Writing a simple business plan for a watch dealer

Most new dealers start with a watch, not a plan: something comes up at a good price, they buy it, and the business begins. That can work, but it leaves the big decisions, such as what to deal in, how much to risk, and how to judge success, to be made one deal at a time. A short written plan makes those decisions once, calmly, before money is on the table.

It doesn't need to be long. One page, honestly filled in, is more useful than a polished document nobody reads.

What you'll deal in

Write down your niche in a sentence: the brands, references, era, or price range you'll focus on, and why you know enough about it to buy safely. If you can't write that sentence yet, that's the first thing to fix. The niche article covers how to choose one.

Where the watches will come from

List your sources: private sellers, trade-ins, other dealers, auctions, estates, online. For each, note how you'll reach it and what extra checking it needs. A plan that relies on a source you don't yet have access to is a hope, not a plan. The sourcing article and the sourcing network article cover the options.

Where they'll sell

Name the channels you'll sell through and who buys there. Your channel drives your fees, and your fees drive what you can pay, so this decision belongs before you buy, not after. The channel choice article compares them.

Capital and how you'll use it

Write down how much you're putting in, and how much of it you're prepared to lose without the business ending. Then decide:

• How much can go into one watch, so a single mistake can't sink you.
• What you'll keep in reserve for costs, slow months, and the next buy.
• How long you'll hold a watch before you cut the price or sell to the trade.

The startup capital article covers sizing it, and the cash flow article covers why reserve matters.

The numbers each deal must meet

This is the heart of the plan. Decide the target margin every deal has to clear, and the costs you'll always include: fees, processing, shipping, insurance, prep, and the cost of the time a watch sits. Then commit to working out a maximum buy price before every purchase, using the max buy calculator with your own inputs.

Writing the target down in advance matters because it's easy to lower it in the moment for a watch you want. The target margin article covers how to set one.

The rules you'll follow

List the registrations and rules that apply to you: your business structure, sales tax, any local secondhand-dealer license, and the records you'll keep. Check what applies where you operate with the compliance checker, and note what you still need to set up before your first purchase.

How you'll judge it

Decide in advance what success looks like and when you'll review it. Useful measures include:

• Profit per watch, after every cost.
• How long watches take to sell, by channel.
• Return on capital, meaning what the money in the business earns over a period.
• Problems, such as returns, disputes, and watches that needed more work than expected.

Set a date to review the plan against your records, and decide what you'll change if the numbers aren't there.

Using the plan

A plan earns its keep in two moments. The first is before a purchase, when a watch is tempting but doesn't fit: the plan gives you a reason to pass. The second is at review, when your records show what's working. Update the plan from the evidence, not from memorable wins.

Common mistakes new dealers make covers what the plan is mostly there to prevent.