THE BUSINESS OF DANCE SERIES

Article One: What is Business?

By Alexandra King

AA, Small Business Administration and 44 years of business experience.

This series will explore dance through the lens of business. Let’s start with the basics!

Business is the activity of exchanging goods and/or services for money and/or consideration, (payment or reward). Business is a vital and complex system  which includes marketing, finance, production and administration. It contributes to society by delivering needs and wants to the publica nd so drives economies.

Businesses can be categorized in various ways, including by:

• Size:

Small businesses, (1-50 individuals) -  medium-sized businesses, (50-250 employees) or large corporations, ( 250+ individuals).

• Structure:

Sole proprietorships, Partnerships, Limited Liability Companies (LLCs), Corporations, , etc.

• Purpose:

For-profit (aiming for profit) or non-profit (focused on a social or charitable mission). 

• Industry:

Retail, manufacturing, technology, arts and entertainment, etc. 

Supply and Demand

Business is founded on the simple principle of supply and demand. The public needs and wants, or demands a product or service and the business supplies it.  Demand is more-often-than-not created by marketing and bringing awareness of a (product or service) to the public’s attention and inspiring a demand. Example:  a new cereal, drug or fashion style.

'Being poor is at the heart of non-profit businesses. And while, in a capitalist society poverty is often stigmatized, it should not be forgotten that people who do not work for profit or to gain wealth are the heroes and saints of any society.

They forego wealth to make the world a better place.'

Profit versus Non-Profit

If the demand and resulting income stream is sufficient to meet and exceed the needed threshold to survive financially, and the business owner(s) take home more than a salary, the business is known as a “For Profit” business.  However, if a business does not earn enough to support itself and relies on donations to survive, it is called a Non-Profit, or 501©3, (the IRS’s designation of a business that cannot and does not earn more than what it costs to break-even). Examples: Education, the Clergy/Religion and the Arts and Entertainment.

The Art of Giving

While demand is universally built-in to needed and wanted products and services,  such as medicine, food and housing, the arts, religion and education are defined as non-essentials for the society in general. This is because the businesses in these industries usually supply products and services to small and/or marginalized segments of society, and so do not garner sufficient demand from the general public to support their business. These Non-profit businesses therefore, rely on financial contributions to sustain themselves. Individuals and groups that support non-profits are called Donors, (also known as angels, benefactors, philanthropist, contributors).

Donors are individuals, private foundations and government organizations that contribute  funding to non-profits so they can survive. Donations can be a one-time event or, ongoing throughout the life of the non-profit. If the donor gives on an ongoing basis, he/she/it is called a Sustainable Donor.

Sustainable Donors are individuals or organizations that provide consistent, ongoing financial support to a nonprofit, ensuring a stable and predictable revenue stream. Donations can be a small as $25.00 or as large as $25,000,000. The bottom line is that the business can pay salaries to the people in the business, but no one is getting rich from the business. Non-profit businesses only ask for and use what is needed to break-even.

What's In It for the Donors?

Donors contribute to non-profit groups for two reasons: 1. They get a tax-deduction and 2. Their personal mission, purpose or passion aligns with the non-profits mission, vision and contribution to society. They work in sync with non-profits to support their work and in turn improve the world we all live in.

Dancers as Non-Profits

Dancers who charge money to perform, teach or produce shows are expected to be professionals. They must be skilled in their art, in business in general, and they must conduct themselves in a manner that is competent, reliable, and respectful in every aspect of their business.  However, professionalism is a double-edged sword: You have to qualify to be a professional, (someone who makes money in business) while not expecting to earn enough income to survive through that business. This is a conundrum: If qualified artists are (mostly) poor, are they really professionals?

Isn't making money what defines a professional? The answer is emphatically, yes and no! Qualified artists who have the artistic and business skills, get income from donors as much or more as from their work. This symbiotic relationship between non-profit businesses and their donors is how the arts, entertainment, churches, colleges and other social and cultural groups stay alive.

Being poor is at the heart of non-profit businesses. And while, in a capitalist society poverty is often stigmatized, it should not be forgotten that people who do not work for profit or to gain wealth are the heroes and saints of any society. They forego wealth to make the world a better place.