House of Nu Business Plan

2015 House of Nu Business Plan Sheina Macbeth
Executive Summary
House of Nu gallery is a social space that is intended to host artist’s exhibitions and events. There will be a
particular focus on hosting, showing and selling student works alongside established artists pieces.
Coming from a Fine Art background I have noticed that it is challenging for undergraduate students to gain
the exposure they need to create a platform into the art industry. It is a difficult and a demanding process to gain
experience and contacts in the art business, and I am not personally aware of many extra facilities given to students,
to aid and develop their practices through their duration of study. This includes Student Unions, internship
placements and employment days which are designed to encourage the continuation of their work after graduation,
within the artistic sphere. Also Plymouth Collage of Art have one or two public exhibition and studio spaces, that are
specifically for their students, which in my experience seem more successful. This is due to the site not being
confined to the school campus, but instead a public area, such as in the town square, between the college and the
Hoe – a beloved park area by the people. Amongst the student specific gallery spaces I am aware of, there is the
small in size CHELSEA space on the University Campus in London, and though successful for the Universities purposes
is perhaps not necessarily gaining a more diverse audience and platform
After some careful consideration and planning I have decided to base it in London, where the culture is
largely diverse, and potentially in or near a more ‘arty’ area. As long as it is in a fairly central/easy to get to area,
then broadcasting the space and events well will make up for not being directly in the ‘art’ area – as it is likely to be
more expensive perhaps. I would include social media in so as to gain interest and initial response form potential
artists – either through their university, or the students directly (a sort of agency aspect). Some University
cooperation would be beneficial – to gain some start up contacts to fulfil the idea of getting the students work
exposed to the industry – the ‘who you know’ part.
I have found a space through research for producing our own London show in our final year and project, that
would fit the bill, however it is linked with an agency, appearhere.com, mostly used for pop-up shops with the
minimum letting of a week and maximum supposedly indefinite. I do not have arrangements with them, nor do I
claim any actual term of hire with that space, it is purely being used as an example.

The Vision and its Mission Aims
- To have a gallery space to exhibit and host student works, functioning as a platform and public exposure to
host and sell artist pieces, at an affordable price.
- To provide a service for art students similar to an SU, that gives priority and directs most attention to the
individual and acquaintances, in order to show the next generation of artists.
- To encourage participation and social participation within the artistic sphere. Through exhibition seminars,
events/film screenings and arts and craft sessions that reflect exhibitions. Also an opportunity to attend
adult sessions where both undergraduate artists and the public can attend a social drinking art making
activity.
- An important key to success will be to establish relationships and contacts with various universities to create
easier and trustful bonds with student artists and their faculties. This is to develop a trusted source of
clientele, in order to host exhibitions, sell works and gain sponsorships.
- However some of the general public may not necessarily be interested in buying the original pieces,
particularly if on a larger scale, but may prefer prints at a cheaper price and smaller size. So having artist
profiles and portfolio information will be key, and also various prints to purchase.
Business Model Canvas Input
Customer Segments:
- Target market aimed at artists, collectors, art enthusiasts which include the general public. Plus those who
are interested in cultural activities such as tourists.
- Prioritize students wishing to gain exposure for their practice in a cost appropriate and social environment.
- Serve as aid to students who are in or who have just graduated university and offer a similar hand, but in a
professional manner and environment.
Value Proposition:
- A professional gallery and events space to execute shows. Have alcoholic beverages at appropriate and
targeted events alongside regular adults’ arts and crafts sessions.
- Students and Artists: To provide experience as an artist and potentially curating. Offer a proposal scheme
which is designed to encourage student lead shows and best received the idea will be given the opportunity
to be a lead curator.
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- Buyers and the general public: Will be given a chance to purchase current work from young artists of the
future at a reasonable, realistic and self-satisfying price. Plus the opportunity to engage in a social
environment where they can talk to the artists, such as at the PV’, and meet those who they are
supporting/taking an interest in.
Customer Relationships:
- Optimise the use of social media platforms to regulate customer/clientele information and marketing.
- Have a membership program, with a sign up scheme, which can be accessed in the gallery or online. This
provides discounts on drinks at certain times and prioritises the induvial for events if they so desire.
- A guest book for those bidding and this provides us with mailing information; for those who wish to know
more about the artists represented, and what other works they have available.
- The gallery website will have links to the varied social media platforms used, and have brief artist profiles
and images available with links to their own pages for more detailed information on what they do
Website will require data protection, and certified safe online payments.
Channels:
- Retail space used as a gallery
- Online presence with information on exhibitions, the gallery and the artists with available pieces to sell.
- Personal communication with artists and buyers to inform about hosting events and exhibitions. Also via
multichannel communication, such as by telephone, skype and appointment.
- Payments will be available to be made online, however buyers will be encouraged to talk directly to the
artists. This is because we are the mediators, and encourage handling payments in a direct correspondence,
as each art work sold is personal to the buyer and the aim is to treat it personally.
Revenue streams:
- Host exhibitions and events to sell works through a silent bidding system.
- Sponsors from those interested in both the company and the artwork/artists, or gain sponsorship in the
form of products such as refreshments for the events. Donations of works will also be kindly accepted to
have in a permanent collection in the gallery, to minimise the in-between space in waiting to get artists to
participate in exhibitions.
- Artists will be asked to pay us a percentage of commission and a small entrance fee, depending on the size of
work and volume of them. The artist will receive payment for to displaying them for extended periods of
time.
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- Bidding system to provide each piece with a respectable reservation price (the lowest amount it can go for)
e.g. minimum reserve price for is £5 – all will vary on size, quantity, quality and materials of works. No
unrealistic prices if asked will be accepted. Through marketing we will find out what people would be willing
to pay for the works of art. The silent bid system will be designed so the buyer cannot see the reserved price,
and if ask we say we don’t know at this time, but offer an average bidding price. Coloured stickers will be
used by piece and the bidders will be asked to write down their price, along with their contact information.
Once bidding has closed we let them know who has successfully purchased the piece, whilst the others will
be given the artists details to observe their portfolio for other works. Buyers will only get their works once
exhibitions are over.
- At the events there will be a number of refreshments ready for guests for free, but will be encouraged to use
the bar – have specials on 2 for 1 etc. on the drinks that reflect the show. E.g. if it is a show culturally
specific, like Mexican, then tequila induced cocktails will be the specials, and therefore cheaper- will help
with the marketing
- Adults arts and crafts sessions = available whilst exhibitions are still up, and the projects provided will relate
to theme of the current exhibitions, e.g. the theme is moon landing they will be given examples of what they
can do, but free reign on their imagination, could be a copy of the flag not moving on the moon etc. these
sessions will start off once or twice a month, depending on the feedback from them. They are aimed to be
fun for adults. It’s ‘adult’s’ arts and crafts sessions as alcoholic beverages will be available and encouraged
for the social activity. They can keep the works – or donate if they wish, but the sessions will be recorded in
social media, such as Instagram, to keep those interested informed and aid in marketing the activity.
Key resources:
- Technical needs  for internet usage, the website and social media platforms, as well as data-basing and
archiving, the exhibitions, the works, the artists and the clients. Regular website updates, blogging,
Instagram and videos, tweets about the events and artists and any sponsors. Customer discussions boards or
direct IM with customers in order to touch base and maintain a connection.
- Physical Labour decorating, maintenance as well as putting the works up and take down of the exhibitions.
Also invigilating the exhibitions, receiving clients and providing information. Bar staff and barista.
Key Partners:
- Crowdfunding for the initial ascertaining of the space, possible loans or investments from friends/family or a
bank.
- Market to a university, one at first then more, to gain awareness for students and create relationships with
them as artists and gallery.
Key Activities:
- Strong marketing with focus on social media applications
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- High quality service, to exhibit art works and artists, provide a social environment and art sessions for fun, as
well as selling. Selling works, selling drinks, selling art.
Cost Structure:
- Logistics  alcohol license to sell, computer and website design – with mobile version, stationary and
general equipment, H&S insurance, RENT and BILLS of space – electric, water, broadband and gas – Land
phone, council tax, materials and advertisement, event stuff – catering and bar staff/stuff, postage and
wrapping of sold artworks, admin fee and commission of sales
- People  temps or volunteer work, on top of the permanents myself and one or two others, maintenance
personal for the DIY – again would be I at the beginning.
More about the Company
There will be at least one exhibition on every month – sometimes more depending on themes etc to rotate
works. With a potential two events per month, one for a PV and social and one for selling oppurtunities – amongst
the events there will be at least one fundraiser per annual, perhaps two or three, or the opportunity to
donate/sponsor at the PV events, to support the charity by supporting House of Nu. Evening classes of adults arts
and crafts will also be up once or twice a month, dependant on response and material and artist availability. We will
provide the materials; only ask a small sum to go towards cost and time.
Company Ownership
The company is a sole trader/ownership. There will be no other partner to be affected in case of failure, so I
will be personally liable for any debts – ‘unlimited liability’. This is beneficial as generally sole trader/ownerships are
small companies or businesses that are somewhat easy to set up, and being sole owner, I will not have to consult
anyone on business ideas. That is not to say I won’t at all, House of Nu will value the opinions of its employees, but I
will have the final and overall decisions. As there will only be very few employees, due to its small size, the wage bill
will be lower, with a hands-on approach from me and the staff to keep overall control. I have had experience in
setting up and hosting events and exhibitions, as well as working in a bar, which will help with this company.
However, running a business is still a new situation, but I believe you learn as you go and confidence will grow.
Managing the Financials
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The current plan is for a maximum of two paid staff members, who are or will be trained in the basics or
bartending and barista. Volunteer placements will be offered, but they will only be for a short time a day, and part
time. This will give the otherwise fulltime employees, as well as me, opportunities to be flexible with their schedules.
There will be a minimal salary during start up, and then a slight increase as the company settles in the area. However
the wages not necessarily be fixed, as we will in a sense be working to part of the salary coming from commissions.
Company location and Facilities
House of Nu will be situated in central London, on a street with ‘rich history’ – Piccadilly Street. It’s stationed
near both Hyde Park Corner, and Green Park, allowing for a substantial amount of footfall and therefore easier
accessibility for all, particularly in capturing the tourists and those out to explore the city and its diverse culture.
At this moment in time, 90 Piccadilly is a rentable space only, and run by a charity, Resources for Autism. So there
are condition of rents – which goes directly to the charity – to display (market if you will) their logo, name and
charity number on one of the gallery windows, and display their flyers inside, and any other promotional materials.
The gallery will be smaller than some, but as the company grows as will the space. There are two floors, an
open and corner window
ground floor (the entrance) and
the basement – or downstairs,
where the bar space will be in
one of the walk-in vaults from
the central area.
6

The space itself allows for openings at:
Monday to Saturday: 9am to 11pm
Sunday: 10am to 6pm
However, those would not be ideal in having the gallery open itself. It would need to be similar to that of the
general retail opening times of that area, so more like:
Monday to Saturday: 10am to 6pm
Sunday: 10:30am to 4pm
And times may vary when events are being held, as they would need to go on later.
As touched on in the Key Activities, a strong marketing – PR particularly – will be beneficial and provided,
especially as according to the website, despite the footfall there is not much retail, so will need to be found.
Market needs and Segment
- The need for students to get their work seen in a trustworthy, reliable and friendly environment is
apparent to me. Especially a place that will also treat them and their work as professionals, treating
them as artists, not just student artists. I have noticed in my experience a significant difference, even
between undergraduate and postgraduate treatment and opportunities.
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Types of Competitors
- Galleries and museums: spaces for the exhibition of visual art. These can be public or private, particularly
where museums are concerned, and often distinguished by a museums ownership of a collection. For
example, the Saatchi gallery, or the British Museum.
- University gallery spaces: specifically for the university, though not always to put the art students first,
but to put university events first, to gain exposure etc. for the university itself and not necessarily the
students, unless MA. For example, the Westside gallery, and Chelsea Space.
- Online Galleries: are there to do the same as any gallery, only on the web and through marketing. Mainly
to promote sales and commissions of works. For Example DegreeArt website, “Best online gallery for
investing in the Talent of Tomorrow”
Marketing and Sales
Start-up marketing
- Develop relationships- with universities and other galleries interested in supporting the companies
vision and mission. Also with varied London culture info sites and newspapers, website, with social
media platforms pre-set up. This will be required for when starting to crowdfund initial funds. Will use
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flyers and word of mouth, so still a physical and analogue side to marketing as well as the online
presence
Marketing strategy
- Constant and strong, but independently enacted as much as possible, to encourage a personable
essence. Some money will go towards local newspapers, e.g. Time Out London, and online newspapers,
but mostly social media based as that is where most of market segment is – especially in this day and
age.
Long term Marketing
- Continue social media strategy and influx in market during events and seasons. Particular focus in
marketing in June and July, around the time of Degree shows.
Sales
- We will have membership opportunities, for discounts and special events etc. Most effort will go into
dealing with the student artists and procuring a relationship with buyers in art, for contact and platform
purposes. During events and the varied seasonal times, there will be specials on in order to gain more
traction in the market. An example would be 2 for 1 on the house cocktails. These efforts will be
continued during the year, with the emphasis on providing a personal touch to the services.
Contingency Plan
- Failure to ascertain artists and artworks in time:- will have start up pieces donated by peer student
artists such as Eleanor Man. This would enable exhibitions to take place and be marketed, and works can
be rotated to showcase curation abilities.
- Technical issues:- will inform people of the other social media sites to visit, or speak directly through
other means
- Natural disaster:- it is a period building, so damp is a potential issue. We would have regular safety and
maintenance checks, should there be a problem the gallery will close off the affected area and notify
customers there is an issue as well as getting it seen to as soon as possible
- Additional cost:- will have to be covered by owner, unless can be sponsored through fundraising
- Overflow of people:- small spaces (potential H&S issue) a form of security/bouncer on the door for
certain events. We will need employees to perform as type of security regardless, to keep an eye on the
visitor flow. We would invite only a certain number to events with a Disclaimer for H&S and anyone who
wishes to complain about it being ‘cramped’
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Appendix
Profit forecast – there will be a loss in the first year
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Rent 7,076 7,076 7,076 7,076 7,076 7,076 7,076 7,076 7,076 7,076 7,076 7,076 84,91
2
Salary 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,00
0
Security 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,00
0
Broadband 30 30 30 30 30 30 30 30 30 30 30 30 360
Staff Ref.
& Sundry’s
1,000 700 700 700 700 700 700 700 700 700 700 700 8,700
Marketing 50 25 50 25 50 25 50 25 50 25 50 25 450
Entry fee
for art
work
400 400 400 400 400 400 400 400 400 400 400 400 4,800
Sales 2,500 2,500 2,500 3,000 4,000 4,000 5,500 5,500 4,000 4,000 4,000 4,000 98,00
0
Maintenan
ce
100 100 200
Fundraiser
events
3,000 4,000 4,000 4,000 4,000 4,000 5,000 4,000 4,000 4,000 4,000 4,000 48,00
0
Materials 30 30 30 20 20 20 20 20 20 20 20 20 270
5,900 6,900 6,900 7,400 8,400 8,400 10,90
0
9,900 8,400 8,400 8,400 8,400 98,30
0
Total 12,78
6
12,36
1
12,38
6
12,36
1
12,38
6
12,36
1
12,48
6
12,36
1
12,38
6
12,36
1
12,38
6
12,36
1
10

-
6,886
-
5,461
-
5,486
-
4,961
-
3,986
-
3,961
-
1,586
-
2,461
-
3,986
--
3,961
-
3,986
-
3,961
11

12

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References
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- Web links
https://www.appearhere.co.uk/spaces/piccadilly-boutique
http://www.lovschall.net/tools/business-model-canvas-powerpoint-template/
http://www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev1.shtml
Top 25 social media platforms
http://60secondmarketer.com/blog/2010/04/09/top-52-social-media-platforms/
Business model canvas
http://youtu.be/_4MHqyf4Vw0
http://www.fontspace.com/nicks-fonts/park-lane
http://www.fontspace.com/the-fontry/fha-condensed-french
- Bibliography
Gibbons, J. (2005). Art and Advertisement. I.B Tauris.
Holt, D. How Brands become Icons: The principles of cultural branding. Harvard Business School Press.
Lois, G. Damn Good Advice (for people with Talent!). Phaidon Press Limited.
Megicks, J. B. (2010). Marketing Planning. Financial Times/Prentice Hall.
Schubert, K. (2000). The Curators Egg: the evolution of the museum concept from the french revolution to the
present day. One-Off Press.
Winkleman, E. (2009). How to start and run a commercial art gallery. Allworth Press.
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