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Business plan seeking funding, If you or someone you know is in investing or have any questions; Please contact me directly!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of contents

Part 1. The Business Environment

·Business Name

·Describe the owners experience?

·Description of Business

·Company Advantages

·Business Environment

 

Part 2. The Business

·Form of Business Ownership

·Vision Statement

·Mission Statement

·Ethical Values and Social Responsibility

·Business Goal

·Management

 

Part 3. Market Research and Market Differentiation

·Industry Description

·Competition Description

·Ideal Customer

·Company Strengths and Weaknesses (SWOT Analysis)

·Planned Responses to external threats

 

Part 4. The Marketing Mix and Marketing Strategy

·Product Features and Benefits

·Product Differentiation

·Pricing Strategy

·What is the return on investment? When will we break even?

·What is the total amount of loan money needed and how will that funding be utilized?

·Advertising/Promotions

 

Part 5. Financial Assumptions

·Startup Costs as well as some monthly costs

·Financing

·Expected Revenue

·Operating Expenses (Cost of Doing Business)

 

Part 6. Executive Summary

Key points of plan

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Part 1. The Business Environment

Business Name:

Bombshell’s Basement

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Describe the owners experience?

Born and raised in New Jersey, Niki has always had a creative eye. Since moving to Philadelphia 20 years ago; Miss Bombshell has become a bit of a Jacqueline of all trades when it comes to the art world. Niki started her art career in the Philadelphia underground at the early age of nineteen, taken under the wing of a graffiti artist that will remain nameless, giving Niki gigs painting live at bars, warehouse parties, and underground art themed raves. Since spending several years at Moore College of Art and Design to fine tune her craft and learn a few new ones, she took the fine arts route with her career for a few years. Niki then trained to become a curator at a Moore College of Art and Design. Graduating in 2015 she learned the ins and outs of how a gallery works, as well as the chaos behind it all that few people see. Niki’s last noted accomplishment was running an independent art studio from her finished basement.

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I really have a knack for helping creative people, and for helping people be creative. I love to help people by being the one behind the scenes keeping the administrative tools in order that organize an entire project from the beginning to its successful end. I can do this in various venues; from galleries, to auction houses, to sales, to nonprofits. I have a well-rounded background in Arts administration and refined talents in customer service and curatorial research and development. Additionally, I am a proven expert in communication and a consistent collaborator. My previous and varied creative roles have strengthened my abilities in organization and problem-solving, including a focused attention to detail and accuracy.

 

Description of Business

The Basement exists to support artists at both ends of the process, the creation, and the display. This multifunctional creative space will host small shareable studios for a low monthly fee. As well as retail and event space for local artists and crafters. This studio space is being created to support artists in the area that are not being seen by the larger organizations but still carry just as much creative merit as anyone else. Our Gallery space will only take 30% of sales for artists that do not use our rented studio spaces and 20% for those who do. The industry standard is 40% to 60%. We can supplement the loss of art sales percentage with art studio rentals, retail sales, and event fees.

 

Company Advantages

The Basement will offer Philadelphia a new way to support the creative community. With a rotating shared studio-concept we can have more artists get the help they need to work on their craft. By sharing a small space with different artists at separate times we can offer a lower cost and a new an interesting way to build a close-knit support network. This will put us a step above the other organizations because we could house several artists that may not be able to afford other opportunities. This also will give these young creatives a chance to have and host professional showings and even eventually teach classes.

 

Business Environment

This environment uses a communal setting to encourage innovation and experimentation. Artists often tend to thrive in more flexible settings. This concept encourages the freedom to create and share when one feels comfortable. I feel this incubates expression which in turn supports more quality work. Quality work is equal to sellable work. Supporting ideas supports the business.

 

Part 2. The Business

Form of Business Ownership

This Business is a sole proprietorship

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Vision Statement

Creating an affordable space for artists of various phases in their career to create, network and grow as well as display works at a professional level.

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Mission Statement

We promise to uplift the creative community of Philadelphia by giving artists of various walks a chance to work without the financial constraints of larger studio spaces through creating a rotating shared system that lets artists decide to work either alone or communally, if they so choose. Creating a close-knit community of supportive artisans that can host openings, events, and classes for the general-public.

 

Ethical Values and Social Responsibility

Our organization wants both our artists and patrons to do well with their investment, because that’s what great art is: an investment. Therefore, we will not sell work over $5,000. We want to stay in the range accessibility for all patrons and we want the artist to able move work with ease.

We want the patron the feel confident with their purchase therefore we will offer insurance through our gallery on work over $1,000.

We want to support a green lifestyle wherever possible. The Basement will be using reusable and recyclable products whenever we can.

 

Business Goal

Our initial goal is to make enough income from studio rentals and events to cover our basic costs. From there our next goal is to use the pool of artists we have on hand renting the spaces to create a campaign for local artists to sell their work to patrons in the area. And lastly, we will set up a series of events and classes to enrich the community and supplement any other needed income for the studio.

In the Intermediate future, we would like to create/enhance our internet presence; have the funding to bring in web designers and social media coordinators to make sure we are seen in the digital landscape.

For the long term, we would like to collaborate with other arts spaces in the area and then eventually travel to other similar spaces and events in other cities in order the gain recognition and obtain grants and funding on a higher level.

 

Management

Initially, the owner will be handling all the responsibilities. Once established, we will bring in interns to help with administrative and event-based tasks. All artists involved will the studio rentals will be responsible for clean-up and upkeep of the space they used. This eliminates the need for a paid studio assistant.

 

Part 3. Market Research and Market Differentiation

Industry Description

This studio blurs the line between a service-based space and a retail environment by offering studio rental and event space as well as a sales venue for art being shown in the gallery. They support both these aspects of the commercial arts industry simultaneously. With fine arts taking a financial hit due to covid and trends often turning towards the performing arts and media, it is important to have multiple streams of revenue in place to act as a safety net. The basements’ unique multi-artist concept will help rebuild the community from the inside starting with Philadelphia’s younger generation of emerging artists. They need the most help and give the most back via social media and word of mouth.

 

Competition Description

The competition in the area is either small gallery owners or large studio-based organizations. There are very few spaces the teeter the middle and offer both. This way we can offer the intimacy of a small gallery and many of the services of the larger institutions. The art spaces in the Queens Village neighborhood of Philadelphia carry a very close-knit relationship with the locals but often have issues making ends meet financial because when the same people continue to show for events by the same few neighborhood artists’ they eventually stop buying work. Having artists show work in the gallery from many areas of Philadelphia can remedy this by bringing in variety of creatives and patrons during events and keeping events and studio space rentals local to the neighborhood will make sure we still give back to a community that does show up and support, even if they do not buy something.

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Ideal Customer

My target demographic for the gallery portion of the space will be people of influence aging thirty and up. People with their finger on the pulse what is new and interesting creatively who have disposable income and a philanthropic spirit. The studio space is for a younger demographic who need a low-cost space to create and build a name for themselves. During gallery events these two different demographics can network and discuss ways to bridge gaps while in various stages of their careers.

 

Company Strengths and Weaknesses (SWOT Analysis)

Strengths:

- Owner is knowledgeable in most aspects of the arts industry from making art, to administrative, curatorial, and sales due to educational and professional experience equaling a total of twenty plus years.

- Shared studio concept is very flexible. It creates a cost-effective source for someone who needs a short-term space to complete projects.

- Gallery concept can also act as traditional retail space for local artisans in between shows. This idea has multiple streams of revenue.

Weaknesses:

- Convincing artists that sharing a regular workspace is an innovative idea could take some work. There will be a certain community mindset and type of work that will need to be considered.

- Installing proper ventilation (If needed and depending on the location) could be costly

- It may be necessary to have a savings cushion for months when art sales are slow.

Opportunities:

- An attractive storefront in the Bella Vista area will always have art conscious walk-ins and passers-by. This means that there will always be opportunities for sales, advertising, and networking.

- Being near South Street and Passyunk Square means lots of opportunities for trade amongst businesses for example: food, liquor, and entertainment opportunities. Trading advertising opportunities with other businesses expands our customer base.

Threats:

- The neighborhood I would like to set up in is considered an "Artsy" neighborhood, which means that there could be a lot of competition when it comes to gallery space and could hinder the possibility of teaching classes.

- I will have no issue finding art patrons in this area but I may have a challenging time finding artists looking to rent studio space in Bella Vista. The artists here may already have spaces elsewhere, so I may have to find artists from other areas willing to travel.

 

Planned Responses to external threats

I am going to take a “If you can’t beat them, join them” approach to handling the amount of competition in the neighborhood. I think it is better to collaborate on events and showings as well create a “First Friday” just for the Bella Vista area. What we will have that the other spaces would not have a more accessible version of their concepts. Our gallery will be local and priced so that more people can afford to invest in art and support a community with Gallery maximum of $5,000 and a retail sales maximum of $100 per unit. Accessibility is key in this concept, for the artists and the patrons.

 

Part 4. The Marketing Mix and Marketing Strategy

Product Features and Benefits

This space is all about artistic accessibility. At our core we are a studio space created for artists that are emerging in their careers. They are starting to gain recognition but still need help affording a space to work and learning how to network with potential patrons. The concept of sharing a space amongst peers in the same stage of their careers is not only to let these makers hone their craft on their own terms but can also work together to bounce ideas off each other, creating a collective.

The connected retail/gallery space is open to artists in the collective as well as outside artists who submit works for display. The open floor plan of the art gallery will also allot for events such as classes and networking mixers.

 

Product Differentiation

Having a rotating shared space with the same accessibility as an individual studio is different than spaces that may either restrict your work hours and amenities when multiple artist renters are involved. Or they may have to deal with inflated costs and unideal conditions for the possibility of an individual space. Our space is about community and learning how to navigate the market with the help of one’s peers.

Pricing Strategy

Studio rental - $250 a month with maximum rental occupancy of 6 to 8 artisans depending on size of location.

Gallery/art sales commission – 30% no upfront fees

Gallery/retail sales commission -15% no upfront fees

Event space rental fee - $150 an hour, reducing to $100 an hour for events lasting longer than 5 hours.

Gallery rental fee for hosting classes – 50% of the class fee or $50 flat fee with a 2-hour maximum

 

When will we break even?

With an early influx of events and classes, I would expect to break even after 1 year.

 

What is the total amount of loan money needed and how will that funding be utilized?

$25,000 will be needed to initially open. This includes finding a space and covering the opening costs, construction/renovations, art, and construction supplies, creating a web presence, and marketing costs.

 

Advertising/Promotions

Advertising techniques will initially be very social media heavy with a focus on Instagram and local Facebook groups. We will also utilize the competition by creating a word-of-mouth marketing campaign to align all the galleries and art spaces in the area. Utilizing both these demographics will create an incubator for a strong local network, ensuring that future events at the space will continue to be successful.

 

Part 5. Financial Assumptions

(Costs are currently estimated)

 

Startup Costs as well as some monthly costs

First/last/security for brick and mortar- $2,500 x 3 = $7,500

Maintenance supplies/Construction costs -$2,000 - $5,000

Moveable walls

Drywall

Flooring

Shelving/storage

Paint

Spackle

Spackle supplies

Tools/hardware

Utility sink

Daylight lamps

Proper Ventilation

Construction/renovations

lighting

 

Art supplies – $1,000

Stand up easels.

Tables/desks

Drying racks -

 

Web presence/design/internet presence for 2 to 3 months - $2000

 

Utilities for 3 months – $1,500

Electricity

Water

Insurance

Internet

 

Entertaining costs – $500

Food

Wine

Mini fridge

Music

 

Estimated total of upfront costs to open – between $15,000 and $25,000

 

Financing

I plan to finance the opening of this space several ways:

Using $5,000 from my own savings

Crowdsourcing from sites like Indiegogo and Patreon (Crowding funding links -Help Bombshell's Basement find a home! | Indiegogo , Bombshell's Basement is creating A studio/gallery space | Patreon)

Fundraiser – I would like to host a fundraiser at an upscale restaurant or event space within the next 2 to 3 months. Theme event with colorful cocktails and hors d’oeuvres, music/entertainment. A means to get the word out to the right people distribute the crowdfunding links everywhere we can. I would like to start planning this ASAP.

Find angel investors.

General donations from friends and family

And finally, a bank loan for the remainder of the costs

 

Operating Expenses (Cost of Doing Business)

The costs stated above are for the initial opening and start up, as well as about 2 months of operation costs. I suspect that after those initial costs will be cut in half but vary based on the season and number of events.

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Hints for certain expenses:

Rent: $1500 - $2500

Salaries and Wages: I would ideally like my salary to be $50,000, but since it is just myself, I am willing to not take a salary right away if it means we break even in our first year.

Advertising and Other Promotions: $500 - $1000

Utilities: $300 - $500 monthly

Insurance: $50 - $100 monthly

 

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Part 6. Executive Summary

Briefly describe the key points of the business plan.

• The name of the business is Bombshell’s Basement

• It will be located in Queen Village Philadelphia

• Our main purpose is to bring together emerging artists and established patrons to bridge a gap and create more accessibility.

• We will offer studio space, events, classes, artwork, artisan crafts

• This space is for artists and art appreciators from all aspects of the industry who want a cost-effective place to create and inspire.

• Our business is different because we are looking to create a larger community in the section of the city that has a large art presence somehow still feels very divided.

• Nicole DelRossi is the sole owner of the business.