Everything You Need To Know:
The Creative Arts Sector Running An Art Business
With consumer demand for the arts increasing, the industry is booming. Within the UK, creative industries are rapidly growing, not only in London but all over the country. From 2010 to 2017, the creative industries grew in every region of the UK.
Whilst many artists and art business owners may worry about the profitability of their businesses, creativity and visual expression is continues to be appreciated and is increasingly gaining the recognition that it truly deserves. The internet and social media have proven to be great tools in enabling small artists and art entrepreneurs to showcase their work and businesses to large audiences, whilst simultaneously bolstering support and enthusiasm for the art industry as a whole. In 2017, the UK’s creative industries contributed a record breaking £100 billion to the UK economy, and as consumer demand continues to soar, there is undoubtably tonnes of opportunity for success and prosperity within the sector.
In the UK, there are over 2 million people currently employed within creative industries and since 2011, creative jobs have increased by around 30%. There are over 289,000 creative industry businesses here in the United Kingdom, the vast majority of which are microbusinesses, employing less than 10 people.
Around 33% within the industry are self employed, many of these working freelance. Although the arts sector has been hit by a number of government funding cuts in recent years, businesses are still finding ways to thrive. In the last ten years there has been considerable financial growth for creative industries across the country, with growth of 54.3% in the East of England, and 59.1% statistics in Scotland.
Globally, the art industry is worth around $50 billion, and 56.9% of creative industries businesses have a turnover of less than £100,000, which is higher than the 50.5% for UK businesses a whole.
How Do I Start An Art Business?
Kickstarting an art business of any sort is both exciting yet challenging. As with any business, there are a number of things to take carefully into consideration before launching your entrepreneurial venture…
- Produce Work You Are Proud Of
If you create your own artwork, then make sure that the work you wish to sell is work that you love and take pride in. This also applies if you curate artwork. Check out your competitors, taking a look round other shops, galleries, or even online, to see what sort of styles are currently popular, and perhaps consider adapting some of these elements into your own work to increase profitability. Equally, you could opt to produce or buy alternative work that it intended for a niche market. It is key to consider who you are hoping to sell to, or attract.
- Get To Know Your Target Audience
Thinking about your target audience is not only important when creating or collecting work, but also when you come to selling or displaying your work. Ask yourself where your target audience would buy, or view, art from. What sort of experience do they want?
- Develop A Detailed Business Plan
A thorough business plan is vital for any business looking to be successful. Amongst other things - be sure to consider costs, employee pay, insurance, marketing plans, and whether you will have a physical store or e-commerce business.
How Can I Get My Art Business To Grow?
Business expansion is often key to long-term financial success, and also important as an artist if you wish to build a name for yourself. Some great ways to push your work and business forward include:
Whilst advertising can be costly, you should try to view it as an investment in your business’ long-term success and profitability. Depending on the type of art business or gallery that you own, there are a number of ways to advertise - including through newspapers and sector specific magazines, posters. Also utilise social media, a tool which often carries the benefit of being a relatively affordable means of marketing.
- Grow An Online Audience
Building up an online audience is a great way to attract new clients for many different types of art businesses. Whether you offer art classes, own a gallery or sell your own artwork, starting up a blog, a Facebook page or a business Instagram account can prove to be hugely beneficial in getting your work out there to a wide audience. Posting regularly is important to retain people’s interest, as well as ensuring the content you post is interesting and engaging.
- Keep Learning
As with any business, it is important to keep up with the industry. Attending classes and tutorials can be a great way to ensure you don’t fall behind on art trends, as well as selling and marketing trends. A lot can also be learned online, just from searching on Google, or from browsing through competitors websites and social media pages.
- Attend Events & Meet Ups
Networking and building up connections within the art industry can be truly vital to the success of your art business. A great way to meet people is by attending events, or even hosting exhibitions yourself if appropriate.
Advantages Of The Creative Arts Sector
There are numerous advantages of working within the creative arts sector. It is an innovative, exciting industry based on self expression, and has been linked to improved mental health and wellbeing. As part of a study that got people involved in the arts, the Charity Arts and Minds helped to decrease feelings of depression in participants by 73%.
As well as promoting good mental health, there is also great potential for freelance and entrepreneurial work within the industry, allowing for greater professional freedom and creativity. The industry is doing increasingly well, contributing significantly to both the UK and global economy, and allowing for great opportunity for small and new art businesses.
Art Business Loans Art Gallery Finance
In recent years, there have been numerous government cuts to the arts. A 2017 report by The Arts Index found that local government funding had dropped by more than a third in the past ten years. This in itself has presented many challenges for the industry, as has the economic crash of 2008, which has resulted in it becoming increasingly difficult for small and new businesses to secure funding via the banks - consequently resulting in many creative industries lack of access to finance
Fortunately however, there are a wide number of alternative funding options available to provide art gallery finance and to support the ventures of small and new art businesses. Amongst the most popular alternative funding options are the merchant cash advance, art business loans, art gallery loans, business credit card funding, overdrafts, angel investors, and crowdfunding - each of which provide different benefits and meet the needs of varying arts business types.
Merchant Cash Advance
Through our merchant cash advance, your art business can receive a cash advance between £5,000 and £500,000 quickly and conveniently. Our online application is nice and simple and takes just a few short minutes to complete. Once you have applied for funding with us, you will receive a phone call from one of our account managers, and after all the documents have been submitted and approved, you can expect to see funding in your bank account within as little as 24 hours. Repayments will be taken automatically, from a small percentage of your monthly card sales revenue. Your art business will retain all revenue generated through cash sales, and there will be no interest rates to pay.
Art Business Loans
SME Loans can also provide you with art business loans. You can look to borrow anywhere between £1,000 to £500,000 through our unsecured art loans, providing your business with the financial support it requires to thrive. Funding will, again, be supplied rapidly to your account within as little as 24 hours, your repayments will then be made in monthly installments, at a pre-agreed interest rate.
Can I Get A Loan For My Art Gallery Business?
Because we look at the bigger picture and base approval largely off the financial performance of your business, we are able to offer finance to a whole host of businesses. As such, our funding products are widely accessible, and we even offer bad credit business loans especially designed to provide financial support to businesses who are struggling to secure funding due to their credit rating not quite being what it should.
What Can I Use Art Business Loans For?
An art business loan can be used in whatever way you require, benefiting your company’s growth and expansion. Our business loans are popularly used to support marketing campaigns, rebranding, equipment purchases and simply to rapidly improve cash flow and provide security during financial emergencies.
Is My Art Business Eligible?
To find out whether your business is eligible for funding with us, check that your business:
- Is registered in the United Kingdom
- Has been actively trading for a minimum of 6 months
- Has a monthly turnover or monthly card sale transactions of at least £5,000
- Has a business owner over the age of 18 years
- Is a limited company and/ or a sole trader
How To Apply
Click to apply. We will initially ask you to provide us with the following details:
- The name of your art business
- How long your company has been trading
- Your business’ average monthly turnover
- The amount you are looking to borrow
The next step involves disclosing your personal information. We will require from you:
- Your title, first name and surname
- Position in the business
- Contact details
Take time to carefully read through our terms and conditions and click ‘get my quote’. From here your application will be reviewed by one of our approved business finance suppliers, who will help find the best lender for your art business loan.
Please expect a call and email from one of our dedicated account managers to discuss the terms of your loan agreement.
Read through the terms of agreement thoroughly, sign the relevant documentation and return it to the lender. You will then be able to access the funds in your account in just 24 hours.