Artist business plan for starting your own business
In today’s world, an artist is a creative entrepreneur who is a self-employed business owner and uses his skill to earn a decent living. A professional artist is someone who knows how to make an impact with his work and make a living out of it. In case you want to make a business out of your art, a well-thought artist business plan can make a huge difference towards your success.
Whether you want music festival business plan, internet radio business plan, business plan for music industry, business plan for movie theater, karaoke business plan, or night club business plan, this model of business plan will help you in writing a well thought business plan to start a successful business.
If you want to know how to write a business plan for an artist, or you are looking for business plan for artists, you can continue to read as we will write down all the important points required in a good business plan for investors.
2.1 The Business
In all the business plan examples for artists, the first thing you need to mention is the introduction of your business.
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PixelCo will be a registered, licensed and insured art design business based in the Miami, Florida. This business will strive to cultivate meaningful and relevant connections between people and brands through our art designing services and unparalleled visuals.
2.2 Management of Artist Business
The success of any business heavily depends on its management and staff. That is why in your business plans for artists, make sure to plan everything in advance.
The management body of the company will include art artists, sales executives, animation and cartoon specialists, customer representatives and website developers. The team will be managed by the owner who will look into every matter himself.
Like in every artist business plan sample, you need to provide detail about the management. The staff will be hired one month before the launch of the company and will be trained by the owner.
2.3 Customers of Artist Business
At PixelCo, our customers will include following
- Insurance Companies and banks
- Sport Organizations
- Political parties
- Television Stations
- Real Estate Owners, Contractors and Developers
- Advertising agencies
Similar to a mobile app business plan, mentioning all the customers are required to make a strong business plan.
2.4 Business Target
Our primary goal is to become the best art design company in Miami within the next 6 years of our startup. We aim to provide the best and reasonable services to our customers. The main business targets that we want to achieve as milestones over the next four years are as follows:
- To cover the investment by the end of the first year
- To expand our company and open up two to three company offices by the end of 5th year
- To raise at least $10 monthly revenue by the end of the first year
3.1 Company Owner
PixelCo will be owned by Julie Mark, a renewed art designer. She has completed her Masters of Art in art design from the University of London. After completing her degree, she worked with some leading digital marketing companies as a art designer. After gaining all the knowledge about how to start a small art business, she decided to start her own business.
3.2 Why the Artist Business is being started?
Julie continued to work as a art designer in some of the biggest art designer companies in the US. But soon she realized that she can start her own business and can establish her name in the art designing industry.
That is why she decided to start PixelCo completely by herself. Similar to writing a business plan for makeup artist, it is important to write down why and how the business will be started when writing a business plan for artist.
3.3 How the Artist Business will be started?
In business plan artist, you need to mention all the necessary steps to start a business. To start a art designing business, you do not need much investment as needed in other startups.
Julie has planned everything for her business including the required inventory and personnel.
To start an art designing business on a small scale, you need a small set-up, and for that, a small space will be enough.
Next, to set up the space, you will need office furniture including filing cabinets, couches, chairs and work desks. You will also need some decent furniture for meeting rooms and waiting rooms.
The next and important thing is to buy all the art designing and other related software to start the work. These include Freehand, Illustrator, Photoshop, Quark and Microsoft project.
You will need a strong internet connection to carry out the work without any distortion.
When we talk about the expenses to open a art designing company, these include consultant fees, insurance, rent for the space, laptops and computers for the employees and interior expenses.
|Research and Development||$23,000|
|TOTAL START-UP EXPENSES||$380,000|
|Other Current Assets||$227,000|
|Start-up Expenses to Fund||$380,000|
|Start-up Assets to Fund||$1,204,000|
|TOTAL FUNDING REQUIRED||$1,584,000|
|Non-cash Assets from Start-up||$1,584,000|
|Cash Requirements from Start-up||$317,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$45,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,584,000|
|Loss at Start-up (Start-up Expenses)||$336,000|
|TOTAL CAPITAL AND LIABILITIES||$1,986,000|
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In this business plan for artist management company , you need to mention the services your company will provide. This is an extremely important part of any business plan for artist.
PixelCo will provide art designing services and visual communication services to small as well as established companies. We aim to compete with all the leading art designing companies in the US. As can be seen in our business plan template for artists, we will provide the following services:
We will provide digital designs including logos, websites, and all kinds of arts to our clients. We will also provide cartoons and animations as per our customer’s requirements.
We will also provide hard form decorations, art pieces, and custom-themed paintings.
In addition to digital designs, we will also provide print media designs including books, magazines and newspapers.
We will also provide advertising services and corporate branding that will include infoarts, brochures, product packaging, and posters.
Marketing Analysis of Artist Business
Great service. Good turnaround time and quality work.
Similar to business plan for music artist, marketing analysis is an important component in abusiness plan for artists pdf. That is why Julie got the services of marketing experts to help her through this important phase. In anny artist development plan, the importance of this part cannot be ignored.
To start a successful business for artists, you need to do an accurate marketing analysis, as the planning and execution of many other components depend on it. It also serves as the basis of your business strategy.
5.1 Market Trends
The trend in the art designing industry is that the market keeps expanding with time. Anything that cannot be done verbally needs to be put into some design to communicate or to send the message. If we look around, we are surrounded by arts.
From your coffee mug to the magazine cover, the ads on the TV all are applications of art designing. These are the reasons why the art designing industry is growing fast and is one of the biggest and fastest-growing companies in the world.
In 2017, around 335,000 art design companies were working all over the world. These include both small and large companies and people working as freelancers. The art design business is popular because all other businesses require their services to appear professional and to reach out to people.
5.2 Marketing Segmentation
Market segmentation is another important part of the sample regarding how to manage an artist pdf available online. All top performing artist marketing plan example templates include the detail about marketing segmentation for art design business.
The target market for PixelCo will be the corporate sector located in the US. According to research, the US houses more than 500,000 businesses which include both local, multinational and national businesses. These businesses have revenue in millions of dollars each year. It makes it easy for them to spend a lot of money on their art designing needs to promote their brands and to reach out to people.
To develop a good marketing strategy and to run a business seamlessly, it is important to analyze the market segmentation. An efficient and successful marketing strategy can only be developed after knowing the potential customers of any business. The market segmentation for PixelCo will be as follows:
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Institutions & Organizations||31%||32,000||35,000||35,000||37,000||39,000||10.00%|
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One of the biggest consumers of PixelCo will be the corporate sector located in Florida. These include local, national and multinational businesses that need art designing services to expand their business. These companies include product manufacturers, real estate owners, distributors, developers, banks, hotels, IT firms, software houses and advertising agencies. These companies will need our services to update their brand logos, make advertisements and manage their websites and social media pages.
Institutes and Organizations
Our next target group consists of organizations and institutions located in Florida. These include public and government sectors such as schools, universities and colleges, sports organizations, political parties, non-profit and religious organizations.
Our third and important target group will be digital media and print companies. These will include publication companies, video production companies and television studios. Due to its nature, this target group is one of the biggest consumers of artist and designing services.
5.3 Business Target
Our primary goal is to balance the cost of investment in the first two years of our launch. Our secondary goal is to become the best art design company in Florida within few years.
5.4 Product Pricing
When writing a marketing plan artist, the pricing is extremely crucial. The service and product pricing should be determined with great care. We have considered the market demands, and have priced all our services in a comparable range with other companies. All of our prices are similar to other companies except for logo making prices which are 30 percent less than other companies to promote sales.
Marketing Strategy for Artist Business
PixelCo will make sure that we meet the clients’ expectations and deliver the service as per their requirements. Any good independent artist business plan like this business plan for artist example pdf should have a clearly defined marketing strategy.
Our goal is to achieve a 15% increase in website traffic every month and we will work to turn 70% of the visitors into our consumers. We will also work on increasing the engagement rates. Engagement rates show the frequency at which visitors interact with the post. We aim to increase our social media following so we can reach out to maximum people.
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6.1 Competitive Analysis
To survive in artist and design industry, you have to be very creative and should have innovative ideas regarding designs. Only then you can survive and grow.
PixelCo has a team of dedicated and hard-working professionals. All of the staff is highly trained and has excellent qualifications. Our biggest competitive advantage is the leadership of our owner Julie, who has worked in world-renowned companies.
6.2 Sales Strategy
Julie has carried out a detailed analysis and along with her team, and came up with excellent ideas to advertise her company.
- We will reach out to people by advertising our company by using social media platforms, newspapers, magazines and TV stations.
- In the first three months of our launch, we will offer a 20% discount on our all services
- We will offer a 30% discount on all of our services on customer’s referral.
- We will send introductory letters and brochures to other organizations.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||10,400||11,024||11,685|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$316,000.00||$364,216.00||$423,821.92|
In an artist business plan or artist development plan, personnel plan is important as it provides an idea of personnel cost. If the staff is not loyal to the company, the company cannot make progress. It is difficult to estimate the type and number of staff needed to start a business until a business is launched. So to get through this step, it is important to take the advice of HR experts.
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7.1 Company Staff
The following people will be needed to run PixelCo. Also, note that Julie Mark will be the owner and CEO of PixelCo business. The list of staff is as follows
- 1 operation manager
- 1 social media marketing manager
- 3 sales executive
- 2 animation and cartoon specialists
- 5 website developers
- 3 customer representatives
- 1 reception clerk
- 1 accountant
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Animation and Cartoon Specialists||$30,000||$33,000||$36,300|
When writing a business plan for artist, a financial plan is the next important thing after personnel plan. Any good business plan for artists clearly lists all costs, such as the cost of startup, payroll, inventory, utilities and equipment.
The major expense/ costs include:
- The interior design of the office
- Office space rent
- Cost of inventory – furniture, chairs, tables and laptops
- Salary of employees
- Bonds, securities, registration costs, and insurance
- Cost of buying software
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.15%||8.24%|
|Long-term Interest Rate||8.37%||8.46%||8.49%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$131,500|
|Average Per-Unit Revenue||$232.00|
|Average Per-Unit Variable Cost||$0.65|
|Estimated Monthly Fixed Cost||$163,400|
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8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$8,078,000||$9,637,520||$11,811,283|
|TOTAL COST OF SALES||$8,078,000||$9,637,520||$11,811,283|
|Gross Margin %||3.37%||6.24%||6.55%|
|Sales and Marketing and Other Expenses||$137,000||$148,000||$156,000|
|Total Operating Expenses||$312,300||$337,900||$362,080|
|Profit Before Interest and Taxes||($30,300)||$304,036||$466,256|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$14,000||$15,120||$16,330|
|SUBTOTAL CASH FROM OPERATIONS||$66,000||$71,940||$77,695|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$67,000||$72,000||$78,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$63,000||$66,000||$69,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$63,000||$68,040||$73,483|
|Net Cash Flow||$19,000||$21,000||$22,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$287,000||$321,440||$361,299|
|TOTAL LONG-TERM ASSETS||$24,000||$26,880||$30,240|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$303,700||$328,160||$369,180|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.12%||2.35%||2.60%||2.40%|
|Total Current Assets||149.00%||152.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||94.00%||96.54%||99.24%||97.80%|
|Profit Before Interest and Taxes||41.00%||42.11%||43.29%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.00%||74.50%||75.00%||75.00%|
|Pre-tax Return on Assets||94.60%||99.33%||104.30%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.01%||34.03%||35.09%||N.A.|
|Return on Equity||56.00%||57.74%||59.53%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15||16||16.3||N.A.|
|Total Asset Turnover||2.4||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$239,000||$252,384||$266,518||N.A.|
|Assets to Sales||0.86||0.87||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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- How can I start my own business as an artist?
To start a business as an artist, you need to use your skill. Make a business plan for artist and work on it to start your own business. You can easily start it once you have made a good business plan for makeup artist. After that, just follow the steps to start a successful business.
- How do I write a business plan for an artist?
You can use this business plan template for artist to write your own plan.
- Is an artist a business?
Not all entrepreneurs are artists but it is the fact that all artists are entrepreneurs. Being an artist you can polish your skill and then use it to make a living out of it. The business for artists is their skill through which they can earn money.
- How much does an art business make?
The amount of money that an art business can make depends upon the type of art you are selling. For example, if you are a graphic artist, you can make a lot of money as compared to an artist who is just a painter.
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