CHAPTER 1

STARTING THE COMPANY:

Where does the money come from?

Many arts entertainmentgroups never get started because the necessaryresources seem impossible to find. The goodnews is that there are several sources that may betapped to get your organization going! Who arethey and where can you find them?

1. Arts Funding groups exist in nearly everycommunity or in larger nearby cities.Call your City Hall or town office formore advice.

2. The Chamber of Commerce oftenmakes dollars available to small start-upcompanies. They are listed in your localtelephone directory.

3. Small Business Associations offer not onlystart up dollars but also offer support inmanagement, finance and co-operativepartnerships. Again, consult thetelephone directory or contact localgovernment offices and Chambersof Commerce.

4. Foundations and grants are available frommany sources nationwide. Get your handson The Foundation Directory, sure to be inmost public libraries. The Directory listsseveral thousand Donor Groups andFoundations. Grants are categorized byfield of interest, geographic location andsupply names to contact and rules forapplying. Millions of dollars are waitingto be given to resourceful arts andentertainment entrepreneurs.

5. National dance, music, theatre andcomedy clubs in major cities such as NewYork, Chicago and Los Angeles look tobuild similar companies in other cities.They offer working capital or matchingfunds to help replicate their success.Start-up companies are usually managedand directed by a "pro" in the businesswho will help train, organize and managea new company. Newcomers get towork, earn money and get in on themanagement ground floor. Be on thelookout for opportunities listed intheatrical weeklies such as Variety, TheSunday New York Times and variousArts Magazines.

6. Banks make small business loans availableto groups who show genuine potentialfor success. Call them.

7. Local businesses donate lumber, paintand sound equipment. This reducesthe amount of up front money youneed to get started. Call businesses insurrounding communities, who mayhelp partner your success.

In the words of Irma Mann, "Start with a freshidea. Tell people about it. Enthusiasm iscontagious. The dollars will always come fromsomewhere."

Approach friends. Make calls. Write letters.Get the "buzz" started. Find a friend with acomputer. Ask if they can design some brochuresfor you with a simple logo at the top. Pass theseout at church. At work. To local merchants.Actively seek advice and information. This is"networking." Ask each person you talk with fortwo more names of people who may be able tohelp. This is "lead generation." You'll be usingprecisely the same technique later in buildingyour audience.

Once the momentum starts, you will besurprised at the number of people who will be putin your path. Many of these people may also turnout to be your first customers. It all starts with anidea, hope, enthusiasm and investigation.

Terms you should know:

Lead generation - getting names andaddresses of individuals and organizations whocan help

Logo - a symbol and identifying your company

Networking - contacting people who maybe able to help and asking them for names ofmore people

Tagline - a defining line which is often usedtogether with a logo

CHAPTER 2

LOCATING YOUR BUSINESS.

Deciding where to locate yourbusiness is probably the most important andexpensive decision you will have to make. Amongthe key factors on which you should plan carefullyare the following:

1. What size building or officespace do you need?

2. What location should you be in?

3. What price can you affordto pay?

4. What lease conditions shouldyou look for?

5. How often will you use it?

6. Can space be shared withanother company at areduced cost?

Commercial space is sold by the square foot.A 1,000 square foot office with an asking price of$17 per square foot will cost you $17,000 for theyear or $1416 per month. This may or may notinclude costs of utilities, water, taxes or insurance.Generally speaking, there are certain areas of thecity where theatre, art galleries, dance companiesare located. Being in that area will enhanceyour chances for success, but may also drivecosts of location up considerably. You mighteven consider a location near that favored areabut a block or two away. For sure, it will beless expensive.

Real estate opportunities fall into twocategories: "raw space" and "turnkey operations."

Raw space means you're just renting thearea itself. Any improvements, painting, airconditioning, seating is your expense, andbelongs to the landlord when you decide toleave. A turnkey operation, such as a theatre,means everything is alreadycondition,however, bearscareful inspection.

Many landlords or real estate firms will allowyou several months free rent until you get yourbusiness rolling. This is called "start-up" time.Others will rent space after usual working hours atminimal or no...