How do I start a consignment shop of my own?

Start by choosing a focus, such as clothing, children's items, furniture, or home goods, and studying the local market. Visit other shops, note what they accept and how they price, and look for an underserved niche or location.

You will need a clear consignment agreement, a system for tracking consignors, inventory, sales, and payouts, and a plan for intake and markdowns. Consignment software can make tracking and payouts much easier than doing it by hand.

Check the legal requirements before opening. Business licenses, sales tax permits, insurance, and lease terms all vary by state and city, and some areas have specific rules for secondhand dealers. Talk with your state revenue department, a local small business development center, and an attorney or accountant before signing a lease.