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*** DUE MARCH 10 ( SUNDAY )
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2. WEEK 8 DB
ENT 336 :
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Art Van Gogh
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BUSINESS PLAN
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Business Plan Prepared By
Entrepreneur’s Name
Entrepreneur’s Title
Art Van Gogh
Company Address
City, State Zip Code
Phone, Fax Numbers
E-Mail, Web Address
Date Prepared
February 2024
Table of Contents
Executive Summary……………………………………………………………………………………………………. 1
Management and Organization Plan…………………………………………………………………………. 2
Legal Form of Business………………………………………………………………………………………………….
2
Management Team………………………………………………………………………………………………………..
2
Board of Directors/Advisory Board…………………………………………………………………………………..
2
Recruitment and Selection of Employees…………………………………………………………………………
2
Compensation and Ownership………………………………………………………………………………………..
2
Employee Reward and Incentive Plan……………………………………………………………………………..
2
Communication……………………………………………………………………………………………………………..
2
Infrastructure…………………………………………………………………………………………………………………
2
Product / Service Plan……………………………………………………………………………………………….. 3
Purpose of Product/Service…………………………………………………………………………………………….
3
Features and Benefits……………………………………………………………………………………………………
3
Stage of Development……………………………………………………………………………………………………
3
Product/Service Limitations…………………………………………………………………………………………….
3
Product/Service Liability…………………………………………………………………………………………………
3
Production…………………………………………………………………………………………………………………….
3
Facilities……………………………………………………………………………………………………………………….
3
Suppliers………………………………………………………………………………………………………………………
3
Related Products/Services and Spin-Offs…………………………………………………………………………
3
Trademarks, Patents, Copyrights, Licenses, Royalties………………………………………………………
3
Governmental Approvals………………………………………………………………………………………………..
3
Marketing Plan……………………………………………………………………………………………………………. 4
Industry Profile………………………………………………………………………………………………………………
4
Current
Size…………………………………………………………………………………………………………………. 4
Growth
Potential…………………………………………………………………………………………………………… 4
Industry
Trends…………………………………………………………………………………………………………….. 4
Other
Characteristics…………………………………………………………………………………………………….. 4
Distribution
Channels……………………………………………………………………………………………………. 4
Competitive Analysis……………………………………………………………………………………………………..
5
Direct
Competition………………………………………………………………………………………………………… 5
Indirect
Competition………………………………………………………………………………………………………. 5
Future
Competition……………………………………………………………………………………………………….. 5
Competitive
Analysis……………………………………………………………………………………………………… 5
Market Analysis…………………………………………………………………………………………………………….
6
Target Market
Profile…………………………………………………………………………………………………….. 6
Customer
Profile…………………………………………………………………………………………………………… 6
Future
Markets…………………………………………………………………………………………………………….. 6
Pricing………………………………………………………………………………………………………………………….
7
Pricing
Strategy……………………………………………………………………………………………………………. 7
Price
List…………………………………………………………………………………………………………………….. 7
Pricing Policies…………………………………………………………………………………………………………….
7
Market Penetration………………………………………………………………………………………………………..
8
Company
Image……………………………………………………………………………………………………………. 8
Customer
Service………………………………………………………………………………………………………….. 8
Location……………………………………………………………………………………………………………………..
.8
Direct Sales
Force………………………………………………………………………………………………………… 8
Sales
Representatives…………………………………………………………………………………………………….. 8
Licensing or
Distributors………………………………………………………………………………………………… 8
Advertising and
Promotion……………………………………………………………………………………………… 8
Publicity………………………………………………………………………………………………………………………
8
Telemarketing/Direct
Mail………………………………………………………………………………………………. 8
Internet……………………………………………………………………………………………………………………….
.8
Trade
Shows………………………………………………………………………………………………………………… 8
Market Penetration
Effectiveness……………………………………………………………………………………… 8
Financial Plan……………………………………………………………………………………………………………… 9
Start-Up Costs………………………………………………………………………………………………………………
9
Sales Projections…………………………………………………………………………………………………………..
9
Income Projections………………………………………………………………………………………………………..
9
Cash Requirements……………………………………………………………………………………………………….
9
Sources of Financing……………………………………………………………………………………………………..
9
Exit Strategy…………………………………………………………………………………………………………………
9
Projected Financial Statements……………………………………………………………………………………….
9
– Monthly Cash Flow Report (for three
years)…………………………………………………………………….. 9
– Year-End Income
Statement………………………………………………………………………………………….. 9
– Year-End Balance
Sheet………………………………………………………………………………………………. 9
– Ratio
Analysis……………………………………………………………………………………………………………. 9
Appendix…………………………………………………………………………………………………………………… 10
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Executive Summary
Industry : Art dealers / Museums in the US
Venture History: Naomi
Out of all museums in the US, art museums are currently making the most profit at $6.9
billion. Some strengths that have helped allow this to happen are having a lot of steady
assistance, low imports, and high revenue from customers paying to get in and sometimes
buying the artwork. However, the weaknesses do include time spent on creating art pieces,
relying on customers wanting to visit, and the hit that the COVID-19 pandemic had on this
industry.
An important aspect that is to be taken into consideration is the artwork itself. Art
museums are known to have a wide variety of pieces that come from well-known artists. This
creates the anticipation of wanting to go and what you will see in person.
Out of different types of artwork, paintings in the US have the highest revenue at $4.8
billion. Sculptures are at $950.8 million and photography is at $475.4 million. Also, art buyers
have become more interested in experiences and cultural events lately. This makes sense as to
why paintings have the highest revenue since the artist can create a personal piece with a
deeper meaning that could be personal.
Venture Description : Noriel
Art Van Gogh is a gallery in an upgraded bus. This venture will include selling art pieces
such as paintings, photography, sculptures, etc. The use of the school bus will give a flow for
our guests to come to enjoy the art space and embrace the community around them. Local
artists will sell their work to us and be able to share their vision. Plaques will be presented
beside the work describing what materials the artists used, who the artist is, and what the
artwork means to them. In addition to the walk-through museum, you can book classes to learn
how to paint or touch up your artistic skills with various mediums. You can join us in the fun with
a sip and paint.
Venture Organization: Rashida
The Art Van Gogh will operate as a Limited Liability Company (LLC), with a
management team of CEO/Founder, Operations Manager, Curator, Marketing Manager, and
Finance Manager. Also, a board of directors that will consist of experienced professionals in art,
business, and community engagement, providing guidance and oversight to the management
team. These are people of the community who have years of experience in the visual arts
industry, who know how to connect with their community and pique their interest in the events
Art Van Gogh offers. Then four employees tour, assist, and process purchases for customers
during events and exhibitions.
Venture Operations: Noriel
Art Van Gogh will be operating on an upgraded school bus. When we are not booked for
a local event, we will have a permit to park in a designated area in downtown Greensboro. For a
30-gallon tank, it will cost approximately $120 to fill up with the price of $4 per gallon of gas. For
a 150-gallon tank, it will cost approximately $600 to fill up with the price of $4 per gallon.
Depending on which bus we decide will determine our cost for maintenance.
Venture Marketing: Demi Holmes
Because the overall market size for the Art Dealers industry is expected to increase over
the next five years, we need to enter the market now with features in our venture that differ from
our competitors. Other major competitors in the industry, such as The Susquehanna Art
Museum’s “VanGo, Museum on Wheels” and “cARTie” art museum bus, have a similar concept
of hosting art exhibits and events in a mobile art bus for kids and young emerging artists.
However, Art Van Gogh will go beyond this concept by catering to the older target market of
consumers interested in purchasing artwork showcased by high-profile artists. We plan to
partner with locally and globally known artists to produce mobile popup art shows, which include
the benefits of exclusive paint courses, events, and merchandise to be sold. We will use social
media platforms such as Instagram, Facebook, Twitter, and TikTok to promote our artists, and
their artwork, and network connections with other artists and art dealers around the world.
According to IBISWorld, the art dealers industry is looking to have an upward increase of 0.3%
CAGR to $12.5 Billion within the current period with a strong consumer interest in contemporary
paintings. Therefore, we will use this as a positive sign to enter the market with contemporary
art promoted on all platforms for a higher generation of cash flow and consumer attractiveness.
Venture Financing: Mandy Hayes
Some of the largest start-up costs include buying a used school bus and renovating it.
Prices vary depending on the model year and the mileage. Since the bus will be renovated to
host the museum, a large bus is necessary but it doesn’t have to be in mint condition. Some of
the alternatives analyzed included buses built between 2014-2015 with a mileage between
100,000 – 150,000 miles. These buses can seat up to 72 children and are 35 feet long and 8
feet wide. The price range is between $15,900 to $17,900, so a mean price of $16,900 can be
expected (Buses For Sale, 2024).
The total cost of renovating the bus can be significant since it includes design fees,
painting, adding floors, adding furniture and fixtures, inspection fees, and registration fees. The
approximate cost for renovating the bus and transforming it into a museum is $20,000 including
the exterior paint job (HomeAdvisor, 2022).
Other major initial costs include acquiring local art pieces. The average price of art
pieces from local emerging artists ranges between $200 to $800. While the average price of art
pieces for mid-career artists ranges between $1,000 to $5,000. These artists have national or
regional recognition but are not considered art masters yet (Chu, 2022). Assuming that our art
gallery will earn a 50% markup (Jenny, 2023), the costs of art pieces for emerging artists should
range between $100 to $400, and $500 to $2,500 for mid-career artists.
The possibility of taking art pieces under consignment agreements from artists can
reduce costs significantly (Trice, 2021). The gallery does not purchase the art pieces but is
responsible for exhibiting them and taking good care of them. This is a popular working
arrangement since it provides greater exposure to artists and reduces the gallery’s operating
costs.
References
Buses For Sale. (2024). School buses. Buses for Sale.
https://www.busesforsale.com/category/school-buses
Chu, M. (2022, September 8). How much does an art piece cost? 3 Price ranges for
collectors. Hanging Investments. https://hanginginvestments.com/art-piece-cost/
HomeAdvisor. (2022). Learn how much it costs to Convert a Bus to an RV.
https://www.homeadvisor.com/cost/additions-and-remodels/convert-bus/
Jared Ristoff. (March 2023). IBIS. Art Dealers in the US.
https://my.ibisworld.com/us/en/industry/45392/at-a-glance
Jenny. (2023, December 3). The Art Collector’s Guide: Decoding Art Pricing and
Commission Structures. The Nomad Salon.
https://www.thenomadsalon.com/post/the-art-collector-s-guide-decoding-artpricing-and-commissionstructures#:~:text=a)%20Art%20Dealer’s%20Commission%3A%20Art,60%25%2
0of%20the%20sale%20price.
Michal Dalal. (February 2024). IBIS. Museums in the US.
https://my.ibisworld.com/us/en/industry/71211/at-a-glance
Trice, E. (2021). Art Business Essentials: Consignment agreements for Artists. Artwork
Archive. https://www.artworkarchive.com/blog/art-business-essentialsconsignment-agreements-for-artists
Management and Organization Plan
Legal Form of Business :
Management Team : MH
Board of Directors/Advisory Board :
Recruitment and Selection of Employees : MH
Compensation and Ownership
Employee Reward and Incentive Plan : MH
Communication
Infrastructure
Product / Service Plan
Purpose of Product/Service- Naomi
The purpose of this service is to support small artists while providing the public with a
unique experience to see and create different types of artwork. Being on wheels allows Art Van
Gogh to travel to reach new artists and customers. We also get to educate those during our
events that will be held in the van.
Features and Benefits- Demi
The features of Art VanGo such as art painting events, mobile transportation, and local
art partnerships will not only benefit us as a business but spread joy and entertainment to local
communities. Painting events such as museum exhibits and Sip and Paints will benefit our
visitors’ artistic expression and express themselves creatively. Mobile transportation will be a
benefit for connecting local artists with the community and our business. Partnerships with local
artists can benefit exposure and financial gains for those artists as well.
Stage of Development- Noriel
Art Van Gogh is in the early maturity stage of development. The concept of having an art
gallery is in the maturity stage. The creative aspect of having classes and selling art in a mobile
vehicle is the part that makes it fresher than what is in the market.
Ristoff , J. (2023, March). Art Dealers in the US. IBISWorld. https://my-ibisworldcom.libproxy.uncg.edu/us/en/industry/45392/at-a-glance
Product/Service Limitations- Demi
Certain limitations we may face as a venture in the art dealer industry include timing
commitments, cost, and subjectivity. We understand that artists need time to create substantial
artwork, therefore, if we need to network more, there could be a limit to the amount of product
supply we have available. We also understand that the cost of retail is extraordinarily high, and
if we do not take careful account of our financial endeavors it could be a potential limit towards
our supply as well. Subjectivity can be considered a limitation of our inventory management due
to the difficulty of artists making consistent artwork that can keep the attention of our target
consumers.
Product/Service Liability- Naomi
A possible liability of having a business in a van could be that things are not as stable as
we would hope. For example, the bus moving or artwork falling. Another topic of concern is the
limited space available. We would need to keep up with the maximum occupancy and to make
sure there are no fire hazards.
Production- Rashida
Walk-Through Museum:
Collection of artworks from local artists to be displayed in the walk-through museum. The
installation has appropriate lighting, signage, and display fixtures to enhance the viewing
experience and highlight the artwork. Also, informative materials such as plaques or digital
displays provide context, artist bios, and explanations of the artwork on exhibit. Then scheduling
a regular rotation and updating the exhibition to keep the content fresh and encourage repeat
visits.
Art Classes:
Art Van Gogh provides visual art classes with different materials like paintings
(oil/acrylic), charcoal, or scrap art. There will be classes held on the bus and also outside,
depending on the size of the class and the space needed for the activities. A way to promote the
art classes is through social media to attract students and generate interest in the program.
Sip and Paint Events:
There will be different themed painting sessions to add variety and excitement to the sip
and paint calendar. It is important to have a relaxed and social atmosphere with music, seating
arrangements, and decor that enhances the experience. Then have a photograph to capture
memorable moments to share on social media and promote future events.
Facilities- Demi
Art VanGo Headquarters will be operated out of one mobile facility where we will buy,
sell, and showcase artwork from local and globally known artists and to consumers we visit from
other regions we visit. The facility will include an art gallery station for visitors to exhibit all of the
artwork displayed inside the van from all the different places artwork was collected and, a ‘sit
and paint’ station where we will host painting events for small to medium-sized parties, and a
cleaning station where we will keep all supplies to clean any messes that may occur. The facility
will have an outside display of artwork in our designated parking area for consumers to visit as
they walk, drive, or run by.
Suppliers- Rashida
Local Artists:
Art Van Gogh has connections with local artists who will supply their artwork for display
and sale in the gallery. These partnerships with the artists who create paintings, photography,
sculptures, and other forms of art that will be displayed.
Art Supplies Suppliers:
Art supplies such as paints, brushes, canvases, easels, and other materials needed for
the art classes and workshops Art Van Gogh will be offering. Establishing partnerships with
local art supply stores or wholesale suppliers like Jerry’s Artarama.
Payment Processing Providers:
Will set up a reliable payment processing system to facilitate transactions for artwork
sales, class bookings, and other purchases made at the gallery. Choosing a provider like
Veevart that helps manage fundraising, ticketing, and other management features.
Related Products/Services and Spin-Offs- Naomi
There are other companies that involve being on a bus, truck, or van. This idea kind of
stemmed from food trucks. With that being said, a lot of these ideas have to do solely with
selling food and/or drinks. There are a few unique ideas, like an aquarium, where they bring live
sea animals in a UHaul-like truck called “Aquarium on Wheels” (Aquarium of the Pacific 2024).
There are also a couple museums on wheels, but they each showcase different aspects of
history and in their own ways (Pinole History Museum 2024). But we have not seen a mobile,
walk through gallery that also holds other events such as teaching those how to sculpt, paint,
etc., or give the opportunity to actually buy the pieces inside.
Aquarium of the Pacific (2024). Aquarium on Wheels.
https://www.aquariumofpacific.org/education/aow
Pinole History Museum (2024). Museum on Wheels.
https://pinolehistorymuseum.org/our-goals/museum-on-wheels.html
Trademarks, Patents, Copyrights, Licenses, Royalties- Naomi
Once Art Van Gogh comes up with a logo and a tagline, we will get those two and our
name trademarked, especially since we will be traveling to different areas. There will need to be
a license for the bus to be able to buy and sell out of it, all while traveling. We will also be
incorporating royalties between us and the artists who get their displayed artwork bought. We
will keep a list of artists and their artwork that is on the bus, and continue to communicate with
them about the price changes and agree upon a percentage of the funds that will be given back
to us.
Governmental Approvals- Noriel
Art Van Gogh will get a completed permit in order to be able to sell such artwork from
artists. We will have a permit to be able to park our mobile gallery bus in the downtown area of
Greensboro or at such events we are booked for. Art Van Gogh will have their business license
and be registered in North Carolina.
Marketing Plan
Industry Profile
Current Size
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Growth Potential
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Industry Trends : MH
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Other Characteristics
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Distribution Channels
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Competitive Analysis
Direct Competition
InsertTextHere
Indirect Competition : MH
InsertTextHere
Future Competition
InsertTextHere
Competitive Analysis
InsertTextHere
Market Analysis
Target Market Profile : MH
InsertTextHere
Customer Profile
InsertTextHere
Future Markets
InsertTextHere
Pricing
Pricing Strategy
InsertTextHere
Price List
InsertTextHere
Pricing Policies : MH
InsertTextHere
Market Penetration
Company Image : MH
InsertTextHere
Customer Service : MH
InsertTextHere
Location
InsertTextHere
Direct Sales Force
InsertTextHere
Sales Representatives
InsertTextHere
Licensing or Distributors
InsertTextHere
Advertising and Promotion : MH
InsertTextHere
Publicity :
InsertTextHere
Telemarketing/Direct Mail
InsertTextHere
Internet
InsertTextHere
Trade Shows
InsertTextHere
Market Penetration Effectiveness
InsertTextHere
Financial Plan
Start-Up Costs : MH
InsertTextHere
Sales Projections
InsertTextHere
Income Projections
InsertTextHere
Cash Requirements
InsertTextHere
Sources of Financing
InsertTextHere
Exit Strategy
InsertTextHere
Projected Financial Statements
– Monthly Cash Flow Report (for three years)
– Year-End Income Statement
– Year-End Balance Sheet
– Ratio Analysis
Appendix
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