Starting an Auction Business in Illinois

Auctioneers provide a facility to sell goods at scheduled times, charging a percentage of the sale price as commission fees to buyers and sellers. According to the Illinois Auction Guide, there are more than 50 auction companies trading in Illinois as of November 2010. Targeting an underserved market in Illinois will be crucial to your success in starting an auction business.

• 1

  Complete a feasibility study and develop a business plan to determine if your desired location in Illinois can sustain your auction business. The Illinois State Auctioneers Association (see Resources) can provide information to help you formulate your business plan.

• 2

  Seek advice from the U.S. Small Business Administration's regional offices in Chicago or Springfield, Illinois. This federal agency provides free business start-up advice and assistance including evaluating the competition, formulating a business plan, obtaining state and local business licenses, understanding taxation and identifying grants and loan options.

• 3

  Obtain an auctioneer license from the state of Illinois. According to the Illinois Department of Financial and Professional Regulation, auctioneers and associate auctioneers must have a license to arrange, manage, advertise or conduct auctions. Auctioneers must pass an exam to earn their license, which is valid for two years.

• 4

  Find a currently underserved niche market of items in Illinois and focus on selling those products. Study your market and become an expert in your auction category. Potential markets include art, furnishings, antiques, jewelry or motor vehicles.

• 5

  Establish a location for your auction business. An ideal site will be conveniently located, provide secure storage space and offer ample free parking.

• 6

  Craft a marketing strategy aimed at buyers and sellers in your market and explore online options for promoting upcoming sales and taking bids.

• 7

  Acquire inventory for your first sale through estate sales and advertisements in local newspapers and community newsletters.