ReNew’s Mission:
Affordable Building Materials
C&D Waste Reduction
Creation of Affordable Housing
Your Mission
Poverty Relief
Skills Training
Historic Preservation
Housing Rehabilitation
Who? The Entrepreneur
Driven, committed, idealist
80 hours/week not uncommon in new business
Organized, with people skills, including supervision
Store organization (or lack of) will reflect time/energy of founder
Salvage stores attract all walks of life
Trades experience
Trades experience will lend credibility
The Vision
Share your idea with select stakeholders and advisors
Family, builders, other second hand stores, HFH
Find business advisor
SCORE, university business class
Visit other salvage stores
For-Profit and non-Profit
Compare and refine you vision based on site visits and
conversations
The Plan
Business plan
Sales numbers from other non-profit annual reports
Slog through it, work hard, resist urge to copy another UBM plan
HFH has resources for new ReStores
If seeking advise from other stores be specific and courteous
Not “I’m starting a store, do you have advice….”
Market Research
Introduce your business
Include trades people in your survey
Scope of business
Pick Hours – Perhaps only weekends to start
Don’t contract hours once you are open
Retail sales and Deconstruction/Soft strip?
Product line – Appliances? Soft goods? Lumber? Lead paint?
The Plan
For-Profit v Non-Profit
For-profit
Capital for buying inventory
Clear sense of product value and margins prior to opening
Architectural salvage may have smaller customer base
Non-Profit
Possible to begin as a program of another non-profit
Admin., fund raising, volunteers already in place?
Easier to get inventory with tax write-off
Insurance and Lump Sum Fees
Liability
Insure loss-of-business vs. inventory
Covers volunteers too- specify on application
Workers Comp.
Premiums are high; renew/rewrite during good sales months
Funding
Sources of funding
Friends, Family, Angel Donors and lenders
Cooperative funds, socially responsible lenders
SBDC loan guarantees
Start with what you can afford
Revise business plan for each new funding need
Postpone large capital expenses at startup
Credit will be based on personal guarantee at first
Grants
Solid waste districts, Redevelopment, Skills training, C&D waste reduction,
EPA
Have a financial cushion
Establish a line of credit
Publicity
Start as soon as you are sure you can proceed
Establish website/phone listings 6 months before opening
Search engine presence-Google your business’ keywords and
submit free listings to top matches
Word of mouth is always the best advertising
Create a generous budget for ads
You need customers and product
Many classified sections (weeklies) have low cost “for sale” ads-run
once a week
Publicity
Radio-30 second spots cheap, PSA’s cheaper, public access radio and
TV
Town Clerks (demo), bulletin boards, green building fairs, home shows
Statewide Business Exchange listings
Get T-Shirts etc. with logo for staff in-store and demo
Logo your truck and keep it clean
Select Store Location
Larger the better-10,000 sq. ft. inside is ideal
Publicize location in relation to known landmark
Donation/Receiving/Pick-up are removed from main entrance
Accessible to forklift/loading dock/overhead door at grade
Parking, yard storage, fenceable, handicap access?
Bathroom, office, poolroom, trash/recycling, hold area
All sales are on one grade/level
Lighting, heated, covered materials in yard
Policies
Materials Accepted
Never too much of one item
Standards will rise as store fills up
Consider lead policy (we HEPA vac. The whole store weekly & distribute
info)
Give donors alternatives when you say “No”
Trade/Swap/Store Credit/Bulk Discount
I suggest ‘no’ to all to keep staffers happy!
Sold
Paid in full, Pickup w/in one week, then restocked or storage fee
Equipment
Old store fixtures (shelves)
Carts, Pallet Jack, rolling ladder, appliance dolly, mover’s dolly.
Pick-up truck
Trailer
Forklift (after pallet jack!)
Pallet Racking, divided for door/window storage
Lumber trees
Toolbox and decon tools
Carpet/Vinyl tree
Policies
Hold
25% deposit (refundable as store credit) good for 49hours.
Some charge fee regardless of whether they buy.
Returns
Appliances, Power tools, Electrical 7 day w/receipt for store credit.
Measure first! Keep tape measures handy
Deliveries/Donation Pickups
Decide cost if any, range of travel
Contractors always receive free pickup w/in 48 hours
Store Layout
Wide aisles with generous end caps
Store Layout
Big things closer to overhead door
Store Layout
Double high items shelving
STORE LAYOUT
At least one aisle from front to back
SIGNAGE
Quality road- and store- front signage
¼ page flier
“What’s New”
Price
Start book with prices so all staff can price/quote a range
Memberships
Rotary
Chamber
BMRA
AIA
Contractor/Renovator
Recycling/Waste district
Green Builder
Socially Responsibility
Non-Profit Association
Evaluations
Sales numbers
Sales type
Customer surveys
Database
Email listserve groups
See business planner again and again
BE PREPARED FOR SUCCESS