The business I would start

If there was just more hours in the day and money in the pot, I would start another business. I know I should stick with real estate because that is where I made most of my money over the years. And I know real estate investing is the smart money, with the least amount of work. But, I am addicted to business. So what would I start today.

I would start a consignment resale yard. I know boring, but perfect for our times. I would call it
“Wheels Consignment Sales”
If it has wheels you can consign it here for re-sale.

Cars, Boats, RVs, Equipment, Trailers, Etc.

I would rent a sales yard hopefully with a office and shop on it. Some thing around 4 acres, (minimum of 2 acres) fenced of course. I would put up a pole sign and repeat the sign on the building and fence.

Customers could consign anything on wheels that they own for resale. The price would have to be reasonable. After 90 days the owner would have to agree to lower the price a pre-determined amount every 30 days until the unit sales or pay a storage fee. We would charge a fee of 35% of the first $1,000

20% of the next $2,000 and 10% there after. So a item at $4,500 the seller would pay a 20% sales fee. A $10,000 item would have a sales 14% fee and so on.

The market is huge. Lots of folks and businesses have items sitting around ready for you to sell. Lots of people need cash or want to liquidate excess rolling stock. People every where are looking for a way to save money.

What will this yard sell: RV's, construction machinery, fork lifts, lifts, utility trailers, stock trailers, storage trailers, water skis on trailers, boats on trailers, mobile homes, tractors, trucks, vehicles etc.

To start this business I would need.

1. A sales yard of 2 acres or more on a busy highway just out side the city limits, with good visibility.

2. A sales office

3. A storage shop or storage containers for easily pilfered items.

4. Insurance

5. A sales tax permit, and a fed tax ID number.

6. Credit card processing and other bank relations

7. Financing for customers

8. A salesmen or two as needed

9. A make ready yard man (seller pays for this in advance or customer pays when sold)

10. Various licenses to sell the different products, car dealer, RV dealer, etc.

11. Advertising to let people know to bring their consignments.

12. A few items to seed the inventory.

13. A web site to help promote wide area sales.

14. Consignment agreements.

15. Sales paperwork.

16. Various valuation books.

This is a brief outline of what a consignment yard needs to operate. Considerable thought needs to be given to all the possible things that could go wrong and covering them in paper work or insurance. For example making sure the seller knows that they are responsible to maintain the insurance on their item until it sells. Or, getting lien releases and as is sales documents completed correctly.

I think this business could be started for somewhere around $25,000 and has the potential to make over $100,000 a year with growth to $500,000 a year. The business should net 3% to 5% of sales. Your goal should be to get to $3 million in annual sales a quickly as possible.

I would use the fees earned from a sale as follows:

• 33% to pay the sales staff.

• 33% for over head operating expenses, including advertising.

• 34% for profit and improvements.

The key to success will be.

• A good high visibility, easy access location.

• Good sign-age.

• Good aggressive commissioned salesmen.

• Not excepting junk or over priced consignments.

• Insisting on price reductions after 90 days.

• Charging market rate storage fees after 90 days.

• Constant advertising and or promotion to keep items coming and going.

Additional money can be made from:

1. Storage fees.
2. Make ready.
3. Buying items outright from motivated sellers.
4. Repairs.
5. Transporting and delivery fees
6. Financing fees or interest.
7. Rentals.

The advantages to this business are.
Low overhead.

• Limited competition.

• Low start up cost.

• Low inventory cost.

• Growth potential.

• Limited risk

• Low start up cost.

If some one is interested in doing this with me in the San Antonio, Texas area contact me. I would not want to start with less then $50,000 so if you are monetarily challenged I will not be able to work with you. At my age and with my other business interest I do not want to poor boy it. I can not be tied down all day with sales, so I will want to start with a salesmen / manager. I am busy investing in real estate and that ties up my current funds. If I do not find a partner to do this with in the next twenty four months I will do it on my own.

I have stayed away from partnerships over the years because they can be a pain in the arsse. I do have a partner in my new real estate ventures. I am going back to partnering (choosing them carefully) because I can do more, faster, and at 62 years young speed seems important. Also, should I not be able to attended to business for some reason there will be some else to carry the load. As my father lived to 93 years the likely hood is that I will be knocking heads for some time to come, but one never knows.

So there is my Idea maybe you can start this in your town. Or feel free to beat me to the punch right here in the Alamo city.