7 Steps To Start An Estate Sale Business

Introduction

The secondary retail market is on the rise and estate liquidators are riding this massive wave of interested consumers as we continue to see inventory shortages in firsthand consumer goods across many categories from toilet paper and cleaning supplies to automobiles and chicken wings. Many of our consumer supply chains have been disrupted throughout the U.S. and anyone in the estate sale business is catching a big break as demand for second-hand goods skyrockets. So, what are you waiting for… Follow the simple steps below and start your very own estate sale business today!

We won’t waste any of your time — let’s jump right into details. We can offer some great ideas and guidance from firsthand experience, but it is important to note: we are not legal advisors so you will want to consult with a local attorney when it comes to topics like organizing your legal entity within your state, taxes, and other legal topics like contracts and agreements. However, at the time that this article is being written, there is no federal regulations or licensing that governs the estate sale industry which means it is super easy entry for anyone with the business acumen to do it.

The Steps

Listed below are the 7 steps to starting your very own estate sale company. We will take just a brief moment to glance at each step. You can always reach out to us if you would like more details about any of the steps below.

Select Your Business Name: Decide on a name that stands out. One that is your very own. This is important because your business name is going to become a brand that you want to be proud of. Just for a moment, consider this. You have just been blessed with a child. You need to name this new addition to your family because you need to get a social security number, monogrammed clothing and bags, and all the many other things parents do to celebrate this blessing. As your child grows, he or she will go to school and make friends. He/She will earn grades on a grade report that will allow them to place in higher grades and classes. They will exercise and try out for sports only to make the cut if they can be better than all the other kids trying out. Just like you invest your time, energy and thought into raising a child… a business is very similar. It will become its own entity with its own character and qualifications all based on the decisions you make and how you passionately pursue opportunities while taking care of your clients. You will need a business phone number, website, service agreements, and so much more all to be customized to your business name and brand.
Form Your Business Entity: There are many types of business entities including Self Proprietorship, LLCs, Partnerships, Corporations, DBAs, and more. There is not one right way to do things. If you don’t know where to start you can check out resources like LegalZoom or simply make a quick call to your local attorney’s office and ask for some guidance. They are usually happy to speak with you because they would love to earn your business. Once you have decided you can use either option to form your legal entity. Usually, this will come with a small setup and registration fee, and keep in mind, the cost can vary based on how much help you want and how fast you want it done.
Contracts and Service Agreements: Good contracts make great friends. Of course, it is not your goal to make friends. If we wanted to make friends, we would go to a social gathering… The point is that you want to have a great relationship with your clients and that starts with the expectations you set upfront. The best way to do this is to outline it in your service contract and other documentation that you may provide along the way. Don’t wait for a problem to arise to create a new standard of practice. This may leave your client with the impression that they were targeted or taken advantage of. We know that’s not the intention, but you cannot control the emotional aspect of the client. Do your best to set the expectations upfront. You may ask where do I even begin? Well, I am happy to tell you that this industry is HUGE and there are some great resources to help with this from industry associations to personalized business coaches. Perhaps you can take a look at some of your options below.
1. Industry Associations: The “National Estate Sales Association” (NESA) is a non-profit organization with many helpful benefits that will help you with fundamental industry knowledge. Learn about many of the benefits NESA offers — nesa-usa.com.
2. Personal Business Coach: Lisa Kroese has been in the estate sale business for nearly a decade and has conducted hundreds of estate sales. She is turning all of her business knowledge and tricks of the trade into instruction for people like you. Visit her site to access great tools or even book some personalized training at estatesalecoach.com. She is sure to help you and your crew with some of the most challenging situations that you may run into!
Software, Systems & Processes: The estate sale industry has been lacking management tools for far too long. ProSale has changed all of that. With an estate sale management system, you will create efficiency and standards in business that will allow you to excel past the competition with things like printed price tags, barcodes, point of sale systems, settlement statements, suggested pricing, integrated email marketing, synchronized online estate sales and so much more. Make sure to establish your set of tools that you and your whole team will be able to use. The right system will save you tons of time and headaches.
Marketing Plan: This section really should be an article all on its own so I will be brief here and you can reference some of our other articles for more details and help when it comes time to dig in on these topics.
1. Website — You need to think of your website as the digital storefront for all those window shoppers out there. Your website does not have to be the fanciest site, but it is important to be clean and clear. There are many great tools to manage your own website or you could enlist the help of website providers like Virtual Lemonade, Renew Power, JW Webwork, or ProSale.
2. Social Media — You don’t have to be everywhere, but you need to be somewhere. So many people communicate through social media. Make sure to sign your business up on Facebook, Instagram, or one of the many other social media companies out there to ensure you are building depth in your “digital ecosystem”. People are more confident when they find your company in multiple locations online.
3. Listing Sites — There are many estate sale listing sites with great benefits to help you get the word out about your business. One of the best, offering great value and visibility for your money is EstateSale.com. You will be able to list your company and your sales which will drive lots of traffic your way.
4. Local Networking — One of the best tools for selling and advertising your business is… yup, you guessed it — YOU! Join your local Chamber of Commerce or BNI groups to start meeting other great local businesses. This is a great way to get some local referral traffic.
Pick Your Market: Evaluate your market so you are familiar with your local clients. The industry is driven by the four D’s (death, divorce, downsizing, and debt). You are sure to serve clients facing all four types of situations, but it will help you to know what you are going to face most often in your market. For example, are you in an area where lots of families have adult children? Perhaps you will see more elderly clients looking to downsize to smaller apartments or townhomes. These individuals are going to have a lifetime of stuff stored away throughout their large family homes. Learn your market so you can control the conversation during your meet and greet.
Your First Estate Sale: The most important thing here is to remember that you are building a customer base and it starts with your first client. This may sound strange considering there is a high likelihood that your first client may be a family who lost their parents or a beneficiary who has no interest in the “estate sale business”. Nevertheless, they will have an experience with your company and it is your top priority to leave them impressed with the experience that they had with you. Be quick in your response to their needs, make sure to be clear about everything along the way, and last but not least… treat them with respect and dignity. This will be the beginning of your stellar reputation.

Conclusion

The estate sale business has been around for decades, but we are seeing double-digit growth year after year. This growth is driven by many things from U.S. supply chain disruption driving more demand for used goods to a massive baby boomer generation reaching retirement age. However you view this, it is a great industry to launch your new business. This article is sure to help you do that!

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