This business is not easy to start and it is crucially important to make the plan and clearly understand how to start a theatre company and how to promote and manage it.

Life is a theatre set in which there are but few practicable entrances.” ― Victor Hugo.

Here are the main steps for starting a theatre company:

1. Decide what type of the theatre company you wish to start.

There are many types of theatre companies, among them Shakespearean companies, puppetry companies and companies that focus on contemporary performance art. Decide if you want to do a variety of styles, or if there is a particular style or genre that you want to focus on. Create a timeline, a budget and a statement or constitution that outlines objectives and procedures. Set realistic goals of how long it will take to prepare for a play and how many you would like to do in a year.

2. Decide whom you will form the company with.

Choose people who will be committed to the project, who are creative and who have a wide variety of skills in theatre. Necessary skills include acting, directing, lighting and scenery, hair and make-up, and costume design. In addition, find people who can manage the administrative and business side of the company. Secure proper contracts if you plan on hiring members of trade unions that represent actors and theatre workers.

3. Find a location where you will have performances and where rehearsals will take place.

There are several options: You can buy or rent a theatre building or convert another type of space, such as warehouses and vacant commercial spaces. Consider renting or borrowing community spaces, such as civic halls or state school auditoriums. Book your shows into restaurants or bars that are also performance venues. Many theatre companies perform outdoors at street fairs, in public parks or on the sidewalk; in these cases, research the laws in your city regarding public performance.

4. Write the business plan for your theatre company

It helps to understand if the idea is efficient from economic point of view, how much money needed for start and growth, special conditions for stability of business.

Apart of the standard for business plan’s content it also should includes:

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.

Examples:

To provide an outlet for creative community involvement, while seeking to produce quality entertainment.

First, to create participatory theatre, to involve a core group of students physically, emotionally, and intellectually with actors prior to performance to present a collaborative effort. Second: to adapt contemporary prose and poetry to inspire the desire to read. Third: to create original material revolving around social issues and values pertinent to the lives of young people.

  • Provide fun and entertainment to the community in a theatrical venue;
  • Express artistic, civic and educational abilities and interests in our community;
  • Provide quality entertainment through theatrical productions;
  • Showcase local talent; and
  • Bring an enjoyable theatrical experience to our community.

Name and 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.

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.

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.

5. Register your company name with the local authorities.

Incorporation means becoming legally registered as a company. You will probably need to do this at some point to attract funding, to limit the chances of becoming personally bankrupt or even just to make sure you are being taken seriously. This is an incredibly simple process if you join the ITC (Independent Theatre Council) who will provide you with template forms to sign. There are various different kinds of company, you will have to choose what suits you best. Gomito is a Company Ltd by Guarantee with no share capital.

  • Private Company Ltd by Shares: Members ‘own’ part of the company, if the business fails the shareholders lose just the value of their shares. Profits can be paid to shareholders.
  • Private Company Ltd by Guarantee: Members do not own the company, if the business fails they can have liability limited to just £1. If the business closes with profit, the profit must be invested in another company with the same aims.
  • Community Interest Companies: Must be for the public benefit, but have a broader definition than a charity. These are often recommended for Social Enterprises.
  • Charities: Not ‘owned’ but in the care of a board of trustees. Lots of theatre companies are charities. Benefits include not paying VAT and claiming Gift Aid.
  • Sole Traders: A business run by one person. There is no legal distinction between the person and the business so all profits are yours. However a bankrupt business means a bankrupt individual.
  • Partnership: the same as a sole trader, but run by multiple people.

6. Licensing.

You no longer need a special licence to stage a live music performance if:

  • it takes place between 8am and 11pm
  • it takes place at a licensed premises or workplace
  • the audience is no more than 200 people

For other public entertainment events the licence is needed.

For example in South Lanarkshire:

  • Public Entertainment Licence – £267
  • Temporary one-day event (application fee) – £237
  • Temporary one-day event (licence fee) – £1189
  • Temporary two-day event (application fee) – £1781
  • Temporary two-day event (licence fee) – £10,049
  • Fairs – £132

7. 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.

8. 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.

9. 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. It is advisable to keep a separate database for general mailings and another for press contacts.

10. 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.

11. Contact with relevant structures.

People who work in the theatre are generally very nice. As long as you aren’t taking up masses of their time you shouldn’t be afraid to contact them with questions. Research on the internet to make sure that you are contacting the most relevant people.

NPOs (National Portfolio Organisations) The Arts Council has funded certain arts organisations to play a strategic role in Artist Development. It is worth looking for the organisations in your area that may run special schemes to support new artists. http://www.artscouncil.org.uk/funding/national-portfolio-funding/

The ITC (Independent Theatre Council) For all things legal and organisational this is a great source of advice. http://www.itc-arts.org/page69.aspx

Collaborating Theatre Companies A network for sharing resources and seeking creative collaborations http://www.facebook.com/#!/pages/Collaborating-Theatre-Companies/196472247031363