Agenda and notes from member meeting January 24, 2019

1. A2 SOCIAL HOUR
January 24, 2019

2. WELCOME
New members
New resources
Photo Booth
Fiber Arts
Screen Printing
Props & Thanks
Kyungmin Team
Deskie Team
Shop Lead Team

3. AGENDA
Docent Program
Accounts Receivable
A2 Futures
Other e.g.
Cool member updates

4. DOCENTS
•A2 is creating a cohort of “docents”
•Docents key role is to lead group tours
•This is a 1099 paid role, fee for service
OVERVIEW

5. DOCENTS
• Serve as group tour guides, providing a welcoming atmosphere
and serving as Artisan’s “front-line” or main human
representatives.
• Serve as interpreters of [Artisan’s] member studio exhibitions,
helping to give the visitor a deeper understanding and
appreciation of the member artwork and role artisan’s plays.
• Docents provide marketing support?, providing essential
information about membership offerings and limitations, costs
and opportunities.
ROLE

6. DOCENTS QUESTIONS?
• What is training plan?
• Is there an opportunity for member
input?

7. ACCOUNTS
• Artisan’s runs about a 24 percent non-collection rate across
monthly memberships and studio rentals.
• The average cost of non-payment to the organization in FY19
is $24,729 per month, for a cumulative Accounts Receivable
(“A/R”) total of $215,594.98. This includes $123,337.56 for
FY19 and $91,946.40 for FY18.
• There is presumed to be some margin of error (+/-20%) in
this number due to our WYATT ERP billing errors in FY18
and the first quarter of FY19
OVERVIEW

8. ACCOUNTS FIVE MONTH ANALYSIS
September October November December January TOTALS % Collected Avg/Mo. Loss
Membership Invoiced $25,952.16 $49,049.67 $48,070.33 $48,901.73 $51,046.36 $223,020.25
Membership Collected $21,964.48 $33,110.33 $34,319.43 $34,987.49 $36,363.35 $160,745.08 72% -$12,455.03
Studio Invoiced $36,532.15 $40,042.61 $42,302.99 $41,971.09 $45,187.00 $206,035.84
Studio Collected $25,952.16 $35,182.16 $37,259.95 $34,762.23 $37,123.66 $170,280.16 83% -$7,151.14
Total Invoiced $62,484.31 $89,092.28 $90,373.32 $90,872.82 $96,233.36 $429,056.09
Total Collected $47,916.64 $68,292.49 $71,579.38 $69,749.72 $73,487.01 $331,025.24 77%
Difference -$14,567.67 -$20,799.79 -$18,793.94 -$21,123.10 -$22,746.35 -$98,030.85 -$19,606.17

9. ACCOUNTS IMPACT
• Reduces shop budgets by 400%
• Limits staff growth
• Reduces savings, cushion potential
• Works against forward business planning
• Squeezes thinking e.g. project support and
member builds

10. Days Late Action Implementation
90 • Deposit forfeiture
• Membership canceled
• Account given to collections agency
February 1 for all balances after
December 1
March 1 for all A/R before
December 1
60 • Card turned off
• Meeting request
• Affirm scholarship option
• Develop payment plan
March 1 for all A/R before to
January 1
30 • Studio members get a printed letter
• Personalized email to member
March 1 for A/R after February 1
10 • 5 percent late fee assessed
• Automatic reminder email
February 1
ACCOUNTS ACTION PLAN

11. ACCOUNTS QUESTIONS?
• At 30 days a certified letter in the mail; also explains
the escalation process
• Send registered receipt
• Delay between late fee and reminder email eg five days
• Check bylaws about 15 day notification/cancelation
• Define what happens to the contents of studios when a
membership is canceled

12. A2 FUTURES
• Business-wise, Artisan’s needs to grow
• Opportunity to improve infrastructure
• Rapid Somerville development
- Both opportunities and threats here
• Lease expires 2021
CONTEXT

13. A2 FUTURES
1.Buy some time
Property owner has signaled willingness to extend lease
until 2021
2.Move proactively
There are opportunities on the market today that may be
viable
3.Maintain course
It may be premature to invest time and energy in anything
beyond strategic planning
CURRENT OPTIONS

14. A2 FUTURES
1.Buy some time
• Lease through August 2021
• Terms remain the same, 3% increases
• Remeasure increases rent $30,000/yr.
CURRENT OPTIONS

15. A2 FUTURES
1.Buy some time (Risks)
• No security in 2023
• Little to no room to grow
• Short timeline for significant investment
• Maintain aging infrastructure
• Union Square opens, market heats up
CURRENT OPTIONS

16. A2 FUTURES
2.Move proactively
• 28 Fitchburg Street (Somerville)
• 100 Cambridge Avenue (Charlestown)
• 200 Exchange Street (Malden)
• Other?
CURRENT OPTIONS

20. A2 FUTURES
2.Move Proactively (Risks)
• Short planning time
• Accelerated fit time
• Big fundraising lift
• Potential for delays, overruns
CURRENT OPTIONS

21. A2 FUTURES CURRENT OPTIONS
2.Move proactively
• 28 Fitchburg Street (Somerville)
• Viewing Tue Jan 29, 2019 4pm – 4:30pm
* Somebody bring a drone with video
capture!

22. A2 FUTURES
3.Maintain course
• Lease through August 2021
• Focus is on strategic planning
• Opportunity is program development
• Growth in income is around grants,
education
CURRENT OPTIONS

23. A2 FUTURES
3.Maintain course (Risks)
• No security in Q3 2021
• Little to no room to grow
• Short timeline for significant investment
• Maintain aging infrastructure
• Missed opportunities
• Market heats up
CURRENT OPTIONS

24. A2 FUTURES QUESTIONS?
• What do we want to be?
• What course of action will serve
this purpose?

25. A2 FUTURES WHO/WHAT CAN WE BE?
• Maintain who we are, and essential focus on studios and creativity
• Become a more inclusive space for the community eg a space for kids, old folks etc -- this will drive grants
etc
• Opportunity to offer an innovation space that offers programs attractive to corporate team building etc
• More formal partnership agreements with schools eg pipeline programs that track students to jobs
• Continuing education and workforce development eg potential partnership with unions, training needs
• Space that attracts graduating students eg from Mass Art
• Current location is not amazing; would be great to move somewhere that has more bathrooms, ventilation,
insulation
• Sinks and washing stations/spaces
• Display and performance space
• Plug into craftsmanship schools, attract best people in the world at what they do for talks, etc
• Great vocational schools; is there a path to bring them in around the artistic element
• Space with an autolift for hourly rental eg brakework
• Coworking offering -- look at Baltimore
• Core insight is economies of scale eg subleasing, more build capacity, etc
• Be Meow Wolf + Boda Borg + Artisan’s spin for interactive, amazeballs public experience

26. OTHER ITEMS WHAT’S ON YOUR MIND?
• Somerville Open Studios — going
with a “Green & Spring” theme
• February 21 is Throwback
Thursday, 6PM don’t miss it!

27. THANK
YOU!