I’ve been quite conflicted about writing this post as it relates to a taboo subject… money. As a culture, we don’t talk about money or our finances unless we absolutely have to. And even then, it is usually to someone like a bank manager or a partner.
I’ve recently been reflecting on the purpose of this blog. It is about documenting my journey and being able to share it with you. With this in mind, it is only fair that I open my books and share the financial side of one hundredth gallery with you.
There is another reason for my sharing. Up until now, everything I have done has been for free, including the Grand Opening Exhibition. However, logically this can’t continue as I don’t have an endless supply of funds. After reading the financials below, you will see that one hundredth gallery is my ‘passion project’ for aspiring and emerging artists and is not a business that is ever going make me rich; well at least not in the financial sense of the word.
|Start Up Costs|
|· Running Costs (Bills)||2,700|
|· Council Rates||100|
|· Body Corp||170|
|Potential Monthly Income|
|· Rental||6,088 (100 per metre per fortnight)|
|Forecast Monthly Income|
|· Rental||4,262 (based on renting out 70% of the wall space)|
|· Commission (10%)||300 (based on 3,000 worth of work selling per month)|
|Forecast Profit (before tax)|
|2,082 per month|
|24,984 per year|
So, there you have it! My forecasted profit, which is also my forecasted salary is just under $25,000 per year before tax.
However, before I actually make any money, it will take over 13 months to recover my start up costs.
As with any financial planning, there are a number of variables at play with all of these numbers. If the gallery wall space rents at less than 70%, then I will make less than $25,000. On the flip side, if 100% of the gallery space rents out, then I will make a $47,000 profit/salary before tax… Look out seaside mansion in Brighton, here I come!
Commission is another variable; however one hundredth gallery is dedicated to increasing the exposure of aspiring and emerging artists, giving them the opportunity to build their CVs. If we do sell artwork, it will be at a lower price point, and 10% commission on a low number is a much lower number.
The last major variable is the interest rate. For every 0.25% they go up, $750 per year is added to my costs.
So the lesson here is, don’t open an art gallery for aspiring and emerging artists if you want to make money. Open an art gallery for aspiring and emerging artists for the love of art and to help a segment of our community get a head start.
I hope you have found this post interesting, and I hope that you will tell your aspiring and emerging artist friends about one hundredth gallery.
Our success and ability to support aspiring and emerging artists well into the future depends on it!