13 Simple Steps to Start up an Art Gallery Business Now

Last updated on April 6th, 2024 at 05:06 pm

 

Are you planning to start up an art gallery business? If yes, that’s right but you’re entering into a multi-billion dollar industry in the United States and other parts of the world.

The Art industry it’s among the fast-growing business sectors with lots of opportunities for Artists in different states.

You don’t have to be an expert entrepreneur to start up an art gallery of your own. But as long as you’re passionate about the business and ready to go the extra mile to build a real business.

Sure, but like any other business, you must put in the work to do things correctly to succeed. In detail, we are going to explain to you how to start up a professional art gallery from scratch to make the most out of it.

Yes, you dive into the industry with confidence to set up the Art gallery business that will make money long term.

What Is An Art Gallery?

An Art gallery is a business where Artwork is exhibited and displayed for sale to the public. People who love Art creations shop around for art pieces that interest them to make a purchase.

Types of Art Galleries

When you decide to start up an art gallery business, there are different types and you need to make the right choice for business purposes.

• Virtual art gallery – This is where exhibitions for Art pieces are done online to target a large audience.
• Physical art gallery – Here exhibition and display of artwork to the public is done at well-designed office premises.
• Popup art gallery – These are short-term art gallery exhibitions organized in different places and times of the year for the public.

As an entrepreneur, you can take advantage of any type of business opportunity to exhibit and display creations to art lovers to make sales for a living.

Pros and Cons of an Art Gallery Business

There are pros and cons of starting an art gallery business hence before setting up you need to know about them as below.

Pros

• Huge profit margins
• You don’t need a lot of investment capital to start up business
• Flexibility in working hours

Cons

• Fluctuations in the prices of art pieces make businesses unpredictable
• There’s a lot of competition in the business
• Sometimes art pieces are hard to get

Simple Steps to Start up an Art Gallery Business

The following steps are to help you start an art gallery as a professional business to sell art pieces to the public. Let’s get into the detailed process of setting up an art gallery from A-Z.

1. Research the Art Gallery Business

First things first, to start an art gallery you need to research the market for artwork in your state or depending on where you want to put up business. This will help you get more knowledgeable about the business before getting into it and get equipped to face any challenges that may come up along the way.

Opportunities in the industry can be identified earlier compared to entering the business without any background check. You’ll know how much you need to start, where to start, competitors in business, and so on.

It’s the best way to get a clear picture of the future of the business and the industry at large. The multi-billion dollar industry requires thorough market research, hard work, and commitment to make the art gallery dream business come true.

2. Pick a Niche

When you set up an art gallery, you want to stand out from your competitors in business. The best way to identify your art gallery from the rest is by niching down.

Some niches to identify with include landscape art, botanical art, cultural art, portrait art, and more.

• Landscape art – This type of art reflects natural sceneries like water bodies, mountains, and valleys exhibited in an art gallery.
• Botanical paintings – This is an art that depicts plant forms, colors, and identifiable species in an art gallery.
• Cultural art – It is a creative art that reflects the customs and values of societies in which people live.
• Portrait art – This is an artistic representation of people in painting, sculpture, photographs, and other mediums.

You must choose a niche that matches your audience to set up a successful art gallery business to make sales. Every niche has a different type of target audience hence you need to be strategic about niche selection.

3. Make a Business Plan

In starting an art gallery, planning the business is also a very essential operational aspect. A business plan has a list of components that must be considered for an art gallery business to run effectively.

• Executive summary – This is a summary of the business plan reflecting the future strategic plans of an art gallery business.
• Company description – It’s meant to explain the art gallery’s goals, missions, visions, and artwork exhibited to the audience. The public can get to know about the business before contacting you or physically coming to look around.
• Market analysis – The art gallery business should have a marketing plan to be used to spread awareness to the public with interest in Art pieces.
• Competitive analysis – You need to know who your competitors are in business in the chosen niche. And here you’ll get to find out any available opportunities that are not yet utilized by the competitors.
• Financial plan – This is a plan for capital expenditure and projected revenue for an art gallery business. The future of the financials for the business is captured in a financial plan.
• Organizational structure – This explains the legal structure and a team of members for an art gallery business setup.

To set up a successful art gallery business all the components listed above should be put into consideration. A business plan is one of the best guiding tools that you can use in the execution process.

4. Get a Location

You need to find an appropriate location for an art gallery to ease accessibility for clients interested in art pieces. However, since the business is just starting look around for low-cost strategic art gallery space to save.

When you get a location for the art gallery, you’ll have a business address that can be shared with clients to find your business. The cost of starting a business in a chosen location should be fair to new startups in the industry.

Despite some businesses working online, with Art, most people want to physically come around to browse through different creations to make selections.

5. Register the Business

One of the simple steps to start up an art gallery business is business registration. For the art gallery to start working officially, it should be registered with the appropriate authorities. This comes to a point where selecting an appropriate business structure should be put into consideration.

The different forms of business structures include sole proprietorship, partnership, Limited Liability Company (LLC), and corporation.

• Sole Proprietorship – This a type of business structure where business liability and control are all under a single person.
• Partnership – Here two or more people register the business together and have equal liability to the proceedings of the startup.
• Limited Liability Company (LLC) – Under this type of business structure when members register the business they enjoy liability and tax protection benefits.
• Corporation – It is a separate legal entity where all lawful actions and other business transactions are worked in the name of the company. When you’re a member of this type of business structure, profits are shared in the form of dividends.

After choosing an appropriate business structure, you should consider getting a business name to use in registering the art gallery business.

6. Register for Taxes

Tax registration is a requirement for an art gallery business and a source of revenue to the state. So, register with the tax authorities for the required taxes for the business.

Get an Employer Identification Number (EIN) or a Social Security Number (SSN) for a sole proprietorship business to use when accounting for tax.

You’ll always have to file returns for the business hence choose a tax year that begins in a given month for filing returns.

7. Acquire a Bank Account

Create a company bank account to separate company funds from personal funds to ease accountability. Talk to a service provider about the company account acquisition process to gather required documents according to the business structure.

Sure, the documentation for opening up a company account is quite different depending on the type of business structure. Service providers make sure that getting an account is as easy as you would want it to be for business.

After creating a company account, let all business transactions go through there to avoid mixing company money with personal money.

The documentation that may be required by the banking institutions to process a company account includes Employer Identification Number (EIN) or SSN, Business address, names of directors, and more as advised by the service provider.

A business account shouldn’t be taken for granted because it’s used in the process of clearing mandatory government taxes and other legal payments.

8. Fund the Art Gallery

To effectively facilitate business operations you need investment capital for the start before making any profits. Despite some challenges in raising capital, there are different ways to go about it as below.

• Personal Savings – This is a great way to start a business without getting money from lenders who charge a lot of interest on borrowed money. Personal savings is money saved in a savings account or any other type of savings.
• Friends and Family Members – If your business idea is worth the investment, friends or family members will be willing to become business partners or offer financial support. Here you’ll be able to raise money to fund the business without payback pressure.
• Government Grants – Government grants through government.gov are another better alternative way to get funds for an art gallery business.
• Crowdfunding – Look out for potential funders through online platforms like Fundable and Wefunder for financial facilitation. However, investors want proper documentation about the business’s future strategic plans to guarantee the investment decision made.

Therefore, the funding procedures listed are worth giving a try when you’re really in need of funding for the business.

9. Process Licenses and Permits

As a mandatory requirement for businesses, the art gallery business should process appropriate licenses and permits to start operations. Contact responsible authorities or business experts about licensing requirements for an Art business in your state.

Since licensing and permit requirements differ in some states, consider locating your art gallery in a state where authorities are fair to new startups.

Here are some licensing and permit requirements for an Art business like the Art gallery business should possess to operate.

• Sales Privilege License – Here whenever you make direct sales to clients you’re required to remit taxes to the authorities. However, in shows where organizers directly receive money on sales made to clients, the art gallery business isn’t liable for tax submissions.
• City Licensing and Permits – These licenses and permits are obtained from local authorities for example the local chamber of commerce.
• Wholesale License Requirements – Here you obtain a sales tax license that allows the art gallery business to make sales at wholesale price.
• State Licensing – To open up an art gallery business in any state you need a state license to start operations.

Where necessary, inquire with licensing and permit authorities or a business professional for appropriate documentation for an art gallery business startup in your state.

10. Get Staff

You need people to work with at the gallery store despite some costs that come along with the demand for staff. As the business grows, it will need more people to fill different positions like marketers, social media professionals, virtual assistants, Artists, and more.

The best way to reduce the workload is by employing staff to fill demanding positions at the gallery. But, the size of the gallery and demand will determine the number of staff required to be recruited.

You don’t have to spend a lot of money on advertisements to fill vacant positions use platforms like Fiverr, jobs.com, and Upwork to hire cheap quality professionals.

11. Get Insurance for an Art Gallery

Insurance is another important step in starting up the art gallery business to prepare for unpredictable incidents, some businesses are reluctant about insurance due to high premium costs. Shop around for quality cheap service providers to save premium costs.

If you’re planning to start up a business, here is a list of insurance covers fit for an art gallery business.

• Worker’s Compensation – This covers art gallery workers in case of accidents and injuries while performing duties at the workplace.
• Business Owner’s Insurance – It’s an all-in-one policy offered to cover general liability and commercial property for the business.
• Commercial Auto-Insurance – This is meant to cover the art gallery business-owned vehicle against accidents.
• General Liability Insurance – This type of liability insurance covers the art gallery business in case of third-party risks that may result from art pieces and other handmade creations.
• Cyber Insurance – Insurance service providers offer this type of insurance to Art businesses most likely to be affected by data breaches. It’s very helpful to businesses using credit cards and other sensitive technology items.

You may not be able to purchase all insurance covers but choose the most appropriate covers for the new business to save money on premium costs.

12. Online Presence

A business website and social media platforms are worth it today to almost any business that wants to succeed. Sure, you need an online platform for the art gallery to get more exposure for creations.

After you’ve just gotten a physical location, think about setting up an online presence like a website and a social media platform where clients will reach out to you for business.

Choose social media platforms that suit your art gallery business like Instagram, Twitter, Facebook, Snapchat, and more. Since the business is just starting, online platforms are great for driving traffic to the business.

If you’re not tech-savvy, hire a web designer or social media expert to offer professional service at a cost. Use online platforms like Upwork and Fiverr to outsource cheap quality professionals in web designing and social media development.

You’re not ready to spend any money on advertisements since the business is just starting, right? Online platforms that are well-optimized for search can save you the cost through sending traffic to the business platform.

13. Market the Business

Every business that starts wants to get exposure in the industry to make sales right away. This can only be achieved with a marketing strategy that can get the business in the eyes of the target audience.

A complete marketing plan containing the 7Ps of the marketing mix can be put into consideration for efficiency. Let’s look at the 7Ps of the marketing mix in detail.

The 7Ps

• Product or Service – The art pieces and services at the art gallery must meet the client’s needs in terms of Quality, Design, Packaging, and more.
• Price – Compare prices for art pieces in the industry to offer products at competitive prices to maximize sales. Clients want to buy quality and cheap in the industry hence benchmarking other businesses is a good idea.
• Promotion – People don’t know what is in your gallery hence you need to let them know. You can promote the art gallery business through online platforms using a business website and social media or traditionally using banners and posters.
• Place – Locate the art gallery business in a place where people with a love for art can find the art pieces to make purchases. Consider appropriate platforms where people can easily get access to your service for example social media and a business website.
• People – Since you can’t work alone in business, recruit staff with the right skills to offer support for example sales executive, virtual assistant, social media manager, marketer, and other demanding positions.
• Packaging – The way you package your products matters a lot to customers who purchase art pieces. Your packaging has to be unique, informative, and quality.
• Process – To offer the best service compared to your competitors you must have a strategy in place that is used to meet client expectations.

You may not do it all perfectly, but incorporating the 7Ps of the marketing mix in the marketing process will be a game changer in the art gallery business.

The Art Gallery Business Marketing Strategies

• Market Research

Understanding the market where you are going to operate is best practice for any new business. Look out for your target audience and competitors in the Art gallery business to analyze market potential effectively.

• Profile your audience

Gather information about your target market according to demographics, location, consumer behavior, and more.

• Unique selling proposition

Customers need to know why they should consider buying from your business instead of the competitors. This must be put in open writing where the public can easily get access to information.

• Branding

Another effective marketing strategy for an Art gallery business is branding. Consider building a positive image for the business to the target audience.

• Marketing channels

You need appropriate marketing channels for the Art gallery business to make sales over time. As an entrepreneur, a social media platform, a business website, referral, and others are ideal for effective marketing.

• Budget and mobilize funds

Some effective marketing strategies must be budgeted and funded to meet the desired goals. After ascertaining the required marketing activities like SEO, web designing, social media development, promotions and more consider mobilizing funds for facilitation.

FAQs

How Long Does It Take To Make Money With The Art Gallery Business?

You can immediately start making money when you have nice art pieces while at the same time using the right marketing skills. But for serious profits, these can be gotten after 2-3 years of business putting in the work.

Do I Need To Be An Artist To Put Up An Art Gallery Business?

You don’t have to be an artist to start an art gallery but being passionate about the business matters a lot. Sure, the love for the business is what drives to you make the most out of it at the end of the day.

The End – How to Start up an Art Gallery Business

How to start up an art gallery business, right? It isn’t as hard as you think when you do things correctly and follow the right steps. Whether you’re an artist or not this can be a great way to supplement your day job, despite some hard work in the beginning it doesn’t demand a lot of commitment for success.