Second-hand clothes shop

Local shoppers on a budget, students, families, and people who prefer to buy second-hand for environmental or style reasons.

You sell clothes at a markup over what you paid, or keep a share of the sale price on consigned items. Revenue depends on location, stock quality and how fast items turn over.

• Judging quality and resale value of clothing
• Pricing and merchandising
• Customer service
• Basic bookkeeping and stock control

• Rent, utilities and a long lease are fixed costs, so check lease terms carefully before committing
• Check municipal rules for a business licence, zoning and signage
• Check whether your province has rules for second-hand dealers or consignment, which vary by region
• Commercial general liability and contents insurance
• Register for GST/HST once you pass the small supplier threshold
• Winter can reduce foot traffic, and seasonal stock needs storage space
• Hiring staff means checking WCB/WSIB coverage and employment rules in your province

Estimates suggest startup costs are typically around $8,000 to $40,000, depending on your location, lease, fit-out and how much stock you buy. Rent, utilities and a long lease are fixed costs, so check lease terms carefully first.

Estimated monthly revenue is typically around $3,000 to $15,000, depending on your location, stock and foot traffic. Winter can reduce foot traffic, and seasonal stock needs storage space, so plan your cash flow.

Check municipal rules for a business licence, zoning and signage, and whether your province has rules for second-hand dealers or consignment. Also check insurance, GST/HST registration once you pass the small supplier threshold, and WCB/WSIB and employment rules if you hire staff.