Business Plan - Art Marketing

Sotheby's Institute of Art
Digital Commons @ SIA
MA Projects Student Scholarship and Creative Work
2016
Business Plan - Art Marketing
Michelle Yu
Sotheby's Institute of Art, [e-mail]
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C O N F I D E N T I A L
Michianna & Co.
B R I N G Y O U R A R T A N D C U L T U R E O U T
Business Plan
Prepared December 2016
Contact Information
Michelle Yu
[e-mail]
917-803-1706
michiannaandco.com
205 E 92nd St
New York, NY 10128, US

Michianna & Co. i
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared
only with the understanding that you will not share its contents or ideas with third parties without the express written consent
of the plan author.
Table of Contents
Executive Summary.................................................................................1
Opportunity ............................................................................................................................................................1
Forecast....................................................................................................................................................................3
Opportunity ...............................................................................................5
Market Analysis .....................................................................................................................................................5
Target Market .........................................................................................................................................................6
Competition............................................................................................................................................................7
Product Description .............................................................................................................................................8
Company...................................................................................................11
Company Description ........................................................................................................................................11
Overview ................................................................................................................................................................11
Team .......................................................................................................................................................................12
Execution..................................................................................................16
Marketing & Sales................................................................................................................................................16
Operations ............................................................................................................................................................19
Milestones & Metrics ..........................................................................................................................................21
Financial Plan .........................................................................................23
Forecast .................................................................................................................................................................23
Financing ..............................................................................................................................................................25
Statements ............................................................................................................................................................26
Appendix ..................................................................................................29
Profit and Loss Statement ................................................................................................................................29
Balance Sheet .......................................................................................................................................................33
Cash Flow Statement .........................................................................................................................................38

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Executive Summary
Opportunity
Problem
Chinese art market is growing fast than ever, but it is still very unregulated with artists and art
professionals lacking in knowledge of advanced art market, like the Western market.
Specifically, artists are in needs of the knowledge of the art market as a whole, the Western art
market, the capability of promoting themselves and recognition from the international market.
Getting famed and famous in the Chinese is not enough for a fast-rotating world nowadays.
Solution
Michianna & Co. offers customized, professional marketing and communication services to
artists that will lead to the development of the Chinese contemporary art industry. We
introduce the New York and the rest of the Western market more works from Chinese
contemporary artists, and at the same time, educate the culture. On the other hand, we help
Chinese artists get recognition in the foreign market. We have secured some connections that
will help us accomplish our goals, and are constantly developing new resources.
Market
Within the services provided and target audience set, we are well situated to serve our target
audience: non top-tier Chinese artists who don't have Western gallery representation but in
eager getting international recognition. Our research suggests that that segment presents a
pool of at least 1,000 potential customers (and is actually much more). For a company targeted
in customized services, which means only 2-10 customers per year, this market pool will be

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more than enough. Factor in the fast growing art industry in both China and New York, and
the economic growth in China, the complementary rising popularity of customized marketing
service for artists going internationally, we see a great opportunity here.
Competition
We have a unique offering, since no other marketing/PR agency in the art industry provides
the same service, despite the facts that there are more bigger-scaled art marketing companies.
There are cultural-promoting boutique marketing firms, but they do not target on Chinese
artists, but more cultural institutions. Other marketing/PR agencies also serve more
institutional needs. We differentiate ourselves by offering more specific and more unique
services than other companies in New York, more professional and knowledgeable than local
marketing firms in China, and less expensive and more responsible experience than big
companies.
Why Us?
Our Co-founder team is a great one-two punch of Chinese and New York art scene and savvy
business sense. Michelle Yu got her Master degree of Art Business at the Sotheby's Institute of
Art and worked in different top New York art institutions, like Christie's and Guggenheim
Museum. For this unique idea, she had this thought through her experiences and observation
in New York and got agreement from both artists and gallerists. Gianna Guo has a Master
degree from the New York University. Her family has a gallery in China for more than two
decades. Both of her parents are deeply involved in the Chinese art scene and are great friends
with the now-top-tier artists back when they were all students. Her mother is an art critic in
China, publishing magazine articles on a monthly base. Gianna has her art advisor practice in
New York, and also knows every aspect of both art worlds. Together we have come up with a
fresh concept to help Chinese artists get international recognition from the New York art

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market. Our ability and experiences on understanding both markets and speaking both
languages can help us to build a thriving new business.
Forecast
Forecast
We are projecting sales of $60,000 in year 1 and $100,000 in year 2 with a profit margin of 90%.
That assumes we can serve 5 artists the first year and around 7 the second year. Our co-
founders will draw only minimal salaries when needed, so we can reinvest our profits into
growing the business as both of us have other jobs too. Dinner and meeting with clients and
partners will be our biggest expenses, followed by smaller marketing advertisement. Additional
fees, like exhibition space rental and setup will be for the artists themselves. If we decide to
pursue events, the cost of catering and space rental will still be on artists. For now, though, we
are focused on making reasonable profit and grow.
Financial Highlights by Year

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Financing Needed
We are financing our business ourselves with $2,000 in investment from our co-founders. No
loan or other source of financing is used or needed currently. Since we are very low-cost with
no rental office space, no inventory or equipment, and minimal salary for the three partners,
the upfront expense is very minimal. Our investment could cover the upfront $580 expense
(website building, company registration), and we will design the company website on our own.

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Opportunity
Market Analysis
Problem Worth Solving
The art world is more and more internationally than ever before. Every day, there are foreign
artists having exhibitions in other countries to promote their works and cultures. The demand
of getting international recognition for artists will only go higher and higher. For all that
demand, though, there is no company specialized in building an easier path for artists than
artists themselves, and most artists are not good at doing business, despite how strong of the
voice their works are.
Lack of help is especially critical to Chinese artists' career development these days. Most
contemporary artists are in their 40s and 50s, and they can't speak fluent second language, like
English, like most younger generations. Nowadays, the art world is still divided into Easter
and Western, and Western is the more advanced and developed one. In order for a
Chinese artist to get international recognition, one must go outside his or her country and set
up reputation in the Western art world, which also means US (New York) and Europe. We are
convinced that there is a great market opportunity here for an marketing offering
approachable cross-culture promotions in New York to Chinese artists.
Our Solution
We recently launched a series of service offering to Chinese artists, including building
connections in New York, putting up exhibitions, working on collaborations with fashion
brands, meeting corporate art collectors. One of our founder, Gianna Guo, is an art advisor
with family background in art industry and experiences and connections in corporate art