[JAMEL]

What do I need to start a thrift store

[Fr_Chuck]

Please tell us what you mean by "thrift" store.

To me here in TN that is a old run down building selling used clothes and various ideas of junk.

[thriftybusiness]

I also have this same question. What I mean by a thrift store is a store that donates a percent of my income or not to a charity of some type. I want to accept donations and sell them..

Have you ever heard of Counsel on Aging? They have thrift stores and that is a perfect example of a thrift store to me.

Thanks to all in advance!

[Fr_Chuck]

You can set up a non profit organization, if it is not set up as a church you will need to get a IRS non profit status approved first.
Smaller Churches are automatically covered under the IRS nonprofit rules.

After you have a non profit status, you can take donations and sell them.
There will be rules as to what you can or can't do with the money since you are operating as a non profit.

There are some that buy from groups like the Salvation Army or Goodwill, they buy the clothes on pallet sales, often they get more clothes or the wrong types and they sell them by the pallet full. Also they sell a lot of larger items or bulk items at auction at larger centers.

You can accept things, but if you want to make the items a tax deduction for the people giving it, you will have to be tax exempt, not merely donating part of your money to a tax exempt.

There are several groups that have tried this, but I don't believe they will stand the IRS test for non profit. Not unless the agency specificly lists you and covers you under their non profit status,

[Jumokeajike]

Thank you everybody, what I mean is that I want to start a thrift store like salvation army. Do I need to buy a franchise or what do I do to start one?

[jessicadavid]

Step 1

Create a business plan for your thrift store. Decide whether you will sell a variety of items, or focus on selling antiques, vintage furniture, used clothing or other items. Consider whether your target market will be low-income families, affluent citizens in search of high-end vintage items or others. Visit or research other local thrift stores, determine who their target market is and whether they are meeting the needs of that market. Consider how you can differentiate your business from competitors through your inventory or prices. Make a list of supplies and assess how much money you will need to get your store off the ground. Give your business a name that sends an attractive message to your target market and encourages them to shop with you. Incorporate what makes your store original into your name. For example, if you will specialize in name-brand used clothing for less, try to get this idea into your business name.
Step 2

License and insure your business. Apply for a business license at your city clerk’s office. Insure your merchandise against theft and damage, and take out liability coverage in case customers sustain any injuries while in your store.
Step 3

Look for a great location. Search for rental spaces in areas that get a lot of car and foot traffic, especially those in areas where your target market is likely to live or shop. Look for a spot that has large display windows to display attractive items. Consider whether competing businesses are nearby: locating your business near competitors can be a pro or a con. Many thrift shoppers like to shop at several stores per trip, but make sure your prices and offerings are in line with competitors if you open nearby.
Step 4

Gather merchandise. Frequent yard sales, cheap thrift shops and estate sales to look for good deals on used items. Collect undamaged items from alleys and curbsides and fix them up before sale. Search online for wholesalers that may offer good deals on used clothing sold in bulk. Request donations and offer to pick them up from donors or create a donation drop-off at your store location if you’ve already moved in.
Step 5

Market your thrift store. Create fliers and business cards to distribute to potential customers you meet. Include the types of items you sell and emphasize what makes your store original. Tack up fliers on local bulletin boards near retailers where your target market is likely to shop. Plan a grand opening that will attract your clientele. A high-end vintage shop might hold a wine event as part of the opening; a shop specializing in used children's clothing might have games for kids to play. Display a sign-up sheet where potential customers can sign up for your mailing list. Email customers on a regular basis with coupons or inventory updates.