No Income tax, no VAT, no money back, no guarantee. It's a lyric wholly associated with the stereotypical peckham market traders of Delboy and Rodney Trotter. Their antics down the market and in their Aladdin's cave of goods (flat) made for a very entertaining comedy. However, the reality is that this grass roots commercial business is the way many young entrepreneurs make their money as their starting ventures (Alan Sugar and Richard Branson to name a few). This is a very good way to get into the world of business as there are few, low start-up costs and the fun atmosphere with other like-minded people.
Before you begin
A good place to start before you set up shop is having a good idea of what you want to sell. Selling something that has a human element to it, like wooden carvings, or artisan products that have your personal 'stamp' on them will sell better than something simple and general. People looking for something a bit different will buy into these products and you will make good sales figures. The blog on the Guardian website (http://www.guardian.co.uk/money/2010/dec/04/the-market-stall-apprentice) should be of great help to you on this and many more general aspects of running a market stall.
Something you can make yourself is also a good idea as you can make more profit out of the product as there is less money going to middle-men who refine the goods that you sell on. You also have complete control over the exact composition of the products you're selling. This allows
you to directly source the materials and gives scope for making more profit as you find cheaper
alternatives to the raw materials that you usually use. A good rule of thumb is marking-up the products you sell by 3 or 4 times if you're selling directly to customers and by 2 or 3 times if you're selling on to shops or suppliers who will then sell on. This allows them to sell your products on for a profit themselves. By making your products yourself, you avoid this reduced mark-up and as a result gain more revenue per product.
Sell, Sell, Sell
Idenitfying the selling point (USP) your products encompass will allow you to state to your customers what makes your stuff better than the competitors in shops and on other stalls. Anything you can do to help your customers feel like you're selling to them individually or to make them feel like you're giving them special treatment will make your brand, your set-up more exclusive and potential buyers will buy into this. It's also a good idea to keep an eye on which of your products are selling the best and then make a note to buy more of this product to sell more, harking back to The Apprentice episode of last week (8 July 2011).
Be yourself, be happy
There are many tips one can take to help be a good trader on start-up but first and foremost, you must have some basic skills in maths to keep a good record of what prices you're getting for your stock and how much stock you have sold. A good manner with people and a good sense of banter can really bring the crowds in too. Being an approachable salesperson makes it more likely that customers will come and see your wares. Being a positive, well-humoured character will make people more relaxed around your stall and more open to buying your stuff.
Keep it legal
To ensure that you're trading within the law and not selling illegally, ensure that you contact your local authority and ask about the steps you need to take to make sure you're above board. Ask lots of questions so you have all the facts about trading and how you can get involved trading in your local community.
