STRATHSPEY PLACEStrathspey Place to Close?

AGENDA

• Why Are We Here?

• Why Does Strathspey Place Need Immediate Financial Support?

• Financial Presentation – Current Fiscal Year Budget OverviewFixed Monthly CostsSample Show Budgets – Rental & SPA Presents

• Strathspey Place DOES Have a Plan!

• Strathspey Place’s “Ask”

• Question Period

WHY ARE WE HERE TONIGHT?

• Strathspey Place is in dire financial shape- we need your HELP! We need your help now AND will need it every year.

• Strathspey Place cannot continue to exist under the current financial situation.

• Strathspey Place does not have enough Cash Flow to continue to pay Artist Deposits or Fixed Expenses.

WHY IS STRATHSPEY IN THIS SITUATION?

• Strathspey Place Theatre is a BUSINESS and deserves to be managed like one. A more focused Business Approach is needed.

• Inadequate Revenue Generation – Inadequate focus on Marketing, Programming and Planning

• Historical Absence of Long Term Professional Fund Raising Plan for Long Term Sustainability

• Employing only one staff member does not allow for productivity or success

WHAT DOES STRATHSPEY PLACE NEED MONEY FOR?

• Strathspey Place needs CASH FLOW that will allow the organization to pay Artist Deposits when shows are booked up to a year in advance.

To date, these UP FRONT DEPOSITS range from $600 - $7,500 per

show.

• Strathspey Place needs CASH FLOW that will allow the organization to pay both CURRENT & PROPOSED STAFFING COSTS.

FINANCIAL OVERVIEW – 2015/16 BUDGET

Show Revenue $138,325Show Expenses $132,652Gross Margin $ 5,673

Other Revenue $ 26,000

Operating Expenses:Wages and Benefits$36,740Administration Expense $13,416Advertising/Promo $ 2,250

Net Income (Loss) ($20,733)

CURRENT FIXED MONTHLY COSTS

• Salaries & Contracted Fees $ 3,220.00

• MERCs $ 227.00

• Insurance $ 234.66

• Telephone $ 86.04

• Credit Union Fees $ 20.00

• Total Fixed Monthly Costs $ 3,787.70

SAMPLE SHOW BUDGETRENTAL SCENARIO – NP

“RANGE”

Theatre Rental: $760 - $1200

SPA recoups some expenses such as a portion of

advertising, SOCAN fees and some credit card fees. SOCAN

and CC fees are variable, depending on the show.

Fixed Expenses - SPA

Technical $400

Advertising $100

Box Office $ 80(3PM – 10PM)

Janitorial $100

TOTAL EXPENSES - $680

Net Profit

$80 - $1,000

Revenue Received by SPA

SAMPLE SHOW BUDGETSPA PRESENTS SCENARIO #1

ARTIST FEE $6000

Revenue Received by SPA

Based on 325 tickets sold at $35 and 35 tickets sold at $40

&

Artist Fee of $6,000

$11,375 + $1,400 = $12,775

Expenses – SPA

Artist Guarantee $6,000

Accommodations $1,200

Advertising $ 500

Catering $ 400

Technical $ 500

Janitorial $ 100

HST $ 450 (50%)

SOCAN $ 385

Credit Card Fees $ 510

Box Office Fees $ 160

Total Expenses $ 10,655

Net Profit

Total Revenue $12,775

Less Total Expenses $ 10,655

Net Profit $ 2,570

*NOTE: Artists Complimentary Ticket Requirement can at times be upwards

of 25 tickets – This reduces SPA’s ability to earn revenue on those seats:

SAMPLE SHOW BUDGETSPA PRESENTS SCENARIO #2

ARTIST FEE $10,000 PLUS “SPLIT”

Revenue Received by SPA

Based on 450 tickets sold at $35 and 30 tickets sold at $40

&

Artist Fee $10,000 & 80/20 Split

$15,750 + $1,200 = 16,950.00

Expenses - SPA

Artist Guarantee $10,000

Accommodations $1,200

Advertising $ 500

Catering $ 600

Technical $ 500

Janitorial $ 100

HST $ 750 (50%)

SOCAN $ 580.50

Credit Card Fees $ 510

Box Office Fees $ 160

Promoter Profit (15%) $ 1,500

Total Expenses $ 16,400.50

Net Profit

Total Revenue:$ 16,950.00

Less Total Expenses:$ 16,400.50

Net Profit:$ 549.50

80% Split to Artist: $439.6020% Split to SPA: $109.90

Total SPA Profit:$1500 + 109.90 = $1,609.90

SAMPLE SHOW BUDGET – SPA PRESENTS - LOSS SCENARIO

Revenue Received by SPA

Based on 40 tickets sold at $35 ticket & 15 tickets sold at $40

&

Artist Fee of $3000

Revenue:$1,400 + $600 = $2000

Expenses SPA

Artist Guarantee $3,000

Accommodations $ 600

Advertising $ 500

Catering $ 400

Technical $ 500

Janitorial $ 100

HST $ 225 (50%)

SOCAN $ 60

Credit Card Fees $ 120

Box Office Fees $ 160

Promoter Profit (15%) $ 300

Total Expenses $ 5,965

Net Loss

Total Revenue:

$ 2,000

Less Total Expenses:

$ 5,965

Net Loss:

($ 3,965)

THERE IS A PLAN…..

STRATEGIC PLAN 2015-2018Several Critical strategic issues along with specific action plan items have been identified by SPA Board of Directors and Staff – these will

allow SPA to grow and succeed once again in areas of:

• Program Development

• Marketing

• Human Resource Capacity

• Financial Stability

• Youth Mentorship Programming

• Community Partnerships

HOW WILL SPA ADDRESS THE PROBLEM• PROGRAM DEVELOPMENT:

CRITICAL Analysis to Annual Schedule of Programming -

ONLY book acts or artists that dictate NEAR SELL OUTS (appropriate mix between local productions and block-buster events)

• HUMAN RESOURCE CAPACITY:MARKETING MANAGER - Strathspey Place has recently accessed EXTERNAL funding dollars through Provincial Government to hire a Marketing Manager –

This position is TIME SENSITIVE and SP needs to ensure its ability to keep this person on staff following the end of March, 2016, when the funding ends. ($2400/month Proposed Staffing Cost)

ADMINISTRATIVE ASSISTANT– Strathspey Place needs a PART-TIME Administrative Assistant to run the box office and offer more consistent hours. ($1400/month Proposed Staffing Cost)

• RUNNING STRATHSPEY PLACE AS A BUSINESS:

Having these two positions will allow your ED to focus on our strategic plan and the big picture - running this theatre like a business!

• PROFESSIONAL FUND RAISING INITIATIVE:

ACOA support – Time Limited Opportunity to work with Professional Fund RaiserLinda Crockett

*STEP 1 - Professional Fund Raising Initiative TONIGHT: SPA must Walk Before We Can Run…………..

*STEP 2 – Professional Fund Raising Initiative Long Term:Endowment Fund for Long-Term Sustainability…………….

STRATHSPEY PLACE ASK TO YOU• Anyone and Everyone who is interested in seeing Strathspey Place continue to

operate as a Community & School theatre is urged to make a donation.

• Pledge sheets have been distributed and the ask will continue online via www.strathspeyplace.com and SPA Facebook Page.

• Strathspey Place needs financial support from Individuals, Families, Community, Businesses, Corporations and Government, so PLEASE help SPA to keep this humble community icon ALIVE.

• Donations can be made :• Online at www.strathspeyplace.com• E-mail Transfer to admin@strathspeyplace.com , using “strathspeyplace” as the

answer to the security question.• In Person at the Box Office• At any location of East Coast Credit Union (Account Number - 73155026)• Telephone 902-945-5300 and make a donation over the phone• Mail your donation to P.O. Box 235, Mabou, B0E 1X0

Questions

And Thank You Very Much: