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HOW TO START AND RUNA COMMERCIAL ART GALLERY EDWARD WINKLEMAN PUBLISHED BY ALLWORTH PRESSBOOK REPORT BY.YANJING ZHAI LU HAN SUBI YIRAN ZHU YUNHUI XU IFORNMATION OF AUTHOR Edward Winkleman art dealer from New York has written a book dealing with the many aspects of running acommercial art gallery. How to Start and Run a Commercial Art GalleryTarget audiences Time of published PublisherWho have considered opening July of 2009 Allworth Presstheir first gallery ABOUT THE GALLERY. Founded time 2001 Funders Edward Winkleman artist Joshua Stern Name Plus Ultra Gallery in Williamsburg Brooklyn Refers to Sleaze culturea direct critique of the ongoing Disneyfication of New York City. Rename Winkleman Gallery Murat Orozobekov participacte in as Co Owner Participation in art fairs such as The Armory Show SEVEN Pulse ARCOArt Chicago NADA INDEPENDENT and Moving Image Exhibition venues the world s most important venues and biennialsE g the Venice Biennale the Vienna Kunsthalle .The Art Institute in Chicago the Getty Center in Los Angeles the Singapore Biennale the Sharjah Biennial TABLE OF CONTENTS Chapter 9 logistics crating shipping framing Chapter 1 education How to learn what you.photographing managing and insuring art workdon t know before opening a commercial artgallery Chapter 10 staffing and management process Chapter 2 identity defining your program Chapter 11 promotional effort publicity andand other branding issues advertising. Chapter 3 business model and customary Chapter 12 getting expert advice andpractices the primary market professional assisance Chapter 4 the secondary market Chapter 13 art fairs Chapter 5 start up capital how much you Chapter 14 artists where to find them how toneed and how to get it keep them. Chapter 6 writing a business plan Chapter 15 collectors where to find them how Chapter 7 location and build up issue to keep them Chapter 8 managing cash flow Chapter 16 peerage the art gallery CHAPTER 1LU HAN YANJING ZHAI. History Experience and Beginnin The relationship between artist and dealer evolved from one basedsolely on commerce to one that includes sincere advocacy It is possible to divide art dealers into two camps those who enjoyworking to promote relatively unknown artists and those who prefer to.sell work from established names The most successful approaches to running a gallery are as individual asthey are innovative Joseph Duveen Either Duveen A Life in Art by Meryle Secrest University of ChicagoPress 2005 or for a more sensationalist account Duveen The Story of the Most.Spectacular Art Dealer of All Time by S N Behrman Little Bookroom 2003 Edith Halpert The Girl with the Gallery Edith Gregor Halpert and the Making of theModern Art Market by Lindsay Pollock PublicAffairs 2006 Julien Levy Julien Levy Portrait of an Art Gallery eds Ingrid Schaffner and Lisa Jacobs The MIT Press 1998 . Peggy Guggenheim A bit more scandal than business perhaps but this combinationof Guggenheim s biographies offers insights into the mindset of the dealer as patron Out of This Century Confessions of an Art Addict by Peggy Guggenheim UniverseBooks 1979 Clearly goals right place and the right time It is better to have a good.interpersonal relationship Educational opportunities Continuing education courses Apprenticeships Mentors. Advanced studios and graduate degrees Myth and truth about opening an art gallery CHAPTER 2 4Yanjing Zhai CHAPTER 2 IDENTITY DEFINING YOUR.PROGRAM AND OTHER BRANDING ISSUES Defines your program Steps you can take early on to nail down your gallery s identity Approaches to re branding Choosing a program. Writing a mission statement Branding decisions Changing your identity and re branding CHAPTER 3 THE PRIMARY MARKET Primary vs secondary markets Overview of the primary market. How both types of dealers manage the Consignment agreementchallenges and opportunities Representation contracts Shared business practices Standard promotional strategies Pricing your artists work Business hours. Sharing artists with other galleries Opening receptions Protecting your artists markets Exhibition information customs Legal considerations ownership Selling work out of an exhibition structure and the uniformcommercial code. Maintaining mailing lists Managing inventory CHAPTER 4 THE SECONDARY MARKET Introduction What secondary market dealers are conscious of in purchasing. Acquiring inventory Consignment agreements Pricing work Promotional strategies Protecting markets. CHAPTER 5 7 CHAPTER 5 START UP CAPITAL HOWMUCH YOU NEED AND HOW TO GET IT In general business terms start up capital isthe amount of money you need to see any new.venture through its developmental stage and itslaunch stage PREOPERATIONAL EXPENSES General Business Setup Expenses Location Costs. Build Out Costs Initial Inventory Office Equipment Initial Promotions MONTHLY EXPENDITURES FOR THE FIRST. Fixed Monthly Expenses Variable Monthly Expenses Your Salary HOW TO FIND CAPITAL 1 personal funds. 2 loans from friends or family 3 outside investor or bank small business loans 4 government programs CHAPTER 6 WRITING ABUSINESS PLAN. Executive Summary Company information List your legal name address contact information business structure Business concept describe why someone would believe your business is a good investment Describeexactly what kind of art will be sold to which collectors Mission statement . Financial features Describe the main financial features of your business including estimated sales profit and cash flow Financial requirements Describe in detail how much start up capital you will need what it will be spent on and how and when it will be repaid if borrowed Current state of the business What type of business is yours. Ownership Who owns the business and what if more than one person are their titles or roles Major achievements impressive exhibitions of the artists whose work you ll be selling It may include yourown accomplishments or acknowledgments of your expertise in the press Final pitch Summarize your goals and advantages that will leave your readers convinced Business Description.Industry SectorDescription of the IndustryDescription of Your GalleryProduct Description Labor RequirementsExpenses and Capital Requirements.The MarketS W O T AnalysisCustomers Sales and MarketingMarket Size and Trends StrategyCompetition Method of Sales.Advertising and PromotionPositioning in the MarketplaceManagementPricing Management DescriptionEstimated Sales Financials.Development and Production Cash Flow StatementDevelopment StatusProduction ProcessCost of Production Development CHAPTER 7 LOCATION AND.BUILD OUT ISSUES WHAT TO LOOK FOR IN A POTENTIAL GALLERY 1 Exhibition or gallery space 2 Reception and office space 3 Inventory space. 4 Comfort spaces restroom kitchen etc 5 Utility storage space WORKING WITH PROFESSIONALS TO FINDAND BUILD OUT YOUR SPACE Brokers. Lawyers Architects Contractors CHAPTER 8 10 MANAGING CASH. Basic of good cash flow management monthly expenditures staff salaries owner s draw invitations and postage. advertising opening reception refreshments or entertainment installation costs other costs Monthly income expectations. Calculating your cash flow Temporarily trimming expenses Raising cash quickly CHAPTER 9LOGISTICS CRATING SHIPPING .FRAMING PHOTOGRAPHING MANAGING AND INSURING ARTWORK the importance of being clear up crating types of crating. costs and otherconsiderations shipping local shipping domestic shipping. international shipping storage services framing mounting adhesives. moulding styles and photographing work inventory management CHAPTER 10STAFFING AND MANAGEMENT. traditional gallery job titles and responsibilities partner director assistant or associate director registrar. archivist exhibitions manager art handler shipping manager bookkeeper receptionist. gallery assistant intern traditional gallery job titles and responsibilities partner director. assistant or associate director registrar archivist exhibitions manager art handler shipping manager. bookkeeper receptionist gallery assistant intern how to structure your gallery staff. finding qualified candidates CHAPTER 11 13 CHAPTER 11 PROMOTIONAL EFFORTS PUBLICITY AND ADVERTISING Art galleries Promotional Effort More dignified.PUBLICITY BASICS free publicity is the predominant promotional goalCONTROLLING THE MESSAGE the story of gallery via announcements press releases andstory pitchesTarget readers Provide the basic facts of your.Sending to a magazine same as sending out your pressReinforce your identity and Easy enough to understand Topics need to Attract audiences HOW AND TO WHOM TO SEND YOUR ANNOUNCEMENTSFaxed Mailed two common ways categorizing your contacts into subgroups .E mail Marketing providetiming when your e mails get sent Services seeing how many of the e mails you sent Widespread are openedWHAT TO CONSIDER IN CHOOSING A PUBLICIST.Good connections and respect among the arts press vital qualities STANDARD PROMOTIONAL EVENTSOpening ReceptionsRegularly Scheduled EventsSpecial Events.HARNESSING THE INTERNET new ways to promote your gallery CHAPTER 12 GETTING EXPERT ADVICE ANDPROFESSIONAL ASSISTANCE SCHOLARS asking other galleries that deal with the same artists or type ofartwork most recommended way . INDEPENDENT CURATORSthe most typical way dealersnetworkingfind qualified independent curators CONSERVATORS highly specialized experts. and it is usually wise to heed their advice asking other dealers for recommendationsSearch on Web site of the American Institute for Conservation of Historic and Artistic LAWYERS General business set upGallery operations 4 reasons why you need.Art world issuesArrangements that a dealer can facilitate that help himself orhis clientsrecommendations from other dealers are the single best way to find anattorney 1 Incorporation . General Business Set Up 2 Real estate 3 Operating agreements 1 Artist contracts 4 Agreements with employees 2 Exhibition 5 Miscellaneous contract reviews agreements . Gallery Operations 3 Loan agreements 4 Consignmentagreement 5 Bill of sale Art World Issues Legal problems Title issues International Royalty.Compliance BOOKKEEPER AND ACCOUNTANT handle your incorporation and other general business set up CHAPTER 13 ART FAIRS ART FAIR HIERARCHIES an international array of galleries. 1 Major Art Fairs e g most important art and antiques fair is The European FineArt Foundation TEFAF fair Arguable 2 Second Tier Fairs e g The Palm Beach Fine Art and Antique Fair 3 Satellite Art Fairs e g Scope Art Fair THE APPLICATION PROCESS The deadline to apply for most art fairs is generally about nine.months before the event is held At least four images of all artists all artists in your gallery A biography for each of your artists including when they were born A clearly defined and documented project for presentation at the fair A completed application form . A registration fee in cash or money order No checks POLITICS AND OTHER CONSIDERATIONS art fair selection processes ART FAIR BOOTH AND INSTALLATION LOGISTICS Dealers who can afford to often hire art handlers to set up theirbooths but many newer dealers must do so themselves or with.the help of their artists Patience and diplomacy are essentialthroughout the process ART FAIR SURVIVAL KIT for example your printer runs out of ink CHAPTER 14 16 CHAPTER 14 ARTISTS WHERE TO FIND.THEM HOW TO KEEP THEMFinding artist recommendation otherdealers institution exhibitionstudio tours cold call submission THE ARGUMENT FOR AND AGAINST REPRESENTATION.1 Representation has evolved to mean aThe most successful approaches to running a gallery are as individual as they are innovative. Joseph Duveen. Either Duveen: A Life in Art by Meryle Secrest (University of Chicago Press, 2005) or, for a more sensationalist account, Duveen: The Story of the Most Spectacular Art Dealer of All Time by S.N.Behrman (Little Bookroom, 2003).