Thoughts about turning a hobby into a business

[macrocoin]

I was hoping to solicit some experiences from others that started out as coin collectors and later incorporated their pastime into a private business. Lately I have been thinking a lot about creating an actual business around my collecting. I am not looking to replace my current career, not even really looking for a second income. I am really just looking for a way to sustain my hobby. if the business took off, great, I would always like more income, but at least at first, the primary goal would be to get to enjoy coins without putting a lot of personal income into it.

 

I would most likely start off with creating a LLC, then just kind of buy and sell, see where things go. If i tap into a good thing and I like it, increase advertising. If I find that its costing more than generating, I can simply back off for a while.

 

I have no intention of leaving my day job, and since I would use personal income over time to get things rolling, I dont need a SB loan. I still intend to write up a business plan, but more for my own guidance than for the purpose of securing outside financial backing. I think its a good idea to take it seriously and a written plan would provide some structure. It will also come in hand if at some point down the road I decide to make this my full time business and need to get capital.

 

So, how many of you have thought this or done this?

Thoughts?

Advice?

Considerations?

 

Thanks for anything you would like to share.

[4ucoin-migration]

I started down a similar path at one point but didn't get very far. A few thoughts, get a web site...reserve a good domain name. Packaging and shipping can eat up your profits and take a lot of time. Look into buying materials in bulk. I use to reuse everthing I received (e.g., bubble wrap, etc.). You can print many of your own printing lables from your computer.

 

Keep good records of prices paid for merchandise. Remember to include shipping costs in your costs of goods/inventory. Sending raw coins to be TPG usually won't pay for the costs from them mark up but there could be exceptions.

 

If you are going to use ebay, there are a number of really good books that can provide a lot on tricks of the trade. One called "eBay Business" is particulary helpful.

 

Local advertising is very expensive. You'll need high volume to justify the costs of print advertisements.

 

Good luck.

[truthteller]

First and foremost. Throw away any business ethics you may have, since there are none in the US coin business. If you can do this, proceed.

 

In order to survive:

 

1) Be able to portray you know "everything" about coins, even though you don't know squat.

 

2) Try to BS as much as possible.

 

3) Look the buyer/seller in the eye while you steal their coins.

 

4) Throw lots of money around, mostly at bars and girlie shows.

 

5) Be loud and obnoxious 24/7. Hawaiian shirts are a must.

 

6) Try to eat lots of food at the coins shows and smear the case glass with mayonaise.

 

7) Give a potential buyer only 10 seconds to decide on a coin, then snatch the coin away quickly and say "pass or play".

 

8) Be able to tell everyone how you screwed the last old lady/old man/coin dealer out of thousands of dollars on the last coin deal.

 

9) Make sure you walk around the coin shows with toilet paper stuck to the bottom of your shoe. It is very chic.

 

10) When attending coin auctions, make lots of loud yawns, grunts, groans while scratching. These actions make you the Alpha Male so other potential bidders know when to bow out.

 

These are just some elementary but necessary points.

 

 

TRUTH

[DaveG]

Are you planning on setting up at shows or selling through the Internet?

[macrocoin]

Are you planning on setting up at shows or selling through the Internet?

 

Probably a little of both.

Not looking to mass market stuff at this point, mainly looking to sell more of the rarities. Not super high value items at the moment, but maybe later down the road.

 

I would rather sell a couple of coins in the five figure range than hawk junk silver at fleamarkets every weekend. Since its a side venture and not a source of primary income I have time on my side. If I sat on a coin for a year its fine...just wait for the right deal to come along.

 

I do see the potential for getting a table at a show here and there...selling the usual favorites, and putting a bucket of AG silver out for the masses, but I dont want this to be the mainstay.

 

Time will tell.

[midwest]

10) When attending coin auctions, make lots of loud yawns, grunts, groans while scratching. These actions make you the Alpha Male so other potential bidders know when to bow out.

 

[MAULEMALL]

First and foremost. Throw away any business ethics you may have, since there are none in the US coin business. If you can do this, proceed.

 

In order to survive:

 

1) Be able to portray you know "everything" about coins, even though you don't know squat.

 

2) Try to BS as much as possible.

 

3) Look the buyer/seller in the eye while you steal their coins.

 

4) Throw lots of money around, mostly at bars and girlie shows.

 

5) Be loud and obnoxious 24/7. Hawaiian shirts are a must.

 

6) Try to eat lots of food at the coins shows and smear the case glass with mayonaise.

 

7) Give a potential buyer only 10 seconds to decide on a coin, then snatch the coin away quickly and say "pass or play".

 

8) Be able to tell everyone how you screwed the last old lady/old man/coin dealer out of thousands of dollars on the last coin deal.

 

9) Make sure you walk around the coin shows with toilet paper stuck to the bottom of your shoe. It is very chic.

 

10) When attending coin auctions, make lots of loud yawns, grunts, groans while scratching. These actions make you the Alpha Male so other potential bidders know when to bow out.

 

These are just some elementary but necessary points.

 

 

TRUTH

I think this Bears repeating...

 

 

 

 

 

[Bruceswar]

Macro,

All I will say about getting into the coin business is be prepared to be lied to, cheated, stolen from, and many other things that come with business. Good luck if you do decide to go that route.

[HaydenTubbs]

Hawaiian shirts are a must.

 

 

Shucks,there goes my David Hall look-a-like getup for next year's FUN show

[HaydenTubbs]

One suggestion I would have is when you first get started try setting up a table at a local show.This will give you the opportunity to somewhat get the feel of things,as well as help you decide whether or not you want to focus more on vest pocket type dealer sales or embrace the eBay movement. I wouldn't recomend getting a website right up front as in order to sell online like this you're going to need to advertise.I would recomend if you go the online route to consider trying out auctions and use some of the free image hosting sites.If you do well,perhaps an eBay store might be appropiate....

 

 

 

Good luck,and remember the hobby can use as many reputable dealers as it can get

 

 

 

Hayden

[Bruceswar]

 

 

 

Good luck,and remember the hobby can use as many reputable dealers as it can get

 

 

 

Hayden

 

 

Thats very very very true words.