Free Art Gallery Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this free business plan is to raise $100,000 for the development of an art gallery while showcasing the expected financials and operations over the next three years. The Art Gallery, Inc. (“the Company”) is a New York based corporation that will provide sales of art from established and up and coming artists to customers in its targeted market. The Company was founded in 2008 by John Doe.
1.1 Products and Services
As stated earlier, the Art Gallery is in the business of proving sales of artistic pieces developed by established and new artists. From its retail location and the number of sales shows attended, the Company is able to divest large quantities of in-demand art merchandise to the general public. Management is currently sourcing a number of artists that will show their pieces at the Art Gallery’s location. The business will also develop an online ordering platform so that the business can generate sales on a worldwide basis.The third section of the free business plan will further describe the services offered by the Art Gallery.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This free business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
To provide a platform for new and established artists to promote sales of their art, while concurrently providing the business with a steady stream of revenues and profits which will allow the business to expand to a nationwide level of the next three to five years.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the art brokering industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and art collectors within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Art Gallery, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Art Gallery requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Art Gallery, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Art Gallery. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
The Art Gallery will be actively engaged in the retail sales of artistic pieces including paintings, sculpture, and other eclectic works made by established and up-and-coming artists. Within the Company’s headquarters, the business will sell a number of specialized pieces that generate significant gross margins from each sale. Below is a description of the revenue centers for the Art Gallery.
3.1 Retail Sales of Art
The Company will use a number of sales channels to promote sales of its extensive art inventories. As stated in the executive summary, the business will have a large inventory of art with a roster of well known and new artists that are becoming popular within the art community. The Company will deal in any artist that has the ability to draw an audience. The primary channel for sales is the Company’s location in New York. However, the Company attends a number of off-site art shows and events that allow the business to sell selected and in-demand pieces. The Company will attend trade shows and national level art auctions in all major metropolitan areas.
3.2 Supply Chain Management
The Management of the Company believes that the key to maintaining a successful business operation will be to ensure that clients can easily and quickly place orders for art merchandise over the internet. As stated earlier, the Company will maintain a complex yet simple to use user interface on the Internet so that our customers can order, purchase, and track their art pieces and merchandise while en route to their location. Additionally, the Company will maintain a standard call line on the website to help clients that have ordering issues that require person to person interaction.In this section of the free business plan, you should further describe the products and services that you intend to offer to your customers. If you need to add more product categories, please consult the instructions that were included in the BizPlanDB.com zip file.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the art industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
The direct sale of art in the United States is a $4 billion dollar a year industry that consists of 6,300 companies that operate galleries countrywide. The industry also provides jobs to more than 25,000 Americans and generates annual payrolls of $631 million dollars. The growth of this industry has remained in line with that of the growth of the general economy. The art industry focuses on providing pieces to a predominately upper middle and upper income demographic, which during times of economic recession, have the economic staying power to continue their hobbies including art collection.
4.3 Customer Profile
Art is typically purchased by upper middle and upper income earning individuals that have a taste for original and lithographic art. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the free business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Art Gallery intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Art Gallery
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Establish relationships with art brokers and art collectors within the targeted market.
5.2 Marketing Strategies
The Art Gallery will use a number of high impact marketing strategies that allow the business to make sales of its art inventory to the general public. Primarily, the Company’s sales will be conducted with the gallery’s base of art purchasing clients and through the art events and shows that are regularly attended by Mr. Doe. However, the business will also develop a number of additional marketing strategies that will continually increase the visibility of the business throughout the art community. Timely coverage of the Art Gallery will be further directed through ongoing press relations, news releases and feature stories targeted at key art and art critique communities and other media outlets. Publicity activities will be designed to generate ongoing coverage about the gallery in targeted media by providing writers and editors with newsworthy releases, features, stories, briefs, and visual material for their columns and stories.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the free business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Art Gallery will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Art Gallery’s revenues are sensitive to changes in the general economy. Art pieces are not a necessity, and as such, during times of economic recession, the Company may have issues relating to generating top line income. However, the Art Gallery’s targeted demographics are upper middle and upper income earning individuals who have economic staying power during economic declines.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis