Arts organization is not a sales company or an advertising firm. It is a very different and specific form of business that requires producing unique and completely stunning masterpieces instead of selling everyday goods and objects. Arts businesses circulate within the current market system. They are influenced by the demand and supply, though this is not a consumers demand. Arts provide inspiration and pleasure but only to those who understand it. We cannot precisely count the risks of a new studio because they may be huge. That is why many middle-sized and small arts organizations struggle across the US.
Financial hardship is the first and foremost difficulty arts organizations face. Due to the business specifics, it is always difficult to find investors, raise funds, and keep functioning for years. Problems come but do not go fast, and galleries remain suspended in this crisis for a long time.
Successful management of galleries and similar spaces is an art already. People in charge stand under the huge pressure because it is often impossible to accurately anticipate the results of a new business plan in arts. Managers usually need more positive attitude in their work. Arts places are not merely organizations with a questionable future but locations that bring inspiration and content to visitors. That is why managers need to believe that their job is actually valuable.
Back to monetary issues, arts businesses need to consider more serious sources of financial backing. Relying on temporary investors, charity, or government contribution, galleries will never stand on their feet. Managers need to plan their spending yet before the fiscal year begins and think of the projects that can be implemented in a couple of years. And most important, managers need to cut their spending wisely. One cannot climb out of the hardship cutting the number of shows and works. Instead, there are some routine everyday expenses from which art organizations can refuse.