ArtSphere Galeria Scoala de Arta (ArtSphere) a început activitatea în luna septembrie a

acestui an, după extinderea de la camera din spate fostul său în deplină facilitatea de 787
metru patrat la colţul străzilor principale şi prima în Birmingham, AL. Din septembrie de
afaceri a crescut substanţial, dar într-un mod neordonate. Acest plan de afaceri este scris
pentru a stabili un cadru raţional pentru creştere economică, pentru a maximiza
potenţialul de profit. realizarea cu succes a acestui plan va produce profituri în creştere în
fiecare an până la sfârşitul anului al treilea an.

Cheia succesului şi factorii critice sunt, în ordinea importanţei:

Penetrare în piaţa de zi pentru lecţii de artă.
Completarea unor modificări la sediul.
Efectuarea de modificări la anumite practici operaţionale şi de stabilire a preţurilor.
Efectuarea vânzarea de bunuri de artă o sursă de profit suplimentar.

1.1 Obiective

Cea mai mare oportunitate pentru ArtSphere este prin predarea artei de a clienţi plătitori.
Capacitatea de a face acest lucru este limitat în mărime de aproximativ opt persoane la un
moment dat. Cel mai important obiectiv este acela de a pătrunde cu succes AM 9-3 piaţă
PM de zi. Aceasta este cea mai mare parte din capacitatea de predare ArtSphere lui
(61%). Aceasta oferă fără îndoială cel mai important element în dezvoltarea viitoare a
profiturilor. Obiectivul principal este de a creşte treptat de penetrare a pieţei din acest
sector sa actuală, la nivel aproape de zero la 90% din capacitate maximă până la sfârşitul
anului al doilea.

Ca dupa-amiaza sectorul de piata (22% din capacitatea totală) este deja aproape complet
rezervat, un obiectiv secundar este de a umple seara de ore (de luni până joi) şapte şi 30
seara - 9:30 Aceste opt ore sunt mai uşor pentru a umple. Acest obiectiv ar trebui să fie
atins până la sfârşitul lunii 5.

Un alt obiectiv este să se separe de artă din lecţiile de artă, astfel încât pentru a face
vânzarea de artă furnizează un centru de profit separat.

Un obiectiv final este de a menţine nivelul actual de muncă portret, produse pe bază de
contract de către clienţi, precum şi menţină ca nivelul istoric al vânzărilor de lucrări de
artă create de către proprietarii de ArtSphere înainte de ciupercă recente de instruire de
artă.
1.2 Misiune

ArtSphere este dedicat să ofere instruire competente, profesioniste in arta în mediul

înconjurător, în acelaşi timp plăcut de catering la nevoile variate ale diferitelor grupuri
ţintă de piaţă. ArtSphere încearcă să cultive o mai personal şi pe termen lung, relaţia cu
clientul poate fi realizată decât de un curs tipic şase sesiuni de arta generice predat la
Bessemer State College. ArtSphere recunoaşte că produsul real pe care le vinde este
diferit de instruirea de artă. Helena Rubenstein este citat ca spunând, "în fabrica am
fabricarea produselor cosmetice, dar produsul pe care îl vând este numit" speranţă ".

Acest lucru este valabil la gândire ArtSphere. De produs vândut este privit diferit de către
cumpărători diferite. Un student serios tineri cu potenţial ar putea avea nevoie de ajutor
special, în elaborarea portofoliului său atunci când se aplică la scoala de arta. O femeie sa
retras 70 de ani poate fi căutarea unui mod distractiv de a umple o zi altfel gol. Un
director executiv de stres pot fi mers caută alinare şi relaxare. Încurajare, de consultanţă
tehnică, de stres de relief, scape de singurătate, de auto-exprimare, etc sunt doar cateva
dintre produsele vândute de ArtSphere. Proprietarii ArtSphere recunoască faptul că lecţii
de artă poate fi avut la mai puţin de $ 5.00/hour în unele cursuri de seară "State College.
ArtSphere nu pot încerca să concureze cu aceste preţuri. Acesta este doar de croitorie
"reale" produs căutat de clienţii pe care o vom crea şi a menţine un nivel ridicat de
vânzări.
1.3 Chei spre succes

Cel mai important element pentru succesul este modul pricepere proprietarii pot adapta
produsul pentru a se potrivi nevoilor diferite (afective, psihologice, tehnice, etc) ale
clienţilor săi.
Spatii limitate (maxim opt) nu au termenul de valabilitate. Ei sunt ca de locuri de avion:
Un spaţiu de 10 nevândute astăzi este pierdut pentru totdeauna. Este esenţial, pentru a
evita problema de "neprezentare", pe care clienţii să fie semnat pe o bază lunară, plăteşte
în avans. Aceasta nu exclude posibilitatea de a schimba orare. "Walk-in-uri" pot fi cazaţi,
in functie de disponibilitate, dar aceste produse "," trebuie să fie vândute la o primă
pentru a încuraja clienţii să vă înscrieţi.
Ca cele mai multe afaceri, aceasta este cheia să recunoască şi să încurajeze utilizatorul
"grele". Un utilizator "grele" ar fi cineva fericit să lucreze la şevaletul doi-trei ore la un
moment dat, de mai multe ori pe săptămână. Dacă, totuşi, o lecţie de artă ore nu se
termina semnalat, de exemplu, lumini ce a fost oprit, atunci clientul poate continua pur şi
simplu de lucru pentru ore. Este important să se organizeze un final semnalat o lecţie de
colectare pînzele studenţilor de a le stoca pentru sesiunea următoare. Cei care doresc o
sesiune mai au nevoie de numai inscrie pentru o perioadă mai lungă. Numai în acest mod
poate profitul proprietarilor de utilizator "grele".
Ambele sunt proprietarii artistice şi, uneori, reticenţi în a insista asupra anumitor politici
menite să încurajeze profitabilitate. Dorinţa de a fi flexibilă în acest departament este
cheia succesului acestui plan.
Natura specială a produsului nu permite ca acesta să fie achiziţionate de pe o "ia-out"
baza. Acesta trebuie să fie consumate la faţa locului. Prin urmare, este absolut esenţial
pentru a crea şi menţine un mediu în conformitate cu nevoile speciale ale clientilor. Ugly
dezordine, sistem de iluminare adecvat, curat-up şi a politicilor de fumat, scaune
confortabile, etc toate trebuie să fie abordate. Locaţia ArtSphere în vederea port şi
debarcarea oraşul are toate potenţial pentru atmosfera superioară în comparaţie cu o clasă
tipic dreptunghiular la un colegiu de stat.

Company Summary

The "ArtSphere" was registered DBA jointly in the names of Paul and Hannah Nash
several years ago.

The ArtSphere is located on the corner of Main and 1st Streets in Birmingham, AL.
facing the town's public landing. Approximately 75 students, mostly adolescents, are
signed up for lessons at $10/hour which includes materials. The recently increased
facilities have made possible an increase in the number of students. Lessons are offered a
total of 49 hours weekly. Maximum capacity is considered eight at any one time, which
works out to a possible sales potential of 392 learning hours/week. Limiting to eight
students at any one time allows sufficient room for each student to sit or stand
comfortably at an easel.

As penetration into the 9 A.M. to 3 P.M. market increases, Hannah will give up her
teaching position in a pre-school and concentrate on the ArtSphere. Hannah also paints
portraits on a contractual basis for customers (approximately $800 per month). This
activity will continue unchanged, but will take place on weekends when classes are not
offered. Paul Nash's artwork will continue as well, also with concentration on weekends.

Saturdays and Sundays are when students' and owners' artwork is displayed in the
Gallery; buyers and interested potential students are encouraged to come in the Gallery,
have a cup of espresso, and watch an artist at work.
2.1 Company Ownership

The ArtSphere is registered DBA jointly under the names of Paul and Hannah Nash.
Earnings are taxed according to the personal tax rate schedule.

Paul Nash graduated with a BFA degree from Boston University in 1977. He has been
painting since 1970 and teaching since 1980. His work has been featured at many group
shows and sometimes at one-man shows such as at the Court Street Gallery in Bessema.
Paul has sold seven pieces of his artwork during the past 12 months. Paul is also the
owner of "ArtSphere Productions" located in Beverly. "ArtSphere Productions" is
involved in film/video production and editing.

Hannah Rogerson Nash graduated from Bessemer High and attended Bessemer State
College, Rhode Island School of Design. She has extensive experience in painting,
specializing in portrait and still life. She has sold 11 pieces of her work during the past 12
months. Her work is known under her maiden name Rogerson. Her teaching skills are
widely recognized, having taught pre-school in Europe as well as locally. She is presently
employed at the Orchard School in Birmingham, AL. where she has been a teacher since
1993. In addition, Hannah worked from 1984-1993 as a self-employed photo retoucher.
2.2 Start-up Summary

Our planned expenses for our first full year are shown in the following chart and table.

Start-up Funding

Start-up Expenses to Fund $2,065

Start-up Assets to Fund $6,200
Total Funding Required $8,265

Assets
Non-cash Assets from Start-up $6,200
Cash Requirements from Start-up $0
Additional Cash Raised $0
Cash Balance on Starting Date $0
Total Assets $6,200
Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

Capital

Planned Investment
Principals $8,265
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $8,265

Loss at Start-up (Start-up Expenses) ($2,065)

Total Capital $6,200

Total Capital and Liabilities $6,200

Total Funding $8,265

Start-up

Requirements

Start-up Expenses
Legal (DBA Register) $25
Stationery, etc. $500
Brochures $300
Consultants $950
Coffee Maker $200
Cordless Phone $90
Expensed Equipment $0
Other $0
Total Start-up Expenses $2,065

Start-up Assets
Cash Required$0
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $6,200
Total Assets $6,200

Total Requirements $8,265

2.3 Company Locations and Facilities

The ArtSphere is located on the corner of Main and 1st Streets in Birmingham, AL. Total
square footage comes to 787, with two doors onto the street. The facilities at this location
are leased from the owners, John Smith and Andrew Abbot, at a monthly rate of $1,225.
Electricity runs about $50/month, and gas about $600 annually. The lessors have
indicated their intentions to sell the property and have entered into negotiations with the
owners of the ArtSphere. The asking price is $148,000. The unit is one of six units of 1st
Street Wharf Condominium Trust which has recently undertaken an extensive condition-
of-building study prepared by professional consultants. Current plans are to renovate the
1st Street side of the building including new siding, new corner boards, and paint. The
Trustees of FSWCT are committed to a high standard of maintenance.

Products and Services

The ArtSphere is expanding its offerings. Our primary focus is now on offering art
instruction classes. We will tailor our classes by market segment and time of day,
providing instructional opportunities during the morning and mid-day, after school
sessions, and evening classes.

We will have a wide range of art supplies available to complement student sessions as
well as for sale to the general public.

Additionally, the owners will continue to show and sell their own work in the Gallery, as
well as produce commission portraits and other work.

Market Analysis Summary

The offerings by ArtSphere require, by their very nature, an investment of time on the
part of the purchaser. Three customer groups have been identified based on the
availability of time on their part:
School-aged (over 10 yrs).
Retired/non-working.
Working/evening class.

This accounts for virtually everyone in Birmingham, AL older than 10 yet younger than
75. It would be more accurate to state that these people will seek, during their respective
free hours, some hobby, some pleasant, time-filling activity, or other form of relaxation.
The total figure of 16,353 accounts for virtually everyone in Birmingham, AL older than
10 yet younger than 75. Even though there are people older than 75 and younger than 10
who actually take art lessons, the market analysis should not be taken to mean that 16,353
persons in Birmingham, AL are in search of art instruction.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
School-aged 1% 1,666 1,683 1,700 1,717 1,734 1.01%
Retired/Non-work 7% 2,645 2,830 3,028 3,240 3,467 7.00%
Working/Evening Class 9% 12,042 13,126 14,307 15,595
16,999 9.00%
Other 0% 0 0 0 0 0 0.00%
Total 7.94% 16,353 17,639 19,035 20,552 22,200
7.94%

4.2 Target Market Segment Strategy

Our ultimate goal is to fill all of our scheduled class offerings and fully utilize our newly
expanded teaching space. To do that we have looked at the daily time periods when we
wished to teach, and then identified the market segment most likely to seek art instruction
during those times. We then tailored our class offerings to appeal to the interests and life
styles of those people.

We then priced the classes competitively for adults and children and then grouped the
lessons into prepaid monthly blocks to fit peoples' various budgetary needs.
4.2.1 Market Needs

There currently is a need in Birmingham for regularly scheduled, moderately priced,

locally sited art instruction classes, available at different times of the day. Existing
venues are either fully booked and unable to serve a larger market segment, are
membership groups, or are sideline businesses.

The people of Birmingham need more art instructional opportunities, especially ones
focused and tailored to the interests, skill levels and time availabilities of the students.
4.3 Service Business Analysis

Art instruction is offered in several ways:

Artists who teach classes

To supplement or support their own fine art endeavors.
Sideline businesses.
Poor setting, usually taught in "extra" or crowded space.
Limited class offerings.
Prices vary.

Private tutors
Very focused instruction for serious students.
Expensive.

Arts associations/museums
Offer classes to members or the general public.
Limited offerings.
Often taught by volunteers.
Prices generally affordable. May vary with membership.

Galleries
Employ artist instructors - classes are marketing tool.
Sponsor classes by artists currently displayed.
Class offerings often limited to gallery's genre.
Prices vary.

Schools and Colleges

Classes may be academia focused.
Travel may be necessary.
Time slot offerings may be limited.
Long term committment to class.
Prices may vary.
4.3.1 Main Competitors

Outside of the ArtSphere there are other locations in Birmingham where art lessons are
available:

ART SCHOOL OF BIRMINGHAM

This school is located in a room of the Professional Building at 1331 Milgray Lane. Paul
Nash has been teaching there in the evenings and on Saturday mornings since 1975. He
has room for about 12-15 and teaches a structured approach. Paul is well-known within
the town, having taught art on the local TV channel. The main thrust of his business
appears to be his portrait business which is located on School Street across from the Cafe
Roma. Lessons are sold in blocks of four for $56. Each lesson is an hour and one half.

Paul mentioned that his classes are generally booked up. He does not offer lessons during
the day.

The Art School of Birmingham is listed in the Yellow Pages, Nash's artwork is shown in
several local galleries, and as a teacher, he gives a convincing impression of
professionalism when talking about his teaching method.

BIRMINGHAM ART WORKS

Hannah Rogerson Nash has a studio located on the second floor of the same School
Street building which houses Paul Nash's portrait studio. Hannah has, using her own
description, a very unstructured approach to teaching art. She is willing to teach anything
a person might want to learn. Her Friday afternoons are completely occupied with
children, but other than then she is wide open. She did mention teaching two women and
a 12-year-old. No schedule of classes or fees is posted outside her studio door and she is
not listed in the Yellow Pages. She has placed a small ad in the local paper offering an
"Art Workshop." Within the same ad she offers "orchids, plants, & plant care" indicating
that art lessons are not her major line. She mentioned on the phone a price of $20 for a
two hour group lesson and $30 for a private lesson. Being able to offer a "private" lesson
would indicate a rather light teaching load.

BIRMINGHAM ARTS ASSOCIATION

Birmingham Arts offers a selection of four art classes during the day. They are described
in their news letter which is mailed out only to members. Enrollment in the classes does
not always reach the cut-off point of six in which case the class is cancelled. A typical
class is two hours one morning a week, and runs for six weeks. Cost is $84 for members,
slightly more for non-members. This works out to $7.00 per instruction hour.

There are also some courses offered in near-by Bessemer:

BESSEMER STATE COLLEGE

The Bessemer State College Community Enrichment Program offers several art classes in
the evenings. A typical class (Introduction to Drawing) is offered Thursday evenings
from 7:00P.M. to 9:30 P.M. and costs $68 for six sessions. Average cost works out to be
about $4.50 per instruction hour. Notification of these courses is mailed to all residential
addresses in Birmingham.
Strategy and Implementation Summary

The ArtSphere recognizes that the real product it sells is different from the art instruction
given. Helena Rubenstein is quoted as saying, "in the factory we manufacture cosmetics,
but the product we sell is called 'hope.'"

This thinking holds true at the ArtSphere. The product sold is viewed differently by
different buyers. A serious young student with potential may need special help in
compiling his portfolio when applying to art school. A retired 70 year-old woman may be
seeking a fun way to fill up an otherwise empty day. A stress-ridden executive may be
seeking solace and relaxation. Encouragement, technical advice, stress-relief, escape
from loneliness, self-expression, etc are just some of the products sold by the ArtSphere.
The owners of the ArtSphere recognize that art lessons can be had at less than $5.00/hour
in some state college evening courses. The ArtSphere cannot attempt to compete with
these prices. It is only by tailoring the "real" product sought by customers that we will
create and maintain a high level of sales.
5.1 Competitive Edge

There are many facets of the ArtSphere which make it a top-notch competitor in the art
class business, a few are outlined below:
All day multi-time slot schedule.
Classes tailored to market segment.
Two instructors.
Dedicated instructional space
Art supplies available on-site.
Gallery venue for student artwork exhibits.
High profile location.
5.2 Marketing Strategy

When comparing the market segment table below with ArtSphere's available capacity, it
is evident which direction the marketing thrust should take:Market Group Time Slot
Capacity
Instruction Hours
School-Aged (Over 10 yrs.) 3:30 P.M. to 5:30 P.M. 1,666
88 (11 hrs X 8 easels)

Retired/Non-Working 9 A.M. to 3 P.M. 2,645

240 (30 hrs X 8)
Working/Evening Class 7 P.M. to 9 P.M. 12,042
64 (8 hrs X 8)

The school-age market group with its potential market size of 1,666 has within the space
of a couple months of operation taken up nearly all the limited 88 teaching hours of
capacity for that time slot with some spill-over into the smaller evening class time period.
This latter time period in the evening should be the easiest to fill considering its potential
market of 12,042.

Clearly, the marketing strategy at ArtSphere needs to be concentrated on the biggest time
slot, the 9 A.M. to 3 P.M. period. As of this writing, nearly all of the 8 easels are
unoccupied Monday through Friday.
5.3 Sales Strategy

The ArtSphere has no sales force outside of its owners, Paul and Hannah, who will close
the deals with interested customers created by actions of the marketing strategy. Many of
the initial contacts will come via telephone inquiries responding to the offer of a free art
lesson. Whoever takes the call should draw out the calling party and jot down a brief
profile. Developing a sixth sense for the goals of the customer (stress relief, find new
hobby, etc.) is key. If a customer is looking for stress-relief, then peaceful surroundings
are essential. That potential customer should not be given his or her first free lesson
during a crowded time slot, but rather when things at the studio are quiet and less active.
Someone looking to escape boredom on the other hand should be scheduled when there
are more people in the studio. A conscious decision also needs to be made concerning
which teacher the caller is likely to relate to. If a caller does not come in for the offered
free lesson, a follow-up call should be made by one of the owners. There is a direct
relationship between the number of free lessons given and the number of people who will
sign up.

Directly upon completion of the free lesson, an unabrasive effort should be made to effect
a sign-up. If the person does not sign up, a follow-up call should be made. If Paul gave
the free lesson, Hannah should make the follow-up call. It could be that the potential
customer will respond better to the other teacher.

Walk-in inquiries should be handled in a similar fashion. Brochures containing

particulars and an up-to-date price schedule should be available in a box by the door.
Because of the studio's high-profile location with large picture windows facing onto a
busy pedestrian area, it is common for passers-by to look in. Good salesmanship will
result is developing an ability to differentiate the interested from the merely curious. It is
important not to be shy with interested parties. If the same person is noticed frequently
looking in the window, or picks up a brochure and scans it, one of the owners must make
a sales approach, even if it means opening the door and inviting the person in. Offer a cup
of coffee, try to form a rough profile and offer to set up a time for a free lesson.
5.3.1 Sales Forecast

It is assumed that Hannah's portrait contracts will continue at historical levels (1/month
@ ave. price $650).

Sale of Paul Nash's artwork will continue at historical levels ($3,600 annually, spread out
evenly).
School-aged art lessons represent only 88 instruction hours/week taking up the 3:30 P.M.
to 5:30 P.M. time slots each day (6:30 P.M. on Fridays). These slots are nearly all filled
now. It is assumed that these hours will remain full throughout the year. Assume 75 of
the possible 88 will be filled each week, four weeks/month at a sales price of $10/hour
lesson.

The retired/non-work art classes will begin to grow after the planned renovations
scheduled for January. Projections assume that price for four 90 minute instruction
sessions will be $79. Sales to begin in March starting with the one fully booked 90-
minute lesson daily Monday-Friday. These classes will have eight students each. A
second daily class will be formed six months later, and after one year, there will be a
third. This will bring this section of ArtSphere capacity up to 75% (four and one half of
six hrs/day, or 180 instruction hours out of 240 possible). Assume each month to contain
four weeks exactly.

This sector at the moment is practically nil. Growth depends on completion of

modifications to premises, and success in ArtSphere's marketing approach to this group.