To succeed as an antique dealer, one needs a business plan before he or she spends one cent acquiring merchandise.
There are close to 60 questions that must be answered, and many decisions that must be made before a person decides whether or not to start a small business dealing with antiquity.
A few things that a person starting a small business must consider include: objective of the business, a start-up strategy, start up cash, start up time schedule, type of product, a review of competitors who carry the same products, high end and low end price, availability of the product, a second and third line of products, market analysis, market segmentation, the availability of reference and research material, your marketing strategy, your purchasing strategy, your promotion strategy, your selling strategy, selling locations.
A business plan must consider the cost of buying and the cost of selling.
The couple had $80,000 to spend starting an antique business. Eighty thousand dollars is more than enough start up cash for a small business dealing in many types of antiques and collectibles traded in the antique marketplace.
A dealer could start a business buying and selling early porcelain, decorated stoneware, early glassware, country furniture, painted country accessories, and many of today's most popular collectibles.
However, $80,000 is not enough start up cash for a business in Period American furniture, signed or decorative art, rare art pottery, designer furniture, American Folk Art, and many other high end antiques and collectibles.
A good business plan must include a product availability analysis. Researching a product is expensive, but necessary when starting a new antique business.
New dealers must consider cash flow ratio in their business plans.
The antique business is a cash intensive business. Arranging back up funding is an important part of an antique dealer's business plan. If your business plan calls for selling at shows, you must speak with as many show dealers as possible.
Will you sell at auctions, shows, group shops, or from your own shop? Are you willing to travel to other states to sell at shows? Show booth rent is between $100 and $2,500 or more today. Do you know the difference between an inexpensive and a high price show?
6 comments:
Enjoyed your article immensely!
Great advice to the beginning antique dealer or to someone who is thinking about going into the antiques business.
Of course in addition to these factors that you have outlined, one other essential ingredient to becoming an antiques dealer is knowledge. Knowledge comes from avidly reading on the subject, researching and even perhaps taking courses on the subject offered by various colleges throughout the United States, Europe and Canada.
Armed with your recommendations, knowledge, money and hands-on-experience, one should be on the road to an interesting vocation in life should he or she become a full fledged antiques dealer.
Great article. My mom is thinking about going into the antique business after all the anitque-ing she's done in her life. She isn't very interested in starting one from scratch, but rather buying one. Would you happen to know where she could search to see what's available?
@jess- Tell her to check out her local Chamber of Commerce or SBA. They should know what's available in your area. Or you could even check out website, like biztrader.com. It has a good selection of businesses for sale from around the country, in case she's willing to relocate too. good luck!
@jess- If your mom is really interested, she could start searching from the Internet. Just type "antique supplier" or antique manufacturer, she will find the best out there.
I am advising her to do her research first from the many antique suppliers available. It is also good if she could compare the prices and the quality of the antique items she want to acquire.
Good luck!
-jack
@jess- correction: Tell her to search in the Internet for "antique business for sale" by typing it at google search bar. Maybe she could find the one she prefer to buy.
Thanks!
Thanks for the help guys! I'll make sure to pass the info along to my mom.
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