How to Start a Thrift Store Business in Alabama
- 1). Select a location for your thrift store. You may lease a space in an existing location, purchase a building or erect a new business structure, depending on how much startup capital you have available. The Alabama Development Office recommends choosing a location based on the amount and type of traffic the area receives, its visibility and the amount of existing competition in the area.
- 2). Build an inventory for your thrift store. You can find items for resale at estate sales, yard sales, flea markets, online auctions, auction houses, consignment shops and other thrift stores. If you've already secured a location, you may also post a sign asking for donations.
- 3). Insure your small business with an insurance company licensed to do business in your area. There are a number of companies that offer small business liability and health insurance in Alabama, including the Nowell Agency. Choose a policy that offers coverage for both your property and inventory, as well as yourself and any employees you hire.
- 4). Choose your business structure. For example, you may open a thrift store as a sole proprietorship, limited liability company, partnership or corporation. To do business as a corporation, you must file your articles of incorporation with the Office of the Probate Judge prior to seeking an Alabama privilege license.
- 5). Obtain the necessary licenses. In Alabama, all businesses are required to obtain a privilege license through the county probate office or license commissioner. Additionally, some cities, including Huntsville, require business owners to obtain a separate municipal privilege license in order to operate.
- 6). Contact the Internal Revenue Service and the Alabama Department of Revenue to obtain your federal and state tax identification numbers. Contact the Alabama Department of Industrial Relations to obtain information on establishing workers' compensation insurance and payment of unemployment taxes. You must also contact your county and city tax departments to determine whether additional tax forms are required.
- 7). Market your business to potential customers. There are a number of ways to advertise your thrift store, including television and radio ads, placing print ads in the local newspaper or phone books, distributing flyers and posting business cards in other retail locations, such as grocery stores. Consider holding a grand opening event and offering discounts or coupons as an incentive to increase sales.