Starting A Card Business: Tricks and Tips Of The Trade

You might be surprised to learn that the growing trend of trading cards can be extremely profitable. However, the rise in such exchange of acquired passion is not exactly considered an ideal investment. Does that mean your precious collection is worthless? Well, that's far from the truth! One of the most fascinating stories, narrated by Linda Vo speaks volumes for your dream card business. In August 2020, Linda called quits on her sales rep career and expanded her card business side-hustle. By September 2020 her Pokémon card business had generated $65,000 revenue! You have got to take your chances, right?

So then, let's dive right into the basics of pulling a successful trade.

Table of Contents

• An Overview: Card Businesses On The Rise
• Fad or Trend: The Debate of Card Business Longevity
• How Do Card Businesses Make Profit?
• Starting Your Card Business
• Handy Skills
• Words Of Caution
• Final Thoughts

TLDR

• Card Business has dominated the markets for long enough. However, now there has been a rise in this industry.
• It can be attributed to the change in people’s lifestyles, tastes, and preferences, following the 2020 pandemic.
• The trend in card businesses may stick around for good.
• Card Businesses make a profit by offering unique merchandise to the focused target groups.
• Some of the tactics like collaboration and promotional events may boost business growth.
• Interpersonal, communication, and people’s skills may come in pretty handy if you are looking to start your card business.

An Overview: Card Businesses On The Rise

Card Businesses usually focus on the huge sales of various cards. This includes both sports and game cards, apart from memorabilia. Non-sporting or game cards feature the kinds of Pokemon, Yugioh, Magic, and even comic cards. You might even want to diversify your market offerings to card-related merchandise or simply a wider collection of cards.

As far as the growth of this industry is concerned, it's good news for you. There has been an exciting surge in the demand for cards. Legendary collectors and their families are prompting the sale of their collections. Hence, leading the buzz back in motion, as supplies of rare pieces are on the rise.

Moreover, new collections are always an exquisite deal to collectors looking for more exclusive choices. And if your collection contains signatures from famous players, special backgrounds, they become instantaneously more attractive.

Card businesses saw significant popularity during the pandemic. With lockdown and the prevailing sense of isolation, such an exchange was a gateway for most traders. The shared interest formed a connection among the traders and collectors. Even with the uplift of restrictions, the attachment to the trade is unlikely to fade.

Fad or Trend: The Debate of Card Business Longevity

Luckily for Linda, her launch coincided with the celebrations of Pokemon’s 25th anniversary. Maybe your next step can target such promotional strategies too!

However, the sustainability of such hype is a concern. Of course, as with any collectibles, none of them come with a guarantee card for persistent value. Nonetheless, to declare the entire surge as a fad may be too harsh.

Alongside, other factors contribute to the valuation of cards. The quality and state of your collection, as well as how rare the collectibles are determine the value significantly.

Most importantly, the availability of demanded stocks is a major contributor to your businesses’ growth. Imagine having a waiting list for your collection but no cards to sell.

Then again, sometimes collectibles considered unique may be reprinted or revamped. As a result, values may drop extensively. In fact, live trackers, like Pokémon Prices sway almost like the stock market shares. So, whatever your strategies might be, keep an eye on the latest suppliers and the market noise.

Thus, it is safe to say, with the right network and resources, your card business can turn into something profitable.

How Do Card Businesses Make Profit?

Simply like any other business. You have your target customers, interested prospects, and a strategy to generate demand for your market offerings. Therefore, by selling cards and other associated goods to interested players, collectors and fans, you earn a profit.

Generally, you drive the bulk profit from highly-sought after individual cards, though they are expensive to source. However, this is because most sellers let collectors exchange old ones for new cards at half the price.

Interestingly, since both sports and non-sports cards are intrinsic and personal, they can also be used as promotional equipment. You can collaborate with firms to pass on their brand value and earn commission as well. Trade shows and collector events may also be exciting ideas to explore.

This might be another reason why cards have such a strong possibility to shine, especially in the modern market. Their versatility can be a very unique selling point for you to nurture in your business context.

Starting Your Card Business

1. Plan, Plan, And Plan

The importance of planning your business cannot be stressed enough. Plan the specifics. Outline every single detail, and work your way through the process step by step. Evaluate the initial launch and setting-up costs, calculate the legal costs in too. Determine one-time investments and running investments. Identify and focus on your target market. Build on their tastes, identify their needs.

Set your pricing strategies. Though the value of cards fluctuates, you can opt for a 30% markup for your retail pricing. A successful card dealer may earn up to $50,000 but this value varies for every entrepreneur.

Choose a trustworthy supplier. However, do not place all your eggs in one basket. Have multiple suppliers. Compare how they vary in their services and pricing and accordingly strategize your supplies.

2. Legalize Your Business

This goes beyond saying, form a legal entity for your business. Select the kind of ownership you want: Propertership, partnership, or any other. You need to register for taxes, file in for all the necessary paperwork. However, this may vary for online and offline businesses. So do your research, no matter which one you choose.

3. Jumpstart Your Business Accounting

This may come off as a surprise, but if you are planning to operate alone, learn bookkeeping. If not, hire a bookkeeper. Know your numbers, analyze the numbers, this will give a clear idea of resource allocation and protect your finances.

Record expenses and income flows. In addition, maintain accurate and thorough records and accounts. This not only simplifies your understanding of financial performance but further helps in legal matters.

Not to forget, pen a business account, get a credit card, and insurance. Business accounts segregate your financial belongings and thus they are easier to handle. Oftentimes, businesses enjoy benefits from credit cards and banks that personal accounts don't. And of course, insurance has you covered for any mishaps.

Depending on your business structure, obtain all the necessary licenses and permits. Hence, your business runs smoothly.

4. Create Your Brand

Branding is as essential as your establishment’s existence. Hence, creating a brand is one of your top priorities. Pick a name, design logos, and any other brand element that you think is suitable. Unlike other businesses, your target customers here will have a very pretty good idea of what they want. Thus, create a brand that resonates with their vision. Set up a website and a very strong online presence. Online card businesses allow direct exchanges between buyers and sellers. Hence, cultivate your brand’s worth in multiple forums and online communities. Increase visibility and reliability.

Moreover, generate a brand value that delivers. Don't trap customers in false promises, it never goes well. Network and promote your brand at every feasible chance and focus your branding on uniqueness. What sets you apart. Also, patent your brand, we don't want to waste all the effort.

Foster trust amongst your peers and your customers. Support them immensely. Build a home for your brand. A place that nurtures all its stakeholders. Find common interests and design your market offerings accordingly.

5. Measure and Redesign

The last one goes without saying. There is no final call or final strategy for businesses. Revamp. Measure. Set specific objectives and measure how far you have achieved them. Address persisting issues. Identify flaws that slow your growth and redesign to adjust the needs of your customers. Nothing comes here easy, and the only way to keep going is through constant evolution.

Lastly, never stop learning. Enjoy the process as much as you can. Fend your hunger for knowledge and that will be your competitive advantage. Connect with experienced owners, seek their advice, but don't lose your vision. That will alone take you to new heights.

Handy Skills

While no specific skills are required to start card businesses, your focus should be on the details. May it be the prices or the value of the cards, you should have a keen eye to identify worthwhile deals. Having a sound knowledge of sports and games is a big bonus, however, nothing compensates the zeal and passion for these collectibles. Your drive will bring you customers and deals that no business expert can.

Furthermore, the experience of collecting cards, and memorabilia come in handy when you are dealing with a client. If you know your game, chances are, you will figure out theirs too and thus decide the persuasion technique you want to use. Also, update yourself about relevant and competitive trading communities.

Having excellent communication and people skills always help close a deal. Your job requires you to discuss and interact with the knowledge you have regularly. After all, nothing beats the essence of a specialized and unique customer relationship, especially for building brand reputation. Your ability to immerse in the crowd may also bring you the best suppliers when in need.

Words Of Caution

Well, businesses are borne on the risk attributes, and card businesses are no exception. It might be expensive to establish, and profits are not always consistent or easily driven. Especially, if you are just starting out, there may be setbacks, unpredictability, and mostly, below margin returns. Nonetheless, such risks can be mitigated with proper planning and strategies as discussed earlier.

For starters, decide whether you want an online or offline presence. In the case of the latter, check out the physical competition in your area. Mind you, brick-and-mortar presence is more expensive to manage, so choose wisely. On the contrary, in a densely populated neighborhood with passionate sports and game fans, you might be looking at an awesome opportunity.

Secondly, select your products carefully. You do not need bulk supplies when you are taking the first step in the journey. Begin small, expand consistently. Build a unique collection, something that attracts mass attention but is rarely available. In such instances, with one card only, you will have a stronger grip on the competition and a strong reputation.

Another quick tip, do not overstock on any items. The competition is tough. Offer what big firms do not have, reach out to your customers. As long as they are good, you are good too. And if you are looking to build a team, hunt people down with the same energy. They will back you up no matter what.

Final Thoughts

As you might have understood from the above discussion, card businesses require hard work and passion. But you also need the proper resources and a reliable source to collect data regularly. Your research and pricing information is the key to success. One excellent platform that is equipped with the top charts and information hub is CardPrice. From collecting, managing, and investing in cards, they can provide resilient support to establish your business. Started by two passionate sports-freak themselves, you can reach out to them at any time, for any issue. Believe in your dream, and take that first step today.