Nowadays, more and more people are looking for side jobs or even starting businesses to make some extra money. For some, a new business means the freedom to work when they want and make enough money to increase their savings and retire early. No matter why you’re looking into starting a liquidation business, the general approach remains the same. Your goal in the liquidation business is to do more than break even with your purchases, by buying wholesale goods at low prices and flipping them for a higher price, If you’re interested in how to get started and find funding, here are some tips to give you some direction.
Do your research
This should go without saying, but before you get started in a new business venture, it’s important to do your research. It’s a good idea to know where you are getting your funding from. There are plenty of banks who will help you get personal or business loans to help fund your new startup, as well as online sources with competitive rates. The old adage “it takes money to make money” is particularly true when considering the liquidation business, since you can’t make money if you don’t have a stock to sell products from. Similarly, it can’t hurt to choose a specific distributor to buy your wares from. That will allow you to start to learn any unique characteristics of buying products from that source, since a Walmart liquidation is going to differ in some ways from other pallet suppliers like Amazon or Target.
Make a plan
Once you’ve done your research, it’s key that you make a plan and stick to it. Oftentimes when starting out, you can get caught up in the thrill or potential of a liquidation pallet and ignore important factors like your budget or the specific niche you’ve chosen to focus on. Part of the success of selling liquidated merchandise is having a reputation for selling and shipping that particular type of product to your customers safely and consistently. If you don’t stick to that niche and wind up buying something that seems like a good deal from a different vertical, you may end up over your head and lose money, too. One way to keep yourself accountable and manage your performance at the same time is by investing in an OKR software solution. This helps you set goals and actually see how you’re progressing towards them, allowing you to track and analyze successes and plan better in the future.
Slowly scale your business to ensure profitability
With a plan in place, it’s time to take action. It’s important not to rush into selling too much too quickly. Especially at the onset, making the most of your funding and building a strong customer base is pivotal to your longevity. By slowly scaling your business instead of rushing in, you will ensure that your new business is profitable and that you learn the ropes of the liquidation business. With an OKR solution to help keep you on track in terms of how and when you scale, it will be easy to build your new company, and establish a long lasting and profitable source of income.
If you keep the above concepts in mind as you begin your new venture into the world of liquidation, you’re sure to find success. Researching the industry and making a plan based on what you learn will help you create a solid foundation for your new company. From there, it is important to keep scaling your business at a reasonable pace and to avoid the temptation to go all-in too quickly. By making smart, sensible decisions, you can turn your liquidation business into a steady stream of cash.
