You can start and run a live auction house or set up one on line by using auction sites such as eBay. Running a live auction house is a lot of work and possibly requires hiring several employees, depending on the size of your auction house. But it can be quite profitable if you have good product, lots of advertising and competent employees.
Check out competitors in your area to see who is doing what and where.
Rent a warehouse to run your auction house. Set up the warehouse so that you can store stuff in the back and set up a stage and seating up front for your customers.
Get a business license at your local town hall. Ask them where to get a reseller's permit and obtain one. Usually there is a small fee for the business license, but the reseller's permits are generally free. The reseller's permit will allow you to buy product at wholesale prices for the purpose of resale.
Hire an auctioneer. To make life easier, enlist a payroll company to pay your employees. For a fee, they automatically calculate and file all taxes.
Decide what type of products you wish to auction and then purchase them wholesale.
Advertise in the local newspaper and radio.
Consider buying a franchise auction house to greatly increase your chances of success.
Tips and warnings
- Consider buying a franchise auction house to greatly increase your chances of success.
Things you need
- Start-up capital
- Warehouse location