Outlet store for surplus and closeout goods

Price-conscious families, bargain hunters, students and people furnishing a home on a budget.

You buy stock at a deep discount and sell at a markup that is still well under normal retail. Profit depends on buying well, turning stock over quickly and keeping rent under control.

• Spotting good deals when buying
• Pricing and basic bookkeeping
• Customer service
• Merchandising and keeping a shop tidy

• Sales tax registration and a resale certificate: check with your state's tax agency
• A local business license and certificate of occupancy for the space: check with your city or county
• General liability insurance and a lease you can exit if sales are slow
• Liquidation stock can be damaged, incomplete or mislabeled, so inspect before buying in bulk
• Some goods (children's products, electronics, cosmetics, food) have extra safety or labeling rules, so check before selling them
• Selling branded goods: confirm the stock is genuine and from an authorized source

Startup costs are typically around $15,000 to $60,000, depending on rent, deposits, shop fit-out and how much stock you buy. A lease you can exit if sales are slow is worth checking before you sign.

Estimated monthly revenue is typically around $6,000 to $30,000, depending on location, stock mix and pricing. The estimate assumes at least 40 hours per week of shop time. These are estimates, not guarantees.

Check sales tax registration and a resale certificate with your state's tax agency, plus a local business license and certificate of occupancy with your city or county. Some goods, such as children's products, electronics, cosmetics and food, have extra safety or labeling rules.