Wisdom as an entrepreneur is hard won and while there are a lot of great resources, in my humble opinion few of them are as useful and straight forward as the writing of Jay Goltz. If you're an entrepreneur (or an artrepreneur), you should be reading this blog:
http://boss.blogs.nytimes.com/2011/11/23/so-you-want-to-start-a-business-2/
Secondly, if you've been following my blog here you may have noticed that I'm a little bit crazy when it comes the importance of sales. So much so that I'm giving a short 2-part course called "Sales 101 for Artists." You can check it out here:
http://sales101forartists.eventbrite.com/
Thanks and have a happy and safe start to the holiday season.
Saturday, November 26, 2011
Friday, November 4, 2011
Attacking the Axioms and Investing in Marketable Skills – How Cities Can Help Creative Communities Thrive
This October marked the 16th annual Chicago Artists Month – a true local institution now and a great way for the city to showcase its creative talent. I was very excited to be involved with it and hope to do so again next year. I attended a number of events including a panel discussion on what the city can do to further promote and enhance the art environment here in Chicago. This topic echoes recent articles I’ve read in the Huffington Post and discussion I’ve been having in LinkedIn Groups, so I’ve thrashed out just some of my initial thoughts on the topic.
The Skills to Pay the Bills
Chicago has and will, in my opinion, continue to produce fantastic artists. With Columbia College, The School of the Art Institute and countless, active galleries, exhibitions, advocacy groups and organizations as well as significant spending by city government on public art projects, there’s no doubt in my mind that you will see great art here for a long time to come. But it seems to me that a lot of this great art will end up on consignment until it deteriorates under cobwebs, or be tucked away in hidden pop-up galleries, some of which come and go as quickly as an email marketing blast. It seems to me that the fundamental need that many of these artists have is less about advocacy and more about revenue – learning the basic marketing and sales skills. While I am not advocating cutting funding from existing programs or any of the various groups that actively promote and support the local arts, what I am saying is that if even one dollar more is going to be invested in the art community I think the biggest returns would come from using it to teach artists how to provide more support for themselves. Historically, many of the most successful artists were not only the most talented in their medium, but also the most tireless and talented marketers of their work. With social media, point of sale technologies and the proliferation of mobile devices, it’s easier and more cost-efficient than ever for artists to reach their market directly… if only they know how. Yet when we talk about professional artists and the skills they need, the art side of the conversation seems to get about 90% of the attention and the professional skill side of the equation is disregarded. If cities want to build a truly exceptional and sustainable art community, I think they do well to help artists focus more on that other, yet no less creative aspect of their profession.
The Professional Side of the Professional Artist
As I have mentioned above and elsewhere, I think of artists as trained professionals who should be compensated for their skills. Like dentists, attorneys, investment bankers, programmers, etc… None of these other professionals would likely work without compensation and virtually all of these professionals will gravitate towards where their market is most accessible and efficiently served. As an example, I grew up in the suburbs of Philadelphia during a time when doctors (the parents of many of my friends) were facing increasing malpractice insurance of such an extent that it was driving some of them out of business. So some of them packed up and left. They headed to places where it was easier and more affordable for them to practice – where they could best serve their market and make a living a doing it. Later, in college, many of my friends studied economics and went on to get MBAs. Where do they now reside? Generally in or near major financial centers… because that’s where their clients are. My first career was technology, so it’s no surprise that in 1998 I moved to Seattle, where every major company seemed to end in a dot something. Professionals follow their markets. And artists are no different in this regard. It’s easy to assume that artists head to cities like New York, Miami and LA simply because all the ‘serious artists’ seem to be in those cities, but I think that this assumption misconstrues the data. If the ‘serious artists’ are in those places, it’s probably got more to do with having ‘serious collectors’ (both private and corporate) in those markets. So markets eventually become oversaturated, which I think we’ve been seeing happen, especially in the face of the current global economic climate. What cities then benefit and emerge as the new places to be for the next generation of professional artists? Those that are drawing new businesses and creating jobs (and thereby creating affluence). Those that are building more walls (urban renewal), which will house more art. Where these pockets appear, the savvy artists will follow. Because professionals follow their markets.
Attacking the Axioms
Any panel discussion or article has certain fundamental axioms, or assumptions. In the case above, the assumption is that more can and should be done for the art community. I don’t disagree, but I think the discussions I hear too often focus on areas where cities are already spending generously. It’s like putting better constructed floors atop a faulty foundation. If you want to do more for the art community, I think more attention needs to be devoted to the bigger picture. It may seem counterintuitive, but I think that the best investment in the local creative community would come not necessarily from promoting and cultivating more arts or artists, but rather from helping build and shape the next generation of collectors and patrons. Perhaps this takes the form of outreach to businesses; The Art Institute for example had a very popular leasing program for many years. Or maybe professional organizations explore offering art collecting or art appreciation mini-courses for busy professionals. Are there incentives that can be given to large businesses to include local artists in their corporate collections? Are there additional tax benefits that can be created even at a ward level for buildings or businesses utilizing more interior artworks from local artists? Considering these questions changes the scope of the discussion and I believe it ultimately provides a more complete discussion (even if it means that many of us creative types have to get over a deeply-rooted aversion to commerce).
I’ll close with a phrase I often hear from starry-eyed artists and entrepreneurs alike: “If you build it, they will come.” Maybe… if you’re talking about ghosts playing baseball in your backyard fields. And quite likely, if you’re talking about a market for your local creative professionals.
Thanks for reading this and as always, I look forward to hearing your comments.
The Skills to Pay the Bills
Chicago has and will, in my opinion, continue to produce fantastic artists. With Columbia College, The School of the Art Institute and countless, active galleries, exhibitions, advocacy groups and organizations as well as significant spending by city government on public art projects, there’s no doubt in my mind that you will see great art here for a long time to come. But it seems to me that a lot of this great art will end up on consignment until it deteriorates under cobwebs, or be tucked away in hidden pop-up galleries, some of which come and go as quickly as an email marketing blast. It seems to me that the fundamental need that many of these artists have is less about advocacy and more about revenue – learning the basic marketing and sales skills. While I am not advocating cutting funding from existing programs or any of the various groups that actively promote and support the local arts, what I am saying is that if even one dollar more is going to be invested in the art community I think the biggest returns would come from using it to teach artists how to provide more support for themselves. Historically, many of the most successful artists were not only the most talented in their medium, but also the most tireless and talented marketers of their work. With social media, point of sale technologies and the proliferation of mobile devices, it’s easier and more cost-efficient than ever for artists to reach their market directly… if only they know how. Yet when we talk about professional artists and the skills they need, the art side of the conversation seems to get about 90% of the attention and the professional skill side of the equation is disregarded. If cities want to build a truly exceptional and sustainable art community, I think they do well to help artists focus more on that other, yet no less creative aspect of their profession.
The Professional Side of the Professional Artist
As I have mentioned above and elsewhere, I think of artists as trained professionals who should be compensated for their skills. Like dentists, attorneys, investment bankers, programmers, etc… None of these other professionals would likely work without compensation and virtually all of these professionals will gravitate towards where their market is most accessible and efficiently served. As an example, I grew up in the suburbs of Philadelphia during a time when doctors (the parents of many of my friends) were facing increasing malpractice insurance of such an extent that it was driving some of them out of business. So some of them packed up and left. They headed to places where it was easier and more affordable for them to practice – where they could best serve their market and make a living a doing it. Later, in college, many of my friends studied economics and went on to get MBAs. Where do they now reside? Generally in or near major financial centers… because that’s where their clients are. My first career was technology, so it’s no surprise that in 1998 I moved to Seattle, where every major company seemed to end in a dot something. Professionals follow their markets. And artists are no different in this regard. It’s easy to assume that artists head to cities like New York, Miami and LA simply because all the ‘serious artists’ seem to be in those cities, but I think that this assumption misconstrues the data. If the ‘serious artists’ are in those places, it’s probably got more to do with having ‘serious collectors’ (both private and corporate) in those markets. So markets eventually become oversaturated, which I think we’ve been seeing happen, especially in the face of the current global economic climate. What cities then benefit and emerge as the new places to be for the next generation of professional artists? Those that are drawing new businesses and creating jobs (and thereby creating affluence). Those that are building more walls (urban renewal), which will house more art. Where these pockets appear, the savvy artists will follow. Because professionals follow their markets.
Attacking the Axioms
Any panel discussion or article has certain fundamental axioms, or assumptions. In the case above, the assumption is that more can and should be done for the art community. I don’t disagree, but I think the discussions I hear too often focus on areas where cities are already spending generously. It’s like putting better constructed floors atop a faulty foundation. If you want to do more for the art community, I think more attention needs to be devoted to the bigger picture. It may seem counterintuitive, but I think that the best investment in the local creative community would come not necessarily from promoting and cultivating more arts or artists, but rather from helping build and shape the next generation of collectors and patrons. Perhaps this takes the form of outreach to businesses; The Art Institute for example had a very popular leasing program for many years. Or maybe professional organizations explore offering art collecting or art appreciation mini-courses for busy professionals. Are there incentives that can be given to large businesses to include local artists in their corporate collections? Are there additional tax benefits that can be created even at a ward level for buildings or businesses utilizing more interior artworks from local artists? Considering these questions changes the scope of the discussion and I believe it ultimately provides a more complete discussion (even if it means that many of us creative types have to get over a deeply-rooted aversion to commerce).
I’ll close with a phrase I often hear from starry-eyed artists and entrepreneurs alike: “If you build it, they will come.” Maybe… if you’re talking about ghosts playing baseball in your backyard fields. And quite likely, if you’re talking about a market for your local creative professionals.
Thanks for reading this and as always, I look forward to hearing your comments.
Saturday, September 24, 2011
Leasing vs Buying Artwork – Evaluating the Options
As the owner of an art leasing brokerage, I get asked a lot of questions by my clients. One of the questions I run into most frequently is whether it's better for a client to lease or to purchase artwork. I decided to put together this fairly simple guide to help answer that question. Leasing and purchasing artwork both have their own benefits, so to begin with I've provided a short overview of both options:
Why Lease Art?
There are a number of reasons and scenarios where leasing artwork makes sense. It allows you to create a unique environment without the large upfront cost and commitment. For many businesses, there is also a tax benefit – when artwork is purchased, it tends to be classified as a non-depreciable capital asses, whereas with a lease it's on the expense side of the balance sheet (note – I am certainly not as qualified to answer questions about this as a CPA or tax attorney and I always recommend consulting an experts when exploring potential tax ramifications). Lastly, and perhaps most appealing, it allows for change. If you are an individal or business that wants to be able to affordably rotate artwork, even once a year, without having the cost and time associated with long-term storage, maintenance, preservation and care that's typically required, than leasing might be your best bet.
Why Purchase Art?
There are also a number of reasons to acquire art. For some it can be an investment and a hedge against the viscisitudes of the market. In my own case, I find that the return on investment when I purchase artwork is much more immediate – that he artwork moves me in some important way and that it improves my quality of life by viewing it. If the artwork is something you wish to view and have access to for an indefinate period, or if you wish to develop a private or corporate collection to diversify your assets, than owning tends to make the most sense.
Evalutating the Options
1: Why are you seeking artwork? This is perhaps the most fundimental and most important question to ask. Based on the overviews provided above, in most cases I find that for individuals it makes more sense to purchase the artwork, while for businesses, almost without exception, leasing is a better fit. There are always exceptions though – if you are a business consultant or executive who has a rental apartment in another city for work, leasing artwork may make more sense. Likewise if you have a vacation or part-time home where you entertain guests for only part of the year, leasing can be a great option. On the business side, if you are a large bank or law firm with a privately currated collection and looking for art as a diversification of assest, than buying very well may be the more sensible option. If you are seeking art for pleasure or investment purposes, I would most oftewn suggest a purchase. If the nature of your need is more decorative, than I would lean towards leasing.
2: How long do plan to have the artwork? For many individuals and collectors, the answer may be forever, which supports a purchase decision. This may also be the case for a business, perhaps the owner is struck by a particular piece that he wants to have over his desk so that he can enjoy it forever. On the other hand, for temporary needs, such as seasonal business offices, home staging projects, etc... being able to have artwork only when needed presents a tremendous benefit. Likewise for hotel lobbys, medical reception areas and residential buildings, the people who come and go tend to change over time, so there is a value in being able to change the surroundings from time to time (seasonally, anually, etc...)
3: How much of a factor is cost? If I'm dealing with someone new to collecting who is looking for a piece or if I'm working with a property manager who has a fixed budget, than price can play a major role deciding to lease versus own work. For the individual, they may want to test the work out in their home before making a commitment to it. Even then, perhaps an installment plan makes the most sense. With the property manager, there may be a piece that fits their price range, but typically I'll recommend a lease as it will provide the most cost-efficient solution when you factor in the tax benefits and not needing to spend on long term maintainance and upkeep of the work.
4. Is maintainance and upkeep going to present a challenge? As mentioned in the section above, there is a cost to maintaining artwork. If the work is photo-sensitive (such as photography, prints and watercolors), it's important to gauge the amount of sunlight the artwork is exposed to over time to prevent fading and loss of color.
Other Considerations:
Installation. Whether the artwork is going to a private residence or to an office complex, there may be a need to involve a professional art installer. If the piece is small and the client wants to hang it themselves, I can often devise an arrangement where they pick up the artwork from the artist or from a local studio. While they avoid the installation costs by doing so, they are liable for any damage to the work the moment they take possession of the work. For larger or more delicate artworks, or situations that require a more complex installation, I always suggest using insured art installers. With a purchase scenario, typically there is a one time installation cost. With a lease it's important to consider that there may be an installation cost each time the work is rotated and/or removed. I have found that on average, expert installers charge around $75 per hour and there may be an additional cost if they need to rent a vehical for transport or if the job requires more than one person.
Framing, Matting and Other Preparations. Framing, mounting, printing, matting and other preperations are also worth considering when leasing versus owning work. For leases, cost is often more of a factor so I like to work with “gallery wrapped” pieces that don't require framing as this will reduce the cost. For scenarios where framing is required, I have some relationships which allow me to rent frames along with the work. For purchase scenarios, it's always the client's option and I can have the work framed and matted as required, but often the buyer will have their own resources they wish to use.
Shipping and Crating. If the artwork is fragile, unwieldy and traveling long distances or overseas, transporting the work can become a significant cost consideration. As with installation, it's important to keep in mind that if you're purchasing the work ideally you'll only need to transport it once. If the artwork is leased, it will need to be returned at some point.
Insurance. For lease scenarios, it is not typically a problem to list the work under an existing policy (general liability for a business or home owners for individuals). Occasionally it may require a rider, depending on the value of the work and the coverage provided by the existing policy. With a purchase and for more expensive leases, it may be worthwhile to investigate an art insurance policy. These policies can become expensive, so it's helpful to talk with an expert. I have worked with and can recommend the team at DeWitt Stern for art-related insurance needs.
I hope this has been helpful and I am always happy to answer any questions about the subject to the best of my ability, and to direct you to other resources or specialists if needed.
Why Lease Art?
There are a number of reasons and scenarios where leasing artwork makes sense. It allows you to create a unique environment without the large upfront cost and commitment. For many businesses, there is also a tax benefit – when artwork is purchased, it tends to be classified as a non-depreciable capital asses, whereas with a lease it's on the expense side of the balance sheet (note – I am certainly not as qualified to answer questions about this as a CPA or tax attorney and I always recommend consulting an experts when exploring potential tax ramifications). Lastly, and perhaps most appealing, it allows for change. If you are an individal or business that wants to be able to affordably rotate artwork, even once a year, without having the cost and time associated with long-term storage, maintenance, preservation and care that's typically required, than leasing might be your best bet.
Why Purchase Art?
There are also a number of reasons to acquire art. For some it can be an investment and a hedge against the viscisitudes of the market. In my own case, I find that the return on investment when I purchase artwork is much more immediate – that he artwork moves me in some important way and that it improves my quality of life by viewing it. If the artwork is something you wish to view and have access to for an indefinate period, or if you wish to develop a private or corporate collection to diversify your assets, than owning tends to make the most sense.
Evalutating the Options
1: Why are you seeking artwork? This is perhaps the most fundimental and most important question to ask. Based on the overviews provided above, in most cases I find that for individuals it makes more sense to purchase the artwork, while for businesses, almost without exception, leasing is a better fit. There are always exceptions though – if you are a business consultant or executive who has a rental apartment in another city for work, leasing artwork may make more sense. Likewise if you have a vacation or part-time home where you entertain guests for only part of the year, leasing can be a great option. On the business side, if you are a large bank or law firm with a privately currated collection and looking for art as a diversification of assest, than buying very well may be the more sensible option. If you are seeking art for pleasure or investment purposes, I would most oftewn suggest a purchase. If the nature of your need is more decorative, than I would lean towards leasing.
2: How long do plan to have the artwork? For many individuals and collectors, the answer may be forever, which supports a purchase decision. This may also be the case for a business, perhaps the owner is struck by a particular piece that he wants to have over his desk so that he can enjoy it forever. On the other hand, for temporary needs, such as seasonal business offices, home staging projects, etc... being able to have artwork only when needed presents a tremendous benefit. Likewise for hotel lobbys, medical reception areas and residential buildings, the people who come and go tend to change over time, so there is a value in being able to change the surroundings from time to time (seasonally, anually, etc...)
3: How much of a factor is cost? If I'm dealing with someone new to collecting who is looking for a piece or if I'm working with a property manager who has a fixed budget, than price can play a major role deciding to lease versus own work. For the individual, they may want to test the work out in their home before making a commitment to it. Even then, perhaps an installment plan makes the most sense. With the property manager, there may be a piece that fits their price range, but typically I'll recommend a lease as it will provide the most cost-efficient solution when you factor in the tax benefits and not needing to spend on long term maintainance and upkeep of the work.
4. Is maintainance and upkeep going to present a challenge? As mentioned in the section above, there is a cost to maintaining artwork. If the work is photo-sensitive (such as photography, prints and watercolors), it's important to gauge the amount of sunlight the artwork is exposed to over time to prevent fading and loss of color.
Other Considerations:
Installation. Whether the artwork is going to a private residence or to an office complex, there may be a need to involve a professional art installer. If the piece is small and the client wants to hang it themselves, I can often devise an arrangement where they pick up the artwork from the artist or from a local studio. While they avoid the installation costs by doing so, they are liable for any damage to the work the moment they take possession of the work. For larger or more delicate artworks, or situations that require a more complex installation, I always suggest using insured art installers. With a purchase scenario, typically there is a one time installation cost. With a lease it's important to consider that there may be an installation cost each time the work is rotated and/or removed. I have found that on average, expert installers charge around $75 per hour and there may be an additional cost if they need to rent a vehical for transport or if the job requires more than one person.
Framing, Matting and Other Preparations. Framing, mounting, printing, matting and other preperations are also worth considering when leasing versus owning work. For leases, cost is often more of a factor so I like to work with “gallery wrapped” pieces that don't require framing as this will reduce the cost. For scenarios where framing is required, I have some relationships which allow me to rent frames along with the work. For purchase scenarios, it's always the client's option and I can have the work framed and matted as required, but often the buyer will have their own resources they wish to use.
Shipping and Crating. If the artwork is fragile, unwieldy and traveling long distances or overseas, transporting the work can become a significant cost consideration. As with installation, it's important to keep in mind that if you're purchasing the work ideally you'll only need to transport it once. If the artwork is leased, it will need to be returned at some point.
Insurance. For lease scenarios, it is not typically a problem to list the work under an existing policy (general liability for a business or home owners for individuals). Occasionally it may require a rider, depending on the value of the work and the coverage provided by the existing policy. With a purchase and for more expensive leases, it may be worthwhile to investigate an art insurance policy. These policies can become expensive, so it's helpful to talk with an expert. I have worked with and can recommend the team at DeWitt Stern for art-related insurance needs.
I hope this has been helpful and I am always happy to answer any questions about the subject to the best of my ability, and to direct you to other resources or specialists if needed.
Sunday, August 21, 2011
The Fine Art of Digital Fine Art Printing, Artrepreneur Profile: James Kay, Owner and Founder of Transmission Atelier and Factory Imaging
From time to time, I run into questions about digital art prints, which is a subject I don't know a whole lot about. But like many of my clients, it's something I'm curious about, so I sought out an expert on the subject. There are a lot to choose from here in Chicago with Anchor Press and many other specialists, but I was introduced to James Kay by another local art consultant and immediately I was struck by his sheer and infectious passion for the technique as well as the history of art printing. Since that time he's become my digital print guru – he's the first one I consult on print-related questions or quandaries. So I was understandably very excited when he agreed to allow me to conduct a short interview with him as a digit print artrepreneur.
The first thing James explained to me is that within the printing world, there are hand-pulled, limited edition man-made prints, and then there are digital prints. “I don't think one is intrinsically superior over the other – they are just very different disciplines and each has its own purpose. For hand-pulled prints, the uniqueness, the embossing, the subtleties of each print are part of the artwork itself. For digital printing, it's about exact replication of the original work. There are a lot of amazing print shops that do hand-pulled work and I am very impressed with that art form but my knowledge, passion and experience is really focused on digital printing.”
James' experience with printing goes back to his early teen years. His grandfather and two uncles were in the prepress business (actually the first ones to do electronic color separation here in Chicago) and starting in the early 80's, he would work with them after school and on weekends.
“Printing was a very blue color job at the time,” he recalled. “It was a union business like being a carpenter or an electrician. Typically you would find a press owner and go through an apprenticeship.”
His informal apprenticeship to the family printing business led him to a job at Leo Burnett, where he worked for several years printing ads and inserts and managing a lot of Leo's printing technology. All the while, he found himself wondering why there weren't more people using commercial printing equipment for fine art. He heard about Black Box Collotype from time to time, but for the most part, it seemed that the worlds of fine art and commercial printing (like those of art and entrepreneurship) just didn't have much overlap with one another.
Leo was always on the leading edge with their printing equipment and it gave James a firsthand opportunity to watch the technology evolve – from new overhead cameras to ink jet printing and to his first exposure in the early 90's to a commercial machine for fine art printing – the Iris Ink jet Printer.
It was in 2005 at the Graph Expo when James saw both HP and Cannon demoing 12 color, pigment-based fine art printers that he realized the time had arrived. An entrepreneur could finally build a compact, digital fine art printing studio... if they had the funds for it. So he started saving up to invest in the equipment and open his own shop, which he did in 2008.
What about Giclees? How did that come to be a dirty French word, I asked? He chucked and reminded me that the word isn't really French at all. The word was invented by a Los Angeles printmaker who was making prints from his garage. These often low quality prints flooded the market and had the enduring effect of prejudicing a lot of the art community against Giclees. But really it's just a word for digital multiples, for utilizing current technology.
This idea of artwork being created by a machine has also been a bit of a prejudice in some circles, he noted. Some people hold firm to the idea that artwork made by a machine is simply not artwork.
“Multiples have a long history and they have come a long way as far as acceptance in the art world,” he mused. “In 1908 – 1914 Gustav Klimt and Egon Schiele hired currency printers to create ultra high-quality multiples and this was a major turning point in art printing history. Since then Frank Bourdas, for example, started a digital atelier and prints works that have hung in the Louvre. Fernand Mourlot is another commercial lithographic printer – even some of the exhibition posters he printed can sell for thousands of dollars. And artists like Dubuffet, Picasso, Matisse all explored lithography and printing at times.”
When asked about collecting art and art prints, James replied much the way I do, “if you're looking at collecting for value, I'm not the expert you need to talk to. There are certainly some collectors who collect prints but for myself, the value in the prints I make tends to be my enjoyment of the image. In that sense, prints make collecting more accessible. It's easier and more affordable to have artworks you enjoy looking at. And yes, if you choose carefully, there are prints that can increase in value significantly. There are also, of course, prints like those by Nagel, whose mass, uncontrolled editions have ended up devaluing themselves.”
What then are some things to consider as a collector or as an artist when exploring multiples? “As a collector or an artist, you're always concerned with the original, which can be damaged or lost. If you want to be able to look at the artwork even after you've sold it or if you want to keep the original in a temperature-controlled storage vault, then a digital print can solve that problem. It gives a sort of serial immortality to an artwork.”
He went on to explain that, “even though the technology may be superior from one printer to another, the experience of the printer always trumps the technology. It's still easy for someone with a million-dollar piece of equipment to produce a lower quality result than someone using a twenty thousand dollar piece of equipment. This includes color experience – how well does the printer stay true to the original? With digital printing, you're looking for an exact, indistinguishable facsimile. Look for any fading or weird pixelation, especially in areas of contrast.”
Regarding cost, James explained that there is a bit of an asymptotic relationship with printing. For X amount of dollars, you may be able to produce a print that is about 95% indistinguishable. To get to 97% the cost may double. To get to 99% it may double again – getting increasingly expensive as you lean toward that impossible point of absolute perfection.”
As a final consideration, James suggested “limiting the edition. I haven't come across any clear equation for determining how many prints an artist should run or how these should be priced against the original, but it's something that warrants consideration.”
Dedicated artrepreneur that he is, James rides out the challenging market and continues to produce extraordinary digital prints for a wide range of artists. For more information about James and aoth Transmission Atelier and Factory Imaging, check out the websites here:
http://transmissionatelier.com/home/about/
http://www.factoryimaging.com/
The first thing James explained to me is that within the printing world, there are hand-pulled, limited edition man-made prints, and then there are digital prints. “I don't think one is intrinsically superior over the other – they are just very different disciplines and each has its own purpose. For hand-pulled prints, the uniqueness, the embossing, the subtleties of each print are part of the artwork itself. For digital printing, it's about exact replication of the original work. There are a lot of amazing print shops that do hand-pulled work and I am very impressed with that art form but my knowledge, passion and experience is really focused on digital printing.”
James' experience with printing goes back to his early teen years. His grandfather and two uncles were in the prepress business (actually the first ones to do electronic color separation here in Chicago) and starting in the early 80's, he would work with them after school and on weekends.
“Printing was a very blue color job at the time,” he recalled. “It was a union business like being a carpenter or an electrician. Typically you would find a press owner and go through an apprenticeship.”
His informal apprenticeship to the family printing business led him to a job at Leo Burnett, where he worked for several years printing ads and inserts and managing a lot of Leo's printing technology. All the while, he found himself wondering why there weren't more people using commercial printing equipment for fine art. He heard about Black Box Collotype from time to time, but for the most part, it seemed that the worlds of fine art and commercial printing (like those of art and entrepreneurship) just didn't have much overlap with one another.
Leo was always on the leading edge with their printing equipment and it gave James a firsthand opportunity to watch the technology evolve – from new overhead cameras to ink jet printing and to his first exposure in the early 90's to a commercial machine for fine art printing – the Iris Ink jet Printer.
It was in 2005 at the Graph Expo when James saw both HP and Cannon demoing 12 color, pigment-based fine art printers that he realized the time had arrived. An entrepreneur could finally build a compact, digital fine art printing studio... if they had the funds for it. So he started saving up to invest in the equipment and open his own shop, which he did in 2008.
What about Giclees? How did that come to be a dirty French word, I asked? He chucked and reminded me that the word isn't really French at all. The word was invented by a Los Angeles printmaker who was making prints from his garage. These often low quality prints flooded the market and had the enduring effect of prejudicing a lot of the art community against Giclees. But really it's just a word for digital multiples, for utilizing current technology.
This idea of artwork being created by a machine has also been a bit of a prejudice in some circles, he noted. Some people hold firm to the idea that artwork made by a machine is simply not artwork.
“Multiples have a long history and they have come a long way as far as acceptance in the art world,” he mused. “In 1908 – 1914 Gustav Klimt and Egon Schiele hired currency printers to create ultra high-quality multiples and this was a major turning point in art printing history. Since then Frank Bourdas, for example, started a digital atelier and prints works that have hung in the Louvre. Fernand Mourlot is another commercial lithographic printer – even some of the exhibition posters he printed can sell for thousands of dollars. And artists like Dubuffet, Picasso, Matisse all explored lithography and printing at times.”
When asked about collecting art and art prints, James replied much the way I do, “if you're looking at collecting for value, I'm not the expert you need to talk to. There are certainly some collectors who collect prints but for myself, the value in the prints I make tends to be my enjoyment of the image. In that sense, prints make collecting more accessible. It's easier and more affordable to have artworks you enjoy looking at. And yes, if you choose carefully, there are prints that can increase in value significantly. There are also, of course, prints like those by Nagel, whose mass, uncontrolled editions have ended up devaluing themselves.”
What then are some things to consider as a collector or as an artist when exploring multiples? “As a collector or an artist, you're always concerned with the original, which can be damaged or lost. If you want to be able to look at the artwork even after you've sold it or if you want to keep the original in a temperature-controlled storage vault, then a digital print can solve that problem. It gives a sort of serial immortality to an artwork.”
He went on to explain that, “even though the technology may be superior from one printer to another, the experience of the printer always trumps the technology. It's still easy for someone with a million-dollar piece of equipment to produce a lower quality result than someone using a twenty thousand dollar piece of equipment. This includes color experience – how well does the printer stay true to the original? With digital printing, you're looking for an exact, indistinguishable facsimile. Look for any fading or weird pixelation, especially in areas of contrast.”
Regarding cost, James explained that there is a bit of an asymptotic relationship with printing. For X amount of dollars, you may be able to produce a print that is about 95% indistinguishable. To get to 97% the cost may double. To get to 99% it may double again – getting increasingly expensive as you lean toward that impossible point of absolute perfection.”
As a final consideration, James suggested “limiting the edition. I haven't come across any clear equation for determining how many prints an artist should run or how these should be priced against the original, but it's something that warrants consideration.”
Dedicated artrepreneur that he is, James rides out the challenging market and continues to produce extraordinary digital prints for a wide range of artists. For more information about James and aoth Transmission Atelier and Factory Imaging, check out the websites here:
http://transmissionatelier.com/home/about/
http://www.factoryimaging.com/
Saturday, July 30, 2011
Prospecting, Understanding Your Market and GIGO (Sales 101 for Artists Part 2)
“90 percent of a sale is made before you ever pick up the phone.”
That was one of the many quotes I learned from my mentor in my first sales position when I was with an Internet business in the late 90's. It took me a while to figure out what he was talking about, but the statement stuck with me and I kept turning it over in my mind, like a mystical sales mantra.
What he was talking about, I finally realized, was essentially two interconnected ideas. The first is understanding both your market and your offering. The second (which is the logical extension the first) is prospecting.
If you understand not only your offering but what sort of buyer is most likely to have an interest, it makes identifying those prospects much easier. And if you begin by contacting more highly qualified prospects, the result should be noticeable almost immediately.
As an example, let's say you are in the business of providing bandages. You might cast a wide net in your prospecting and start contacting anyone and everyone, since you could argue that everyone should be prepared in the case of an emergency (which is true!). Some may be interested and some may not – for this example we'll assume that 30% of the people you talk to will show some interest or feel that they have a pressing need. Within that wide range of people you called, you likely started to see certain patterns emerge. Some types of professionals were more likely to understand the need and value of your offering – perhaps firefighters and paramedics. These people are already very familiar with the importance of bandages – they use them on a regular basis. When you talk to them, you find that they not only have a regular need for the product, but they also have an extensive understanding of the different types and quality. Educating this market is not something you need to spend much time on – many of them might be more knowledgeable about certain aspects of bandages than you are. You might be able to simply ask them how many bandages they need and what type. In theory, instead of 30% of this portion of the market being interested in your product, maybe 70% has an immediate need. By focusing on just one small, highly qualified portion of the total market, you just more than doubled your starting chances for building a successful relationship. You also reduced the time it takes to get to the value of your offering. All of which means you should be able to make more sales with less effort.
And what I've found is that this holds true whether you are in the business of selling bandages, Internet services, ballet season tickets or artwork.
In the case of artwork, when I was starting up Chicago Art Leasing, I realized that my market was anyone who had bare walls. Now, there's probably a bare wall in just about every office and home in the country, but I knew that it would be a new definition of insanity to try calling every one of them. So I researched my market – who had need not only for artwork, but saw a clear benefit in leasing rather purchasing it? Most individuals and home owners showed a preference for owning artwork. But businesses saw tax benefits and other advantages in leasing it. Within this market, I found that real estate developers, interior designers, home stagers and a few other categories had a much greater need for temporary or rotating artwork than other industries. So I started focusing more on these and found that sales increased significantly.
I didn't rule out other markets entirely and from time to time I would do some exploration. I found that in some cases, such as law firms, they had needs for my offering but the sales cycle was simply longer as several different partners with different tastes had to reach an agreement before they could make a purchase or lease. Once I had the experience to guide them through the decision making process and a few case studies to share with other law firm prospects, it made generating business from that market much easier. It just took some time and asking a lot of questions to understand the needs of this particular market.
Focusing on what works is critical, but sometimes changing it up and exploring other markets is worthwhile as well. Hyper-focusing on just one segment of the market can become repetitive and even lead to burning out, which is every bit as bad for sales as chasing unqualified leads.
Lastly, I want to introduce an acronym to those of you who are unfamiliar with it: GIGO. If I remember correctly, I first encountered this arrangement of letters in database and technology development. It stands for Garbage In, Garbage Out, meaning that if you start with poor data and faulty code, you will end up with errors and useless output. In the context of prospecting, if you're starting out with less qualified leads, it stands to reason that the number of prospects that make it through the funnel to become new clients will be fewer (see my post “Funnels and You” for more on that topic). I was performing some ticket sales-related work for a well known local ballet company. They had set up a call center and entered leads for the telemarketers to call on. It became apparent that some prospects were much more qualified than others and as the campaign went on, those people who had been called were less likely to purchase than other, fresher contacts. It had all the appearance of a case of GIGO, and being able to prospect outside of the tired leads that had been entered into the sales system seemed to have a noticeable impact.
As always, I hope that you find this information helpful and I always welcome your thoughts and feedback.
That was one of the many quotes I learned from my mentor in my first sales position when I was with an Internet business in the late 90's. It took me a while to figure out what he was talking about, but the statement stuck with me and I kept turning it over in my mind, like a mystical sales mantra.
What he was talking about, I finally realized, was essentially two interconnected ideas. The first is understanding both your market and your offering. The second (which is the logical extension the first) is prospecting.
If you understand not only your offering but what sort of buyer is most likely to have an interest, it makes identifying those prospects much easier. And if you begin by contacting more highly qualified prospects, the result should be noticeable almost immediately.
As an example, let's say you are in the business of providing bandages. You might cast a wide net in your prospecting and start contacting anyone and everyone, since you could argue that everyone should be prepared in the case of an emergency (which is true!). Some may be interested and some may not – for this example we'll assume that 30% of the people you talk to will show some interest or feel that they have a pressing need. Within that wide range of people you called, you likely started to see certain patterns emerge. Some types of professionals were more likely to understand the need and value of your offering – perhaps firefighters and paramedics. These people are already very familiar with the importance of bandages – they use them on a regular basis. When you talk to them, you find that they not only have a regular need for the product, but they also have an extensive understanding of the different types and quality. Educating this market is not something you need to spend much time on – many of them might be more knowledgeable about certain aspects of bandages than you are. You might be able to simply ask them how many bandages they need and what type. In theory, instead of 30% of this portion of the market being interested in your product, maybe 70% has an immediate need. By focusing on just one small, highly qualified portion of the total market, you just more than doubled your starting chances for building a successful relationship. You also reduced the time it takes to get to the value of your offering. All of which means you should be able to make more sales with less effort.
And what I've found is that this holds true whether you are in the business of selling bandages, Internet services, ballet season tickets or artwork.
In the case of artwork, when I was starting up Chicago Art Leasing, I realized that my market was anyone who had bare walls. Now, there's probably a bare wall in just about every office and home in the country, but I knew that it would be a new definition of insanity to try calling every one of them. So I researched my market – who had need not only for artwork, but saw a clear benefit in leasing rather purchasing it? Most individuals and home owners showed a preference for owning artwork. But businesses saw tax benefits and other advantages in leasing it. Within this market, I found that real estate developers, interior designers, home stagers and a few other categories had a much greater need for temporary or rotating artwork than other industries. So I started focusing more on these and found that sales increased significantly.
I didn't rule out other markets entirely and from time to time I would do some exploration. I found that in some cases, such as law firms, they had needs for my offering but the sales cycle was simply longer as several different partners with different tastes had to reach an agreement before they could make a purchase or lease. Once I had the experience to guide them through the decision making process and a few case studies to share with other law firm prospects, it made generating business from that market much easier. It just took some time and asking a lot of questions to understand the needs of this particular market.
Focusing on what works is critical, but sometimes changing it up and exploring other markets is worthwhile as well. Hyper-focusing on just one segment of the market can become repetitive and even lead to burning out, which is every bit as bad for sales as chasing unqualified leads.
Lastly, I want to introduce an acronym to those of you who are unfamiliar with it: GIGO. If I remember correctly, I first encountered this arrangement of letters in database and technology development. It stands for Garbage In, Garbage Out, meaning that if you start with poor data and faulty code, you will end up with errors and useless output. In the context of prospecting, if you're starting out with less qualified leads, it stands to reason that the number of prospects that make it through the funnel to become new clients will be fewer (see my post “Funnels and You” for more on that topic). I was performing some ticket sales-related work for a well known local ballet company. They had set up a call center and entered leads for the telemarketers to call on. It became apparent that some prospects were much more qualified than others and as the campaign went on, those people who had been called were less likely to purchase than other, fresher contacts. It had all the appearance of a case of GIGO, and being able to prospect outside of the tired leads that had been entered into the sales system seemed to have a noticeable impact.
As always, I hope that you find this information helpful and I always welcome your thoughts and feedback.
Tuesday, June 21, 2011
Funnels and You (Sales 101 for Artists)
I just wanted to share this article here. It looks like it may evolve into a small course so feel free to let me know your thoughts and comments. I appreciate it.
Here is the full article: http://chicagoartmachine.com/2011/02/12/funnels-and-you-sales-101-for-artists/
Enjoy!
Here is the full article: http://chicagoartmachine.com/2011/02/12/funnels-and-you-sales-101-for-artists/
Enjoy!
Sunday, May 1, 2011
The Strategic Value and Perils of Passion
I remember the first time I saw the line item “goodwill” appear on an entrepreneur's balance sheet. It made me stop, scratch my head and think, now how can you possibly attach a value to that? It turns out, of course, that you can apply measurements to an intangible asset like this, but I didn't know that at the time. I've gone back to that moment mentally more than once, wondering about other critical aspects of my business that I rely on which might seem to defy a monetary value. And one stood out above all others: Passion.
Passion, to my way of thinking, is that inspiration that's both infectious and unmistakable. It generates the kind of genuine happiness that you see in the way someone's eyes seem to glow when they talk about their business – not unlike the way some parents exude happiness when they talk about their children. It's simply impossible to fake. It's also a spare tank of fuel that can allow you to push beyond the point of normal endurance. It's like an entrepreneurs equivalent of a runner's high or some other natural boost.
Like any temporary boost though, it has it's price and it's downsides. And as with any other asset of your business, it has to be managed appropriately, otherwise it can quickly become a drain on both monetary and temporal resources.
While it may not be able to pin down an exact dollar amount or equation for evaluating Passion, I think it can still be examined as competitive edge and a true business asset. I've explore the role passion plays in just a few examples below:
Passion and Creativity
This could easily be an entire piece on its own, but I just want to scratch the surface here. As an artist and someone in the art business, I've learned that what a client is often seeking when they are shopping for art is none other than the artists' passion made manifest. I continue to be surprised by the artworks my clients and friends are most moved by, and it's often not the happier, brighter pieces. In my own case it's been pieces like “Angels of the Silences,” “Shades of Regret” and “The Barker” that tend to pique peoples interest. (Note: I always qualify any conversation regarding my own work by stating that I am certainly the weakest of the artists I represent). All of these artworks have something in common beyond just being some of my darker work – they sprang from some of my most emotionally turbulent times and viewers tend to pick up on that. I asked one client why he was drawn to a particularly dark piece and he replied, “when I want a great piece of art, I look for something that makes me feel something important to feel, which is not always happiness. I want the blood, sweat and tears.” What he wants, in short, is the passion of the artist.
Passion and Networking
Sometimes it's easy to spot the inspired, passionate entrepreneur in a networking group. Maybe she's the one talking a mile a minute, gesticulating madly before, with an ear to ear grin, she delves back into the land of ideas. Even though you may wonder for a moment is she will start speaking in tongues, you find yourself listening to what she's saying anyway. And what she says tells a story that you connect with. It fires you up and opens new vistas of possibilities – new services, improvements to vendor relations, innovative potential collaborations... And before you know it, you're being ushered out of the event, which ended an hour ago. That's entrepreneurial passion and it has the power to transfix. These people stand out in a crowd and inspire you not only to broaden and challenge your thinking, but more specifically, to do business with them. In the world of networking where everyone sometimes seems to be marketing everything, passion is sometimes the differentiator.
A great example of this is in my opinion is someone like Jonny Imerman, Founder of Imerman Angels. As a cancer survivor he has discovered his personal mission of connecting other cancer survivors around the globe so that no one has to face there experience alone. His passion for what he does informs all aspects of his business and makes it impossible not to share his excitement and enthusiasm. He is always upbeat and even if you just exchange three words with him, he's one of those people with the uncanny ability to make you feel like you just spent half a day making meaningful conversation.
Passion and Sales
As with the above, there have been a number of meetings with property managers, developers and others, where I see the effect of passion. When I show up to the meeting, I own the idea I'm bringing with me, but by the time I leave, the people I've been talking with own the idea and want to run with it. I can think of one example in particular where I went to meet with a large real estate developer and talked about collaborative opportunities with their senior team. I could tell when my associate and I sat down that this would be a tough crowd, so I decided not to go slide by slide through the presentation I had prepared. Rather, I wanted to engage them, so I asked each of them to name three things they wanted me to talk about and I would focus on those. If I recall correctly, delivery, cost savings and marketing value were the big three items, so I started with the cost savings. As I went through real, tangible savings I could generate for them by leasing artwork versus purchasing it, I felt them start to thaw. By the time I got to delivery and showing examples of our reliability, they were lukewarm. It was marketing value that really won the day and I could see their eyes starting to light up. They started asking questions and putting fort their own ideas and suggestions. I don't think I ever finished all the points I wanted to hit, but it didn't really matter. We easily ate through the half hour I had allotted for questions and could have gone on longer. They wanted to start drafting up plans and time lines right away. By the time I left their office, they had a list of deliverables that they had set for themselves and they fully owned the idea, wanting to share their idea with the entire global organization. It was a spectacular experience and a great example of how passion and sales can align to generate business. By catering your presentation to your clients and engaging them, you can make your passion an asset and turn potential clients and prospects into fans and advocates.
Passion and Execution
It's one thing to be passionate about all the ideas and opportunities on a call or at a meeting, but when it comes to delivery, it's easy to drop the ball. I do a few things to ensure that I remain as passionate about delivering and executing as I do about marketing. For me, one of the greatest feelings that comes with this job I've invented is taking pictures of the final result – a home, office or lobby with truly unique and suitable artwork on the walls. No matter how large or small a project, I look at each individual scenario to be the best one yet in terms of aesthetic results and client satisfaction. I also create case studies out of every project and try to follow up regularly not only for client quotes and testimonials, but to make sure that the ongoing satisfaction is as high as possible and that any potential issues are addressed rapidly and in a manner that keeps clients excited about what we are doing. Going into my business, I expected to have a renewal rate for leased artwork of roughly 50% at best. Going into our third year now, retention is higher than 90%. I attribute this largely for the passion that goes into execution and delivery.
Passion and Fortitude
Endurance, pushed to its utmost extreme, at some point simply gives out. You hit a point where you can go no further. Maybe you've knocked on 50 doors, make 150 calls and have two networking events to get to yet that day, and you simply don't feel like you can keep up the pace. Especially if it's been that way for weeks, or months. Or years. So what is it that allows you to take a 20 minute power nap, visit the events and then follow up with the people you met before you finally collapse for the night? I believe it's passion. At HotJobs, I remember one of the many quotes that Richard Johnson would use, that the superstars are the ones who go out every day and give 100%, on the days when they didn't even feel like getting out of bed. Passion can carry you through the final lap when every fiber of your being is crying out that you've had enough.
Now, maybe there are some people who are simply built with an extra cylinder and don't tire or need to sleep and eat and relax like the rest of us. I am certainly not one of these and I rely heavily on the passion for what I am doing and the commitments I have made to my clients and artists, which gives me the energy to go the extra mile. I don't always make it, but I know that I could not put in the hours and energy that I do unless I was a true believer. I would have been eaten alive by my fears and doubts and slunk back to an office job with my tail between my legs. Passion has kept me going through some of the darkest moments along the journey so far.It can be detrimental to sustain that kind of pace, so knowing your own limits is important, but that said, as a drum of backup fuel there is, in my estimation, simply no substitute for passion.
Do You Control Your Passion or Does Your Passion Control You?
I started to talk about this in the previous section and I think it's important to explore the perils of passion as well as the benefits. I come from a long line of extreme workaholics, so maybe there is a genetic predisposition to it – which makes it all the more important to be cognizant of. At three thirty am on a Tuesday night, virtually everyone I know, including my loving and supportive fiancée, is fast asleep, but it's not uncommon for me to sending out emails I didn't get to or trying to make connections among people I met. While passion is the fuel that keeps my personal army marching, I also have to make sure that to step back and remember that even if I'm a living marketing piece for my business, it shouldn't consume my life. It's hard for me to separate the two sometimes but I know that it's not just healthy but imperative to take a personal day from time to time and spend it with friends, with family, outdoors, away from the phone and computer. Life is bigger than what I do, and if I don't take time to remember that, all aspects of my life suffer for it. I'm not saying that I'm any great master at maintaining balance, yet, but I'm striving to get better at it all the time.
Passion and Well Being
If passion is an asset, than it requires proper maintenance. A well managed asset can provide tremendous benefits, but a poorly managed asset can eat time, money and overall physical and mental well-being. When passion burns out, like the fuel that it is, it can leave you more exhausted than before. If relied on for too long, like an adrenaline boosting drug, it can impair and cloud your judgment, make you moody and fickle and end up driving away more business than helps create. As a creative type, almost without exception my best creative “breakthroughs” seem to come between the hours of 2 and 4 am, but I know that if I indulge these too often, I'll end up grumpy in the morning and less than worthless on the phone and at client meetings. So I have to determine when it's appropriate to burn the midnight oil and when it's more valuable to get a solid night sleep. There was a time in my college years when I could pull all-nighters every couple days. More than ten years later, that's just not an option anymore if I want to function more like a human being than the walking dead for a day or two afterwards. Prolonged intensity can mean more than insomnia – it can lead to more serious health concerns. There is sometimes a fine line between passion and mania, but recognizing the difference is crucial.
To quickly sum up my thinking, passion is a complex force, but like the “goodwill” I mentioned at the start of this short piece, it can be an asset if managed properly. It can help inspire clients, prospects and employees, help close a sale and add something unique and powerful to your marketing. If left unchecked though, it can wear you down and become a detriment to your business and well being. As I stated before, I certainly haven't mastered the potential of passion, but I strive not to let it master me, and to remember that as much as I could devote 110% of my time and energy to Chicago Art Leasing, there are other important people and things in my life that require and deserve my attention, focus and passion.
Passion, to my way of thinking, is that inspiration that's both infectious and unmistakable. It generates the kind of genuine happiness that you see in the way someone's eyes seem to glow when they talk about their business – not unlike the way some parents exude happiness when they talk about their children. It's simply impossible to fake. It's also a spare tank of fuel that can allow you to push beyond the point of normal endurance. It's like an entrepreneurs equivalent of a runner's high or some other natural boost.
Like any temporary boost though, it has it's price and it's downsides. And as with any other asset of your business, it has to be managed appropriately, otherwise it can quickly become a drain on both monetary and temporal resources.
While it may not be able to pin down an exact dollar amount or equation for evaluating Passion, I think it can still be examined as competitive edge and a true business asset. I've explore the role passion plays in just a few examples below:
Passion and Creativity
This could easily be an entire piece on its own, but I just want to scratch the surface here. As an artist and someone in the art business, I've learned that what a client is often seeking when they are shopping for art is none other than the artists' passion made manifest. I continue to be surprised by the artworks my clients and friends are most moved by, and it's often not the happier, brighter pieces. In my own case it's been pieces like “Angels of the Silences,” “Shades of Regret” and “The Barker” that tend to pique peoples interest. (Note: I always qualify any conversation regarding my own work by stating that I am certainly the weakest of the artists I represent). All of these artworks have something in common beyond just being some of my darker work – they sprang from some of my most emotionally turbulent times and viewers tend to pick up on that. I asked one client why he was drawn to a particularly dark piece and he replied, “when I want a great piece of art, I look for something that makes me feel something important to feel, which is not always happiness. I want the blood, sweat and tears.” What he wants, in short, is the passion of the artist.
Passion and Networking
Sometimes it's easy to spot the inspired, passionate entrepreneur in a networking group. Maybe she's the one talking a mile a minute, gesticulating madly before, with an ear to ear grin, she delves back into the land of ideas. Even though you may wonder for a moment is she will start speaking in tongues, you find yourself listening to what she's saying anyway. And what she says tells a story that you connect with. It fires you up and opens new vistas of possibilities – new services, improvements to vendor relations, innovative potential collaborations... And before you know it, you're being ushered out of the event, which ended an hour ago. That's entrepreneurial passion and it has the power to transfix. These people stand out in a crowd and inspire you not only to broaden and challenge your thinking, but more specifically, to do business with them. In the world of networking where everyone sometimes seems to be marketing everything, passion is sometimes the differentiator.
A great example of this is in my opinion is someone like Jonny Imerman, Founder of Imerman Angels. As a cancer survivor he has discovered his personal mission of connecting other cancer survivors around the globe so that no one has to face there experience alone. His passion for what he does informs all aspects of his business and makes it impossible not to share his excitement and enthusiasm. He is always upbeat and even if you just exchange three words with him, he's one of those people with the uncanny ability to make you feel like you just spent half a day making meaningful conversation.
Passion and Sales
As with the above, there have been a number of meetings with property managers, developers and others, where I see the effect of passion. When I show up to the meeting, I own the idea I'm bringing with me, but by the time I leave, the people I've been talking with own the idea and want to run with it. I can think of one example in particular where I went to meet with a large real estate developer and talked about collaborative opportunities with their senior team. I could tell when my associate and I sat down that this would be a tough crowd, so I decided not to go slide by slide through the presentation I had prepared. Rather, I wanted to engage them, so I asked each of them to name three things they wanted me to talk about and I would focus on those. If I recall correctly, delivery, cost savings and marketing value were the big three items, so I started with the cost savings. As I went through real, tangible savings I could generate for them by leasing artwork versus purchasing it, I felt them start to thaw. By the time I got to delivery and showing examples of our reliability, they were lukewarm. It was marketing value that really won the day and I could see their eyes starting to light up. They started asking questions and putting fort their own ideas and suggestions. I don't think I ever finished all the points I wanted to hit, but it didn't really matter. We easily ate through the half hour I had allotted for questions and could have gone on longer. They wanted to start drafting up plans and time lines right away. By the time I left their office, they had a list of deliverables that they had set for themselves and they fully owned the idea, wanting to share their idea with the entire global organization. It was a spectacular experience and a great example of how passion and sales can align to generate business. By catering your presentation to your clients and engaging them, you can make your passion an asset and turn potential clients and prospects into fans and advocates.
Passion and Execution
It's one thing to be passionate about all the ideas and opportunities on a call or at a meeting, but when it comes to delivery, it's easy to drop the ball. I do a few things to ensure that I remain as passionate about delivering and executing as I do about marketing. For me, one of the greatest feelings that comes with this job I've invented is taking pictures of the final result – a home, office or lobby with truly unique and suitable artwork on the walls. No matter how large or small a project, I look at each individual scenario to be the best one yet in terms of aesthetic results and client satisfaction. I also create case studies out of every project and try to follow up regularly not only for client quotes and testimonials, but to make sure that the ongoing satisfaction is as high as possible and that any potential issues are addressed rapidly and in a manner that keeps clients excited about what we are doing. Going into my business, I expected to have a renewal rate for leased artwork of roughly 50% at best. Going into our third year now, retention is higher than 90%. I attribute this largely for the passion that goes into execution and delivery.
Passion and Fortitude
Endurance, pushed to its utmost extreme, at some point simply gives out. You hit a point where you can go no further. Maybe you've knocked on 50 doors, make 150 calls and have two networking events to get to yet that day, and you simply don't feel like you can keep up the pace. Especially if it's been that way for weeks, or months. Or years. So what is it that allows you to take a 20 minute power nap, visit the events and then follow up with the people you met before you finally collapse for the night? I believe it's passion. At HotJobs, I remember one of the many quotes that Richard Johnson would use, that the superstars are the ones who go out every day and give 100%, on the days when they didn't even feel like getting out of bed. Passion can carry you through the final lap when every fiber of your being is crying out that you've had enough.
Now, maybe there are some people who are simply built with an extra cylinder and don't tire or need to sleep and eat and relax like the rest of us. I am certainly not one of these and I rely heavily on the passion for what I am doing and the commitments I have made to my clients and artists, which gives me the energy to go the extra mile. I don't always make it, but I know that I could not put in the hours and energy that I do unless I was a true believer. I would have been eaten alive by my fears and doubts and slunk back to an office job with my tail between my legs. Passion has kept me going through some of the darkest moments along the journey so far.It can be detrimental to sustain that kind of pace, so knowing your own limits is important, but that said, as a drum of backup fuel there is, in my estimation, simply no substitute for passion.
Do You Control Your Passion or Does Your Passion Control You?
I started to talk about this in the previous section and I think it's important to explore the perils of passion as well as the benefits. I come from a long line of extreme workaholics, so maybe there is a genetic predisposition to it – which makes it all the more important to be cognizant of. At three thirty am on a Tuesday night, virtually everyone I know, including my loving and supportive fiancée, is fast asleep, but it's not uncommon for me to sending out emails I didn't get to or trying to make connections among people I met. While passion is the fuel that keeps my personal army marching, I also have to make sure that to step back and remember that even if I'm a living marketing piece for my business, it shouldn't consume my life. It's hard for me to separate the two sometimes but I know that it's not just healthy but imperative to take a personal day from time to time and spend it with friends, with family, outdoors, away from the phone and computer. Life is bigger than what I do, and if I don't take time to remember that, all aspects of my life suffer for it. I'm not saying that I'm any great master at maintaining balance, yet, but I'm striving to get better at it all the time.
Passion and Well Being
If passion is an asset, than it requires proper maintenance. A well managed asset can provide tremendous benefits, but a poorly managed asset can eat time, money and overall physical and mental well-being. When passion burns out, like the fuel that it is, it can leave you more exhausted than before. If relied on for too long, like an adrenaline boosting drug, it can impair and cloud your judgment, make you moody and fickle and end up driving away more business than helps create. As a creative type, almost without exception my best creative “breakthroughs” seem to come between the hours of 2 and 4 am, but I know that if I indulge these too often, I'll end up grumpy in the morning and less than worthless on the phone and at client meetings. So I have to determine when it's appropriate to burn the midnight oil and when it's more valuable to get a solid night sleep. There was a time in my college years when I could pull all-nighters every couple days. More than ten years later, that's just not an option anymore if I want to function more like a human being than the walking dead for a day or two afterwards. Prolonged intensity can mean more than insomnia – it can lead to more serious health concerns. There is sometimes a fine line between passion and mania, but recognizing the difference is crucial.
To quickly sum up my thinking, passion is a complex force, but like the “goodwill” I mentioned at the start of this short piece, it can be an asset if managed properly. It can help inspire clients, prospects and employees, help close a sale and add something unique and powerful to your marketing. If left unchecked though, it can wear you down and become a detriment to your business and well being. As I stated before, I certainly haven't mastered the potential of passion, but I strive not to let it master me, and to remember that as much as I could devote 110% of my time and energy to Chicago Art Leasing, there are other important people and things in my life that require and deserve my attention, focus and passion.
Thursday, March 10, 2011
The Best Business Decision I Made in 2010:
Keep Bleeding
I recently read a great newsletter article from my friends at Anchor Advisers asking entrepreneurs and business owners to share the best business decision they made in 2010. This really got me thinking, and remembering all too viscerally, some of the moments of doubt and terror that I faced in 2010 – Chicago Art Leasing's second year in business. There's probably truth to the notion that it's easy to know the right choice to make – it's always the hardest one. If I had to sum it up, I would say the best business decision I made was to staunch the flow of cash as much as possible and to keep fighting; keep bleeding.
January of 2010 was unquestionably one of the darkest and most difficult months I've lived through. Our first year in business I had survived more off of savings than off of business revenue. By January of 2010 I was coasting on fumes. The projects were coming in but not as quickly as the bills. In an act of desperation I had taken a second job as a dishwasher/bar back at a local pub to make ends meet. I would spend the days meeting with clients and making calls and the nights lugging kegs and wiping counters. It was a humbling experience to say the least. Some nights I would be so exhausted and frustrated that I'd walk home in tears, cursing the choices I had made. But it was a means to an end and even though I thought about closing things down almost every day and retreating to the security of a corporate job, I kept going. Every night I would walk North on Ravenswood and I would pass a place called Thresholds. I didn't even know what they did until recently (a charitable organization, they provide mental health services to those in need), but every time I passed the front of that office I would ask myself if I had reached my own threshold – if I was ready to throw in the towel and call it quits. And every time I would convince myself that I could keep going just a little bit longer. It took a toll on my relationships and my mental and physical well-being, but I pushed on.
In March that year we landed the consulting contract that saved the day – a relationship that has continued now for over a year and may go another 12 months or longer. In May the art leasing and sales projects started coming in faster and the economy showed some signs of recovery. Since January of 2011 we've been beating my projections – closing a new project almost weekly, with new clients including huge global companies. It looks like things have turned around, although there's still a long way to go to build the sort of organization I have in mind. I stayed the course and continued to bleed when most sane people would have walked away. It was far more of an endurance fight than a chess match, but we made it through that particular time. I'll never forget how challenging it was and I work feverishly day and night now to prevent ever being in that situation again; it seems like we've come a million miles from that point but I still shudder when I think about it. I hope I would have the courage to make the same decisions again if I had to, but I wouldn't bet on it. I'll let you know once I'm done receiving the financial transfusion.
January of 2010 was unquestionably one of the darkest and most difficult months I've lived through. Our first year in business I had survived more off of savings than off of business revenue. By January of 2010 I was coasting on fumes. The projects were coming in but not as quickly as the bills. In an act of desperation I had taken a second job as a dishwasher/bar back at a local pub to make ends meet. I would spend the days meeting with clients and making calls and the nights lugging kegs and wiping counters. It was a humbling experience to say the least. Some nights I would be so exhausted and frustrated that I'd walk home in tears, cursing the choices I had made. But it was a means to an end and even though I thought about closing things down almost every day and retreating to the security of a corporate job, I kept going. Every night I would walk North on Ravenswood and I would pass a place called Thresholds. I didn't even know what they did until recently (a charitable organization, they provide mental health services to those in need), but every time I passed the front of that office I would ask myself if I had reached my own threshold – if I was ready to throw in the towel and call it quits. And every time I would convince myself that I could keep going just a little bit longer. It took a toll on my relationships and my mental and physical well-being, but I pushed on.
In March that year we landed the consulting contract that saved the day – a relationship that has continued now for over a year and may go another 12 months or longer. In May the art leasing and sales projects started coming in faster and the economy showed some signs of recovery. Since January of 2011 we've been beating my projections – closing a new project almost weekly, with new clients including huge global companies. It looks like things have turned around, although there's still a long way to go to build the sort of organization I have in mind. I stayed the course and continued to bleed when most sane people would have walked away. It was far more of an endurance fight than a chess match, but we made it through that particular time. I'll never forget how challenging it was and I work feverishly day and night now to prevent ever being in that situation again; it seems like we've come a million miles from that point but I still shudder when I think about it. I hope I would have the courage to make the same decisions again if I had to, but I wouldn't bet on it. I'll let you know once I'm done receiving the financial transfusion.
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