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    2 Replies Latest reply on Jan 29, 2016 8:50 AM by SBC Team

    Help me decide if I am making the right decision

    debbieaa34 Adventurer

      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.

       

        • Re: Help me decide if I am making the right decision
          LUCKIEST Guide

          Welcome to the Community Debbie and first of all good luck.

          I am glad you got talked out of signing the lease (for now).

          Outside of this community, The people to talk to are SCORE.

          SCORE is FREE and is run by the government. YES FREE.

          SCORE is a national association provides advisory and small business mentoring.

          First thing - Contact by phone or computer. Yes they are on line.

           

          As far as a partner, go you have any friends or neighbors who might  want to partner with you.

           

          Good luck and keep the questions coming

           

          LUCKIEST

          • Re: Help me decide if I am making the right decision
            r.s. Adventurer

            Listen to your friends and relatives!!   I echo their advice completely.    A much better choice and surer way for you to make some $$ is eBay.   Go there and research how it is done.   Also look at the thousands of things being sold on there every day - and most at a profit.   You'll have no overhead other than a computer which I assume you already have.   You can (as many do) either sell what you have (clothing, unless it is new could be difficult) or (and this is where you can make a lot of $$ quickly) go to local thrift shops (Salvation Army is a good one) or garage sales/flea markets and buy underpriced items you can sell online for a profit.   I started just this way years ago by buying a quantity (Goodwill store and which I got a price break on) of new in the box countertop water filters which I sold online for a profit.   Done similar deals for many years now - you can even buy in bulk on eBay and part out individual items for a profit - many have built very large profitable businesses there.   Hope this helps.

            • Re: Help me decide if I am making the right decision
              SBC Team Guide

              Hi debbieaa34,

               

              R.S. gave you some really good advice.  We just wanted to follow up with you to see what you are thinking now.  Do you have additional questions?

               

              Thanks,

               

              SBC Team