How To Buy An Art Gallery Or Museum
If you are in the market for a new business and wish to invest in the arts then buying an art gallery or museum may be the answer to your prayers. Although the majority of art gallery owners do take an avid interest in their business and often run it for the love of art, if you simply want an investment then buying an art gallery may be a great idea. You can get as involved as you like because an art gallery will be profitable if run correctly whether you are involved or not. The process of how to buy an art gallery or museum is not complicated at all, but there are several areas of buying an art gallery or museum that you need to look at first.
The level of profitability that is associated with an art gallery varies from gallery to gallery and is dependent on a lot of features that each and every gallery may or may not have. As a result of the nature of art, and all of the different genres and artists that are involved with it, there is no average profit. It is more what you make of it. Although a good art gallery for sale should have an annual profit of at least $40,000, it may be more or less depending on the stock, which should of course come in the package.
Your accountant should look at the accounts and cash flow for the last four years and the marketing prospects of the individual art gallery for sale before any firm offer is made. This will give you a better idea of the profitability of the art gallery in question and the potential for expansion of that profit, such as Internet marketing and gala opening nights for exhibitions.
The good thing about investing in an art gallery or museum for sale is that you may be eligible for funding so you would not have to fund any alterations you make on your own. There are many grants available, the details of which can be found by contacting the local art council or asking the existing owner the sources of revenue he or she has tapped into in the past. There may also be a viable system in place to deal with donations or rented space that artists use to exhibit their work. The gallery may host art classes or publish books and guides and so on. There are many ways to make money and lift profits and these are all sources of funding as well.
All of the above can contribute to the gallery’s level of profitability and make thousands of dollars every year, but you have to have the facilities in place before income is generated, and the property and location is key to this.
Property And Location
The property of an art gallery for sale will often be leasehold, but a freehold gallery is much better as it would enable you to undertake expansion and put measures in place to increase the profitability of the gallery. However, it will also contribute to the asking price. It does not matter whether it is leasehold or freehold in actual fact because an art gallery should not be removed from its existing location. It will undoubtedly have an existing clientele and viable support around it and taking the art gallery for sale away from this is not a good idea.
The location is important because a good location can mean the difference between succeeding and failing. When buying an art gallery, you should aim for a town or city location or a tourist area because these places will attract more business.
If you o choose to invest in an art gallery for sale then you will need a lawyer on board to negotiate for stock, contacts, resources and the lease itself, but your lawyer will also come in handy when examining insurance claims in the past. He or she will then be able to take you through the process of how to buy an art gallery or museum from start to finish in collaboration with the seller, as would a. Whichever art gallery or museum you choose to buy, you could in fact begin to reap the rewards of buying an art gallery or museum within a few months.