You are passionate antique lover and collector. Your home is full of various antique pieces, from furniture to décor, but still you are looking for something more, something bigger than just home decorated in antique still. The main idea in your head is to open an antique store. Running an antique shop is not an easy task, it requires lot of effort, knowledge and good planning if you want to become successful in this business. We all make mistakes, but sometimes they can be very costly. In order to help you avoid such issues, we will provide you with this guide and few suggestions you may find helpful when starting an antique business.
Does your shop will run with success or not it will be determinate by two main factors – the cash flow and your overhead. Your firs negotiations are your most important decision. Have in mind that almost 90% of small businesses fall during the first years. When starting a new business, no one consider that will fail, nigher than you. So, negotiating a leans for 2-3 years with options for renewals is good way to start. Making a profit is a process that may take few months to one year or sometimes even longer. Due make sure you have enough reserves to pay your overhead, including purchasing new goods.
Before starting an antique shop, consider all expenses you will have. Besides building insurance, you need inventory insurance as well, in case of fire or other damages. Then there is electricity, internet, phone, advertising. Another expense can be employees, not only their salary but their taxes that need to be paid. Once you calculate all of the expenses, you may find out how much of the merchandise you need to sell in order to make a profit.
In the selling business, it’s important to take at least what you paid for each product soled and reinvest those money in inventory. Once you start using all of the earned money from sales and not investing them in inventory, it becomes a path which is slippery and hard to reverse. Slow economy can affect the success of your business. So make sure you have enough reserves to withstand this situation. Antique pieces aren’t a necessity which means in such circumstances the sales can easily drop. If you don’t have enough reserves, the slow economy will turn you down, so there will be no financial sense to keep the doors of your antique shop open.
Another important thing to consider is the sale. An antique store need to run a major sale at least twice in one years. But the key point of this is how big needs to be this sale. As we said above cash flow is one of the biggest factors and the business can’t exist without it. So it is a great idea to run a big sale (you can go with 50% discounts) during the slow summer in order to keep this cash flow coming.
When it comes to marketing, always keep in mind that the traditional ways of advertising don’t work for an antique shop. You need something more unique, something that will integrate the people to come and visit your store. Because the internet is the biggest trading place, it’s essential to have strong internet presence in order to promote a successful antique shop. Another important thing is to develop a mailing list of your customers. Once you are done with the mailing list, develop a newsletter and send it about 3-4 times during the year. Make sure it’s enjoyable to read and offer a sale. Those are two marketing methods that gives the best results and there is no need to spend extra money on things that don’t work.