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Blue Ocean Gallery
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  • anne Thank you alona. Good afternoon everyone. We’re really happy to share this business plan with you today. 6 months back we didn’t know what this would evolve into But what we’ve come up with in response to signals from the industry, the community and BOGs position, we are excited for this opportunity that has. So we’ll try to contain our excitement and present this proposal for Open Door Gallery.. anne We’ll take you through the challenges first presented to us and our initial reactions. Which then turned into great opportunities after conducting our market research, and MORE market research, creative brainstorming leading to innovative solutions. Encompassing this process will be our proposed Strategy (mission, Partnerships) Implementation (operations, employment, marketing, gallery design, products), Finances, and what your Future could look like.
  • Anne BOG, non-profits, DTES-took all of these and thought how can we address all of themanne -which led us to opportunities, and how an art gallery can address all of those challengesPower of art to transcend barriers. We see the gallery as a way to;Increase reputation positive feedback loop (enhance ESC, future bids, funding concerns, marketing). Uses DTES strengths (ABCDevelopment). ODG strengths (Thrive—well aware of the benefits that art as a medium for service delivery). (reduces scaryness of entry into new market)Enhance efforts, not duplicate or compete. (disconnections)Complement ESCStrengthen community presenceEnhance DTES art scene
  • Anne BOG, non-profits, DTES-took all of these and thought how can we address all of themanne -which led us to opportunities, and how an art gallery can address all of those challengesPower of art to transcend barriers. We see the gallery as a way to;Increase reputation positive feedback loop (enhance ESC, future bids, funding concerns, marketing). Uses DTES strengths (ABCDevelopment). ODG strengths (Thrive—well aware of the benefits that art as a medium for service delivery). (reduces scaryness of entry into new market)Enhance efforts, not duplicate or compete. (disconnections)Complement ESCStrengthen community presenceEnhance DTES art scene
  • Economies of scopeCapitalNetwork supply
  • Mark

Transcript

  • 1. Blue Ocean Gallery
  • 2. Blue Ocean:Self sustaining model;Enhance BOG efforts;Non-profit:Diversifying fund;Build Community;DTES:Job creation;Engagement;Challenges
  • 3. Blue Ocean:Retail Continuity Plan;Entry to new market;Non-profit:Funding concerns;Lack of marketing;DTES:Unemployment;Disconnection;Opportunities
  • 4. OverviewOpening Doors to the DTES Partner with socially consciousgalleries Provide DTES artists with space Sale of cards to local andcorporate businesses
  • 5. Market Analysis
  • 6. Fine Arts Market BC 260 art dealerships Tend to be small Canada Profits of $50,000: ⅔ Losses of $50,000: ⅓ Overall: Profits of $15,000
  • 7. Industry Average ExpensesOperatingExpenses• Cost of Labor• InventoryCosts• Rent• CustomerServiceCost ofGoods Sold
  • 8. Fine Arts Market Economic characterization Anomalous No reliable assessment of commercial value Risky investment
  • 9. Fine Arts MarketArt gallery fosters relationships and trustMedium for salesImportance of dedicated employee
  • 10. StrategySWOC AnalysisPartnerships
  • 11. Opportunities• Engage community• Marketing for BOG& partners• Diversify funding forBOG• Job creationChallenges• Establishedcommunity• Funding concerns• Employment• Retail continuityplan vs. BOGoperationsStrengths• Optimal location• Lower costs• High demand forspace• CooperativecommunityWeaknesses• Lack of networks• Lack of experience• Brand recognition• Sales/logisticsuncertainties
  • 12. PartnershipsLocal socially responsible galleries/shops
  • 13. PartnershipsThrive
  • 14. PartnershipValue From• Expertise• Artist connectionsValue To• Representative ArtworkExposure• ‘Community Map’
  • 15. ProductDiversificationIndustry AnalysisProductsValue Created
  • 16. Insufficiency in Art Sales Unpredictable Low Contribution Margin
  • 17. Greeting Cards Industry Retail $750 million 52% - Thank you &Birthday cards Wholesales 60 Companies Dominated by Carltonand Hallmark Target Market Women: 85%
  • 18. Product Diversification Art Pieces Retail Greeting Cards Wholesale Greeting Cards
  • 19. Thank You Cards
  • 20. Value Created Complement Blue Ocean Service Job Creation Enhance Exposure for Clients Artists Blue Ocean Gallery Blue Ocean Group DTES Art Community
  • 21. ImplementationsEmployeesMarketingGallery Design
  • 22. Employees Sales Coordinator Afternoon Hours: Gallery Operation Morning Hours: Business Development Customized Roles
  • 23. Marketing Target Markets Retail Art Pieces & Greeting Cards Wholesale Greeting Cards Active Marketing Strategy Events Art Carts Advertisements Promotions
  • 24. Online Marketing Gallery Website Social Media
  • 25. Gallery Design ESC vs. retail continuity plan Apparent retail space Large enough for samples Considerate of Blue Ocean clients Remodelling necessities
  • 26. CCSPWorkshopRoomCS P CSP
  • 27. FinancialsOperating ExpensesStartup CostsBreakeven Analysis
  • 28. Operating ExpensesArtistRoyalties, 0MarketingExpense, $2,500.00Insurrance, $2,300.00Cost ofLabour, $39,000.00LegalFees, $3,000.00AccountingFees, $3,000.00Delivery, $1,000.00
  • 29. Startup CostsStart Up CostLCD Screen $1,500.00Sales Software $200.00Graphic Design $1,000.00Furniture $3,000.00Remodeling $4,000.00Legal Fees $1,000.00Accounting Fees $500.00Total Start Up Cost $11,200.00
  • 30. 4-Year BreakevenType Product Units Sold/Month(First Year)Retail Art Pieces 8.8Retail Greeting Cards 84.2Wholesales Greeting Card Packages 4.9
  • 31. Revenue Necessary$-$10,000.00$20,000.00$30,000.00$40,000.00$50,000.00$60,000.00$70,000.00$80,000.00$90,000.00$100,000.00$110,000.00Year 1 Year 2 Year 3 Year 4 Year 5WholesaleCardsRetail CardsArt SalesGovernmentFunding
  • 32. Cumulative Profit$(20,000.00)$(15,000.00)$(10,000.00)$(5,000.00)$-$5,000.00$10,000.00$15,000.00$20,000.000 1 2 3 4 5CumalativeProfitsYears
  • 33. RisksLegal RisksFinancial RisksSecurity Risks
  • 34. Legal Risks Right to Publicity Moral Rights Right to Privacy Freedom of Expression Art catalogue: tradeoff
  • 35. Financial Risk Turn full time position into volunteer position toavoid the vast majority of operating expenses Last resort, terminate project and rent to othergallery or group of artists
  • 36. Security Risks Large items: theft conspicuous Small items: few on display, low inventory levels Low risk Install dummy camera
  • 37. Future Growth Event hosting Thrive program expansion Product differentiation ESC workshops Job creation Online Shop
  • 38. Blue Ocean Gallery Opportunity for great social benefit Enhances the DTES community and BOG’sconnection to it Financially profitable
  • 39. Thank YouAnne Simpson, Mark Simons, Nereus Joubert, Tingting Zhang
  • 40. Implementation – saleschannels Art Retail cards Wholesale cards Active community outreach
  • 41. Additional Considerations Legal entities Marketing budgets Grants & funding
  • 42. Change ManagementClients BOG clients currently use space that is occupiedby art gallery Will often traverse it once gallery is in space Computer room in close proximity Disruption possible inadvertently and deliberately
  • 43. Change ManagementSolution Clear communication for reason Stress benefits, generating casual employment Ensure gallery does not detract from client’samenities
  • 44. Change ManagementCurrent Employees Different from any endeavor BOG has undertaken Should not increase load on other employees orcause inconvenience Ensure gallery nor perceived as a hindrance Facilitates BOG’s goals