Arts & Culture Business Resources

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Business 101 in the Arts & Culture Sector

Whether you’re just starting your career in arts and culture or a veteran looking to get better at business, here’s a checklist of ‘musts.’ And tips on how to get ‘em done.

1. Ask yourself one question first. Why? — Know why you want to own and run a business. It shouldn’t only be about making more money.

2. Be ready to learn and to look for support — Seek out educational opportunities to improve your skills and search for resources. There’re a lot of them. You’ll be surprised.

3. Write a business plan — Research and critical thinking are vital first steps. What are your business’s aims, and how will you achieve those? Ask yourself some thought provoking questions. What makes you think your art or performances will sell? How do you and your skills differ than those already out there? Then start checking the boxes, making the calls and crunching the numbers.

4. Understand your customer and market — If you want anyone to buy your art or tickets to your event, you need to know a lot about them, like who they are and where they are.

5. Understand your competition — They know things you need to know too. How’s your product and brand compare to theirs? What do they charge? Where do they sell or perform? How’s their inventory or touring schedule compare to yours?

6. Financial management & accounting — Know your numbers. Finances, regular reporting and analysis are the foundation of your business. What are your start-up costs, and where’s the money coming from — a loan, grant, your savings, share holders, crowdfunding? Remember too that grants are gravy — they come and go, and aren’t a source of reliable income. Map out your month-to-month, and year-to-year cash flow prediction. Track expense and revenues day-to-day, at month’s end, and at yearly tax time. Do you have a HST/GST number? Do yo know the requirements of the Canada Revenue Agency? Start with a call to an accountant and a bookkeeper.

7. Legal & insurance — How will your business be structured: sole proprietorship, partnership, corporation, non-profit? What licences and permits do you need? Are you, your property or studio, your shipping arrangements and your inventory properly insured? Are you in compliance with WorkSafe requirements? Call a lawyer and an insurer.

8. Marketing & branding — The standard expenditure on annual promotion is about 10-15 per cent of your business’s revenue. So, once you know your audience, strategize how to reach them. Build your customer base by figuring out where your buyers and audiences are, and where they’re most likely to get their information about you and your crafts — posters on popular doorways, social media, a website, ads in media products they read, listen to or watch? And build your brand identifiers — a logo, word mark, slogan, a story or boiler plate,  you name it — something that visually differentiates you from others in your field, and represents your personality, and the art and performances you’re selling. And remember — just because you’re an artist, doesn’t mean you can design a functional and compelling website and logo. Hire a pro, not a pal. Contact a marketer and brand development agency for ideas.  

9. Team building, vendors & venues — Whether you need employers, contractors or mentors, find the people who have the skills you don’t have, pros who supplement and support your business. Managing people with respect and efficiency is critical to a business’s success. Build mutually beneficial relationships with suppliers, service providers, and folks who book galleries and performance spaces. Learn to communicate effectively, understand each others’ responsibilities, prepare contracts and enjoy the experience of working with others. 

10. Negotiating & networking — If you’re in business of any sort, arts and culture included, you’re in sales. Know how much your work costs you based on your time and overhead costs. Make sure your rates provide the margin you need to stay in operation. Learn to negotiate effectively by understanding your client’s challenges and how you can help solve those. Consider a ‘no’ a ‘maybe’ and try a new approach. Generate strong media contacts with publications, podcasts or social network platforms that garner your audience’s attention. They’ll be interested in your story if it’s well-told and provides great imagery, sounds and samples. Keep up-to-date databases and mail-out lists. And party with your people! Have fun with others in your field and professionals of all sorts, to learn new ideas and make new contacts. 

11. Disaster management & succession plans — Stuff happens. And one day, you’ll want to sell or retire. Be ready for either scenario. What will you do in the case of a fire, flood or unexpected loss of your property, instruments or studio space? Have a plan that’ll save inventory, instruments, documents, licences, insurance, databases, orders and contacts — anything that could be difficult or impossible to replace if you have to set up temporary shop somewhere new. Are you near the end of your career, and hope to pass on your successful gallery and its inventory, your festival or studio to a new owner, family or otherwise? A succession plan outlines the ways in which that can happen financially and logistically.

12. Be strong. — Success, and recovery from rejection or failure, require hard work and resolve.