start up phase proposal for year 1 public release june 2016 pdf

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Cultural Arts Center Start-Up Phase Proposal, Year 1 by Kristen May 1/11/16

Proposal to the City of Circleville, Ohio:

Pickaway County Cultural Arts Center:

Start-Up Phase Proposal, Year 1

By Kristen May

January 11, 2016

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Table of Contents

Assumptions ................................................................................................................. 3

Schedule for Start-Up Phase, Year 1 ........................................................................... 6

Financial Projection: Cash Flow Projection, Year 1 ................................................. 10

Conclusion ................................................................................................................... 13

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Assumptions

The following assumptions are held for the Pickaway County Cultural Arts Center, Start-

Up Phase Proposal, Year 1:

Start-Up Scheduling is prepared for 20 hours of operation any given week for the

two major spaces of the Pickaway County Cultural Arts Center, referred to in this

document as Gym/Lounge/Musical Arts and Gallery/Fine Arts Studios.

Operating hours offered are those most likely to garner the best attendance for

neighborhood residents and families, given the limited operational capacity of the

Center for start-up mode.

The Center is supervised by two part-time employees, one for each space, with

volunteers monitoring the Lounge, Gallery, and Museum rooms.

Instructors monitor the rooms in which they are facilitating activities, with the

Center employees providing supervision and assistance as needed.

Volunteers are trained and supervised by the Center employees.

Programming and hours may be adjusted depending on program attendance and

requests by patrons.

The financial projections are based on resources from the Small Business

Administration.

Grant information is based on historical data available from the Ohio Arts

Council, regarding grants awarded in 2012 and 2013 in contiguous counties or

for similar programs.

Typical operating support available through two sources from the Ohio Arts

Council (the Arts Partnerships program and the Federal Grants-Sustainability

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program) ranges from $4800 to in excess of $22,000. An award of $8,000 is

assumed for operating support, based on the lack of comparable programs in the

region, which thus demonstrates the need for such a facility as this in the region.

Arts Access grants from the Ohio Arts Council range $800 to $6000, with most in

the $2400 range. Funding is based on a state formula. This proposal assumes

an Arts Access grant award of $2000.

Artist in Residence grants from the Ohio Arts Council range from $800 to $2400.

For this proposal, an Artist in Residence grant of $850 is assumed.

There are numerous additional grants available from Ohio Arts Council, Ohio

Development Services Agency, and other foundations. They are not included in

this projection.

A major corporate sponsor or partner and secondary sponsors are part of the

funding projections for the Center. It is typical that an arts center receives a

portion of funding from local corporations and businesses, as a means of

returning an investment into the community, providing community outreach

support, and adding improvement in the local quality of life.

Attendance is based on a minimum of three participants per class as scheduled.

Utilities and insurance estimates are based on the SABO analysis of Circleville

City Schools and are applied at a monthly rounded figure.

Custodial Services are contracted out during the Start-Up Phase of the Center.

Ohio Custodial Management, Columbus, Ohio, shows a full-time cleaner salary

as $20,800. Estimate of 25% of that salary ($5200, or $433 rounded monthly) is

applied as the Contract Labor - Custodial Services projected cost.

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Commissions of $35 per month are projected based on the sales of $100 worth

of artwork displayed and sold by local and visiting artists in the Center. Typical

commission rate of 35% is applied in the projections.

Partner space rental is based on a rental fee of $250 monthly to an on-site

partner, per local interest expressed to locate on-site.

Advertising at $100 three times a year is estimated with Office Supplies at $50

per month to handle postage and basic office needs.

Repairs and Maintenance figures are unknown at this time, pending upgrades to

the Everts building and vendor maintenance programs for mechanical systems.

Materials and Supplies have no estimates at this time. Instructors provide

materials or participants bring the needed materials for classes and activities.

Capital Purchases and Other Start-Up Costs are undetermined at this time.

Donations of $2 are requested for Gallery, Lounge, and Museum visitors during

the Start-Up Phase to help with overall operating costs. Those spaces are

anticipated to be free features when the Center is in full operation.

Open Gymnasium fee of $5 is requested during the Start-Up Phase.

Fine Arts class fees are computed using at an average of $7, with each family

group counted as one participant in the fess computations, for simplicity.

Disclaimer: Figures quoted are proposals and projections. There is no

guarantee, express or written, that funding from any given source is secured. No

formal requests for funding from the mentioned sources have been made at this

time. Current information available at this time is the basis for the projections

submitted herein. Conservative estimates are applied.

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Schedule for Start-Up Phase, Year 1

The schedule is projected to be based on twenty hours of operation for each wing of the

Center.

Basic schedule offerings are shown, with notes projecting attendance, fees received,

and facility rentals of once per month.

Three Excel figures are provided:

Gym/Lounge/Musical Arts;

Gallery/Fine Arts Studios;

Annual Figures (cash receipts for classes, visitors, and non-partner rentals).

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Time Sunday Monday Tuesday Wednesday Thursday Friday SaturdayProjected Week

Cash Receipts

10:00 AM Closed Closed Closed

Gym - Preschool

Play Class $5 fee

Music - Wellness

Workshops $5

Closed Closed Closed

11:00 AM Closed Closed Closed

Gym - WODA

Walkers - $2;

Music - Wellness

Workshops $5

Closed Closed Closed

12:00 PM

Open Basketball -

$5 per player;

Music - band jams

$10/hr.

Closed Closed

Open Basketball -

$5 per ; Music -

Special Topics $5

Closed Closed

Open Basketball -

$5 per player;

Music - Improv

$5 per person

1:00 PM

Open Basketball -

$5 per player;

Music - band jams

$10/hr.

Closed Closed

Open Basketball -

$5 per player;

Music - Music

Therapy $5

Closed Closed

Open Basketball -

$5 per player;

Music - Improv

$5 per person

2:00 PM

Open Basketball -

$5 per player;

Music - band jams

$10/hr.

Closed Closed

Open Basketball -

$5 per player;

Music - Music

Appreciation $5

Closed Closed

Open Basketball -

$5 per player;

Music - band jams

$10/hr.

3:00 PM

Open Basketball -

$5 per player;

Music - band jams

$10/hr.

Closed Closed Closed Closed Closed

Open Basketball -

$5 per player;

Music - band jams

$10/hr.

4:00 PM

Closed

Closed

Open Basketball -

$5 per player;

Music - Voice, by

appt. $5

Closed

Open Basketball -

$5 per player;

Music -

Instruments, by

appt. $5

Closed Closed

5:00 PM Closed Closed

Open Basketball -

$5 per player;

Music - Voice, by

appt. $5

Closed

Open Basketball -

$5 per player;

Music -

Instruments, by

appt. $5

Closed Closed


Open Basketball -

$5 per player;

Music - Voice, by

appt. $5

Closed

Open Basketball -

$5 per player;

Music -

Instruments, by

appt. $5

Closed Closed


Open Basketball -

$5 per player;

Music - Voice, by

appt. $5

Closed

Open Basketball -

$5 per player;

Music -

Instruments, by

appt. $5

Closed Closed

8:00 PM Closed Closed Closed Closed Closed Closed Closed

NOTES:

Lounge open

with gym - $2

donation

Lounge open

with gym - $2

donation

Lounge open

with gym - $2

donation

Lounge open

with gym - $2

donation

Lounge open

with gym - $2

donation

Projected

Attendance:

6 players for

basketball; 2

bands for 2

hours; Lounge - 4

Rental of Musical

Arts Studio

1x/month

6 players for

basketball; 3 per

class or

workshop;

Lounge - 4

6 players for

basketball; 3 per

class or

workshop;

Lounge - 4

6 players for

basketball; 3 per

class or

workshop;

Lounge - 4

Rental of Gym

1x/month

6 players for

basketball; 2

hours of band; 3

students Improv;

Lounge - 4

Projected

Daily Cash

Receipts

$70 $53 $104 $53 $73 $353

Projected

Rental once

per month

$40 $250 $290

Projected

Monthly Cash

Receipts LESS

rentals

$280 $212 $416 $212 $292 $1,412

Projected

Monthly Cash

Receipts

$280 $40 $212 $416 $212 $250 $292 $1,702

Pickaway County Cultural Arts Center - Gym, Lounge, Musical Arts Studio

Rentals by appointment and reservation only

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Time Sunday Monday Tuesday Wednesday Thursday Friday SaturdayProjected Week

Cash Receipts

10:00 AM Closed Closed Closed Closed Closed Closed Closed

11:00 AM Closed Closed Closed Closed Closed Closed Closed

12:00 PMAdvanced Darkroom

Skills (DR)Closed Closed Closed Closed Closed

Preschool Make and

Take (FA);

1:00 PM

Family

Scrapbooking(FA);

Creative Writing (DL);

Sculpture (3D)

Closed Closed Closed Closed ClosedOp Art for Families

(FA);

2:00 PM

Family

Scrapbooking(FA);

Creative Writing (DL);

Sculpture (3D)

Closed Closed Closed Closed ClosedJournaling (DL); Open

Ceramics (3-D)

3:00 PMAdvanced Darkroom

Skills (DR)Closed Closed Closed Closed Closed

Journaling (DL); Open

Ceramics (3-D)

4:00 PM Closed ClosedWatercolor Basics

(FA); Basic Darkroom

Skills (DR);

Fabric/Needle Arts

(FA)Open Ceramics (3D) Closed Closed

5:00 PM Closed ClosedWatercolor Basics

(FA); Basic Darkroom

Skills (DR);

Basic Darkroom

(DR);Fabric/Needle

Arts (FA)

Family Paint Night

(FA); Basic Digital

Editing (DL); Open

Ceramics (3D)

Closed Closed

6:00 PM Closed ClosedBeginning Graphic

Design(DL);

Ceramics(3D)

Basic Video Editing

(DL); Furniture

Refinishing (3D)

Family Paint Night

(FA); Basic Digital

Editing (DL); Stained

Glass (3D)

Closed Closed

7:00 PM Closed ClosedBeginning Graphic

Design(DL);

Ceramics(3D)

Basic Video Editing

(DL); Furniture

Refinishing (3D)

Stained Glass (3D) Closed Closed

8:00 PM Closed Closed Closed Closed Closed Closed Closed

KEY:

FA = Fine

Arts/Creative Arts

Studio

3D = 3D Messy Arts

Lab

DR = Darkroom

DL = Digital

Lab/Library

Most classes are 2-

hour time blocks;

some classes are a 6-

week series

For simplicity, class

fees are $5; donations

of $2 requested for

Gallery and Museum

during start-up phase

Family classes are

assigned a $7 fee for

entire family for

projection uses

Normal range of class

fees projected to be

$5, $7, or $10, plus

cost of materials

NOTES:

Gallery and Museum

open- $2 donation;

Materials costs not

included for classes

Gallery and Museum

open- $2 donation;

Materials costs not


Gallery and Museum

open- $2 donation;

Materials costs not


Gallery and Museum

open- $2 donation;

Materials costs not


Gallery and Museum

open- $2 donation;

Materials costs not


Projected

Attendance:

3 per class; Gallery

and Museum - 4 each;

each family counts as

1 participant for this

projection

Rental of Creative Arts

Studio 1x/month


and Museum - 4 each


and Museum - 4 each





projection

Rental of 3-D Messy

Arts Lab 1x/month





projection

Projected

Daily Cash

Receipts

$100 $100 $100 $100 $100 $500

Projected

Rental once

per month

$60 $80 $140

Projected

Monthly Cash

Receipts LESS

rentals

$400 $400 $400 $400 $400 $2,000

Projected

Monthly Cash

Receipts

$400 $60 $400 $400 $400 $80 $400 $2,140

Pickaway County Cultural Arts Center - Gallery, Fine Arts, 3-D, Digital Studios, Museum

Rentals by appointment and reservation only

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Monthly

Fees

Monthly

Rentals

Monthly

TOTAL

Annual

Fees

Annual

Rentals

Annual

TOTAL

GYM/MUSICAL

STUDIO$1,412 $290 $1,702 16944 3480 20424

FINE

ARTS/GALLERY$2,000 $140 $2,140 $24,000 $1,680 $25,680

TOTALS $3,412 $430 $3,842 $40,944 $5,160 $46,104

Annual

Cash

Receipts

46104

Pickaway County Cultural Arts CenterProjected Fees and Rentals

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Financial Projection: Cash Flow Projection, Year 1

The Cash Flow Projection for Year 1 follows the expressed assumptions in this

document.

Various costs are applied at a rounded monthly figure to enhance monthly cash flows.

Two Excel figures are provided:

Cash Flow Projection (spreadsheet);

Cash Flow Chart.

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Sta

rtin

g d

ate

Jan-1

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ala

nce a

lert

min

imum

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eb

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y-1

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ep

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ec-1

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as

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be

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8,9

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7,1

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5,3

92

3,6

06

1,7

20

9,9

34

8,1

48

6,3

62

4,4

76

2,6

90

2,9

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CA

SH

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Cla

ss f

ees

3,4

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3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

3,4

12

40,9

44

Renta

ls430

430

430

430

430

430

430

430

430

430

430

430

5,1

60

Part

ner

Space R

enta

l250

250

250

250

250

250

250

250

250

250

250

250

3,0

00

Donatio

ns

400

400

400

400

400

400

400

400

400

400

400

400

4,8

00

Gra

nts

850

00

00

8,0

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Com

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35

35

35

35

35

35

35

35

35

35

35

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15,3

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4,5

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4,5

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4,5

27

4,5

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14,5

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4,5

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433

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433

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5,1

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yee e

xpenses

800

800

800

800

800

800

800

800

800

800

800

800

9,6

00

Insura

nce -

liability

330

330

330

330

330

330

330

330

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330

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Mate

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and s

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xpense

50

50

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50

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Rent or

lease

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1,5

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1,5

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1,5

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1,5

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1,5

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1,5

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1,5

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1,5

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1,5

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Wages

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3,2

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Conclusion

The Start-Up Phase proposal for the Pickaway County Cultural Arts Center applies a

conservative, scaled back approach to scheduling, staffing, fees, and funding for the

initial year of operations.

The assumptions as described are in effect for the purposes of this Start-Up Phase,

Year 1 proposal.

The Cash Flow Projection demonstrates that the Pickaway County Cultural Arts Center

can be a viable, achievable enterprise, even in a scaled back model. Fixed costs, such

as utilities, and insurance, negatively affect the scaled back model. That is, the cost per

hour is actually higher during scaled back operations of 20-hour weeks, compared to

fully operational 40-hour weeks. With increased operations, fixed costs have a much

less negative impact.

It is standard business practice to apply a conservative growth rate of 2-3% annually to

project future years. More aggressive growth formulas of 10% or more can be applied

in high growth markets and enterprises. With the lack of local and regional competition

in the niche market of the cultural arts, the market is considered strong for growth.

Future year projections can be provided upon request and further research.

start up phase proposal for year 1 public release june 2016 pdf

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