Start an antique store by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your antique store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening an antique store?
If you are looking at becoming a dealer on a part-time basis and enjoy trading relatively inexpensive items, this can be a low-cost business to start. You will need at the very least an online store through ebay or Etsy, some starting inventory, and an ability to receive payments. You could operate this as a weekend endeavor using only a few thousand dollars for your initial investment. Should you consider opening a large antique storefront in an old mill or warehouse, you could spend up to $500,000 buying or leasing the property, installing display areas, and purchasing enough inventory to open your doors.
What are the ongoing expenses for an antique store?
You are always buying and selling, so you should have a good line of credit able to withstand a spending spree. You will need reliable transportation and possibly need to maintain an online store. Your display space or store comes with some maintenance costs.
Who is the target market?
Your most valued customer is the individual or designer who appreciates your eye for unique and quality items such that they return to your store for another piece to work into their home. Customers who regularly purchase from antique stores value quality construction and elegance over a fancy showroom with over solicitous sales staff. They desire to strike a bargain and feel that they own a piece of history that nobody else can have.
How does an antique store make money?
As the owner/operator you will constantly be shopping for new items for your booth or online store and will turn a profit by re-selling them at a higher price. You are more successful if you turn your inventory quickly and often. Large expensive items can linger, slowing your income stream and leaving the impression with shoppers that you never have anything new.
How much can you charge customers?
It all depends on your products. You might sell vintage Hot Wheels for $2 each or a massive mirror designed for a courthouse for $5,000. Market trends will always determine your pricing structure.
How much profit can an antique store make?
A standard profit margin for many dealers is about 30%, but keep in mind that you will be taking out listing fees, consignment fees, and other expenses. A successful antiques business owner can see an income of between $45,000 and $60,000 a year. It is not a means to become a millionaire.
How can you make your business more profitable?
Be willing to get rid of merchandise that is sitting on your shelves. If you paid for it and it just collects dust, it is not providing you any kind of income. Always keep in mind you are not the collector, your customer is!
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Antique Store Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your antique store is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate an antique store business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
An antique store business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an antique store business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your antique store business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market an antique store
Choose your location wisely. Renting a cheap booth at a mall with no foot traffic will net zero sales. Learn the value of creating descriptions for your online shops using popular search words to raise your visibility. Become a regular at flea markets or craft fairs where you will build a devoted fan base.
How to keep customers coming back
Your customers will buy and return to your shop when you have what they desire. Follow trends in the antique business and pop culture to create displays that appeal to current shoppers. Always price reasonably and be willing to bargain.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start An Antique Store In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
If you have a passion for a beautifully crafted table or marvel at the function of an old butter churn, you have the first requirement of a successful antiques dealer. You must also have a burning desire to turn a profit and be able to let go of your carefully selected inventory quickly and without any sense of loss. This is above all else a means to make money.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at an antique store?
Whether you operate a large antiques store or maintain a small booth in a mall, on a daily basis you will:
- Shop for new pieces at other antique stores, visit flea markets, estate sales, and second-hand stores
- Build an extensive knowledge of your specialty area such as toys, art, fine furniture, and curiosities
- Market your wares according to what is popular and desirable as trends change
- Price your product such that it moves quickly while turning a profit over your purchase price
- Develop your displays to attract shoppers
- Maintain ledgers/spreadsheets to track incoming and outgoing items
- Mark down inventory that has lingered on your shelves for too long
- Bargain with interested customers in order to make the sale
- Barter with other dealers to ensure you always have fresh inventory for returning shoppers
What are some skills and experiences that will help you build a successful antique store?
An antique store is run by an individual with a unique set of skills including:
- Encyclopedic knowledge of your specialty area including known manufacturers, dates of production, and what constitutes a rare and valuable piece
- Has a finger on the pulse of popular items in the antiques market and adjusts inventory accordingly
- Able to create stunning and attractive displays that highlight your most profitable items
- Basic accounting skills
- Friendly and approachable demeanor, ability to chat with all your customers
- Places minimal sentimental value on inventory, yet appreciates the beauty of each item
- Innate ability to create lasting relationships with other dealers to obtain the lowest price for new product
- Willing to utilize the internet to extend reach and increase sales
- Know how to pack and ship valuables to ensure they reach their new home in one piece
What is the growth potential for an antique store?
The antique boutique capable of expanding will be run by a person who has a talent for building relationships in the business. As you accumulate the names, numbers, and preferences of your clients and competitors, you can start buying items with certain customers in mind. When you become a personal shopper, you can charge a premium for your items and service. Over time, you may expand into a larger storefront as you begin to hire other dealers ready to further expand your customer base. When clients begin to call you looking for a specific item, you are on the road to expanding your business.
TRUiC's YouTube Channel
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting an antique store?
Know your stuff! You will enjoy long-term success when you are able to identify a knock-off collectible from the real deal, protecting your customers from massive disappointment and even financial loss. Focus on one or two types of items you particularly enjoy as it builds a brand for you--your booth will become known as the Teddy Bear booth or the one with the really nice furniture. Always be willing to bargain and sell fast at a lower profit rather than holding out for the big sale.
How and when to build a team
You may wish to have a partner who can help move large and heavy items, but in general your antique boutique will probably be a one-person show. If you operate a mall, you may need to hire additional clerks and staff to maintain your business hours during busy seasons.