Owning a business can be a fulfilling experience. Of course, the chance of earning more than a regular salaried job is often one of the reasons that a lot of people cite for choosing to become an entrepreneur but apart from that a sort of autonomy comes into play. You are the owner of the company and you are working and earning for yourself. If you are looking to start a business and are searching for ideas then why not look into starting a liquidation reselling business. If done right, the business can be quite profitable. You can buy liquidation pallets that have quality stocks and sell them to customers. But the question is how do you go about it. Well, that’s what this post is all about.
Steps to Start a Liquidation Business
- Have a Plan
Do not jump in without a plan. It is not easy to open a business and start making a profit. But it is methodical. If you can draft a strategy that has all the details necessary to reach your goal then it would be quite good. Your efforts will be much more focused and the results you will receive will be optimal. The plan needs to be flexible as well. The more experience you gain the more knowledge you will have and you can use it to improve the plan.
- Ensuring All the Documents are In Order
The next step is the legal step. You cannot randomly start buying and selling products to consumers. The government needs to know about it. It is illegal to establish an enterprise and sell items without proper documents. The first license that you need to apply for is the trade license. This is the basic license that all traders and business owners need to have to sell products. In the liquidation business, you will be reselling merchandise which is why you need another license on top of your trading license which is a reseller license. Once you have these two documents in order you are ready to go further.
- Finding a Product or a Category of Products
The next step is to select a product that you know about. The reason we mention “know about” is because you need to know whether the items you are getting are of good quality or not. You have to know whether you can sell that item or not. If you have been working as an electrical engineer then reselling engineering tools can be a good thing since you will often know about them and could discern their quality and market price. If you don’t have much idea about anything then pick something that you know there’s a market for and learn about it. Once you have good knowledge about the product/s you are going to sell you can move to the next step.
- Finding the Right Source
Finding the right source to buy liquidation stocks is very important because you need quality products that you can sell to make a profit. Many liquidation companies pick up returns, overstocks, shelf-pulls etc. from big retailers and then sell them to liquidation retailers like you. There are many companies to choose from. You can directly buy liquidation pallets or participate in auctions to get a pallet at a good price. Quicklotz, Bstock, Bluelots, 888 Lots are some of the companies that you can check out. Some liquidation companies will let you check out their stock offline. You can drive to the warehouse and inspect the merchandise and products. So, depending on your preference, choose a decent source.
- Figuring Out Where to Sell
Now that you have figured out a place from where you can buy your liquidation merchandise it is time to find a way to sell them to consumers. Today, it has become much easier to sell products to consumers via the internet. So, if you want you can set up an online store and promote it on social media platforms. You can even go the traditional way and sell the products in an offline store. If you feel that you can sell products to people in and around your area then opening an offline store can be beneficial. You can also have both an online store as well as an offline store to sell liquidation merchandise. But if you are looking for a low-cost option then opening an online store can often be a much better choice.
So, these were some of the steps that you need to take to open a basic low-cost liquidation reselling business. The market is saturated and it may feel as if no one will buy from your store but the right promotion can often work in your favour. So, we suggest being patient and keeping at it. We wish you all the best.