Starting a Seasonal Retail Business

Have you ever noticed how certain holiday items tend to fly off the shelf quickly? In some cases, extreme shortages can cause quite a bit of mayhem for the retailer that still stocks those items. Of course, considering they are able to charge full price for their items, I'm sure they're not complaining.

Can you imagine a business that deals in nothing but these hot items?

Well the truth is, there are many seasonal businesses that follow this exact strategy and make a decent profit doing so. Even though it means that they've got to completely change their inventory and displays several times a year, they've undoubtedly found a niche that works.

Obviously, these seasonal businesses must make arrangements to handle extreme volume for short periods of time. This can be a problem from an employee standpoint. Their business is going to be either nonexistent or excessive. It's tough to manage staff around such highs and lows.

For those that can deal with a schedule like that, there's a lot of money that can be made in a very short time around a major holiday. If you are able to stock very popular items, you can rest assured that your entire inventory will sell out quickly. Of course, you always run the risk of over buying or under buying certain items that will either result in leftover inventory or your customers walking away empty-handed. Experience plays a big part here. Once you've done this for a few years, you will have a much better feel for inventory control.

Although there are a few major retailers that have built their business around seasonal items, the bulk of seasonal retail is still carried out by small independent retailers. Many have been doing it for years and have got it down to a science.

If you're considering starting such a venture, you might want to check out your local flea market. For a reasonable fee, you'll be able to rent a booth by the day, weekend, or month. A flea market is a perfect venue for this type of business because it provides high pedestrian traffic and people that are ready to buy.

Your initial investment is going to be significant because you're going to have to purchase an initial inventory. Nothing looks worse than a flea market booth with only a few items. The secret here is finding a reliable supplier that can deliver on time at a great price.

Once you've got your booth set up and your suppliers sourced, you can concentrate on high-volume sales around major holidays. If you end up with unsold inventory, simply store at and keep it for next year.