Creatives and Business is all about helping you build a successful art business, arts or cultural organization or other creative business. I have put together some great resources on this site to help you sell more art, improve membership and attendance, and better manage the business side of things. I invite you to check it out and share with your creative friends. Best of Luck! – Neil McKenzie
One thing most successful businesses have in common is that have a mission that defines why they exist, what they hope to accomplish and how they interact with the world around them. For many companies this mission is distilled down into a statement or series of statements that describes their mission. Many companies have a formal mission statement which they use to guide their overall actions. For other companies their mission statement may be informal and for far too many companies they don’t have a mission statement at all – probably not a great choice!
Creating a mission statement for your art or creative business is one of the most important and perhaps most difficult tasks in developing your business plan. In a sentence or two you describe why your business exists, what you sell and to whom, and should include a bit of your “secret sauce.” In short, your mission statement is what gets you up in the morning! Your mission statement should guide your strategies and everyday actions so that you can achieve your art business goals. Continue reading
Every business needs money to operate and grow and your art business is no exception. It is important that you have a basic understanding of the various ways to finance a business that are available. Most artists start(finance) their businesses with their own or borrowed funds and use the money generated from sales to fund future activities. For some artists these funds are not sufficient to fund their growth plans or other obligations and they need to raise money.
In this article I will explore the common ways to finance a business. You don’t need to go to business school to understand the basics of business financing. Learn the basics and you are well on your way to keeping your art business viable and growing! In a future article I will take a look at other financing methods such as grants, fiscal sponsorship and crowdfunding.
Why you may need financing
Why do I need a business plan?
The main and best reason to develop a business plan is so that you have a blueprint to run and grow your business. Imagine trying to build a house without plan. If you are starting a new art business, a plan will help you organize your thoughts and help you tackle the challenges faced by startup businesses. If your art business is established a plan will help you in building a great team and allow you to focus on your most pressing problems, opportunities and initiatives.
A business plan will also be required if you are seeking some type of financing either from a bank or investors. Your plan will show what you intend to accomplish, how you will do it and how much money will be required. More often than not a business will prepare a plan with the sole purpose of getting financing. Your plan is an important tool in the success of your business and should be much more than a document just to raise money.
One of the most often overlooked benefits of a business plan is that it forces you to think about your business in new ways! The skills you develop in creating a business plan are universal and transferable to businesses of any kind or size. Perhaps one of the most important benefits of preparing a business plan is that you will start to think strategically, look at the big picture and develop a critical way of thinking about your business.