Local auction gallery with weekly sales

Consignors pay a commission when their items sell. Buyers usually pay a buyer's premium on the hammer price.

Seller commission plus buyer's premium on each lot, with extra fees for photography, cataloging or handling. Revenue grows as sales become more frequent and the buyer list gets bigger.

• Auctioneering or willingness to hire one
• Cataloging and pricing a wide range of goods
• Running a team on sale days
• Marketing to local buyers and sellers

• State auctioneer and auction company licenses and bonding, which differ, so check your state's licensing board
• Commercial lease terms, zoning and certificate of occupancy for public events, so check with your city or county
• General liability and property insurance, plus workers' compensation once you hire
• Sales tax registration and rules on collecting from buyers, which vary by state
• A slow first few months while you build a buyer list and reputation, so keep cash for rent
• Items that could be stolen or contested, so keep clear records of who owns what

Startup costs are typically around $12,000 to $60,000, depending on your rent and deposit, the size of the unit, display and bidding setup, and insurance. Your own figure will vary with your location and how much you fit out.

Monthly revenue is typically around $4,000 to $20,000, depending on how many consignments you attract, sale frequency and your commission. The first few months can be slow while you build a buyer list, so keep cash for rent.

Check your state's auctioneer and auction company licensing and bonding, plus commercial lease terms, zoning and certificate of occupancy for public events with your city or county. Also check liability and property insurance, workers' compensation once you hire, and sales tax rules.