[Business Plan

Title]
[Business Plan Subtitle]

[Your Address Here p. [Telephone] [Email]

Your Town Here] f. [Fax] [Web address]
Table of Contents
I. Executive Summary..................................................................................................2
Highlights
Objectives
Mission Statement
Keys to Success
II. Description of Business.............................................................................................3
Company Ownership/Legal Entity
Location
Hours of Operation
Products and Services
Suppliers
Service
Manufacturing
Management
Financial Management
III. Marketing................................................................................................................10
Market Analysis
Competition
Pricing
IV. Appendix................................................................................................................. 18
Start-Up Expenses (delete if not required and if an existing
business use our cash flow forecast Excel spreadsheet)
Miscellaneous Documents
Cash Flow Forecast
Executive Summary
Write 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.

Highlights
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.

Financial Overview
£120,000 Sales
£100,000 Net Profit
£80,000 Expenses

£60,000
£40,000
£20,000
£0
2013 2014 2015 2016

[BUSINESS PLAN TITLE] - [SELECT DATE] 2

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 £28,000
 Investment of £3000 in capital equipment
 Art exhibitions in 3 well known galleries
 Developed 3 new sales channels (offline, online and classroom)
 Found 50 new customers
 Worked on a public funded project for the local council

Objectives
For 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:

1. New retail/studio/gallery in NAME TOWN by March 2018

2. Expand retail equipment for extending art fairs during the summer June 2018
3. Develop a focused marketing plan to expand retail Sept 2018
4. Triple sales by Dec 2019

Mission Statement
If 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 Success
Describe 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:

1. A team of seasoned business and creative industry professionals with over 25 years of combined
experience in art, education community work.
2. A business that has already tested the market and established a reputation as provider of art products
and services as defined in this plan.
3. An arts practice that already has established partnerships with public, private and third sector
national and regional bodies.
4. A strong determination to succeed and to create outstanding art related products that are of value to
individuals and community

Description of Business
Give 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.

[BUSINESS PLAN TITLE] - [SELECT DATE] 3

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 Entity

Indicate 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:

1. Jo Bloggs (unpaid)
2. John Doe (paid)
3. Jane Doe (unpaid)
4. Arthur Minute (unpaid)

SIC codes:

 85520 - Cultural education

 90010 - Performing arts
 90030 - Artistic creation

[BUSINESS PLAN TITLE] - [SELECT DATE] 4

Location
Remember 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 Operation
Self-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.

[BUSINESS PLAN TITLE] - [SELECT DATE] 5

Additional hours are added during the summer months when I trade at art and craft fairs. These are mostly
weekends.

Products and Services

Describe 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:

1. Art creation – Art created to be exhibited and sold at exhibitions, online and offline galleries
2. Video art creation – Video art created to be exhibited and sold at exhibitions, online and offline
galleries
3. Design services – Graphic, print, product and web services
4. Consultancy – 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:

1. 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.
2. Art Commissions & Calls – Art created by responding to public/private tenders for art commissions.
3. Printed products – Products printed that feature my artwork such as postcards, limited edition prints,
textiles, mugs, t-shirts, etc.
4. Art markets – I provide retail of my work via regular local art fairs

Suppliers
If 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:

1. Print company ABC Limited, Dorset – Purchased and paid for when needed
2. Foundry company EFG Limited, Birmingham, for metal work – 30 days credit given
3. Web hosting services HIJ Incorporated – paid annually

[BUSINESS PLAN TITLE] - [SELECT DATE] 6

Service
This 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:

1. Customers are able to request framing for unframed work purchased.

2. Customers are able to meet the artist on certain days during the exhibition adding additional value.
3. Artwork can be shipped to the customer anywhere around the world.
4. On items above £2000 we offer a refund policy after they have lived with the artwork for 30 days.
5. 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.
6. Each customer who purchases artwork receives a free ‘artists biography and portfolio’ brochure.
7. For an additional fee we also provide a hanging service within the South West region.

Design Services & Commissions

1. We meet or discuss outline of any design or commissions with the client.

2. Upon deposit paid we provide 1-3 design/art concepts for the client.
3. Once the concept is chosen we provide a set timeline for work completion.
4. Once signed off by the client and payment paid in full we send the design files or work to the client.
5. To enhance the service we provide other associated services such as printing or framing.
6. If artwork commission and not design services are used customers receive a free ‘artists biography
and portfolio’ brochure.

Workshops & Training

1. Upon customers booking any workshops we provide a confirmation via email with any additional
information or list of items they need to bring.
2. Upon arrival all attendees are greeted in a friendly and welcoming manner and asked to sign-in.
3. 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.
4. A Certificate of Attendance is also provided.

Manufacturing
Does your business manufacture any products? If so, describe your facilities and any special machinery
or equipment.

[BUSINESS PLAN TITLE] - [SELECT DATE] 7

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 machine

 Potters wheel (owned already)
 Kiln
 Large Format Printer for Glicee and large printing
 Computer – 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:

1. Sourcing clay
2. Preparing clay.
3. Center clay on wheel.
4. Create form.
5. Use string to cut piece off the hump.
6. Place on ware board to dry (leather hard).
7. Store pieces covered for 1-2 days.
8. Trim pieces when leather hard.
9. Add signature and store to dry (bone dry).
10. Bisque fire.
11. Glaze.
12. Glaze firing.
13. Sand/grind sharp edges.
14. 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.

Management
How 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?

[BUSINESS PLAN TITLE] - [SELECT DATE] 8

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-employment

 Member of British Painters Association and Royal British Society of Sculptors
 Exhibited and sold artwork in over 100 exhibitions throughout the UK
 10 years’ experience in art fairs and studio retail
 Private commissions to over 30 private clients
 Degree in Fine Art and Ceramics
 Chair of Dorset Fine Artist Society and member for 15 years

ADMIN NAME (part time)

 10 years’ experience as a self-employed administrator

 8 years’ experience in print and social media marketing
 15 years’ experience using Microsoft Excel, Word & Outlook
 HND in Business Studies and Statistics
 6 years’ experience using accounting software e.g. Quickbooks
 Dorset Chamber of Commerce member

Financial Management
As you write this section, consider that the way company finances are managed can be the difference
between success and failure.

[BUSINESS PLAN TITLE] - [SELECT DATE] 9

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 8ER

All 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:

[BUSINESS PLAN TITLE] - [SELECT DATE] 10

  £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.

Marketing
How 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 publications
 Selling works through online galleries
 Profiling our studio through online portfolio websites
 Getting involved and attending local art related events, fairs and exhibitions
 Direct mailing to selective retail shops and restaurants who can use our ceramic tableware

Market Analysis
What 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?

[BUSINESS PLAN TITLE] - [SELECT DATE] 11

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:
Total Percentage

All persons 3,603

All males 1,634 45.4%

All females 1,969 54.6%

0-15 yrs 446 12.4%

16-64 yrs 1,864 51.7%

65+ yrs 1,293 35.9%

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 occupation

 39% - Intermediate skill occupation

 16.3% - Low skill occupation - Source: 2011 Census. Office for National Statistics

[BUSINESS PLAN TITLE] - [SELECT DATE] 12

This 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 Poole

The 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 15

Research 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 culture

Dorset 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

[BUSINESS PLAN TITLE] - [SELECT DATE] 13

 • 35,000 FTE employment

• 13% Proportion of all employment

• £1,404,226,000 Estimated GVA

Online Markets

Online 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 & Culture

The 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-
[BUSINESS PLAN TITLE] - [SELECT DATE] 14
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-glance.

Local Market Growth By Product Type

% growth over prior period

40%
35% Prints Paintings

30% Ceramics
25%
20%
15%
10%
5%
0%
2008 2012 2016

Competition
Who 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:

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 SWOT Description Actions to be taken
Strength – Qualified at degree level in art and Look at creating a trifold leaflet to advertise my
experience in teaching schools and adults in painting services to schools and to look at doing art classes in
and drawing other studios
Strength – Have been a practicing artist for 10 years Write a better creative statement and CV to enhance
and have a good reputation locally my profile as an artist
Strength – I belong to a group of artist who in the Develop a strategy to seek more funding for projects
past have successfully obtained public funding for and help develop marketing material to send to
art projects potential partners for funding applications
Strength – I have successfully sold an average of 40 Look for new places to stock or exhibit my artwork
pieces of original artwork each year and teach over
40 students
Strength – I own all equipment needed to produce Look for opportunities to rent out my equipment to
my artwork other artists
Weakness – I do not have enough funds to finance Look into a loan that I can afford to pay or find
my own studio with retail space another artist who may be able to share the studio
and retail space
Weakness – Do not have enough buyers for my Research new potential customer’s e.g. interior
artwork 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 artists
Weakness – I can only work 3 days a week due to Develop new ways of converting my original pieces
having a new born child that I care for and this into prints so I can sell more online and maximize
restricts the amount of time I can work profit from original works
Weakness – I do not do any marketing activity or Invest in getting portfolio brochure that I can use to
have any print promotional material and I do not market myself to galleries and potential buyers. Do
use social media effectively some training on social media to maximize this sales
channel
Opportunities – Government and local agendas Get training on working with dementia sufferers and
state that the arts can help health, dementia and advertise services to agencies. Find local partners I
well-being and some tenders or funding is available can work with and find locations to hold classes
for this
Opportunities – There are several calls for artists to Plan a budget to respond and pay to enter these
exhibit in places beyond the county calls to help expand my CV and artistic activity
Opportunities – Several artists have mentioned their Devise a plan to share a possible retail/exhibition
frustration with the lack of exhibition and retail area or to test the market as a group via a pop-up
space for artist in the area shop to help sell more work
Opportunities – There are commissions advertised Research where this information is and sign-up to
for artist work alerts so I can pitch my services when commissions
are advertised
Threat – More people are buying art online Sign-up to more online galleries and submit my work
for sale
Threat – No experience in marketing or finding new Calculate whether I can afford a part time person to
ways to find new customers help or attend some workshops or college course to
learn how to do marketing myself
Threat – There are other artists who can produce the Look at how I can cut my costs by finding new
same quality of work that I do but can sell it much suppliers for print and framing. Employ a consultant
cheaper and have more products to sell when to look at how I can diversify my products and cost
exhibiting this out for investment.
Threat – I rely on someone else’s equipment and Devise a contingency plan and look at how I could
studio to run my workshops and if they pulled the fund my own studio and equipment. Speak to a
plug on this my practice would lose money and business advisor on which ways are best.
customers

Pricing
How have you developed your pricing policy?

[BUSINESS PLAN TITLE] - [SELECT DATE] 16

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 + £80

In 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 Promotion

How 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?

[BUSINESS PLAN TITLE] - [SELECT DATE] 17

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.

[BUSINESS PLAN TITLE] - [SELECT DATE] 18

Appendix
Start-Up Expenses (delete if not required and if an existing business use our cash
flow forecast Excel spreadsheet)
Business Licenses

Incorporation Expenses

Deposits

Bank Account

Rent

Interior Modifications

Equipment/Machinery Required:

Item 1

Item 2

Item 3

Total Equipment/Machinery

Insurance

Stationery/Business Cards

Brochures

Pre-Opening Advertising

Opening Inventory

Other (list):

Item 1

Item 2

TOTAL STARTUP EXPENSES

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Miscellaneous Documents
In 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.

• Photographs

Cash Flow Forecast

Use 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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