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Guide to Buying a Franchise Restaurant

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Franchise eateries are one of the most ubiquitous types of businesses in the United States. Go to almost any town in the country and you’re likely to find a McDonald’s, Dunkin’, Domino’s, or some other familiar establishment. Of the nearly 661,000 restaurants in the United States, roughly 308,000 of them are considered franchises (46%), according to research by Statista.

In other words, buying a franchise restaurant is one of the most popular paths to business ownership.

However, the process of buying a franchise restaurant is anything but easy. That’s why we created this guide—to show you all the steps you’ll need to take to buy a franchise restaurant. We’ll explain the pros and cons, how much it could cost you, and the steps you’ll need to take to become a franchise restaurant owner.

But first, let’s start with an explanation of how franchise restaurants work.

How does a franchise restaurant work?

Franchises are highly replicable businesses that have a proven business model and widespread brand recognition and popularity. To buy into a restaurant franchise means you (the franchisee) purchase the rights from a franchisor (the company) to open your own branch of the restaurant using the franchisor’s trademarks and brand materials. The franchisor will share everything from their menu to operations manual in return for royalties from your franchise’s revenues, as well as other franchise fees.

The franchisor will assist you with designing your restaurant space, training staff, marketing the business, and developing protocols and procedures needed to run your restaurant. As the franchisee, you must agree to comply with all of the franchisor’s protocols.

While some franchisors will be more flexible and allow their franchisees to exercise their own creative freedom, the whole point of a franchise is to duplicate an already existing business. To ensure the brand’s success, each location should more or less look and feel the same, as well as offer the same products.

Pros and cons of buying a franchise restaurant

Pros

Here are the reasons you should consider buying a franchise restaurant.

  • Established customer base: Compared to independent restaurants, which can open and close without anyone ever knowing they were there, consumers already know and trust franchise restaurants, so you don’t need to spend nearly as much time or money trying to attract new clients—depending on the franchise you choose and the location you’re in, you could have a line out the door on opening day.

  • Easier to get financing: Since franchise restaurants already have tried-and-true business models, a lender will likely be more open to providing you with the financing you need to purchase a franchise restaurant.

  • No need to worry about logistics: Setting the menu? Writing an employee handbook? Marketing your restaurant? These are things your franchisor does for you, giving you more time to focus on big-picture endeavors.

  • Proven track record of success: You don’t have to look far to find restaurant franchises with staying power and consistent business. For the risk-averse restaurateur, a franchise can provide the assurance you need to get into the restaurant business.

Cons

Buying a restaurant franchise does come with some significant hurdles. Here are the disadvantages you need to understand before jumping into this endeavor:

  • High up-front cost: While acquiring funding to buy a franchise is typically easier than acquiring funding for an independent restaurant, the initial investment is typically higher. That’s because you need to invest in a location, equipment, and meet expensive zoning and code compliance standards. While this is true of any restaurant, with a franchise, you’ll also need to pay hefty franchise fees—typically tens of thousands of dollars.

  • Less autonomy: Consistency is key with franchise restaurants, so don’t expect opportunities to tinker with the menu or give the dining room a makeover. When you become a franchisee, you agree to represent the brand, which means complying with your franchisor’s requirements. If you enjoy the freedom to make your own calls, a restaurant franchise might not be for you.

  • High turnover: Restaurant franchises, particularly fast-food establishments, typically have high turnover rates, making it more challenging to recruit and retain a workforce that will function at a high level.

  • Risk of losing your franchise: Most franchisors require a certain level of performance from their franchisees to continue operating. If your franchise is struggling, you’re late with your royalty payments, or you breach protocol, your franchisor could terminate your contract. What’s more, at the end of your franchise agreement, your franchisor will review your performance and decide whether or not to offer you a new contract.

How much does it cost to buy a restaurant franchise?

The next big question most prospective restaurant franchisees have is how much it will cost. As previously mentioned, the upfront investment is quite steep. For context, the initial investment needed to start a McDonald’s franchise starts at $1 million and can go all the way up to $2.2 million. Fortunately, not all franchises are so costly to buy into. Here are the costs you’re looking at to get started:

Initial franchise fee

This is the fee you’ll pay directly to the franchisor for the rights to operate a franchise under their trademark. This cost varies from franchise to franchise. The initial franchise fee for a Kentucky Fried Chicken franchise is $45,000, whereas the franchise fee to open a Dunkin’ location (formerly Dunkin’ Donuts) starts at $40,000 but can go all the way up to $90,000 depending on the state you operate in.

Keep in mind that franchise fees are typically non-refundable.

Startup fees

Along with the cost you pay to the franchisor is the cost you’ll have to pay to simply get your restaurant up and running. This includes leasing or buying a location that complies with your franchisor’s requirements, buying equipment to outfit your restaurant, and purchasing licenses and permits required by your municipality. There’s no telling how expensive this can get, but we recommend setting aside at least a few hundred thousand.

Royalty fees

Royalty fees are the ongoing fees you’ll pay to your franchisor out of your revenues to remain affiliated with the brand and continue to receive services and support. The normal royalty fee is somewhere between 4% and 6% of your monthly revenues.

Additional costs

There are some additional costs you’ll have to pay to keep your franchise up and running. This includes payroll and subscriptions to business tools like point of sale and scheduling software. Some franchisors also ask franchisees to contribute to an advertising fund that is used to promote national campaigns and attract new investors.

Personal finances

Lastly, franchisors have some pretty strict requirements for who they will go into business with. There are typically requirements for how much the franchisee has in liquid assets, and how much their net worth is. For example, Panera Bread requires investors to have a net worth of at least $7.5 million and $3 million in liquid assets. Pizza Hut wants to see $700,000 in net worth and $300,000 in liquid assets. Understand your franchisor’s financial requirements before applying. There are plenty of food franchise opportunities out there, but you may have to do a little digging to find the ones that work best for your financial situation.

How to buy a restaurant franchise: A step-by-step guide

If you’ve read this far and still want to start a restaurant franchise, now it’s time to get into the steps you’ll need to take.

Step 1: Evaluate your market

Before picking a franchise to apply to, evaluate your market to see what kind of franchise restaurant would best fit. This means looking at the competition in your area as well as the local economy. For example, if the market is saturated with Mexican restaurants, maybe a Taco Bell isn’t the best franchise for your area. If other franchises have gone out of business in your market, you should also find out why. Do your due diligence to better understand your market, who your target customers are, and what they truly want.

Another consideration is location. You’re going to want to place your franchise in an area that gets a lot of traffic so people know it’s there. Take some time to evaluate potential locations, make note of rental prices, and more.

Step 2: Evaluate and select a franchise 

As you know by now, buying a franchise restaurant isn’t cheap. That’s why it’s important to find a franchise that falls within your budget and meets a need in your market. When evaluating franchises to consider working with, there are a variety of considerations you should weigh, including:

  • Does this franchise align with my skills and interests?

  • Does this franchise have a proven track record of success?

  • Does this franchise offer opportunities in my market?

  • How are franchisee applicants screened?

  • Can I meet the franchisor’s terms and conditions?

  • What fees does the franchisor charge?

  • In what capacity will the franchisor assist in setting up my business?

  • What do other franchisees have to say about this franchisor?

To help you in your evaluation, we recommend reaching out to the franchisor directly and asking for more information.

Step 3: Review and sign the franchise disclosure document

When you find a franchise you’re ready to proceed with, request a franchise disclosure document (FDD). The FDD contains essential information a potential franchisee will want to know before making an investment. The franchisor also needs to provide you with the FDD at least 14 days before it needs to be signed or the franchisee needs to hand over any money.

Information included in the FDD includes an outline of the fees the franchisor charges; how much the franchisee may need to invest to get started; the franchisee’s obligations to the franchisor; franchisor assistance when it comes to training, advertising, and business tools; information on patents and copyrights; the financial statements you’ll need to provide; and a copy of the franchise agreement that you’ll need to sign.

We recommend taking the complete franchise agreement, including the FDD, to a business attorney for review before signing.

Step 4: Attend a discovery day 

Along with receiving an FDD, you may also be invited to attend a “Discovery Day,” during which you’ll spend time at the franchise’s corporate headquarters or at a franchise location. The day is designed to give you a sense of day-to-day operations, the corporate culture, and the requirements you’ll need to comply with.

This process is as much for you and is it is for the franchisor. You both need to see if this partnership is the right fit. Be prepared to ask lots of questions and speak to as many employees as possible.

Step 5: Draft a business plan

The business plan isn’t required for your franchisor—it’s required for lenders. Chances are you’re going to need to obtain some financing to pay that franchise fee and get your restaurant off the ground. That means jotting down an executive summary, company overview, market analysis, organization structure, your products and services, your marketing and sales plan, and your financial projections. Keep in mind that some of this information can be pulled directly from the FDD.

Step 6: Obtain financing

The last major hurdle is to acquire the financing you need to get your business up and running. While some franchisors offer financing, it’s more common for a prospective franchisee to go through an independent lender. As we mentioned previously, it’s typically easier for franchisees to acquire financing because they are working with a known commodity.

Once you understand just how much money you’ll need to get started, here are some franchise loan options to consider:

  • Equipment financing: You’ll need to purchase a lot of kitchen equipment when opening a franchise restaurant, and equipment financing helps you get the financing you need to do that. What’s more, equipment financing loans are self-securing, meaning the equipment itself serves as collateral for the loan.

  • Term loan: A term loan is a traditional loan that you repay over the course of several years, plus interest. This is a better option for receiving a larger amount of cash to start your restaurant with.

  • Business line of credit: A business line of credit is a bit like a credit card with a higher credit limit. You can draw from it as needed, and as long as you pay back what you owe, you’ll have access to the full amount of capital again once it’s repaid. Business lines of credit can serve as extra capital you can use to cover unforeseen expenses as you build out your franchise restaurant.

  • SBA loan: The holy grail of business loans is the SBA loan. This type of loan will give you the highest loan amount at the lowest possible rates. Keep in mind that these loans are very competitive, so you’re going to want to have your financials in order before you apply.

Step 7: Open for business

With financing in your pocket, your franchise agreement signed, and your restaurant in good working order, you’re ready to open for business. Your franchisor may arrange a grand opening for your business to drum up some excitement. You’ll also probably have to go through some corporate training to better equip you to operate your franchise. Then it’s about getting into the day-to-day of operating a business.

Your franchisor will lay out the basics of how the business should operate, but it still requires grit, determination, and attention to detail to run a successful restaurant.

The bottom line

If you’re ready to run your own restaurant, a restaurant franchise is a great way to get started. The roadmap is already laid out for you, and you can attract customers by being a familiar, welcoming face in a sea of options. What’s more, if you have greater aspirations, starting with a restaurant franchise will teach you the ropes from organizations that have already had lots of success in the restaurant game. There’s no better way to learn.

If you’re looking for inspiration on what type of franchise to open, these 10 restaurant franchise opportunities are a good place to start.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Business Ideas for The Post-Covid World

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Are you looking to get out of the daily 9-5 grind that you’re stuck in? Maybe you’re not but better ideas have crossed your mind? Or the idea of being your own boss is simply too tempting to pass up?

Luckily, in a world where tech is at the forefront of a lot of industries, it’s easier than ever to go your own way. You don’t need a premises to open a shop, just the products and a website. You don’t need an office space to be a secretary, just a reliable Wi-Fi connection. You don’t need to move to LA to make music friends, just your home set up.

As the saying goes, restrictions breed creativity, which was proven in the lockdowns. A lot of good ideas came about, and the best stuck. We’re running down a few ideas that could prompt you to get out there on your own and make something of yourself. Read on for all the details of the best industry ideas that came out of lockdown.

Influencer

Don’t scoff. Depending on how you do it, there is a lot of skill and a lot of money in influencing. It’s likely that you are only seeing one side of things, which is usually a well-lit photo of a coffee cup taken in the golden hour. But what if I told you that a lot of skills – creative and business – went into taking that shot. It might feature a product placement for a coffee company, it might be used as a networking opportunity to catch the eye of a brand or generate buzz. It might simply be used to market their own business.

And then there is the content itself, which encompasses everything from capture to edit. Filming, photography, editing, music, graphic design, and presentational skills are all part of making quality content. There are a lot of transferable skills in both.

You can use influencing to market your own business, or even start your own affiliate blog, which serves as a site where you can showcase your favourite items for commission. A couple of hours’ worth of work a week can gain you a full-time employment salary.

Either way, getting the basics of the role of an influencer down will ensure that you can market just about anything else on your agenda, such as…

Food delivery
photo credit: Mart Production / Pexels

Hospitality

The hospitality industry had to go through a lot of changes through lockdown. Closing entirely soon gave way to take-out services, which eventually gave way to social distanced dining, but in that time, a lot of new ideas hit the table on how the food service industry could shake things up.

The most common idea was food through a window. A collection/delivery service where restaurants and cafes couldn’t serve food inside their premises so instead handed them over through a window. When things opened up again, the idea stuck. The roads are full of delivery drivers and cyclists for everything from the mom-and-pop café to the nearest fast-food supplier. It means less of premises and therefore less rent, or you can even do it directly from your home kitchen, making the gap between beginner and business a lot closer.

And then there is the idea of food trucks. You’d be surprised how much a food truck is making during the lunch hour alone. There was a class bias there once, where a food truck meant low quality, “junk” food, but street food is on the rise. It’s usually very high quality, tastes like nothing you’ve tried before since they don’t have to convince investors the masses will eat it, and they go wherever is most popular in the moment. You’ll see food trucks at the park, at festivals, outside clubs, etc. It’s also appealing to the customer because it’s usually more affordable. If you’re worried about menu pricing, take a look at this guide.

Freelancer working on a project
photo credit: Artem Podrez / Pexels

Freelancer

When the doors to offices started opening up again, the response was a resounding, “Do we have to?” Middle managers were surprised to find that employees all around the world where in fact enjoying working from home. There was more freedom, whether to work around external obligations like childcare or an exercise regime, or to simply stop for five minutes for a breather without worrying that your boss thinks your slacking off. And we’d be remised to mention that workers were reporting getting more work done at their own pace, because we know managers love productivity.

So, it only makes sense that, while working from home, some employees started wondering why they needed the middleman at all, and suddenly freelance became a viable option again. You can work at your own pace, avoiding all the money spending and polluting that comes with commuting, and be your own boss on top of that.

And it’s easy to apply a freelancing role to almost any skillset. To start, take a look at the role you’re in at the moment. If you can do it from a computer, is there anything stopping you doing it for yourself rather than a company? Think about applying a freelance position to the role you have for an easy transition.

However, if you’re trying to get out of the job, you’re in, there are a lot of options there too. It’s all about matching your skillset to the right freelance job. If you have skills in numbers, you can look into accounting. If you’re handy, you can get a van and get into trades like plumbing, carpentry, DIY, etc. If you have organizational skills, you can look into being a personal assistant to various clients. If you have writing skills you can look into ghost writing, copywriting, journalism, etc.

Learning online

Teacher

And there is another option if you have all these skills that you can use: teaching. Teaching comes in many capacities. The traditional means of teaching in a school takes a lot of education and internships before you are there in the room, but lockdown has unveiled a lot of ways it can be easier.

If that doesn’t appeal to you, you can use the best lesson of business life in lockdown: use video calls. Sure, traditional teachers and lecturers had to adapt to Zoom, and some didn’t do well there, but you’ve been using Zoom for at least a couple of years now, and you can use it to teach all around the world. Get hired as a personal tutor or put university study groups together to give more personal tutoring to those who are willing to pay for a helping hand.

And, going back to the influencer’s …influence, a lot of online courses are popping up on big social media accounts. You can record a curriculum of your chosen topic and sell access to it for anyone who is interested.

The best part about this is that you can sell courses on just about anything, be it fitness regimes, makeup tutorials, cooking, DIY, or university subjects like social sciences and literature analysis.

If you can market yourself as a reliable source in your field of study, you can record everything you know in some simple, easy to digest content, and put it behind a paywall like Patreon.

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5 financial tips for millennial business owners

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Money matters

This content should not be construed as financial advice. Always consult a financial professional regarding your specific financial situation.

In 2017, I wrote an article about financial tips for millennial business owners. Five years later and two years into the ongoing COVID-19 pandemic, I was surprised to find that most of the original advice still holds true today. However, some changes are worth noting that will better empower millennials to succeed personally and professionally with their finances.

Five financial tips for millennial business owners

Here are five things today’s millennial business owners should consider. We will look at each tip in more detail.

  1. Pay down and pay off outstanding debt.
  2. Work alongside a financial adviser.
  3. Observe the money moves of Gen Z.
  4. Build an emergency fund.
  5. Establish Plan B.

1. Pay down and pay off outstanding debt

My original article emphasized the importance of getting out of student loan debt. I mentioned suggestions for managing that debt, like lowering student loan bills through better repayment or refinancing plans and making loan payments on time. Hopefully, doing these things would make it easier for millennial business owners to financially plan to start a business.

However, according to Bank of America’s Better Money Habits Millennial Report, student loans now only account for 25% of millennials’ debt. The Winter 2020 report examines the precarious balancing act that millennials have with outstanding debt. And this debt is no longer limited to student loans.

The reason? Millennials are no longer twentysomethings. Millennials began turning 40 in 2021. The report shares the various types of debt that millennials carry in middle age, including auto loans (40%), credit card debt (37%) and mortgages (36%). Each makes up a higher percentage of debt than student loans.

Further, the report addresses the worries that millennials have surrounding their debt. Those surveyed say that having debt keeps them from reaching professional and personal milestones. Millennials today feel like they can’t or can’t yet fulfill the following goals:

  • Buy a first or nicer home (42%).
  • Save for the future (40%).
  • Welcome children or grow their family (21%).
  • Get married (21%).
  • Start their own business (19%).

Despite these grim percentages, millennials are not giving up.

The COVID-19 pandemic has impacted the American workforce with the Great Resignation. Millions of workers are quitting their jobs, with a January 2022 study from Cengage Group citing 38 million workers who resigned in 2021.

Quitting does not mean millennials do not plan to work again. Instead, they are taking back their power. Ninety-one percent quit their jobs to make more money, 82% are reconsidering priorities amid the pandemic and 81% wish to pursue another passion or career path and are reskilling appropriately.

For many millennial business owners, relying on traditional financial tips like refinancing, budgeting, and making on-time payments isn’t enough to get entirely out of debt. Resigning from a job where you feel stagnant, or experience stagnating wages is a critically important next step for paying off debt and revitalizing your career trajectory.

2. Work alongside a financial adviser

Couple holding hands with a contract and pen on table in front of them

No matter your stage in running a business, every small business benefits from working with a reliable financial adviser.

What can a financial adviser do for you? These advisers assist millennial business owners in making sound financial decisions. An adviser is well-versed in financial literacy and understands planning in certain and uncertain times of economic stability. Many also work with niche-based entrepreneurs, like those within the FIRE (financial independence, retire early) and HENRY (high earner, not rich yet) communities.

Best of all, millennials can even work alongside a millennial financial adviser if they choose.

If you’re currently on the hunt for one, check out this roundup on Business Insider of the 23 most influential financial advisers for millennials.

3. Observe the money moves of Gen Z

Millennials and Gen Z “allegedly” don’t like one another very much. Something about a TikTok dance? I digress. Millennials can learn from individuals at all stages of entrepreneurship, including the class of creators that makes up Gen Z.

How exactly does watching the entrepreneurial moves of Gen Z translate to financial advice?

Gen Z came up in a world where many cheaper tools are at their disposal. They are natural social natives that utilize digital platforms to build their brand.

Watch which tools they use to build their business and how they save money through using them. A good example is observing the platforms they use, like Square to accept payments and Etsy for creating an ecommerce presence. These tools are cost-effective and allow Gen Z to focus on their business. Take a few notes if you haven’t started already, millennials.

4. Build an emergency fund

If business owners have learned anything from the COVID-19 pandemic, it is the importance of having and maintaining an emergency fund.

Emergency funds are exactly what they sound like: three to six months’ worth of expenses set aside to be used in the event of an emergency. This emergency can be anything from a pandemic to a natural disaster. Having an emergency fund means having the ability to cover an unexpected expense without taking out a loan or using a credit card with a high-interest rate.

Three additional pro tips I have for building an emergency fund are below:

  1. If you withdraw a certain amount from your emergency fund, remember to pay it back. Ideally, do this as quickly as possible.
  2. Use this fund only in the event of an actual emergency.
  3. Add to an emergency fund regularly. Treat it as you might a retirement fund. Strategize with the help of a financial adviser as to what this fund’s maximum contributions might look like every year. Then, add to the fund accordingly. Too often, emergency funds are viewed through a one-time lens. Business owners should set up the fund in a safe space like a high-yield savings account and keep contributing funds to it over time.

5. Establish Plan B

Plan B was in the original version of this article, and I’m using it to conclude this updated list of financial tips for millennial business owners.

Having a Plan B is essentially creating a backup plan for your life. The phrase is often used negatively as if to say that because a particular business venture didn’t work out, you can’t be an entrepreneur again. That’s not true. Having a Plan B means having a safety net for every good and bad “what if?” scenario.

If something doesn’t work out now, you have options, and Plan B will help you find and pursue them.

This content should not be construed as financial advice. Always consult a financial professional regarding your specific financial situation.



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How to Kick-Start Your Online Clothing Resale Gig

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With the recent rise of resale apps like Depop and Poshmark, the idea of selling old clothes online is becoming more fashionable. Many people have turned clothing resale into a lucrative side gig or even a full-time job, gaining thousands of followers and making dozens of sales per week.

The secondhand-clothing market is projected to more than triple by 2030, according to a 2021 study by reselling platform Mercari and research firm GlobalData, as more fashion enthusiasts clean out their closets and search thrift stores to find valuable pieces to resell.

But whether you have a collection of band T-shirts or office attire, finding success on these platforms takes time and effort. Before diving into your closet, there are a few things to know.

You set your prices

Unlike consignment and resale shops, you can price items yourself on an online platform. Before listing a piece of clothing, look it up on multiple platforms to find out what it’s currently selling for. Depending on age, condition and brand, prices can vary widely.

You can also take advantage of direct messaging to negotiate with buyers and use features on apps like Depop and Poshmark that let you accept offers and create multi-item discounts.

“Sales can be sporadic,” says Andres Castillo of Los Angeles, who sells rare designer pieces through Depop, eBay and Instagram under the name Debonair Vintage. With rare or high-value items, it may take a while to find the right buyer, especially if you’re looking to break even or make a profit.

There’s a big time commitment

“I treat [reselling clothes] like my job,” says Eve Perez, a full-time student in Lebanon, Pennsylvania, who sells under the name Fitsfinesse and was featured in Teen Vogue in 2021 for her Depop success. She responds to messages daily, on top of taking product photos, sewing custom pieces, and packaging and shipping orders.

Communicating clearly with first-time buyers is essential: “If you don’t build that relationship, then you won’t get sales and returning customers,” she adds.

Although you have control over the prices, reselling online takes much more time and energy than selling to consignment stores. According to Depop, sellers who list consistently — around 15 items per week — sell more over time.

“It takes a lot of time and dedication,” says Castillo. Top-notch sellers have to learn to take eye-catching photos, understand shipping rates, negotiate over text, and research brands and trends to make the most of their inventory.

Overhead costs add up

Yes, you can set your prices — but there are a few overhead costs to factor in. Online resale platforms charge commission fees, plus additional fees for shipping through the platform or accepting payments through a processor like PayPal. Depop takes 10% of every sale and eBay takes 15%; Poshmark takes $2.95 for items under $15 and 20% for items over $15. PayPal, which integrates with Depop, Poshmark and eBay, charges another 3.49% plus 49 cents per transaction for payment processing.

On top of that, you’ll need to pay for packaging, label printing and possibly storing inventory including bins, hangers and shelves. Top sellers also recommend adding a personal touch in shipments, like free stickers, small accessories or a thank-you note. When all those costs add up, you may find that only higher-value items are worth listing.

You can cut costs by reusing shipping mailers and boxes, and printing labels at your local FedEx or UPS store instead of purchasing a label printer. Or, reduce shipping costs for buyers by bundling several items into a single shipment, which can motivate buyers to purchase more from your shop.

The social aspect is a priority

The most successful online resellers have one thing in common: a strong personal brand. Finding your niche and building a loyal following is essential to long-term success on a resale platform.

“It’s like Instagram, but for selling,” says Perez, who focuses on curating a consistent aesthetic and marketing her shop on social media platforms like TikTok.

Castillo grew his business by catering to a very specific market: vintage designer collectors, specifically for Moschino and Chanel. He sells across several platforms, using his Instagram to rent pieces out to stylists for photo shoots and red-carpet events. Though he targets a fairly small community, his narrow focus helps him reach his ideal buyers.

Other top sellers on resale platforms can be seen taking a similar approach, with shop themes ranging from band T-shirts to vintage gowns. “Lean into your personal taste,” says Castillo. Even if you don’t have a curated collection to sell, personalized packaging or a unique photo background can help your items stand out.

Both Perez and Castillo emphasize the importance of cross-linking social media platforms to reach as many potential customers as possible. Creating a dedicated Instagram Business account and following other online sellers and designers can help drive buyers to your shop. Check popular pages for trendy hashtags and add those to your posts. Making the time to promote on social media can help transform your closet into some serious income.

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