It is anticipated that between 2019 and 2028, the market for sports trading cards would expand by more than 700%. Your own sports trading card business might take advantage of your personal collection to create a sizable business opportunity. If you don’t already have a collection, you may create one from nothing and capitalize on the craze to make a tidy profit.
You’ll need to master business acumen in addition to having a talent for picking the appropriate cards. Fortunately, this helpful step-by-step manual will teach you everything you need to know about beginning a business and will set you on the right track to being a successful sports card.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
|Good money – The value of sports trading cards can rise dramatically.|
Flexibility: Work from home when you choose.
Huge market: Trading cards generate billions of dollars in revenue.
|Finding Cards – It can be difficult to find cards at bargain prices.|
Hold cards for a while to earn higher profits through delayed returns.
- Industry size and historical growth: In 2019, the global market for sports trading cards was valued at $13.82 billion.
- Forecast for growth: The global sports trading card market is expected to increase by more than 7 times by 2028, reaching around $100 billion.
Cost of Starting Sports Trading Card Business
Between $3,000 and $7,000 is needed to launch a sports trading card business. A website and a stock of trade cards account for the majority of the expenses.
Is Sports Trading Card Business Profitable?
There is a wide range in cost for sports trading cards. A profit margin of roughly 70% is potentially achievable in the present market provided you can find good cards, which are typically older cards. A $50 average sales price per card will be used in these calculations.
It’s possible that you’ll sell four cards per day in your first year or two, earning you $73,000 a year. According to the assumed 70% margin, this would result in a profit of $51,000. The average price of your cards could reach $100, and you might sell five cards a day as you collect more expensive cards. Your annual profit would be a nice $130,000 with $183,000 in revenue.
- choosing cards with the most potential value
- hefty trading card auction websites’ competition
Step 2: Create a Strategy
Identify a Gap
Examine the products, pricing ranges, and best-selling items offered by local and online sports card retailers. You’re aiming to fill a market gap. For instance, it’s possible that the neighborhood lacks a company that specialized in rare basketball sports cards, such Kobe Bryant or Lebron James. Your word-of-mouth advertising may pick up steam as a result, drawing customers in immediately.
You must decide if you want to offer a variety of cards or if you want to focus on one particular kind of card. You may also sell gaming cards, like Pokemon cards, in addition to sports cards. Sports memorabilia could be sold as well.
Sports trading cards come in a wide range of prices. You must research current market rates for each card. An ideal profit margin would be around 70%.
This Step By Step Profit Margin Calculator can help you figure out your markup and final pricing points when you know your costs. Keep in mind that the rates you use at launch should be flexible if the market calls for them.
Sports collectors and fans will be your target market, which is a fairly diverse group. Sites like Facebook, Instagram, and TikTok should all be a part of your broader marketing strategy.
You may probably run your business from home at all times, but if you do require an office, you can find rental office space in your neighborhood on websites like Craigslist, Crexi, and Instant Offices.
You may want to adhere to the following guidelines while selecting a business space:
- accessible by public transportation in a central location
- With plenty of natural light and ventilation
- As your firm expands, your lease might be made more accommodating.
- a space that is ready to use and doesn’t require any substantial upgrades or repairs
Step 3: Write a Business Plan
Every company requires a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. An investor’s and partner’s ability to comprehend your company and its goals is also enhanced by a business plan:
- The executive summary, which should be written once the plan is finished, provides a concise summary of the entire document.
- Overview of the business, including ownership, vision, mission, and corporate goals.
- Clearly state your products and services that you are providing.
- Analyze the market by performing a SWOT analysis and evaluating trends like changes in demand and development potential.
- Construct a list of the benefits of your services after analyzing your top competitors’ strengths and flaws.
- Develop sales, marketing, and promotional tactics by considering your companies’ USPs (unique selling propositions).
- Overview of the management team, including a corporate structure, information on each member’s responsibilities and educational background.
- Operational Plan: The operational plan for your company outlines logistics, office location, essential assets, and other purchasing decisions.
- Financial Plan: Three years of financial planning, which includes startup expenses, break-even analyses, profit and loss projections, cash flow, and a balance sheet.
- Added financial or commercial documentation should be included in the appendix.
Step 4: Create a Marketing Plan
Even if casual online users will contribute to a portion of your revenue, you should nonetheless spend in digital marketing! Spreading the word is crucial for new businesses as it will increase customer and brand awareness.
Connect your social media accounts to your website once it is live. Because you can make interesting postings that promote your items on social media, it’s a terrific tool for business promotion:
- Facebook is a fantastic tool for paid advertising since it enables you to target particular demographics, such men under 50 in the Cleveland area.
- Facebook-like advantages with a different audience on Instagram.
- Website: SEO will assist in advancing the position of your website higher in pertinent search results, which is essential for boosting sales. On your website, make sure to optimize the calls to action. A call to action, such as “Buy Now,” can be made in several sizes, colors, and positions. As a result, purchases may rise significantly.
- Google and Yelp: Listing on Google My Business and Yelp might be essential for businesses that depend on local clients to increase visibility and attract new clients.
To raise awareness of your services and establish your brand, make use of your website, social media presence, and in-person activities. Below are a few ideas.
- Create a blog and publish regularly. Share on many sites while varying your material.
- Publicize new products, sales, and other information in press releases.
- Choose platforms that will allow you to reach your target market and run targeted social media marketing.
- Pay-per-click advertising: Boost your search engine ranking with Google AdWords. Initial keyword research is required.
- Influencer marketing: Pay users of social media with a sizable following to promote your sports trading cards. With smaller audiences and cheaper rates, micro-influencers are available.
- Create a podcast — By doing this, you may connect with your audience on a more personal level.
- Publish infographics and include them into your material after creating them.