It is a difficult transition when you think about earning revenues from your art, compared to performing the art to showcase your creativity. When you enter into the business world, there are several aspects that you need to consider. If you do your homework correctly, you might not have a hard time, unlike many other people.
Your undefinable contribution’s financial aspects can be painful to focus on, but you will take the guesswork out of your life by doing so. This way, you will figure out how much you need to earn or invest and eventually build your goals. Thus, you must start by assessing the profit and expenditures.
- Assess the Profits and Losses
It sounds hard, but it’s pretty elementary. You should list all the art that you wish to sell or have sold in your locality. Then sum it and call it “total revenue.” Next, you must list all your expenses. Fixed costs are expenditures that have to be considered no matter what and do not fluctuate with demand. However, with demand, variable costs rise or fall.
You are a ‘regular artist’ if you have more expenses than sales (negative Net Income). Securing a good brand image or earning fame is difficult and requires inherent strength and creativity. However, most entrepreneurs are not shown these attributes, who are impatient and lack motivation.
Pretending to be effective will never help you turn things around when you suffer huge losses. Add a contingency for wasted materials and failures if you plan to make estimates or come up with a budget.
As of 2018, the global art market was valued at 67 billion US dollars. As you can imagine, if you play your cards right, you will definitely succeed in your endeavor. If you are currently working on financial or accounting assignments, the points stated here will help. If you find the questions to be difficult and wonder, “Who can solve math word problem?” you can seek professional assistance.
- Conduct Market Analysis
Before you take your steps, you must conduct market analysis. Some of the aspects that you need to consider are:
- What is my niche?
- Who are my potential customers and what is the economic condition?
- What are my customers’ shopping and buying preferences?
- Who is my competition?
- What are my competitors’ strengths and weaknesses?
- How large is my business?
In order to know about the trends and acquire market information, you need to study a lot. You have to acquire information from social media sites like Facebook, Instagram, Twitter and official company websites. Next, you have to pin point target customers based on: Age, Income, Gender, Location, Occupation, Education level, etc.
If you wish to gather valuable information, you can check out The Bureau of Labor Statistics, The Census Bureau, State and local commerce websites, etc. You will get to see interesting facts and figures, company performances, sales and revenue, shares, stocks, number of employees, and much more.
For in-depth competitor analysis, you must seek the help of SEMRush, Builtwith, Google AdWords Keyword Planner. You will get to see real-time updates. If you are working on Data Science projects, you must rely on these sites. And if you face any issues, hire statistics or math homework solver.
- Look for Funding
Approximately two-thirds of companies will survive two years, half of all companies will survive five years, and one-third will survive 10 years. The longer a company stays in business, the more likely it will flourish. Thus, the target is to survive the first few years. And in this regard, funding might help you out immensely.
You might list all the items you need, and then decide how you’re going to pay for those items. You may not need funding for your business to thrive and be perfectly fine with everything you have so far.If not, this section will still assist you in exploring your objectives.
Some of the popular sites for artist grants include:
- CaFE (CallForEntry.org)
- Americans for the Arts
- Harpo Foundation
- Puffin Foundation
- Artist Grant
- NY Foundation for the Arts
- National Endowment For the Arts
However, there are other options as well. You can raise funds by winning contests. Alternatiely, you can create a GoFundMe account, a new crowdfunding way for supporting your startup. An entrepreneur on a crowdfunding platform will put up a detailed overview of his business. He will mention his company’s goals, plans to make a profit, how much support he wants and for what reasons, etc. If the consumers like the idea, they will read about the company and donate money.
- Spread Out the Word
Now, you have to secure leads or customers to whom you will sell your products. For this, you have to be active on social media platforms and also spend money on promotion. With Facebook, YouTube or Instagram at Your disposal, you can easily carry out this step. However, you must make sure that you opt for organic promotions and not buy followers, likes, etc.
Once you have some fans or followers under your wing, arrange for the following activities:
- Come Live on Facebook or Instagram
- Share stories
- Help your community with advice or answers
- Reveal exciting plans
- Showcase some of your artwork or release teasers
- Offer shoutouts to the members who engage more
- Arrange for art competitions
- Provide giveaways upon reaching milestones
These activities will help in creating a bond with your customers. You can also be part of art community fans. The community members will help you progress your career.
- Understand the Shipping Business
Last but not least, you would want to deliver the products successfully to your customers. For this, you have to understand the shipping business. You must understand shipping costs, speed, services, destination, etc. High shipping costs are the primary reasons for cart abandonment. As per Statistia, people letting go of the products due to high delivery charges were found to be 63%.
Thus, you have to come up with an effective shipping strategy and know your carriers. This depends on the products you wish to sell, and whether you would opt for USPS, FedEx, UPS. For instance, you can take advantage of USPS’ free Priority Mail Starter Kit when setting up a PO box. Moreover, FedEx Small Business is designed for startups. You get to enjoy numerous benefits, such as a rewards program and Packaging Help Hub.
Finally, you can negotiate your shipping rates. You can apply benchmarking, which focuses on the dollar amount and the volume you ship. On the other hand, cross-modelling takes a complicated approach. It needs the particular attributes of your shipments and an understanding of where the carriers have the highest profit margins.
These are some of the steps that you need to go through before you get into the business. But, you need to continue doing the research work, so that you can form better business plan and take care of the expenses.
Author Bio: Robert Smith is a digital educator, and academic counsellor working on behalf of a reputable firm in United States. He shares tips for startup businesses and how to manage operations within a given budget. At present, he is associated with MyAssignmenthelp.com, where he supervises marketing and business management assignment.