Start-Up Basics | AACT

Start-Up Basics

Great Beginnings
A step-by-step approach
The information below is a brief overview of the main issues you need to address when starting a theatre company. Adapted from an article by John Warren, Artistic Director, Unconditional Theatre, and used with permission of Theatre Bay Area. Starting a growing company

1. Decide on a collaborative structure
Do you want to run it as a benevolent dictatorship? A cooperative? Or something in-between? How will you choose projects? Who will help with the non-artistic administrative work? Be very clear about the decision-making structure and lines of responsibility.  A good place to begin is with the bylaws of other theatre companies. (For examples, see menu at right.)

2. Develop a mission statement
This should be your company's identity, and the litmus test by which you consider future projects. Make it as broad as possible, while still identifying a unique vision (see menu at right).

3. Create a name and a look
Brainstorm ideas on names for your company. Develop a logo and an identifiable "look" for your publicity, etc. Check to make sure that your proposed name is not already in local use.

4. Register your company name with the local authorities
In order to become a registered business and protect the name that you have chosen, you must register with your city. You may have to register as a D.B.A. ("Doing Business As"), effectively registering it as an alias for one or more individuals in the company. Check to see where this is done in your area. After filing your name, you must announce the creation of your business in a local paper. 

5. Open a bank account
The best way to keep track of your company's financial situation is to open a separate bank account. It also enables you to accept checks written to the company's name. You must be registered with the city in order to open an account under a D.B.A. name. Many banks are offering fee-free everything to business customers, so shop around.

6. Sign up with relevant service organizations
Join AACT, your local theatre alliance, your state or regional organization. This gives you credibility, and access to lots of ideas and services. Consider joining a local service organization such as Rotary and the Chamber of Commerce.

7. Decide on profit/nonprofit status
This is one of the most difficult decisions to make, if you choose to go nonprofit, there is bureaucracy and paperwork to navigate. The main advantage is qualifying for grants and special discounts. Foundations can legally give grants only to nonprofjts, and individual donors can write off nonprofit contributions on their taxes. However, most foundations give only to companies with a proven track record. Be realistic about whether the effort is worth it. You can always wait and turn nonprofit in the future.  (Fiscal sponsorship is a popular option for small companies, whereby they can apply for grants and access bulk mail rates through a separate nonprofit umbrella organization Often these organizations take a percentage of grant income in return.)  Click here for more on incorporating as a nonprofit organization.

8. Make funding decisions
Will most of your budget depend on grants? The kindness of your family? Dues paid by company members? Earned income such as merchandise sales, auctions, and theme parties? Each has its advantages and drawbacks. Making decisions on funding sources and likely amounts of income will help determine how ambitious your plans should be. For more help, visit the Foundation Center website.  The Center helps non-profits and individuals find money. 

9. Strategize potential non-production activities
Doing a show or two a year is enough for some groups, while others like to maintain a continual presence to increase visibility and develop audiences. Examples of additional activities include teaching classes, hosting staged readings, and engaging in various forms of community outreach.

10. Create a database
Nothing takes more time than repeatedly writing out addresses on postcards. There are lots of good database programs out there that allow you to print labels in a matter of minutes. They can also help create and maintain separate lists, such as season ticket holders, donors, general mailings and press contacts. 

11. Think About Your Audience
Who will come see your plays? How are they likely to learn about them? How do similar companies promote their work? Consider doing a list exchange or purchasing mailing lists from companies with audiences you would like to attract. And, of course, create a website and a company email account.

12. Work Backwards
Put your first production date far enough into the future that you have time to lay some groundwork, You won't do your best planning under the deadline of an approaching opening night.

13. Join AACT
Membership in the American Association of Community Theatre links you with companies all over the United States and beyond.  You'll get the benefits of networking with thousands of other theatre people, and theatre companies of all sizes, in all kinds of communities.  You'll also have access to the members-only pages of this website, including proven ideas for fundraising, choosing a season, publicity and marketing, online member roundtables, discounts, and much more. Click here for more on the benefits of AACT membership.


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