Our biggest savings of the year
The “ArtSphere” was registered DBA jointly in the names of Paul and Hannah Nash several years ago.
The ArtSphere is located on the corner of Main and 1st Streets in Birmingham, AL. facing the town’s public landing. Approximately 75 students, mostly adolescents, are signed up for lessons at $10/hour which includes materials. The recently increased facilities have made possible an increase in the number of students. Lessons are offered a total of 49 hours weekly. Maximum capacity is considered eight at any one time, which works out to a possible sales potential of 392 learning hours/week. Limiting to eight students at any one time allows sufficient room for each student to sit or stand comfortably at an easel.
As penetration into the 9 A.M. to 3 P.M. market increases, Hannah will give up her teaching position in a pre-school and concentrate on the ArtSphere. Hannah also paints portraits on a contractual basis for customers (approximately $800 per month). This activity will continue unchanged, but will take place on weekends when classes are not offered. Paul Nash’s artwork will continue as well, also with concentration on weekends.
Saturdays and Sundays are when students’ and owners’ artwork is displayed in the Gallery; buyers and interested potential students are encouraged to come in the Gallery, have a cup of espresso, and watch an artist at work.
2.1 Company Ownership
The ArtSphere is registered DBA jointly under the names of Paul and Hannah Nash. Earnings are taxed according to the personal tax rate schedule.
Paul Nash graduated with a BFA degree from Boston University in 1977. He has been painting since 1970 and teaching since 1980. His work has been featured at many group shows and sometimes at one-man shows such as at the Court Street Gallery in Bessema. Paul has sold seven pieces of his artwork during the past 12 months. Paul is also the owner of “ArtSphere Productions” located in Beverly. “ArtSphere Productions” is involved in film/video production and editing.
Hannah Rogerson Nash graduated from Bessemer High and attended Bessemer State College, Rhode Island School of Design. She has extensive experience in painting, specializing in portrait and still life. She has sold 11 pieces of her work during the past 12 months. Her work is known under her maiden name Rogerson. Her teaching skills are widely recognized, having taught pre-school in Europe as well as locally. She is presently employed at the Orchard School in Birmingham, AL. where she has been a teacher since 1993. In addition, Hannah worked from 1984-1993 as a self-employed photo retoucher.
2.2 Start-up Summary
Our planned expenses for our first full year are shown in the following chart and table.
|Start-up Expenses to Fund||$2,065|
|Start-up Assets to Fund||$6,200|
|Total Funding Required||$8,265|
|Non-cash Assets from Start-up||$6,200|
|Cash Requirements from Start-up||$0|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$0|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$8,265|
|Loss at Start-up (Start-up Expenses)||($2,065)|
|Total Capital and Liabilities||$6,200|
|Legal (DBA Register)||$25|
|Total Start-up Expenses||$2,065|
|Other Current Assets||$0|
2.3 Company Locations and Facilities
The ArtSphere is located on the corner of Main and 1st Streets in Birmingham, AL. Total square footage comes to 787, with two doors onto the street. The facilities at this location are leased from the owners, John Smith and Andrew Abbot, at a monthly rate of $1,225. Electricity runs about $50/month, and gas about $600 annually. The lessors have indicated their intentions to sell the property and have entered into negotiations with the owners of the ArtSphere. The asking price is $148,000. The unit is one of six units of 1st Street Wharf Condominium Trust which has recently undertaken an extensive condition-of-building study prepared by professional consultants. Current plans are to renovate the 1st Street side of the building including new siding, new corner boards, and paint. The Trustees of FSWCT are committed to a high standard of maintenance.