For decades, consignment sale shops have given Americans access to high-quality and designer clothing brands at affordable prices. Whether you own an upscale consignment boutique specializing in women’s clothing or a discount clothing store offering options for the whole family, you’ve likely seen foot traffic rise in the last five years, reflecting the 2.3 percent industry growth rate. Unfortunately, like other non-essential store owners, the COVID-19 pandemic might have hit your 2020 sales hard. If you’ve decided to move on and retire, or pursue other opportunities, now may be the right time. Despite the pandemic, there’s likely to be an increasing demand for used goods, as consumers brace for economic uncertainty and buckle down in their spending habits. Keep reading as we detail how to prepare a consignment shop for sale in Charlotte, NC.
HOW TO PREPARE FOR A CONSIGNMENT ST0RE SALE IN CHARLOTTE, NC
The projected rise in demand for used goods will likely attract a pool of interested buyers to your sale listing. Below, we’ll discuss the five steps you should address for a successful transaction.
1. DEVELOP AN EXIT STRATEGY
Whether you’re set on selling your retail business within the next month or year, it’s pertinent to have a solid exit strategy in place. Ask yourself the following:
- Who do I plan to sell my consignment business to?
- Does my retirement depend on the sale of this business?
- When’s the best time for me to sell my business?
- Will I stay on as an advisor for a designated period after the sale?
- Will the new owner employ my current team members?
Answering these questions can help protect your retail store’s current value while enhancing its future worth. The answers will also help your prospective buyers formulate a clearer picture of how the resale shop will operate without you.
2. ORGANIZE CONTRACTS, FINANCIAL DOCUMENTS, AND PAPERWORK
After you have a solid exit strategy in place, it’s time to gather up your business documents and paperwork. Serious buyers will want to review your tax statements, cash flow records, and even lease agreements. If you need help organizing these documents, consider getting assistance from a professional attorney or certified accountant.
3. MAKE NECESSARY CHANGES AND IMPROVEMENTS
Before listing your consignment shop for sale in Charlotte, NC, you’ll want to do everything you can to set it apart from nearby second-hand resale stores and online e-commerce competitors, such as ThredUp. To make this possible, start by finding specific areas that call for improvement, and make the necessary changes. Anything from replacing old cash registers to adjusting your store hours can go a long way towards boosting your shop’s sales, reputation, and above all, value.
Additionally, take a closer look at your current business model and identify potential opportunities to expand your Charlotte clientele. You may want to consider:
- Buying more exclusive, high-end brand names, such as Gucci, Chanel, and Prada from your sellers
- Expanding your inventory to include accessories, like handbags and scarves
- Establishing a rewards or a loyalty program for your customers
- Enhancing your social media presence
- Developing an employee incentives program
Although these suggestions can’t promise results overnight, they can go a long way to making your store more appealing to interested buyers in Charlotte, NC.
4. VALUE YOUR CONSIGNMENT STORE
As a small business owner, the emotional ties you form with your store can often interfere with calculating a fair asking price. For guidance valuing your consignment shop, it may be wise to hire a third-party professional service. With an accurate valuation detailing your shop’s worth, you’ll be better prepared to defend your selling price to prospective buyers.
5. LIST YOUR CONSIGNMENT SHOP FOR SALE
Once the above steps are accounted for, it’s time to list your thrift store on the market. While it’s always possible to sell the business yourself, as a consignor, enlisting the help of a business broker can save you time and alleviate any uncertainties that may arise. Professional brokers will help you locate qualified buyers while you stay focused on the day to day aspects of running your business.
For expert selling advice, consider reaching out to the professionals at VR Business Brokers of Charlotte. With more than 20 years of experience, our brokers are more than capable of selling your consignment shop in Charlotte, NC, for top dollar. To get started, contact us to schedule your consultation!