Starting a Commercial Art Gallery in This Economy

Despite the speculation in some quarters that the current downturn in the global economy and the art market in particular places the forthcoming publication of my book* under the department of "bad timing" (ahem), just this past weekend a young curator I know stopped into the gallery and noted that he's nearly ready to take the plunge and open his own space. I didn't fail to recommend some reading material he might consider.

Believe it or not, should the art market truly spring back to life in 2-3 years (yes, we're all praying for it to be sooner), now could actually be the perfect time to launch a new gallery, assuming you have the working capital to last that long. The reason now might be right is that in the emerging art market in particular (i.e., in galleries representing artists with no established market) it can take 3-5 years for a new gallery to turn truly profitable, even during a boom.

The reason for that time frame is related to the impact of the all-important second or third solo exhibitions. Even if an artist's first exhibition is relatively successful (some sales, some positive press), it can still take years for two important things to happen: 1) for those collectors who were not quite convinced at that first show to see subsequent work that confirms for them that the artist wasn't a one-hit wonder (and thus to begin to acquire it themselves) and 2) news of the artist to spread to a large enough number of collectors to build a healthy market. This will not generally happen as the result of only one exhibition unless that first show was a raging success, which few galleries see more than a handful of in their initial years. The second or third solo shows (spaced usually in the 3rd to 5th year of the gallery for any given artist) will generally accomplish the first of those items, which, again, is why it can take that long for a new gallery to have strong enough markets for enough of their artists to turn truly profitable.

Doubt it? Think of the best-selling emerging artist you can [go on, we'll all think of the same two or three anyway], now go back and research when they had their first solo exhibition and when they became an art world household name. It's invariably 3-5 years after their first solo show, making it anything but overnight success for any of them.

So what new dealers do until those second or third solo shows come around is spend those early years getting the second item accomplished: that is, spreading news of the brilliance of their artists. Because this is somewhat independent of sales (although sales do help greatly, especially when collectors talk about the work they've acquired), though, it's as easily done, if not more so, during a downturn. I say "if not more so" because during a downturn there are fewer galleries around, and so less competition for the press that helps accomplish item two.

Ergo...starting a gallery now could mean that by the time the art world catches up to how brilliant all your artists are, the market will be springing back to life and you'll be perfectly situated to take full advantage of that. If you wait until the market springs back to life to open, you'll need to find some shortcut through the usual 3-5 year wilderness to turn truly profitable sooner. There are ways to do that, but it's not very easy with a fully emerging program, and besides, by then, you'll have a whole new field of competition snapping up the press you'll need.

*I just got advance copies of my book in the mail!!! It's got a spine, and an index, and a cover, and it's full of all these words! It's available as of July 14, 2009.

Oh, and because a while back I promised truly shameless hawking of the book, I'll share the lovely back-cover quotes. I know of a few others that had been generously offered (guess they ran out of space), but I'm not that greedy...I'm beyond delighted to see these:

Praise for How to Start and Run a Commercial Art Gallery

"Ed runs one of the most straightforward sites dedicated to demystifying and discussing various aspects of the art world. Now, in How to Start and Run a Commercial Art Gallery, he's packed–in understandable terms–information I wish I had known before starting my gallery."–Zach Feuer, owner, Zach Feuer Gallery and cofounder of New Art Dealers Alliance

“Ed Winkleman has two qualities that are rare: he is quite knowledgeable about the business of operating a contemporary art gallery, and he is willing to share that knowledge with the rest of the world, through his blog and now in this book. He has one more unique quality: his writing is a pleasure to read.”–Daniel Grant, author of The Business of Being an Artist

Ed Winkleman's book is a comprehensive reference for any gallery owner.
Whether you are new to the business or seasoned gallerist, it is always wise
to remember the essentials.–Leigh Conner, Conner Contemporary Art