Highlights from the New York Foundation for the Arts Boot Camp for the Performing Arts: Financial Literacy Workshop

Highlights from NYFA Boot Camp for
Performing Arts: Financial Literacy
November 9, 2015
Stephanie Spindell
Spindell Consulting

Contact Info: Spindell Consulting
Spindell Consulting
LinkedIn
Facebook
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Email: stephanie@stephsconsulting.com
Phone: 917-306-2913

Consultant, Founder-Spindell Consulting
Experienced finance professional
Arts & Culture enthusiast
Ex dancer
Dance educator
General educator
Stephanie Spindell│Spindell Consulting│stephanie@stephsconsulting.com│www.stephsconsulting.com│November 2015

Experienced finance professional
30 years working with businesses including
arts/artists, nonprofits and corporate
MBA Finance from NYU
Certificate NFP Financial Management & Reporting
Mathematics BA, dance minor

Creative experience
Over 15 years dance training
Dance teaching
Dance Education Lab trained teaching artist
Musical training

Photo Album
by Stephanie Spindell
Assess Business & Financial
Effectiveness & Strength
What does Spindell Consulting do?

Spindell Consulting: Services
Help clients to develop more effective and
financially sustainable businesses
 Financial Planning & Budgeting
 Business & Financial Strategies
 Assessments & Effectiveness
AND more

Artists as entrepreneurs

Being in “business”: to do list

“SMART” goals

Opportunity Cost
Weigh it with happiness

Expected Value

Budgets-What are they?

Budget Steps: Parameters
- What’s the purpose of my budget?
- Timeframe: ”I will accomplish this by 2016”

Budget: Identify expenses
Try to keep good records
Personal vs. business- SEPARATE

Expenses: Records
Why bother?

Business expenses-deductible? (IRS)
Is it part of your art biz?
IRS Schedule C:
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
(See Resource List)

Additional tax resources
IRS
SBA

Identifying Expenses: Fixed vs. Variable

Budget Steps: Estimating Costs
• Be realistic
• Not a wish list
• Write down your assumptions!

Steps: List Funding/Revenue Items
What is revenue for art nonprofit org or project?

Budget Work?
1) Make more $
2) Cut your expenses

What is Profit?

Budget: What is “In kind”?
Noncash Donations
Voluntary
Unconditional
Usually goods, facilities/rent, services

Where on budget: “In kind”?
Expense AND same amount revenue line item
WHY show in kind?

Budget Variance
Am I operating within my budget?

Variances & adjustments-when?
Continual, repetitive process

Saving & Investing-why?
Planned and unplanned needs

Saving-Alternatives?
Tapping credit or retirement money
Taking jobs that may make you creatively
unhappy

Saving Tactics
“Emergency fund”
Automation

Investing: Time Value of Money

Deciding upon investments-how?

Investments: Liquidity
Short term investments:
Checking
Savings
Money Market
CD
Etc.

Financial Statements
Profit & Loss
Balance Sheet
Cash flow

Profit/Loss Statement: What’s breakeven
1) In P/L statement: When net income is ZERO
2) In particular product/service:
“Point where sell enough to cover total fixed costs”

Breakeven example
In other words I recoup my costs and
will start making profit when I enroll more than
110 students

Profitability, sustainability
Reducing fixed is often difficult
Examples: ways to reduce costs

What if your biz is losing $$$?

Balance Sheet-What’s the fuss?

Financial Statements: Cash Flow

Cash Flow
Note: Due to accounting principles, don’t
mistake income (revenue) for cash!

Cash flow budget: steps

What to do about cash deficit

Business plans & models
Begin with idea, passion, vision
To sustain, you need MORE

Business Plan
Outlines, communicates biz/project to
investor/funder
A selling and storytelling doc for you
Your future business on paper

1) Exec. Summary
All components (1-7) shortened version
Problem or need addressing
Brief project description
Project funding and how
Brief history of co/project
etc

What is a Business Model

BUSINESS MODEL CANVAS

Pricing for Profit?

Pricing/Revenue considerations
Are you selling yourself short?
Compare prices

Highlights from the New York Foundation for the Arts Boot Camp for the Performing Arts: Financial Literacy Workshop

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