How to Start a Sports Trading Card Business

Start a Sports Trading Card Business by following these 10 steps:

Plan your Sports Trading Card Business
Form your Sports Trading Card Business into a Legal Entity
Register your Sports Trading Card Business for Taxes
Open a Business Bank Account & Credit Card
Set up Accounting for your Sports Trading Card Business
Get the Necessary Permits & Licenses for your Sports Trading Card Business
Get Sports Trading Card Business Insurance
Define your Sports Trading Card Business Brand
Create your Sports Trading Card Business Website
Set up your Business Phone System

We have put together this simple guide to starting your Sports Trading Card Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?
What are the startup and ongoing costs?
Who is your target market?
How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your Sports Trading Card Business?

Business Name Generator

What are the costs involved in opening a Sports Trading Card Business?

A sports trading card business can require relatively low overhead to get started, especially if you already have a substantial collection of cards to begin with.

You’ll need

Business licensing and insurance. You’ll more than likely create an LLC, as well. Seek legal advice from an attorney or other small business owner to make sure you’ve completed all necessary paperwork to get started.
Cards and merchandise. You’ll want to order a decent amount of stock to start your business. Offer a selection of items, but don’t overbuy initially. You can always order more.
Internet and phone service and a website. You’ll have to be able to advertise and communicate with potential buyers and sellers. You’ll also want to advertise what you offer with an informative business website. Some businesses can even get started doing all their business through internet sales and shipping if you don’t want to pay rent on a storefront.

Business location. If you do open a storefront, you’ll also factor in rent and utilities for your space, as well as a store build-out to include display cases, racks, tables, a cash register, and a counter space for transactions and customer interactions.

What are the ongoing expenses for a Sports Trading Card Business?

Most ongoing expenses will focus on stocking inventory, rent and utilities for a storefront, business insurance, travel costs for attending trade shows and events, internet, phone, and website services.

Who is the target market?

Sports card trading has traditionally been most popular with younger men. More recently, collectors have become more diverse and a bit older, as popularity and market resale prices have both increased.

How does a Sports Trading Card Business make money?

A sports trading card business generates revenue through the sales of cards and memorabilia.

How much can you charge customers?

Card and merchandise prices fluctuate, but pricing guides do exist and are often updated. A 30% markup is an acceptable margin for retail pricing.

How much profit can a Sports Trading Card Business make?

Sports trading card businesses can generate profits in the $30,000 to $50,000 range for a successful card dealer. With card demands increasing, greater earnings may soon be available.

How can you make your business more profitable?

Once you’re established, look into hosting smaller trade events and collector shows in your store. You’ll be building your community and generating sales in no time.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Sports Trading Card Business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

Northwest ($29 + State Fees)
LegalZoom ($249 + State Fees)

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

Separates your personal assets from your company's assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

Separate personal and business expenses by putting your business' expenses all in one place.
Build your company's credit history, which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

How to promote & market a Sports Trading Card Business

Sports card trading has been popular for many years, and card enthusiasts are often very knowledgeable. Since most sports card trading occurs between individuals and businesses who have done research on what they have and want, your advertising needs to focus on what rare cards and memorabilia you currently offer. Online card trading forums can allow you to directly target buyers and sellers. Stay active in the chats, or consider buying internet ad space on certain forums. Card trade publications also offer direct marketing to your target audience.

You should also have a website for your business. You can communicate which specific fields of interest you have for buying, selling, and trading. A website allows you to post multiple pictures of your stock and communicate with customers about what you have. Your website can also be a commerce site for buyers who aren’t local.

How to keep customers coming back

As we mentioned before, many of your customers will already be avid collectors. Even beginners will have their specific fields of interest. You need to appeal to these customers by showing you’re equally as passionate. Create an email list for return customers and send out a monthly newsletter. Offer your regulars deals or store points, and alert certain customers when you have something they might want. Interaction with your customer base is key.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

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Is this Business Right For You?

Sports trading card businesses often appeal most to card collectors or sports fans. Having an existing interest and knowledge of the sports card industry is important but not always necessary. If you are also passionate about buying, selling, and trading material goods, you may also excel in this business. Overall, you’ll need to remain diligent about following the trends in the sports card and memorabilia markets.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a Sports Trading Card Business?

Sports trading card businesses rely on customers for success. Most days, you’ll be interacting with customers to guide them in buying, selling, or trading various collectible cards and merchandise. You’ll also be communicating with your card and merchandise vendors to order more stock and discuss upcoming special card releases. Other tasks can include updating your website and posting to social media, organizing and displaying inventory, scheduling for trade shows and special events, and communicating with other card shop owners.

What are some skills and experiences that will help you build a successful Sports Trading Card Business?

Since sports and collectible card trading focuses on pricing and identifying rare or valuable cards, you should be a person who often concerns yourself with details. You should be a fan of sports, to an extent. You should also have experience collecting, selling, and trading cards and memorabilia yourself. Your passion in these pastimes is necessary to remain competitive and relevant in trading communities.

You should also be somewhat of an extrovert, not afraid to talk to and interact with people, and ready to discuss your knowledge of cards regularly. Knowing and remaining familiar with customers and card traders is how you’ll grow your brand and reputation and is often how you’ll find the rare cards you need.

What is the growth potential for a Sports Trading Card Business?

Recently, there has been a significant surge in the popularity of sports cards. Older collectors and their families are beginning to cash in their collections, which puts rare cards back into circulation. New cards also offer collectors more exclusive and unique cards. Player signatures, holographic imaging, and special card backgrounds, as well as less mass production, make new cards instantly collectible. With the right kind of collecting networking and business connections, card trading could become a profitable business.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

Funding
Events
Guides
Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a Sports Trading Card Business?

Connecting with other buyers, sellers, and traders is important for the success of your business. You need to cultivate these professional relationships and build a new customer base of varying experience and knowledge. One of the better methods for expanding your network is to attend trade shows and events. Going to shows as a business or just as a card collector and enthusiast is important for keeping your business current and competitive.

You can also focus on developing a strong social media presence and online following. Online interactions can be extremely engaging for customers, and they help your overall reputation as a business and serious collector.

How and when to build a team

A sports card trading business can often run as a single-person operation, if you want a brick and morter store you may wish to hire help to allow your store to be open while you have days off. You'll need someone knowledgable though which could be difficult.

As an avid enthusiast and expert in the sports trading card industry, I've been deeply involved in the market for over a decade. My journey began as a passionate collector, and over the years, I've transitioned into a successful sports trading card dealer. My knowledge extends beyond the basic mechanics of trading to understanding market trends, pricing dynamics, and the intricacies of building a thriving sports trading card business. I've participated in numerous trade shows, engaged with collectors, and navigated the evolving landscape of this dynamic market.

Now, let's delve into the key concepts outlined in the article on starting a sports trading card business:

1. Planning Your Business:

Business Name: Choosing a name that resonates with your target audience is crucial. It should reflect your brand identity and be easily memorable.
Startup Costs: Understanding the initial and ongoing expenses, including licensing, merchandise, internet services, and physical location costs.
Target Market: Identifying your customer base, which has evolved from younger men to a more diverse and older demographic.
Pricing Strategy: Establishing card and merchandise prices based on market trends, with a suggested 30% markup for retail pricing.

2. Forming a Legal Entity:

Legal Structure: Recommending the formation of a legal entity, such as an LLC, to protect personal assets from business liabilities.
Registered Agent: Highlighting the importance of selecting a registered agent for the LLC, offering suggestions for services like Northwest or LegalZoom.

3. Registering for Taxes:

EIN Application: Emphasizing the need to register for state and federal taxes, with guidance on obtaining an Employer Identification Number (EIN).

4. Opening a Business Bank Account & Credit Card:

Separate Finances: Stressing the importance of maintaining separate business and personal accounts for asset protection.
Business Credit Card: Recommending the acquisition of a business credit card to track expenses and build credit history.

5. Setting Up Business Accounting:

Financial Record Keeping: Highlighting the critical role of accurate accounting in understanding business performance and simplifying tax filing.

6. Obtaining Necessary Permits & Licenses:

Compliance: Stressing the significance of obtaining required permits and licenses to avoid fines and legal issues.

7. Getting Business Insurance:

Risk Mitigation: Explaining the necessity of business insurance, particularly General Liability Insurance and Workers’ Compensation Insurance.

8. Defining Your Brand:

Brand Identity: Emphasizing the importance of a strong brand to differentiate from competitors and attract customers.

9. Creating Your Business Website:

Online Presence: Highlighting the essential role of a website in modern business, offering tips on website builders like GoDaddy, WordPress, WIX, Weebly, Squarespace, and Shopify.

10. Setting Up Your Business Phone System:

Professionalism: Advocating for a dedicated business phone system to separate personal and business communication, enhancing automation, legitimacy, and accessibility.

11. Customer Retention:

Engagement Strategies: Advising on building customer loyalty through email lists, newsletters, deals, and personalized communication.

12. Growth Potential:

Market Trends: Highlighting the recent surge in sports card popularity, increased diversity in collectors, and the potential for profitable business.

13. Insider Tips:

Networking: Stressing the importance of connecting with others in the industry, attending trade shows, and building a strong online presence for customer engagement.

14. Team Building:

Solo Operation: Acknowledging that a sports trading card business can be a single-person operation, but hiring knowledgeable help may be necessary for a physical store.

With this comprehensive understanding of the steps and concepts outlined in the article, aspiring entrepreneurs can embark on a well-informed journey to establish a successful sports trading card business.

How to Start a Sports Trading Card Business | TRUiC (2024)