Art Business Plan

 



Art Collection Auction Business Plan

For

Donation

“Website” https://artcollectionauction.blogspot.com/

“LinkedIn” https://www.linkedin.com/company/art-collection-auction

“Facebook” https://www.facebook.com/ArtCollectionAuction

“YouTube” https://www.youtube.com/channel/UCz9yHvJYUtQMDlUhbZL_Q9Q

                                                                           “Industry” ART

Founder: Md Mashudul Islam

                                                                           Founded: February, 2021

                                                                          Project Plan: 2021 - 2024 (Year)

                                                                      Communication Information

                                                                                 UK Office 

34-35 New Bond Street, Mayfair, London W1A 2AA, United Kingdom, London, England GB

                                       Contact us: productexpensive@gmail.com or startupcapitalraising@gmail.com

 

Table of Content:

  • Executive 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
  • Grant / Loan Amortization and ROI Tools

 

1.0 Executive Summary

The purpose of this free business plan is to raise $100,000 for the start of an art Collection Auction while showcasing the expected financials and operations over the next three years. The Art Collection Auction (“the Company”) is a UK based company that will provide sales of art from established and up and coming artists to customers in its targeted market. The Company was founded in 2021 by Md Mashudul Islam

We believe in commitments, we are trying our best to match the client expectation by providing them what they demands far as we value the clients over cost.

We are company who believes in delivery what client demands what add on to reach client delight. Our client country is: UK, USA, Canada, Australia, Europe and Asia.

We believe in building and maintaining long term relationship with all our clients.


Art Color Strategy

Different Color Meaning:

Yellow: Jealous, Betrayal, illness, Danger.

Blue: Loyalty, Strength, Trust, Responsibility.

Orange: Joy, Energy, Strength, Passion. Happiness.

Pink: Caring, Love. Compassion.

Green:  Nature, Environment, Growth, Freshness, money. Fertility, Safety.

Red: (-) Blood, Aggression, Danger, Violence, War, Blood Pressure.

(+) Love, Passion, Desire.

Grey: Emotionless, Dull, Dirty, dingy, Unsettling, Feeling.

Purple: Royalty, Power, Luxury, Peace, Pride, mystery, Independence, magic.

Brown: Steadfastness, simplicity, friendliness, dependability, health.

Black: Strength, Mystery, Power, death, evil, aggression, seriousness, hide think.

Gold: Success, Achievement, Richness, wisdom of life, Love, Understanding, compassion, courage, passion, magic,

White: Innocence, peace, purity, goodness, bride, human eye, light, perfection.

1.1 Products and Services

As stated earlier, the Art Collection Auction 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 Collection Auction 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 Collection Auction

1.2 The Financing

1.       Seeking donation.

2.       I am seeking to raise $100,000. 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.

Goal: $1 Million (Per Year)

Objective: Provide Art Service.

1.4 Management Team

The Company was founded by Md Mashudul Islam. Through my expertise, I will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Md Mashudul Islam 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. Md Mashudul Islam 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 Collection Auction the Company will be registered as soon as in the London.

2.2 Required Funds

At this time, the Art Collection Auction requires $100,000. Below is a breakdown of how these funds will be used:

2.4 Management Equity

Owns 100% of the Art Collection Auction.

2.5 Exit Strategy

If the business is very successful, we 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 Collection Auction. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

The Art Collection Auction 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 Collection Auction.

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 London. 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 Collection 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.

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 and UK is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.

4.2 Industry Analysis

The direct sale of art in the United States is a $100 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 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

Competitive advantage lies in the power of our team; our work force. We have a team of creative result driven and highly proficient experts, a team with excellent qualification and experience various niche areas in the Art industry and other related industry.

 

We are result driven and able to meet set targets with our selected marketing experts and guided by best practice in the industry.

4.5 Weakness:

It takes some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive industry.

Another weakness is that we may not have enough cash to pump into promoting our business especially via main stream media (TV, Radio, and Newspaper) the way we would want to.

5.0 Marketing Plan

The Art Collection Auction 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 Collection Auction

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 Collection Auction 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. Md Mashudul Islam. 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 Collection Auction 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.

5.3 Pricing







Art Pricing Consider Following Current Market Formula 2021

6.0 Organizational Plan and Personnel Summary

6.1                                          Art Collection Auction (Team Member)

                              

Two Art Specialist will be appointed soon: Experience 10 Years.

Major Benefit:

*Art Service                                                                                                                                         

*Employment Opportunity                                                                                                                   

*Government Tax

 

6.2 Organizational Budget

 



.

7.0 Financial Plan

















7.1 Underlying Assumptions

  • • The Art Collection Auction will have an annual revenue growth rate of 16% per year.
  • • The Owner will acquire $100,000
  • • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Art Collection Auction 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 Collection Auction 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

End.

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