Entertainment, Retail

How To Set Up A Gallery, Become An Art Dealer

The Beauty In Business

Setting up an art gallery can be lucrative but requires extensive business knowledge. Or at least some knowledge of the kind of artwork that interests you the most. The majority of art galleries display and sell artwork from local artists. So the first thing you’ll need in the gallery business is ample space to design and build your gallery to showcase your artwork. Still, the most challenging part of opening your gallery is knowing where and how to acquire the works. Opening and running an art gallery is not tricky. The business is easy to operate. There are art galleries on most main streets across the country. Sadly, many close within the first 12 months because of the high cost of rental space and artwork that does not move. You’ll need to offer something unique and different for your business to thrive. You’ll need to think outside the box continuously. Read on for practical tips on setting up an art gallery.

Get To Know The Gallery Business

If you want to set up an art gallery, you must have an eye for artwork. You have to spot art that will appeal to the clients you know will purchase, and you need to know where to find it. Suppose you are the type of person who is not interested in a beautiful painting, sculpture, or statue. In that case, you will miss much of the fine artwork exhibited in public places everywhere, and perhaps this industry is not for you. If you are new to the art business, one way to learn what the art-loving public savors is to visit as many art galleries as possible to discover theirs and your affection for beautiful creations. While you can choose to showcase anything, your clients are usually attracted to more well-known artists’ works.

Here are a few online education links to get you started

Do I Need A Degree In Art To Open An Art Gallery?

There is no need for an art degree to open an art gallery, but it helps to have some education in the arts or art history. Plus, as the world around us changes, you will need to understand other art forms like pop, minimalism, and the Fluxus movement of 5 decades ago, for example. More knowledge will help you communicate with others and help if you decide to deviate into another part of the art business. You’ll also need to have good communication skills and the ability to raise startup funds.

Develop An Understanding Of The Art Of Entertainment

To be successful with any art gallery project, you will also have a deeper understanding and knowledge of art in general, including your specific niche. You’ll also need to understand what type of art your customers favor and what attracted them to your art gallery in the first place. Good communication and expertise in business are also vital for the success of any art gallery. Don’t assume that your clients will walk on in just because you own an art gallery. People have many other options for entertainment. So you’ll need to provide something unique, know your audience, and continue to be creative.

Online Catering Courses

Gaining A Foothold In The Gallery Business

You will need to build connections to gain experience in the art business. Connecting with the right people is paramount to success in such a fickle industry. You may intern at a studio or an art gallery, sell art books or serve as a guide in a museum. There’s no one way, and everything you do will help. New graduates often have to break into the art business because others might not welcome them openly. You’ll also need to keep current on different art classes and get to know art dealers.

An alternate way to develop your network is to go to art conventions, join an association or work with non-profit art centers. Some like-minded groups all over the country are always looking for new members.

Caution

You’ll need to understand that art galleries are businesses
You will need constant marketing streams to communicate to the public whenever you have an event
Be creative and think about what else can make the gallery profitable
Do not fall into the trap of endless advertising-it generally does not pay off
Consider an online art gallery- this is the wave of the future

Portrait Gallery Business Plan

Opening an Art gallery is not difficult, but it is beneficial to consider that many close in the first year. So it would help if you made a business plan to understand your vision fully and how you might overcome some of the issues that will arise in the future. The business plan should contain the following information:

Where will you open the gallery?
How big is your gallery?
How will you finance your gallery?
Where will you get the artwork for display?
What will you charge for your artwork?
How can you make the art gallery profitable?
What are the startup costs to operate an art gallery?
What are the drawbacks of opening an art gallery?
What equipment will I need for the Art gallery?
What kind of events will I host?

Here are a few handy links for your plan

Portrait Gallery Business Matters

Register your business
Register for state and federal taxes
Open a dedicated bank account
Obtain worker’s compensation insurance if you employ more than two people

Check out these few companies that can assist you in getting your LLC started

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Gallery Insurance

Because some artwork is very valuable and there is always a risk of damage, fire, or theft, you will need to get general insurance. You will also need liability insurance if someone falls in your gallery or gets hurt in your gallery.

Here is a list of some standard insurance companies

What Are Some Startup Costs To Open An Art Gallery?

Location Lease
Art inventory
License
Insurance
Furniture and equipment
Employee salaries
Design of studio
Art gallery software (Artlogic, Art galleria, airbase, primer)

On average, you are looking at a minimum of $30K-$50K for a small gallery, depending on the studio’s location and size.

Here are a few of your options

Small Business Administration

The Sma ll Business Administration, SBA has a program to fund new startups, and is worth a look.

How Much Do Art Galleries Charge Artists for Showing Their Artwork?

Art Galleries may charge anywhere from 20-50% commission for handling sales and marketing of the artist’s work. However, if you are starting in business, you might want to charge a lower commission to build up your reputation.

Is Opening An Art Gallery Profitable?

If you imagine bucket loads of profits, this is not your business. Most people who run an art gallery do it because they love art (or are already wealthy). The art gallery business has razor-thin margins, but owners often do well by selling gifts, prints, artwork, and classes. In such cases, one can have an excellent income. Data from the Dept of Bureau and Labor reveals that art gallery owners make anywhere from $50K-$90K a year.

How Can I Increase Profits For My Art Gallery Business?

Besides showing art, other options for increasing profits include:

Sell art magazines (ARTnews, Artforum, Art in America)
Rent or share the space with other artists, musicians
Sell souvenirs and gifts
Offer art teaching classes
Sell artwork
Hosting corporate events
Offer wine and cheese or tea parties

Gallery Competition

Unless you are in a town or city well known for Art, like NYC, Paris, Rome, or London, you should first check out the competition. You may get away with opening just another art gallery in a city filled with ‘Art Tourism.” Still, if your city is not overflowing with tourists or you’re living in a typical American town, you’ll need to check out the competition first. You should physically visit all the art galleries and museums in your city to determine if they are busy, what type of crowds they attract, etc. If these established art galleries are not very busy, it should give you pause for that area. Plus, you should be asking people in local online art forums if they think the town needs another art gallery. If there is no demand, the gallery will not survive.

Local Art Lovers – Demographics

While art gallery events sound fascinating, not everyone regularly visits art studios. Teenagers and adolescents are infrequent visitors, and so are the elderly. The most common demographic is well-to-do middle-class people, college students, and lovers of fine design works. Some people don’t care for the arts. You’ll need to keep this in mind when choosing your location.

Get To Know Art Dealers

Art dealers are involved with selling works by artists for galleries, museums, and collectors. They represent artists and help negotiate contracts. Most art dealers only specialize in one type of art, so you may have to consult with several, depending on the kind of art gallery you will be opening. If you are starting, keep it simple and focus on one specific area rather than becoming an expert on every aspect of art.

After you have selected your genre, learn everything about that period and the successful artists in that field. Then you will recognize artists just from their artwork, and your connection with your customers will benefit greatly. Today, many art programs provide students with valuable experience by arranging internships with art professionals or galleries.

Contact The Artists

Before you open an art gallery, you’ll need to get to know local artists with pieces to display. There’s also no point in opening a large studio with no artwork on display. So the first step is to connect and contract artists in your community. If local artists like you and your space would like to hang their artwork in your gallery, most of them will agree to give you their work on consignment. If the artwork needs framing or showcasing, you must prepare it.

Gallery Location

An art gallery must be in a busy part of town to do well in this challenging business. There must be substantial foot traffic, and free parking, and the area must be easily accessible. The downside is that renting a studio in a downtown area is also prohibitively expensive- so you will need to weigh the pros and cons of being close to people vs. your expenses. Government grants or donors heavily subsidize many art galleries in the downtown area. So you may need to apply for a government grant or get to know some wealthy art advocates who are willing to support your cause.

Here is a list of some popular commercial real estate companies:

Selling Art Outside The Gallery

Another option for people who run small galleries is to trade their art outside the confines of the gallery. Taking your gallery on the road is a great way to meet other artists and owners and make some money. Some of the ways you can sell art include the following:

Lease a stall at the local market and showcase your gallery’s artwork. If the price is reasonable, people will buy your art and will be more likely to visit your gallery. The cost to rent a stall is minimal.
Another option is to attend local art conventions and set up a booth with your gallery’s artwork.

Another option is to hold regular social gatherings at local hotels or restaurants to display your gallery’s artwork. Prepare refreshments and appetizers. Hotels welcome these events because they also increase their exposure and business.

Local artists regularly frequent outdoor markets and hold events of their own, so your event network might be attractive to them. You can also sell other art-related paraphernalia at the same time. However, it is essential to note that the amount of money you make is not the reason to expand beyond your gallery. It’s marketing 101. As long as you are making just enough to cover your expenses, you’re in good shape.

Online Art Gallery

The world we live in is fast-paced and continually changing. Many business transactions are now conducted online. In general, the art world is also gradually phasing out its brick-and-mortar locations in place of online galleries and stores. Because of high rent and maintenance costs, many art galleries now showcase their artwork online using 2D and 3D videos. Besides, state-of-the-art digital cameras can provide an up-close view that is impossible when visiting an art gallery. Also, there is little risk of damage to the artwork by patrons, and theft is not much of a factor (unless someone breaks into your studio). Some art galleries offer initial free views but then charge for a more comprehensive look at the artwork. Because online art galleries are still a novel concept, prices vary, but starting in this new unexplored territory is worth considering. You will avoid many of the costs associated with a brick-and-mortar gallery.

Online Presence

To market your art gallery, the following may help:

Establish a website that showcases your artwork (e.g., Shopify, Wix, Squarespace, Weebly)
With cloud-based systems, storage and security should not be a problem (Microsoft Azure, Amazon, Google Cloud, IMB cloud, Oracle, etc.)
Create an online newsletter
Allow customs to buy artwork from your website.
Keep the website dynamic by regularly updating your collections.

If you create an online art gallery, you will need to do the following:

Choose a content management tool to build your website (WordPress, Drupal, Magento, Wix, Joomla)
For communication with clients, use Mailchimp, Mail Munch, Weave)
Utilize social media management (e.g., Zoho, Hootsuite)
Use Fiverr or Upwork for any outsourcing like logo, graphics.
Track the business (e.g., Trello, schedule)
For selling merchandise, you will need Shopify.
You will need to consider Aftership and Shipping easily if you ship items.
You can do your online bookkeeping with Freshbooks or Quickbooks.

Build Your Own Gallery Website

Your restaurant domain name protects your website address on the internet. You can register a domain name with any hosting company you choose.

Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

What Equipment Is Needed To Operate An Art Gallery?

Try some of these supply companies

Here’s Som More Ideas

Security cameras (Dome. Box, Bullet, PTZ, IP, Thermal)
Queue poles
Good lighting (Kichler, Minka Lavery, Hinkley, Murray Feiss)
Signs
Alarm system (Vivint, ADT, SimpliSafe, Frontpoint)
Locking display table
Glass display case
Upright exhibit walls
Photography equipment (tripod, flash gear, lenses)
Storage systems
Rails
Picture hanging systems
Stanchions
Display holders
Easels
Barriers
Books and literature display
Plate and bowl stands
Humidity control system
Display accessories
POS system (Square, Shopify, Toast, Vend, Erply)
Furniture
TV monitors (Samsung)
Audio system for announcements
Cleaning equipment

Conclusion

Running an art gallery is much more than just hanging paintings on a wall. It is a multibillion-dollar business that requires significant business acumen to succeed. Before you open your gallery, you’ll have to possess some knowledge of the art world. For those who do their legwork, the chances of success are high. For those who have money but do not possess a plan, the chances are that you will be closing shop very quickly.