ArtSphere Gallery School of Art (ArtSphere), was established in September of 2012. It had grown from a small back room into a full 787-square-foot facility located at the corner of Main Street, Birmingham, AL. The business has been growing steadily since September but not in a linear fashion. This business plan will help to create a framework that allows for maximum profit potential and growth. The plan’s successful implementation will lead to increasing profits each year by the third-year.
These are the key success factors and crucial factors, ranked in order of importance
- The art lesson market is open to all.
- Completing some alterations to premises.
- Making changes to certain operational or pricing practices.
- The sale of art supplies can bring in additional income.
ArtSphere’s greatest opportunity is to teach art to paid customers. This can only be done by eight people at once. It is important to penetrate the 9 A.M.-3 P.M. market every day. This is the largest portion of ArtSphere’s teaching capacity (61%). This is without doubt the key element for the future growth of profits. The main objective of the project is to gradually increase market penetration from its current almost zero level to 90% full capacity by end of second-year.
Due to the fact that the afternoon market segment (22% of total capacity), is almost fully booked, another objective is to fill out the evening hours (Monday through Wednesday) 7:30 P.M.-9:30 P.M. These eight hours will be easier to fill. This goal must be met by the end of month 5.
Additionally, art supplies should be separated from art lessons to maximize profit.
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.
The ArtSphere aims to provide professional and competent instruction in art within a welcoming environment, while also catering to the needs of diverse target market groups. The ArtSphere tries to cultivate a more personal and longer term relationship with the customer than can be achieved by a typical six 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 has been quoted saying, “In a factory we produce cosmetics, but the product which we sell is called “hope.” ‘”
ArtSphere follows this philosophy. Different buyers will see the product differently. An art school application may require assistance for a serious young student. A 70-year old woman might want to fill her day with fun activities. An executive who is stressed may seek solace and relaxation. You can get encouragement, technical advice, stress relief, loneliness escape, self-expression and other support. The ArtSphere sells many products. Art lessons can be obtained for less than $5.00 an hour through some evening classes at the state college. The ArtSphere can’t compete with these prices. We can only create and maintain high sales levels by creating the “real” product that customers want.
Success keys 1.3
How well the owners can adapt the product to the customers’ needs (emotional and technical) is the most important aspect of success. the customers.
- The limited spaces (maximum of eight) have no shelf life. They can be compared to plane seats. If a 10 o’clock spot is not sold today, it will be gone forever. To avoid no-shows, it is crucial that customers sign up on a monthly basis. Payments must be made in advance. The possibility of changing time slots is still possible. Walk-ins are possible, provided that there is enough inventory. However, these products must be priced at a premium so customers will sign up.
- Like most businesses, it is key to recognize and encourage the “heavy user.” A “heavy user” would be someone happy to work at his easel two to three hours at a time, several times a week.
If, however, an hour art lesson does not come to a signaled end, for example, lights being turned off, then the customer may simply continue working for hours. It is crucial to signal the end of a lesson by collecting student’s canvases so they can be stored for the next lesson. Anyone who wants to enroll for a longer duration need not sign up. Only this way can owners make money from “heavy users”.
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