Executive Summary - The Arts Development Company | A ...



leftbottom[Your Address HereYour Town Here]p. [Telephone]f. [Fax][Email][Web address]1000000[Your Address HereYour Town Here]p. [Telephone]f. [Fax][Email][Web address]leftcenter[Business Plan Title][Business Plan Subtitle]850000[Business Plan Title][Business Plan Subtitle]Table of Contents TOC \o "1-2" \n "2-2" \h \z \u Executive Summary PAGEREF _Toc503875044 \h 2HighlightsObjectivesMission StatementKeys to SuccessDescription of Business PAGEREF _Toc503875049 \h 3Company Ownership/Legal EntityLocationHours of OperationProducts and ServicesSuppliersServiceManufacturingManagementFinancial ManagementMarketing PAGEREF _Toc503875059 \h 10Market AnalysisCompetitionPricingAppendix PAGEREF _Toc503875063 \h 18Start-Up Expenses (delete if not required and if an existing business use our cash flow forecast Excel spreadsheet)Miscellaneous DocumentsCash Flow ForecastExecutive Summary0-127000Write this last so that you can summarise the most important points from your business plan. Provide a concise but positive description of your company, including objectives and accomplishments. For example, if your company is established, consider describing what it set out to do, how it has accomplished goals to date, and what lies ahead. If new, summarize what you intend to do, how and when you intend to do it, and how you think you can overcome major obstacles (such as competition).You can also choose to use the following four subheadings to organize and help present the information for your executive summary.Note: to delete any tip, such as this one, just click the tip text and then press the spacebar.Example: YOUR NAME is a Dorset-based arts practice created to develop unique art based products and services for individuals, businesses and organisations. Through workshops, knowledge exchange, collaboration, partnership building, arts, heritage, education and retailing, customers are able to purchase unique art related products and develop new skills as communities and individuals. YOUR NAME customers are local to Dorset, are tourist, art collectors and small businesses, charities, community groups, and public sector. Customers also include public funding bodies who commission artworks.Now entering its second year of trading YOUR NAME has already built a reputation as a contemporary artist providing ‘creative works’ and ‘quality tuition’ and has worked with multiple galleries and private sector individuals with many collaborations leading to development of YOUR NAME arts practice.Now we wish to expand by obtaining our own retail shop/gallery/studio to develop the business.Highlights0209900 Summarize key business highlights. For example, you might include a chart showing sales, expenses and net profit for several years.Note: to replace the sample chart data with your own, right-click the chart and then click Edit Data. Use the Edit Data button in the toolbar and select Edit in Excel.Example: During 2014-2016 I worked part time on my practice/business while holding down an employed part time job. Now in the first year of trading full time I achieved many milestones including:Turnover of ?28,000Investment of ?3000 in capital equipmentArt exhibitions in 3 well known galleriesDeveloped 3 new sales channels (offline, online and classroom)Found 50 new customersWorked on a public funded project for the local councilObjectives0-93400For example, include a timeline of the goals you hope you to achieve.Example: This business plan covers 2018-2021 and though showing slow growth it will allow YOUR NAME to remain strong. I hope to achieve:New retail/studio/gallery in NAME TOWN by March 2018Expand retail equipment for extending art fairs during the summer June 2018Develop a focused marketing plan to expand retail Sept 2018Triple sales by Dec 2019Mission Statement0-48000If you have a mission statement, include it here. Also include any essential points about your business that are not covered elsewhere in the executive summary.Keys to Success0157600Describe unique or distinguishing factors that will help your business plan succeed.Example: YOUR NAME has some very unique and distinguishing factors that will help this business plan succeed. These include:A team of seasoned business and creative industry professionals with over 25 years of combined experience in art, education community work.A business that has already tested the market and established a reputation as provider of art products and services as defined in this plan.An arts practice that already has established partnerships with public, private and third sector national and regional bodies.A strong determination to succeed and to create outstanding art related products that are of value to individuals and communityDescription of Business0-104000Give a positive, concise, and fact-based description of your business: what it does, and what is going to make it unique, competitive and successful. Describe special features that will make your business attractive to potential customers and identify your company’s primary goals and objectives.Example: ADK is a digital art and design practice providing creative art/design services and consultation services to clients alongside self-created artworks for exhibitions, shows and retail. The business creates multiple digital, video and print products that enhance the clients business; using these products for marketing their business, creating creative environments and developing new products/services. It is unique because it utilizes design theory and art to create these products, and with extensive knowledge in IT systems, software programmes, and marketing our services and products provide many layers of expertise not usually found by other providers. We are attractive to potential customers because we provide very basic art and design services right up to complex modern technology based functions. Coupled with over 15 years in the creative industries and our unique outlook on all things creative means our experience is a smart choice for customers. Our primary goal is to be recognised as an organisation that is known for its creative works, generated by creating new pieces of self-created work for retail, but we also provide art and design services for clients and projects throughout the UK. Our aim to ensure that our art and design products and services are provided to the highest quality. Company Ownership/Legal Entity0-211900Indicate whether your business is a sole trader, corporation (type), or partnership. If appropriate, define the business type (such as manufacturing, merchandizing, or service). If licenses or permits are required, describe the requirements for acquiring them and where you are in the process.If you have not already stated whether this is a new independent business, a takeover, a franchise or an expansion of a former business, include that here.Example: ADK is limited company No. 04488341 - Incorporated on 17 July 2002 and registered at Memorial Hall, Paul Street, Taunton, Somerset, TA1 3PF. There is only one director Andrew Knutt and the company has a company secretary. SIC code 62090.Or: YOUR COMPANY/PRACTICE NAME is a sole trader and has been operating since DATE. Or: YOUR COMPANY/PRACTICE NAME is a Community Interest Company registration number. 9999999. Created in 2016 with 4 directors who are:Jo Bloggs (unpaid)John Doe (paid)Jane Doe (unpaid)Arthur Minute (unpaid)SIC codes:85520 - Cultural education90010 - Performing arts90030 - Artistic creationLocation042400Remember that location is of paramount importance to some types of businesses, less so for others.?If your business doesn’t require specific location considerations, that could be an advantage and you should definitely note it here.?If you have already chosen your location, describe the highlights—you can use some of the factors outlined in the next bullet as a guide or other factors that are essential considerations for your business.?If you don’t yet have a location, describe the key criteria for determining a suitable location for your business. Consider the following examples (note that this is not an exhaustive list and you might have other considerations as well):What kind of space are you seeking and where? Is there a particular area that would be especially desirable from a marketing viewpoint? Must you have a ground-floor location? If so, must your location be easily accessible to public transportation?If you are considering a specific site or comparing sites, the following may be important: How is the access/traffic flow? Are the parking facilities adequate? Is the street lighting sufficient? Is it close to other businesses or venues that might aid in drawing the type of customers you seek? If it is a storefront, does it attract attention or what must be done to make it attract the type of attention you need?Example: ADK operates from a formal commercial location but staff are not always there as work can also be created within the home office environment. This location is primarily used for consultations and happens to be in an arts centre shared office environment, which reinforces the creative nature of what we do and enhances the customer experience. Address: ADK Ltd, c/o CICCIC, Memorial Hall, Paul Street, Taunton, Somerset, TA1 3PF.Or: My practice is located within a studio in my home and the address is: ADDRESS HERE. Due to the nature of my work (many pieces take time to create), and that my worked is housed/sold in exhibition spaces and galleries throughout the South West there is no need for a commercial space. This helps me create works anytime during the day and offers flexibility when working on several pieces.Or: At present I operate from a home studio but this space is inadequate for the growth of my practice and I intend to find a suitable artist studio in the Bripdort area. This could be just a studio but I would like to find one that has a window or retail area where I can sell my works direct to the public. This would also allow me to run art workshops and classes. Hours of Operation0-230000Self-explanatory, but important for such businesses as retail stores or seasonal ventures.Example: At present I do other paid work with other organisations and therefore I am able to select the time I have client visits or take my work to exhibition spaces, shops and galleries. However, I still advertise a full working week for opening times. These are Monday – Friday 10am – 5pm or by appointment.Additional hours are added during the summer months when I trade at art and craft fairs. These are mostly weekends. Products and Services0-49000Describe your products or services and why there is a demand for them. What is the potential market? How do they benefit customers? What about your products or services gives you a competitive edge?For product-based businesses, do you have or need inventory controls? Do you have to consider “lead time” when reordering any items?Note: If your products and/or services are more important than your location, move this topic before location and hours of business.If you are providing only products or only services, delete the part of this heading that is inappropriate.Example: The following products and services are offered by ADK:Art creation – Art created to be exhibited and sold at exhibitions, online and offline galleriesVideo art creation – Video art created to be exhibited and sold at exhibitions, online and offline galleriesDesign services – Graphic, print, product and web servicesConsultancy – Art, design and creative industries business development consultancy For the past 17 years I have provided these services to over 1000 customers showing regular demand.Or: The following products and services are offered by my arts practice:Art creation – Art created to be exhibited and sold at exhibitions, online and offline galleries. Each piece is unique and one-off and includes paintings, drawings, and ceramics. Art Commissions & Calls – Art created by responding to public/private tenders for art commissions.Printed products – Products printed that feature my artwork such as postcards, limited edition prints, textiles, mugs, t-shirts, etc.Art markets – I provide retail of my work via regular local art fairsSuppliers0-212900If information about your suppliers—including your financial arrangements with them—plays an important part of your business, include the relevant information in this section.Example: To create some of the products we produce outside suppliers are used. These include:Print company ABC Limited, Dorset – Purchased and paid for when neededFoundry company EFG Limited, Birmingham, for metal work – 30 days credit givenWeb hosting services HIJ Incorporated – paid annually Service0-7200This is about how your business products or services are provided, use this section to address the level and means of service that you provide to customers, before, during, and after the sale. How do you make your service(s) stand out against the competition?Example: We believe that our practice stands out from the competition because we offer a professional and friendly service with after-sales-support, which many competitors do not. We also remain in contact with all customers to ensure they stay updated about our services. We provide service at several levels and all are dependent on the product of service:Artwork:Customers are able to request framing for unframed work purchased.Customers are able to meet the artist on certain days during the exhibition adding additional value.Artwork can be shipped to the customer anywhere around the world.On items above ?2000 we offer a refund policy after they have lived with the artwork for 30 days.In line with the Distant Selling Act and Ecommerce regulations any artwork sold online can be refunded within 30 days if the items are sent back in the same condition. Each customer who purchases artwork receives a free ‘artists biography and portfolio’ brochure.For an additional fee we also provide a hanging service within the South West region.Design Services & CommissionsWe meet or discuss outline of any design or commissions with the client.Upon deposit paid we provide 1-3 design/art concepts for the client.Once the concept is chosen we provide a set timeline for work completion. Once signed off by the client and payment paid in full we send the design files or work to the client.To enhance the service we provide other associated services such as printing or framing. If artwork commission and not design services are used customers receive a free ‘artists biography and portfolio’ brochure.Workshops & TrainingUpon customers booking any workshops we provide a confirmation via email with any additional information or list of items they need to bring.Upon arrival all attendees are greeted in a friendly and welcoming manner and asked to sign-in.After completion of the workshop a feedback form is provided and any supporting material is given on the day e.g. handouts and/or emailed to the client.A Certificate of Attendance is also provided. Manufacturing0-62500Does your business manufacture any products? If so, describe your facilities and any special machinery or equipment.Without revealing any patented information, describe the manufacturing procedure.If not already covered in the Products and Services section, describe how will you sell the products you manufacture—Directly to the public? Through a wholesaler or distributor? Other? How will you transport your products to market?Example: Artwork created will at times use materials that are manufactured. Some are outsourced to third party providers and others are created at our studio. Those that are created in-house use the following machinery and are owned by the studio:CNC cutting machinePotters wheel (owned already)KilnLarge Format Printer for Glicee and large printingComputer – for developing designs for manufacture or print There are a variety of procedures and all are dependent on the artwork in question and too exhaustive to include here in. Each product is sold directly to the public via my studio, exhibitions, and through third parties such as online galleries. Or: I manufacture my products using a potters wheel and kiln. Not all products created use the potters wheel and are made by hand. Each are sold direct to the public and the procedure often includes:Sourcing clayPreparing clay.Center clay on wheel.Create form.Use string to cut piece off the hump.Place on ware board to dry (leather hard).Store pieces covered for 1-2 days.Trim pieces when leather hard.Add signature and store to dry (bone dry).Bisque fire.Glaze.Glaze firing.Sand/grind sharp edges.Finish.I have several items that sell well and I am presently looking to find a manufacturer who can replicate my work to speed up the process and to increase profit margins.Management0-69100How will your background or experience help you to make this business a success? How active will you be and what areas of management will you delegate to others? Describe any other people who will be/are managing your business, including the following: ?What are their qualifications and background? (Resumes can be included in an Appendix.) ?What are their strengths or areas of expertise that support the success of your business? ?What are their responsibilities and are those clearly defined (particularly important in partnership agreements)? ?What skills does your management team lack that must be supplied by outside sources or by additional hiring?If your business has employees, describe the chain of command. What training and support (such as a handbook of company policies) will you provide to employees? Will you provide any incentives to employees that will enhance the growth of your company?If your business is a franchise, what type of assistance can you expect, and for how long? Include information about operating procedures and related guidance that has been provided to you by the franchiser.Example: My practice employs myself and a part time assistant who provides admin and marketing support. Both have extensive experience within the art sector. Profiles include:YOUR NAME (owner)20 years’ experience in creating paintings and sculpture and self-employmentMember of British Painters Association and Royal British Society of SculptorsExhibited and sold artwork in over 100 exhibitions throughout the UK10 years’ experience in art fairs and studio retailPrivate commissions to over 30 private clientsDegree in Fine Art and CeramicsChair of Dorset Fine Artist Society and member for 15 yearsADMIN NAME (part time)10 years’ experience as a self-employed administrator8 years’ experience in print and social media marketing15 years’ experience using Microsoft Excel, Word & OutlookHND in Business Studies and Statistics6 years’ experience using accounting software e.g. QuickbooksDorset Chamber of Commerce member Financial Management055300As you write this section, consider that the way company finances are managed can be the difference between success and failure. Based on the particular products or services you intend to offer, explain how you expect to make your business profitable and within what period of time. Will your business provide you with a good cash flow or will you have to be concerned with sizeable Accounts Receivable and possible bad debts or collections?The full details of your start-up and operating costs should be included in the Appendix. However, you can reference appropriate tables, charts, or page numbers as you give a brief, summary accounting of your start-up needs and operating budget. ?Start-up needs should include any one-time only purchases, such as major equipment or supplies, down-payments, or deposits, as well as legal and professional fees, licenses/permits, insurance, renovation/design/decoration of your location, personnel costs prior to opening; advertising or promotion?Once you are ready to open your business, you will need an operating budget to help prioritize expenses. It should include the money you need to survive the first three to six months of operation and indicate how you intend to control the finances of your company. Include the following expenses in your cash flow forecast: rent, utilities, insurance, payroll (including taxes), loan payments, office supplies, travel and entertainment, legal and accounting, advertising and promotion, repairs and maintenance, depreciation, and any other categories specific to your business.You can also include information (or cross-reference other sections of this business plan if covered elsewhere) about the type of accounting and inventory control system you are using, intend to use, or, where applicable, what the franchiser expects you to use.Example: Our administrator completes day-to-day book keeping using Excel and this program is used as we only have an average of 20 invoices per month. If we reach 50 invoices a month we intend to migrate to an accounting software package. We also use a professional accountant for end-of-year accounting. We have used this accounting firm for 5 years:XYZ Accounting Services, Finance Street, Hightown, Dorset, DT5 8ERAll items sold by our studio are paid by the client upon purchase and no credit is given. This helps us manage cash flow in a direct way. However, online galleries that sell our works do not provide payment for 90 days. This we have equated in our cash flow forecast (see page 14). Based on present sales and our cash flow forecast we see the investment into a new studio will put us into the red for 12 months but with the proposed loan investment we see profit return after this period. Staff are paid monthly and though our studio is sales orientated we do apply for funding for certain projects, such as a grant from Arts Council England. In this instance 90% of funds are provided upfront and do not affect cash flow shortfalls. In the event of sales being low we have the ability to pay less drawings to the business owner and have a certain amount of personal funds should we need to loan the studio money to make ends meet. However, we do not envisage this happening. Or: As a new business we require the purchase of capital equipment and investment into leasing a commercial property. This has been equated in our cash flow forecast (see page 14) but can be summarized as:?8000 for capital purchases and equipment?1800 deposit for property ?1200 Legal and insurance With our own investment of ?5000 we have identified that we would need a loan of ?6000. This has been discussed with our local bank and an offer will be available. Cash flow forecasts show we need an operating budget of ?1200 per month meaning sales need to be an average of ?2500 per month or ?30,000 per year. With an average price of ?800 for items we sell we equate the need to sell 38 items per annum. Having sold an average of 15 items per year (part-time) from my home studio I can calculate, by working full-time, I need to increase sales by 50%, which is achievable based on my marketing plans to sell more and being more public with my new proposed studio. Marketing0-104000How well you market your business can play an important role in its success or failure. It is vital to know as much about your potential customers as possible—who they are, what they want (and don’t want), and expectations they may have.Example: To promote our studio and services we are currently proactive in the following marketing strategies:Targeting art networking events in Somerset, Devon and Dorset and presenting our works and workshops credentials to key players.Use website optimisation and e-commerce to create a wider participating audience.PR through local news and media providers.Leafleting local businesses and public places.Promoting and advertising services to targeted business sites and publications in the county.Social media and website promotion.Advertising in local publicationsSelling works through online galleriesProfiling our studio through online portfolio websitesGetting involved and attending local art related events, fairs and exhibitionsDirect mailing to selective retail shops and restaurants who can use our ceramic tablewareMarket Analysis0-211900What is your target market? (Who is most likely to buy your products or use your services?) What are the demographics? What is the size of your potential customer base?Where are they? How are you going to let them know who and where you are and what you have to offer?If you believe that you have something new, innovative or that isn’t generally available: How do you know that there is a market for it—that people are willing to pay for what you have to offer?Consider the market you are trying to reach: Is it growing, shrinking or static?What percentage of the market do you think you will be able to reach? How will you be able to grow your market share?Example: As our studio will be based in Lyme Regis the demographics of our main customers includes local people, visitors and tourists. 2014 Mid-Year Estimates from the Office National Statistics shows the population of Lyme Regis as 3,603:TotalPercentageAll persons3,603All males1,63445.4%All females1,96954.6%0-15 yrs44612.4%16-64 yrs1,86451.7%65+ yrs1,29335.9%Socio-demographic data shows:The highest proportion of residents are classified as: Residents of small and mid-sized towns with strong local roots (17.9%)Followed by:Active elderly people living in pleasant retirement locations (14.3%) Elderly people reliant on state support (14.3%)There are 1,770 households and Lyme Regis has access to a hourly bus service.All usual residents aged 16-64 in Employment is 1,478 with: 44.7% - High skill occupation39% - Intermediate skill occupation16.3% - Low skill occupation - Source: 2011 Census. Office for National StatisticsThis data tells us that any funded programmes or projects that reduce isolation, increase skills would be of benefit to the overall business whether now or in the future. Plus, utilising bus routes may help some minor marketing messages outside of Lyme Regis.Area Profile for Dorset, Bournemouth and PooleThe current population of Dorset is estimated to be 420,600; an increase of 2,300 since 2014, with those aged 65+ increasing in particular. Yet the population of Dorset, Bournemouth and Poole combined is 765,680, all of which are potential customers.Tourism The importance of tourism to the county is clear and in 2014 it attracted approximately 3.4m staying visitors and 25.5m day visitors generating a total business turnover of ?2.5b and an estimated 47,000 actual jobs, or 13% of all employment, supported by tourism activity.Within the South West region Dorset accounts for 16% of all domestic staying trips, 15% of all overseas staying trips and 17% of tourism day visits.Source ‐ Dorset Destination Management Plan 2014‐2018 – The Tourism Company & The Economic Impact of Dorset’s Visitor Economy 2014 – The South West Research Company (TSWRC) Nov 15Research conducted for the Dorset Management Plan 2014‐2018 summarised the strength of the Dorset brand and key words named by survey respondents as below;The brand values are complex with a number of specific, positive attributes:?The dramatic coast and unspoilt ‘traditional’ countryside;?Superb beaches and water‐based activities;?Heritage towns;?Food and drink; and?Arts and cultureDorset Tourism Key Facts (2014)?3,434,000 Staying visitor trips?14,774,000 Staying visitor nights??864,419,000 Staying visitor spend?25,530,000 Day visits??870,750,000 Day visitor spend??1,735,169,000 Direct visitor spend??51,559,000 Other related spend??1,786,728,000 TOTAL VISITOR RELATED SPEND??2,518,681,000 TOTAL BUSINESS TURNOVER SUPPORTED?47,000 Estimated actual employment?35,000 FTE employment?13% Proportion of all employment??1,404,226,000 Estimated GVAOnline MarketsOnline art market sales reached $3.27 billion, up 24% in 2015/16. Despite a decrease in global art auction sales in 2015, the online art market grew an estimated 24% last year, indicating that the lower end of the art market could be more resilient to a slowdown than works selling in the mid- to high-end price range.92% of online art buyers expect to buy more or the same amount of art online in the next 12 months, 48% of the online art buyers surveyed said they would buy more art and collectibles online in the next 12 months compared to the previous 12 months. 44% said they would buy ‘about the same’ and only 8% said they would buy less art and collectibles online.Existing online art buyers are buying more, but there is still resistance among 51% of art buyers in buying art online.About half (49%) of respondents said they have bought art directly online, which is the same result as last year (but up from 39% in 2014). However, among ‘new art buyers’ 41% said they had bought art online in the last 12 months (down from 43% in 2015) and 43% of young art buyers said they had bought art directly online (down from 46% in 2015), which could suggest that the online art buying trend might not be catching on as fast as in previous years. In addition, a significant number of young collectors cite financial motivation (expected return) when buying art, slower art market growth teamed with economic uncertainty could have an impact on their willingness to buy art.Traditional vs new art market players. The Hiscox Online Art Platform Ranking 2016 signals that art buyers are still rating the traditional auction houses highly, with Christie’s online platform ranked number one and Sotheby’s in fourth place, despite stiff competition from the growing number of pure-play online companies such as Artnet, Artsy, Paddle8 and Auctionata.Gallery sector slowly adapting. 28% of the galleries surveyed said they now offered their clients the option to buy and pay directly online, up from 22% in our last gallery survey in 2013. However, some friction still remains between the traditional relationship based gallery/dealer model and the online click-and-buy model where there is often little or no interaction between the seller and the buyer.At the same time though, 41% of galleries say they generate online sales through third-party marketplaces such as 1stdibs, Artsy, Artnet and Ocula and a further 26% said they planned to partner up with a third party e-commerce platform in the near future (up from 15% in 2013). However, 39% of galleries in the survey (down from 41% in 2013) indicated that they had no e-commerce strategy in place.UK Arts & CultureThe wider contribution of arts and culture to the UK economy should not be underestimated. Over 16,000 enterprises work in the field of artistic creation in the UK, contributing ?2.44 billion to the GVA of the non-financial economy in 2014. Employment across the music, performance and visual arts economy (in both creative and non-creative roles) also increased between 2011 and 2014, reaching 347,000 people.Note: You might include a chart, such as the one that follows, to demonstrate key points about your market potential at-a-petition01000Who else is doing what you are trying to do? Briefly describe several of your nearest and greatest competitors. What percentage of the market does each reach? What are their strengths and weaknesses? What can you learn from the way they do business, from their pricing, advertising, and general marketing approaches? How do you expect to compete? How do you hope to do better?What indirect competition will you face, such as from internet sales, department stores, or international imports?How will you keep abreast of technology and changing trends that may impact your business in the future?Example: There are no competitors in the area delivering professional art classes although there are a handful of workshops in other areas of the county. We do not see this as a threat as we know most people will only travel within 15 miles to attend a workshop. We only provide art classes weekdays as we rent our space and the owner uses that space on weekends, but we do know that some providers in Dorset do provide courses on Saturdays. This is a threat to how much market share we can obtain. However, once our own studio has been found we can start to provide weekends classes. Exhibition spaces are hard to find in the county and this restricts the amount of times I can exhibit my work. This is a threat to the amount of sales for my original artwork. Additionally, there are many artists in the county and some do produce work similar to me. This is expected within my industry but there are many who do not do solo exhibitions like I do so I have a competitive advantage. My marketing plan is to seek other exhibition spaces outside the county and continue the pursuit of selling my artwork via online galleries. Using SWOT (strengths, weaknesses, opportunities, threats) analyses table below I have identified counter measures to grow my practice/business:SWOT DescriptionActions to be takenStrength – Qualified at degree level in art and experience in teaching schools and adults in painting and drawingLook at creating a trifold leaflet to advertise my services to schools and to look at doing art classes in other studiosStrength – Have been a practicing artist for 10 years and have a good reputation locallyWrite a better creative statement and CV to enhance my profile as an artistStrength – I belong to a group of artist who in the past have successfully obtained public funding for art projects Develop a strategy to seek more funding for projects and help develop marketing material to send to potential partners for funding applicationsStrength – I have successfully sold an average of 40 pieces of original artwork each year and teach over 40 students Look for new places to stock or exhibit my artworkStrength – I own all equipment needed to produce my artwork Look for opportunities to rent out my equipment to other artistsWeakness – I do not have enough funds to finance my own studio with retail spaceLook into a loan that I can afford to pay or find another artist who may be able to share the studio and retail spaceWeakness – Do not have enough buyers for my artworkResearch new potential customer’s e.g. interior designers, and direct market my portfolio to them. Find exhibition spaces that I can afford or look at sharing a pop-up shop with other artistsWeakness – I can only work 3 days a week due to having a new born child that I care for and this restricts the amount of time I can workDevelop new ways of converting my original pieces into prints so I can sell more online and maximize profit from original worksWeakness – I do not do any marketing activity or have any print promotional material and I do not use social media effectivelyInvest in getting portfolio brochure that I can use to market myself to galleries and potential buyers. Do some training on social media to maximize this sales channelOpportunities – Government and local agendas state that the arts can help health, dementia and well-being and some tenders or funding is available for thisGet training on working with dementia sufferers and advertise services to agencies. Find local partners I can work with and find locations to hold classesOpportunities – There are several calls for artists to exhibit in places beyond the countyPlan a budget to respond and pay to enter these calls to help expand my CV and artistic activityOpportunities – Several artists have mentioned their frustration with the lack of exhibition and retail space for artist in the areaDevise a plan to share a possible retail/exhibition area or to test the market as a group via a pop-up shop to help sell more workOpportunities – There are commissions advertised for artist workResearch where this information is and sign-up to alerts so I can pitch my services when commissions are advertisedThreat – More people are buying art online Sign-up to more online galleries and submit my work for saleThreat – No experience in marketing or finding new ways to find new customersCalculate whether I can afford a part time person to help or attend some workshops or college course to learn how to do marketing myselfThreat – There are other artists who can produce the same quality of work that I do but can sell it much cheaper and have more products to sell when exhibiting Look at how I can cut my costs by finding new suppliers for print and framing. Employ a consultant to look at how I can diversify my products and cost this out for investment.Threat – I rely on someone else’s equipment and studio to run my workshops and if they pulled the plug on this my practice would lose money and customersDevise a contingency plan and look at how I could fund my own studio and equipment. Speak to a business advisor on which ways are best. Pricing0-5600How have you developed your pricing policy? Which of the following pricing strategies might best suit your business? Retail cost and pricing, competitive position, pricing below competition, pricing above competition, multiple pricing, price lining, pricing based on cost-plus-markup, or other?What are your competitors’ pricing policies and how does yours compare? Are your prices in line with industry averages? How will you monitor prices and overhead to ensure that your business will operate at a profit?How do you plan to stay abreast of changes in the marketplace, to ensure that your profit margins are not adversely affected by new innovations or competition?Example: My pricing structure varies depending on the piece/pieces I create, and it is not uncommon for the art industry to sell work that does reflect the cost of producing works. However, I tend to use the following pricing format:If materials cost ?50, I take 20 hours to make the art, and I pay yourself ?20 an hour to make it, then I price the art at ?450 (?20 X 20 hours + ?50 cost of materials).If prints from original artwork I price these at materials plus 80% e.g. materials at ?100 + ?80In some cases certain galleries have customers who are not accustom to higher fees for art. In this instance I sometimes lower my prices by 15-20% to help shift my work.For workshops and tuition I charge the average going rate of ?25 per hour per student. This covers all associated costs involved but does require a minimum of 4 students per workshop. Maximum students is 10.To ensure costs are covered I keep a spreadsheet of each activity/piece I make adjust my pricing based on rising costs of materials. Advertising and Promotion08600How do you intend to advertise your business?Which of the following advertising and promotion options offer you the best chances of successfully growing your business? Directory services, social networking websites, media (newspaper, magazine, television, radio), direct mail, telephone solicitation, seminars and other events, joint advertising with other companies, sales representatives, word-of-mouth, other?How will you determine your advertising budget?How will you track the results of your advertising and promotion efforts?Will you advertise on a regular basis or will you be conducting seasonal campaigns?How will your products be packaged? Have you done research to see what type of packaging will best appeal to your customers? Have you done a cost analysis of different forms of packaging?Example: Due to the nature of what I do advertising is usually performed by the gallery or art fair I feature in. However, as my artwork is focused around portraits and figurative animal sculptures I do advertise in House & Home in the classified, which has led to some commissions. Additionally, I enter the county art fair once a year and do advertise in the programme. Social media activity is completed by myself and I do not advertise on this platform but activity promote my workshops through several groups. I do use quality packaging for my small pieces of sculpture using boxes and satin fillers. Each client also gets a portfolio book featuring myself as the artist and all previous work. AppendixStart-Up Expenses (delete if not required and if an existing business use our cash flow forecast Excel spreadsheet)Business LicensesIncorporation ExpensesDepositsBank AccountRentInterior ModificationsEquipment/Machinery Required:Item 1Item 2Item 3Total Equipment/MachineryInsuranceStationery/Business CardsBrochuresPre-Opening AdvertisingOpening InventoryOther (list):Item 1Item 2Total Startup ExpensesMiscellaneous Documents0-255300In order to back up the statements you may have made in your business plan, you may need to include any or all of the following documents in your appendix:?Personal resumes?Personal financial statements?Credit reports, business and personal?Copies of leases?Letter of reference?Contracts?Legal documents?Personal and business tax returns?Miscellaneous relevant documents.?PhotographsCash Flow Forecast0-255300Use the Excel spreadsheet and complete a 3 year forecast. These templates can be found on our website or it would have been sent to you from a business advisor. Example: We have completed 3 years forecast which can be found overleaf. We can see that in the first year there is a loss of ?XXX but this is due to the investment in equipment and studio. However, as sales rise profit is shown in years 2 and 3. ................
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