Thrift Store Business Plan Template

Thrift Store Business Plan Template

If you want to start a Thrift Store or expand your current Thrift Shop, you need a business plan.

The following business plan template gives thrift store owners the key elements to include in a winning thrift store business plan. It can be used to write a plan for a consignment thrift store, vintage thrift store or goodwill thrift store.

You can download our thrift store business plan template (including a full, customizable financial model) to your computer here.

 

Example Business Plan For Thrift Stores

Below is a thrift store business plan example with each of the key sections to help you write a thrift store business plan for your own company.

I. Executive Summary

Business Overview

[Company Name], located in [insert location here], is a local newly established thrift store. The store will retail gently used clothing, books, baby items, furniture, and appliances at a discounted price. [Company Name] will commit to donating 20% of its proceeds to local charities and non–profit organizations focused on homelessness and transitional living centers.

[Company name] was founded by [Founder’s Name], a local advocate for charities that deal with homelessness and transitional living centers. [Founder] received his Master of Public Administration six years ago and has spent the last five years working as a director for a local non-profit organization. [Founder’s Name] possesses an entrepreneurial spirit as well and has decided to launch a thrift store where people can donate their gently used items for it to be resold to the public.

Products Served

[Company Name] will sell a variety of gently used items. The products include gently used apparel (clothing, shoes, accessories), furniture, household appliances, books, and baby items (cribs, blankets, strollers, highchairs, etc.)

Pricing for all items will vary depending on the product and condition.

Customer Focus

[Company Name] will primarily serve the residents within a 1 to 25-mile radius of our location. The demographics of these residents are as follows:

• 1,653,829 residents
• Average income of $36,500
• 51.85% married
• 30% low income residents
• Median age: 38 years

Management Team

[Company name] will be owned and operated by [Founder’s Name], a local advocate for charities that deal with homelessness and transitional living centers. [Founder]’s passion is to assist the less fortunate in the community and have assisted numerous individuals and families be placed in affordable housing. Once they receive housing, many of the residents are not able to afford basic living necessities. [Founder]’s mission is to provide a friendly and affordable store where people from all walks of life can shop for clothing, furniture, and appliances.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be donating a large percentage of its proceeds to local charities and non-profit organizations that assist homeless people and those in transitional living centers.
• The company will provide a wide selection of gently used items.
• The thrift store will be located in a highly trafficked intersection of town.
• The pricing model is structured to be affordable to people from all walks of life.

Financial Highlights

[Company Name] is seeking a total funding of $50,000 of debt capital to open the thrift store.

• Store design/build-out: $20,000
• Equipment, Point of Sale system, technology: $10,000
• Brand development and marketing: $5,000
• Working capital: $15,000 to fund payroll, taxes, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial Summary	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$560,401	$782,152	$1,069,331	$1,379,434	$1,699,644
Total Expenses	$328,233	$391,429	$552,149	$696,577	$776,687
EBITDA	$232,168	$390,722	$517,182	$682,858	$922,956
Depreciation	$7,000	$7,000	$7,000	$7,000	$7,000
EBIT	$225,168	$383,722	$510,182	$675,858	$915,956
Interest	$6,016	$5,264	$4,512	$3,760	$3,008
Pre Tax Income	$219,152	$378,458	$505,670	$672,098	$912,948
Income Tax Expense	$76,703	$132,460	$176,985	$235,234	$319,532
Net Income	$142,449	$245,998	$328,686	$436,864	$593,416
Net Profit Margin	25%	31%	31%	32%	35%

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here] is a local newly established thrift store. The thrift store will be located in a highly trafficked strip center at a busy intersection in [location]. The store will retail gently used clothing, books, baby items, furniture, and appliances at a discounted price. [Company Name] will commit to donating 20% of its proceeds to local charities and non–profit organizations focused on homelessness and transitional living centers. People will be inclined to donate their gently used items and be able to receive a breakdown of their donated items to claim as a charitable donation on their annual taxes.

[Company Name] was founded by [Founder’s Name], a local advocate for charities that deal with homelessness and transitional living centers. [Founder] received his Master of Public Administration six years ago and has spent the last five years working as a director for a local non-profit organization. [Founder] has witnessed the struggle many people experience when they are trying to regain their footing and have a home they can call their own. He is committed to providing a friendly and affordable thrift store where the public can find gently used basic living necessities at discounted prices.

[Founder] has saved for a down payment on a SBA loan from a local bank. He has also located a small retail space in a highly trafficked strip retail center in town. The 5,000 square foot space will be able to house different areas for items as well as a dressing room and two checkout counters. There will also be an area for donation in-take. [Founder] will employ a small team to sort through the donations, clean them, price them accordingly, and display the items in the store.

[Company Name]’s History

Once his market analysis was complete, [Founder’s Name] began surveying the local vacant retail space and decided on an available retail store in a highly trafficked retail strip center. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].

Once the lease is acquired for the thrift store, light construction and design can begin to build-out the store.

Since incorporation, the Company has achieved the following milestones:

• Located an available space in a highly trafficked retail strip center
• Developed the company’s name, logo, and website located at [website]
• Hired a general contractor for the build-out of the thrift store
• Determined software and necessary supplies and equipment
• Attained the sales tax permit necessary for [location]
• Began recruiting key employees that will assist with the operations of the thrift store

[Company Name]’s Products

Below are [Company Name]’s product offerings:

• Clothing, accessories, shoes, boots
• Baby items (strollers, high chairs, blankets, cribs, etc.)
• Furniture
• Household appliances
• Books

 

III. Industry Analysis

The Thrift Stores industry is estimated to grow at an annualized rate of 1.1% to $11.8 billion.

Historically, the Thrift Stores industry has relied on customers who shop for secondhand goods out of necessity. However, thrift stores are increasingly catering to a wide variety of customers who are seeking unique items, high quality goods at lower prices or to reduce their carbon footprint by recycling clothing and other goods. In addition, the cycling of trends has also contributed to demand for thrifting. Growing disposable income and consumer spending has also benefited the industry by increasing the number and size of purchases at industry establishments. Additionally, consumers are expected to increase their demand for more sustainable shopping options as environmental consciousness increases.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The community of [company location] is a very diverse community that includes over 1.6 million residents. While the community is very diverse, there is also a portion of low income residents who are experiencing or have experienced homelessness or are living in transitional housing. In addition, there are thousands of residents who are dealing with the rising costs of inflation and are experiencing difficulty making ends meet for themselves and their families.

	Fort Lauderdale, FL
Total Population	9,818,605
15 to 19 years	753,630
20 to 24 years	752,788
25 to 29 years	759,602
30 to 34 years	716,129
Total Households:	3,218,511
Household income $50,000 to $74,999	550,971
Household income $75,000 to $99,999	382,770
Household income $100,000 to $149,999	440,285
Household income $150,000 to $199,999	187,449
Household income $200,000 or more	208,954

Customer Segmentation

The Company will primarily target the following three customer segments:

1. Low Income Residents: There are a number of residents who are unable to afford basic necessities at typical retail outlets.
2. College Students: College students typically do not have a lot of spending money and need to purchase affordable items.
3. Families: Families need to purchase children and household items regularly and expenses sometimes exceed monthly income.
4. Seniors: Seniors live on a fixed income and do not have discretionary funds for everyday purchases and expenses.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following businesses are located within a 30-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

ThriftMore
ThriftMore owns and operates a chain of thrift stores. The company offers housewares, collectibles and antique, furniture, household goods, clothing, and accessories. ThriftMore has expanded its network and now operates stores across the world. The store is known for providing stylish finds at affordable prices. They place an emphasis on impacting the environment, communities, and local nonprofit organizations.

ThriftMore’s operation consists of partnering with local nonprofit organizations and accepts donations of clothing and other household items on their behalf. ThriftMore pays the nonprofits for the items and helps to fund various programs in the communities as well. In addition, ThriftMore has created a recycling and reuse program where they recycle millions of pounds of reusable items annually.

Savings Galore
Savings Galore is a nonprofit 501 organization that is not only a thrift store, but also provides employment opportunities and job training to individuals who have difficulty or barriers to gaining employment. Savings Galore receives millions in donations every year and donates much of their proceeds to various nonprofit organizations and charities around the country. The company places numerous donation bins around each town where they have a presence to make it easier for the public to drop off donations.

Savings Galore employs those with disadvantages such as homelessness, welfare dependency, no education, or have physical and/or mental disabilities. The company pays a living wage to those individuals employed at their store and provides opportunities for advancement.

Cheap Goods
Cheap Goods is a thrift store that focuses on retailing affordable boutique brands for resale. They accept gently used clothing, shoes, and apparel in popular brands and are in decent, resellable condition. The company pays a certain amount to those who bring in their items for resale and prefer to only receive boutique, brand name items. The company then resells the items for a marked up price in order to make a profit. Cheap Goods is often located near colleges and universities as it markets itself towards the college student demographic.

The company has locations across the country and is available as a franchise for new owners who would like to open a Cheap Goods secondhand store of their own.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Charitable Focus: [Company Name] will donate a large portion of its profits to various nonprofit organizations and charities around [location].
• Location: [Company Name] will be located in a highly trafficked retail strip center.
• Wide Selection of Items: [Company Name] will accept a wide variety of donations and have it able for resale. The items include household items, clothing, shoes, apparel, books, and baby items.
• Pricing: [Company Name] will offer the donated items for resale at affordable prices to people from all walks of life.

 

VI. Marketing Plan

You can download our thrift store business plan template (including a full, customizable financial model) to your computer here.

[Company Name] seeks to position itself as the prime thrift store to donate to and purchase gently used items. The company will also focus on providing exceptional customer service to all who enter its store.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Charitable Focus
• Large selection of gently used items
• Clean, friendly, and welcoming atmosphere
• Convenient location
• Affordable pricing

Promotions Strategy

[Company Name] expects its target market to be individuals and families within a 10-50-mile radius of its location. [The Company’s] promotion strategy to reach these businesses includes:

Billboards/Signage
[Company Name] will invest in attractive signage and billboards to increase the brand awareness of the up-and-coming thrift store.

Local Publications
We will also invest in advertising in selected larger publications such as newspapers and local publications.

Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all the products the company will have for resale. The website will also include an emphasis on the thrift store’s charitable mission. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Sponsorships
[Company Name] will also invest in sponsoring certain nonprofit and community events so that their banners and collateral material are displayed all over the event where numerous customers and donors will potentially be.

Social Media
[Company Name] will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of new merchandise it receives or of upcoming events.

Collateral Material
[Company Name] will develop numerous collateral material to have on hand to give out to potential clients. It will also ask local businesses for permission to hang or display their collateral material in highly trafficked areas.

Pricing Strategy

[Company Name]’s pricing will be moderate, so clients feel they receive great value when purchasing the thrift store’s products.

 

VII. Operations Plan

Functional Roles

[Company Name] will carry out its day-to-day operations as a thrift store. There will also be numerous administrative functions involved.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company Name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Team of donation in-take and preparation
• Shift Managers

Administrative Functions

• General and administrative functions including tax payments, marketing, bookkeeping, etc.
• Hiring and training staff
• Filing and maintaining accurate records and files of all sales
• Brand management/social media
• Scheduling of staff

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

Date	Milestone
[Date 1]	Finalize lease agreement
[Date 2]	Design and build out [Company Name]
[Date 3]	Hire and train initial staff
[Date 4]	Kickoff of promotional campaign
[Date 5]	Launch [Company Name]
[Date 6]	Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name] is owned and operated by [Founder’s Name], a local advocate for charities that deal with homelessness and transitional living centers. [Founder]’s passion is to assist the less fortunate in the community and have assisted numerous individuals and families be placed in affordable housing. Once they receive housing, many of the residents are not able to afford basic living necessities. [Founder]’s mission is to provide a friendly and affordable store where people from all walks of life can shop for clothing, furniture, and appliances.

[Founder] will hire 2 – 3 shift managers to operate the store at various times so that it can be open 7 days a week.

Hiring Plan

[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, he needs to hire the following personnel:

• Shift Managers: 2-3 full-time employees to oversee the staff, scheduling of staff, and customer service.
• Staff: 5-6 full-time and part-time employees to assist with donation in-take, displaying items, selling, and customer service.
• Accountant: 1 employee who will manage the accounting, clerical, bookkeeping, tax payments, records manager, and any administrative task required.
• Brand manager: 1 part-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from the sales it receives from the donated items it offers for resale.

The store lease, utilities, point-of-sale software, supplies, marketing, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:

• Payroll
• Point-of-sale software
• Marketing
• Business Insurance
• Lease on retail space and utilities
• Taxes
• Security

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $50,000 of debt capital to open the thrift store. Funding will be dedicated to the design and opening of the store, developing the brand image, and three months of working capital expenses.

• Store design/build-out: $20,000
• Equipment, Point of Sale system, technology: $10,000
• Brand development and marketing: $5,000
• Working capital: $15,000 to fund payroll, taxes, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:


	Number of customers per day
FY 1	75
FY 2	100
FY 3	125
FY 4	150
FY 5	175
Annual Lease (per location)	$50,000

 
5 Year Annual Income Statement

		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
	Product/Service A	$151,200	$333,396	$367,569	$405,245	$446,783
	Product/Service B	$100,800	$222,264	$245,046	$270,163	$297,855
	Total Revenues	$252,000	$555,660	$612,615	$675,408	$744,638
Expenses & Costs
	Cost of goods sold	$57,960	$122,245	$122,523	$128,328	$134,035
	Lease	$60,000	$61,500	$63,038	$64,613	$66,229
	Marketing	$20,000	$25,000	$25,000	$25,000	$25,000
	Salaries	$133,890	$204,030	$224,943	$236,190	$248,000
	Other Expenses	$3,500	$4,000	$4,500	$5,000	$5,500
	Total Expenses & Costs	$271,850	$412,775	$435,504	$454,131	$473,263
EBITDA		($19,850)	$142,885	$177,112	$221,277	$271,374
	Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
EBIT		($56,810)	$105,925	$140,152	$184,317	$234,414
	Interest	$23,621	$20,668	$17,716	$14,763	$11,810
PRE-TAX INCOME		($80,431)	$85,257	$122,436	$169,554	$222,604
	Net Operating Loss	($80,431)	($80,431)	$0	$0	$0
	Income Tax Expense	$0	$1,689	$42,853	$59,344	$77,911
NET INCOME		($80,431)	$83,568	$79,583	$110,210	$144,693
Net Profit Margin (%)		-	15.00%	13.00%	16.30%	19.40%


 
5 Year Annual Balance Sheet

		Year 1	Year 2	Year 3	Year 4	Year 5
ASSETS
	Cash	$16,710	$90,188	$158,957	$258,570	$392,389
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$21,000	$23,153	$25,526	$28,142	$31,027
	Total Current Assets	$37,710	$113,340	$184,482	$286,712	$423,416
	Fixed assets	$246,450	$246,450	$246,450	$246,450	$246,450
	Depreciation	$36,960	$73,920	$110,880	$147,840	$184,800
	Net fixed assets	$209,490	$172,530	$135,570	$98,610	$61,650
TOTAL ASSETS		$247,200	$285,870	$320,052	$385,322	$485,066
LIABILITIES & EQUITY
	Debt	$317,971	$272,546	$227,122	$181,698	$136,273
	Accounts payable	$9,660	$10,187	$10,210	$10,694	$11,170
	Total Liabilities	$327,631	$282,733	$237,332	$192,391	$147,443
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	($80,431)	$3,137	$82,720	$192,930	$337,623
	Total Equity	($80,431)	$3,137	$82,720	$192,930	$337,623
TOTAL LIABILITIES & EQUITY		$247,200	$285,870	$320,052	$385,322	$485,066


 
5 Year Annual Cash Flow Statement

	Year 1	Year 2	Year 3	Year 4	Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)	($80,431)	$83,568	$79,583	$110,210	$144,693
Change in working capital	($11,340)	($1,625)	($2,350)	($2,133)	($2,409)
Depreciation	$36,960	$36,960	$36,960	$36,960	$36,960
Net Cash Flow from Operations	($54,811)	$118,902	$114,193	$145,037	$179,244
CASH FLOW FROM INVESTMENTS
Investment	($246,450)	$0	$0	$0	$0
Net Cash Flow from Investments	($246,450)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
Cash from equity	$0	$0	$0	$0	$0
Cash from debt	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
Net Cash Flow from Financing	$317,971	($45,424)	($45,424)	($45,424)	($45,424)
SUMMARY
Net Cash Flow	$16,710	$73,478	$68,769	$99,613	$133,819
Cash at Beginning of Period	$0	$16,710	$90,188	$158,957	$258,570
Cash at End of Period	$16,710	$90,188	$158,957	$258,570	$392,389