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 grown substantially, but in an unordered way. This business plan is being written to set a rational framework forgrowth to maximize profit potential. Successful realization of this plan will produce increasing profits annually by the end of the third year.
Keys to success and critical factors are, in order of importance:
* Penetration into the day-time market for art lessons.
* Completing some alterations to premises.
* Making changes to certain operational and pricing practices.
* Makingsale of art supplies an additional profit source.
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The greatest opportunity for the ArtSphere is through the teaching of art to paying customers. The capacity to do this is limited in size to approximately eight persons at one time. Themost important objective is to successfully penetrate the 9 A.M. to 3 P.M. day-time market. This is the largest portion of ArtSphere's teaching capacity (61%). This offers without any doubt the most important element in the future development of profits. The prime objective is to gradually increase penetration of this market sector from its present near zero level to 90% of full capacity by theend of second year.
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 easier 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 suppliesa separate profit center.
A final objective is to maintain the present level of portrait work, produced under contract by clients, as well as maintain the historical level of sales of art work created by the owners of ArtSphere prior to the recent mushrooming of art instruction.
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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 tries to cultivate a more personal and longer term relationship with the customer than can be achieved by a typicalsix session generic art course taught at Bessemer State College. The ArtSphere recognizes that the real product it sells is different from the art instruction given. Helena Rubenstein is quoted as saying, "in the factory we manufacture cosmetics, but the product we sell is called 'hope.'"
This thinking holds true at the ArtSphere. The product sold is viewed differently by different buyers. Aserious young student with potential may need special help in compiling his portfolio when applying to art school. A retired 70 year-old woman may be seeking a fun way to fill up an otherwise empty day. A stress-ridden executive may be seeking solace and relaxation. Encouragement, technical advice, stress-relief, escape from loneliness, self-expression, etc. are just some of the products sold by theArtSphere. The owners of the ArtSphere recognize that art lessons can be had at less than $5.00/hour in some state college evening courses. The ArtSphere cannot attempt to compete with these prices. It is only by tailoring the "real" product sought by customers that we will create and maintain a high level of sales.
1.3 Keys to Success
The most important element to success is how skillfully...