I was wondering if you had someone that I could ask a business question to. I am not even sure that I am in the right place. I was looking into starting a small business in Malvern, AR. It would be a resale shop selling mainly children’s clothes and toys, some women’s clothes, maybe household items, and a few tools,etc... The rent for the building would be $400 per month for 1500 square feet which is very cheap and only because the man is having trouble renting it out. It would be a six month lease. I apparently somehow had a case of “hoarders” and I have a 12x24 storage unit full of stuff that is mainly baby/children’s clothes and toys and a few other items. It is not all name brand items but it is a large bulk of items that I own outright and that I am willing to sell cheap or reasonably. I was going to use that before I started taking any consignment. I have a single mom with two kids. I do not have any income except a slight amount of child support. I very stupidity did not finish college and my last job was at Walmart making $7.85 an hour. By the time that I paid taxes and child care and gas, I don’t think that I brought in more than $10 per day. I recently had a baby. Rather than find another dead end job or two that pays nothing, I decided to use the small amount of money that I worked very hard at saving and also some tax money to open this resale shop. It seemed like a great idea to me but it has been met with a lot of backlash for several reasons.
I was ready to sign the lease today but I was talked out of it by my ex and my friends and my parents. They say that I am wasting the few thousand dollars that I have and that its unrealistic to think that a small resale shop---especially one mainly selling kids clothes—will ever make it. They say there are other resale shops in this city that have shut down—which is true—but there are also three of them that have made it for years now. The city has a population of about 10,000, I believe.
Can you please tell me if I am being unrealistic and, if the bills to the business add up to about $800 per month ($400 rent, $150 electric, $50 water, $50 insurance, $50 trash, $100 miscellaneous), if I should be able to make enough income selling stuff to make the business work. How long does it take a business to start making money? Will the few thousands dollars that I have last until the business gets going?
Also, if I was to find a partner for the business that would help do half the work and pay half the start-up fee and also take half the income, how would I do something like that? I have no idea how to find a business partner—especially one with a little cash. Is that even a good idea for such a small business? Would it make enough income for both of us? Thank you in advance for any advice that you can give me.