The sports market size in North America was valued at over seventy billion dollars in 2018. It is expected to grow over eighty-three billion by 2023. Thus, the sports industry provides an excellent opportunity for people looking to start a new business venture in this domain.
One such business option that you can consider is a sports memorabilia venture. Dedicated fans are always on the lookout for items associated with their favorite players or teams. Selling sports jerseys, photographs, autographs, and equipment used by the players can help you earn hefty dollars. But how do you start with such a venture? This blog is there to help you get started.
1. Decide your niche
The sports industry is very vast. You have many options to choose from when it comes to sports, teams, players, and the type of memorabilia you want to sell. Although this might sound good, it can, in fact, end up making your decision to start the business much harder.
Therefore, before anything else, you need to decide the target audience, the sports niche you will focus on, and the type of memorabilia you want to sell primarily. For example, you may choose to sell Superbowl rings, players’ autographs, commemorative coins, or items used by players during sporting events.
2. Create a business plan
Once you have figured out the ‘WHAT,’ it’s time to move to the ‘HOW.’ You need to create a business plan that will help you map out how to proceed with your business. The business plan should have detailed information regarding,
- Your business name
- The demand for your niche
- Your competitors
- The mode of operation
- The startup and ongoing costs
- The advertising and marketing plans
- The first two to three-year expenses
- The expected profits for the initial three years
- Overhead expenses
Having a plan will help you have a clear vision of the business, ensuring that it will be a profitable venture.
3. Complete the legal formalities
Various legal procedures need to be completed before you start operations. You will require to form a legal entity and register your business name, logo, and other details with the state and the federal government. Firstly, you will need to decide on the business structure, such as sole proprietorship, LLC, or corporation. Next, you will need to register for taxes by applying for an employer ID number (EIN).
Additionally, you will have to get business insurance to protect your financial well-being from a covered loss. If you fail to complete any of the mandatory legal procedures, you might get into legal trouble. You may need to pay hefty fines or even see your business being closed down.
4. Open business bank accounts
You will be required to use bank accounts and credit cards dedicated to your business. Having separate business accounts simplifies the accounting and tax-filing procedures. Similarly, it helps separate and protect your personal assets from business assets. This can prove useful in case your business is sued or runs into legal troubles. Additionally, you can also get higher credits, better interest rates, and other facilities not available to personal bank account holders. This can help in business growth and provide you an extra financial cushion.
5. Collaborate with authentic sources
You will need to procure the memorabilia from various sources. Some ways through which you can acquire items include companies, estate sales, auctions, or having a partnership with the team or player directly. As a precaution, make sure that the items you buy are authentic, bearing the player’s or team’s official seal.
Most items you will buy will have a ‘Certificate of Authenticity’ from reputed sources, verifying that they are genuine. However, sometimes, there might not be any paperwork attached, and you will have to rely on your knowledge and gut instinct.
6. Decide the mode of operation
Now that you have collected the memorabilia, it’s time to decide how you want to sell them. There are various channels you can use for this purpose. For instance, you can create an e-commerce platform, a retail brick-and-mortar shop, or choose an online or traditional auction model to sell the items.
The operating costs, including marketing, for each medium vary differently. Depending upon your budget, area, and the type of memorabilia you wish to sell, you can adopt either of the methods mentioned above. It would be best if you start with an online platform as it is the least expensive.
Most people involved in the sports memorabilia business are themselves huge sports fans or collectors. A memorabilia-selling business can help turn your passion into your profession and also make you some good money.