A guide to starting a reselling business

It's time to start a new business venture in 2022. You could start a freelance business as a copywriter or delve into the world of forex trading. Or, you could launch a reselling business to make the most out of your marketing skills.

What is a reselling business?

It's simple, really. You list items for sale at a higher price than you bought them for. There are millions of successful resellers online, and you can make quite a profit. You just need to find the right selling platform for you and your products. You could sell clothing, technology, homeware and much more.

How to become a reseller

You need to register your reselling business with the UK government. You will get a business license for where your business operates. You will need a Foreign Qualification if you operate outside of your registered area. Do your research and make sure you know the legal side of reselling.  

You need to familiarise yourself with UK laws and regulations. You don't want to cross any lines or receive a fine because you broke the rules. There are rules and regulations for both in-person and online sales. Gather all of your documents and submit your application to register the business.

How to do your own bookkeeping

You need to keep your books straight. You could hire a bookkeeper if you have the funds to do so. However, you can also learn to do the books yourself and familiarise yourself with a new side of finance. First up, you need an account that tracks all the money you owe to third parties – such as suppliers, banks and governments. You might have taken out a business loan or a credit card to get started. This is called your accounts payable.

Next, an account receivable is for all the money third parties owe you. This is the account that customers and banks will pay money into. You need to think about everything your company owns – also known as assets. Your assets could be anything from cash to buildings.

Create a balance sheet with everything your business owns and owes. You can include liabilities, assets, and your company's capital on this sheet. In short, a balance sheet breaks everything down for you in one place.

You could take an online course in bookkeeping to learn more about how to keep your books organised and up to date.

Remember to do your research before launching a reselling business.