SCALING-UP: Developing the new agency and platform in phases
In order to be able to adapt to the needs of the community, to funding realities, and to the changes that Covid-19 brings about, the agency promotes organizational flexibility. The organization will be set-up in phases (e.g over a period of 2 years ). It will start small with the possibility to scale-up as the amount of makers and work presented increases. This scalability is built into the digital structure.
FINANCIAL MODEL: A Diversified Business Strategy
A business model that relies solely on sales-income within our niche market is not financially feasible. This was confirmed by our coaches and we have crunched the numbers ourselves in many different ways. In order to create a viable business model we have developed a number of strategies to keep costs low and to intertwine diverse income streams:
- Commissions: Selling work is the most prominent activity of the agency, but it is not the one that will bring in large amounts of revenue. Cultivating and maintaining a fixed group of collaborating venues and spaces can reduce the time and cost normally spent selling work to programmers and venues. This time would be spent growing and strengthening the network of collaborating venues. This would guarantee that a certain amount of “sold” works/programs in the beginning phase. Once established this can increase over time without adding much financial load.
- Funding: External funding is a necessity, especially for the start-up phase of the agency. Substantial funding would undoubtedly be needed to develop the digital platform and the preliminary marketing strategy. Once the digital platform is up and running, funding gradually could reduce as other income streams come into action.
- Membership fees: Once the digital platform is fully-functional, the access and use of the platform should be very easy and very affordable. This translates into a low basic monthly artist-membership fee. While the agency is growing its network and adding more support and services, the membership-fee could increase accordingly. In this way the makers know what they are getting. New members can test it for a limited time at a low cost.
- Services: As the agency grows, the desire or need for additional services such as workshops and coaching can evolve and can be crafted to complement the main activities of the agency. These meet-greet-and-learn activities can also become community events where the community is invited to mingle and socialize.