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More Than Horses


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Title: More Than Horses

More Than Horses
  • Feasibility Parts I and II
  • Lydia Genner
  • Marshall Custer
  • Chompreeya Baiphowongse

  • The Opportunity
  • There is a shortfall of space in the Boulder
    area due to high commercial real estate prices
    and the lack in underdeveloped land. This
    creates a lack of affordable space in which
    resident and traveling artists can rehearse and
    perform. Additionally, there is no convenient
    outlet where artists can converge and interact
    with each other feeding their psychological
    need for re-affirmation and collaboration while
    creating a creative space and community comprised
    of artists from different backgrounds and
  • Our Purpose
  • To address this opportunity by establishing a
    multidisciplinary membership based arts
    co-operative that seeks to cultivate a sense of
    community and creativity in providing affordable
    access to work, rehearsal, and display space for
    Boulders performing and visual artists.

Market Size and Growth
  • Of 129 million employable Americans, 2.5 million
    consider themselves artists.
  • Source 2000 US Census
  • In Boulder
  • 200-300 People are actively and consistently
    attempting to participate in the shared gallery
    and home gallery tours
  • Over 1,000 general public attend these tours
    annually with the main thrust coming in the Fall
    Home showings.
  • At least 150 young emerging visual artists, that
    are not part of gallery showings.
  • At least 500 non-professional (hobbyist)
  • Usually between 20-35 years of age
  • 20 unique postings per day seeking Boulder
  • Source craigslist survey and personal
    interaction in the musician community
  • 20 dance companies in Boulder with 10 dancers
    per company
  • Dance genres range from modern to ballet and tap
    to traditional native dances, with a growing
    trend towards modern dance
  • Approximately 50 undergraduate dance majors and
    13 graduate dance degree candidates at CU
  • Assumption
  • There will always be a thriving arts community,
    since artistic outlet is more a function of
    personal need rather than that of economic

Market Trends
  • Theater and Dance
  • Movement towards more non-traditional venues and
  • Ex. Shakespeare in the Park, Frequent Flyers
    (aerial modern dance)
  • Smaller, but more collaborative short term
    pick-up groups
  • Less reliance on classical repertoire and more
    focus on innovative material
  • Ex. Colorado Ballets spring performance of Where
    the Wild Things Are
  • Public performance exhibitions gaining in
  • Ex. Success of 365 Plays in 365 Days and the
    Boulder Fringe Festival
  • Visual Arts
  • Rise in collaborative showings with a common
    theme vs. traditional single artist showings
  • Ex. Pretty Baby photo exhibit, BMOCA trending
    away from single artists showing
  • Trend towards more installation art
  • Often requires multidisciplinary skills and the
    help of various artists to create and assemble
  • Musical Arts
  • Through the rise of sites such as myspace and
    craigslist, musicians have become much more
    collaborative and less willing to commit totally
    to one musical project
  • Technology to create and distribute music has
    lead to an explosion in the number of
    self-proclaimed musicians

Generational Trends
  • 60s Children baby boomer were the first
    generation to massively rebel against the values
    of the previous generation they married later,
    began careers later, spent early 20s pursuing
    self interest and generally began the early
    adulthood characteristics we still see today.
  • Late baby boomers exhibited a slight return to
    more traditional values more career oriented.
  • Gen Xers Further pursuit of self interests
    during their early 20s considered lazy with a
    lack of optimism. Little trust in traditional
  • Gen Y The EcoBoom, current generation coming of
    age. Largest demographic since the baby boom.
    Often a second round of children for baby boomers
    as such the these children are often raised in
    financially sound environment. EcoBoomers can
    afford the luxury of leisure and value
    self-fulfillment. Comfortable with technology,
    optimistic, accepting and highly interested in
    other cultures.
  • Conclusion Large Population of EcoBoom
    generation have views in line with the goals of
    More Than Horses giving us a broad base of
    potential members across the country.

Artist Segmentation
  • Professional Artists
  • Making a living from their art
  • (Age range 35)
  • They are the gate keepers that control
    recognition of new artists
  • They have their own highly guarded network
  • They enjoy helping and inspiring young artists,
    yet do not want to be burdened with over
  • Participate in Master Classes, Music Camps,
    Foundations for the Arts
  • Aspiring Artists
  • Semi-professionals
  • (Age range 25-40)
  • They are seriously attempting to make a living
    from their artistic output
  • They often end up as teachers
  • They have less interest in social collaboration,
    yet more interest in actual networking for the
    benefit of their career
  • Emerging Artists
  • Young, artistic socialites
  • (Age range 16-35)
  • They have often just started their life on their
    own recent grads
  • They are just beginning the exploration of their
    artistic tendencies
  • They are very impressionable and highly inspired
    by group interaction
  • Deep desire to interact
  • Want a sense of community

Current Market
  • Theater and Dance
  • Dance studios Cater to professional and
    aspiring artists
  • Churches and community rooms Cater to all
  • CU and Naropa dance facilities Cater to all,
    emphasis on emerging artists
  • Visual Arts
  • Arts Galleries Cater to professional and
    aspiring artists
  • Art work studios, CU and Naropa facilities,
    Boulder Co-Rec Cater to aspiring and emerging
    artists, mainly through class offerings
  • Music Venues and Resources
  • Fox Theater, Boulder Theater Cater to
    professional artists
  • Churches and community rooms Cater to
    professional and aspiring artists
  • Co-op Market, Trilogy, various small venues
    Cater to aspiring artists
  • CU student union, rehearsal spaces, moms garage
    Cater to emerging artists

Value Chain What needs can we address
  • Professional Artists
  • Often primary need is short term space
  • Recording rehearsal
  • Performance prep
  • Meeting places
  • Secondary need is psychological fulfillment
  • Desire to give back to arts community
  • Reconnect with roots
  • Wish to inspire and be inspired by next
    generation of artists
  • Aspiring Artists
  • Primary need is work exposure to tastemakers
    (professional artists) and the public
  • Secondary need is for space
  • Work space and storage
  • Teaching lessons (group and individual)
  • Further need to develop their network through
    interaction with professional artists and
    professional showcase/ performance organizations
  • Emerging Artists
  • Primary need is for affordable work space
  • Strong secondary need is for a sense of community
  • Environment for collaboration
  • Desire feedback from peers
  • Further need is for help in facilitating
    performances and exhibitions
  • Establishing in-roads with gallerys and
    performance spaces

  • Inability to establish ourselves as a credible
    institution in the artistic community
  • Inability to differentiate ourselves from
    existing art service organizations
  • Competing with free space
  • Ex. Churches, community space, and university
  • Not financially feasible
  • Is it possible at a low enough rate to attract a
    base of membership, given Boulder high real
    estate prices?
  • Customization costs of individual spaces for each
  • Are we attempting to cater to too many groups?
  • Unwillingness of member artists to participate in
    creating the desired community environment
  • Possibility that we could attract members that
    wish to operate independently
  • Risk of substitution with private rehearsal and
    specialized spaces

Market Concentration
  • Deferring market saturations for different
  • Performance Space
  • Marginally to adequately addressed professional
    acts do not lack space to present a production,
    though it is more difficult for less established
    performers to find space
  • Shortfalls correspond with performance weeks (ex.
    late summer - Boulder Fringe Festival, early
    spring university/high school recitals, holiday
    season performances Nutcracker Suite Ballet)
  • Gallery Space
  • Large number or galleries in the boulder area
    that cater primarily to professional with limited
    access for aspiring artists
  • We consider this portion of the market bordering
    on saturation
  • Little to no gallery space allocated to emerging
  • General Work Space
  • Woefully under addressed
  • All interview point towards a dire need for
    general work space, regardless of artistic
    discipline or ability
  • Community Involvement and Other Observations
  • Currently, there is no organization committed to
    fostering multidisciplinary interaction between
  • Little to no availability for multidisciplinary
    artists to practice more than one art form in one

Degree of Stability
  • Key Assumption
  • For the foreseeable future it seems that Boulder
    will have a strong and thriving artistic
    community. Boulder is a creative environment
    with a long history of attracting creative
    individuals. This creates a constant inflow of
    new artists at all levels of ability.
  • Effects on Stability
  • Artists are transient by nature, however this
    transience tends to equate to a constant, yet
    dynamic, artistic population
  • Leads to the possibility of franchising the
    organization to other artistic cities (ex.
    Minneapolis, Austin, Portland, Seattle, San
    Francisco, Chicago, and New York) where
    membership can transfer as members move
  • Boulder has a reputation for embracing and
    supporting the arts

Barriers to Entry
  • High Initial Investment
  • Price of real estate in Boulder is high and
    climbing (ex. 561/sq. ft. for downtown Boulder
  • Importance of location for convenience and image
    leads to need to place facility near center of
  • Customization of facility would be very expensive
  • High build out costs for sound proofing, kilns,
    potter wheels, photography equipment, art
    material disposal and other environmental issues
  • Real estate and build out cost lead to possible
    difficultly in meeting competitors price on space
  • Possible Reluctance of Investors
  • Traditional investors may be hesitant to fund
    this type of business
  • Not a traditional business start-up (i.e. no new
    technology, etc)
  • Return on investment will unlikely be as high as
    other investment opportunities given the nature
    of our intended pursuit
  • Solution Approach professional artists as
    potential angel investors
  • Government Regulation
  • Compliance with 501c3 requirements for non-profit
    recognition and accreditation
  • Possible upside in the availability of grants as
    funding however grant funding tends to go
    towards large scale arts centers vs. small arts
    co-ops and initiatives. We have a better chance
    of receiving grants with a larger scope of
    services and artists, demonstrating a larger
    impact on our community

Degree of Rivalry
  • The community of Boulder is known for its
    friendly nature. It has a reputation for openness
    to new partnerships in the arts world. This is a
    result of over saturation of the number of
    artists in the community and not enough outlets
    to meet their needs.
  • Approach to be taken
  • Focus on community and partnership not rivalry
  • Arts communities dont like competition they
    embrace cooperation
  • Aggressive pursuit of establishing our image as a
    leader of multidisciplinary arts in the Boulder
  • For future consideration
  • Higher propensity towards rivalry exists in
    larger cities (franchising consideration)
  • Arts communities in other locations are
    territorial due to the nature of their funding
    (ex. Hull House in Chicago primary provider of
    amateur arts services)

Competitors (cont.)
  • Mgmt Characteristics
  • Art boards are typically comprised of individuals
    with a vested interest in the organization and/or
    affluent members of the community looking to
    promote the arts through their personal
  • Galleries Single owners and groups of artists
    interested in showing their own work and
    promoting similar art forms and styles to that
    matching the gallerys image

Basis of Comparison
Basis of Comparison how we compete
  • Quality of our services
  • Facility
  • Spaces must be appropriately lit for arts area
    no sun/hard light damage
  • Acoustically accurate and non-tiring to the ear
  • Facilities must be secure, but accessible
  • Implement lockers/closets or lock away
    drawers/desks in large group use rooms protect
    instruments and artwork
  • Artists want to keep supplies available and
    secure in close proximity to their work space
  • Storage areas/building must be humidity and
    temperature controlled for the protection of
    artwork and instruments
  • Parking space and loading dock for ease of
    loading equipment
  • Traveling professional artists need quick access
    to facilities
  • Aspiring artists often transports their equipment
    and displays for outside showings and
  • Community
  • Encourage artistic exchange through multi-use
    areas, gathering rooms, and multidisciplinary

Control of the Market
  • Price
  • Will be dictated by the willingness to pay by the
    target market
  • Will artists be willing to give up 50/month for
    a home base
  • Apparent target market does not possess high
    amounts of disposable income, but are willing to
    pay to support and pursue their creative
  • Price on value added
  • Addressing an unfulfilled need for space
  • Addressing psychological need for community
  • Promoting career advancement through classes and
  • Cost
  • Space and renovation are main driver
  • Degree of renovation needed to adequately support
    desired services necessitate facility purchase
    not rental.
  • Reduction could come through donations and grants
  • Leverage strong interest in advancing the arts
    community to help fund initial investment and
    sustain the organization.
  • Successful professional artists are often looking
    for opportunities to support artistic endeavors
    (i.e. potential angel investors)
  • Market Fragmentation
  • Many galleries/spaces are highly specialized and
    not in direct competition with one another
  • Excess demand for our services, not excess

  • Boulder has a large and diverse artistic
    community with needs that are unsatisfactorily
    met at this time. In particular, we believe
    there is a large enough segment of emerging
    artists that are almost completely ignored by
    current arts organizations and facilities to
    warrant the establishment of More Than Horses.
    We see a tremendous opportunity in addressing the
    needs of emerging artists while simultaneously
    serving the needs of professional and aspiring
    artists. The next step will be to fully identify
    how we can meet these needs and if it is possible
    to do so in a sustainable way. Currently, the
    biggest hurdle to overcome appears to be the
    price of real estate in Boulder.

More Than Horses Venture Analysis
  • Feasibility Parts III
  • Lydia Genner
  • Marshall Custer
  • Chompreeya Baiphowongse

Market Industry Analysis
  • Size and Growth
  • We assumed that there will always be a thriving
    arts community, since artistic outlet is more a
    function of personal need rather than that of
    economic fluctuation.
  • 200-300 People are actively and consistently
    attempting to participate in the shared gallery
    and home gallery tours
  • At least 150 young emerging visual artists, that
    are not part of gallery showings.
  • At least 500 non-professional (hobbyist)
  • 20 dance companies in Boulder with 10 dancers
    per company.
  • Trends
  • All disciplines (Theater Dance, Visual Arts,
    and Musical Arts) are moving out of traditional
    styles and becoming more creative through new
    innovation, technology, and advancement in
  • Large population of the current generation (a
    second round of children for baby boomers
    EcoBoom Generation) have consistent views with
    the goals of More Than Horses giving us a broad
    base of potential members across the country.

Market Industry Analysis (cont.)
  • Market segmentation Value chain
  • There are three main market segments -
    Professional Artists, Aspiring Artists, and
    Emerging Artists across all disciplines in
    which each plays different role and has different
    interests and needs.

Market Industry Analysis (cont.)
  • Current market
  • Theater and Dance Dance studios, churches and
    community rooms, CU and Naropas dance
    facilities, The Dairy
  • Visual Arts Arts galleries, Art work studios,
    CU and Naropas facilities, Boulder Co-Rec,
    Rembrandt Yard, The Dairy
  • Music Venues/Resources Fox Theater and Boulder
    Theater, churches and community rooms, co-op
    market, Trilogy, various small venues, RMCMA,
    CU student union, rehearsal spaces, and moms
  • Threats
  • Main threats are inability to establish
    creditability and to differentiate services,
    financial feasibility, risk of substitution by
    free space or other private/specialized space,
    and unwillingness of artists to create the
    desirable community environment.

Competitive Analysis
  • Market Concentration
  • Access to work and rehearsal space is woefully
    under addressed to marginally or adequately
    addressed depending upon the market segment. In
    addition, there is no organization committed to
    fostering multidisciplinary interaction between
    artists and currently there is little to no
    availability for multidisciplinary artists to
    practice more than one art form in a single
  • Degree of Stability
  • Boulder is a creative environment with a long
    history of attracting creative individuals. It
    has a reputation for embracing and supporting the
    arts, therefore, we can assume that there will
    always be a constant inflow of new artists at all
    levels of ability. Since artists are transient by
    nature, this trend tendse to equate to a
    constant, yet dynamic, artistic population.
  • Barriers to Entry
  • High initial investment Price of good location
    and renovation of building
  • Possible reluctance of investors Nature of
    services and objectives of organization are not
    attractive to traditional investor, but
    possibility for professional artists whose
    objectives are more than a financial return.
  • Government Regulation Compliance with 501c3

Competitive Analysis (cont.)
  • Degree of Rivalry
  • As a friendly community by nature, Boulder has a
    reputation for openness to new partnerships in
    the arts world. There are a large number of
    artists in this community with limited space to
    satisfy their needs. Rivalry is minimal as arts
    communities tend to encourage cooperation not
  • Competitors
  • Main competitors are Dairy Center for the Arts,
    churches and free spaces, galleries, Fire Station
    2 Boulder Pottery Lab, and Rocky Mountain
    Center for Music and Arts.
  • Basis of comparison
  • Arts services offered Storage,
    multi-disciplinary community interaction, work
    space, rehearsal space, recital/display space,
    master classes, and music lessons/workshops
  • Quality of services Temperature and humidity
    control, security, accessibility, sufficient
    parking space and loading dock, and community
    gathering space

Competitive Analysis (cont.)
  • Control of the market
  • Price Depends upon willingness to pay by target
    markets. With the exception of professional,
    artists might not possess high amounts of
    disposable income
  • Cost Main drivers are space and degree of
  • Market Fragmentation Specialization creates
    fragmentation. There is a high demand with a
    very limited supply of space.
  • Conclusion
  • We believe that establishing More Than Horses
    would be a good opportunity to pursue because of
    the size of market and the needs of all
    identified market segments that are not currently
    satisfactorily being met by existing services.
    However, further analysis in the next sections
    will help identify whether More Than Horses will
    be possible and sustainable.

Venture Description
  • Our Proposed Service
  • To create a multi-use building and community
    center that caters primarily to the needs of
    aspiring and emerging artists in the artistic
    disciplines of dance, music, and visual arts. We
    will offer affordable work, rehearsal, teaching,
    and storage space, as well as assistance in
    placing work and staging performances with
    partner arts galleries and venues.
  • More Than Horses will be a 24 hour accessible
    facility that promotes collaboration and
    community in the aspiring and emerging artists
    segments. Further, we will reach out to
    professional artists by offering short term
    rehearsal/prep space for recording and
    performances as well as the opportunity to give
    back to the arts through instructing master
    classes, providing guidance, and possible funding

Market Opportunity
  • Opportunity
  • There is a lack of affordable space in which
    resident and traveling artists can rehearse and
    perform. In particular emerging and aspiring
    artists are underserved and dissatisfied with the
    arts offerings in Boulder. Additionally, there
    is no convenient outlet where artists can
    converge and interact with each other in an
    environment supportive of their work.
  • Compelling Need
  • Artists, especially young artists, have a need
    for community interaction and acceptance of their
    work. These same young artists often lack the
    financial resources necessary to maintain a
    private studio or work space. Aspiring artists
    often face difficulty in navigating the
    complexities of placing and selling work in the
    evolving bureaucracy of gallery and performance
    venue businesses.

Compelling Needs of Artists
Servicing Needs of Artists
  • Perceived Performance of More Than Horses
  • Focus on Styling, Safety/Security, and
    Dependability of access and use
  • Styling Input from members and recruited artists
    in the development of our interiors and facility
    layout. Create open space within a flexible use
    shell facility that can be re-designed with ease
    on a continual basis.
  • Safety/Security Member equipment, work, and
    supplies will be covered under More Than Horses
    insurance policies (further adding to economic
    benefit for members). Facilities will be
    humidity and temperature controlled to protect
    work. Controlled access through secured
    membership cards, check-in, and video
  • Dependability 24 Hour access to work/rehearsal
    spaces, common areas, and truck/car loading dock.
    Guaranteed available space in ready to work
    condition through planned adequate excess
  • Quality
  • Of Community Gained through purposeful
    recruitment of desired key artists in the Boulder
    community through membership grants taste
    makers. Also, through fostering relationships
    with professional artists.
  • Of Facilities Modern equipment, availability of
    quality supplies, sound isolation, clean,
    well-lit studios appropriate for each discipline.

Servicing Needs of Artists
  • Membership Fee Structure of More Than Horses
  • Different pricing structure for per-use, monthly,
    or annual membership
  • 20 per use
  • 50 per month
  • 500 annually
  • Classes and Teaching Room Rental Fees
  • 5 per hour for members
  • 20 per hour for non-members
  • Employment Discount
  • Minimum of 15 hours per week
  • complementary membership
  • 10 per hour compensation
  • These fees are comparable to and provide the
    same access as owning own studio. (Found to be
    150-500 per month in Boulder)

Servicing Needs of Artists
  • Access to More Than Horses
  • Will strive to ensure that space is available for
    any type of artist at any time.
  • 24 hour member access Individual key cards and
    front desk check-in
  • Ample parking available both for member use and
    visitors to the facility
  • Loading dock for equipment transport and art
  • Social Reputation of More Than Horses
  • Membership adds to the artists social status
    within the greater arts community when associated
    with our organization Street Cred. This
    creates an image of legitimacy for aspiring and
    emerging artists. As a member of More Than
    Horsees artists will have access to more
    resources and more exposure to current trends
    within their own and other art movements.

Range of Services
  • Size, Décor and Layout
  • Estimate a need of 12,000 square feet per 300
  • Highest number of members at any given time using
    facilities would be 20
  • Décor will be created by members through their
    projects and displays
  • Open layout
  • Common area/display area/performance area
    centrally located within the building
  • Work space areas/teaching rooms/rehearsal rooms
    branch off of the common area
  • Employee Qualifications
  • No formal dress code
  • No specific previous training
  • Number of workers based upon number of members
  • starting with 10 employees (2 per shift)

Target Market Consumer Market
  • Focus is on Aspiring and Emerging Artists, with
    professional services and continued outreach to
    Established Artists
  • Overview of Survey Results
  • Demographic Information
  • Even interest from males and females
  • Between ages of 20-30 years
  • Self-identified as aspiring or emerging artists
    (most likely are aspiring)
  • Artistic Disciplines
  • Painting, Drawing, Sculpting, Instrumental
    Performance, Dance
  • Most interest shown in Sculpting, Painting,
    Instrumental Performance
  • Willingness to Pay
  • 90 of respondents willing to pay 51-75 per
    month for membership
  • Remaining respondents willing to pay 101-125
    per month for membership
  • Current Satisfaction Level
  • All respondents are either dissatisfied or very
    dissatisfied with the current offering of
    artistic services available to them in Boulder
    (i.e. work/rehearsal space, performance space,
    display space, and their ability to collaborate
    with fellow artists)
  • There is moderate satisfaction with the current
    offering of classes in the Boulder community
  • All respondents expressed a strong interest in
    participating in More Than Horses

Target Market
  • Distribution Channels Introduction of our
    Services and Establishing Image
  • Word of Mouth Campaign
  • Propagated through fellowship grants for key
    artists in the community (tastemakers)
  • Goal bringing in key members of the community
    that will attract others to use our facilities
    and services and add greatly to establishing our
  • Monthly Events (Parties)
  • Goal draw in younger aspiring and emerging
    artists (20-30 yrs) and build excitement about
    the mission
  • Introduction to facilities and opportunity to
    meet and interact with prospective members
    (foundation for community feel), and try out
    available services at no cost
  • Use Book of List, Publicist, Professional
  • Reaching out to Professional Artists
  • Goal establish relationships and build
    excitement about future involvement with More
    Than Horses. Ability to use artists names to
    further bolster our image and legitimacy
  • Secure and schedule master classes in
    coordination with touring schedules

Target Market - Business Market
  • Forming Partner Organization Relationships
    Creating mutually beneficial relationships that
    add to the visibility and play upon the strengths
    of each organization
  • Target Organizations
  • Dance Companies w/ Performance Spaces
  • Galleries w/ Display Spaces
  • Musical Performance Venues
  • Other Arts Organizations (The Dairy, Rembrandt
    Yard, Etc.)
  • Who Makes the Decisions
  • Partnership decisions are made by one director in
    a small organization. Establishing access to
    decision makers is critical and decision can be
    made within a short period.
  • Dance Companies/Galleries/Other Arts Org
    Director is decision maker, accountable to
    organization members and/or board
  • Musical Performance Venues Booking manager is
    decision maker, only concern is ability to fill
    his space
  • Risks
  • Budgets All arts organizations are constrained
    by very tight budgets
  • Response Focus on ensuring initial joint
    projects are a success for partner organization
  • Possibility of perceiving us as fundraising
    competition which can lead to them becoming
    territorial with their resources and facilities
    An unwillingness to partner.
  • Response Focus on revenue and fundraising model
    that does not encroach on partner funding sources.

Unique Benefits
  • The Dairy
  • Targets professional and aspiring artists
  • Focus on providing performance space
  • Very high quality facilities
  • Rental rates 700/week for theater/performance
  • Limited work/rehearsal space, only available to
    permanent residents (at capacity)
  • Established reputation and modern industrial
  • More Than Horses
  • Target mostly aspiring and emerging artists
  • Focus on providing quality work/rehearsal space
    at an affordable price
  • Limited performance space
  • We wish to match or exceed The Dairys level of
    quality in terms of its reputation, décor, and
    security while additionally addressing the needs
    of aspiring and emerging artists such as 24hr
    access, storage, work/rehearsal space, artist
    assistance, and affordability

Sustainable Competitive Advantage (SCA)
  • More Than Horses will seek out a Sustainable
    Competitive Advantage by locating its facilities
    in downtown Boulder and creating a reputation for
    bringing underrepresented and collaborative art
    to the publics attention and appreciation. We
    will be known as the cornerstone of a tight-knit
    and desirable community among artists.
  • How Will We Do This?
  • Location Possible location between St. Julian
    and former Republic of Boulder zoned by the city
    for civic use such as an Non/Low-Profit Arts
  • Limited amount of real estate available in
    downtown Boulder creates barrier to entry for
    another establishment seeking a similar location
  • Location in downtown Boulder will create easy
    access for many artists along with credibility,
    reputation, and prestige associated with downtown
  • Community Creation of a tight-knit artist
    community in which members feel proud to be a
  • Create the feeling of exclusivity through
  • Underground reputation generated through write-up
    and placement of promotional materials in artists
    publications such as Ready-Made, Illiterate,
    Westword, etc.
  • Currently, the artist community is fragmented by
    artistic discipline and small social circles. We
    wish to exploit the ability to unite these
    fragmented sub-sects into a larger group and
    translate this into a sustainable advantage by
    being the pioneers in this area therefore
    generating a loyalty and local lore behind our

Resources to Create a SCA
  • Financial
  • Seeking Funding from Established Artists
  • Established Artists will not usually endorse
    multiple organizations in a small area such as
    Boulder therefore each artist we partner with
    will likely support More Than Horses exclusively
  • Other Private Grants
  • Local philanthropists Boulder has large number
    of independently wealthy individuals leading to
    greater ease in seeking donations for the given
  • Risk Run into the possibility of encroaching
    upon funders of other arts organization in the
    Boulder area
  • Federal, State, and Local Government Grants
  • Greatest possibility of grants coming from
    Federal and Local Government (Land Grant from
    City of Boulder possibility of downtown
    location previously described)
  • Member Fees Once operational, projected to
    offset 60 of organizational costs
  • Possibility of Debt Financing Using high value
    of building and land value as collateral for bank
  • Board of Directors Financial obligation to
    donate/support the organization and to use their
    personal network to aid in the fundraising process

Resources to Create a SCA
  • Physical Assets
  • Own our facility through early donations,
    start-up grants and debt
  • Location
  • Purchase second hand equipment
  • Many for-profit facilities replace equipment
    before the end of the equipments useful life.
    This equipment can easily be purchased at a
    highly discounted rate. (ex. Fox Theater upgrades
    sound system every year regardless of condition
    of current system)
  • Possibility of absorbing Fire Station 2 Pottery
    club acquiring their equipment for free
  • Human
  • Member
  • Use as labor for construction, design, and
    staffing of facility
  • Bring knowledge of how to build spaces (ex. dance
    space design, bricking kilns, sound isolation)
  • Social networking and member involvement from the
    early onset of the organization will foster the
    collaborative environment we wish to establish
  • Prominent Board Members
  • Established Artists on board that can attract
    attention and bring credibility to organization
  • High visibility community members that can use
    network to help the organization
  • Both are possible angel investors
  • Intangibles
  • Marshall and Lydias experience in both non and
    for profit arts business spanning multiple
    artistic disciplines

  • Key Strengths
  • First hand industry knowledge and experience in
    multiple arts disciplines in particular dance,
    music and visual
  • Access to and knowledge of navigating proper
    channels to contact professional artists (ex.
    agent listings)
  • Ease of relating and identifying with the need of
    our members
  • Service Design our main service will be to meet
    the needs of our members
  • As long as members are willing to pay a fee
    capable of sustaining our facilities, our
    services can be modified to the changing demands
    and preferences of members
  • Facility design will aid in the flexibility of
    capabilities (ex. Common rooms can be converted
    to performance/gallery space)
  • Word of Mouth Advertising
  • Small active arts community in which we are
    already engaged will aid in member recruitment
  • Transient nature of community will disseminate
    our reputation to locations across the country
    and facilitate expansion when appropriate

Our Barriers to Entry
  • Real Estate in Boulder and High Initial
  • Price of real estate in Boulder is high and
    climbing (ex. 561/sq. ft. for downtown Boulder
  • Importance of location for convenience and image
    leads to need to place facility near center of
  • Real estate and build out cost lead to possible
    difficulty in maintaining an affordable
    membership fee structure and as such we may not
    be able attract our target market
  • Limited space to build in downtown Boulder
  • Customization of facility would be very expensive
  • Build out costs for sound proofing, kilns, potter
    wheels, art material disposal, and other
    environmental issues
  • Competition for Fundraising Dollars
  • Saturation of non-profits in Boulder area
  • Arts funding is historically extremely volatile
    and funding often directly competes against
    current giving trends (ex. Environment, Natural
    Disaster, and Medical Research)
  • Government Regulation
  • Difficulty in gaining designation and maintaining
    compliance as a 501c3 non-profit organization
  • Trend in reduction of government arts funding
    (ex. NEA budget cuts)
  • Leads to higher competition for already difficult
    to attain arts grants
  • Cost of Membership and Ability to Pay
  • Target market does not usually have disposable or
    reliable income

Barriers to Entry We can Establish
  • First to Establish Cohesive Community and
  • Offer fellowships to key artists in community in
    an effort to bring them and their peer group into
    our organization
  • Limited number of Boulder artists from which a
    future competitor could draw from (i.e.
    Population of Boulder may barely be large enough
    to support More Than Horses, and less likely to
    support additional organizations of a similar
  • Establish unique artist endorsements
  • Professional artists usually only lend their name
    to a limited number of organizations
  • In a community as small as Boulder, highly
    unlikely one artists would support multiple
  • Location
  • If we can secure downtown location (lot between
    St. Julian and the former Boulder Republic) we
    will inhabit one of the last undeveloped downtown
    Boulder locations. Currently the only open
    location zoned for civic use.

Key Risks
  • Funding Insufficient start-up funding
  • 24 months from land acquisition to building
    occupation start-up funding must carry
    organization through this phase
  • Number of Members
  • Large number of members may be required to fund
    ongoing operations and achieve break-even
  • Velocity of Membership
  • If we do not attract enough members in a timely
    manner More Than Horses could easily be overcome
    by its start-up financial burden
  • Donations will be harder to attract with a low
    capacity slow or non-growing membership
  • Swing in Economy
  • Will not affect member base much, but will have a
    dramatic effect on the availability of grants and
  • Poor Location of Facility
  • Direct effect on our ability to establish our
    desired reputation and attract our targeted
  • Tax Law Changes
  • Effect our status as a non/for-profit business
  • Additional swings in cost of compliance with tax

Financial Projection
  • Assumptions
  • 250 members in Year 1 paying an average of 50/mo
    fees based on customer survey
  • 20 growth for Year 2, 30 for Year 3
  • Minimal marketing cost, mostly comprised of
    fellowship grants used to attract new artists
  • Operating loss must be made up through grants and
  • Labor and Utilities based on 10 employees at
    10/hr, 20 days a month and operating a 24 hour
  • No variable cost, break even is the number of
    members required to fully fund More Than Horses
    through membership revenue
  • Start-up cost based on locating 12,000 sq. ft.
    facility in lot between St. Julian and Boulder
  • More Detail in Appendix

  • There is a compelling need for affordable space
    in the Boulder emerging and aspiring arts
    community. Our survey results show universal
    dissatisfaction with the current availability and
    associated price with work/rehearsal space in
    Boulder and a genuine interest in the other
    services More Than Horses wishes to provide.
    Further, no current Boulder art organizations
    seek to provide the range of services to a
    multidisciplinary population of artists.
  • We believe we can create a sustainable
    competitive advantage by being the first to
    establish a recognizable, cohesive, and
    tight-knit young artistic community in Boulder.
    We further wish to create a sustainable advantage
    by locating ourselves in vacant lot between St.
    Julian and the former Boulder Republic.
  • Upon review of the financials we show a need for
    800 members to break-even in Year 1, and 1500
    members by Year 3 paying an average of 50/mo.
    If we increase membership fees to 75/mo (a
    number not supported by our customer survey) we
    would require 550 members to break even in Year
    1 (increasing members thereafter). With an
    assumed capacity of 300 members using a 12,000
    sq. ft facility it is impossible to fully fund
    More Than Horses solely on membership revenue.
    This fact will require More Than Horses to raise
    money through donations and grants in order to
    cover its operational losses. This fundraising
    would be in addition to the 6.44 million
    required to start-up the facility in the downtown
    location. Additionally, the artistic population
    of Boulder is highly unlikely to support a member
    base of more than 400 individuals for an
    organization similar to More Than Horses,
  • Based on the above we believe More Than Horses,
    as currently conceived, is
  • financially infeasible.

  • Possibilities for Feasibility
  • Land grant from City of Boulder to reduce
    start-up costs
  • Large angel investments from professional artists
    winning the lottery
  • Given the amount of money necessary to break
    even, we consider the possibility of raising
    enough donations/grants/investments to be very
  • Location change to more affordable real estate
  • This will negatively affect our ability to
    attract members and image creation
  • Investigate large arts cities (Chicago, New York,
    San Francisco, Minneapolis, Austin, Portland)
  • Cheaper real estate in blighted areas (popular
    with our target market)
  • Larger population of artists from which to draw
  • Greater visibility through exposure to larger