Funding Your Startup by Thrifting
Before any of the products I’ve launched (like this, this, or this) became profitable, I got them off the ground in various ways, including, personal savings, credit cards, and angel investors. I have a background in software development, so the majority of my expenses have been for design work, raw materials, data entry, web hosting & services, etc. — but I know plenty of folks who have launched a product and had to pay for all of those things in addition to software development. This adds up…quickly!
If you have a product you’re passionate about and money in the bank, by all means, launch it if you’re comfortable! But if you’re concerned about the cost, there are a few things you can do to help. One way is to spend a few hours a week at thrift stores, yard sales, and auctions buying and reselling things you’re familiar with or have done the research on to know you can turn a profit. This can, pretty quickly, give you the pocket change needed to launch your dream.
I started my reselling hustle because I want to build tools for online resellers and I felt the best way for me to understand the industry was to be a part of it. Luckily, I also happen to enjoy it as a hobby and that is an important part of it. I know folks that enjoy meeting people and driving, thus have funded their startup by driving for Uber. I truly love the hunt while at a thrift store or auction and I’m able to profit from a hobby I enjoy.
I believe it’s important to begin by playing to your strengths. I mostly resell upscale men’s clothing and vintage electronics, both of which I’m interested in and knowledgeable about. The following are just a few items I’ve sold in the last 60 days. My average cost per item was 9 dollars.
As I mentioned above, I started reselling items I was already knowledgable about. I’ve expanded my expertise by spending time learning about other lucrative products and brands, mostly through resellers on YouTube. A few of my favorites include Ralli Roots, Side Hustle Pros, Pure Hustle Podcast, ThriftSchool, and GaryVee’s Trash Talk.
While you’ll likely want to spend every free hour working on your product (and if you feel this way, you’re absolutely on the right track) keep in mind that the majority of well-known early-stage companies out there are likely spending a ton of time raising money. While they’re out raising money from angel investors and venture capitalists, you’ll be spending a few hours a week reselling to self-fund your idea. Personally, I believe it’s a better option than funding an experiment on credit cards or limited personal savings as the risk behind nearly every new product is tremendously high.
Running an eBay (or Mercari, Poshmark, etc.) store is also an absolutely amazing way to gain experience dealing with customers. I wrote about this here.
This isn’t a step-by-step guide on how to resell, and I’m certainly not claiming that reselling is easy. This post is simply meant to offer up a suggestion few consider when determining how their product or service idea should be funded. I wish you the best of luck and if you do end up funding your project by thrifting, please reach out to me as I’d love to hear about your experience.
