Want to Start a Flea Market

by Heather
(Holt, Michigan)

We want to buy storage units and sell the stuff in them like a flea market. We live in Michigan, jobs are hard to find and money is very tight.

How do you think we can get started?

YOUR ANSWER

First, let me say that I am not 100% sure what you mean by storage units, you might mean buying storage units as in premises for a flea market, or you might mean something else entirely!

If you find that the answer below does not adequately address your question, please add a comment to the page with more details of what you plan to do and I will be able to provide more detailed information for you.

As jobs are hard to find and money is tight, the first investment you should make in your new business idea is time and research.

Research the Market

Is there anyone else in the area operating a similar business? If so, go and check them out.

Check out the type and variety of stalls in the market. While you are there, just look around. Who are the stall holders customers, where are they coming from and what are they looking for?

How have the business owners set up their market? Can the customers browse easily through the goods and if so can you identify any methods the business owner has implemented to prevent or minimise shoplifting?

Do they have any special shop fittings (i.e. shelving units, tables or display units)? Do they have the capacity to offer credit and debit cards facilities or are they a cash only business? What hours is the business open and on which days of the week? How many customers come into the store while you are there, and how many of them actually buy something?

Does the business use print advertising or do they rely on foot traffic? Is it a stand alone business or is it a part of a larger market?

If there is not a similar business in your local area, it is probably well worth finding one or two in neighbouring towns or cities so that you can get a better idea of how the typical business model for this type of business works.

I would also recommend that you go more than once. Try visiting the business on different days at different times. You will probably find that there are peaks and troughs in the flow of customers through the business. The danger of only going once is that you might just hit a really busy time (or a really slow one), and if you base all your assumptions (i.e. profit estimates etc) on an artificial high (or low) estimate of customers; you will have problems before you even begin!

Research on Potential Stall Holders

Once you have established to your satisfaction that there are actually people out there that rent stalls in your market, the next step is to work out where you will get your stall holders from!

As I am unclear as to the size and scope of the operation you are planning, I am unable to provide any specific information about how to undertake this type of research but you might find some pointers on my page about identifying customers, and remember, you can add a comment to this page if you have any specific questions about this or any other issue in relation to your business idea.

Researching Premises

By the time you get to this stage, you should have a pretty good idea of what you are going to sell (i.e. stall space), where you are going to source your stall holders from, and who your stall holders are going to sell their goods to.

If you were going to sell through an established market, I would suggest that you contact the owner/organiser and ask them a few questions. Questions like:

• How much will it cost to have a stall,


• What if any shop fittings do they provide (i.e. trestle tables etc),


• Are the stall holders subject to any terms or conditions (limitations of what you can sell, opening hours etc),


• How often is the market open and for how long,


• Can you leave your stall set up when the market is not open or do you need to set up every day,


• If your stall can be left when the market is not open, what security does the market have in place.

This is not a complete list of questions by any means, but I hope it gives you an idea of the type of questions you would need to ask.

If you intend to open a market of your own, you need to be able to answer the questions of your potential stall holders.

You will also need to source premises. Do you plan to buy or lease? There are advantages and disadvantages to either option. Again, it is tricky to get into specifics without more information, but you might find some of the information on my page about researching premises.

Write a Business Plan

Before you invest any cash in your business idea, write up a business plan! Just going through the process will help you to gain clarity about how you intend to operate and what you are trying to achieve with your business. I can’t stress this enough – it is the process rather than the finished document that is important!

Even if you decide to skip every other task recommended on this site before you open your business, please, please, please, take the time to develop a business plan, and when you are done take it to an Accountant and ask them to take a look at it for you. Some Accountants offer a free first visit, but even if you can’t find one, get professional advice on your plan. A few hundred dollars spent now could save you thousands in the future!

An Accountant can also provide you with detailed information about the legal requirements to start a business in your jurisdiction.

What Now?

You will find general information on each of the steps in starting your own small business within the pages of this site. But if you have any specific questions or need clarification of anything on this page, please post a comment on the page or submit another question.

I wish you the best of luck with your business idea!

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