Email us to get our templates and other tools to make the most of your passion.
What does it take to turn your passion into a business?
At MAGPIE, we support collectors as they work to inventory, organize and manage their collections. Many of those collectors run part time businesses buying and selling cards at card shows or on eBay as they look to grow their personal wealth.
Here are the most common mistakes we’ve seen as collectors become dealers and how to avoid them.
1) New dealers don’t set out goals or expectations for themselves.
If you feel ready to take your love and expertise in trading cards to the next level, make sure you know why you are doing this and what you hope to get out of it. Are you looking to add highly coveted assets to your personal collection? Make money off your expertise? Justify attending more shows or events? Set up a full time business? Answering these questions helps to set you up for success.
2) New dealers fail to determine how much time/ money to dedicate.
It is so easy to get carried away and spend days trolling Ebay for good deals or thousands of dollars on cards you plan to flip. The decision around what to invest in terms of time and money is a deeply personal one and should be based on your resources, family circumstances and interest. We’ve heard lots of stories about conflicts with family members, so being really thoughtful about this process can help your family be more supportive and avoid putting your assets or time at risk.
3) New dealers fail to focus on a particular market and miss matching their supply to demand.
With so many different trading card categories, from sports to Pokemon to entertainment, it can be overwhelming to figure out what you need in your inventory to make the right kind of deals. When you are starting off, it can be helpful to focus on assets where you have some initial interest or expertise. Next, you want to think about where you are likely to be selling— at in person shows, via digital card communities, or through major marketplaces. Figuring out your differentiation will you make the right decisions about deals to do and will make it easier for other collectors to find you.
4) New dealers fail to manage inventory, track financial performance & file taxes.
While you may see collecting as simply a hobby, the US government (and many state & international ones) may view your business as a taxable entity. For that reason, it is important to consider setting up a legal entity to handle your transactions, a business bank account to manage revenue and payments outside your personal account, and basic tools to track inventory and deals to get visibility into your costs, expenses, and profits.
5) New dealers fail to track their customers and develop long term relationships.
We interviewed over 50 people at MINT Collective. Nearly every single person said their favorite part of #thehobby was connecting with other collectors. It’s easy to follow people on Instagram or see them in person at trade nights, but successful dealers know exactly who is looking for the assets they have in their inventory. Keeping track of this can accelerate your sales and build deeper relationships than you ever thought possible to grow your business.
MAGPIE has developed a free template for collectors looking to track their inventory, clients & deals. We use it for our White Glove Service and want to make it available to the whole community to thank all of you for your support.
Email us to get the template and other tips on how to make the most of your passion.