Used instrument shop with trade-ins

Local players, students and parents, hobbyists, and musicians selling or trading in gear they no longer use.

Margin on resold instruments, sales of strings, cables, picks and cases, and optional extras such as consignment fees or simple setups.

• Strong knowledge of instruments and values
• Negotiating fair buy prices
• Customer service
• Managing stock and cash flow

• Check with your state about a seller's permit and sales tax registration, and with your city or county about a business license and zoning for retail
• Used goods and secondhand dealer rules differ by state and city, and some places require recording seller IDs or holding purchases for a set time, so check locally
• Buying stolen instruments is a real risk, so keep records and check IDs and serial numbers
• Lease commitments and unsold stock can tie up cash, so negotiate lease terms carefully
• General liability and property insurance, and workers' compensation once you hire

Startup costs are typically estimated at around $15,000 to $60,000, depending on your lease, shop fit-out and how much stock you buy. Lease commitments and unsold stock can tie up cash, so negotiate terms carefully.

Check with your state about a seller's permit and sales tax registration, and with your city or county about a business license and retail zoning. Also check secondhand dealer rules, which may require recording seller IDs or holding purchases.

Monthly revenue is typically estimated at around $4,000 to $20,000, depending on your location, stock quality and how many trade-ins and sales you handle. Expect to work at least about 35 hours a week.