How To Start A Coin Business?

I think you should should try operating an e-commerce store firstly to avoid the expense of a stand alone store while you learn the ropes and build up a sizable and steady customer base. IF you can make that successful such you are nearing a point of profitability that is somewhere equal to what it takes to feed your family and cover stores expense and fund inventory, then you might have a shot and can at least break even. Just realize that if you go from e-commerce to brick and mortar you are giving up good money for the privilege of having a storefront. I think there is a reason brick and mortar stores are slowly fading away; but I'm sure there would be some in your community who would LOVE to have a new store around!

For me personally, I do a little ebay trading as a way to finance some coins I wouldn't otherwise be able to afford. But as much as I love coins, I'll keep my day job; the risks aren't worth it yet.

Estimate all expenses as accurately as possible. Include all non-business expenses (personal costs) too. Multiply by 24 as a minimum cash reserve excluding inventory.

Estimate GPD and GP% which is lower than typical retail. By averaging expenses per month and net sales required to break even you can also determine required inventory and turns per year.

Do not quit your day job. Set up an online site for buying and selling, and sell on ebay. Set up a table at a couple of coins shows for buying and selling. If you find that you can make a profit to support your family, then, you could consider opening a coin store and becoming a full time coin dealer.

In my opinion, it is all about inventory. Inventory brings people into the store, inventory gives people a reason to make the trip in the first place.
Many times I go to the LCS, as much to see the things I can't afford as the things I can. Almost always I leave with things I never intended to buy, coin albums, coin tubes, mint products, bullion .... etc.

People will not come in the door unless there is something to see. It is all about inventory.

with the ecommerce route.

Making $20,000 profit on a hobby is an accomplishment to be proud of. Making $20,000 profit in a business is poverty.

Thank you all so far for all the input! I think SpaceMaNy0 put it best! I think with the time I need to invest in my family right now and with the beginning of my new job, weekends will be the only time I might have to do any work with this. ecommerce seems to be the best route for now. And that way I can still fund my hobby. I do have an ecrater store, but have not updated it since my son was born 5 years ago. I am sure when I hit my 40's or 50's I will have more time to invest. Antiques are also a big interest of mine. Buying and selling old stuff with historical connections have always revved my engine.

I would still like to hear more input from you all! Thanks!

I agree with Joe, working in someone else's coin shop for a while would give you invaluable experience in seeing exactly how a coin business is run. There is so much to learn about the market, networking, metal (gold, silver, copper) prices, and things that have nothing at all to do with coins. Most importantly, you'd learn what NOT to do.

Also attend as many coin shows as you can and try to find a dealer who is willing to talk to you and even become your mentor. There's nothing like talking to someone who's doing it.

If you had a store front, you'd have to hire and pay employees. How would you determine their wages? How would you know who to hire? Obviously they'd need to be trustworthy; but how many people who answer a help wanted ad really know anything about coins? And I'd imagine the security details of a brick-and-mortar coin shop would be something you'd need to become expert in. All of these things are potential headaches that might very well sour you on the hobby unless you're willing to put up with them.

From where I sit, it's not enough to just have a passion for coins and history. You need to want to make money, too. At the end of the day, no one (unlike myself) cares about how many different dies were used to make the 1922 plain Lincoln. It's the ledger sheet that matters. In fact, I've observed that the majority of business people don't really care that much about their product--they care about how much money they're making selling it. That's not to say that being passionate about coins won't help. But without a positive balance sheet, a passion-based business is not going to succeed.

If I were you, I'd find a coin dealer and ask to pick his brain about your idea. Don't be disillusioned if he starts with, "Well, it's a tough business." Everybody says that about what they do.

I've got 4 words for you. Health insurance & Social Security. Health insurance for the self-employed is going to cost a lot more than anything provided by your employer. When you are self-employed 15.3% comes off the top to pay for SSI.

I'd suggest keeping your job & going with an online presence to start. You could also try being a "vest pocket" dealer. Take your inventory to shows & buy/sell/trade with the established dealers. While there you could cherry pick varieties if you have a specialty.