thrift shop business plan

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.

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What Is a 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

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.

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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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Other Helpful Business Plan Articles & Templates

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

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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. 

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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. 

Form Your LLC

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We recommend ZenBusiness as the Best LLC Service for 2023

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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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 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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How to write a business plan for your thrift store.

Starting a thrift store is a great way to reduce waste and support the local community.

It can provide affordable and sustainable clothing and household items to those in need, while also creating job opportunities and raising funds for local charities.

But, first thing first, you need to write a business plan.

A business plan is an essential step before starting any project, as it will provide a clear roadmap and goals for the project. Additionally, it can help to identify potential risks and opportunities associated with the project.

In short, a thorough business plan will help make sure your thrift store is profitable .

What are the essential parts of a business plan for a thrift store? How can it be presented clearly? Which performance indicators should be included in the financials? What's the best way to create a business plan quickly and effectively?

Good news, you can find all the answers to these questions in the forthcoming article!

Finally, please note that you don't have to start your business plan from scratch.

You can download our comprehensive business plan for a thrift store and adjust it to match your preferences.

Crafting a business plan for a thrift store

Is it worth considering a business plan for your thrift store.

Yes, you should consider creating a business plan for your thrift store.

Developing a robust business plan will enable you to:

• learn about the thrift store market
• be knowledgeable about the industry's latest trends
• highlight what makes a thrift store thriving
• understand the items and styles that attract customers seeking second-hand goods
• find a unique value proposition for your secondhand shop
• compare and contrast competitor offerings
• find competitive advantages for your thrift store
• find a business model that creates a path to financial viability
• develop and execute a comprehensive long-term action plan
• identify and manage risks related to inventory, pricing, and customer safety to operate a successful thrift store

Our team has created a business plan for a thrift store that is designed to make it easier for you to achieve all the elements listed.

How to outline a business plan for a thrift store?

Inside a business plan, you'll come across a lot of important information and details. There should be a clear structure, to make easy to read and digest.

When we built our business plan for a thrift store , we made sure it had a proper structure.

The content is arranged in 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

Explore this section to access comprehensive data and insights related to the thrift store business, enabling you to understand market trends and cater to budget-conscious shoppers.

We constantly update all the data there.

2. Project Presentation

In the "Project" section, you can outline your thrift store, highlighting the range of second-hand items you offer, such as clothing, accessories, furniture, and household goods, your commitment to sustainability, community impact initiatives, affordable pricing, and the unique value proposition that promotes sustainable and budget-friendly shopping options.

Also include a short description about yourself at the end of this section.

Explain your passion for sustainable fashion, your knowledge of thrifted items, and how you plan to create a unique and affordable shopping experience for customers. Highlight your commitment to offering quality second-hand items, your variety of clothing and accessories, and your dedication to promoting a circular economy by giving pre-loved items a new life through your thrift store.

We've composed text for you in our business plan. Tailor it to fit your idea exactly.

3. Market Research

Moving on, there's the "Market Research" section.

This section describes the target audience for your thrift store.

It includes a comprehensive analysis of competitors in the thrift store industry and emphasizes your store's unique selection of secondhand items and competitive advantages.

A tailored SWOT analysis is provided as well.

4. Strategy

Within the "Strategy" section, a 3-year development plan is outlined, specifying the necessary initiatives to make your thrift store highly profitable.

Furthermore, there is a marketing strategy for a thrift store, a way to manage risks, and a completed Business Model Canvas included in this section.

5. Finances

To summarize, you'll find the "Finances" section, which contains all the financial data and metrics related to your project.

How to write an Executive Summary for a thrift store?

The Executive Summary can be seen as a condensed overview of the business plan of your thrift store.

Don't surpass 2 pages; only include the necessary details.

It's the initial section that a bank will read when you bring them your business plan. It should make them interested and want to read the rest of the plan.

In the Executive Summary of your thrift store, answer these questions: what products do you sell in your thrift store? who is your target audience? are there other thrift stores in the vicinity? what makes your store special? what funding do you require?

How to do the market analysis for a thrift store?

Conducting a market study for your thrift store helps you grasp external factors like customer demands for second-hand items, competition within the thrift industry, and emerging trends in sustainable fashion.

By conducting an extensive market study, a thrift store can understand consumer preferences, offer affordable and unique secondhand items, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased sales, and a prominent presence in the local thrift market.

You'll discover the following in the "Market Research" section of our business plan for a thrift store :

• recent data and statistics about thrift stores, including secondhand clothing trends, sustainable fashion movements, and the growth of thrift shopping
• a list of potential customer segments for a thrift store
• the competitor study
• the potential competitive advantages for a thrift store

The key points of the business plan for a thrift store

What's the business model of a thrift store, business model of a thrift store.

A thrift store's business model revolves around selling second-hand clothing, accessories, furniture, or other pre-owned items to customers. Revenue is generated through product sales, potentially accepting donations or consignments.

The business model focuses on curating quality and unique thrifted items, providing exceptional customer service, creating an organized and inviting store environment, effective marketing to target thrift shoppers, and building strong customer relationships based on sustainable fashion and value.

Success depends on maintaining a steady supply of thrifted goods, delivering affordable and well-preserved items, fostering positive customer experiences and recommendations, and continuously adapting to customer fashion trends and preferences in the thrift market.

Business model ≠ Business plan

Don't confuse "business plan" with "business model."

A business model is a framework that demonstrates how a company operates profitably and adds value to customers.

In a business plan, you outline your business model employing a framework referred to as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a thrift store .

How do you identify the market segments of a thrift store?

Market segmentation for your thrift store involves dividing your potential customers into different groups based on their shopping preferences, style choices, and demographics.

These categories may include factors such as vintage clothing, second-hand furniture, home decor, or customers seeking specific thrift store experiences or items (e.g., designer brands, sustainable fashion).

By segmenting your market, you can offer a thrift store experience and product selection that caters to each segment's specific requirements. For example, you might focus on vintage clothing and offer a curated collection of retro and unique fashion pieces for customers seeking one-of-a-kind styles, provide a variety of second-hand furniture options for individuals looking to furnish their homes affordably and sustainably, specialize in home decor items and offer a range of vintage and upcycled decor pieces, or focus on specific thrift store experiences or items such as designer brands or sustainable fashion to cater to customers with specific preferences or ethical considerations.

Market segmentation allows you to effectively target your marketing efforts, create visually appealing displays, and provide a satisfying and eco-friendly shopping experience that meets the unique needs and preferences of each customer segment.

In the business plan for a thrift store , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for a thrift store?

Without surprise, you won't be the only thrift store in your area. There will be other second-hand stores offering affordable and unique clothing and goods to customers.

When crafting your business plan, it's important to assess your competitors in detail, considering their traits, strengths, and weaknesses.

Identify their weaknesses (such as poor clothing quality, inadequate inventory management, or lack of popular fashion trends).

Why should you focus on these elements? Well, these weaknesses can hinder the success of thrift stores. By addressing these aspects, you can offer a well-organized and diverse selection of secondhand items, provide affordable and budget-friendly prices, and deliver friendly and helpful customer service, positioning your thrift store as a preferred choice for thrift shoppers and environmentally conscious consumers.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a secondhand store: wide selection of quality secondhand items, affordable prices, eco-friendly shopping experience.

How to draft a SWOT analysis for a secondhand store?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of starting a thrift store, allowing for informed decision-making and a better chance of success.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a thrift store

The strengths for a thrift store

The "S" in SWOT symbolizes Strengths, highlighting the project's internal factors that give it a competitive edge.

For a thrift store, strengths could include offering quality merchandise at low prices, providing a wide selection of items, having knowledgeable staff, and offering convenient hours.

The weaknesses for a thrift store

The letter "W" signifies Weaknesses, which are the weak points of the project that need to be addressed.

For a thrift store, potential weaknesses could include limited selection, lack of marketing, limited customer service, and lack of financial resources.

The opportunities for a thrift store

O represents Opportunities in SWOT, referring to the external factors or circumstances that can offer growth opportunities for the project.

In the case of a thrift store, potential opportunities could include expanding into online sales, partnering with other local businesses, offering delivery services, and hosting special events.

The threats for a thrift store

The "T" in SWOT symbolizes Threats, indicating the potential risks or unfavorable factors that the project should be prepared for.

How to craft a marketing strategy for a secondhand store?

A marketing strategy is an important part of a business plan as it outlines how a business will attract customers and drive revenue.

A thrift store can attract bargain hunters and eco-conscious shoppers by developing an effective marketing strategy that highlights the store's affordable prices, diverse inventory, and commitment to sustainable fashion.

Shoppers won't visit your secondhand store without proper promotion; emphasizing the quality, affordability, and unique finds available is necessary.

Have you explored marketing approaches to attract customers to your thrift store? Consider organizing charity events or donation drives, collaborating with local fashion influencers or stylists for brand endorsements, and utilizing social media platforms to showcase unique finds and affordable fashion.

No need to worry if you have no understanding of marketing and communication.

How to build a solid financial plan for a secondhand store?

A comprehensive business plan requires a thorough analysis of financial data to ensure its success.

It is essential to include revenue forecasts for your thrift store.

To instill trust and confidence in potential investors, your business plan should have revenue projections that are reasonable and backed by sound assumptions.

Our financial plan for a thrift store is user-friendly, providing automated validations that allow you to rectify any assumptions swiftly. This guarantees the creation of credible projections with ease and assurance.

Of course, you will need to create a preliminary budget for your thrift store. Don't forget any expense (we have listed them all in our financial plan !).

A key aspect of your financial plan is the break-even analysis, which helps determine whether your thrift store will be profitable or not.

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How To Start a Thrift Store Business in 2023- The Ultimate Guide

Starting a thrift store can be lucrative as the thrift industry continues to boom. According to market analyst IBISWorld , the thrift store market grew by 2.4% in 2022.

Between 2017 and 2022 the market size in the U.S. has grown 0.9% per year on average, and younger consumers are driving the market growth – over 40% of resale apparel buyers are Gen Zers and millennials .

For instance, companies like Poshmark and ThredUp are experiencing tremendous growth by buying and reselling high-end fashion items. Such an unprecedented opportunity offers an excellent way for an ambitious entrepreneur to launch an online thrift store without a physical store’s startup costs and overhead.

You can profit by starting your thrift store, whether you focus on vintage clothing, furniture, or other items. However, opening a thrift store can be nerve-wracking, especially if you don’t know where to start. But don’t worry, we’re here to help! This ultimate guide will walk you through the information you need to know on how to start a thrift store business from scratch.

What Are The Steps to Starting a Thrift Store?

Before opening a thrift store, you, of course, must first do some preparatory work to set your business up for success. Here are the steps to follow before opening a retail thrift store.

Step 1: Create a Thrift Store Business Plan

As with any other business, the first thing to do before starting a thrift store is to create a business plan, including all the details and decisions about collecting your product, how many employees you will need, the most appropriate location, your marketing strategies , etc.

A business plan also helps potential partners and investors better understand your business and its vision. Since you may be starting this business without experience, you will need help writing a professional business plan. Be sure to include in it the following points:

Executive summary

• Mission statement
• Vision statement
• Sales forecasts
• 5-year profit forecast
• Potential expansion plan

Company summary

• Business structure
• Startup summary
• Startup cost

Products and services

• Inventory planning
• Supplier analysis
• Consignment vs Wholesale

Market analysis

• Market trends
• Marketing segmentation
• Target audience

Strategy & implementation s

• Sales strategy
• Marketing objectives
• Advertising strategy
• Pricing strategy
• Average salary of employees
• Number of staff needed
• Benefits and bonuses

Financial plan

• Important assumptions
• Break-even analysis
• Projected profit and loss
• Annual profit
• Annual gross margin
• Projected cash flow
• Projected balance sheet
• Business ration

Before writing your business plan, make sure you have chosen your niche so that you can write the elements of the plan accordingly and have a focused but broad enough target market.

Step 2: Register Your Business

Registering your business is an essential step in the process of opening a thrift store. It is a prerequisite for raising capital from investors, paying taxes, opening a bank account, or establishing your company’s business structure. Follow these steps to get started. And don’t forget to consult your local city hall, too:

Choose a business name and trademark it

Starting any business begins with the name. This is the most immediate thing that will set your thrift store apart from others. Make sure you choose a name that represents the identity of your business but is also memorable. After picking a name, you should trademark it to avoid any legal disputes down the road. 

To make sure the name you choose is not already in use by another company, consult the United States Patent and Trademark Office . You can trademark any intellectual property associated with your brand, not just the name.

Get your EIN

Also known as a Federal Tax Identification Number, EIN stands for Employee Identification Number and is used to identify a business entity. You will need it to open a merchant account, but also to proceed with other administrative procedures. You can obtain the EIN online on the IRS website . 

Choose your thrift shop business structure

There are several types of business entities, each with its advantages and disadvantages. The type of business structure you choose will determine your taxes, personal liability, and business registration requirements. Here are some of the types of business entities you can choose:  

1. Sole proprietorship

This is the most common type of business entity. It makes no legal distinction between the business and its owner. In this type of structure, the owner is responsible for all income, debts, or liabilities incurred by the business. The owner pays taxes on the business income on their income tax return. However, keep in mind that you will have difficulty accessing bank loans or capital from other investors if you register your business as a sole proprietorship . 

2. Partnership

A partnership is a business structure similar to a sole proprietorship but for two or more people. As with a sole proprietorship, the owners own the profits and are responsible for any losses. In addition, each partner pays taxes on their share of business income on their income tax returns.

  3. Limited Liability Company (LLC) 

Unlike a partnership or sole proprietorship, a limited liability company is a business structure that protects its owners from personal liability for its debts or liabilities. Their profits and losses are passed on to the members, who report their tax returns. The regulation of LLCs varies from state to state. Most thrift stores will fall under this category.

4. Corporation

A corporation is a legal entity that is separate from its owners. Under the law, corporations have many rights and responsibilities as individuals. They can sign contracts, lend and borrow money, sue and be sued, hire employees, own property, and pay taxes.

Step 3: Register for Taxes

Before paying taxes, you must obtain your Employer Identification Number or EIN. As aforementioned, this number will be helpful when filing other essential documents. 

Once you have your EIN, you must choose your tax year. From a financial standpoint, your thrift store business will operate on a calendar year (January-December) or a fiscal year, meaning a 12-month period that can begin any month. This selected period will end your tax cycle, while your business structure will determine the taxes you pay.

The IRS website also has a taxpayer checklist, and taxes can be filed online. It is advisable to consult with an accountant or other professional to help you with your taxes to ensure that you file correctly.

Step 4: Fund Your Thrift Shop

Knowing how to start a thrift store also means figuring out how to finance the projects listed in your business plan. Securing financing for your business is paramount, and there are several ways to raise capital:

Bank loans  

Bank loans are the most common form of financing for small and medium-sized enterprises. Bank loans are frequently used to finance start-up capital and also for larger, long-term purchases.

The loan is not flexible and may not be the best capital for businesses with fluctuating financial needs. And loan defaults can result in lower credit ratings, higher interest rates on existing and future loans, foreclosure of collateral, and legal proceedings against the company. The structure of the loan can also lead to long-term issues.

Sole proprietorships must be especially wary of large bank loans since your personal assets aren’t protected in the event of bankruptcy.

Business credit cards

Much like personal credit cards, business credit cards offer the ability to borrow up to a predetermined credit limit. At the end of each month, you must pay off the stated minimum balance, and any unpaid balance will begin to incur interest until it is paid off in its entirety. So you can avoid interest if you pay off your balance in full each month.

Unlike business loans, credit card providers generally use your income and personal credit score to extend credit, making it a viable option for businesses with little or no cash flow. This means you won’t have to provide your monthly or annual business income documentation. For most business credit cards, the minimum personal credit score is 670. However, a higher score will get you the best terms.

This route is also very risky and will come with very high interest rates.

Business Loans

It is usually difficult to obtain a traditional business loan, as many lenders require potential borrowers to have a minimum annual income to qualify for a loan. However, some lenders are willing to provide loans to start-ups without significant revenue. 

In the case of a new thrift store that does not yet have proof of annual revenue, commercial lenders may likely require additional documentation. In this situation, you are usually required to provide financial projections and a detailed business plan to illustrate your ability to repay your debts. 

Among the institutions that grant loans to start a thrift store business is the Small Business Administration (SBA), which acts as a guarantor, helping entrepreneurs obtain bank approval for a loan. The SBA has several types of loans depending on your budget, your needs, and your company’s size.

Step 5: Get Your Licenses/ Permits

No matter what business you start, there are permits or licenses that you must have in order to practice your profession or run your business without getting into trouble with authorities. If you want to run a thrift store , it is essential to know the licenses or permits that will be required:

1. General business license

A general business license is a license required before operating a business in almost every state in the United States. It is usually issued by the Department of Revenues and the Secretary of State, depending on the office responsible for business registration. Thrift shops, like any other, will require this.

2. Sales permits

A vendor permit, sometimes called a sales tax permit or sales and use tax permit, is a business license that allows you to collect sales tax on taxable goods and services. Your business’s responsibility is to send the collected tax to your state taxing authority.

3. Zoning permit

A zoning permit is a type of permit you need to have before operating your physical store. Since the thrift store business is a retail business, choosing the right location is critical to the success of your business. It should be your number one priority. However, if you want to build a retail store or lease a location for your business, obtaining a zoning permit is the first step.

4. Sign permit

A sign permit is another key item for many thrift shops. You can’t open a brick-and-mortar store without putting a sign on the storefront. However, any information about your business that needs to be displayed must be done lawfully. This information can be in the form of words, signs, symbols, or pictures to promote your business.

5. Wholesale license

As a retailer, you will often purchase your products in bulk from your suppliers. Wholesale licenses allow you to purchase items at wholesale prices and give you more credibility. You get specific discounts and other related benefits. Since business owners are exempt from paying tax on items purchased for resale, suppliers require you to show a wholesale license, hence the need to have one. Thrift store owners, however, may not have a need for this.

Most aforementioned licenses are the most obvious. Depending on your state, you may be required to obtain additional licenses or permits. Contact an attorney to assist you in the process. 

Step 6: Open a Business Bank Account  

Before you start earning money, you’ll need a place to keep it, which requires opening a bank account. Having your business finances separate from your personal account makes it easier to file taxes and track your business income. 

Opening a business bank account is very simple, just like opening a personal account. Just ask your favorite bank about their rates and features. They also offer accounts tailored to businesses.  

There are several banks that offer different options, so it’s a good idea to review your options and select the best plan for you. Once you’ve chosen a bank, all you need to do is bring the necessary documents to open a new account. 

Step 7: Invest in Technology

Technology is at the heart of effective retail management. And one of the essential tools in the industry is a great thrift store POS system. Choosing the best thrift store POS system for your business allows you to handle transactions within your store better control inventory management to avoid stockouts or excess inventory.

KORONA POS offers a robust thrift store POS platform with comprehensive inventory management software that tracks all operations taking place in your thrift store in real-time. Apart from the POS system, you should also have cameras in case of theft.

Step 8: Get Business Insurance

One of the aspects often overlooked when starting a business is the business insurance side. To be fully covered, a thrift store will need to purchase several types of insurance, including the following:

1. General liability insurance

This covers certain expenses such as medical bills or legal expenses in the event of a customer injury on the business premises.

2. Commercial property insurance

This covers items such as the cost of the building and the value of inventory in case of a fire or natural disaster damages the store.

3. Workers’ compensation insurance

This covers the business if an employee is injured on the job. It can cover expenses such as lost wages or medical expenses.

4. Business Property

It provides coverage for your equipment and supplies.

Ready to get started?

Speak with a product specialist and learn what KORONA POS can do for your business.

FAQs: The Thrift Store Business

Yes, it is possible to make money by opening a thrift store. Some online thrift store companies make a high-profit margin of 80%. 

The start-up costs to open a small thrift store can range from $20,000 to $30,000. Typical start-up costs include inventory, building renovation costs, employee salaries, furniture and fixtures such as shelving, counters, point of sale software, marketing budget, licenses, permits, etc. 

Yes, as with any business, you must obtain state and local licenses and permits to operate. As long as you are operating in a state, you will need a seller’s permit, for example. Check with your local government offices for requirements for further information. 

Thrift store suppliers include online sources, wholesalers, and thrift store communities. You can get your merchandise from online thrift store suppliers. You can also get them from yard sales, estate sales, and moving sales. 

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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.

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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Creating a Winning Business Plan for Online Thrift Store

AUG.03, 2023

1. What is an online thrift store business plan?

A well-crafte­d business plan is essential for e­stablishing and running a successful online thrift store. This plan outline­s the goals, objectives, and strate­gies that will guide the ve­nture. The online thrift store business plan pdf plan should include key considerations such as initial operational costs, marketing requirements, selling strategies, and an estimated budget. The offline thrift store business plan should also identify the target audience for the online store and the competitive landscape that the store will face. Additionally, it should provide a cle­ar timeline for when profitability is e­xpected and identify any pote­ntial risks that may arise. It is important to include a financial proje­ction in the plan. This projection should outline the­ anticipated annual revenue­ and expenses re­lated to operating the store­.

2. Why do we need an online thrift store business plan?

An online thrift store business plan sample is essential for any business looking to launch an online thrift store. Having a clear ecommerce business plan consultants is e­ssential for maintaining focus on your business objective­s and strategies. Deve­loping a plan is crucial for starting and expanding your business. It provides you with a cle­ar and comprehensive unde­rstanding of the necessary ste­ps that need to be take­n.

3. How to write an online thrift store business plan

When writing a business plan for the virtual online thrift store, start by thoroughly researching the industry and potential markets. Identify the target audience for the store and the associated competitors. Determine the sales and marketing strategy, and identify any potential operational and financial risks. Then, develop an estimated budget and timeline for profitability. Finally, include financial projections and forecasts by the e-commerce business plan consultants that include estimated revenue and expenses, as well as a general feedback loop that can be used to measure progress and success.

4. Executive summary

The Attic Shop CIC is a modern online store business plans shop where you can purchase clothing and other items at discounted rates. Efforts are made to make second-hand procurement sustainable, affordable, and accessible to all.

Similar to the e-commerce business plan sample , their mission is to provide you access to quality, gently used merchandise while being mindful of the environmental impact. Through their thrift store platform, they aim to make second-hand shopping fun, easy, and satisfying for shoppers of all clothing and budgets.

At The Attic Shop, they source their products from consignment stores and their own internal collection. They also offe­r a platform where you can sell your own use­d items, making it convenient and satisfying to shop while­ supporting the circular economy.

5. Company analysis

The mission of The­ Attic Shop is to make affordable, high-quality used me­rchandise available to people­ across the United States. They strongly be­lieve that second-hand goods have­ the ability to reduce pove­rty, minimize waste, and provide value­ to customers in their online store­ business model .

At The Attic Shop, our vision is to be­ the preferre­d thrift store in America, providing a diverse­ range of new and used ite­ms at unparalleled prices.

6. Structure and background

The Attic Shop is a private­ly owned business that focuses on offe­ring customers throughout the United State­s with high-quality used items.

We care­fully select our products from trustworthy suppliers, prioritizing local sourcing. This e­nsures that our customers can confidently purchase­ certified second-hand ite­ms that meet safety standards. The Attic Shop aims to be­ America’s top choice for secondhand goods, with a strong focus on e­xceptional customer service­, sustainability, and supporting those in need.

7. Market (industry) analysis

The thrift store industry is growing rapidly due to the increased interest in second-hand choices for goods. The growing tre­nd of waste reduction, coupled with the­ increasing costs of new items, has be­en a contributing factor to this growth. The thrift store­ industry is projected to maintain its competitive­ness and profitability in the next five­ years, with an estimated growth rate­ of 3.7%. By 2023, the se­condhand and resale market is proje­cted to reach approximately $53 billion, as pre­dicted by thredUP, an online marke­tplace for reselling ite­ms.

The growth of online­ thrift stores is primarily fueled by the­ advancements in technology that have­ made them more use­r-friendly, convenient, and cost-e­fficient compared to traditional retail store­s.

8. Competitor analysis

• ThredUp: ThredUp is an online­ consignment and thrift company where you can find clothe­s, accessories, and shoes at gre­at discounts. They collaborate­ with various thrift stores, consignment shops, and other ve­ndors that specialize in secondhand appare­l. This partnership enables custome­rs to access a vast online sele­ction of clothing options.
• Poshmark: Poshmark is an online marke­tplace for second-hand clothing and shoes, with a focus on wome­n’s fashion. They collaborate­ with various shops, including vintage boutiques, thrift, and consignme­nt stores, as well as luxury clothing rese­llers.
• Vinted: Vinted is an online­ thrift store that specializes in se­lling used clothing and shoes. They have­ a diverse range of options available­ for women, men, and kids, including clothing and accessorie­s. Additionally, they offer virtual styling service­s to help customers create­ their desired looks. One­ popular feature on Vinted is the­ir “bargain bin,” where shoppers can find gre­at deals on various items.

9. Products and services

The online thrift store business plan template will offer the following products and services:

• An array of pre-owned items, from clothing to furniture and antiquities
• A wide selection of books
• Comprehensive customer service and support
• An efficient delivery system
• An easy-to-use online shopping experience

10. Sales and marketing plan

This business plan template for an online thrift store section outlines the strategy for growing the online thrift store.

• Promotions: In the clothing store business plan, the company will aggressively market its thrift store using traditional media, such as print and radio advertising, as well as online promotional strategies, such as search engine optimization, online display ads, and social media campaigns. They will also leverage a network of affiliates to help spread the word about the store.
• Public Relations: They will seek out public relations opportunities to bolster the store’s reputation locally, such as sponsoring events, participating in charity drives, and being involved in the local community.
• Measurement: To measure the success of their promotional efforts, they will monitor website traffic, track online sales, and analyze the results of their online ad campaigns. They will also track customer satisfaction by surveying customers and monitoring customer reviews.
• Expansion: With successful measurements, the company plans to expand its online store into more markets, working with more partners and affiliates. Their ultimate goal is to dominate the online thrift store market.

11. Operational plan

The business plan checklist operational plan for the online thrift store business will cover the management of the online store, marketing, staff, delivery, and other operational aspects of running the online store.

Management:

A team of professionals with experience in online marketing, e-commerce, web design, customer service, and inventory management will manage the online store. The team will also handle customer relations, customer service, payment, and other operational aspects of the business.

The online thrift store will use online and offline marketing to reach its target audience. Online marketing will include email blasts, search engine optimization, content marketing, and social media marketing. Offline marketing strategies will include radio, print, billboards, and direct mail.

The online store will require a small staff team to help manage the store. The staff will include customer service representatives, inventory managers, and marketing staff.

The online store will use a third-party delivery service to handle the delivery of goods purchased from the store.

12. Evaluation/assessment

The busine­ss plan includes a comprehensive­ analysis of the market, identifying targe­t customer demographics, outlining the products and se­rvices offered, asse­ssing the competitive landscape­, detailing the organizational structure, de­scribing the marketing plan and operations plan. Additionally, it provide­s financial projections and estimated startup costs.

The busine­ss plan writers provide comprehe­nsive information about different aspe­cts of the online thrift store. This include­s its market positioning, differentiation from compe­titors, as well as donation acquisition and processing strategie­s.

The plan also e­xamines various sources of reve­nue, strategies for acquiring custome­rs, and ways to enhance user e­ngagement on the platform.

13. Management team

The management team for how to write a business plan for an online thrift store includes:

• CEO: Responsible for overseeing the business operations, developing and implementing strategies, and managing all day-to-day operations.
• CFO: Responsible for managing finances, handling customer payments, bookkeeping, and analyzing financial reports.
• Marketing Manager: Responsible for developing and executing marketing strategies, identifying new target audiences, and analytic tracking of customer segmentation data.
• IT Manager: Responsible for developing and maintaining the company website, keeping the technology infrastructure up to date, and providing customer service support.
• Purchasing Manager: Responsible for sourcing products, negotiating with suppliers, and managing inventory.

14. Projection and financial planning

• Start-up costs:
• Business registration and filing fees – $1,000
• Legal and professional fees – $2,000
• Website design and development – $3,000
• Systems development and programming – $2,000
• Marketing and advertising – $3,000
• Office supplies and equipment – $3,500
• Insurance and permits – $800
• Technology infrastructure – $4,000
• Facility rental/leases – $2,000
• Labor costs – $3,500
• Miscellaneous – $1,000

Total Start-up Costs – $25,800

2. Sales Projections:

Assuming a 20% commission on sales, the projected sales and corresponding revenue and profits for the first year are:

• Sales ($10,000/month): $120,000
• Revenue ($2,000/month x 20% commission): $24,000
• Profits ($24,000 – $25,800 start-up costs): -$1,800

3. Strategic Plan:

• Establish strong relationships with vendors for regular supply of inventory.
• Develop a user-friendly and engaging online marketplace.
• Create an effective marketing and advertising plan.
• Make use of data analytics to improve customer experience and marketing efforts.
• Strengthen relationships with existing customers and increase customer loyalty.
• Incorporate sustainable logistical solutions with a short turnaround time.
• Implement strategies to reduce wastage and maximize profits.

4. Financial Plan:

The financial plan for the business continuity plan consultants comprises the following components, which will be implemented to achieve the desired financial targets:

• Establish a line of credit and secure investors for additional capital.
• Monitor cash flows, reduce costs, and reduce operational expenses.
• Leverage digital and technological solutions to reduce manual work and increase efficiency.
• Reduce inventory waste and optimize inventory turns.
• Set up clear accounting systems with bookkeeping and audit procedures in place.
• Utilize funds productively and reinvest profits wisely.
• Monitor financial performance closely and maintain up-to-date financial records.

15. Discover True Value: Welcome to OGS Capital, Your Trusted Source for a Successful Online Thrift Store

If you’re an aspiring e­ntrepreneur aiming to launch a succe­ssful online thrift store, creating a solid busine­ss plan is crucial. With over a de­cade of expertise­ in developing tailored busine­ss plans for online thrift stores, OGS Capital business plan writers has successfully supporte­d numerous entrepre­neurs in realizing their goal of owning and ope­rating thriving enterprises.

Our skilled consultants provide­ tailored business plan service­s to assist you in navigating the startup process and optimizing your investme­nt. No matter the­ size or scope of your online thrift store­, we have the se­rvices to meet your spe­cific needs and goals. Whethe­r you’re starting small and focused on a local market or planning to e­xpand nationwide, our comprehensive­ solutions are tailored for your success.

Let us assist you in translating your vision into a tangible­ plan that will serve as your roadmap throughout each ste­p of the process. OGS Capital understands that e­very client has unique goals and obje­ctives. That’s why our team of expe­rienced professionals will work close­ly with you to create a personalize­d business plan tailored specifically to your ne­eds. We’ll collaborate on de­veloping strategies that are­ solid and effective, e­nsuring your success in this competitive marke­t.

Q. Can thrift resellers make money?

Absolutely, thrift re­sellers can indee­d make money. They achie­ve this by purchasing items from thrift stores such as Goodwill, Salvation Army, or othe­r second-hand shops and then rese­lling them on platforms like eBay, Amazon, or the­ir own online stores. Some re­sellers focus on brand-name ite­ms or vintage clothing and are able to turn a profit by acquiring the­se pieces at a lowe­r cost and subsequently selling the­m for higher prices.

Q. How lucrative is the online thrift store business?

The online­ thrift store industry offers a promising opportunity for businesse­s to thrive. As more consumers se­ek affordable deals on pre­-owned items, the de­mand for online thrift stores continues to rise­. In fact, projections from Crunchbase predict that the­ global market for online thrift shopping will reach a stagge­ring $84 billion by 2025. With such potential for growth and profitability, it’s easy to see­ why this industry is becoming increasingly attractive to se­llers. Download Online Thrift Store Business Plan in PDF

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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How to write a business plan for a online thrift shop?

Creating a business plan for a online thrift shop is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a online thrift shop business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a online thrift shop?

What information is needed to create a business plan for a online thrift shop.

• What goes in the financial forecast for a online thrift shop?
• What goes in the written part of a online thrift shop business plan?
• What tool can I use to write my online thrift shop business plan?

Having a clear understanding of why you want to write a business plan for your online thrift shop will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a online thrift shop business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your online thrift shop is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your online thrift shop, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your online thrift shop's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed online thrift shop business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your online thrift shop has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a online thrift shop, let's take a look at what information is needed to create one.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing a online thrift shop business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a online thrift shop

Carrying out market research before writing a business plan for a online thrift shop is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You may discover that online thrift shoppers are increasingly looking for sustainable fashion, as they become more aware of their environmental impact. Additionally, you could observe that customers may be seeking out unique items, as they desire to stand out from the crowd with their fashion choices.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your online thrift shop.

Developing the sales and marketing plan for a online thrift shop

As you embark on creating your online thrift shop business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a online thrift shop

Whether you are at the beginning stages of your online thrift shop or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

The staffing costs for an online thrift shop might include wages for employees to manage the website, such as web developers and customer service representatives. The shop might also need to pay for additional staff to manage the physical store, such as sales associates and stockers. The equipment costs might include computers and other necessary hardware for the website, as well as shelving and other supplies for the physical store.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your online thrift shop.

What goes into your online thrift shop's financial forecast?

The financial forecast of your online thrift shop's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a online thrift shop are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a online thrift shop shows how much revenue and profits your business is expected to generate in the future.

Ideally, your online thrift shop's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established online thrift shop. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your online thrift shop

The projected balance sheet of your online thrift shop will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your online thrift shop projected balance sheet provides an understanding of your online thrift shop's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your online thrift shop's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The projected cash flow statement

A cash flow forecast for a online thrift shop shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your online thrift shop business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a online thrift shop.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the online thrift shop, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your online thrift shop business plan, let's have a look at the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a online thrift shop business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a online thrift shop business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your online thrift shop's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your online thrift shop, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your online thrift shop's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your online thrift shop, you could emphasize the potential for growth in the region. You could discuss the potential customer base that may be interested in purchasing secondhand goods, as well as the potential for marketing opportunities, such as through digital and social media channels. You could also discuss the potential for local partnerships that could help to boost the shop's visibility and reach. Lastly, you could discuss the potential for an increase in foot traffic in the area that may be generated by the shop's presence.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your online thrift shop business plan should include a detailed description of what your company sells to its customers. 

For example, your online thrift shop could offer customers a wide selection of used clothing, shoes, and accessories at discounted prices. It could also offer customers a convenient way to donate their gently used items, as well as free shipping for orders over a certain dollar amount. Finally, it could provide customers with a virtual “try-on” feature, allowing them to get a better sense of how the items they’re buying will fit.

The reader will want to understand what makes your online thrift shop unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When you present your market analysis in your online thrift shop business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your online thrift shop, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your online thrift shop aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include young professionals looking to save money on high quality clothing. These customers are interested in finding stylish clothing at a fraction of the cost of what they would normally spend. They are looking for trendy looks that will help them stand out from the crowd without breaking the bank.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your online thrift shop.

5. The strategy section

When crafting the strategy section of your business plan for your online thrift shop, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your online thrift shop could be subject to cyber attacks, in which malicious actors might try to gain access to your store's information. This could put your customers' personal information at risk, as well as your financial information. In addition, your online thrift shop could face the risk of legal action. This could happen if a customer believes you have not fulfilled your contractual obligations, or if your goods or services do not meet their expectations. This could have a detrimental impact on your business and could require expensive legal representation.

6. The operations section

The operations of your online thrift shop must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your online thrift shop's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You may have key assets such as a website, payment processing system, and customer database. Other key assets could include customer reviews, a social media presence, and a strong customer base. With regards to IP, the online thrift shop might have a trademarked logo, unique design elements, or a specific mission statement. They could also have copyright protection for any content they produce such as images, videos, and articles.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a online thrift shop business plan, let's look at some of the tools you can use to create yours.

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

There are two main ways of creating your online thrift shop business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your online thrift shop's business plan

Using online business planning software is the most efficient and modern way to write a online thrift shop business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your online thrift shop's business plan

Outsourcing your online thrift shop business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your online thrift shop business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your online thrift shop's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a online thrift shop business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my online thrift shop business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a online thrift shop business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your online thrift shop and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your online thrift shop business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a online thrift shop? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

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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Moscow International Business Center (Moscow City)

• Guide to Russia

What can you do at Moscow City?

• Dine in style: Moscow City is home to 100+ cafes and restaurants, including Europe’s highest restaurant and ice-cream shop
• See Moscow like never before: Ascend to one of Moscow City’s observation decks for an unparalleled panorama of Moscow
• Admire world-class architecture: Each of Moscow City’s skyscrapers has distinctive architecture and design
• Learn something new: Visit the Museum of High-Rise Architecture in Moscow or the Metro Museum

Moscow City is a multifunctional complex in the west of Moscow, which has come to represent the booming business of Russia’s capital. Its skyscrapers enrich Moscow’s skyline, contrasting the medieval cupolas and Stalinist high-rises. Visitors to Moscow City can enjoy entertainment high in the sky, as the complex is home not just to offices, but to restaurants, cinemas, viewing platforms, and museums.

Photo by Alex Zarubi on Unsplash

History of Moscow City

Moscow City was first conceived in 1991 by honoured Soviet architect Boris Tkhor, who proposed to construct a business center in Moscow. It would be complete with gleaming skyscrapers rivalling those of New York and London, to reflect the new life and growing ambitions of post-Soviet Russia.

The chosen site was a stone quarry and disused industrial zone in western Moscow, in between the Third Ring Road and Moskva River. Initially, the territory was divided into 20 sections arranged in a horseshoe shape around a central zone. The skyscrapers would increase in height as they spiralled around the central section, with shorter structures built on the waterfront to give the taller buildings behind a view of the river. 

Architect Gennady Sirota, who contributed to iconic projects such as the Olympic Sports Complex on Prospekt Mira, was selected as the chief architect, and many other world-famous architects were attracted to Moscow to realise their visions in Moscow City.

What can you see and do at Moscow City?

Where Moscow’s cityscape was once dominated by Stalin’s Seven Sisters skyscrapers , this is no more. Moscow City is home to eight of Russia’s ten tallest buildings, six of which exceed 300 metres in height. More buildings are still under construction there today, including the One Tower (which will be Europe’s second-tallest building). Once completed, Moscow City will comprise more than 20 innovative structures.

Each of Moscow City’s skyscrapers was designed by its own architect, lending the cluster of skyscrapers a unique appearance. Aside from being a site of architectural wonder, Moscow City is a place for leisure and entertainment with over 100 cafes and restaurants, exhibition spaces, cinemas, viewing platforms, and more.

Photo by Nikita Karimov on Unsplash

Federation Tower

• East Tower: 374m, 97 floors; West Tower: 243m, 63 floors
• Completed in 2017
• Architects: Sergey Tchoban and Peter Schweger

The East Federation Tower is the tallest building in Moscow, and the second-tallest building in Europe after the Lakhta Centre in St Petersburg. Visitors can enjoy a luxurious meal of seafood, truffles or steak at restaurant ‘Sixty’ on the 62nd floor of the West Tower, or visit Europe’s highest observation deck, ‘Panorama 360’, on the 89th floor of the East Tower.

Did you know? The ice cream and chocolate shop on the 360 observation deck are the highest in the world!

• South Tower: 354m, 85 floors; North Tower: 254m, 49 floors
• Completed in 2015
• Architect: Skidmore, Owings & Merrill LLP

The South OKO Tower is the third-tallest building in Russia and Europe. Here, you can visit ‘Ruski’ to dine on hearty Russian cuisine cooked on a real Russian stove, and have a drink in the ice bar. Alternatively, visit restaurant, nightclub and performance space ‘Birds’; the restaurant is the highest in Europe, situated on the 86th floor roof terrace alongside an observation deck. The OKO Towers are also home to karaoke club ‘City Voice’.

Did you know? Underneath OKO Towers is the largest underground parking in Europe, with 16 levels and 3,400 parking spaces.

Mercury Tower

• 339m tall, 75 floors
• Architects : Mikhail Posokhin, Frank Williams, Gennady Sirota

Another multifunctional skyscraper, which was designed as the first truly ‘green’ building in Moscow. The Mercury Tower has a distinct geometric shape and copper-coloured glazing, and was the tallest building in Europe upon completion. Visit ‘More i myaso’ (Sea and meat) on the first floor of the tower to enjoy European and Mediterranean cuisine whilst surrounded by greenery. On the 2nd and 40th floors a modern art gallery, the ‘ILONA-K artspace’, has just opened.

City of Capitals

• Moscow Tower: 302m, 76 floors; St Petersburg Tower: 257m, 65 floors
• Completed in 2009
• Architect: Bureau NBBJ

The unique geometric design of the City of Capitals towers resembles stacks of rotating blocks, and is rooted in Constructivism of the early Soviet period (many Soviet Constructivist buildings can be found in Moscow). Visitors to the Moscow Tower can enjoy a range of cuisines – traditional Italian dishes on the summer terrace of ‘Tutto Bene’, Panasian cuisine in the tropical luxury of the ‘Bamboo Bar’ on the 1st floor’, and poke or smoothie bowls at ‘Soul in the Bowl’ cafe on the 80th floor.

Tower on the Embankment

• Tower A: 84m; Tower B:127m; Tower C: 268m, 61 floors
• Completed in 2007
• Architects: Vehbi Inan and Olcay Erturk

After completion, the Tower on the Embankment was the tallest building in Europe, and is now the 13th tallest. It houses the headquarters of several large Russian and international  companies, including IBM and KPMG. There are two cafes located on the 1st floor of Tower C – self-service café ‘Obed Bufet’ (Lunch Buffet) and Bakery Chain ‘Khleb Nasushchny’ (Daily Bread).

Evolution Tower

• 255m tall, 54 floors
• Architects: Philip Nikandrov and RMJM Scotland Ltd

Evolution is Moscow City’s most recognisable tower, and the 11th tallest building in Russia. Its façade is a true architectural marvel, comprising continuous strips of curved glazing spiralling high into  the sky. According to the architect, Philip Nikandrov, the spiral shape of the tower honours centuries of architectural design in Russia, from the onion domes of St Basil's Cathedral to Vladimir Shukhov’s Tatlin Tower, a masterpiece of Constructivist design. Outside the Evolution tower is a landscaped terrace and pedestrian zone descending to the Presnenskaya Embankment, which was also designed by Nikandrov.

Did you know? Moscow’s largest wedding palace was supposed to be built on the site of the Evolution tower, though the project was abandoned.

• 239m tall, 60 floors
• Completed in 2011

Imperia’s interesting design has a curved roof and an arched glass façade. Inside the tower are various cafes including ‘City Friends’ for all-day breakfasts and light lunches, ‘Mama in the City’ for simple meals of Russian cuisine, and ‘abc kitchen’ for European and Indian-inspired dishes. Alternatively, visit ‘High Bar’ on the 56th floor for cocktails with a view. In Imperia you’ll also find the Museum of High-Rise Construction in Moscow (suitably located on the 56th floor), and the Camera Immersive Theatre.

Did you know? Inside Vystavochnaya metro station is the Metro Museum , dedicated to the history of the beautiful Moscow Metro!

• 130m tall, 26 floors
• Completed in 2001
• Architect: Boris Tkhor

Tower 2000 was Moscow City’s first tower. It stands on the opposite bank of the Moskva River, and houses a viewing platform from which visitors can admire an unparalleled panorama of Moscow City. The Bagration Bridge reaches across the river from the tower to Moscow City, and underneath are piers from where you can take boat trips.

Photo by Alexander Popov on Unsplash

Afimall is Moscow’s largest entertainment and shopping complex, home to 450 shops, cafes and restaurants, a cinema, and a virtual-reality game park. The shopping centre is located in the central section of Moscow City, and a cinema and concert hall are currently under construction there.

What’s nearby?

Sechenov Botanical Gardens: The botanical gardens of the First Moscow State Medical University was created for students’ training and research in 1946. Today it is open for free visits, and is home to a large arboretum.

Park Krasnaya Presnya: This park belonged to the Studenets estate of the Gagarin princes. It is a monument of 18th and 19th century landscaping, with Dutch ponds, ornate bridges, and tree-lined alleys. There are also sports facilities, sports equipment rental, and cafes.

Photo by Akkit  on Wikipedia

Essential information for visitors

Website: https://www.citymoscow.ru/

Email: [email protected]

Phone: +7 (495) 730-23-33

Nearest metro: Mezhdunarodnaya (closest to the skyscrapers), Delovoy Tsentr (underneath Afimall), Vystavochnaya (closest to Expocentre)

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Moscow - St. Petersburg 3-star cruise by Vodohod

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Explore nearby places

• Likino-Dulevo
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• Rumyantsevo
• Dzerzhinsky
• Sovkhoz Imeni Lenina
• Dolgoprudny

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Moscow throughout the year

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Looking for day-by-day itineraries in Moscow?

Get inspired for your trip to Moscow with our curated itineraries that are jam-packed with popular attractions everyday! Check them out here:

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Best attractions in nearby cities

• Top things to do and attractions in Khimki

Best restaurants in nearby cities

• Where to eat: the best restaurants in Mytishchi
• Where to eat: the best restaurants in Khimki

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