(This is a guest blog post by Gayle Mahoney, an artist and arts marketing consultant. You can follow her blog about arts marketing, Make a Living Making Art.)
When I started my arts business I dreaded writing a business plan. The mere idea was overwhelming and I did not know where to start. But as soon as I began working on it I realized it was the best way to work out the details of how to run my business. It required me to do research about overhead, cost of materials, production methods, marketing opportunities, potential investors and potential profits. It also allowed me to consider how I wanted to spend my time, what I wanted my business to be and what I did not want it to be.
A business plan is a road map to help you plan and grow your business. It can help you focus your energies to meet both short-term and long-term goals. A good business plan can help establish credibility for you as a business person and is necessary if you are seeking outside investment from other individuals or financial institutions. A business plan is a strategic tool that determines how your business will operate.
Once you have a business plan, you can translate each section into actionable task lists, allowing you to take control of your career as an artist. Any time I face an important business opportunity or decision, I review my plan and determine whether or not that opportunity will help me accomplish my goals.
An artist’s business plan will not necessarily look like a traditional business plan. What is most important in an artist’s business plan is to determine whether your venture will be profitable, how to price your work, how to estimate costs of doing business, how to manage your time, how to fund the start-up of your business, how to find outlets to sell your work, and how to grow your business. Business plans are flexible, organic documents and will change and grow over time. Just like a road map, they need to be updated to reflect changing markets, prices, products and what you want to do in your business.
Most business plans include:
- A cover page
- Table of contents
- Executive summary (summary of the plan and a mission statement).
- Organizational plan (how your business is structured now and how it will be structured as your business grows)
- Management plan (description of your management capabilities and resources)
- Marketing plan (how you plan to sell your work)
- Financial plan (summary of your financial condition, funding sources, profit and loss projections, cash flow projections)
- Resume- description of your skills and experience.
Your unique business plan is a reflection of your dreams and goals, and will help you turn them into a reality.
Here are some online resources to help you write a business plan:
http://artsandcrafts.about.com/od/businessplans/Creating_a_Business_Plan.htm
http://www.ehow.com/how_5783504_write-artist-business-plan.html
http://www.craftsreport.com/business-wise/92-planit.html
http://www.bplans.com/
Please post any questions you may have about getting started! Or send me an email at gayle.mahoney@mac.com