Develop an Art Business Plan

You need an art business plan if you are serious about making money and supporting your self as an artist, as an art dealer.

What is a business plan?

An art business plan will set the course for your business. In it you will state the purpose and mission for your business, define how your business is structured, outline financial and marketing plans and both long term and short term goals. It will help you communicate the purpose and goals of your business to others.Even if you don't need any help running your business at first, you should still have a plan. It helps you clarify your thoughts and work out the details.

A basic art business plan is outlined below. Use it as a starting point; yours can be more complex, the more detailed, the better.

Start with a paragraph or two that describes your business plan in a nutshell. Write your plan first, then come back and do this part.

Overview:

Make this as detailed as possible. Why are you starting your business? What do you hope to accomplish? Who are your customers and where will they come from? Where do you see the business in one year, five years, ten years? What is your competitive advantage? What type of legal form will your business take?(sole proprietor, partnership or corporation)Think three to five years ahead--which business form will be appropriate then? That is what you should do now. What type of financial gains do you expect from your art business?

Marketing Plan:

Describe your target customer. What segment of the population will account for most of your sales? How will you get your art in front of them? What will entice them to buy? How will your work be priced? What forms of your work will you be selling? How will the transactions take place and your product be distributed? Do you have a plan for generating new customers from existing ones? What about for getting repeat customers?

Financial plan:

What type of funding is needed to start? Do you need to borrow money for marketing, materials, office supplies? If you do and are going to a lender, you need to have your plan in place first. Work out projections for the first year. What type of operating expenses will you have and what will your projected revenues be? When can you predict your first profit?

If you are serious about making money and having a business rather than just a hobby, you need to have an art business plan. For the legal and financial parts, you should consult with an attorney and an accountant and other professionals who are knowledgeable in the business of art. Take some time to develop a good plan, then implement it. Write out a timetable and revise as needed. Having a business plan is the first step on your way to a solid art business.

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