Innovating Through Artistry

Posts Tagged ‘entrepreneurial traits’

Staying Healthy in the (Financial) Storm

In Author: Linda Essig, ENTREPRENEUR THE ARTS on October 31, 2009 at 12:32 am

weathering the storm

I’ve been doing some research lately on measures of the fiscal health of not-for-profit arts organizations, especially theatres. This got me thinking about the factors that support the fiscal health of individual artists and arts entrepreneurs. In a 2001 article, Mark Hager examines four measures of fiscal stability – of the ability of an organization to withstand the kinds of economic shocks we’ve experience over the last twelve months. (He adapted these from some earlier work by Tuckman and Chang.)

The four measures are: equity balance, revenue concentration, administrative cost, and operating margin.
How can we translate these four organizational measures into something useful for individual artists and arts entrepreneurs? Here is some of my preliminary thinking:

1. Equity balance. It’s always nice to have some money in the bank. From a practical standpoint, having a cushion in the bank can help support the artist in lean times. Building up that cushion during lean times is difficult but should be a priority during the fat times. I even think there’s a story about that somewhere regarding Joseph and a pharaoh’s dreams.

2. Revenue concentration. It’s much easier for an arts entrepreneur to withstand the sudden withdrawal of one client if they have more than one. So, if you’re counting on that one big commission, you may want to backstop that with several smaller commissions as well. Multiple revenue sources guard against permanent damage when any one of those streams dries up.

3. Administrative costs. Believe it or not, studies (Hager’s and others) indicate that it’s worth investing in the people and equipment necessary to run your arts-based business. Doing so has two positive effects on financial stability: 1) solid administrative capacity and 2) there’s somewhere to cut if the times get really really lean.

4. Operating margin. Pretty simple – don’t spend more than you earn. If you do, you’ll need to dip into that equity balance from item one, further diversify your revenue, or sell off the new copier/scanner you purchased to support your office operations.
It all sounds like common sense to me and I’ve been glad to find out that that common sense is actually backed up by empirical research!

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Find Happiness Through Risk.

In Author: Jim Hart on October 27, 2009 at 1:57 am

All entrepreneurs, by definition, must engage with risk.

What is your risk tolerance?image of dice

Let me ask you a few questions.

Are you doing what you love for a living? If you aren’t already, would you like to?

What would you be willing to do to have the happiness that can come from doing what you love for a living?

Almost all businesses require money to begin. Thus begins our relationship with risk.

How much would you be willing to pay to potentially achieve your dream? How important are dreams to you?

Would you spend $1,000? How about $10,000?

Can you place a value on your career happiness and your feeling of work fulfillment?

How about $50,000? If you could make that investment, which would engage you in a process that may lead you to career fulfillment, would it not be worth $50,000? Is it worth more?

Many of us are forced into “survival jobs”, to do work that is not creatively fulfilling and is work we would not do in the first place, if we had another viable income.

If you were in such a place, what would it be worth to you to be able to leave that world behind and make a living from your creativity?

Would you be willing to risk your lifestyle?

If you like to eat out, would you be willing to sacrifice that part of your life? Would you be willing to eat in for almost all of your meals?

Would you be willing to eat less expensive food, if it might lead to your dreams?

Would you be willing to simplify almost all aspects of your life, to decrease your risk in pursuing your dream? Simple adjustments can have profound effects.

Almost all people feel a drive and need to work, to create, and do something productive. A lot of people feel very empowered and…dare I say…*happy* when they are doing the work they love. Then work is less work and more a joy.

If you had to sacrifice your lifestyle and finances for three years or longer, in order to achieve potential long term financial and career success, would you be willing to do that?

Here is the real crux…What if you invest all of that time, money and energy and do not succeed as you desire? What if you don’t fulfill your dream? That is a risk, too.

But what if you do?

Risking and sacrificing are, in some ways, like quitting smoking. For those who have smoked, you will know what I am talking about.

Those addicted to smoking, when they quit, will likely experience the following:

•    Your mind will play tricks on you, convincing you of why you REALLY NEED to smoke, why it is actually good for you.

•    You will profusely sweat and loose significant sleep

•    Your mind will fixate on cigarettes for nearly every thought of your day. One thought after another…hour after hour.

•    But, what one often finds too, is a feeling of empowerment.

These experiences are trying, exhausting and difficult to navigate.

For many ex smokers, 2 weeks was the magical point of gaining strength. If one can make it to the 2-week mark, without succumbing to withdrawal and all the temptation and mind games, they have a good chance of quitting successfully.

Engaged effort over a span of time, can give us a great sense momentum, of accomplishment and of purpose. Over time, we begin to see the fruit of our labors…or at least that the tree is in bloom and may fruit.

At this state, we gain perspective. We realize we would not have made it to even this point, had we not made the investments that were necessary. We are then that much closer to achieving our goal. The beginning risks, at this point, start to seem smaller and smaller, less and less significant.

Effort decreases entrepreneurial risk.

You can’t win the game, unless you play.

For greater happiness and creative fulfillment, what are you willing to risk?

Beginning a new endeavor, one, inevitably, has to sacrifice, has to risk. But, with time and continued effort, the enormity of the task, seems a little smaller.

For more information on Jim Hart and The Hart Technique, see http://www.harttechnique.com

Characteristics of Successful Entrepreneurs

In Entrepreneurial Tool Box on December 7, 2006 at 1:57 pm

mag.jpegIn an effort to understand entrepreneurs better, researchers have sought to define traits common to a majority of individuals who start and operate new ventures. John Hornaday of Babson College was among the first to use surveys and intense interviews to develop a composite list of entrepreneurial traits. Here is his list of traits:

Characteristics of Successful Entrepreneurs

• Self-confident and optimistic
• Able to take calculated risk
• Respond positively to challenges
• Flexible and able to adapt
• Knowledgeable of various markets
• Able to get along well with others
• Independent minded
• Versatile knowledge
• Energetic and diligent
• Creative, need to achieve
• Dynamic leader
• Responsive to suggestions
• Take initiative
• Resourceful and persevering
• Perceptive with foresight
• Responsive to criticism

How many of the above traits do you have? While some of them are subjective in scope, many of these are crystal clear and demonstrable from one’s actions. I also believe that most of the traits on this list, are not something intrinsic to our personality, but are in fact something we can choose to do or choose to be.

Our behavior, largely, is a choice.

A great entrepreneur knows that choosing most of the behaviors listed above, allows for one to know who they are increasingly better, as time passes, and also allows for growth.

For me, one of the benefits to being an entrepreneur 24/7, and not just an artist, is (don’t laugh now) I am a Gemini, and true to a Gemini’s form, I get bored easy. I don’t like that I do, and if I could change it about myself I would, but it’s truly part of who I am.

However, being an entrepreneur, allows me continuous personal growth, development of new relationships and learning about new things I know little about; which doesn’t allow time for me to be bored. I have become a master of marketing, finance, managing others, sales, and accounting, create something from nothing, while using my artistic creativity as the foundation.

What’s appealing about being an entrepreneur to you?