CHAPTER 1
STARTING THE COMPANY:
Where does the money come from?
Many arts entertainmentgroups never get started because the necessaryresources seem impossible to find. The goodnews is that there are several sources that may betapped to get your organization going! Who arethey and where can you find them?
1. Arts Funding groups exist in nearly everycommunity or in larger nearby cities.Call your City Hall or town office formore advice.
2. The Chamber of Commerce oftenmakes dollars available to small start-upcompanies. They are listed in your localtelephone directory.
3. Small Business Associations offer not onlystart up dollars but also offer support inmanagement, finance and co-operativepartnerships. Again, consult thetelephone directory or contact localgovernment offices and Chambersof Commerce.
4. Foundations and grants are available frommany sources nationwide. Get your handson The Foundation Directory, sure to be inmost public libraries. The Directory listsseveral thousand Donor Groups andFoundations. Grants are categorized byfield of interest, geographic location andsupply names to contact and rules forapplying. Millions of dollars are waitingto be given to resourceful arts andentertainment entrepreneurs.
5. National dance, music, theatre andcomedy clubs in major cities such as NewYork, Chicago and Los Angeles look tobuild similar companies in other cities.They offer working capital or matchingfunds to help replicate their success.Start-up companies are usually managedand directed by a "pro" in the businesswho will help train, organize and managea new company. Newcomers get towork, earn money and get in on themanagement ground floor. Be on thelookout for opportunities listed intheatrical weeklies such as Variety, TheSunday New York Times and variousArts Magazines.
6. Banks make small business loans availableto groups who show genuine potentialfor success. Call them.
7. Local businesses donate lumber, paintand sound equipment. This reducesthe amount of up front money youneed to get started. Call businesses insurrounding communities, who mayhelp partner your success.
In the words of Irma Mann, "Start with a freshidea. Tell people about it. Enthusiasm iscontagious. The dollars will always come fromsomewhere."
Approach friends. Make calls. Write letters.Get the "buzz" started. Find a friend with acomputer. Ask if they can design some brochuresfor you with a simple logo at the top. Pass theseout at church. At work. To local merchants.Actively seek advice and information. This is"networking." Ask each person you talk with fortwo more names of people who may be able tohelp. This is "lead generation." You'll be usingprecisely the same technique later in buildingyour audience.
Once the momentum starts, you will besurprised at the number of people who will be putin your path. Many of these people may also turnout to be your first customers. It all starts with anidea, hope, enthusiasm and investigation.
Terms you should know:
Lead generation - getting names andaddresses of individuals and organizations whocan help
Logo - a symbol and identifying your company
Networking - contacting people who maybe able to help and asking them for names ofmore people
Tagline - a defining line which is often usedtogether with a logo
CHAPTER 2
LOCATING YOUR BUSINESS.
Deciding where to locate yourbusiness is probably the most important andexpensive decision you will have to make. Amongthe key factors on which you should plan carefullyare the following:
1. What size building or officespace do you need?
2. What location should you be in?
3. What price can you affordto pay?
4. What lease conditions shouldyou look for?
5. How often will you use it?
6. Can space be shared withanother company at areduced cost?
Commercial space is sold by the square foot.A 1,000 square foot office with an asking price of$17 per square foot will cost you $17,000 for theyear or $1416 per month. This may or may notinclude costs of utilities, water, taxes or insurance.Generally speaking, there are certain areas of thecity where theatre, art galleries, dance companiesare located. Being in that area will enhanceyour chances for success, but may also drivecosts of location up considerably. You mighteven consider a location near that favored areabut a block or two away. For sure, it will beless expensive.
Real estate opportunities fall into twocategories: "raw space" and "turnkey operations."
Raw space means you're just renting thearea itself. Any improvements, painting, airconditioning, seating is your expense, andbelongs to the landlord when you decide toleave. A turnkey operation, such as a theatre,means everything is alreadycondition,however, bearscareful inspection.
Many landlords or real estate firms will allowyou several months free rent until you get yourbusiness rolling. This is called "start-up" time.Others will rent space after usual working hours atminimal or no cost!
The key here is in doing your homework.How is the neighborhood? What businesses arenearby? Is the area safe? Is there adequateparking? Getting this information is a matter oflegwork and asking experienced, knowledgeablepeople already active in the business. Mostsuccessful companies and their managers will beglad to share information with you, if you presentyourself professionally, ask for an appointment,have your questions prepared in advance andmake yourself available at their schedule.
Sharing space is probably one of the bestideas for startup groups. A drama company, adance company, a music company may all use thesame space at different times. This will help reducerental and overhead costs by as much as two thirdsand provide continuous activity and awareness ofthe site and its offerings.
Terms you should know:
Raw space - commercial property to which noimprovements have been made.
Start-up time - a period of free rentoffered by some Realtors to let the companyget underway.
Turnkey operation - commercialspace that is decorated and furnished withthe necessary elements already in place forimmediate occupancy.
CHAPTER 3
GETTING ORGANIZED.
Every group needs a basic organizationwith roles assigned to specific people withappropriate experience, talent and interest. Noone is good at everything! As you prepare to startyour company, there are certain key roles that mustbe filled.
1. President: This person may be calledthe CEO (Chief Executive Officer), theCOO (Chief Operating Officer) orsimply The Boss. Whoever that person is,he or she needs the ability to organize,lead, inspire, manage, generate confidencein others and generate funds.
2. The Artistic Director: This person has anunderstanding for the arts, the capacity forseeing potential artistry in others and be ajudge of character and artistic material.The Artistic Director has the ability tocreate the best possible artistic orentertainment outcome.
3. The Financial Officer: This is the personresponsible for the dollars and cents of theoperation. Bringing realism to the venture,making sure ambition is backed bycommon sense practicality, setting outeconomic guidelines, limits to spending,cash flow and the dollars which need tobe generated from every performance orevent. The Financial Officer is every bit asimportant as the President or ArtisticDirector and works closely with both ofthese senior executives.
4. The Manager: This person hasday-to-day responsibility of insuring thatthe organization operates as a business.He or she sets and meets deadlines, hiresthe appropriate staff and works behind thescenes to allow creative people freedomto concentrate on artistic concerns.Responsibilities may also include sales andsales personnel, in which case, the personis generally called 'The Sales Manager."
5. The Advertising/Promotion Manager:This is the person who gets the word outto newspapers, magazines, and thegeneral public. Their job is to buildexcitement, attract attention, get word ofmouth going and help generate interest inthe initial offering.
Most advertising agencies donate a portion oftheir services to what they designate to be "goodcauses." If you can convince an agency thatyour organization is worthwhile enough, theagency will donate their creative services and onlybe reimbursed for their out-of-pocket expenses.This is called "pro bono" work or literally "workingfor the good of."
Agencies are organized in thefollowing structure:
The Account Supervisor oversees the entirecreative product.
The Account Executive schedules, time,people and materials. He or she is the client'srepresentative inside the agency.
The Copy Writer and Art Director create theadvertising ideas and graphics.
The Production Department is responsible forgetting those ideas translated into television orprint at an affordable cost.
The Media Buyer will select and place mediain the right newspapers and magazines, or onradio or television stations that attract theaudience you are trying to reach.
Successful arts and entertainment marketing isa group effort. Keeping people focused on whatmust be accomplished in the time allocated andwithin the budget designated, is a major task. But,the ultimate measurement of success is how wellthe marketing and advertising programs worked.
Terms you should know:
Account manager - client representativeworking inside an advertising agency.
Advertising agency - a company that createswords and pictures and distributes them to helpsell another company's products and services.
Advertising/promotion manager - personresponsible for generating public interest inwhat the company has to sell.
Art director - person responsible for creatingpictures, symbols and graphics and to create"a look" for the advertising.
Artistic director - person responsible forfinding talent, mounting shows and exhibitions,approving broadcast communications and printads which maintain quality standards of thecreative product.
Chief executive officer - personresponsible for the business management andsuccess of a company.
Chief financial officer - person responsiblefor seeing that the company makes more moneythan it spends.
Copywriter - person responsible for creatingwords to sell a product.
Manager - person concerned with overseeingthe day-to-day activities, organizing and staffing ofa company.
Media buyer- person who places ads inmagazines, newspapers, on radio and television.
President - person in charge of overalldirection, planning and results.
Production Manager - person responsiblefor turning ideas into ads, brochures andtradeshow booths.
Pro-bono - any group or person whocontributes their services free for the public good.
CHAPTER 4
WHAT IS "MARKETING?"
Marketing is the promotionof an event, product or service to a particulargroup of people who have indicated a need ordesire for it, and have the necessary dollars to payfor its delivery. Mass marketers deal in volumewith a general audience because their products orservices are intimately connected with survival orcomfort. Arts and entertainment marketers are notoffering a necessity of life, but rather fill a "socalled" secondary need for diversion, socializationand self improvement. Realistically, arts andentertainment are specific offerings for aspecialized audience. This is sometimes called a"niche market." Special attention must be paid towhat these customers believe to be of value forthem. They seek you out, and show you muchthey are willing to pay for the program.
A critical mistake many groups make, who arejust starting in arts and entertainment, is to think thatquality alone attracts an audience and provides asatisfying experience. Some members of theaudience do come specifically for the performanceitself. Others see the event as a chance forsocialization or networking. Finding out what eachelement of the audience specifically hopes to gainfrom their involvement with you, is really the keyto successful marketing.
Generally speaking, most arts andentertainment companies first try and attractaudiences who have a genuine love for thepresentation itself. This audience will never belarger than about 20% of the general population.This 20%, however, will usually generate 80% ofthe company's business! They are known as the"core" audience and are critical for the companiessuccess and survival. A secondary audience,usually called "sometimers," or "possibles" arepeople who are looking only for a night out, someplace to go, something to do. Immediate ability topurchase tickets, convenient location and overallpopularity of the event are generally what attractsand satisfies this group.
Marketing then,is a four step process:
1. Identifying your potential audience.
2. Discovering their size, how much they areable and willing to spend, devising anoffering that is attractive to them on anongoing basis and affordable for youto produce.
3. Attracting them to you by advertising,promotion, displays, personalcorrespondence or face to face selling.
4. Building a long-term relationship witha portion of the audience by givingthem special attention and inviting themto participate in the company'songoing success.
Terms you should know:
Arts - books, dance, music, opera paintings andtheatre that have stood the test of time.
Entertainment - popular diversions, nightclubs, movies, rock concerts, television, theatremeant to provide amusement, pleasure and anopportunity to socialize.
Marketing - the successful match-up of acompany with something to sell with an audiencethat is interested in buying.
Market - a group interested in buying what youhave to sell.
Marketplace - the real world wherecompanies with similar offerings compete foraudience dollars and attention.
Mass marketers - companies who promoteproducts in which most people are interested, andwho deal in volume communication to as manylocations as possible
Niche marketers - companies with anoffering designed to be sold to a limited audience.
Satisfaction level - matching audienceexpectation with performance, assuring theaudience you offer valué on their terms.
CHAPTER 5
HOW ARTS ANDENTERTAINMENT WORKAT THE LOCAL LEVEL.
Arts and Entertainment groupsat the local level face unique problems:
1. The size of the audience is limited
2. Repeat audiences are necessary for thesurvival of the company
3. Budgets for the company are usually tight
4. Local companies still face the ongoingcompetition of major Broadway shows,rock concerts, television and movies
5. Time frames for presentation are short
Success at the local level demands thatarts and entertainment marketers work moreimaginatively, use less frequently consideredmediums for publicity and advertising and build agreater sense of participation and belonging inaudience members. This requires an understandingof what an audience is looking for in terms ofworth, value and satisfaction. In the words ofDavid Brown, General Manager of The BostonBallet, "What we sell is an intangible product.There is not a functional value to the ballet.So what we are offering is a unique experience.Something you cannot reproduce elsewhere."
Josiah Spaulding, Chief Executive Officer/President of the Wang Center for the PerformingArts, puts it this way: "What people are going outfor now, is the anticipation of an experience.What is comes down to is a matter of audienceexpectation and delivering what you promise andhopefully something more. Build their trust. Buildtheir loyalty. Build that connection."
Said simply, audiences at the local level like tosee what will please, educate or enhance theirexperience. Audiences want some assurance thattheir expectations will be met. This requires thelocal marketer to ask questions, conduct surveys,seek audience opinions and guidance in what willencourage participation.
The Museum of Fine Arts in Bostonquestioned certain assumptions long held by itsBoard of Directors. Thanks to a series of surveysboth with frequent attendees (three or more timesa year) and "sometimers" (once a year or onceevery two years) the MFA reached theseimportant decisions.
1. Ticket prices could be raised from$3.00 to $8.00 with no loss inattendance!
2. "Sometimers" are more likely to visit themuseum if they are asked only to viewone exhibit at a time. (The experience isnot nearly so overwhelming and thosewith time pressures feel more at easespending only thirty or forty minutes ina particular wing or single area).
3. Men are more likely to visit the museumwhen they are on vacation from anothercity. ("Vacations are the time to dosomething you'd never ordinarily do ahome," is a typical comment).
This alerted the Museum to increasepromotional activities with Bureaus ofTourism in London, Paris, Japan and towork with Convention Bureaus and hotelchains to make the Museum part of atour package.
4. People are more likely to enjoy theexperience of what they are seeing, if theyare provided with an explanation in theform of tapes, guides, "walkman devices".
Similarly, the Metropolitan Opera in NewYork found that many people new to opera, didnot know the plots or feel comfortable with aforeign language. Tele-prompters discreetly placedbegan scrolling a translation of what was beingsung, along with a brief description of the storybefore the performance began. Attendance hasincreased.
