Checklist: Things You Need Before Starting

Startup Checklist for New Consignment Store Owners

Opening a consignment store is an exciting challenge. Use this step-by-step checklist to prepare for a smooth, confident launch. Each step helps you avoid costly mistakes and ensure your shop’s strong foundation.

Legal and Regulatory Essentials

• Choose your business structure: Decide if you will operate as a sole proprietorship, partnership, LLC, or corporation. Consult an accountant or legal advisor if unsure.
• Register your business name: File your DBA (“Doing Business As”) with your state or local office as required.
• Obtain all licenses and permits: Requirements vary by city and state, but usually include a resale permit, sales tax registration, and general business license for your shop address.
• Get insurance: Secure general liability insurance and coverage for inventory or shop property. Inquire about additional coverages, such as consigned goods or worker’s comp.

Financial Planning and Banking

• Open a business checking account: Keep business and personal finances separate for taxes and accountability.
• Set your budget: List your expected startup costs, like rent, security deposit, signage, insurance, furnishings, software, and supplies.
• Determine startup capital: Make sure you have cash on hand for several months of expenses, not just the first month’s rent.

Location and Setup

• Select your shop location: Consider walk-in traffic, parking, local competition, and accessibility.
• Negotiate your lease: Read carefully and ask questions before signing. Look for sensible terms on rent, repairs, signage, and hours.
• Furnish and equip the store: You need display racks, shelves, a checkout counter, price tagging supplies, mirrors, and kid-safe spaces if handling children’s items.

Inventory, Systems, and Policies

• Create your intake policy: Decide what you will accept (brands, condition, categories, limits). Write clear rules for consignors.
• Plan software and tracking: Use specialized consignment shop software to track consignors, inventory, payouts, and sales tax.
• Order hardware: Secure basic computers, barcode scanner, receipt printer, and a secure cash box or safe.
• Develop shop policies: Set your consignment period, commission split, payout timing, and what happens to unsold goods.

Staff, Marketing, and Launch

• Hire and train staff (if needed): Train on intake, software, and customer service basics.
• Create opening marketing: Build an online presence with a basic website, set up a Google Business page, make flyers, and use social media.
• Plan your soft launch: Have a “preview” or friends-and-family day to work out any glitches before the official opening.
• Network with early consignors and community members: Word of mouth is your best start.

Printable Quick Reference Checklist

• Business entity formed and registered
• Resale and business licenses in hand
• Business bank account set up
• Leases and insurance secured
• Shop location ready and equipped
• Consignment policies and agreements written
• Systems (software, hardware, supplies) installed
• Marketing launched
• Supplies stocked: tags, bags, printer paper, cleaning materials
• Opening day team and process ready

FAQ for First-Time Shop Owners

More Next Steps

• Download and adapt this checklist as you go through setup
• Talk with other consignment shop owners in your area
• Explore consignment key terms and business name tips before finalizing your plans
• Plan for using management software from day one to avoid chaos