The 92 discrete skills it takes to run a small arts business

This article was originally published on www.ArtsHub.com.au, 2016

In the first two years of the Incubator, after every coaching and mentoring session we made a note about the particular business or marketing skill that was taught. When we compiled that list, we were surprised to see that there were 92 discrete skills that it takes to run a successful arts business. Several years later, when we started working with small business development organisations we learned that they had lists of what it takes to run an average small business. Their lists had 55 skills. Which means it’s way more complex to run an arts business than any other average small business.
At the Incubator we offer a business skills inventory checklist. The important part of this checklist is to look at each skill and decide whether A) You got it, B) You need it, or C) You have no clue what that skill even is. Here’s the link to our online diagnostic you can do yourself here.

You skills

The list begins with all the things an artists needs to develop to be an artist in business. Arts businesses are unique in that the overlap between business owner, talent, product and service is common and much larger than in other industries. There is more vulnerability inherent in a business which produces art. Being able to manage yourself as the CEO, Chief of Finance, Head of Marketing, Head of Sales, Administrative Support and Key Talent requires a very unique set of skills. There are mindsets, thoughts, feelings, habits and behaviours that successful small business people have developed that artists can develop too. Developing new personal skills is exciting and creative. For artists who are OK with developing their business side, developing these new personal skills is challenging and rewarding. Here are the top25 skills we help artists develop to become successful.

‘You’ Skills

1. Time management – getting control of your time
2. Lists – Urgent vs. Important
3. Valuing your time – what are you worth per hour / per day / per week
4. Saying NO – control your energy
5. Medicine Wheels – shifting perspective
6. Self-care- your are the most important
7. Limiting beliefs – recognising and eliminating
8. Confidence Building
9. Productivity skills – working smarter not harder
10. CEO skills – working ON the business
11. Personal brand – why they love you
12. Feedback & Criticism – getting it and using it
13. Perspective – getting out of tunnel-vision
14. Impact – understanding the impact of your art
15. Leadership – skills to lead the business
16. Entrepreneurial mindset
17. Team management
18. Managing expectations
19. Managing your emotions
20. Managing your thoughts
21. Operating at Peak performance
22. Moving blocks and limitations
23. Networking – tips and tricks
24. Reward- encouraging positive behaviour
25. Accountability – staying on track

Business Skills

When one signs up to the life of an artist, no one tells them that they will need to be a competent businessperson as well. No matter how brilliant an artist may be, no artist can survive long term in this industry without business skills. Artistic skill ≠ Business skill. An artist needs to learn to balance projects budgets, manage teams, manage time, manage resources, develop plans, understand taxation, superannuation, Work Cover – the list goes on and in the ‘independent’ arts sector there is no one to do it for them.
It is this lack of business skill that causes most of these fledgling businesses to ‘close shop’ within the first five years. Arts Businesses are very complex. This is the list that is so much longer than the list of Business skills required to run your average small business.

Business Skills

26. Budget planning – understanding the connection between budget plan and expense / revenue tracking.
27. Cash flow – understanding the “crunch times” in project delivery
28. Job / Project costing – understanding the macro level of project visioning from a cost-based paradigm.
29. Return on investment – understanding the balance between quick return, investment, and long tail return cycles
30. Amortisation & assets – understanding both valuing / depreciating.
31. Tax – understanding tax basics including filing and GST
32. Accounting / accountants – understanding the value of an “arts accountant”
33. E-commerce – understanding selling on the web.
34. Business model – Leader, Manager, Talent
35. Banking – understanding business banking accounts
36. Independent contractors vs. employees – understanding the financial and legal obligations such as on-costs including workcover etc.
37. Contracts – types, templates and management
38. Partnerships – collaboration and sponsorship
39. Negotiation – win : win
40. Incorporation – understanding options and yearly management of each type of incorporation
41. Not-for-profit incorporation – understanding the limits of this model
42. Profit in the not-for-profit sector – understanding that you can make money
43. Charitable status – understanding the path to this designation, and the rights and responsibilities of this status
44. Copyright and trademark – the differences and the process to obtaining
45. Expense tracking – developing a system of recording expenses — “getting the receipts out of the shoebox”
46. Project monitoring – when and how to check progress against cash flow and projections.
47. Cost of doing business – is your art a hobby or a business
48. Income / expenses – understanding, managing, tracking both credit and debt
49. Overhead – cost of doing business, including fixed costs
50. Insurance – public liability, work cover, volunteer, officers and directors
51. Risk management – why and how
52. Pricing – cost vs. market
53. Audit – when do you need one
54. Balance sheet – statement of financial position including assets
55. Business Plan
56. Strategic Plan
57. Vision statement
58. Mission statement
59. Work plan
60. Marketing plan
61. Goals / strategies / objectives – what and how to use them
62. Revenue streams – the things you do to generate income
63. Funding and grants – as support not sustenance
64. Crowd funding – how it works, how much to ask for
65. Litigation – how, why and experience of typical cases
66. Intellectual property rights – how to protect creative ideas

Marketing Skills

The list of 92 skills concludes with Marketing Skills. If you know who you are, are capable of running a business, then it’s time to let people know who you are what you have to offer. Within the arts industry there is little shortage of vision and creative ideas. What we hear across the small to medium independent arts sector is, “I have a great idea / show / design / piece…. I just need to let more people know about it!” Developing Marketing skills is the most important thing for independent artists and small/medium arts organisations. Finding fans, customers and audiences who get what you do and want to experience is the key to a sustainable future. At the incubator we say, “Funding is insecurity, the market is security” When you find the people who want what you create, the next time you create something they will be ready and eager to experience it.

Marketing Skills

67. Increasing word of mouth
68. Branding – understanding image
69. Website design – understanding the importance of the site from the customer’s POV
70. Relationships – understanding how to build and maintain business to business, business to customer and business to stakeholder relationships
71. Email service providers – Mail chimp etc.
72. Viral marketing – understanding the power of trends
73. Long tail – understanding the benefits down the road
74. Touring – locally, regionally, nationally and internationally
75. Publicity – tips and tricks and new ways and means
76. Arts lobbying – moving from individual needs to collective bargaining power by understanding the power of a unified voice as an industry sector.
77. Social media – building relationships not sales
78. Advertising vs. marketing – knowing the difference
79. Facebook – use and abuse
80. Instagram – for the arts
81. Twitter – for artists
82. YouTube – essentials
83. DIY video – production and distribution
84. Podcasts – production and distribution
85. The customer journey -making sure you have marketing collateral at each stage
86. Value based language – Smarter more effective marketing language
87. Website DIY (including wordpress) – supervising you building it yourself
88. Blogs – to offer insight into your process
89. Demographic – who’s out there
90. Psychographics – what do they like
91. Customer Avatar – finding your best customer
92. Pitching – how and when

There are probably more than 92 skills but over the past 8 years of helping 1,000s of artists we know that these are the essential ones. You don’t need to learn them all at once. Artists are kinaesthetic learners and so being able to apply the learning is the best method for taking ownership of these skills. Many artists have lots of these skills in their artistic practice so it is just a matter of transferring the skill into their business.