The Art of the Business Model

The Art of theBusiness Model

Andrew TaylorDirector, Bolz Center for Arts Administration

Wisconsin School of Businesswww.bolzcenter.org

ataylor@bus.wisc.edu

2011 Arts Enterprise Summit

About Me...

About Us...

The Art of theBusiness Model

Andrew TaylorDirector, Bolz Center for Arts Administration

Wisconsin School of Businesswww.bolzcenter.org

ataylor@bus.wisc.edu

2011 Arts Enterprise Summit

A Hammer or a Sponge?

IMAGE: Flickr photos by Kaworu Koneru (hammer), leshoward (sponge), eriwst (frame)

?What the heck is aBusiness Model

?What the heck is aBusiness Model

?What the heck is aBusiness Model

?What the heck is aBusiness Model

1There is only one business model:

reliable revenue thatexceeds expenses.

Clara Mi"er, Nonprofit Finance Fund

2A business model describes the rationale of how an

organization creates, delivers, and captures value.

Alexander Osterwalder & Yves PigneurBusiness Model Generation

3A business model isan intentional arrangement of artisans, audiences, and tools.

So, let’s talk about tools....

So, let’s talk about tools....

Limited Liability

Company

Sole Proprietorship

Credit & DebtTickets

Box Office

YouTubeStudio SpaceHardware

& Software

Ownership

Leasing

FiscalSponsorship

Tax Status

Cash

Hammer

SpongeMembershipDues

TwitterA Van

“People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”

Theodore LevittIMAGE: Flickr user Cayusa

Tools vs. ProblemsIMAGE: Flickr user Whatknot

“If you only have a hammer, every problem looks like a nail.”

Abraham Maslow (paraphrased)IMAGE: Flickr user bitzcelt

So, let’s talk about problems....

Are you kidding me?

“The man who knows how will always have a job.

The man who also knows why will always be his boss.”

Ralph Waldo Emerson 

4 Problems (of many)• Capital• Exchange• Channels• Net Revenue

1Capital.PROBLEM:

How do I gather the space, equipment, and wealth I need to do what I want to do?

1Capital.PROBLEM:

How do I gather the space, equipment, and wealth I need to do what I want to do?

Buy

Borrow

Build

Rent

Receive (gift)

Sneakers and Studios

Loveland: Detroit by the Inchwww.makeloveland.com

Loveland: Detroit by the Inchwww.makeloveland.com

Low-Profit Limited Liability Company (L3C)

B Corporation

CooperativesFiscal Sponsorship

Series LLC

Social Impact Bonds

Micro Finance

2Exchange.PROBLEM:

Who pays, for what, for whom, and how?...and for how much?

Like Netflix, but for theaterwww.acttheatre.org

ACT Pass

Sloup in St. Louissloup2122.blogspot.com

3Channels.PROBLEM:

How do I connect what I door what I’ve made to someone else?

or...What are the paths to successful exchange?

Etsy.com

Regretsy.com(where DIY meets WTF)

Direct from the Farmer

Roadside Culturewww.wormfarminstitute.org

4Net Revenue.PROBLEM:

How do I consistently earnmore than I spend?

4Net Revenue.PROBLEM:

How do I consistently earnmore than I spend?

EarnMore

SpendLess

Spend Less.(or...spend better)

The rise of the relentless spendthrift.

Delicious Monsterwww.delicious-monster.com

Squarewww.squareup.com

4 Problems (of many)• Capital• Exchange• Channels• Net Revenue

Start with the problem,not with the tool.

IMAGE: Flickr photos by Kaworu Koneru (hammer) and leshoward (sponge)

“Talent hits a target no one else can hit;Genius hits a target no one else can see.”

Arthur Schopenhauer 

“Master your instrument,master the music,

and then forget all thatand just play.”

Charlie Parker

Thank You.Andrew Taylor

ataylor@bus.wisc.eduwww.bolzcenter.org

www.artfulmanager.com