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Art School Gallery Business Plan Leave a comment
The ArtSphere Gallery School of Art (ArtSphere) began its operations in September of this year after expanding from its former back room into the full 787 square foot facility on the corner of Main and 1st Streets in Birmingham, AL. Since September, the business has experienced significant growth but it has done so in an uneven manner. This business plan will help to create a framework that allows for maximum profit potential and growth. This plan will help increase profits by increasing them each year until the end of the third.
Here are the keys to success and critical factors in order of importance
- Penetration into the day-time market for art lessons.
- Some alterations are made to the premises.
- Making changes to certain operational or pricing practices.
- Making sale of art supplies an additional profit source.
1.1 Objectives
ArtSphere’s greatest opportunity is to teach art to paid customers. This is only possible with a maximum of eight people at a time. The primary objective is to be able to penetrate the 9 A.M. – 3 P.M. market. This is 61% or more of ArtSphere’’s teaching resources. This is undoubtedly the most critical element in the future growth and development of profits. This is the primary goal of increasing penetration from the current low level to 90% of its full capacity by year two.
As the afternoon market sector (22% of total capacity) is already nearly fully booked, a secondary objective is to fill the evening hours (Monday through Thursday) 7:30 P.M. to 9:30 P.M. These eight hours are easy to fill. This goal should be reached by the end of Month 5.
A further objective is to separate art supplies from art lessons, so as to make the sale of art supplies a separate profit center.
The final goal is to preserve the current level of portrait work under contract from clients as well as the historical sales level of art work created prior to the recent mushrooming in art instruction.
1.2 Mission
The ArtSphere is committed in providing professional and competent art instruction in a pleasant environment that caters to different market segments. The ArtSphere strives for a closer and longer-lasting relationship with its customers than can be achieved through a six-session, generic art course at Bessemer College. ArtSphere knows that the product it actually sells is not the one it teaches. Helena Rubenstein says, “In the factory, we manufacture cosmetics. But the product that we sell, is called hope. ‘”
ArtSphere is a good example of this thinking. Different buyers view the product differently. An artist school may require special assistance to compile a portfolio for a serious student. For a 70-year-old woman who is retired, this could be a fun way for her to fill in the gaps of her life. A stress-ridden executive may be seeking solace and relaxation. Advice, encouragement, and technical advice are all available to help you with your stress. ArtSphere offers many other products. Art lessons can be obtained for less than $5.00 an hour through some evening classes at the state college. These prices are too high for the ArtSphere. We can only create and maintain high sales levels by creating the “real” product that customers want.
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.). Its customers.
- The limited spaces (maximum eight) are non-returnable. These are similar to airplane seats. Any 10 o’’clock space left unsold today will be lost forever. It is essential, to avoid the problem of “no-shows,” that customers be signed up on a monthly basis, payable in advance. You can still switch times slots. “Walk-ins” can still be accommodated, based on availability, but these “products” must be sold at a premium to encourage customers to sign up.
- Like all businesses, it’s important to recognize the “heavy user and encourage them.
If the end of an hour’s art lesson doesn’t come to an agreed upon time, such as lights being turned out, the customer can continue working for many hours. It is important to arrange a signaled end to a lesson by collecting students’ canvases to store them for the next session. For those who want to attend a longer session, they can only sign up for a longer time. Only then will the owner make a profit from the “heavy user.”
