How to Invest in the Sports Memorabilia Business

 Many people follow sports, and many fans enjoy connecting with their favorite teams and fans through memorabilia. Sports memorabilia provides a tangible connection to the past and present, whether a card, a used in-game item, or other ephemera. Sports memorabilia companies deal in the buying and selling of sports collectibles.

The sports memorabilia enterprise has encountered massive growth over the past 30 years. Today, more than 200 million collectors worldwide, and a third of them have owned or currently own at least one piece of sports memorabilia. Selling these memorabilia has become a multi-billion dollar industry.

Learn how to start your own sports memorabilia business and whether it's the right fit for you.


Start a sports memorabilia business by following these steps:


You've found a business idea you are passionate about and are ready to take the plunge. You were starting a business interest more than just recording it with the form. We have put together this simple guide to starting your sports memorabilia business. These efforts will ensure that your new industry is well-planned, appropriately written, and appreciative of the law.


STEP 1: Plan your business

Creating a plan is essential to be successful and running your own business. It helps you focus on the details of what needs to be done and will uncover any unknowns. Some important issues to consider are:

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

Fortunately, we've accomplished a lot of this investigation for you.


What are the costs involved in opening a sports memorabilia business?


The startup costs associated with extending a sports memorabilia company are effortless. Business owners should be prepared to spend between $2,000 and $10,000.

If a business opens a physical store, some initial funds will go toward leasing and building space. Otherwise, most of the money is invested in souvenirs to sell. There are several places to find items:

  • wholesalers
  • auctions
  • Real estate selling
  • classified

Real estate sales sometimes offer good deals for business owners with limited funds.

Any items signed or used in-game must be authentic regardless of what business owners purchase. Selling a single non-genuine item can tarnish a company's reputation, possibly even permanently devastating a fledgling company.


What are the ongoing expenses of a sports memorabilia business?




The running costs of a sports memorabilia business are manageable. They include the cost of acquiring new items and any lease payments or listing fees.

Who is the target market?


The target market for a sports memorabilia business consists primarily of sports fans with discretionary income. Sometimes companies also sell to investors looking for alternative investments.

How does a sports memorabilia company make money?


A sports memorabilia company makes money by buying memorabilia and selling it at a higher price. Unlike an investor who expects items to appreciate over time, this type of business works like a dealer and generates income through buying and selling.

How much can you charge customers?


The value of sports memorabilia varies significantly. Many items can sell for a few dollars, but rare pieces can fetch four, five, and six-figure sums. For example, a few years ago, a famous pair of Michael Jordan shoes sold for $104,765 at auction. The jersey for his last regular season game with the Chicago Bulls cost $173,000.

How much profit can a sports memorabilia business generate?


With such variation in item values, the amount sporting goods companies earn also varies significantly. Some businesses generate a modest living, while others are highly profitable businesses.

How can you make your business more profitable?


A sports memorabilia business can increase revenue by selling items in addition to actual memorabilia. Display cases and new sportswear are two natural products to add to a company's inventory.
Business owners who become experts in their field can also become authenticators, leading to additional income to verify signatures.


How will you name your business?


Choosing the right name is important and challenging. If you still need a name, visit our Try its free guide.

STEP 2: Form a legal entity


Types of What is an EIN? Or examine your current EIN operating our EIN lookup guide.



Small Business Taxes


Depending on your business structure, you may have different options for how your business will be taxed. For illustration, some LLCs could profit from existing taxed as an S company (S corp).

You can learn more about remote company taxes in these guides:


  • LLC Taxes
  • Sole Proprietor vs. LLC
  • LLC vs. Corporation
  • LLC vs. S Corp
  • How to Start an S Corp

There are clear state taxations that may apply to your company. Our state sales tax guides can help you learn more about state sales and franchise taxes.


STEP 3: Open an enterprise bank account and credit card


The use of bank and credit reports dedicated to businesses is important for the security of private assets.

When your private and company accounts are mixed up, your assets—your house, automobile, and other valuables—are at risk if your business is sued. In corporation law, this is known as hitting your corporate veil.


Also, learn the SBA's authority to state licenses and permits. In addition, certain local licensing or regulatory conditions may apply.


For more information on local licenses and permits:


  • Check with your village, metropolis, or county clerk's headquarters
  • Get help from one of the regional organizations listed in the US Small Business Association Directory.

certificate of occupancy


A Sports Memorabilia business is usually run out of a small shop. Companies that operate from a physical location generally require a Certificate of Occupancy (CO). A CO ensures that all construction codes, zoning laws, and state rules have been observed.


  • If you plan to lease a location :

    • It is normally the owner's commitment to getting a CO.
    • Before leasing, confirm that your landlord has or can obtain a valid CO that applies to a Sports Memorabilia business.
    • After a renovation, you need to issue a new Certificate of Occupancy often. Suppose your workplace will be renovated before opening. In that case, it is recommended that you include language in your lease stating that lease payments will not begin until a valid CO is issued.

  • If you plan to buy or build a location :


    • You will be responsible for obtaining a good CO from a local government authority.
    • Review all building codes and zoning requirements for your business location to ensure your business meets the needs and can obtain a CO.

STEP 4: Get Business Insurance


It needs permits and licenses to ensure your business is legal and operating safely. You should also invest in insurance to keep you covered in the case of events out of your control. Advanced search and current listings on other sites may also be helpful.


What is the growth potential of a sports memorabilia business?


A sporting goods company can be a small home-based business or store or grow into a major national business. Fanatics Authentic is a great website that sells items related to many sports. Many small businesses sell through this.


Location: United States

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