Have you considered writing up an official business plan for your art biz? Below is an outline of a basic business plan to get you started.
- Cover sheet – Tell the reader the name of business and what is the plan for?
- Statement of purpose / Executive Summary – You will write this last as it says what all the reader is looking at in a brief summary
- Table of contents
I. The Business
A. Description of business – Tell reader about your art and the history of your business
B. Marketing – Who will be purchasing your items & how will you let others now of your work? Will you do t-shirts? Have a webpage? Brochures etc… Target customer demographic information
C. Competition – Who are they and what do they offer that you can/can not do better then they are currently offering?
D. Operating procedures – How will the work be done? Will you be a sole proprietor? Or other?
E. Personnel – Who will do the work? Job Descriptions
F. Business insurance – How will all business expenses be covered in an emergency that would be covered by insurance?
II. Financial Data
A. Loan applications – Any that you have applied for, or wish to apply for
B. Capital equipment and supply list – Inventory of all materials
C. Balance sheet – How much money do you have available? How much money do you owe? Regularly pay out?
D. Breakeven analysis – How much do you need to sell, what you need to pay out in order to break even?
E. Income projections (profit & loss statements)
Financial Goals for 3 years from now
Detail by month, first year
Financial Goal for each month for the next year from now
Detail by quarters, second and third years
Financial goals for each quarter
Assumptions upon which projections were based
Back up your goals and expectations with facts
F. Cash flow – How will you be sure that there will be enough money to cover all expenses? Will you keep your day job?
III. Supporting Documents
A. Tax returns for last three years – If you are a sole proprietor have your last three years taxes on file. If not a SP, then taxes of all principal personnel responsible for the financial aspects of the business.
B. Copy of proposed lease or purchase agreement for building space – If you have a separate space to create, other then in home, copy of the lease or mortgage for space. If is in the home, copies of rent, mortgage receipts
C. Copy of utility bills
D. Copy of licenses and other legal documents
E. State Business License
F. Property tax information
G. Copy of resumes of all principal parties. If sole proprietors have your own resume on file
H. Copies of letters of intent from suppliers, etc
I. Who will send you supplies?