Bankrupt Fittings
Most of our ideas relate to information, and/or importing goods cheaply from the 3rd world and selling them at a profit in your home country/city. This idea revolves around goods that (believe it or not) you can often source in your own city.
The idea is based upon the number of restaurants and shops that go belly up within the first months of opening. I live in an area where it is almost comical the number of times some of the shops change hands. Rents are high, the area is trendy and most of the owners are young and/or involved in their first business.
Simply by wondering around a similar area, or by looking for adverts on local bulletin boards, in local newspapers etc, you will find all kinds of equipment and fittings for sale at bargain basement prices.
It may take a little while to build up some stock, and will require a little more cash to do this, but with some clever marketing there are definitely dollars to be made.
There are fewer permutations for this idea than some of the others that we will show you during the year but some possibilities are as follows: -
Buy select items such as light fittings, or freezers and market them
Build a warehouse style of mixed stock from different failed businesses
Buy individual pieces and sell them on an ad-hoc basis while you build your
knowledge
Buy to order for new business owners
Mix and match buying some items new from overseas and only stocking used stock
for other items.
If you choose to specialise then online selling may be the answer for you.
This has the advantage of not requiring a retail outlet, and your similar stock
items can help to build traffic and some branding even if you are just using
EBAY.
If you aim to build up a portfolio of stock then you will require storage. Initially your garage or shed may be sufficient but if you choose to grow beyond this you will need to think about the cost of storage as well as stock
Ad hoc selling can work well, just by viewing a number of outfits that are closing down, or have closed you will get a feel for when something appears special, either through newness, or uniqueness. If the seller is in distress then this could be an ideal time to make a low bid and offer to take away those one or two items.
You may be able to market yourself through newspaper adverts, word of mouth, shop fitters and other related trades people as someone reliable who can get unique and/or low cost items. This may allow you to build up a buy to order business where customers tell you what they are looking for, and you source it. With some items this is relatively easy using the internet and just requires some research, with others you may be looking for some time before you find exactly what is required.
As you get to know your customers you will see that some items get broken or damaged easily and usually end up getting replaced with new. Brackets, skirting boards etc. may well fall into this category. If you can source these for your clients using www.Alibaba.com or similar sites then you can effectively create a second source of income. Many clients will buy from you because of your reputation and/or prices on the larger ticket items and also because it is more convenient than running to the local trade supplier or warehouse.
Definitely start buying all the variants of your local papers and sign up for some local Bulletin Boards. This will give you a clear idea of who your competition is, and how they are marketing their goods.
Keep an eye out for auctions, and/or open house sales. Walk the streets and look for businesses that appear to have closed down. Real estate agents should be able to help you track down the owners or tenants. Just pretend you are interested in buying the place.
When you get a feel for what is available you will need to get an idea of demand. Start to frequent new businesses; try to talk to the owners/managers about what was difficult/expensive to source. If you have contacts who are shop-fitters then ask them similar questions.
When you are looking to buy an item, ask the owner what they originally paid. If they won't tell you then make a very low offer and see if they spill the beans. It helps you when you are re-selling to know what a new item costs.
Get an advert in the local Yellow pages, it is not that expensive and you will be surprised how many people will look there first when they are starting out. Also use classifieds in the local papers and build your network with shop fitters and other trades people. Word of mouth is a valuable marketing tool.
You will need some form of transportation for larger items. Being able to borrow a van from friends or family would be a big help.
Check everything electrical/mechanical works before handing over any cash.
If you are not handy then make sure you have a reliable electrician or handy
man on call
You will be buying and selling to other business people so do not take anything at face value. Do your research, understand what things are worth and deal accordingly.
This is a business potentially full of sob stories. Remember that for every failed business owner you will be helping a new start up to get going more cheaply.
Don't turn up in a suit and tie, you will quickly wreck your clothes and prices will automatically be higher than if you roll up in torn jeans and paint stained t-shirt