2011
Dance of the Sun, LLC Montana
State University-Billings AIBL
Small Business Plan
Table of Contents
Price .......................................................... 12
Promotion.................................................. 13
Executive Summary........................................ 2
Description of Business ................................... 4
Business Concept......................................... 4
Financial....................................................... 13
Start-up Summary and Breakdown of Funding
Needs.......................................... 13 Proposed
Product/Service Description ........................ 4
Use of Funds ............................. 15 Financial
Mission Statement....................................... 6
Assumptions.............................. 15 Analysis of
Vision Statement ......................................... 6
Payback .................................. 15 Sales Forecast
Management Team and Legal Form of
........................................... 16 Income
Organization................................................... 6
Statement: Travel and Business
Management Profile ................................... 6
Development.............................................. 16
Legal Form of Organization ....................... 7
Bibliography.................................................. 17
Industry and Market Analysis......................... 7
Market Description ..................................... 7
General Market Trends............................... 7
Consumer Profile........................................ 8
Demographics ......................................... 8
Psychographics ....................................... 8
Operations .................................................. 8
Marketing.................................................... 9
Cultural /Social Environment......................10
Economic Environment...............................10
Political Environment.................................10
Competitive Environment............................10
S.W.O.T
Analysis............................................10
Strengths
Weaknesses
Opportunities
....................................................10
................................................11
.............................................11
Threats.......................................................11
Objectives...................................................11
Brand
Positioning
Statement.......................12
Product Brand............................................12
Executive Summary
Unemployment on both the Crow and Northern
Cheyenne reservations is over 80% and the
economic growth on these reservations is
sporadic at best. This lack of economic
development is directly related to the lack of
opportunity for the residents of these
reservations. Many skilled individuals with the
will to work do not have to opportunity to do
so. In fact, there are a large number of skilled
American Indian artists in Eastern Montana
who are not able to produce and/or sell items
because they, either do not have the resources
to support the practice of their trade, or they
lack the ability to effectively market what they
create. Economic development on these
reservations is limited and many artisans must
go to great lengths in order to make attempts to
sell their art.
Dance of the Sun, LLC (DTS) is going provide
American Indian artists with materials and
studio space to produce their crafts, as well as
regional and international exposure with which
to sell their art. A facility to be built near the
Little Bighorn Battlefield National Monument
will serve as the headquarters for the company
and will feature a gallery, public studio space
and an arts and crafts market. Additionally, a
high-quality website will also be developed to
provide an international outlet that will feature
items produced locally, as well as art produced
by American Indians from across the country.
At the gallery, interested parties will be able to
witness, firsthand, the process involved in
creating the pieces offered by the artists
associated with Dance of the Sun, LLC.
Located inside the facility will be various
studios that are either open to the public or
viewable through a glass wall. Additionally,
for a nominal fee, interactive seminars,
workshops and community based events will
also be made available where
participants of all skill levels will have the
opportunity to create their own art.
To date, over three dozen artists with various
artistic expertise have expressed interest in
becoming a featured artist of the gallery. Their
disciplines include pottery, beading, leather
work, jewelry, solar pyrography and an
extensive assortment of painting styles. Some
of the established artists are Kevin Redstar,
Jonathan Beartusk and Rabbit Knows His Gun.
Their best work has commanded prices well
above $15k and all of their work, along with
many of the other artists interested in working
with Dance of the Sun, LLC, has been steadily
increasing in value. The most common
dilemma hindering the success of the talented
artists on the reservation is the absence of
competent agency committed to representing
their best interests. They do not know how,
where, or to whom they should sell their work
to receive the most value. They are artists, not
businessmen. Dance of the Sun, LLC can meet
this need.
The Global market for fine and decorative art
is approximately $60 billion (Ehrmann, 2010)
a year and the market for American Indian arts
and crafts is over $1 billion each year.
(NASW, 2010) Art appreciates at an average
rate of 13% annually and is considered to be
an investment as sound as gold by many.
(Rand, 2004) Trends indicate that the interest
and purchase of authentic American Indian art
is on the rise. Galleries and auctions houses
across the country, as well as in Europe, have
been reporting record sales volumes of
American Indian arts and crafts. (Heritage,
2011) Dance of the Sun, LLC will capitalize
on this demand with an authentic supply of
American Indian art.
creation of the balance sheets, income
statements, and cash flows, comparable
industry percentages have been obtained from
RMA quartile benchmarks. As can be seen in
the assumptions, Dance of the Sun
Every year more than 400,000 tourists from
across the country visit the Little Bighorn
Battlefield National Monument in Crow
Agency, MT.(Mangum, 2006) The battlefield
is the only major tourist attraction in the area.
Dance of the Sun, LLC will provide tourists
with a more well rounded, educational
experience that is based upon the American
Indian culture.
The executive director for Dance of the Sun,
LLC will be Curtis Wallette, who is also a
co-owner of the company. The other coowner
is Jonathan Beartusk, who is also a solar
pyrographist and will serve as the director of
public relations and outreach. Both men are
enrolled Northern Cheyenne members with
family ties to both the Crow and Northern
Cheyenne reservations. Finally, serving as the
financial director will be MSU Billings
accounting major, Zoey McRae.
does range realistically to industry standards,
providing a universally accepted standard for
our business and entrepreneurial goals.
A combination of sound marketing ,as well as
a potential for growth, results in the proforma
balance sheet showing a net profit of
$1,034,240 at the end of year one. Most
importantly, the cash flow statements show an
ending cash position of $5,073,139. Not only
does this increased cash flow allow for
business expansion and improvement, it also
opens the doors to the many ways that Dance
of the Sun can be the leader in Native
American art and cultural education as well as
becoming a catalyst for change within the
community. Many doors which were once
closed due to lack of funds can now be open
and the possibilities discovered.
The following table shows the results of the
six financial criteria for the base case
scenario.
As will be seen later in the proposal, a
combination of financing will be obtained
through owner investment, outside
investments, and the support of various
Montana organizations through loans and
grants. Total funding of $1,014,912 will be
needed to cover the cost of start-up expenses
as well as all the assets needed for the
operation of the gallery. To help guide the
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Gift shop
Description of Business
Business Concept
A few hundred years ago there were more than
ten million American Indians in North
America. They inhabited every region of the
continent and constituted hundreds of different
tribes. While many of the cultures varied
greatly from coast to coast, they were all
uniquely indigenous to the continent. The
preservation of culture was, in many cases, an
inherent necessity for the propagation of each
tribe. Valuable skills and practices were passed
from generation to generation, and as with
most cultures, a rich variety of artistic
expression was passed along as well. This
artistic and creative aptitude is what many
American Indians have prided themselves
upon for centuries. Unfortunately, a few of the
common obstacles that many American Indian
artists and artisans in Eastern Montana face are
the lack of studio space and materials, the lack
knowledge of how to effectively market their
products and the limited number of community
organizations that are positioned to offer
support.
Dance of the Sun, LLC recognizes an
opportunity to enrich and preserve the
American Indian culture, while at the same
time contributing to economic development on
the reservation by providing a forum for both
aspiring and established American Indian
artists to create and sell the products realized
through their artistic expression. Two primary
services will be offered: First, to assist with the
development of local American Indian artists
on the Crow and Northern Cheyenne
reservations, a communal studio/gallery will
be constructed near the Little Bighorn
Battlefield. The facility will function in a
manner similar to a traditional art cooperative
and provide materials, along with studio space,
to artists in exchange for preferred
consignment rights and participation in a
mentor/mentee
program. Second, a high-quality website will
be developed by local graphic and web design
firm A/D Creative Group that features the
creations of our local artists, as well as the
creations of the numerous American Indian
artists located across the country that have
already expressed interest in providing art for
Dance of the Sun, LLC to promote and
distribute.
The creators of Dance of the Sun, LLC will be
utilizing established networking channels in
the U.S. and abroad to maximize the value
obtained through the sale of featured art.
Jonathan Maxwell currently has a piece of
President Obama displayed in the White
House and is in the process of having a
piece displayed at the Smithsonian’s
Museum of the American Indian. He also has a
relationship with London-based CURB media
Due to the ever increasing tourist interest in
the Little Bighorn Battlefield, expansion of
,the tribal casino, annual events like Crow Fair
and the proximity to I-90, Dance of the Sun,
LLC will also feature an art themed gift shop
that will cater to tourists and feature many of
the less expensive artistic items created by the
artists at the gallery.
Product/Service Description
The products offered through Dance of the
Sun, LLC will feature the artistic aptitude
synonymous with the American Indian culture.
Every piece sold through DTS will be
authentic American Indian created work and
marketed in accordance with the Indian Arts
and Crafts Act of 1990. (U.S. Dept of the
Interior, 2011) The mediums supported will
include painting, solar pyrography,
photography, beading, leather work, pottery,
jewelry, weaving, traditional regalia and
digitally created art.
In order to ensure a steady supply of high
quality artwork and a sufficient number of
capable artists to produce it, DTS will make
available a minimum of twelve studio
partitions for the artists to share. There will
be between four and eight “core” artists who
will be allotted preference regarding studio
use. The work of the core artists will be
heavily promoted and thoroughly featured in
exchange for their willingness to each mentor
a couple of developing artists that display
potential and seek guidance. These mentees
will part of what will be considered the
gallery’s “secondary” artists, who will number
approximately thirty. They will be made up
primarily of aspiring artists who are only able
to devote a limited amount of time to their
craft. They will share the remaining studio
time and space equitably.
Dance of the Sun, LLC will assume exclusive
consignment rights for a minimum of one year
on all art created within the facility or with
materials purchased and supplied directly by
the facility. After one year, artists will have the
option to take possession of the art dependent
upon the satisfaction of specific criteria.
Before becoming affiliated with the
co-operative, every artist will enter into a
contractual agreement as a condition of
participation. That contract will promote
creative autonomy, while protecting the
financial efficacy of the business. All of the art
will be insured during every stage of
production, storage and shipping.
The source of revenue with the most
economic potential will undoubtedly be the
internet based services of the company.
Dance of the Sun, LLC will develop and
maintain a high quality website that sells and
promotes art similar to Heritage (Heritage,
2011) and the Medicine Man Gallery.
(Sublette, 2011) A significant amount of art
marketed through the website
will be the artwork of various American
Indian artists who are not located locally. The
art will be displayed in a high resolution,
high dpi (1000) format that will allow end
users to view each piece in intricate detail.
Accompanying the high resolution images
will be a detailed artist profile including
video and/or pictures that outline the process
involved in creating the work. Art featured
through the website will be primarily
obtained on consignment and insured through
Dance of the Sun, LLC.
The cooperative will also serve as an art based
cultural educational center. Workshops and
seminars will be made available during the
time of year when demand for them is highest.
Community based events, such as artistic
festivals and Q&A appearances by renowned
artists. Traditional northern plains American
Indian music will play on speakers located
throughout the facility. Visitors will be
provided a culturally insightful experience that
will allow them the opportunity to view, and
possibly engage, artists at work. Four of the
studios will have at least one glass wall that
will be transparent or open to the public. The
ultimate goal of the cooperative is to create an
interactive environment that is rich in culture
and substantial in content.
The cooperative will also include a small gift
shop that will feature many of the items
produced or procured by Dance of the Sun,
LLC, including local arts and crafts created
by independent artists. Prints will also be
made available of the work with the highest
demand. Initially, the independent arts and
crafts will obtained on consignment, but the
option of directly purchasing items will be
explored in the future.
Not all of the art in the possession of the
cooperative will be able to be displayed in
the gallery or the gift shop. Therefore, storage
space will have to be allocated and a
cataloging system put in place that allows
prospective buyers to review the inventory
that is not on display. We can organize the
stored inventory by category and artist.
to struggling American Indian communities
throughout the country.
Success will be measured by the ability of our
artists to produce a sufficient number of
differentiated, high-quality products in order to
meet the demand created by our marketing.
The strength of our brand image will be a
measurable success measure dependent upon
the success of these two factors. At the
foundation of the entire operation, will be our
ability to maintain and represent enough artists
to support the costs of operations.
Management Profile
The driving force behind the creation and
development of Dance of the Sun, LLC is
Curtis Wallette. He will serve as the Executive
Director and be a co-owner. He is currently in
his junior/senior year at MSU Billings where
he is majoring in marketing and business
management. He has been recognized for an
array of accomplishments directly related to
his performance at the university. He has had
variety of management experience in the retail
and manufacturing industries, including
responsibility for the inventory control process
of a Wal-Mart supercenter that grossed over a
$165 million a year and the daily operations of
a Steel and Recycling center that processed
$25 million of materials a year. He believes in
the value of hard work and believes that the
key components to success are determination
and dedication.
The opportunity for potential growth in the
future will reside within our ability to expand
our base operations by using our business
model to develop additional cooperatives that
will be strategically located using a
cost-benefit analysis. There are many other
American Indian communities throughout the
country that could benefit from similar
operations in their communities. Partnerships
with local artists for these additional
operations are preferred.
Mission Statement
Dance of the Sun, LLC is dedicated to
providing opportunity and inspiration for
aspiring American Indian artists, while
contributing to the economic and cultural
prosperity of the American Indian people.
Vision Statement
Dance of the Sun, LLC becomes a catalyst in
the revival of the American Indian culture,
sharing its vision by instigating the
implementation of additional cooperatives that
provide economic stimulation and relief
Management Team and Legal Form of
Organization
The visionary behind the artistic inspiration
and cultural contribution of the cooperative is
Jonathan Beartusk. He will be the director of
public relations and outreach as well as the
second co-owner. He is an accomplished solar
pyrographist who has been establishing a
strong reputation for producing quality art. He
has made international connections relating to
existing prospective connoisseurs of American
Indian art and has made several trips abroad as
a result. He currently has a portrait that he
burned of Obama hanging in the White House
and is in the process of having one of his
pieces displayed in the
Smithsonian’s Museum of the American
Indian. He believes that quality work is a
result of passion and that true success is
realized through the practice of living in
accordance with one’s values.
The financial structure of Dance of the Sun,
LLC has been composed by Zoey McRae. She
will serve as the cooperative’s Financial
Director. She is currently a junior/senior at
MSU Billings majoring in accounting. Zoey
brings an element of diversity to the
cooperative. She has a degree in graphic
design from Northwest College and has spent
five years in the non-profit industry working
as a magazine designer and program
coordinator. She has also worked as a capital
equipment purchasing agent for Montana’s
largest hospital. Raised on the Fort Peck
Indian Reservation, she believes that people
should not only work hard, but work smart.
She lives her live according to the values of
fiscal responsibility.
Legal Form of Organization
Considering the expected revenues, size of the
operation and availability of start-up capital,
Dance of the Sun, LLC is a Limited Liability
Company. While growth is expected, the
interests of the company, as well as those of
the investors, will be best protected by this
form of legal organization. Principal ownership
will be shared between Curtis Wallette and
Jonathan Beartusk. Additional partners/owners
are a possibility in the future and the
designation of legal form could change to an S
corportation if the benefits to the company
justify it. Adopting the LLC format will also
protect the owner from the double taxation
associated with traditional corporations and
provide the owners with direct profits as an
LLC is not a tax paying entity but a tax
reporting entity.
Industry and Market Analysis
Market Description
The value of investing in art has been
compared to that of gold. Art has consistently
appreciated over the last hundred years.(Rand,
2004) Not only is the purchase of fine are a
secure investment, but it is also an investment
that can be hung on a wall and appreciated at
the same time. The current annual market for
Fine Art alone is valued at $58.1 billion and is
composed of approximately 40 million
transactions a year. (McAndrew, 2009) The
United States and the U.K. constitute two
thirds of total global sales, with the U.S.
purchasing nearly $30 billion alone. Global
sales of art are divided between auction houses
and dealers, which shared approximately 45%
and 55% of the market respectively.
(McAndrew, 2009) There are currently
400,000 businesses in the art industry
worldwide.
The size of the American Indian arts and
crafts industry is over $1 billion annually and
is growing larger than that of the rest of the
art industry. (NASW, 2010) The vast majority
of sales of American Indian art are in the U.S.
and the EU, with the greatest volume of that
art being produced in the American
Southwest. Paintings and classic regalia
constitute the mediums in highest demand.
Over 400,000 people visit Little Big Horn
Battlefield each year. The majority of our
target market includes historically
significant destinations as part of their
annual vacations. They spend billions of
dollars each year on their trips purchasing
items that they consider valuable.
General Market Trends
Like many other industries in 2008, the art
industry took a hit when the banking crisis
struck. The art that lost the most value on
the global price index was the most
expensive art, which in some cases lost
nearly half of the value from the year before.
Moderately priced art suffered losses in the
price index, but is leading the drive in the
resurgence to pre-crisis prices. All indications
are that the industry will continue to grow as
long as there are people to create it. The
cumulative average rate of growth over the
previous 20 years has been 13.1% per
year.(Beest, 2010) Over the past couple of
years, the art industry has nearly rebounded to
pre-crisis levels. Since 1990, the overall price
index of art has rose 88% in the U.S. It is easy
to ascertain that art has proven to be a reliable
investment. (Ehrmann, 2010)
Consumer Profile
Demographics
Research has indicated that our target market
needs to be working class professionals
between the ages of 31 and 69, who reside
primarily in metropolitan areas in both the
U.S. and Europe. They are identified as
“luxury” consumers .The average income is
slightly over $100k per year and they spend an
average of $8,062 per year on art. (Duddy,
2008) Some of the other demographics are:
95% own their homes 73% vacation
annually 61% are married 70%
regularly make purchases online 49%
are ages 31-49 44% are 50 and above
Psychographics
The average purchaser of fine art has a self
image that shows then to be refined, trendy, or
culturally in tune with what is considered
valuable and significant.
In fact, 61% of them state that they regularly
attend art-themed functions because they
simply think that the practice is enjoyable.
(Duddy, 2008) They are a segment that is
generally open to new experiences and the
purchase of art is more than an investment.
They seek out and purchase artistic items
because they enjoy the process.
Operations
The facility needed for the venture will be a
4,000 sq ft building located near the Little Big
Horn Battlefield in Crow Agency, MT. A
beautiful building will be constructed that will
feature an outside marketplace that will be
made available, for a fee, to vendors during the
busier tourist season. The facility is intended to
foster a feeling of pride among the residents of
Crow and will offer something that is currently
unavailable to all of the tourists that visit the
area each year: A genuine, artistic American
Indian experience. A physical location has
already been selected and negotiations are
currently underway for the land that Dance of
the Sun, LLC will construct the cooperative. In
depth research has been conducted to estimate
the resources necessary to implement and
sustain the project.
The secondary goal behind improving the
economic situation of American Indian artists,
and their families, is the preservation and
propagation of the American Indian culture. In
order to enhance the purchasing experience of
everyone who obtains art from Dance of the
Sun, LLC, the goal of the cooperative will be
to allow interested consumers to become as
involved with the entire process as they would
like. The design of the daily operations keeps
this in mind.
Every artist who becomes a part of Dance of
the Sun, LLC will construct a biography that
will be made available both online and in the
gallery. Videos will also be made from time to
time and added to the online biographies. As
we are striving for a diverse consumer base,
we understand the need to satisfy each
consumer’s preference to be informed. Artists
will check out the materials necessary to
create their work and will have to reserve
studio space. Before they start or continue on
a new piece of artwork, a picture will be
taken. Once they finish for the day, another
picture will be taken. This way, progress can
be catalogued for their profiles, and liability
issues can be avoided.
The experienced “Core” artists, who also
mentor developing artists, will receive
preference when scheduling studio time and
they will also receive more favorable
consignment rates than the “Secondary”
artists. The secondary artists directly affiliated
with the cooperative will receive more
favorable rates than the indirect vendors and
artists who sell their work through the
company, but do not create any of their art in
it. All of the products will be marketed where
the most profit is deemed possible.
Jonathan Beartusk is currently affiliated with
Curb Media based out of London and is taking
a trip to western Europe, at the request of
various organizations, to share his culture and
his art. There are also interested parties in the
United Arab Emirates who recently paid for
Jonathan to visit Dubai and Abu Dhabi where
he completed a piece they commissioned him
to do. These international contacts, in
conjunction with a great number of contacts
throughout the U.S., will reduce the entry
barriers to Dance of the Sun, LLC.
The most difficult element involving
necessary for Dance of the Sun, LLC to
overcome will be that the majority of
customers would prefer to purchase a piece
of artwork that they were able to physically
view before handing over their money. For
this reason, the shipping process intended
for all customers is one that maximizes the
convenience of doing business with the
cooperative. All merchandise will be
returnable, within a reasonable amount of
time, no questions asked.
Marketing
The success of the marketing efforts will rely
heavily on the cooperatives ability to
establish and maintain good working
relationships with everyone involved in the
production and distribution process. A steady
supply of quality work will need to be
available for the demand that the marketing
ignites.
Dance of the Sun, LLC will face competition
on two fronts. First, the cooperative will have
to compete with a couple of local galleries/art
dealers. Second, the cooperative will have to
compete with nationally established online
galleries and auction houses.
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
Product
Net
Present
Value
$5,851,059
Retail Price
Net Present
Value (RRR)
$4,550,534
Promotion
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Place
American
$500-$25,000
Internet, magazines
Galleries,
Indian Arts and
auctions and
Crafts
website
American Indian
American
$200-$20,000
Internet, magazines
Gallery and
Arts Council, INC
Indian Arts and
website
Crafts
Heritage Auction
American
Various
Internet, magazines, Gallery, event
Galleries
Indian Arts and
direct mailing
centers,
Crafts
The Trading Post
American
$20-$2000
Signs, proximity to
Gift shop
Cultural /Social Environment
Political Environment
Indian Arts and
Little Big Horn
The tastes of a society are Crafts
constantly changing
The political
tone of the country has been
Battlefield
and various artistic styles or mediums
shifting from one that is liberal to one that is
Local gallery
American
$100-$2,500
Word of mouth
Gallery
experience various levels of demand.
more conservative. Dance of the Sun, LLC
Arts
and in
Presently, American IndianIndian
culture
is held
will have to be sure to communicate values
Crafts
high regard in the more densely populated
that stress patriotism and family values. The
metropolitan regions of the U.S. and the EU.
political tone in the EU is more liberal than
Means
End
Chain
(Ehrmann, 2010) In order to ensure that the
the one in the U.S. American Indian art will
interest
in
American
Indian
creations
is
need to be portrayed as progressiveValues
and
Products
Attributes
Physical
Psychological
capitalized upon, it is important that the
inspirational. Consequences
Consequences
promotion of art remains true to the culture
Painting
Distinctively Made
Unique Expression
Culturally
Appreciative
that produced it.
Competitive Environment
Confident
Direct competition from similar ventures that
can claim authentic American Indian branding
Economic Environment
is limited nationally, and even more so
The current recession initially devalued the
regionally.
be imperative to Empowered
establish a
Solar
Historical/Traditional
Culturally
Insightful It will
Educational
price index of the art market, but the art is
Pyrography
Figures
strong brand image in order to establish a
once
again increasing
in demand and the
reputation for offering value that is based
industry, as a whole, is growing. Many
upon a differentiated approach.
consumers are still reluctant to purchase items
with
a value based upon
qualitative
Jewelry
American
Indiandata, but Aesthetically
Good looking
Self-Esteem
many astute investors
have
recognized
the
S.W.O.T
Analysis
Culture
Pleasing
safety associated with investing in fine
Strengths
art.(Mael, 2008) As a result, art is soon
Unique products
expected to surpass the highs values that
Global Contacts
Crafts/Regalia Cultural Theme
Interactive
Comforting
Confidence
existed before the financial crisis.
Previous Business Experience
Social/Professional contacts
Facilities
Land Purchase
Price
Complete
225,000.00
Culturally-focused area
Knowledge of the art industry
Weaknesses
Limited resources New
business model
Underdeveloped distribution
channels Unfamiliarity with
international business law
Opportunities
Enormous amounts of revenue
spent each year on art
High level of interest in
American Indian art in EU and large
U.S. metropolitan areas
Large network of established
distribution channels for art industry
Numerous sources of potential funding
Threats
Demand highly affected by economy
Mature market (competition) Awareness
Language/Cultural barriers Changing
tastes
Objectives
.015% of the total market is the objective of
Dance of the Sun, LLC
$1,000,000,000 total revenue for American
Indian Arts and Crafts industry .015 % is
projected market share that Dance of the Sun
can capture
=$1,500,000 total revenue for cooperative
$1,500,000 total annual revenue for Dance
of the Sun
140 Core and Secondary artists =$10,621 of
art each artist needs to produce
$10,621 in art that is needed from each artist
$1,200 average cost per item =8.85 pieces of
art work needed to be sold per artist per year
to reach market share
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
Product
Net
Present
Value
$5,851,059
Retail Price
Net Present
Value (RRR)
$4,550,534
Promotion
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Place
American
$500-$25,000
Internet, magazines
Galleries,
Indian Arts and
auctions and
Crafts
website
American Indian
American
$200-$20,000
Internet, magazines
Gallery and
Arts Council, INC
Indian Arts and
website
Crafts
Heritage Auction
American
Various
Internet, magazines, Gallery, event
Galleries
Indian Arts and
direct mailing
centers,
Crafts
The Trading Post
American
$20-$2000
Signs, proximity to
Gift shop
Indian Arts and
Little Big Horn
Crafts
Battlefield
Local gallery
American
$100-$2,500
Word of mouth
Gallery
Indian Arts and
Crafts
Brand Positioning Statement
The prices range for art offered will range from
Making a purchase from Dance of the Sun,
small craft items that start at $50 to
Means End Chain
LLC guarantees the procurement of an
extravagant pieces of fine art that could be
Products
Values
authentic
AmericanAttributes
Indian expression of artPhysical valued at more
than $50,000. In the
world of
Psychological
that will exemplify the cultural quality withConsequences
Consequences
art, price is indicative
of quality. With this in
which
it was made.Distinctively Made
mind, the price
determined for allAppreciative
non-auction
Painting
Unique Expression
Culturally
pieces will beConfident
carefully calculated. Presently,
after reviewing all of the potential art from
Product Brand
artists interested in becoming a part of Dance
Dance of the Sun, LLC will establish itself as a
of the Sun, LLC, the average price of the fine
procurer of quality art and a resourceful broker
Solar
Historical/Traditional
Culturally
Insightful
Educational
Empowered
art procured on
consignment is expected
to be
that is able to obtain high value for the pieces it
Pyrography
Figures
around $1,500 per piece.
sells. Establishing brand image will initially be
dependent upon offering high quality. The
progression of the company brand image will
Place
eventually
for its marketing
Jewelry be one recognized
American Indian
Aesthetically
looking
The existing Good
distribution
channelsSelf-Esteem
necessary to
prowess.
Culture
Pleasing be successful in this industry are well
established, but underutilized. Many avenues
are only available to the galleries and artists
Price
reputations.Confidence
Every
The
pricing strategy
will beTheme
based upon efforts
Crafts/Regalia
Cultural
Interactive who have impeccable
Comforting
possible opportunity to acquire exposure
to increase demand by increasing awareness
through existing channels, such as
through focused target marketing.
Facilities
Land Purchase
Price
Complete
225,000.00
the auctions of Christie’s and Sotheby’s,
will be explored and studied. Art created,
displayed and sold at the cooperative will be
promoted to every media outlet that shows the
slightest interest in any of the products
created.
Promotion
The advertising budget will focus primarily
on obtaining exposure. Brand image is the
primary objective. The creative adverts will
be directed at the magazines and industry
events enjoyed the most by our target market.
A substantial amount of funding will need to
be allocated and maintained in order to
achieve effective results.
The fine art industry is in the market maturity
phase of the product life cycle. The overall
demand for art is relatively understood.
Recognition is a precursor to success. Since
word of mouth is one of the most powerful
forms of advertising, Dance of the Sun, LLC
will focus heavily on customer service and
satisfaction. In the art
industry 90% percent of a gallery’s sales
will come from 10% of its customers. Email
addresses will be collected from as many
potential customers as possible. A quarterly
news letter will be developed informing
patrons about the events, artists and changes of
the cooperative. Along with promoting art and
providing news, tips about hanging art or
recognizing valuable pieces will be given. The
news letter can be sent via email, as well as
through direct mail campaigns.
Although the sale of American Indian arts
and crafts is a more than a $1 billion industry,
it is still considered to offer heterogeneous
and specialty products. Therefore, selective
distribution that employs a marketing strategy
that informs and persuades the target market
is essential. If presented to the correct
audience, the
efficacy of the marketing efforts will be
extremely high and the success of the
cooperative will be magnified.
Financial
Start-up Summary and Breakdown of
Funding Needs
Dance of the Sun, LLC has planned for eight
expenses which need to be financed with cash
before the gallery doors can be opened and
business commenced. They include: 1)
financial and business advising through
Waddel & Reed; 2) the financing portion of
the soft costs association with the land
purchase and building construction; 3) the
initial installation of security by Kenco
Security for the purpose of asset protection; 4)
the purchase of gallery collection management
software in order to catalog all artwork coming
in prior to the start of business; 5) initial
website development for immediate web
advertising and sales; 6) the cost to transfer
public utilities to our name with an initial
set-up charge; 7) the state filing fee charged
when submitting an application to register as a
limited liability company within the state of
Montana; and 8) local and Tribal licensing
fees. These separate amounts total $61,051
Start-up assets include both the cash required
to cover the twenty-five percent equity
required to obtain the full amount of the
Montana Department of Environmental
Quality and the Business and Industry
Guaranteed loans needed for the purchase of
the building and cost of complete construction
work as well as all long-term assets needed for
the operation of DTS. A loan of $717,000 to
cover the cost of building an art gallery up to
the standard of the U.S. Green Building
Council is needed, so twenty-five percent
needed for equity is $179,250.
economic climate of our community through
Net
Net Present
Internal
Modified
increased tax revenue as well as the economic
Present
Value (RRR) Rate of
Internal Rate
climate for the many artists involved, and 3)
Value reduce our reliance on Return
of Return
nonrenewable
energy
$5,851,059
$4,550,534
37%
24%
4 years 4.3
5 years 9.8
resources
through the development
of our own
Base Case
months
months
renewable energy system used to supply the
power needed for building functions. The rate
Product
Retail Price
Place
for this Promotion
loan is 6.5%, as compared
to similar
Competitor
loans from the MCDC Native American Loan
Domas And Gray
American
$500-$25,000
Internet, magazines
Galleries,
Fund which carries a current interest rate of
Gallery
Indian Arts and
9.5 percent (MCDC, 2011). auctions and
Crafts
website
American Indian
American
$200-$20,000
Internet, magazines
Gallery and
Arts Council, INC
Indian Arts and
website
In addition to the B&I loan, we are able to
Crafts
obtain a $100,000 Montana Department of
Heritage Auction
American
Various Environmental
Internet,Quality
magazines,
Gallery,
event
Low Interest
Loan
for
Galleries
Indian Arts and
direct
mailing
centers,
the solar energy components of the building
Crafts
(Sunelco). There are several benefits to this
The Trading Post
American
$20-$2000financing,
Signs,
proximity
to theGift
shop
the greatest
being
lower
interest
Indian Arts and
Little
Big
Horn
rate of 4.5 percent. It also testifies to the
Crafts
Battlefield
department’s
belief that we have taken steps to
Machinery
and
office
equipment
total
$5290
build a building
Local gallery
American
$100-$2,500
Word of which
mouthis very energy
Gallery
with furniture an additional
$2344.
As
conscious
with
a
spirit
of
returning
back to the
Indian Arts and
membership increases and more visitors
environment that which we have received.
Crafts
attend on a daily basis, we will revisit our
furniture needs to make sure we are fulfilling
Means
End Chain
our
customer’s
expectations and standards.
The Montana Department of Commerce,
Montana Indian Equity
Fund, has
Products
Attributes
Values
Physical through the Psychological
granted us $7,000
to assist in the purchase of
Consequences
Consequences
To
cover
the
cost
of
purchasing
the
land
and
assets
including
furnishing,
equipment
and
Painting
Distinctively Made
Unique Expression
Culturally
Appreciative
completing the building construction, a loan
technology as
well as for the use as working
Confident
will be obtained from the Business and
capital for business operations. Our art gallery
Cooperative Assistance Department through
and cooperative qualified for this grant as the
the Business and Industry (B&I) Guaranteed
business owner is an enrolled member of
Loan
purpose of the B&I Culturally Insightful
SolarProgram. "The
Historical/Traditional
Educational
Empowered
Montana's federally
recognized Northern
PyrographyLoan Program
Figures is to improve,
Guaranteed
Cheyenne tribe. We were also able to meet the
develop, or finance business, industry, and
requirement of a minimum dollar to dollar
employment and improve the economic and
match through the generous support of several
environmental climate in rural communities"
Equity
Jewelry
American Indian
Aestheticallyoutside investors.
Good (Montana
looking Indian
Self-Esteem
(Business and Cooperative Assistance, 2011,).
Fund,
2011).
Culture
Pleasing
As we are a legal entity, a registered limited
liability company in the state of Montana, we
We have also received outside investments
qualify as a borrower.
Crafts/Regalia Cultural Theme
Interactive for the sum of
Comforting
Confidence
$230,912 and owner
To meet further qualifications, we are
investments of $60,000 to help build equity
proposing to engage in a business which will
1) provide employment, 2) improve the
Scenario
Undiscounted
Payback
Facilities
Land Purchase
Price
Complete
construction
Discounted
Payback
225,000.00
in the company and cover smaller but
equally as essential start-up expenses.
Proposed Use of Funds
One should only invest financially in a product
or a program in which he or she thoroughly
believes, and this is exactly what Curtis
Wallette and Jonathan Beartusk have done.
Their investments will go to supplying Dance
of the Sun with liquid cash to cover expenses
for the first several months where the sales of
fine art might not be sufficient to cover all
operating costs. $7,000 will also go as a
matching fund to the grant supplies by the
Montana Indian Equity Fund.
Along with funding comes responsibility to
use investment monies received for the
originally requested purposes. $230,912 will
first be used to fulfill the 25 percent
requirement needed to obtain the B&I loan.
Remaining monies will then goes to fulfill the
equity requirement of the Montana
Department of Environmental Quality loan
and any amount after that will cover the costs
of office furniture, machinery and equipment.
The funds received via the B&I ($617,000)
and MT Dept. loans ($100,000) will be used
strictly for the purchase of land and
construction of the physical building to house
the art gallery. With the $100,000 from the MT
Dept. of Environmental Quality, the costs of
installing a solar system for off-the-grid
electricity will be almost entirely covered. In
keeping with the professional requirements of
any business application, complete proposals
were submitted to both governmental agencies
detailing the need for the loan along with how
the criteria specific to each loan would be met.
Financial Assumptions
In order to complete any number for proforma
financial statements and budgets, several
financial assumptions must be made. Among
those calculated for Dance of the Sun, LLC
include the start-up costs and funding,
long-term interest rates, the depreciation
schedule, employee salary and payroll
expenses, as well as the accounts payable
schedule which reflects in the statement of
cash flows.
Analysis of Payback
The following criteria influence the decision
of an individual to undertake a new business
venture:
Undiscounted Payback Discounted
Paybak Net Present Value Net Present
Value (using RRR) Internal Rate of Return
(IRR) Modified Internal Rate of
Return(MIRR)
The following table shows the results of the
six financial criteria for the base case
scenario
The figures show the payback for Dance of
the Sun, LLC will take less than four years,
meaning it will recover the initial cost of the
venture within the first four years. Discounted
payback also provides positive payback
projections. This is an excellent indication
that DTS is a positive venture.
.
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Product
TheCompetitor
positive IRR and MIRR
are also strong
evidence
theGray
venture would
be able to
Domasthat
And
American
generate ample cash flows to recover the
Gallery
Indian Arts and
initial cost of the investment in a timely
Crafts
manner. Therefore, Dance of the Sun is
American
positioned
for Indian
success in theAmerican
art gallery
Arts Council,
INCbase case
Indian
Artsall
and
industry
because the
figures
Crafts
indicate an adequate amount
of future cash
Heritage Auction
American
flows.
Galleries
Indian Arts and
Crafts
Sales Forecast
Inspired
by
the
concept
of
a
gallery created to
The Trading Post
American
market only fine art and small
artsArts
and and
crafts
Indian
works by Native American Crafts
artist, we are
excited to begin operations with forty artists
Local gallery
American
core artists. In addition to the perks expressed
Indian Arts and
earlier, each artist will also receive an
Crafts
additional 10 % sale premium,
resulting in a
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
additional thirty artists will work off-site to
Retail Price
Promotion
Place and
produce smaller,
less expensive artwork
traditional arts and crafts pieces. The sales
$500-$25,000
Galleries,
premium isInternet,
set at 50magazines
percent with the
average
auctions
sale priced expected to be $100. As part of and
the
growth of the gallery, we expect towebsite
increase all
$200-$20,000
and
three areasInternet,
of artistsmagazines
as we developGallery
a
reputation for being the best gallery
catering to
website
Native American art by Native Americans.
Internet, magazines, Gallery, event
direct mailing
centers,
Income Statement: Travel and Business
Development
$20-$2000
Signs, proximity to
Gift shop
Upon reading
through
the
income
statement,
Little Big Horn
one sourceBattlefield
of revenue should stand out.
Available to Dance of the Sun, LLC as a
$100-$2,500
Word of mouth
Gallery
cooperative with a primarily rural membership
of both local businesses and individuals is the
Rural Business Opportunity Grant (RBOG)
total of 60 % of the sale paid back. We expect
through the United States Development of
the Means
work ofEnd
eachChain
of these artists will be of
Agriculture Rural Development Department.
higher
quality and inAttributes
higher demand, and
provides training
and
Products
Values
Physical The RBOG program
Psychological
based on current markets, feel confident in Consequences
technical assistance
to
promote
sustainable
Consequences
estimating all future sales at a beginning
economic development for business and
Painting
Distinctively Made
Unique Expression
Culturally
Appreciative
average price of $1,500. Based on Forbes
entrepreneurialConfident
development. Our business
statistics, we can also reasonably expect a
projects eligible for funding include
13.1% appreciation in art prices.
developing trade strategies with local,
national, and international business contacts
OneSolar
hundred artists will
work off-site as
opportunities,
technology-basedEmpowered
economic
Historical/Traditional
Culturallyand
Insightful
Educational
secondary
artists
with
each
one's
work
development planning and training. DTS has
Pyrography
Figures
consigned through the gallery. As
received the maximum amount of $50,000 for
a business serving a single state. We have
these artists do not have the same hands-on
chosen to allocate this over the first five years
Jewelry
American
Indian
Good looking
work
of our core artists,
the sales
premium Aesthetically
of operations, budgeting
$10,000 forSelf-Esteem
each year
Culture
Pleasing
will be set at 55%. The
average sale price
to cover travel and business development
expected for each artist is also $1,500 as the
expenses. Although this appears to increase
revenue in Year 1 by $50,000, this grant
Crafts/Regalia Cultural Theme
Interactive
Comforting
Confidence
revenue is actually
restricted for specific
quality will be no less than those who are
expenses.
local and choose to be part of the core. An
Facilities
Land Purchase
Price
Complete
225,000.00
Various
Bibliography
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Magazine: http://www.nativepeoples.com/article/articles/278/1/Scottsdale%3A-NativeArts-Mecca
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"How Much Should a Web Design Cost?"
http://www.bbb.org/us/article/558
"How to Get Funding from Angel Investors"
http://www.bbb.org/us/article/558
12-Month Cash Flow Statement Sample
http://www.bbb.org/us/article/558
Anderson Ranch Arts Center Annual Report 2009
http://www.bbb.org/us/article/558
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Art Gallery Insurance New York (white paper)
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Business & Cooperative Assistance
http://www.bbb.org/us/article/558
Credit Card Processing Review
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Ecomonic News Release: Consumer Price Index Summary
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Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Physical
Consequences
Unique Expression
Psychological
Consequences
Culturally
Confident
Values
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Painting
Distinctively Made
Solar
Pyrography
Historical/Traditional
Figures
Culturally Insightful
Educational
Empowered
Jewelry
American Indian
Culture
Aesthetically
Pleasing
Good looking
Self-Esteem
Appreciative
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Physical
Consequences
Unique Expression
Psychological
Consequences
Culturally
Confident
Values
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Painting
Distinctively Made
Solar
Pyrography
Historical/Traditional
Figures
Culturally Insightful
Educational
Empowered
Jewelry
American Indian
Culture
Aesthetically
Pleasing
Good looking
Self-Esteem
Appreciative
Dance of the Sun, LLC
Sales Forecast
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Physical
Consequences
Unique Expression
Psychological
Consequences
Culturally
Confident
Values
Culturally Insightful
Educational
Empowered
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Painting
Distinctively Made
Solar
Pyrography
Historical/Traditional
Figures
Appreciative
Dance of the Sun, LLC
Sales Forecast (cont)
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Psychological
Consequences
Culturally
Confident
Values
Educational
Empowered
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Painting
Distinctively Made
Physical
Consequences
Unique Expression
Solar
Historical/Traditional
Culturally Insightful
Appreciative
Dance of the Sun, LLC
Breakeven Calculation
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Product
Competitor
Domas And Gray
Gallery
American
Indian Arts and
Crafts
American Indian
American
Arts Council, INC
Indian Arts and
CraftsDiscounted
Scenario
Undiscounted
Heritage Auction
Payback American
Payback
Galleries
Indian Arts and
4 years 4.3Crafts5 years 9.8
Base
Case
The Trading months
Post
American
months
Indian
Arts and
Scenario
Undiscounted Discounted
Product
Crafts
Payback
Competitor Payback
Local
gallery
American
Domas And Gray
American
and
Gallery
Indian5Arts
Arts
and
4 years 4.3Indian
years
9.8
Base Case
Crafts
months
months
American Indian
American
Product
Means
End
Chain
Arts
Council,
INC
Indian
Arts and
Competitor
Crafts
Domas And GrayAttributes
American
Products
Gallery Auction
Indian Arts and
Heritage
American
Crafts Arts
Galleries
Indian
Painting
Distinctively
Madeand
Crafts
American Indian
American
ArtsTrading
Council,Post
INC
Indian Arts and
The
American
Indian
Crafts Arts and
Crafts
Heritage Auction
American
Solar
Historical/Traditional
Local
gallery
Galleries
Indian Arts and
Pyrography
FiguresAmerican
Crafts Arts and
Indian
Crafts
The Trading Post
American
Indian Arts and
Jewelry
American
Indian
Crafts
Means End Chain
Culture
Local gallery Attributes
American
Products
Indian Arts and
Crafts Made
Painting
Distinctively
Crafts/Regalia
Cultural
Theme
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Retail Price
Promotion
Place
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Net
Various
Present
Value
$5,851,059
$20-$2000
Net Present
Internal
Modified
Internet,
magazines,
Gallery,
event
Value (RRR) Rate of
Internal
Rate
direct mailing Return centers,
of Return
$4,550,534
37%
24%
Signs, proximity to
Gift shop
Little
Big HornInternal
Net
Net
Present
Modified
Retail
Price
Promotion
Place
Battlefield
Present
Value (RRR) Rate of
Internal Rate
$100-$2,500
Word
of
mouth
Gallery
Value
Return
of Return
$500-$25,000
Internet, magazines
Galleries,
$5,851,059 $4,550,534
37% auctions
24% and
website
$200-$20,000
Internet, magazines
Gallery and
Retail Price
Promotion
Place
website
$500-$25,000
Internet,
magazines
Galleries,
Values
Physical
Psychological
auctions
and
Various
Internet,
magazines,
Gallery,
event
Consequences
Consequences
website
mailing
centers,
Unique Expression direct
Culturally
Appreciative
$200-$20,000
Internet,
Confident
magazines
Gallery and
website
$20-$2000
Signs, proximity to
Gift
shop
Little Big Horn
Battlefield
Various
Internet, magazines, Gallery, event
Culturally Insightful Educational
Empowered
$100-$2,500
Word
mouth
Gallery
direct of
mailing
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Aesthetically
Good looking
Battlefield
Pleasing
$100-$2,500
Word of mouth
Physical
Psychological
Consequences
Consequences
Unique
Expression
Culturally
Interactive
Comforting
Confident
Gift shop
Self-Esteem
Gallery
Values
Appreciative
Confidence
Means End Chain
Products
Attributes
Solar
Painting
Pyrography
Facilities
Land Purchase
Price
Complete
Jewelry
construction
Solar
Professional
Pyrography
Historical/Traditional
Distinctively Made
Figures
Values
Physical
Consequences
Culturally
Insightful
Unique Expression
Psychological
Consequences
Educational
Culturally
Confident
Empowered
Appreciative
Aesthetically
Culturally Insightful
Pleasing
Good looking
Educational
Self-Esteem
Empowered
225,000.00
American Indian
Historical/Traditional
Culture
Figures
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Physical
Consequences
Unique Expression
Psychological
Consequences
Culturally
Confident
Values
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Painting
Distinctively Made
Solar
Pyrography
Historical/Traditional
Figures
Culturally Insightful
Educational
Empowered
Jewelry
American Indian
Culture
Aesthetically
Pleasing
Good looking
Self-Esteem
Appreciative
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Psychological
Consequences
Culturally
Confident
Values
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Physical
Consequences
Net Profit/Sales -72.00% -52.72% -17.13% 50.86% 73.03% 80.69% 79.20% 79.77% 73.03%
50.86% -17.13% -52.72% 60.05%
Painting
Distinctively Made
Unique Expression
Appreciative
Solar
Pyrography
Historical/Traditional
Figures
Culturally Insightful
Educational
Empowered
Jewelry
American Indian
Culture
Aesthetically
Pleasing
Good looking
Self-Esteem
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
Competitor
Scenario
Undiscounted Discounted
Net
Net Present
Internal
Modified
Domas And Gray
American
$500-$25,000
Internet,
magazines
Galleries,
Payback
Payback
Present
Value (RRR) Rate of
Internal Rate
Gallery
Indian Arts and
Value
Returnauctions
of and
Return
Crafts 5 years 9.8
$5,851,059 $4,550,534
37% website24%
4 years 4.3
Base
Case
American Indianmonths Americanmonths $200-$20,000
Internet, magazines
Gallery and
Arts Council, INC
Indian Arts and
website
Product
Retail
Price
Promotion
Place
Crafts
Competitor
Heritage
Various
magazines,
event
DomasAuction
And Gray American
American
$500-$25,000 Internet,
Internet,
magazines Gallery,
Galleries,
Galleries
Indian
ArtsArts
andand
direct mailing
centers,
Gallery
Indian
auctions and
Crafts
Crafts
website
TheAmerican
Trading Post
American
$20-$2000
Signs,
proximity
to
Gift
shop and
Indian
American
$200-$20,000
Internet, magazines
Gallery
ArtsArts
andand
Little Big Horn
Arts Council, INC Indian
Indian
website
Crafts
Battlefield
Crafts
Local
galleryAuction American
$100-$2,500
Word
of mouth
Heritage
American
Various
Internet,
magazines, Gallery
Gallery, event
Indian
Arts
and
Galleries
Indian Arts and
direct mailing
centers,
Crafts
Crafts
The Trading Post
American
$20-$2000
Signs, proximity to
Gift shop
Means End Chain
Indian Arts and
Little Big Horn
Crafts
Battlefield
Products
Attributes
Values
Physical
Psychological
Local
gallery
American
$100-$2,500
Word
of
mouth
Gallery
Consequences
Consequences
-53.46% 45.39% -60.97% 354.67% -47.13% -23.17% 75.84% 81.02% 26.90% 65.53% 74.23% 87.44%
Indian
Arts andUnique Expression
Painting
Distinctively
Made
Culturally
Appreciative
Crafts
Confident
Means End Chain
Products
Solar
Pyrography
Painting
Jewelry
Attributes
Historical/Traditional
Figures
Distinctively Made
PhysicalInsightful Educational
Psychological
Culturally
Consequences
Consequences
Unique Expression
Culturally
Confident
American Indian
Aesthetically
Good looking
Culture
Pleasing
Solar
Historical/Traditional Culturally Insightful Educational
Pyrography
Figures
Values
Empowered
Appreciative
Self-Esteem
Empowered
Dance of the Sun, LLC
Balance Sheet
Starting Balances Year 1 Year 2 Year 3 Year 4 Year 5
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Total Long-term Assets 774,611 757,067 739,524 727,091 709,548 692,004
Competitor
Domas And Gray
Current
Liabilities
Gallery
Product
Retail Price
Promotion
American Liabilities and
$500-$25,000
Capital Year 1 Year 2 Internet,
Year 3 Year magazines
4 Year 5
Indian Arts and
Crafts Total Current Liabilities -34,596 90,056 102,355 141,960 196,439
American Indian
American
$200-$20,000
Internet, magazines
Arts
Council,
INC
Indian
Arts
and
Scenario
Undiscounted Discounted
Net
Net Present
Internal
Crafts
Payback
Payback
Present
Value (RRR) Rate of
Heritage Auction
American
Various
Internet, magazines,
Value
Return
Galleries 4 years 4.3Indian5Arts
direct mailing 37%
$5,851,059 $4,550,534
yearsand
9.8
Base Case
Crafts
months
months
The Trading Post
American
$20-$2000
Signs, proximity to
Product
Retail
Price
Promotion
Indian Arts and
Little Big Horn
Competitor
Crafts
Battlefield
Domas And Gray
American
$500-$25,000
Internet, magazines
Local gallery
American
$100-$2,500
Word of mouth
Gallery
Indian
Arts and
Indian
Arts
and
Crafts
Crafts
American Indian
American
$200-$20,000
Internet, magazines
Arts Council, INC
Indian Arts and
Means End Chain
Crafts
Heritage
American
Various
Internet,
magazines,
ProductsAuctionAttributes
Physical
Psychological
Galleries
Indian Arts and Consequences
direct
mailing
Consequences
Crafts
Painting
Distinctively Made
Unique Expression
Culturally
The Trading Post
American
$20-$2000
Signs,
proximity to
Confident
Indian Arts and
Little Big Horn
Crafts
Battlefield
Local gallery
American
$100-$2,500
Word of mouth
Solar
Historical/Traditional Culturally Insightful Educational
Indian Arts and
Pyrography
Figures
Crafts
Means End Chain
Jewelry
American Indian
Products
Attributes
Culture
Place
Galleries,
auctions and
website
Gallery and
website
Modified
Internal Rate
Gallery,
event
of Return
centers,
24%
Gift shop
Place
Galleries,
Gallery and
auctions
website
Gallery and
website
Gallery,
Valuesevent
centers,
Appreciative
Gift shop
Gallery
Empowered
Painting
Distinctively Made
Aesthetically
Physical
Pleasing
Consequences
Unique Expression
Crafts/Regalia
Cultural Theme
Interactive
Good looking
Psychological
Consequences
Culturally
Confident
Comforting
Solar
Pyrography
Historical/Traditional
Figures
Culturally Insightful
Educational
Empowered
Aesthetically
Good looking
Self-Esteem
Facilities
Land Purchase
Price
225,000.00
Jewelry
American
Indian
Self-Esteem
Values
Appreciative
Confidence
Dance of the Sun, LLC
Amortization Schedule
Scenario
Base Case
Undiscounted
Payback
Discounted
Payback
4 years 4.3
months
5 years 9.8
months
Competitor
Domas And Gray
Gallery
American Indian
Arts Council, INC
Heritage Auction
Galleries
The Trading Post
Local gallery
Net
Present
Value
$5,851,059
Net Present
Value (RRR)
$4,550,534
Internal
Rate of
Return
37%
Modified
Internal Rate
of Return
24%
Product
Retail Price
Promotion
Place
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
American
Indian Arts and
Crafts
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,
$20-$2000
Signs, proximity to
Little Big Horn
Battlefield
Word of mouth
Gift shop
Physical
Consequences
Unique Expression
Psychological
Consequences
Culturally
Confident
Values
$100-$2,500
Gallery
Means End Chain
Products
Attributes
Painting
Distinctively Made
Solar
Pyrography
Historical/Traditional
Figures
Culturally Insightful
Educational
Empowered
Jewelry
American Indian
Culture
Aesthetically
Pleasing
Good looking
Self-Esteem
Appreciative
AIBL Business Plan Competition | 2011
CERTIFICATIONS AND AGREEMENTS
By submitting a Business Plan (“The Plan”) to the AIBL Business Plan Competition (“the
Competition”), each contestant listed below agrees to the following conditions:
Originality of Plan – the ideas and concepts set forth in the original work of the contestants and
that no Contestant is under any agreement or restrictions which prohibit or restrict his or her
ability to disclose or submit such ideas or concepts to the Competition.
Compliance with the Eligibility Guidelines of the Competition – Each Contestant has reviewed
the Eligibility Guidelines (“the Guidelines”) and by his or her signature below certifies that this
entry and the team (chapter) or individual it represents complies with the Guidelines and agrees
to abide by the Guidelines. Each Contestant also certifies that the venture had no revenues and
raised no outside equity capital and/or did not undertake any other formal startup activities prior
to the current academic year.
Waivers and Releases – Each contestant understands that AIBL, each of the co-sponsors,
judges, mentors, co-organizers (the “Competition Officials”) and its directors, officers, partners
employees, consultants, and agents (collectively “Organizer Representatives”) are volunteers
and are under no obligation to render any advice or service to any Contestant. The views
expressed by the judges, co-sponsors, co-organizers, and the Organizer Representatives are
their own and not those of AIBL or any other person or entity.
PLEASE COMPLETE THE FOLLOWING SECTION AND SUBMIT THIS FORM WITH
YOUR BUSINESS PLAN MSU-Billings
AIBL Chapter (Team) Name:
______________________________________________ Business Concept One
Liner: ______________________________________________ Authentic American
Indian Art Contact Name:
_________________________________________________________ Curtis
WalletteAddress:
______________________________________________________________ 2520
2nd
Avenue (Team
North No.
2City: _____________________________
State:
Contestants
Members):
List all team members:
Scenario
Undiscounted
Discounted Billings,
Net MT 59101Telephone:
Net Present
Internal
________________
Zip: ___________
Payback
Payback
Present
Value (RRR) Rate of
________________________ Fax: ________________________________
Value
Return
406-690-1479Email Address:
$5,851,059 $4,550,534
37%
4 years 4.3
5 years 9.8
Base Case
_________________________________________________________
months
months
cpwalle2829@yahoo.com
Product
Competitor
Domas And Gray
American
Gallery
Indian Arts and
Crafts
American Indian
American
Arts Council, INC
Indian Arts and
Crafts
Heritage Auction
American
Galleries
Indian Arts and
Modified
Internal Rate
of Return
24%
Retail Price
Promotion
Place
$500-$25,000
Internet, magazines
$200-$20,000
Internet, magazines
Galleries,
auctions and
website
Gallery and
Page 9 of 10
website
Various
Internet, magazines,
direct mailing
Gallery, event
centers,