The business of art: the art business, in many ways, is unlike any other. Yet, in many other ways, it is like any other business. This month, five gallery owners discuss what it takes to operate a successful gallery business

Art Business News, Feb, 2005 by Joe Jancsurak

Editor's note: This is the second of a two-part series, in which five gallery owners from New York, North Carolina, Florida, Missouri and California, share their views on business plans, market research and methods for securing capital. Part 1 of the roundtable appeared in the January issue, and provided an opportunity for the participants to share what they consider to be important factors before entering the art gallery business, including reasons why for entering the art market; important character traits to have; the best legal structure for an art gallery; and the pros and cons of the business. Roundtable participants are Betty Cuningham, Betty Cuningham Gallery, New York (Chelsea); Jonathan Kodner, Kodner Gallery, St. Louis; Richard Roberts, R. Roberts Gallery, Jacksonville, FL; Melanie Smith, Seaside Art Gallery, Nags Head, NC; and Mike Woolsey, Marina Fine Arts, Marina del Rey, CA.

Would you recommend that the new business owner conduct thorough market research of potential customers, the art trade or industry, their competition, the licensing and tax requirements, location, and name? How have these different marketing factors affected your business?

Richard Roberts: No, Yes, Yes, Yes, Yes, and Yes. Your customer base is constantly changing. Having a good product will allow you to attract customers from throughout your area, while the Internet will provide you with additional, although incremental, exposure. A strong business sense will help you with items 2, 3, and 4. Location is essential. We are in a historic district with a small set of diverse shops and restaurants. The district provides us with a strong customer base while attracting people from the rest of Jacksonville. We, like others, have chosen to put the owner's name in front of the public. If there is a problem, people know where to go. Basically, you put your reputation and customer service on the front doorstep.

Melanie Smith: Market research is helpful. First, you should plan what type of gallery you want to open. You will need to decide what type of art you want to feature and what services you want to provide. This will help to define the personality of your gallery and the market you will be appealing to. With this information, you can then decide on location, advantages of renting or buying and government regulations.

Jonathan Kodner: Market research is a must for all aspects of your business strategy. The more questions you ask, the more you see results and the more you know. All of these elements as a whole can make or break your business. For example, you can have the most desirable artwork in the world, but if you don't know who your potential client base is, you have no market for the work and cannot sell it. You have to be prepared.

Mike Woolsey: A good location is important. Ours provides good customer traffic and demographics--affluent and young (20- to 40-years-old). We're located away from other galleries. I would not want to be open in a neighborhood with five other galleries, unless they weren't meeting a specific need in terms of pricing or types of works.

Betty Cuningham: I did not do that sort of research. I think you join a gallery and learn how your employer markets work and then you choose to follow or not to follow when you open your own gallery. Per the legal licensing and tax requirements, be sure you have a good business manager and a good art lawyer to advise you as the laws change.

How did you choose your location? What advice regarding location would you offer to those looking to open a new art gallery?

Kodner: We chose our location based on proximity and accessibility to our main client base. If your space is inconvenient to your clients, they are less likely to stop in on a regular basis. However, if you have the public relations and advertising budget to make it work, you can support a less desirable location.

Roberts: We bought an existing business that's not only in a well-known and heavily trafficked shopping area, but it's also convenient to my residence. While location is very important, one needs to assess the suitability of the building for use as an art gallery. Conversion or modernization costs are very expensive. In this regard, one should attempt to get an option to purchase the building in an effort to provide cost stability for the future. An option for a long-term lease is a good alternative.

Smith: We are still in our original location and at the time it was the only retail location available. One of the things about location that is often overlooked is the availability of parking and if the traffic pattern is advantageous to getting in and out of your location.

Cuningham: I am an exception. I only looked at one space both times when I opened my two galleries. I walked less than 20 feet to open at 93 Prince Street in SoHo in 1972 ... and I walked a block to open my current space. However, from my most recent past experiences, I did know both times that I wanted to stay first in SoHo and this time in Chelsea. And, that was determined simply because both times I wanted to be where the artists that I like and show wanted to be.