Sotheby's Institute of Art: Michianna & Co. Business Plan, 2016

This business plan, created by Michelle Yu at Sotheby's Institute of Art, outlines the strategy for Michianna & Co., a company designed to assist Chinese contemporary artists in gaining recognition in the New York and broader Western art markets. The plan details the problem of Chinese artists lacking knowledge of the Western art market and the solution offered by Michianna & Co.: customized marketing and communication services. It includes a market analysis focusing on non-top-tier Chinese artists, a competitive analysis highlighting the company's unique offerings, and a description of the company's team and services. The plan also provides financial forecasts, including projected sales and financing details, as well as supporting financial statements such as profit and loss, balance sheet, and cash flow statements. The plan emphasizes the importance of building connections and understanding both the Chinese and Western art markets to facilitate successful international recognition for Chinese artists.

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]
Follow this and additional works at: https://digitalcommons.sia.edu/stu_proj
Part of the Advertising and Promotion Management Commons, Entrepreneurial and Small
Business Operations Commons, Fine Arts Commons, and the Marketing Commons
Recommended Citation

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

Michianna & Co. i
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

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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

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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

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buying. In the world of connections, this could bring us the specialty and resources we need.
Another founder, who is our representative in China, Catherine Qiao, has experiences in both
New York art scene and Chinese marketing industry. She not only has resources in marketing,
but also luxury industry in China, which is always related to the art industry.
Michianna & Co. has offices in both New York and Beijing, the art capitals in both countries.
This will allow us to have more convenient communication with our clients for their ongoing
needs and projects. The three founders all have backgrounds in both New York and Beijing art
industries, and are totally capable of understanding both countries. On top of that, each
founder has its own specialty in the art world, which can bring the company on a more diverse
level.
Target Market
We expect our current market segment to be Chinese artists who live and work in China with
no Western gallery representation and has an eager to put his or her works in the New York
market. These artists should have strong works that represent the Chinese culture, but also
lacks the ability to communicate in English, or does not have any experience or understanding
of the Western art market.
According to our research, only a small segment, less than 10%, of Chinese artists are either
represented by New York galleries, or have had exhibitions in New York before. Only less than
50 artists are represented by galleries in Chelsea and Upper East Side, and the rest had just
small-scale exhibitions in the Western market. It is not possible to do a complete survey, but we

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Westerns, but there are still hundreds of thousands of contemporary artists actively involved in
making and selling works.
After conversations with artists in China, especially those who have been in this world for
more than 20 years and have a voice in the market, we realized there is a strong need for artists
to get international recognition, but almost every of them does not know how to do so and has
never been offered services or help. These artists are the real representation of the Chinese art,
and also our target audience.
Competition
Current Alternatives
Based on the services we provide, there is no current company can be our competitor.
Michianna & Co. can be categorized into art marketing industry, but we are also different from
traditional marketing/PR company, since we only provide artists the connections they need in
a foreign market. We do not provide media broadcast like other traditional marketing
companies do. In this case, the service we provide is unique. On the other hand, there are
around five companies and some boutique firms provide marketing services specifically in the
art field, but none of them targets in Chinese artist or cross-culture communication. Under
these circumstances, we do not have direct competitors in this industry.
Our Advantages
Our knowledge in both markets and the resources in them offers a unique combination of
advantages that is unmatched by our competitors. Compared to the other traditional

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take massive amount of cases at the same time), and a strong focus on Chinese artists'
development in the New York art market. Our service is also fresh, less risky and more suitable
to our target audience than other companies.
Compared to the traditional marketing companies, like Fitz & Co. and Sutton, there really is just
no comparison. Our service has different target audience and the service package essentially is
different. We want to work on just a narrow segment of the foreign market, when they are
focusing on all the cultural institutions in the market.
Against a non-regulated company with a lot of risks, we offer high-end and professional
customized services that serves a boutique marketing company. We do not want the
company's reputation to influence artists' performances, because we should not be a tag for
any artist. In this case, different than many companies, we only serve as a helper to build the
bridge and let the artists outshine by doing minimal advertisement for ourselves.
Product Description
Exhibition Setup:
We help artists set up exhibitions in the Western art market, mainly New York. First, we will talk
representation with galleries that suit the artist's style. If gallery representation is not ideal at
the moment, we will set up exhibitions in either galleries or private spaces that will attract
traffic and help artists have foreign exhibition history.

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Michianna & Co. possess unrivalled and longstanding network with both US and China media
sources. We can help the artists secure and handle all their media needs.
Except important press release, we also offer press campaigns, press development, press
material, journalist briefings, photographer relations and etc. We understand translation is
critical part of delivering artists' message in another country, our team of professional
translator in art can help you gain the media recognition you should.
VIP Connection:
Michianna & Co. believes in the importance of strong network. We can help artists to ensure
their existing network by making the right move, proposing the right introduction. In our
current world, a world of mouth, Michianna & Co. can strengthen ours and the
artists' connections and expand more. Our expertise in both cultures’ etiquette can help
them stay connected with their audience without miscommunication.
We understand some connections are more important than others, that’s why our service
includes VIP relation. By curating artists' network in both countries, they can have more
engagement with their VIPs. We offer VIP exclusive concierge consulting, engagement
development, and event strategies. We work closely with artists to ensure we understand
them the most and offer their clients the best service.