by Leah and Elina Furman Published September 29, 1997 Read more Small Business Brainstorms	Okay, admit it, many of you savored a shot of Shadenfreude when those art gallery snooties took a nosedive right around recession time. Served them right for staging all those ever-so-hip openings without inviting you! But hey, it looks like the industry is coming back to life! That's right — gallery openings, cocktail parties, those little black dresses and delectable crudites — they're all back! And look who's still waiting for an invite. Before you follow your instincts, be forewarned...holding your breath ranks low on the list of attention-getting devices. Waiting for a miracle will also do very little to further your cause. If you truly love the field of art, what better way to land in the thicket than to start up a snazzy gallery of your very own? True, if parties are your only reason for crashing the biz, both you and your clientele may end up sorely disappointed. However, if your art acumen is unsurpassed by your Saturday night fever, and your friends agree that you are none other than Art Maven, opening a gallery is the venture for you. Unfortunately, there's more to the business than art savvy. As a newcomer to the action, your gallery's fate will rely entirely on your charisma, cunning, and manipulations. Sound a little harsh, does it? Just wait until you realize the scope of your mission — to win over as many art dealers, art buyers, art collectors, and gallery browsers as possible. You see? If you don't simply relish the concept of SCHMOOZE, your gallery will probably attract more creditors than customers. Raking in the Dough: First things first — the art world is a risky business. Profits can vary dramatically from one gallery to the next. Not to rain on your parade, but the grand opening/closeout clearance ratio for art galleries is nearly 1 to 1. Nevertheless, if you do succeed in braving the storms of start-up, you can eventually expect an income that's anywhere between $30,000 and $1 million per year.
If you do succeed in braving the storms of start-up, you can eventually expect an income of up to $1 million per year.	Much of your profits will depend on the type of art you are selling. For example, if you are dealing with contemporary artists, you'll get most of your work on a consignment basis. Your take of the sale will be approximately 50%, give or take 10%. If, on the other hand, you're dealing with a secondary market (this is "used" art, most often created by the dearly departed artistes), you can score up to 80% of a work's sale price, depending on what you can negotiate with the previous owner. Start-Up Costs and Financing: Just because you can get your merchandise with no money down, that doesn't mean you can go into the business without liquid assets. That's right, you'll need capital with a capital C. Expecting the best is all well and good, but every successful art dealership prepares to bring in a big old zip for at least six months. If you can put together a bankroll sufficient to finance your rent, phones, electricity, marketing, and sales support until you're out of the red, you just may make it after all. Market Research & Selecting a Location: Location is mucho importante in the gallery biz. You probably have the perfect spot already in mind. But do look again...if a Gap has recently sprung up in your vicinity, head for the hills. It's not really all that difficult to pick a location. In fact, if you know the type of art you'll be selling, the location almost picks itself. For example, local (read cheap) talent can be displayed in lower rent areas, which are fraught with starving artists and thriving galleries. New York's Greenwich Village used to be just such a locale. If you look around your ville, chances are you'll find a Greenwich to call your own. But, there's more to owning an art gallery than discovering the next Haring or Basquiat; you may just want to capitalize on some well-established reps. If such is your plan, expect astronomical rents and even bigger amounts of schmoozing. You'll need a prime location to attract that moneyed collector folk. What's more, you'll need to have charm and chutzpah in spades if you're going to get the art stars aligned in your favor. License and Insurance: Before you deck your walls with art aplenty, you're going to have to go straight to the insurance man. You must obtain all the insurance necessary to cover each and every masterpiece housed by your gallery. This is your livelihood we're talking about. In fine-printese, the art gallery is just like any other retail store. Translation: You don't need any special "purveyor of fine art" license. All that's required is the basic package, no more and certainly no less than a Federal Tax I.D. number, a business license, and a sales tax number. You can check with an accountant to make sure all's right with your paperwork. Stocking Up: You'll have to tack up some art work before you open for business. There's a variety of resources to choose from in every area. Check out your neighborhood Artist's Coalition. You'll find slides depicting a wide array of contemporary art works. There are also various art fairs and exhibitions which can put you on the right track.
You'll have no shortage of artists petitioning for a shot at your display area once your tent has been pitched.	Don't worry too much about the footwork; you'll have no shortage of artists petitioning for a shot at your display area once your tent has been pitched. Soon enough, your toughest task will lie in turning away those well-meaning applicants whose work is bound to die a slow and lingering death. And make no mistake about it, turn them away you must. The key to a successful art gallery is sellable work. You'll have to keep a sharp eye out for work with broad appeal. Once you're more secure in your business, you can begin to take chances on experimental pieces. But in the meantime, remember you are a retailer, not a curator. The Price is Right: Most artists will know how much their masterpieces are worth. If you agree to the price, there's no problem. If you don't, the book stores are stocked with negotiation tapes you can look into, or you can simply look to a different artist. Should the art work not sell like Beanie Babies, you may decide to lower the price. Don't forget to obtain the artist's approval if you're planning on a markdown. If you're still staring at the eyesore four markdowns later, cut your losses and start looking for a fresh canvas. Cast and Crew: You'll need to fund at least one other person's bed and breakfast if you're going to do this art gallery thing right. This assistant should be someone with an extensive art history background. That's right — if they can't play with the lingo of chiaroscuro, you'll be giving them the old don't-call-us-we'll-call-you number. Also consider notifying your employee about a probationary period. This is crucial, because closing ability can't be judged at an interview — and a closer is exactly what you need. Getting the Word Out: With art lovers as your target audience, you won't be needing the services of a hired gun to figure out where to stick your ads. Any popular art magazine should do the trick. You can also up your name recognition with the tourists by advertising on closed circuit T.V. (which is zoomed directly into hotel rooms), as well as special magazines such as Where, which outline your city's attractions to visitors. Another nifty venue for ad space, guaranteed to target your audience and bring in droves of serious browsers, are art gallery guides. Most art galleries will have an entire array at their entrance. And finally, to get to heart of this issue, no art gallery's marketing scheme is complete without a solid party. Send out a mailer whenever you feature a new artist. Invite everyone with whom you'd like to rub elbows, and then some. Don't forget to mention the free food and drink, and your gallery will be hopping come sundown.
WEB RESOURCE: U.S. Small Business Administration Online A terrific resource with information about the Small Business Act, tips on starting and financing your business, local resources, and much more. .	Associations: Okay, this column should have given you a few basic ideas about the world of gallery ownership, but there is much more to learn before you dive in. If you feel you don't really know the heads from the tails of art gallery proprietorship, if you've got ethics questions on the mind, or if you just want to to get the real scoop from some old hands, contact the Art Dealers Association of America in New York at (212) 940-8590. Test Your ArtQ: Entrepreneurial spirit alone won't make your gallery a success. You have to be versed in the history of art to thrive in this business. If you're not acquainted with the following terms, check yourself into an art history program before investing your life's savings. baroque art nouveau contrapposto collage casting fresco pointillism genre painting Rococo iconography impressionism mannerism fauvism silkscreen op art mural dada surrealism happenings classicism expressionism abstract expressionism minimalist art brute Leah and Elina Furman are freelance writers living in Chicago, and are the authors of The Everything After College Book, to be released by Adams Media in the fall of '97. Leah and Elina invite readers to visit their homepage at members.tripod.com/~ElinaF. © 1997 Leah Furman and Elina Furman. All rights reserved.