A consignment shop business plan is built around the split: you earn only your share of each sale, so your plan has to prove that share covers rent, labor and payouts at a realistic sales volume. Below is a consignment store business plan template with every section, plus a hypothetical monthly model and break-even scenario.
For the steps of actually opening, read how to start a consignment shop. This page is the written plan.
1. Executive summary
One page: what you accept, who consigns, who shops, your split, where you operate, startup cash needed and your break-even target.
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Open the Boutique Business Plan Template →2. Business model
In consignment, the consignor owns the item until it sells. You display and sell it, keep your agreed share, and pay the consignor theirs. That means little upfront inventory cost, but more tracking and payout work. If you would rather buy goods outright, that is resale, covered in the thrift store business plan.
3. Consignment categories
Decide what you take and what you refuse: women's apparel, kids, designer handbags, furniture, bridal, sporting goods. Narrow categories are easier to price and easier to market. Write a short "we do not accept" list too.
4. Target consignor
Who has the goods you want? Busy parents clearing outgrown kids' clothes, professionals with lightly worn designer pieces, families downsizing homes. Describe where you will find them.
5. Target shopper
Describe the buyer separately. Your consignors and shoppers are often different people, and you need to market to both.
6. Consignment split assumptions
Splits vary by shop, category and item value. Rather than copy a number, model a few options.
| Hypothetical split (shop / consignor) | Shop share of a $40 sale | Consignor payout |
|---|---|---|
| 50 / 50 | $20 | $20 |
| 60 / 40 | $24 | $16 |
| 40 / 60 | $16 | $24 |
Some shops use a sliding split, giving consignors a larger share on high-value items. Whatever you choose, your break-even math has to work with it.
7. Intake policies
- Appointment or drop-off, and how many items per visit.
- Condition standards (clean, current season, no damage).
- Seasonal acceptance windows.
- How items are logged and tagged to each consignor.
8. Markdown policy
Write a clear timetable, for example full price for 30 days, then a set percentage off, then a deeper cut. Share it with consignors upfront. The markdown calculator helps you see what each step does to the sale amount.
9. Unsold inventory process
Decide what happens at the end of the contract period: consignor pickup within a window, or items become the shop's to donate or clearance. Put it in writing in your consignor agreement. Have an attorney review your agreement, since this plan is not legal advice.
10. Consignor payout process
Choose a schedule (monthly is common), a method (check, transfer, store credit) and a report consignors can read. Many consignment POS tools track consignor balances for you. Payouts are a cash flow line, so plan for them.
11. Revenue model
Your revenue is your share of consigned sales, plus any intake fees or sales of goods you own outright. Some shops add a rack of new wholesale accessories for stronger margins.
12. Ecommerce and storefront considerations
Standout pieces, especially designer bags, can sell online. Listing one-of-a-kind items takes photos and time, so decide which items go online. Shopify can connect store and website sales, though you may need a consignment app for payouts.
13. Marketing
- Consignor recruitment: local groups, referral credit, seasonal intake reminders.
- Shopper marketing: new-arrival posts, designer drop days, email.
- Reviews and a complete Google Business Profile.
14. Operations
List daily tasks: intake appointments, pricing, tagging, floor restocking, markdown rotation, contract expirations and payouts. Estimate hours for each.
15. Hypothetical startup costs
Hypothetical example only.
| Line | Hypothetical amount |
|---|---|
| Lease deposit and first month | $5,000 |
| Fixtures and racks | $4,500 |
| Consignment POS and tags | $1,500 |
| Signage, formation, agreements review | $2,500 |
| Marketing launch | $1,500 |
| Cash cushion | $7,000 |
| Total | $22,000 |
16. Hypothetical monthly sales model
Hypothetical. 25 items sold per day at an average $32, over 26 days = $20,800 in gross sales. At a 50/50 split, the shop keeps $10,400 and $10,400 goes to consignor payouts.
17. Break-even scenario
Hypothetical. If fixed costs are $9,000 a month and your share is 50% of sales, you need $9,000 / 0.50 = $18,000 in gross consigned sales each month to break even. Run your own scenarios in the break-even calculator.
18. Milestones
- Consignor agreement finalized and reviewed.
- Consignor recruitment starts six to eight weeks before opening.
- Opening with full racks.
- First payout cycle completed on time.
- Break-even month target.
Consignment store business plan template
| Section | Fill in |
|---|---|
| Concept | We consign [categories] for [consignor] and sell to [shopper] in [town]. |
| Split | [X] / [X], contract length [X] days. |
| Markdowns | [X]% off at day [X], [X]% off at day [X]. |
| Unsold items | Pickup within [X] days or [donated / clearance]. |
| Payouts | [Monthly] by [method]. |
| Money | Startup $[X]. Break-even at $[X] gross sales per month. |
Still naming the shop? See my consignment store names. For more planning structure, the general boutique business plan covers the basics.