Neighborhood Discount Store

Price-conscious local households, families on tight budgets, and people who want a quick nearby trip for small items.

You buy in volume from wholesalers, closeout dealers and liquidators, then sell at a markup. Profit depends on quick stock turnover, many small sales and keeping rent and waste under control.

• Spotting good wholesale deals
• Stock control and pricing
• Friendly customer service
• Basic bookkeeping

• Check with your city or county about a business license and certificate of occupancy for the unit
• Check your state's sales tax registration and resale certificate rules
• Get general liability and property insurance, and workers' compensation once you hire
• Some products, such as children's items, cosmetics or food, have safety and labeling rules, so check before stocking them
• Lease terms, deposits and slow-moving stock can tie up cash

Estimates suggest startup costs typically around $25,000 to $100,000, depending on the unit, lease deposits and how much stock you buy. Monthly revenue is typically estimated at around $12,000 to $50,000, depending on location and the range you carry.

Check with your city or county about a business license and certificate of occupancy for the unit. Check your state's sales tax registration and resale certificate rules. Some products, such as children's items, cosmetics or food, have safety and labeling rules, so check before stocking them.

You'll need an eye for good wholesale deals, stock control and pricing, friendly customer service and basic bookkeeping. Estimates suggest at least around 40 hours a week. Watch lease terms, deposits and slow-moving stock, which can tie up cash.