Art School Gallery Business Plan

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ArtSphere Gallery School of Art (ArtSphere), opened its doors in September after moving from its old back room to a 787 square foot facility at the corner of Main Street in Birmingham, AL. Since September the business has grown substantially, but in an unordered way. This business plan will provide a framework for growth that maximizes profit potential. Successful realization of this plan will produce increasing profits annually by the end of the third year.

In order of importance, the following are key factors and keys to success:

• For art lessons, penetration into the market during the day.
• Some alterations are made to the premises.
• Making changes to pricing or operational practices.
• Art supplies can be sold as an additional source of income.

1.1 Objectives

ArtSphere has the most potential for growth by teaching art to paying clients. It is possible to teach art to eight people simultaneously, but the capacity for this task is very limited. The main objective is to reach the 9 A.M. to 3. P.M. daily market. This is the largest portion of ArtSphere’s teaching capacity (61%). This is the most crucial element for future profits development. The primary objective is to increase the penetration of this market sector gradually from its current near zero level to 90% at the end of the second year.

Since the afternoon market sector (22% capacity) is nearly full, it is important to fill the evening hours. These are Monday through Thursday from 7:30 P.M. to 9:00 P.M. These eight hours are much easier to fill. This goal should be reached by the end of Month 5.

Another objective is to seperate art supplies and art lessons in order to make art supplies a separate profit centre.

Final objective: To maintain the level currently achieved in portrait work by clients under contract as well as to maintain the historical level sales of ArtSphere’s art work prior to the mushrooming of art instruction.

1.2 Mission

The ArtSphere is dedicated to providing competent, professional instruction in art in friendly, pleasant surroundings while catering to the varying needs of different target market groups. The ArtSphere strives to establish a deeper and more lasting relationship with customers than the six-session generic course offered by Bessemer State College. ArtSphere knows that the product it actually sells is not the one it teaches. Helena Rubenstein was quoted as saying that although cosmetics are manufactured in a factory, the product sold is called hope. ‘”

This thinking holds true at the ArtSphere. Different buyers will see the product differently. An artist school may require special assistance to compile a portfolio for a serious student. A 70-year old woman might want to fill her day with fun activities. Stressed executives may be looking for solace or relaxation. Encouragement, technical advice, stress-relief, escape from loneliness, self-expression, etc. ArtSphere is a distributor of many products. Art lessons are affordable at as little as $5.00 per lesson in evening classes at some state colleges. These prices are too high for the ArtSphere. Only by tailoring the product to customers’ needs can we create and sustain high levels of sales.

1.3 Keys for Success

The most important factor in ensuring success is the ability of owners to tailor the product to their customers’ specific needs (emotional. psychological. etc.). The customers.

• The limited spaces (maximum of eight) have no shelf life. They can be compared to plane seats. If a 10 o’clock spot is not sold today, it will be gone forever. To avoid the issue of “no-shows”, it is imperative that customers sign up monthly and pay in advance. The possibility of changing time slots is still possible. Walk-ins are possible, provided that there is enough inventory. However, these products must be priced at a premium so customers will sign up.
• Like all businesses, it’s important to recognize the &#8220heavy user and encourage them.

If an hour-long lesson in art does not conclude with the lights being turned off or the lights being turned off, customers may continue to work for hours. To ensure that the lesson ends in a timely manner, students should be able to collect their canvases and store them for the next session. Only those who wish to take part in a longer session can enroll for a shorter period. Owners can only make a profit when the heavy user is enrolled.

Both owners are artistic and at times reluctant to insist on certain policies designed to encourage profitability. A willingness to be flexible in this department is key to the success of this plan.

The special nature of the product does not allow for it to be purchased on a “take-out” basis. It must be consumed at the location. It is crucial to ensure that customers have a pleasant environment. A lack of lighting, clutter, cleanliness, policies regarding smoking and seating arrangements, etc. are all issues that must be addressed. All must be addressed. The ArtSphere is located within easy reach of the harbor landing and has the potential to create a more relaxed atmosphere than a traditional rectangular classroom at state colleges.

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