Art consultants provide two distinct (but connected) commercial tasks. They may collaborate with artists to assist them in identifying their best target audience and promoting the artist’s work in order to improve sales. An art consultant may also engage with clients seeking particular types of art or galleries seeking to commission specific pieces from certain artists. A consultant, in any case, is a crucial means for a community’s creative presence to develop and prosper.
Table of Contents
Follow these ten steps to launch an art consultancy business:
Plan your Art Consulting Company
Create a legal entity for your art consulting business.
Taxes must be registered for your art consulting business.
Create a Business Bank Account and a Credit Card
Create Accounting for Your Art Consulting Company
Get the Permits and Licenses You Need for Your Art Consulting Business
Purchase Art Consulting Business Insurance.
Create a brand for your art consulting business.
Create a website for your art consulting business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to launching your art consultancy company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting an art consultancy business?
One of the nicest aspects of starting an art consultancy company is that it requires very little capital. You will often work from home, on the road, at an artist’s house, or in an art gallery. That means you won’t have to rent a separate place or pay for specialised equipment. You may successfully launch this firm for $2,000, with $500 going toward the creation of a professional website and $1,500 going toward a combination of conventional advertising (such as local newspapers, radio stations, and potentially cards and leaflets at relevant art venues) and internet advertising.
What are the continuing costs of running an art consultancy business?
Aside from paying for any trip expenditures and doing extra promotion for yourself (both of which are variable costs), your only significant recurring price will be website hosting (about $100 per year). Because of the minimal cost of beginning and running this company, it might work well as a part-time job for someone to test before making it their full-time career.
Who is the intended audience?
The target market differs depending on the clientele. For example, art gallery demographics might vary greatly depending on the art director’s preferences and their own specialised specialty. Affluent millennials are an unexpectedly expanding audience for art collectors, since they are more likely to regard art purchases as an investment rather than a luxury. The artists themselves will generally be young artists who have just graduated from art school and are eager to establish a reputation for themselves.
How does an art consultancy firm generate revenue?
Art consultants often earn money by charging varying prices for different tasks. For example, you may charge a flat cost for purchasing pieces of art for collectors, or you could negotiate a percentage fee in which you earn a part of the final price. Similarly, when promoting the works of artists, you may charge a fixed price for certain services (demographic research, marketing consulting, and potentially marketing design), or you may operate more like an agency who earns a portion of sales profit.
How much money may you charge your customers?
The fee you charge customers is determined on the service you provide and the client. For example, if you are assisting an artist or gallery in selling a piece, it is appropriate to charge them a fee of ten to fifteen percent (as a normal agency would). If you are assisting a collector in acquiring a piece of art, it is appropriate to charge them a fee of between 15% and 20%. Typically, you will negotiate a fee based on the planned price of the piece of art and the amount of time it will take you to acquire or sell the object, enabling you to ensure you are fairly rewarded.
How much money can an art consultancy firm make?
Obviously, the actual profit of this company is determined by the number of customers you have and the number of pieces of art you assist artists in selling and acquiring for collectors. The Bureau of Labor Statistics states that the average salary for “Advertising, Promotions, and Marketing Managers” is $127,650. Your early years will most likely yield significantly less, but once you have a continuous stream of customers from whom you are receiving ten to twenty percent commission each creative piece, it is simple to establish a consistent revenue flow.
How can you increase the profitability of your company?
Do not overlook the social aspects of your employment. Putting on community events for artists and art enthusiasts (such as a happy hour at a fashionable bar or an informal show in a coffee shop) may help you build your network and influence. Consider assisting young art majors in putting on their first shows and selling some of their first big works: this enables you to find potential early on and maybe become their agent for many years of success. Finally, try broadening your area of influence: since many of your consumers (both artists and collectors) will be millennials, they will be more than willing to collaborate with you remotely. This enables you to assist individuals all around the country and the globe, considerably improving your chances of acquiring regular (and wealthy) clientele.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your art consultancy firm is sued, forming a formal business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run an art consultancy firm, you may need to get certain state licences and licences. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Occupancy Certificate
A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for an art consultancy company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building rules and zoning standards for your business’s location to verify compliance and the ability to acquire a CO.
Contract for Services
Before beginning a new project, art consultant firms should need customers to sign a services agreement. By defining payment terms and conditions, service level expectations, and intellectual property ownership, this agreement should clarify client expectations and reduce the likelihood of legal problems.
Agreement on Informed Consent
To reduce legal risk and promote openness, it is advised that you give clients with informed consent agreements.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market an Art Consulting Company
In addition to the previously listed promotional tactics (such as newspapers, radio, websites, and online commercials), you should build social media pages for your company on platforms such as Facebook and even Instagram. The art industry is a visual medium, and social media allows you to reach your desired demographics while also providing the ideal platform to display the work you are assisting young artists in selling.
How to Keep Customers Returning
In addition to advertising, you should try joining local art groups and getting acquainted with the city’s academic art scene and galleries. This allows you to identify great artists who will need representation in order to get discovered. To discover art collectors, one effective technique is to attend the same kind of art events, auctions, and galleries they are likely to frequent, which allows you to break the ice in a comfortable and familiar context.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.