What is Consignment?
I found this idea from our family friend. He is doing a Consignment type of Business. And I think it is a good start for aspiring entrepreneurs as well.
Not sure but he is like an agent or an affiliate marketer but on the next level? Haha!
He sells car that he doesn't own. But before selling it, his people will upgrade/customize the car or at least make it look brand new. Then it will be easy for him to sell the car on a much higher price than a secondhand old car.
For a aspiring entrepreneurs, I think the idea of selling the goods they don't own but getting a percentage of its profit is still a good addition for your savings right? And that savings will soon help you to invest more to your desired business.
Quite a few people do this, and if it's an item that is high value and there is a market then all is well. However, if the profit margin is low you have to weight up how much time is spent on the project and the potential yield. With cars it's hard because they don't hold their value unless they are limited editions, and the availability of spare parts.
Furniture does well though and I was watching a salvage show where they take furniture that would be discarded and renovate them, then sell them and split the profits between the owners and the person who renovated.