Do you want to start a coin dealer business and need to write a plan? If YES, here is a sample coin dealer business plan template & FREE feasibility report.
The market for antiques and collectibles, such as coins, jewelry, books, figurines and memorabilia et al has continued to be relevant in the world. This is as long as we still have people who appreciate antiques and collectibles.
The coin dealer business is one the businesses that can’t go out of fashion because people would always appreciate antiques. Depending on the scale you want to start, the startup capital for this type of business can range from small to moderate. Below is a sample coin dealer business plan template that will help you write yours within record time.
A Sample Coin Dealer Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Coin dealership business is the collection of coins or other forms of minted legal tender. Coins of interest to collectors often include those that circulated for only a brief time, coins with mint errors and especially beautiful or historically significant pieces. Coin collecting can be differentiated from numismatics, in that the latter is the systematic study of currency.
A coin’s grade is a main determinant of its value. For a tiered fee, a third party certification service like PCGS or NGC will grade, authenticate, attribute, and encapsulate most U.S. and foreign coins. Over 80 million coins have been certified by the four largest services.
Coin dealers purchase coins for investment purposes. As with stamps, precious metals or other commodities, coin prices are periodical based on supply and demand. Prices drop for coins that are not in long-term demand, and increase along with a coin’s perceived or intrinsic value. Investors buy with the expectation that the value of their purchase will increase over the long term.
As with all types of investment, the principle of caveat emptor applies and study is recommended before buying. Likewise, as with most collectibles, coin collection does not produce income until it is sold, and may even incur costs (for example, the cost of safe deposit box storage) in the interim.
Coin dealers are also into hoarding of coins in the sense that they accumulate coins for potential long-term profit. However, unlike coin investors, they typically do not take into account aesthetic considerations; rather they gather whatever quantity of coins they can and hold them.
This is most common with coins whose metal value exceeds their spending value. Some coin dealers are known as commercial buyers, they generally purchase coins in bulk and often act with the expectation of short-term profit.
Coin dealer’s business is a subset of the antiques and collectibles industry and businesses in this industry basically retails or auctions antiques and collectibles, such as coins, jewelry, books, figurines and memorabilia.
Online sales and auctions of original art pieces are not included in this industry, but auction houses that bring buyers and sellers together and collect a commission are part of this industry.
The Antiques and Collectibles Sales industry is a thriving sector of the economy of the united states and the industry generates over billion annually from more than 1,626 antiques and collectibles stores (coin dealers inclusive). The industry is responsible for the employment of over 3,801 people.
Experts project the industry to grow at a 3.5 percent annual rate. Heritage Auctions Inc. and eBay are the market leaders in this industry.
In a nutshell, coin dealership business is a profitable business and it is open for any aspiring entrepreneur to come in and establish his or her business. As a matter of fact, with the right location and network, you will just be fine with this business.
2. Executive Summary
Dexter Brown® Coin Dealership, Inc. is a registered antiques and collectibles company that will major in coin collection. The company will operate from Bowling Green – Kentucky.
We have been able to lease a facility along a major road that is big enough to fit into the kind of coin dealership business we intend launching and the facility is located in a corner piece in the midst of a commercial center in Bowling Green – Kentucky.
Dexter Brown® Coin Dealership, Inc. will be involved in the collection and auctioning of coins and other forms of minted legal tender. We will also partner with leading antique collectors in and around the United States of America.
We are aware that there are several antique and collectible stores that also deal in coins all around Bowling Green – Kentucky and online, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.
Much more than collecting, retailing and auctioning off coins and other forms of minted legal tender, our customer care will be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our store.
Dexter Brown® Coin Dealership, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved when making some business decisions that directly affects them.
We are aware of the trend in the antiques and collectibles industry and we are not only going to operate a system where our customers would have to come to our store to make purchase, but we will also operate an online coin dealer business and our customers can order our products online and they will get it delivered to their location.
Dexter Brown® Coin Dealership, Inc. is owned by Dexter Brown. Mr. Brown is an antique enthusiast per excellence, he has a BA. in Sociology and Anthropology, with over 15 years’ experience in the antiques and collectibles industry.
3. Our Products and Services
Dexter Brown® Coin Dealership, Inc. is in the antiques and collectibles industry to make profits and we will ensure we make available a wide range of coins and other forms of minted legal tender from different sources and countries. Our product and service offerings are listed below;
- Purchase coins and other forms of minted legal tender for investment purposes
- Coins and other forms of minted legal tender retailing and auctioning
- Listing coins and other forms of minted legal tender online for third parties
4. Our Mission and Vision Statement
- Our vision is to become the leading coin and minted legal tender dealership company in Kentucky.
- Our mission is to establish a standard and government approved coin and other forms of minted legal tender dealership business that will make available a wide range of coins and other forms of minted legal tender for the purpose of retailing and auctioning at affordable prices.
Our Business Structure
Our intention going into the coin dealership business is to build a standard business in Bowling Green – Kentucky. Although our coin dealership business might not be as big as multibillion-dollar institutions, such as Heritage Auctions Inc. and eBay, but we will ensure that we put the right structures in place that will support the kind of growth that we have in mind.
We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Coin Collectors/Merchandize Manager
- Sales and Marketing Officer
- Information Technologist
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the coin store
- Ensures that proper records of coins and other forms of minted legal tender are kept and our safe box does not run out of products
- Ensure that the facility is in tip top shape and coins are properly arranged and easy to locate
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Supervise the workforce
Coin Collectors/Merchandize Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of coins and other forms of minted legal tender for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Source for avenues for us to auction our coins and other forms of minted legal tender and generate sales
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Manage the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manage the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
- Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- Make suggestions and encourage purchase of products
6. SWOT Analysis
Our intention of starting just one outlet of our coin dealership store in Bowling Green – Kentucky is to test run the business for a period of 4 to 5 years to know if we will invest more money, expand the business and then open other outlets in key regions within the United States of America.
We are quite aware that there are several coin dealerships stores that also collect, retail and auction coins and other forms of minted legal tender in Bowling Green, Kentucky which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Dexter Brown® Coin Dealership, Inc. employed the services of an expert HR and Business Analyst with bias in new businesses to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Dexter Brown® Coin Dealership, Inc.;
Our location, the business model we will be operating on, varieties of payment options, wide range of coins and other forms of minted legal tender from different countries and from ancient time and our excellent customer service culture will definitely count as a strong strength for us.
A major weakness that may count against us is the fact that we are a new coin dealership business and we don’t have the financial capacity to compete with multi – million dollar antique and collectibles stores that are involved in the collection and auctioning coins and other forms of minted legal tender who are already determining the market direction for the industry in the United States.
Factors such as improved household expenditure from wealthy consumers will lead to renewed demand. The fact that coin dealers reduced minimum price guarantees, inventory and advertising to remain stable will encourage spending on antiques and collectibles.
The fact that we are going to be operating our coin dealership business in one of the busiest commercial districts in Bowling Green – Kentucky provides us with unlimited opportunities to sell our coins to a large number of people.
We have been able to conduct thorough feasibility studies and market survey and we know what our clients will be looking for when they visit our coin dealership store; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new coin dealership business that is also into the collection, retailing and auctioning of coins and other forms of minted legal tender in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you keep tab with happenings in the antiques and collectibles stores industry, you will notice that they are now looking towards increasing consumer income and access to broadband internet is boosting industry sales. Operators have had to invest heavily in advertising and compete on price to stand out.
As a matter of fact, the antiques and collectibles stores industry have continued to reposition themselves as social institutions, widening their appeal to new audiences and helping them secure government grants. Successful coin dealers and antiques and collectibles store operators have made use of existing and emerging digital media to offer online virtual museums.
In this era when the online community is growing rapidly, you would do your business a whole lot of favor if you create your own online presence. One of the easiest ways to get people to see you as an expert in your line of business is to blog constantly about coins and antiques and collectibles. You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter, and others to publicize your antiques and collectibles.
8. Our Target Market
We have positioned our coin dealership business to service the residents of Bowling Green – Kentucky and the entire United States via our online coin dealership shop. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to retail a wide range of coins and other forms of minted legal tender to the following groups of people;
- Business People
- Pawn shops (buying antiques and collectibles from them)
Our Competitive Advantage
Looking at our business model, we can say that our pricing policy is appropriate, we have a diverse range of customers and of course, our ability to quickly adopt new technology is part of our competitive advantage.
We are not ignoring the fact that Dexter Brown® Coin Dealership, Inc. is launching a standard coin dealership store that will indeed become the preferred choice in and around Bowling Green – Kentucky. Our coin dealership store is located in a corner piece property on a busy road directly opposite one of the largest commercial hubs and art village in Bowling Green – Kentucky.
One thing is certain, we will ensure that we have a wide range of coins and other forms of minted legal tender from different countries and different eras available in our store at all times. It will be difficult for customers to visit our store and not make a purchase. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Dexter Brown® Coin Dealership, Inc. is in business to collect, retail and auction a wide range of coins and other forms of minted legal tender to residents of Bowling Green – Kentucky and other cities in the United States via our online store.
We are in the antiques and collectible stores industry to maximize profits and we are going to ensure that we achieve or business goals and objectives. Our source of income will be;
- Purchase coins and other forms of minted legal tender for investment purpose
- Coins and other forms of minted legal tender retailing and auctioning
- Listing coins and other forms of minted legal tender online for third parties
10. Sales Forecast
One thing is certain when it comes to coin dealership store, if your store facility is well stocked and centrally positioned, you will always attract customers cum sales. We are well positioned to take on the available market in Bowling Green – Kentucky and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation.
We have been able to examine the antiques and collectible store industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Dexter Brown® Coin Dealership, Inc., it is based on the location of our business and other factors as it relates to coin dealership store start – ups in the United States;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $550,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Dexter Brown® Coin Dealership, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents of Bowling Green – Kentucky.
We hired experts who have good understanding of the antiques and collectibles stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bowling Green – Kentucky.
In summary, Dexter Brown® Coin Dealership, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our coin dealership store by sending introductory letters alongside our brochure to organizations, blacksmiths, museums and key stake holders in and around Bowling Green – Kentucky
- Ensure that we have a wide range of coins and other forms of minted legal tender in our store at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our coin dealership store
- Position our signage/flexi banners at strategic places around Bowling Green
11. Publicity and Advertising Strategy
Despite the fact that our coin dealership store is well located, we will still go ahead to intensify publicity for the business.
Dexter Brown® Coin Dealership, Inc. has a long – term plan of opening collection and retailing outlets in various locations in the United States which is why we will deliberately build our brand to be well accepted in Bowling Green before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Dexter Brown® Coin Dealership, Inc.;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Bowling Green – Kentucky
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise Dexter Brown® Coin Dealership, Inc. business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing, uniqueness and quality are some of the key factors that gives leverage to antiques and collectibles store, it is normal for antiques and collectibles lovers to go to places where they can get coins, antiques and collectibles and related merchandize at cheaper prices.
We know we don’t have the capacity to compete with bigger and well – established coin dealership stores, but we will ensure that the prices of our products are competitive with what is obtainable amongst coin dealership stores within our level.
- Payment Options
The payment policy adopted by Dexter Brown® Coin Dealership, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Dexter Brown® Coin Dealership, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for products purchase without any stress on their part.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard dealership store and here are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Dexter Brown® Coin Dealership, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $45,600.
- The cost for facility remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking with a wide range of coins and other forms of minted legal tender) – $250,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- Miscellaneous – $5,000
We would need an estimate of $350,000 to successfully set up a standard and one stop coin dealership store in Bowling Green – Kentucky.
Generating Funds/Startup Capital for Dexter Brown® Coin Dealership, Inc.
Dexter Brown® Coin Dealership, Inc. is a private business that is solely owned and financed by Dexter Brown. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our most important goals of starting Dexter Brown® Coin Dealership, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our coins and a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Dexter Brown® Coin Dealership, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the coin dealership store: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of products that will be available in our shop: Completed
- Establishing business relationship with buyers and vendors – suppliers of coins and other forms of minted legal tender: In Progress