Forums: Discussions for entrepreneurs and small business.

Hi everyone,

i am thinking of starting a liquidation business selling liquidated, overstock, shelf pull merchandise.  Could anyone please offer any advice on getting started?  I have done a lot of research on sourcing the merchandise but have found mixed information on the best way to start this kind of business.  Any help will be greatly appreciated.  Thank you.

Fred

As with any business you must have goals, planning & organization. Goals are great, but success in any business requires a plan. Planning and organizing will insure success as your business grows. In case you didn’t know a liquidation business isn’t a get rich quick scheme, it takes work & organization. Start your small business with low startup costs that you can control. Check with your local authorities to find out if you need a liquidation license. Learn how to manage your money, track your expenses, costs & maintain a budget. If you don’t know how then get help.

You could consider starting a liquidation business by opening a discount store online by creating a website and/ or brick n’ mortar such as a 99 cent store, dollar tree store, a flea market, yard sale, create a low-cost discount store, sell on Craig’s list, through an auction, through eBay etc..

Pick an area to specialize in that people are buying or is interesting to you. As with some businesses you might be dealing with repeat customers and suppliers continuously so honesty is a must.  Before buying merchandise, bartering or trading for merchandise, do some research and see what is selling.

In the planning stages of your business & prior to opening your business, be sure that you fully understand the competition and where your new business will fit in. Understand exactly what you’ll be selling. Starting this type of business depends on your ability to find and close that first deal.

Look into contacting freight and storage companies, overseas companies, contact local banks about bankruptcies for merchandise. Find individuals and/ or businesses that want to give to you or sell you merchandise or buy the surplus stock from you. Seek out companies with surplus merchandise, speak with other liquidators & see if they are willing to give you a few suggestions. Act as a broker & find freight delivery companies that will bring merchandise to you or your buyer.

I would start contacting retailers to get a price on how much they would sell you their overstocked inventory for.  This will most likely be critical in your start-up because otherwise you won't know what buying power you will have with manufacturers. I'm willing to bet that you can probably go back and forth between retailers and suppliers to find the best price.