John Spindler, CEO of Capital Enterprise, presented on starting a theatre company. The presentation covered essentials like creating a business plan, budgeting for a first production, and identifying sources of funding. Attendees were given exercises to develop a production budget and 10-minute business plan to practice the concepts. The presentation aimed to provide theatre entrepreneurs with the basic steps and considerations for launching a new theatre company.

1. Stage Your Business
Essentials
John Spindler CEO of Capital
Enterprise

2. Key Learning Points of
Presentation
• Overview of The London Theatre Market Box Office Data.
• How to start- Theatre Company- Basics
• First Show Essentials
• Basic Budgeting
• 10 minute Business Plan
• 1 minute Elevator Pitch
• Sources of help & funding.
• Homework Exercises.

3. 2010 SOLT Box Office Data
Over View
2010
Average Average Av Income
Box Office No of Average % Tickets Ticket Price Ticket Price Per
Receipts Performances Attendence Sold Asked Paid Performance
SOLT Members
(43 Commercial & 8
subsidised London
Members) £512,331,808 18615 760 70% £45.12 £36.20 £27,512.00
SOLT Affliates
(8 mainly non West End
Theatres) £8,995,312 2993 202 65% £17.37 £14.86 £3,001.72
Source: Box Office Data Report 2010-SOLT

4. What the Public wants to see?
2010 Genre- Attendance
Entertainment &
Musical Play Dance Opera Performance
SOLT Members
(43 Commercial & 8
subsidised London
Members) 59.5% 26.2 7.0% 3.6% 3.7%
SOLT Affliates
(8 mainly non West End
Theatres) 8.00% 72.5% 0.2 2.4% 17.1%
Source: Box Office Data Report 2010-SOLT

5. Types of Play Performed.
2010 Types of Play Performed
Contemp (Post Modern (20C pre
New 1945) 1945) Classical
SOLT Members
(43 Commercial & 8
subsidised London
Members) 40% 35% 7.0% 17.0%
SOLT Affliates
(8 mainly non West End
Theatres) 63% 17% 6% 14.0%
Source: Box Office Data Report 2010-SOLT

6. Basic Step-by-Step Guide to
Starting a Theatre Company
1. Decide on who will be involved, roles, responsibilities, levels of commitment (investment) and
management structure.
2. Agree on a mission/ value statement- The criteria for determining what you are about and what
type/style of productions you are going to stage .
3. Create a name and a look. Brainstorm ideas on names and develop a logo and an identifiable “look” for
your publicity, etc.
4. Decide on profit/non-profit status. The main advantage of non-profit status ( Charity/Social enterprise) is
qualifying for grants and special discounts. It’s a lot of work, so be realistic about whether the effort is
worth it. You can always wait and turn non-profit in the future.
5. Register your company @ Companies House and possibly trade mark your name.
6. Open a bank account. This enables you to keep track of your company’s financial situation and to accept
checks written to the company’s name.
7. RESEARCH-RESEARCH-RESEARCH- Market (Audience)-Competition- Funding.
8. Identify your costs (direct and fixed) for on-going operations, pre-production, marketing and production.
9. Make funding decisions. Determining funding sources ( Investment, Grants, Loans) and likely amounts of
income . ( Ticket Sales/ Sponsorship/ Donations/ Sweat Capital)
10. Create a marketing/promotion plan of Action. Use “AIDA” and develop a plan to build audiences
through additional activities such as social network participation, teaching classes or hosting staged
readings.
11. Create a database. Consider keeping separate databases for general mailings and for press contacts.
12. Call in favours- Marshall your “Sweat Capital”
13. Work backwards. Put your first production date far enough into the future that you have time to lay
some groundwork. You won’t do your best planning under the deadline of an approaching opening night.

7. First Show Essentials
• Play
• Cast/Crew
• Venue
• Ticket Sales Operations
• Publicity
So you need:
A “SMART” Production Plan that incorporates:
• Marketing Plan
• Budget &Cashflow

8. First Steps into ShowBusiness
• “fiat ars,pereat mundi”
• Think of your Audience- Who are they- what do they want?
• Choose something for you first show that is relatively easy for you
to execute- something you know?
• Match ambition to resources e.g. Small Cast’s are cheaper
• Choose something simple to stage & portable
• Make it contemporary ( No costumes)
• Think of what will get your production noticed- media exposure
• Open Cast- Attract talent that can sell a show
• Don’t pay unless you have too
• Call in favours and do “quid pro quo” deals.

9. Theatre Budget
• Your Salary- Personal Survival Budget.
• Scripts - both for reading in order to select a show and for production
• Royalties - varies depending on the demand for the show and the size of the hall
• Specialty props or consumables that you can't borrow
• Rehearsal/performance hall rental
• Janitorial/security services (as required by the performance hall)
• Utilities (as required by the performance hall)
• Lighting/sound equipment rental, depending on what the performance hall offers
• Costume construction, purchase or rental (this can be a cast responsibility)
• Set construction - lumber, paint, screws, hardware, etc.
• Advertising - fliers and/or posters, possibly newspaper or radio ads
• Playbills (print costs and possibly design services)
• Musicians' fees (for musicals)
• Insurance
• Storage (costumes, sets, props, etc.)

10. Resource Need
• A director
• A stage manager
• A lighting/sound tech
• Someone who can design sets
• Someone who can build sets
• Someone willing to be in charge of publicity, including the playbill
• A music director (who will probably expect to be paid) and a choreographer (if you plan to do
musicals)
• At least three people willing to serve as the Board of Directors, or Steering Committee, or whatever
else you want to call the group that will take responsibility for running the company. One of these
should be willing to act as treasurer.
Likewise, you will need the following:
• A place to rehearse
• A place to perform
• A place to store costumes, props, etc. between productions
• A source for lighting/sound equipment rental

11. Homework Exercise
Prepare A Production Budget for a 10
performance revival of -
“Who’s Afraid of Virginia Wolf”
( See Hand Outs)

12. Pricing & Sales Forecasting
No of Tickets X Average Ticket Price = Sales Forecast
Cost of performance or production run / No of tickets @ “Market Price =
Target Sales Requiredto Break-Even.
• Price for Profit?- Need to cover the cost of performance by selling only 50-70% of theatre
capacity.
• Other Income- Subsidy or profit?
• Customer Pricing Expectation- Set by the competition, your positioning in the market and
the theatre
• Volume Vs Margin- If you give discounts you need to sell more tickets.
• Trade Profit for Cash- Importance of Advanced Bookings for Cash Flow.
• Think Long Term- Bigdifference between funding a production and funding a business.

13. Homework Exercise
Boot Camp Productions has booked a SOLT Affiliate Theatre to
stage 10 performances of a revival of “Whose Afraid of Virginia
Wolf”. The Production Budget for 10 performances is £15,000
and the development, marketing and rehearsal budget is a
further £10,000. The Theatre has 140 seats (all good views).
• Will the show make a profit or require a subsidy to Box office income?
• How much profit will be made/ subsidy required?
• Given what you know about the 2010 box office data – what is the
“optimum” total budget for producing this play at this theatre?
• What would you do to make a production of “Whose Afraid of Virginia
Wolf” work?

14. 10 minute Business Plan
• 7 Slides
• Challenge- “ Catch a fish”- an “investor”
Grab ttention
Spark nterest- What’s in it for them?
Create a esire – Leave them wanting more
Make them ct- What’s your ask?

15. Slide 1- Introductory Slide
• Who are You?
• Short Pitch- Your business/ production in one
line
• Tell the Business Plan “Reader” what want
them to remember

16. Slide 2- Audience/ Customer
• Who are you selling too?- Who has the
money?
• Audience Profile/ Market Size?
• Why will they come?
• Comparable success stories
• Specific examples

17. Slide 3 : Your Product/Service
• What are you offering- features/benefits
• Unique Selling Proposition- Why choose to
come to your production?
• Better than the competitor because….. ?
• How are you going to first reach then secondly
convince your customers to buy? – i.e.
marketing plan.

18. Slide 4- Why Now
• Market Trends- Good opportunity now
because…..?
• Time Critical Decision making process- Who do you
need to “get on side” to start the business (get the production of the drawing
board), how is it done and how near are you to getting a yes?
• Compelling Reason to “invest” now

19. Slide 5 - Why Us?
• Team Today ( Credentials, roles &
responsibilities)
• Team Future ( Staff, Associates, Partners)
• Connectivity & Partners. – Who do you know
and why are they useful ?
• Sustainable competitive advantage- What are
you going to do make sure you are not a “one
show/trick pony” ?

20. Slide 6: Financials
Keep it Simple ( i.e. A graph?)
• Top Line Sales
• Costs/ Cash Flow
• Investment Required & for what
• Forecast Value of IP/ Company ( based on payback,
NPV, IRR)
• Exit Strategy- How will the investor get more than his
money back.

21. Slide 7: The Elevator Pitch
1 minute to sell your 10 minute Business Plan
Remember:
1. Think like an investor/ commissioner- Resonate
2. Start strong-End Strong
3. Be direct and clear
4. Get the audience to engage- questions not
statements.
5. Have an ask they can say Yes too
6. Enough & No more.
7. Be passionate- Be Entertaining

22. Guide To Pitching
http://www.youtube.com/watch?v=48TR0vUPQCs

23. Sources of Start-up Finance
• Personal resources (time and money = sweat equity)
• Friends, Family & Fools ( Your Supporters)
• Customers and Suppliers
• Government Grants &Loans
• Corporate Sponsorship
• Debt Providers
– Banks
– Specialist lenders
• Equity Providers
– Private Investors-Angels
Matching the right mix of sources to the right stage and type of
finance is the key to successful fundraising

24. Looking for Funding?
Grants &Awards
• Stage One (Bursaries & Awards for New Producers)- http://www.stageone.uk.com/
• Arts Council- http://www.artscouncil.org.uk/funding/grants-arts
• London Councils- http://www.londoncouncils.gov.uk/services/grants/
• Fundraising Resources & News - http://www.fundraising.co.uk/news
• FoylesFoundation- http://www.foylefoundation.org.uk/main-grants-scheme-arts
• Welcome Trust- http://www.wellcome.ac.uk/Funding/Public-engagement/Funding-schemes/Arts-Awards/index.htm
• Shell Livewire -£1000 award for new entrepreneurs 16-30 - http://www.shell-livewire.org/news/awards2011
• UK Film Council- http://www.ukfilmcouncil.org.uk/whatwefund
• New Enterprise Allowance ( August 2011 in London) - http://www.dwp.gov.uk/adviser/updates/new-enterprise-allowance
• J4B- Portal for grant finding http://www.j4b.co.uk
• Skillset: http://www.skillset.org/funding/
• NESTA- http://www.nesta.org.uk/areas_of_work/creative_economy/digital_rnd
• British Council- http://www.britishcouncil.org/arts-performing-arts-funding.htm
• Angels- http://www.solt.co.uk/angels.html
Corporate Sponsorship
• http://artsandbusiness.org.uk/Media%20library/Files/Individual%20giving/09jul_taxguide.pdf
• http://www.companygiving.org.uk
• http://www.uksponsorship.com/arts1.htm
• http://resources.mediatrust.org/marketing-support/tactics/sponsorship/?gclid=CPjHwre-t6kCFcod4Qodo3-o-A
• Paste & Wait Investment (USA only) www.kickstarter.com
• Paste & Wait Investment. www.indiegogo.com
Bank
• Natwest- www.natwest.com
• Big Society Bank : http://www.ft.com/cms/s/0/89aaf79e-3848-11e0-8257-00144feabdc0.html#axzz1FqI1KiTx

25. Theatre Angels
The capital is raised through independent investors, or ‘angels’, who
individually invest a specific agreed amount of finance into the
production, and whose liability ends at that amount.
The first profits from the production always go straight back to
these investors until they have recouped their initial investment,
after which the production is deemed to be in profit. Once this
capital has been repaid, the investors will share in 60% of the
production’s profits, with the producers retaining the remaining
profits of 40%.
Usually, the minimum amount required to invest in a commercial
play is £2,500 and a musical approximately £10,000 but smaller
amounts are possible if agreed with the producer.
You will need a Lawyer to draw up the Agreement.

26. Useful Links
General Information:
• Capital Enterprise- www.capitalenterprise.org
• NESTA Guide to Starting a Creative Business-
http://www.nesta.org.uk/assets/features/creative_enterprise_toolkit
• Business Link - www.businesslink.gov.uk
• British Library- www.bl.uk/bipc
• HMRC http://www.hmrc.gov.uk
• Companies House: http://www.companieshouse.gov.uk
• Guide to Early Stage
Investment:http://www.paloalto.co.uk/about_us/Early_Stage_Investment_by_Alan_Gleeson.
pdf
Essential Theatre link:
• Society of London Theatre- http://www.solt.co.uk/
• British Theatre Guide: http://www.britishtheatreguide.info/links/linkindex.htm
• Theatrical Management Association- http://www.tmauk.org
• BECTU- Technicians Union Rates- www.bectu.org.uk/advice-resources/rates/tma-
rateswww.bectu.org.uk/advice-resources/rates/solt-rates
• Equity- http://www.equity.org.uk/resource-centre/
• Scripts- http://www.samuelfrench.com/store/royalties.php
• Power to the Pixel: http://www.powertothepixel.com
• Circalit: http://www.circalit.com
• Production Base: http://www.productionbase.co.uk

27. Contact us for more information or to arrange a
follow up meeting
john@capitalenterprise.org
020 7 679 4598
07968 470901