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Whether you’re preparing to sell your shop soon or simply want to strengthen its long-term value, there are proven steps you can take to boost what your business is worth. Buyers want to see not only strong financials but also evidence that the shop is well-run, has growth potential, and offers a smooth transition for new ownership. Here are three key ways to increase the value of your resale shop:
A resale shop’s value is directly tied to its numbers. Clear, well-documented financials give buyers confidence and can justify a higher asking price.
Keep accurate books: Track revenue, expenses, and profit margins with monthly P&L statements.
Control costs: Monitor payroll, rent, and other overhead to ensure healthy margins. Are your expenses aligned with industry standards? If not, study them and see where you can improve (example, rent should fall between 5-12% of gross sales, total payroll 20-30%).
Show growth: Highlight consistent sales increases or seasonal trends that demonstrate sustainability. What have you done to increase sales? Plan ahead for the holidays to boost sales with stocking stuffers and add-ons. Build this into your marketing plan.
Buyers will pay more for a business that proves financial stability and potential for future profit.
A shop that “runs itself” without the constant presence of the owner is more valuable. Buyers want to step into a business with minimal disruption. Document operating procedures: From intake of consignment items to pricing, markdowns, and payouts, create a clear procedure manual.
Train staff: Cross-train employees so day-to-day operations aren’t dependent on one person.
Use social media: Facebook, Instagram and other platforms are a great way to show new arrivals and create urgency. This widens your reach far beyond your customer base. Live shows create real-time sales and can help move product fast.
Well-documented systems reduce risk for buyers and increase the likelihood of a smooth handover.
Your resale shop is more than just a place to buy and sell - it’s a local brand with customer loyalty and community ties.
Build a strong customer base: Capture customer emails and texts for marketing campaigns. Send weekly emails and texts.
Leverage social media: Tell your store’s story and highlight community involvement. Customers love to feel connected.
Charity Events: Resale shops are community-driven businesses, and hosting a charity event can do more than just raise funds for a good cause. It can also boost your store’s visibility, strengthen customer loyalty, and ultimately increase the value of your business in the eyes of both customers and potential buyers. Also, never miss an opportunity to send a Press Release to your local paper about your event. They often will pick up stories like this at no cost to you. A shop with repeat customers, strong branding, and multiple sales avenues is more appealing to potential buyers - and worth more.
By focusing on financial strength, operational systems, and customer loyalty, resale shop owners can significantly increase the value of their business. Even small improvements in these areas can lead to a higher sale price and a faster, smoother transition when it’s time to exit.
This article written by Vena Holden, co-owner of Small Biz Exit. Contact Vena or Teresa at smallbizexit@gmail.com for a free consultation or to be added to our mailing list.
