Business Plan Excerpt for an Art Gallery

Business Plan for an Art Gallery

Henry Art Gallery offers the high-quality artwork, particularly sculpture, of prominent South Florida and Latin American artists. The company was founded in January 2007 by Catherine Henry and for the past seven years has been steadily increasing in sales and offerings.

The company garners about $700,000 in sales each year. Henry Art Gallery is looking to increase sales to become a global leader in quality artwork by implementing a company reorganization and a revitalized marketing plan. To accomplish this Henry Art Gallery will be hiring a General Manager, acquire a gallery assistant and partnering with Siren Publications to provide small business writing (blogs, eBooks etc.) for high impact marketing and to develop a marketing plan for the company.

The newly hired General Manager will oversee day-to-day operations, consult with clientele for acquisitions and art brokering in addition to bookkeeping.  As the first duty of the General Manager, they will hire a Gallery assistant to scout for new talent and to aggressively market the Gallery as an international leader for both figurative and abstract sculpture.

Catherine Henry, the owner and namesake of the gallery, is an artist herself who focuses upon figurative sculpture through the medium of wood implementing the technique of subtractive woodcarving. The owner uses her reputation for the recruitment of world-class artistic cohorts. With the daily operations handled by the General Manger and business writings produced by Maureen Castellon of Siren Publications, Ms. Henry will be able to focus primarily on targeting established and advancing artists to add to the roster of works available to commission works from said artists. Catherine Henry will specialize in this area with the goal to add one commercially viable artist per quarter. Established and newly acquired artists will be featured on the company website, which will be maintained by the Gallery assistant.

The General Manager will host and curate the company website for its evolution to being the premier art gallery, specializing in sculpture on the web with the capacity to conduct e-Commerce. Newly acquired artists will pay a setup fee to be hosted on the site and will also have a commission fee deducted from their transactions from the site. New works by artists on the website will not be charged again for the setup fee as a measure to ensure continued patronage of the website.  Artists will be required to create a hyperlink, if not already available, to be presented on the site and to also cross-reference Henry Art Gallery on their personal site.

Henry Art Gallery has expanded its operations since starting seven years ago in an efficiency located in Kendall, Florida to its current located in the design district of Wynwood, which provides 6,000 square feet for display and three office spaces.  The company has recently renewed its lease with Prime Space Realty for an additional five years. In addition, Henry Art Gallery has acquired a contract with Russian artist Miko Brakisov to be the exclusive purveyor of his much sought after works. This partnership has the potential to bring in a more international audience and $20, 000 in commission.

The company has done little to no advertising as it has relied on positive word of mouth marketing and the strength of Catherine Henry’s reputation in the art world to promote the Gallery’s capabilities. However, in order to ensure future success, the time has come to establish consistent social media and to develop further the company website. The company is seeking $90, 000 in funding to promote the next level of service in offerings and production. This will enable sales to be moved up to $900, 000 within two years and $1.1 million within three years.

Both equity and debt funding will be entertained with terms to be determined by both parties. Funding will be used to hire a General Manager, Gallery assistant and to commission content from Siren Publications in addition to upgrading our website.

1.1    Objectives

  1. Hire a General Manager to oversee daily operations and to acquire a competent Gallery assistant.
  2. Develop a network of 500 marketable artists during 2015.
  3. Revamp website to include e-Commerce and social media outlets by the second month of 2015.
  4. Contract content from Siren Publications.
  5. Raise an additional $100,000 for the company through website sales by June 2015.

1.2    Mission

Henry Art Gallery offers carefully curated world class art, specializing in sculpture to the world via their website. We provide attentive service to established clientele and prospective buyers equally through means of consulting, acquisition or appraisals. Henry Art Gallery is known for the great value of their pieces and timely customer service.

1.3    Keys to Success

The keys to success for this business rest on Catherine Henry’s reputation as an artist and leveraging that to establish/maintain relationships with dealers, other galleries and particularly artists. High-quality customer service continues to be a touchstone at Henry Art Gallery.

2.0 COMPANY SUMMARY

Started in 2007, Henry Art Gallery has name recognition amongst artists, brokers and other galleries for providing excellent customer service alongside high-quality artwork. Revenue for the past four years has demonstrated a steady growth curve. Revenue streams for the 2010- 2014 have been as follows: 2010-$189, 500; 2011-$215,000; 2012-$235, 000; 2013- $180,890; 2014 -$ 247,514. Gross margins for the same operating period are as follows- 2010-61.8 percent; 2011-59.9 percent 2012-65.2 percent;  2013-50 percent and 2014-59 percent.

The calculations for 2013 illustrate a dip in Henry Art Gallery revenue stream; however, the gross margins show there an increase in gross margins from the year before.  We expect revenue and profitability to increase with additional capital and the new marketing campaign designed by Siren Publications.

2.1 Company Ownership

Henry Art Gallery is a limited liability company incorporated in the state of Florida. Majority ownership is by Catherine Henry with 95% and  5% of a silent partner, Breege Henry.  Breege Henry does not participate in the management of the company.

2.2 Company Location and Facility

Henry Art Gallery is located at 1313 Mockingbird Lane in Miami, FL in a 6,000 square feet building with provides three office spaces, a display area, storage and delivery areas. Henry Art Gallery currently leases the space and does not own the building.

3.0 PRODUCTS and SERVICES

Henry Art Gallery provides high-quality art with an emphasis on sculpture. Henry Art Gallery displays work from over 20 different international artists with Miko Brakisov as the resident artist for the next three months. Henry Art Gallery has the USP of a renowned artist at the helm of the company ensuring artists are paid fairly and clients received high-quality artwork.

Henry Art Gallery contributes greatly to the Miami art scene. Its reputation for excellent customer service is well-deserved as Catherine Henry assists private clientele, corporations and museums with the acquisition or sale of art, particularly sculpture pieces. The company presents each month, a group or solo exhibition and carefully curates a catalog of the sculpture artists in the South Florida area.

3.1 Competitive Comparison

The competition of Henry Art Gallery has been other galleries in the Wynwood Art District. Four other galleries specialize in sculpture. While they are excellent galleries, none are run by a commercially viable artist. The prime competitors are listed below:

Haciendas Sculpture Garden

12525 North Miami Avenue

Miami, FL 33127

Frisk Fine Art Studio

8701 North Miami Avenue

Miami, FL 33127

Blue Bead Gallery

5341 North Miami Avenue

Miami, FL 33127

Rebel Heart Studio

234 North Miami Avenue

Miami, FL 33127

3.2 Sales Literature

The Company is presently cataloging established and new artists not only for the website, but also in paper form to distribute to the 700 members only mailing list. In the future, this catalog will be updated  and available by request only.

4.0 MARKET ANALYSIS SUMMARY

Sculpture is a specialized area of creative mastery that Catherine Henry has dedicated her life to in full. As a viable commercial artist Catherine Henry’s art has been sold all over the world. Her work is a favorite of both collectors and was featured in galleries worldwide before she opened her gallery in Miami. While each artist is unique and valuable in his or her right, Catherine Henry is a prominent artist both creatively and commercially.

4.1 Market Segmentation

Numbers withheld for privacy purposes.

4.2 Target Market Segment Strategy

Our target market is quite focused. Henry Art Gallery offers high-quality artwork to a network of private clientele, dealers and patrons throughout the world.

4.3 Industry Analysis

Private sales of artworks in America is a $4 billion dollar a year industry consists of 6,300 companies that operate galleries countrywide. This creative industry currently provides jobs to more than 25,000 Americans, generating annual payrolls of in the ballpark figure of $631 million dollars. Industry growth coincides with the parallel growth of the economy. Patrons are upper middle-class and above socioeconomic statuses and Wealthy patrons from South America, particularly Venezuela.  Downturns in the economy do not effect this demographic or their hobby of art collection.

5.0 Strategy and Implementation Summary

The primary strategy for Henry Art Gallery is to build upon artist and dealer relationships to target the website offerings. As the Company continues to hold market share in South Florida’s creative collections, product movement will only continue to increase.

5.1 Competitive Edge

As a leading art gallery in South Florida, Henry Art Gallery offers quite a few competitive edges

  • In house talent. Henry is a prominent artist in the local and global art community. Her talent and position in the art world make her a trusted source for both artists and dealers.
  • Premium Quality. Henry Art Gallery’s strong reputation is built upon premium quality.
  • Henry Art Gallery provides customized service for both clients and artists.
  • Competitive Pricing. The Company offers competitive rates for the quality and service provided.

5.2 Milestones

Withheld for privacy issues.

6.0 Management Summary

Catherine Henry has twenty years’ experience in the art field and seven years  as a gallery owner. She is capable of consistent expansion while maintain artist/dealer relationships.

6.1 Organizational Structure

Catherine Henry is the president, primary resident artist and director of operations. Breege Henry is a silent partner and only appears during the Wynwood art walks.

6.2 Personnel Plan

The company is evolving towards a well-rounded and competent staff as illustrated in the following table:

Withheld for privacy purposes.

6.3 Management Team

Education: Yale School of Art: Sculpture

Catherine Henry was born in County Mayo Ireland and raised in Miami, FL. She spent her childhood admiring Rodin and Etruscan funerary art. She was accepted early admission to the Yale School of Art. Her work focuses upon figurative sculpture through the medium of wood implementing the technique of subtractive woodcarving.

Henry loves taking discarded tree stumps and turning them into works with highly creative elements.

Selected Exhibitions, Honors, and Awards:

2014 Prix de Arbole Award, National Forestry Group, Bangor, Maine

2011 Solo Exhibit L’Orangerie, Paris, France

2010 Solo Exhibit Rodin Musee, Paris, France

2009 National Academy of Sculptural Art, Miami, Florida Gold Medal Award

2008 National Academy of Sculptural Art, Miami, Florida Gold Medal Award

2008 DeMont Award for Structural Excellence

2007 Solo Exhibit, New York Sculpture Museum, New York, New York

2006 Fritz Gallery, Austin

2005 Museum of Sculpture, Santa Fe

2004 Mary Todd Museum, North Field, Montana

2002 Ridgemont Award for Excellence

 

Public and Private Collections:

The White House, Washington, D.C.

Weisbaden Collection, Weisbaden, Germany

Buckler Museum, Tuscaloosa, Alabama

Los Angeles Botanical Garden, Los Angeles, California

Lauren Bacall, New York, New York

Hunter W. Thompson, Los Angeles, California

Doven International, Piedmont, Texas

 

Commissions:

Broken Tree Museum Sydney, Australia

Slefloss International Hotel, Slefloss, Iceland

Indigo Pearl, Phuket, Thailand

 

Films:

Siren of the Woods, Zen Films Inc.

 

Bibliography

2013 Chainsaw Magazine, Spring

2011 Art Worthy of Investing, Investing Digest

2009 Tribal Art Digest, Commemorative Edition

2007 Miami New Times, Best of Issue

2005 Santa Fe Digest, March

2003 Outdoor Art, May

2003 Miami Art News, Summer

2001 Polenko Magazine, Winter

2000 Wooden Art, July/August

1998 Art of Trees Digest, January

1996 Top Thirty Sculptures Under Thirty, Sculpture Digest

 

Gallery Representations

Weisbaden Galleries, Weisbaden, Germany

Lavender Gallery, London, England

Diamond Gallery, Bakersfield, California

Gulnar Gallery, Mumbai, India

 

6.4 Management Team Gaps

Catherine Henry and Henry Art Gallery seek to add to the management team by employing a General Manager and a Gallery assistant. The Company seeks to hire personnel with a background in art and finance. Capital funding is required to close the gap and implement change.

7.0 Financial Plan

In order to gain capital seven key factors will be improved immediately:

  1. We will target existing customers and market the Gallery website and catalog.
  2. Our goal is to elevate the gross margin to 81 percent and the net profit margin to 2.1 percent by the 2015 fiscal year. Gross margin is expected to remain steady for the next five years at 76 percent. Net profit margins are expected to rise to 9.3 percent in the 2016 and 2017 fiscal years.
  3. Henry Art Gallery aspires to borrow $90,000 in capital funding.

7.1 Key Assumptions

The success of the Henry Art Gallery financial plan depends on key assumptions shown in the table below. The key assumptions are as follows: There will be no economic downturns and the economy will stay more or less as is. We assume there will be no major weather events such as hurricanes. We assume funding will be acquired and the selection process of a competent General Manager and Assistant will take no longer than three months.

Table of General Assumptions

 

 

 

 

 

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