Second-hand clothes shop

Budget-minded families, students, parents buying fast-growing kids' clothes, and shoppers who like second-hand for style or environmental reasons.

You sell items at a markup on what you paid for them. Stock comes from buying direct from sellers, or from consignment, where you split the sale price with the owner.

• Spotting quality and good brands
• Pricing stock sensibly
• Customer service
• Basic bookkeeping and stock tracking

• Lease terms, bond and fit-out costs, so read the lease carefully before signing
• Public liability and contents insurance
• You need an ABN, and GST registration is required once turnover reaches the threshold
• Consignment arrangements need clear written terms on payouts and unsold items
• Check that clothes are clean and in good condition, and handle any returns fairly under Australian Consumer Law

Startup costs are typically estimated at around $12,000 to $50,000, depending on the shop size, lease bond, fit-out and how much stock you buy upfront. Read the lease carefully before signing.

Monthly revenue is typically estimated at around $4,000 to $18,000, depending on location, stock quality, pricing and how often you refresh the racks. Estimates assume about 35 hours a week or more.

Check lease terms, bond and fit-out costs, and public liability and contents insurance. You need an ABN, and GST registration is required once turnover reaches the threshold. Also check consignment terms, stock condition and returns under Australian Consumer Law.