How To Start an Antiques Business

How To Start an Antiques Business - Background Info:

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The business of buying and selling antiques is a wonderful experience for anyone with a spirit of entrepreneurship. And surprisingly enough, it takes far less investment capital than one might think.

For many, ‘antiquing' begins as a hobby that can quickly evolve into a passion. Many collectors develop a true ‘love' for certain, collectible items. All antiques have a story and often times, the story is far more important than the item was in its prime. It has often been said that “there's a collector for everything and something for every collector.”

Therefore, the entrepreneur can safely assume that there's a buyer for everything under the sun. But how does one find these buyers? What of start-up cost and overhead? Should you advertise? And how does the ‘collectible' market compliment the antique market? As with every new project, you need a plan. Let's examine some ways to break into the antique and collectible business with a minimum of investment.

There is a market for the antiques business, but understand that it's not a huge market. You're going to be selling primarily to serious collectors, who are few and far between. The important thing is to simply run your antiques business for your love antiques, and nothing else.

The people shopping antiques business locations quite often are knowledgeable to some degree, or will be asking a lot of questions, and you'll be well equipped to meet these people's needs by having a good, thorough knowledge of furniture manufacturers, trends throughout the history of the furniture industry, etcetera.

You may want to do some research before starting your antiques business. Perhaps take a trip to the nearest antique store and ask about what tends to sell (though if you're setting your antique business up in the same town as your competitor, you may want to develop your own business plan, don't just borrow theirs, and offer your antiques business customers something different).

You can also keep up to date with what's doing well these days at other antiques business sites by visiting antiques conventions and get-togethers, and by checking sources like www.kovels.com. This way, you'll be informed as to what would be a fair price for any given item.

The next thing you'll need for your antiques business is an impressive collection! This is where your knowledge of antiques first comes in handy.

By browsing eBay and other online auction sites, as well as thrift stores and pawn shops, you'll be able to build up a decent collection for your antiques business before long, and by knowing what to look for, you'll be able to know what your customers are looking for, as well.

Another way is to simply buy antiques in bulk from other antiques business owners who are going out of business, and from other collectors.

You can sift through the items and refer to your price guides and such to know what to keep and what to donate to thrift stores. This way, you can get a decent deal for your antiques business by buying several items at once at a discount from people who just need to unload their collection.

Keep in mind that, while we all like the idea of having our own shop, you can actually do quite well with your own antiques business these days by selling online.

This can cut your antiques business startup costs in half, as you won't need to rent a shop or hire employees, and you don't need to worry about going out of business during slow periods.

It's a good idea to keep a wide variety of items available in your antiques business stock.

You may have a passion for antique furniture, but others might collect old toys or books, or classic vinyl records and silverware. By offering a degree of variety, you bring in a lot more business than you would by specializing in just one thing, and those people will have your antiques business name on the tip of their tongue the next time they need to do some antiques business shopping.

You don't need to make a killing every time you make a sale just to stay in business, remember that a returning customer is the best kind.

How To Start An Antiques Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running an antiques business:

• Bookkeeping
• Filing
• General office
• Correspondence

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate an antiques business:

• Have a knowledge of antiques.
• Ability to do research and know authentic items from fake.
• Keen passion for antiques.
• Know pricing.
• Contact experts regarding antique history and values.

How To Start An Antiques Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - If your antique shop is online, it can be open every day. If you have a brick and mortar storefront, your hours will be average retail hours of 10 a.m. to 5 p.m.

Hours Needed to Prepare - Before Opening and After Hours Activities - Log purchases and sales, tend to correspondence, research antiques, attend flea markets, estate sales, garage sales, and antique auctions.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

• Website maintenance
• Record/Bookkeeping
• General office
• Correspondence
• Researcher

Here some of the skills necessary to run this type of business other than the necessary business skills:

• Patience. No business, especially the antique business, grows overnight and the antique business typically doesn't have products that move quickly.
• Retail sales experience.
• Research experience.
• Care of antiques.
• Photography skills.
• Keen eye for authenticity of products.

Licenses:

Make use you have everything licensed properly. You'll need to go through all of the typical steps for starting a business: getting a tax id number, checking licensing and zoning requirements,

Approximate Minimum Start up Cost:

Bare essential: - Your start-up costs will depend on the amount of inventory you need to build up. If you have been actively collecting antiques before, then you may already have some of the inventory you need to open an antiques business and this could drive down your start-up requirements.

Minimal exposure - There are several ways to advertise for free.

Necessary Equipment Necessary to Run this Business:

Necessary Start-Up Equipment & Supplies:

• Computer
• Printer
• Cell phone
• Website
• Cash handling system
• Pricing system
• Item preparation facilities
• Display cases
• Transportation
• Special cleansers
• Digital camera
• Log system or software
• Magnifier

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

• Laptop
• Variety of camera lenses
• Studio area for taking photos
• High-speed internet access
• Cell phone with internet capability

Monthly Expenses To Consider:

• Wages
• Phone/cell phone
• Internet access
• Permits
• Advertising/Marketing
• Electricity

Special Requirements and Considerations For This Business:

• Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
• If you have a sizable garage, attic, basement, or just an extra bedroom, you can easily run an antiques business from the comfort of your own home, making your own hours.
• Selling online, your antiques business may be best off with your buying a domain name (prices vary, but a domain name can be surprisingly cheap), but even if you'd rather not manage a website, an antiques business can actually do quite well through online auction sites and classified ad sites like www.craigslist.org.
• A good way to popularize your online antiques business is just to be a social butterfly. Sign up for antiques forums and message boards to talk shop with other antiques lovers. This can be a great way to make a name for your antiques business in the online antiques enthusiast communities.
• Glassware may be a hot commodity in your area. Or it may go ‘dirt cheap.' You need to be aware of the local supply and demand before you settle on a given item line. This doesn't mean you should restrict yourself to only a few items. It just means that by keeping you inventory to a few product lines, you can become more knowledgeable in less time. And to the antique dealer, product knowledge is everything.
• Local estate sales can also be a valuable source of both knowledge and inventory. But be wary of first day prices. Most estate sales last two to three days. The first day, most prices are inflated and will gradually decrease as the sale progresses. Don't let personal tastes interfere with your sense of business. If you pay that first day price, you're likely paying retail. A dealer who buys at retail market prices will quickly go out of business. You need the bargains, even if means settling for a slightly less desirable item.
• Antiques are commonly defined as anything over 100 years old. Collectibles, on the other hand, is a term used to distinguish more recent items from antiques. Denoting "popular" culture, collectibles are anything that people collect, mostly things that were part of everyday life in a bygone era now fondly remembered.
• Your purchasing skills and ability to spot a good find are crucial in this business. Buy at bargain prices: items in auctions are supposed to be about half the actual value. You can also find hundreds of items selling at a quick pace at estate auctions, although many of these items may require cleaning or repair. You can also check out merchandize online, and in paper-based antiques publications.
• You need to develop a system for recording and keeping track of your inventory. Enter in a logbook each item you buy, complete with a catalog number, description, cost and sale price. Your logbook is invaluable for tracking your costs and seeing how long you've had an item. If you know any history about an item, be sure to jot that down.
• Check out flea markets, estate sales and garage sales for interesting items you think might be saleable. You can also browse online and see what you can find, and what appeals to you. You can also check out auction houses, if the prices are not steep for you. These venues often yield treasures for a collector.
• Learn how to spot fakes. Antique business owners encounter authentic pieces and fake pieces. Talk with other antique business owners and discover different tricks and techniques to help you identify a fake.

Pros And Cons of Opening An Antiques Business:

The Pros of Running an Antiques Business:

• It's an enjoyable business.
• I can be very lucrative.
• Easy to run.
• Minimal capital to start.
• A good niche business to offshoot from other businesses.
• Great networking opportunities.

The Cons of Running an Antiques Business:

• Can be difficult to find customers.
• Takes time to collect items and grow.
• Locating antiques can take time.
• Can be expensive to start with a lot of inventory.
• Sales can fluctuate as the economy goes up and down.
• Researching items can be expensive.

Type of Customers You Need to Attract:

The finest antiques in the world are worthless unless you have a buyer. One solution is ‘flea market malls.' Don't be mislead by the name. Flea market malls are viable outlets for both antiques and collectibles. They come in all shapes and sizes, some dealing only in upscale items while others are more modest in inventory. There are some tremendous advantages to these outlets and it may be worth your while to do a little investigating.

Your customers include the millions of collectors around the world that have collections in thousands of categories - from the multimillionaires that collect impressionist paintings to the average person, who might collect anything you can imagine. Many average folks will buy antiques or collectibles simply because they liked the item, or have started collecting that particular item. Collectors have been known to fill their residence to overflowing with thousands of related items, sometimes even to the point of financial ruin.

Another option is the internet. There a host of online auction services, featuring regular, dependable ‘shoppers.' The buyer is only a click away with such internet powerhouses as Ebay.com and Yahoo Auctions. These companies actually act as a broker, allowing you to set a minimum price on your item, then posting the item along with pictures and text descriptions. This is by far the most ‘overhead free' method of getting into the antique business . Whichever method you choose, remember, there's a buyer for everything. You just need the product.

Antiques Business Statistics:

It is estimated that there are more than 36,000 antique dealers in the U.S. alone, with many of them operating from home. A low risk and high return business, you can even do the bulk of the work on weekends and build up your capital while still working at your main job. An antiques business allows you to have fun while learning how to run the business.

Revenue:

The antiques business is widely diversified and, as such, revenue varies as well. There is a great report (free, downloadable .pdf) of revenue and additional statistics at ANTIQUE SHOPS BUSINESS AND INDUSTRY PROFILE

Antiques Business Resources:

Industry-Specific Websites:

Journal of Antiques

Tias

The Antique and Art Information Network, Inc.

Antique Auction Site

Auction Zip

Courses:

Old and Sold

Doc and Mail

Asheford

Antique Restoration

Equipment and Supplies:

Antiques and Collectibles National Association

Forums:

Southport

Terry Gibbs

Franchises:

WebTeek

Associations:

The National Art & Antique Dealers' Association of America (high end)

For all professionals, Antiques Dealers' Association of America

Antiques And Collectibles National Association

Books:

FabJob Guide to Become an Antiques Shop Owner

Amazon Listings

Software:

ArtSystems

Inventory and Point of Sale (POS) Software (for antiques)

Other:

Making Plans for the Antique Business

Maddog Research

Businesses To Related to an Antiques Business:

• Antique repair (clocks, jewelry, etc.)
• Retail sales
• Researcher
• Retail sales
• Shop owner/collectibles
• Antique restoration and cleaning

12 Steps To Starting An Antiques Business

Before You consider An Antiques Business, see 16 Questions to Consider Before Starting a Business

1. Ensure An Antiques Business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How An Antiques Business Operates

How can you run An Antiques Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure There Is a Profitable Market for Your Business

What's the use of starting An Antiques Business that is not profitable? You'll be putting all your effort in something that can't support itself or you.  There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create A Business Plan For Your Antiques Business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Antiques Business evolves.  Read our free online guide on How to Write a Business Plan

5. Set up Your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Antiques Business. 

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get A Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Antiques Business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Antiques Business see our guide on Financing Your Small Business

7. Legalize Your Antiques Business

In order to run your Antiques Business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Antiques Business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Antiques Business

In order to run your Antiques Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Set up Your Accounting System

Running An Antiques Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Antiques Business. See Setting Up Your Accounting System for more on this topic.

10. Acquire Customers for your Antiques Business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See  Acquiring Customers for more on this topic

11. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

12. Insure Your Antiques Business

Make sure you have the proper insurance for your Antiques Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Antiques Business, see our free online guide:  Insuring Your Small Business.

Antiques Business Issues:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Antiques Business

Build or Buy A Business? - Buying an existing Antiques Business

Business Builders For Your Antiques Business:

Starting A Business - Free Online Guide

Business cards for Your Antiques Business

Business Plan for Your Antiques Business

Business Insurance for Your Antiques Business

Small Business Loans Finance Your Antiques Business

Small Business Marketing For Your Antiques Business

More Business Ideas:

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