Make Money With a Storage Auction Business – 5 Key Points to Consider Before You Start - The recent T.V. shows about storage auctions have generated a buzz of interest in the possibility of making some quick cash from what looks like an easy business to get started in. Well that much is true; it is easy to get started in, but it gets much trickier from there. If you are interested in taking a look at the storage auction business there are some things that you should consider before you begin.
Make Money With a Storage Auction Business – 5 Key Points to Consider Before You Start
By Dan Bondurant
Feb 15, 2011 - 6:52:03 PM
The recent T.V. shows about storage auctions have generated
a buzz of interest in the possibility of making some quick cash from what looks
like an easy business to get started in.
Well that much is true; it is easy to get started in, but it gets much
trickier from there. If you are
interested in taking a look at the storage auction business there are some
things that you should consider before you begin.
Here are 5 key factors that may help you get started.
You need some cash – You probably
already know this if you have been watching the shows, but it is worth
mentioning again because you may be short on liquidity. Start by sorting through your own stuff;
you probably have some things you could sell for a quick profit and parlay
your new found cash into your first storage unit. As your business grows having cash is
going to be your "life blood" so don't spend it all on your
bills. I would recommend building
up your cash reserves to a certain point (i.e. $10,000) and take anything
over and above that for your salary on a monthly basis. So if you end up with $14,000 at the end
of the month, take $4,000 for yourself and leave the rest for the
business.
You need a truck or a trailer – The
storage facility is going to want you to clear out the stuff as soon as
possible – usually within 48 hours.
I prefer to have a flatbed trailer because you can load it up from
any point around it. The drawback
is that you have to tie everything down, but it also makes unloading
easier too. You will need a dolly,
bungee cords, tie downs, and blankets to keep from damaging your new
goodies when you move them.
You need a place to sort and store
your inventory – Luckily for me; I have a 3 car garage and I keep the
small bay clear for my stuff. I can
put on my heater in the winter or my swamp cooler in the summer and sort
out my inventory in comfort. You
can do the same even if you only have a 2 car garage, just make some
room. Your new storage auction
business should be important enough to maybe park the car in the driveway
while you make some money to pay it off.
If you don’t have a garage perhaps a friend will help you or you
can get a storage unit of your own.
Have a plan for selling the stuff
before you buy it – It isn't going to do you any good to buy some
great merchandise for cheap if you can't sell it and make a profit. I know it seems like an obvious point
but you would be surprised how many people get caught up in the auction process
and forget about the selling process.
Once you have been in the business for a while you will have some
outlets for selling specific things you acquire (i.e. guns, jewelry,
collectibles) but what about everything else? You can open a thrift store or go to a
swap meet every weekend, but I recommend e-bay to move most of your
inventory and craigslist to sell some of the bigger – high dollar
items. Everything else can be given
to charity or even just taken to the dump.
Once you have made your profit, don’t step over dollars to make
dimes. Get rid of the little things
as quickly as you can and move on to the next storage auction.
Be ready to put in some hours – Even
though you can do this business as a part time endeavor, you should be
ready to put in the hours. The good
news is that you can do it at your own pace and on your own schedule. It takes time to sort through everything
and sell the items individually, but you will make money even though there
is a "time" trade off.
Personally I prefer to spend a little more time to guarantee an
income than take a risk that requires no work and possibly end up with
nothing.
Well, there you have it.
There is much more to learn about the actual "business" of
storage auctions, but you should consider all of the above points before you go
out and buy your first unit.
Disclaimer: Dime-Co.Com is an online information article and video article network. All articles, video articles, comments, and other features herein are for informational purposes only and are provided "as is" without warranties, representations or guarantees of any kind. The views and opinions expressed in an article, comments, links or blogs are the author's own, and not necessarily those of dime-co.com's owners. For full disclaimer, please read our TOS.