter tops and stringy tee's...relics of the seventies? No longer. Young trend-setters and big name designers alike are recycling styles like there's no tomorrow. Secondhand stores have been flourishing since the recession of 1989. So, while you're a bit late to get in on the ground floor of the resale action, the market is nowhere near the point of saturation. You'll provide an invaluable service to the fashion-conscious and penny-wise by supplying today's looks at yesterday's prices. Even though the economy is looking up, bargain hunters show no signs of slowing down. In short, there's still a bundle to made in thrift. Raking in the Dough Of course, before you fish through the piles of castaway duds, you'll want to know what manner of profit you stand to net. The first several months will be a struggle, but once you pull through, you're well on your way to drawing anywhere from $30,000 to $120,000 per year.
Even if you buy out the entire store, you still won't have exceeded your credit limit.	Start-Up Costs and Financing: As stocking your shelves will cost next to nothing, you won't need to break the bank trying to pay your suppliers. Thrift/consignment store start-up costs are some of the lowest around. In fact, you can begin operating on as little as $1,000. And even if you do go all out, you'll find yourself hard pressed to spend more than $15,000. Opening a thrift shop is much like shopping at one — even if you buy out the entire store, you still won't have exceeded your credit limit. Trade Associations: Joining forces with others in your field can prove a great boon to business. As a newcomer to the game of thrift, you'll benefit to no end from getting in touch with those who have weathered the storms of the biz. National Association of Resale & Thrift Shops (NART): 800-544-0751; 20331 Mack Avenue, Grosse Pointe Woods, MI 48231 National Retail Federation (NRF): 212/551-9260; 100 West 31st Street, New York, NY 10001 Market Research & Selecting a Location: R If you've heard it once, you've heard it a thousand times — location, location, location!!! Proximity to foot traffic, parking and other secondhand stores is a good indicator of future success. The nature of bargain hunting is store-hopping, so don't worry about the competition. Instead of muscling in on your sales, other thrift shops in the area will actually expand your clientele.
Keep in mind you're in retail, not in the rummage sale business.	If you choose your site wisely, a little market research will go a long way. Pile a few bags of old duds into the trunk of your car and head on over to the site of your new store. Offer your wares to the neighborhood shops, and make sure to check out their consigners contracts and merchandise prices. This thorough investigation should be all the market research you need to get your own enterprise underway. License and Insurance: Unless you want to be up to your neck in paper work, contact an accountant and a lawyer to sift through the ordinances and fine print. There will be plenty of business licenses, tax permits, and contracts to keep your hired guns busy. If, on the other hand, you don't have the capital to pay these pros, contact the local Chamber of Commerce for information on how you can handle these pesky technicalities yourself. Design and Equipment: First things first: Before you send out the call for old clothes, you should consider where you're going to put them. Since you're not in the rummage sale business, hangers and racks are a good place to start. Price tags may also prove useful. Keep in mind that yours is a retail establishment. You will therefore require the services of a cash register and a computer to keep track of accounts. When it comes to apparel, mirrors and dressing rooms are the name of the game. A full-length mirror and a good lightbulb will transform any closet into a star-quality changing area. If all you have is an alcove, hang up a velvet curtain and voila! — a dressing room is born.
WEB RESOURCE: U.S. Small Business Administration Online A terrific resource with information about the Small Business Act, tips on starting and financing your business, local resources, and much more.	Of course, you'll not want to leave your store bare of that certain something known as panache. Paint the walls a rich color. Consider using steel wool to give them that popular aged look. Look around some antique stores for inexpensive wood shelves, cabinets, and lighting fixtures. Attend a starving artists' sale or raid the walls of your fave coffee shop for dirt cheap art. Low cost and high quality can peacefully coexist — let your decor say it all. Last but not least, you'll need a kick-ass sign and window display. Never underestimate the importance of a fetching facade. If your sign is clever and eye-catching, and your window showcases your most stellar products, your shop is sure to take first place on every bargain hunter's hit list. Leah and Elina Furman are freelance writers living in Chicago, and are the authors of The Everything After College Book, to be released by Adams Media in the fall of '97. Leah and Elina invite readers to visit their homepage at members.tripod.com/~ElinaF. © 1997 Leah Furman and Elina Furman. All rights reserved.