The arts and entertainment sector is quite vast with the total revenue generation from US alone exceeding many billions of dollars. This industry encompasses various businesses like theatres, dance companies, artists, music groups, sports teams, museums, amusement parks, zoos, casinos and golf courses to name a few.
There are over 230,000 businesses in this industry the US alone that employ almost 2 million people with a combined payroll of abut $52 billion. If you do some number crunching, you will realize that on an average there are about 8 employees in every company, and each of them earns about $27,000 annually.
When an independent artist or a group wants to break into the industry, a proper business plan needs to be created. Take the music industry for example. A lot has changed over the past decade as traditional methods of revenue are declining, and internet sales have been increasing. This means that a good business plan must include a marketing strategy that covers both online and offline areas. Many music artists of today develop a fan following by releasing music videos or songs on social networking sites or on YouTube before they go mainstream.
Other businesses like golf courses, zoos and casinos are dependent upon the disposable income of their customers. That is why economic conditions hurt them first because they are not a necessity for people. So, for these businesses the business plan must include the study of the local economic condition and cycle. Demographic analysis is also important for businesses in the arts and entertainment industry. |
