This document discusses business models for arts organizations. It begins by asking what a business model is, and provides definitions from experts that describe a business model as the rationale for how an organization creates and delivers value. It also describes a business model as an intentional arrangement of resources. The document then discusses four common problems organizations face - obtaining capital, facilitating exchanges, connecting with audiences, and achieving net revenue. It argues that organizations should focus on solving problems, not just relying on particular tools, and provides several examples of how arts organizations have addressed these problems through their business models.

1. The Art of the
Business Model
Andrew Taylor
Director, Bolz Center for Arts Administration
Wisconsin School of Business
www.bolzcenter.org
ataylor@bus.wisc.edu
2011 Arts Enterprise Summit

2. About Me...

3. About Us...

4. The Art of the
Business Model
Andrew Taylor
Director, Bolz Center for Arts Administration
Wisconsin School of Business
www.bolzcenter.org
ataylor@bus.wisc.edu
2011 Arts Enterprise Summit

5. A Hammer or a Sponge?
IMAGE: Flickr photos by Kaworu Koneru (hammer), leshoward (sponge), eriwst (frame)

6. ?
What the heck is a
Business Model

7. ?
What the heck is a
Business Model

8. ?
What the heck is a
Business Model

9. ?
What the heck is a
Business Model

10. 1
There is only one
business model:
reliable revenue that
exceeds expenses.
Clara Mi"er, Nonprofit Finance Fund

11. 2
A business model describes
the rationale of how an
organization creates, delivers,
and captures value.
Alexander Osterwalder & Y Pigneur
ves
Business Model Generation

12. 3
A business model is
an intentional arrangement of
artisans, audiences, and tools.

13. So, let’s talk about tools....

14. Limited Membership Sponge
Liability Fiscal
Sponsorship Dues
Company Leasing
Tickets
Credit & Debt Cash
Box Office Sole
Ownership Proprietorship
A Van Tax Status
Twitter
So, let’s talk about tools....
Hammer
Hardware Studio Space
YouTube & Software

15. “People don’t want to buy a quarter-inch drill.
They want a quarter-inch hole.”
Theodore Levitt
IMAGE: Flickr user Cayusa

16. Tools vs. Problems
IMAGE: Flickr user Whatknot

17. “If you only have a hammer,
every problem looks like a nail.”
Abraham Maslow (paraphrased)
IMAGE: Flickr user bitzcelt

18. So, let’s talk about problems....
Are you
kidding me?

19. “The man who knows how
will always have a job.
The man who also knows why
will always be his boss.”
Ralph Waldo Emerson

20. 4 Problems (of many)
• Capital
• Exchange
• Channels
• Net Revenue

21. 1 Capital.
PROBLEM:
How do I gather the space, equipment,
and wealth I need to do what I want to do?

22. Buy
Build 1
Borrow
Capital.
PROBLEM:
Receive (gift)
Rent
How do I gather the space, equipment,
and wealth I need to do what I want to do?

23. Sneakers and Studios

24. Loveland: Detroit by the Inch
www.makeloveland.com

25. Loveland: Detroit by the Inch
www.makeloveland.com

26. Social Impact Bonds
Cooperatives
Fiscal Sponsorship
Low-Profit Limited Liability Company (L3C)
B Corporation
Micro Finance Series LLC

27. 2 Exchange.
PROBLEM:
Who pays, for what, for whom, and how?
...and for how much?

28. Like Netflix, but for theater
www.acttheatre.org

29. ACT Pass

30. Sloup in St. Louis
sloup2122.blogspot.com

31. 3Channels.
PROBLEM:
How do I connect what I do
or what I’ve made to someone else?
or...What are the paths to successful exchange?

32. Etsy.com

33. Regretsy.com
(where DIY meets WTF)

34. Direct from the Farmer

35. Roadside Culture
www.wormfarminstitute.org

36. 4 Net Revenue.
PROBLEM:
How do I consistently earn
more than I spend?

37. Earn
More 4 Net Revenue.
PROBLEM:
How do I consistently earn
more than I spend?
Spend
Less

38. Spend Less.
(or...spend better)
The rise of the relentless spendthrift.

39. Delicious Monster
www.delicious-monster.com

40. Square
www.squareup.com

41. 4 Problems (of many)
• Capital
• Exchange
• Channels
• Net Revenue

42. Start with the problem,
not with the tool.
IMAGE: Flickr photos by Kaworu Koneru (hammer) and leshoward (sponge)

43. “Talent hits a target
no one else can hit;
Genius hits a target
no one else can see.”
Arthur Schopenhauer

44. “Master your instrument,
master the music,
and then forget all that
and just play.”
Charlie Parker

45. Thank You.
Andrew Taylor
ataylor@bus.wisc.edu
www.bolzcenter.org
www.artfulmanager.com