Openning an art gallery
major_h...@my-deja.com
starting to gather information for this venture. Would appreciate any
feedback or pointers to sites that reference the matter-- I'm most
interested in the possible pitfalls (and obviously how to avoid them)
of the business. If you could answer any of these questions I would
greatly appreciate it.
1) Loans- How do banks look upon the art industry for granting
loans? How much money should we bring to the table for say a 500k loan.
2) How much of a safety net should we give ourselves in terms of
savings (eg how many months should we have money reserves to cover)
3) What is the best time (season) to open up a gallery? (this may not
be optimally achievable due to timing on obtaining a location)
4) How effective is the internet in terms of establishing exposure,
credibility, sales, etc. (eg if we were to parallel or brick and
mortar store on the internet-- what techniques have been most
successful here? video, bios, etc?)
5) How much money (as a percentage of intial investment) should one
spend on advertising/attracting clients?
6) Is it better to purchase or consign works?
Thanks for any help.
Sent via Deja.com http://www.deja.com/
Before you buy.
Andrew Werby
major_h...@my-deja.com wrote in message
<87kt7k$dal$1...@nnrp1.deja.com>...
>Some friends and I are looking to open up a gallery in NYC
[Why? Is this primarily to make money, or is there some art you feel so
strongly about
showing that you are willing to go through the hassle of setting up a
gallery?]
and I'm
>starting to gather information for this venture. Would appreciate any
>feedback or pointers to sites that reference the matter--
[Check out what Paul Klein has to say about starting his gallery in Chicago:
http://www.kleinart.com/html/a_closer_look_at_klein_art_wor.html ]
I'm most
>interested in the possible pitfalls (and obviously how to avoid them)
>of the business. If you could answer any of these questions I would
>greatly appreciate it.
>
>1) Loans- How do banks look upon the art industry for granting
>loans? How much money should we bring to the table for say a 500k loan.
[I'd be surprised if you could get a bank to finance this venture. Art
galleries
are considered highly speculative enterprises, unless you have established
a strong history of profitability elsewhere.]
>2) How much of a safety net should we give ourselves in terms of
>savings (eg how many months should we have money reserves to cover)
[I'd say at least a year. Rent will be your biggest expense. To save money,
look for vacant properties which the landlord wishes to appear to be
occupied by classy sorts of businesses. You can sometimes negotiate
cheap (or even free) rent if you promise to disappear as soon as a "real"
tenant comes along. ]
>
>3) What is the best time (season) to open up a gallery? (this may not
>be optimally achievable due to timing on obtaining a location)
[Natives leave New York in the summer, but tourists arrive then. The months
leading up to Christmas would probably be best for sales.]
>
>4) How effective is the internet in terms of establishing exposure,
>credibility, sales, etc. (eg if we were to parallel or brick and
>mortar store on the internet-- what techniques have been most
>successful here? video, bios, etc?)
[The internet is great for exposure, but there are quite a few galleries
online.
You'd have to figure out some way to stand out. Web videos are mostly an
annoyance at this point, unless you are targeting only those customers
surfing on T-1 lines.]
>
>5) How much money (as a percentage of intial investment) should one
>spend on advertising/attracting clients?
[All you can spare, after paying the rent.]
>
>6) Is it better to purchase or consign works?
[Better for whom? Most artists, naturally enough, would prefer to sell
outright, but
virtually no galleries buy from anyone but the biggest "names"- and
generally even
they have to be dead first. Once you open, you will soon find yourself
innundated by
portfolio-toting artists hoping to unload their work. If you become like the
rest of the
galleries in New York, you will develop defense mechanisms to cope with
this: hiring
receptionists with bad attitudes, collecting huge piles of slide folders
which you never
look at or return, and never being available to meet new artists.
Of course, if you plan to specialize in Old Masters, you will have fewer
difficulties with their
beating down your doors.]
>
>Thanks for any help.
>
[I hope you found this helpful. If you are looking for unknown artists who
think they're great,
you've come to the right place...]
Andrew Werby
http://unitedartworks.com
major_h...@my-deja.com
> [Why? Is this primarily to make money, or is there some art you
feel so
> strongly about
> showing that you are willing to go through the hassle of setting up a
> gallery?]
>
there are 3 of us. one guy is passionate about it (he will be running
the show). us other 2 are mostly admirers of the craft and have our
own careers in different fields. i personally think it would be fun.
> [Check out what Paul Klein has to say about starting his gallery in
Chicago:
> http://www.kleinart.com/html/a_closer_look_at_klein_art_wor.html ]
>
seems like he was already established and thus his position differs
greatly from ours.
> [I'd be surprised if you could get a bank to finance this venture. Art
> galleries
> are considered highly speculative enterprises, unless you have
established
> a strong history of profitability elsewhere.]
>
this is understandable if not for the fact that there are soooo many
galleries in nyc. are they all self funded somehow?
> [I'd say at least a year. Rent will be your biggest expense. To save
money,
> look for vacant properties which the landlord wishes to appear to be
> occupied by classy sorts of businesses. You can sometimes negotiate
> cheap (or even free) rent if you promise to disappear as soon as
a "real"
> tenant comes along. ]
we are looking at up and comming neighborhoods. established ones are
far to expensive to be practical. we had projected out as far as 18
months.
>
> [Natives leave New York in the summer, but tourists arrive then. The
months
> leading up to Christmas would probably be best for sales.]
> >
my thought was to open in the spring to take advantage of the 3
consecutive outside seasons. fall is doable but you have to contend
immediately with winter which may hamper your momentum.
> >5) How much money (as a percentage of intial investment) should one
> >spend on advertising/attracting clients?
>
> [All you can spare, after paying the rent.]
> >
what type of advertisment do you find work best? local papers? hire
someone to pass out leaflets in popular parts of town?
Andrew Werby
major_h...@my-deja.com wrote in message
<87qgh3$fjn$1...@nnrp1.deja.com>...
>thanks for the response
[No problem, Major.]
>
>> [Why? Is this primarily to make money, or is there some art you
>feel so
>> strongly about
>> showing that you are willing to go through the hassle of setting up a
>> gallery?]
>>
>there are 3 of us. one guy is passionate about it (he will be running
>the show).
[What sort of art is it that he gets so excited about? The answer to this
question determines the answers to some of the others you pose. If he
really likes "cutting edge" contemporary art, for example, your potential
patrons will be different from the crowd that goes for Old Masters. ]
us other 2 are mostly admirers of the craft and have our
>own careers in different fields. i personally think it would be fun.
[Let us know after a year or so whether it really was, okay?]
>
>
>> [I'd be surprised if you could get a bank to finance this venture. Art
>> galleries
>> are considered highly speculative enterprises, unless you have
>established
>> a strong history of profitability elsewhere.]
>>
>this is understandable if not for the fact that there are soooo many
>galleries in nyc. are they all self funded somehow?
[I think that running a gallery in New York is like making wine here in
California-
it seems like it would be fun, and people with money do it as a semi-hobby-
if
they lose money, they can deduct the losses from the proceeds of other more
profitable business activities.]
>> [I'd say at least a year. Rent will be your biggest expense. To save
>money,
>> look for vacant properties which the landlord wishes to appear to be
>> occupied by classy sorts of businesses. You can sometimes negotiate
>> cheap (or even free) rent if you promise to disappear as soon as
>a "real"
>> tenant comes along. ]
>we are looking at up and comming neighborhoods. established ones are
>far to expensive to be practical. we had projected out as far as 18
>months.
["Up and coming" in New York means you have to step over winos sleeping it
off
(in puddles of their own making) in order to enter the place. While you
may be
willing to do this, it's asking a lot of your average well-heeled art
consumer. Being
a pioneer can be lonely - but once there is a certain number of galleries in
the
neighborhood, the rent will reflect this. Also, some of the local
inhabitants, aware
of this dynamic, will go out of their way to combat the forces of
"gentrification". ]
>
>>
>> [Natives leave New York in the summer, but tourists arrive then. The
>months
>> leading up to Christmas would probably be best for sales.]
>> >
>
>my thought was to open in the spring to take advantage of the 3
>consecutive outside seasons. fall is doable but you have to contend
>immediately with winter which may hamper your momentum.
[Winter doesn't seem to stop New Yorkers from doing whatever it is they
do- I'm not sure why...]
>
>
>> >5) How much money (as a percentage of intial investment) should one
>> >spend on advertising/attracting clients?
>>
>> [All you can spare, after paying the rent.]
>> >
>what type of advertisment do you find work best? local papers? hire
>someone to pass out leaflets in popular parts of town?
[This comes back to question #1 above- what sort of a crowd are you trying
to reach?
If you are specializing in Canine Art, for instance, pass out flyers at the
Dog Show. If
you're selling early Ab-Ex works, this tactic might not work so well- an ad
in ArtForum
might be more productive. If you're trying to lure the starving artist crowd
in hopes of
good word-of-mouth, never underestimate the power of good catering...]
>
Andrew Werby
http://unitedartworks.com
major_h...@my-deja.com
"Andrew Werby" <and...@computersculpture.com> wrote:
>
> [What sort of art is it that he gets so excited about? The answer to
this
> question determines the answers to some of the others you pose. If he
> really likes "cutting edge" contemporary art, for example, your
potential
> patrons will be different from the crowd that goes for Old Masters. ]
>
>
> [I think that running a gallery in New York is like making wine here
in
> California-
> it seems like it would be fun, and people with money do it as a semi-
hobby-
> if
> they lose money, they can deduct the losses from the proceeds of
other more
> profitable business activities.]
>
Not good to hear as we aren't independently wealthy. We do expect to
make money : )
> ["Up and coming" in New York means you have to step over winos
sleeping it
> off
> (in puddles of their own making) in order to enter the place. While
you
> may be
> willing to do this, it's asking a lot of your average well-heeled art
> consumer. Being
> a pioneer can be lonely - but once there is a certain number of
galleries in
> the
> neighborhood, the rent will reflect this. Also, some of the local
> inhabitants, aware
> of this dynamic, will go out of their way to combat the forces of
> "gentrification". ]
>
actually we're in between. not starving gallery owners but not
millionaire tycoons either. projecting 10k/mo in rent for a 2500/ft
spot would get us something decent and gallery friendly.
> [Winter doesn't seem to stop New Yorkers from doing whatever it is
they
> do- I'm not sure why...]
this all depends. those that like art but can't really afford it will
venture out if bored in inclement weather. those who can afford it
wouldn't want to mess up their hair and/or suits. we'd have to be
proactive for the latter.
gedal
While you haven't developed defense mechanisms to cope with material
submissions ( I hope you haven't) and there's no receptionist with bad
attitudes I'd like you to see my work at http://c.galrom.tripod.com and
let me know what you think at gal...@email.com
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