starting a thrift store

[anders]

Hello I am interested in starting a thrift store in my community but have no idea were to start. Some of my  questions are, if i am  a for  a profitt store can i still ask for donations from the community. I don't want to be tied to one charity but i do want to give back to the local community, or is it best to be non profitt, if i do non profit how much do i give the charity . i would love to hear everyone's story good or bad. how much  does a thrift store usually profit

[Van]

Hi there! I write about taxes by day and work for a tax resolution company, so when I read the title to the post I saw it as a red flag. I’ll give you some pointers about starting a business and hopefully answer some questions for you:

Question 1: If I am a “for profit” store, can I still ask for donations from the community?

Absolutely. You might even be able to apply for non-profit status. Here’s detailed information from the IRS on nonprofit status: http://www.irs.gov/charities/index.html?navmenu=menu1

Question 2: How much does a thrift store usually profit?

This is hard to say. I believe if a person is inventive, hard working, & creative they can be successful running a thrift store. But be warned that it will take lots of hard work, sleepless nights, tossing, turning, and agonizing before you succeed.

 http://www.irs.gov/businesses/index.html - A complete guide to starting a small business. Do your research!

http://www.irs.gov/businesses/small/article/0,,id=154770,00.html – A-Z Guide for Small Business

http://www.sbrg.irs.gov/?cm_sp=ExternalLink-_-Federal-_-Treasury – IRS Small Business Guide 2009

http://www.business.gov/- One of the best guides for business out there. Look for grants, know what you have to pay, guides on how to get started.

Let us know about your successes. We’re all here because we love thrifting, for some of us, opening a thrift store would be a dream occupation. We’d love to live vicariously through you as you embark on your journey.

[Belaj]

Hello - I am hoping someone might shed some more light on how   a “for profit” store, can still ask for donations from the community?

I love the idea of a non profit, but if i start the business i can't see not being considered the owner.

Ideally i would like to own a thrift store and partner with a charity.
That said, Would i still form a non-profit or foundation to accept the donations in the back, and open my store in the front? Or would that be a conflict of interest?

I am just beging to research this and the IRS.gov website has my ears ringing!

All the Best,
Belaj

[Good Buddy]

Yes you should partner with a charity. The thrift store, "Manager" still would get paid, so you can make money at it. Also if you partner with a Non-Profit organization, you can get volunteers to help you out as much as possible.

[Big Thrift]

Big Thrift (Waxahachie, TX) chose to be a for profit store. We have the freedom of choosing our charities, and either party can stop the relationship at any time if dissatisfied.

Big Thrift buys goods from charities in bulk at a set price. That can be good, and bad. I've lost count of how many crates we've purchased that were absolute garbage. But, our agreement was to buy it sight unseen, and the charities don't have to worry if an item will sell, or if it is garbage. They get their set amount no matter what. On the upside, we've received some incredible donations. In the end, it all evens out.

[Good Buddy]

Hi Tracee, thanks for posting!