Business plans for performing arts theaters should accomplish several objectives. For one, the business plan should describe the sort of shows and events that the performing arts theater would host, so that the reader knows the nature of the plays, functions, etc. that would take place in the space. For two, the business plan should demonstrate that the local market can and will support an enterprise like this, using market and industry data to establish a need. Three, the business plan should outline the sort of marketing methods that will make the center a success. And, last, the plan needs to offer a complete pro forma financial model – most likely showing five years of projections – that makes it clear how the company will earn money and what profit might look like year by year.
Other topics to cover include these:
• - What other theaters will you compete with directly?
• - As for indirect competitors, what other players are competing for consumers' dollars?
• - Are any of your advertising methods unique?
• - What personnel will you need and when do they come on board?
• - If you need an investor's help up front, what share will you offer them?
Most of the other important questions for a performing arts theater will relate to the financials. You should be able to show when you think break-even will occur, how your cash flow will look over the years, and how Year 1 post funding will go down. (For this, most investors want to see a month-by-month breakdown of the key metrics, often included in the appendix.) MasterPlans has developed financial models and market analyses for 8,000 clients since we were founded in 2002. We have written for several arts groups, theater companies, and new production concepts and will be a great ally for your business as well. Call 877-453-2011 to speak with a consultant today.
