Oriental rug showroom

Homeowners furnishing a room, interior designers, decorators, and buyers of vintage or collectible rugs.

You sell rugs at a markup over what you paid. Extras like rug pads, delivery, and referring cleaning and repair add smaller amounts. Some shops also take rugs on consignment.

• Knowing rug types, materials and quality
• Selling and customer service
• Buying and pricing inventory
• Basic bookkeeping

• Inventory ties up a lot of cash, so start with a smaller range and test what sells
• Check your state and city for a business license and a sales tax permit
• If you import directly, check customs, duties and tariffs with a licensed customs broker
• Check federal textile labeling rules and avoid claiming a rug is hand-knotted, antique or natural dye unless you can verify it
• Ask suppliers about their labor practices, as some buyers look for ethical sourcing certification
• General liability and property insurance, plus coverage for stock against fire, water damage and theft

Startup costs are typically around $30,000 to $120,000, depending on your premises and how much rug stock you buy. Monthly revenue is typically around $6,000 to $30,000, depending on location, stock quality and how many designers and homeowners you attract.

Check your state and city for a business license and sales tax permit. If you import directly, check customs, duties and tariffs with a licensed customs broker. Also check federal textile labeling rules, and don't call a rug hand-knotted, antique or natural dye unless you can verify it.

You need to know rug types, materials and quality, plus selling and customer service, buying and pricing inventory, and basic bookkeeping. Inventory ties up a lot of cash, so start smaller. Plan on typically 30 hours a week or more.