I am curious to know how a person gets started in the coin business. Do you get a loan from the bank and starting buying inventory? Start out small and grow fast? It would seem that it is one field of business where your inventory appreciates in value. I can see the opportunities to loose your shirt too. There is only one real coin shop in Memphis TN, and he has been in the business for 25 years or more. I guess that means he knows his business.
My recommendation, as with any other business, is to draft a business plan. This plan should include all factors involved with the startup and management of a business - including but not limited to sources of funding, market research, expenses involved with startup and operationg, etc. This forum is a great place to learn about some of the costs involved and I know there is one recent thread started by National Dealer about just that topic. In regards to acuiring inventory, many dealers start as collectors and convert their collection into inventory when they start "dealing." Others acquire the inventory of another dealer who is leaving or has left the business, others begin with marketing efforts to acquire collections, estates, etc. Personally, my starting inventory consisted of items from my collection, another inventory I took over, and a large and ongoing acquisition effort. In regards to funding, I could be wrong, but I believe you may home some difficulty securing traditional funding to start a new coin business unless you have demonstrated ability in the field - ie, you worked for another dealer for a substantial amount of time, have a well thought out business plan, and a solid marketing plan.
thanks cdcda. I was really just curious how they get started, not that I am planning to or even really wanting to. There would seem to be too much risk involved for my personal comfort level. My local dealer is an exceptional fellow, that I like, and I enjoy going to his shop. When he is not busy, and can talk, he is a really personable guy. If I opened a shop, I would have to move to another city, because I would not like to affect his business, or be his competitor. Does that sound strange? I buy stuff from him and pay 9.25% tax, and drive across town, when I could get it off the internet cheaper with a free shipping deal delivered to my door. His prices on Silver Eagles are not exactly "competitive" when compared to internet services with no tax (or shipping being 1\2 of the tax), but because I like him, I would rather pay the extra few dollars. But then, like the other day, my total was 34.57 and he called it $34. It is the little things that add up; the thought that counts. I have just always wondered how he got started in it, and how the initial financing and inventory building would go, and I wish him all the success in the world. If he retired or went out of business, that may be a different story. But as for now, I want to enjoy the hobby, build a nice collection, and patronize his business.
It is an interesting question to think about. How did they get started in the coin business? Mitchell. There is only one "real coin shop" advertised here in my hometown also. There are several jewelry/coin/pawn shops here but only the one who advertises as an exclusive coin dealer.
For myself, I worked for the local coin shop for 12 years, and bought it. Knowing coins is helpful, but knowing business is just as important.
