1. Tony Hill Director MOSI

2. GENERATING INCOME THROUGH DIVERSIFYING YOUR INCOME STREAMS

3. ASSESS WHAT YOU ARE DOING NOW NOW DO IT BETTER! FIRST STEP

4. NOW CONSIDER OTHER REVENUE STREAMS SECOND STEP

5. Think commercially about your Museum: -Retail -Catering -Donations -Membership & Sponsorship Explore & exploit opportunities to generate income from: -The People -Your Collections -Your Building -The Brand WHAT TO CONSIDER

6. WHAT DOES THINKING COMMERCIALLY MEAN? A change of mind set/culture is required: “Not for profit” sets the wrong tone Think “not for distribution” Thinking commercially is not a crime Encourage staff throughout the organisation to recognise the importance of every penny secured to ensure a surplus is generated Train and support staff to sell!!!

7. RETAIL Review all lines: Dispense of poor selling ones Renegotiate margins with existing suppliers Don’t tie up cash in stock (use ‘Just in Time’) Identify unique lines that can carry higher margins (local artists, license deals, etc) Ensure that all retail ties in with your brand Look to develop a buying group with other like minded organisations

8. CATERING Working with a concession holder: Ascertain whether you can renegotiate your contract to improve margins Look to secure capital investment from them to improve your offer Move overheads from your P&L into your concession holder’s -Electricity, gas, water -Staff

9. COMMERCIAL EVENTS Consider yourself not just as a Museum but as a venue: -Music and comedy nights -Lectures, debates, book signings -Adventure activities & corporate team building Target new demographics Tailor your retail offer (relevant books, CD’s etc) Keep catering operational to maximise possible profit (cash bar) People look for unique venues – what makes you different?

10. COMMERCIALISE DONATIONS Visibly recommend the level of donation per person Put donation boxes next to shop tills to capture change from sales transactions Give people the chance to gift aid to secure that 28% from Government Show people what their money is going towards Consider your audience when designing and creating donation boxes tie into the brand

11. MEMBERSHIP SCHEMES If you have one: get members onto Direct Debit If you don’t: set up a simple scheme to tie people into your organisation as a start point In both instances ensure that the cost of what is proved is fully realised and accounted for!! Run it as a business unit

12. SPONSORSHIP & CORPORATE MEMBERSHIP Identify your sponsorship opportunities: -Temporary exhibitions and events -Education projects and outreach work -Naming rights for rooms or galleries Clarify target companies & organisations: -Examine their current CSR initiatives -Do they fit your own brand values and remit? Be flexible with the packages you can offer: -Price ranges, cash or in-kind -Consider benefits – direct staff involvement, branding, gallery hire, VIP events

13. INDIVIDUAL GIVING SCHEMES Cover all possible bases: -Online donations -Are you set up to accept a gift of shares? -Can you advise on legacy enquiries? -Gifts in memory Be creative in what people can support. What’s unique to your organisation? -‘Adopting’ collections objects -Sponsoring seats, benches, areas of your site -Mementos – flooring, bricks, slates etc -Bundle together package experience days

14. OTHER OPPORTUNITIES: EXPLORING & EXPLOITING Investigate opportunities thoroughly Be honest/realistic with projections Conduct full cost analysis Be true to your brand Don’t overstretch the organisation

15. PEOPLE Can you hire out staff with specialist or in-demand skills? (eg. local councils often need conservation; is this where you take over the role for a fee?) Being paid for talks and presentations (both staff and volunteers can deliver here) Consultancy (when you have down-time for sections of staff, don’t lay off sell the skill) Specialist training courses or day events (lots of people would love to learn new skills; conservation, lime plastering, train driving, etc)

16. BUILDINGS Do you have space you don’t need that could be leased? Could you utilise your buildings for advertising opportunities (poster sites, banners etc)? Are there companies who want to do sampling of products (drinks and sweets company trials)? Credit cards selling to your audience (use the footfall) What can be done out of hours (sleep-overs, Valentines Day dating events etc)? Affiliate marketing (Tesco, AMEX, etc)

17. COLLECTIONS Collections can be loaned out at a price (normally as part of the Corporate Membership package) Adopt an object (especially if conservation is required, therefore regular updates can be given) Images library sales can be lucrative (set up deal with Getty Pictures or the like) Photographic special events giving unique access to items as photographic subjects: If you have an in- house photographer they can offer tips/advice at a price Behind the scenes tours (paid for)

18. BRAND Understand what your Brand stands for How the elements of the collection enhance or endorse it Look to how you would merchandise it Pencils, pens & note books are fine but…… Look for collection items, themes, ideas that bring your brand to life Find appropriate manufacturers to produce merchandise under license eg. do you have unique pattern prints that can be converted into wall paper prints or bedding? (V&A are masters at this)

19. CROSS SELLING Internal: Repeat visits get discounts after X number of visits Create bundles from rides, events, tours, etc Use sales in one area to drive sales into others External: Link with transport partners (your local tourism board can help you) Partnering with other attractions adds a benefit for both parties (cinemas, museums, galleries, football clubs) Create offers with local businesses (restaurants, shopping centres, etc)

20. SUMMARY Don’t be frightened to be commercial You must be true to your brand Be prepared for culture change and support your staff It not rocket science Don’t over stretch the organisation Evaluate all of the costs and be cautious with return projections Look for partners

21. THANK YOU QUESTIONS?