dance of the sun - university of montana of the sun curtis wallette (406) ... financial anlysis cash...

2011Dance of the SunCurtis Wallette(406) 699-7884

[email protected]

Zoey McRae(406) 690-1479

[email protected]

02 | 2011 | Dance of the Sun Dance of the Sun | 2011 | 03

3 Executive Summary

3 Business Concept

3 Opportunity

3 Management

3 Financial Outlook

4 Mission Statement

4 Vision Statement

4 Business Description

4 Business Concept

4 Website

4 Gallery/Cooperative/Gift shop

5 Product/Service Description

6 Objectives

6 Strategy

7 SWOT Analysis

7 Industry and Market Analysis

7 Industry Analysis

8 General Market Trends

8 Consumer Profile

8 Demographics

8 Additional Target Market Demographics

8 Psychographics

9 Marketing Plan

9 Cultural /Social Environment

9 Economic Environment

9 Political Environment

9 Competitive Environment

10 Means End Chain

10 Brand Positioning Statement

10 Product Brand

10 Price

11 Place

11 Promotion

11 Sales Strategy

11 Building/Physical Facilities

12 Operations

12 Strategic Alliances

12 Shipping

13 Growth/Expansion

13 Management Profile

14 Advisory Board

14 Contingency Plan

14 Financial

14 Capital Prerequisites to Operations

15 Additional Financing

15 Six Financial Criteria

15 Cash Flow

15 Sales Forecast

17 Example Consignment Contract

18 Letter from President Obama

20 Employee Payroll & Depreciation Expenses

21 Financial Analysis

22 Financial Anlysis

23 Cash Flow Statement - Year 1

24 Cash Flow Statement - Year 2-5

25 Sales Forecasts

26 Income Statement

27 Balance Sheet

28 Amortization Schedule

29 Sources

Table of Contents


Near the Little Bighorn Battlefield in Crow Agency, MT, Dance of the Sun will develop a tourist oriented art co-operative that features a gallery and will be comprised of local established and aspiring artists. These affiliated artists will receive studio space, supplies, pro-motional services, professional guidance, and attractive consignment rates in ex-change for assigning exclusivity rights to Dance of the Sun for all work created in our facility. In addition to a functioning cooperative, Dance of the Sun will also develop a high quality website and act as an international brokerage firm, repre-senting the interests of artists, as well as collectors.

The global market for fine and decora-tive art is nearly $90 billion, with sales of American Indian arts and crafts total-ing over $1 billion annually. Interest in American Indian art is at an all-time high and shows no signs of decreasing in the near future. Led by substantial inter-est generating out of European Union countries like Germany, the international market for American Indian themed goods has been drastically increasing. Furthermore, there is currently a short-age of high quality American Indian art produced by tribes of the Northern Plains, and avid collectors often find it difficult to procure specific mediums typically made by Northern Plains Indi-ans.

Even as we are in the preliminary stages of this concept with minimal effort spent recruiting, dozens of artists have already expressed interest in becoming affiliated with Dance of the Sun. This

includes several internationally renowned artists from the area like Kevin Redstar, whose work is featured in museums around the world, including the Smithson-ian. Co-owner Jon Beartusk has a portrait he created of President Obama hanging in the White House and is currently in the process of having his work displayed in the Smithsonian as well. With internation-al connections already established, Dance of the Sun is poised to make an impact on the international American Indian art market.

The management team will consist of co-owner Curtis Wallette and Zoey McRae. Curtis will have a BSBA from MSU Bill-ings and has a diverse background in busi-ness management. Zoey has two graphic design degrees from Northwest College and will have a BSBA from MSU Billings. Curtis and Zoey are both renowned for their academic accomplishments at MSU Billings.

Conservative sales forecasts in year one assume that we can capture 0.08% of the American Indian art market. Continued success in year two will generate enough revenue to finance a new facility. In year three, we continue to increase our mar-ket share to 0.12% and generate sales of $1,803,530. Years three, four, and five see an increase in net profit to $185,124, $295,668, and $412,447 respectively. All of this is accomplished with minimal start-up financing. Capital investment from the owners totals $75,000, and an equity grant from the American Indian Equity Fund of $7,000 will also be ob-tained.

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Mission Statement

Dance of the Sun is dedicated to providing op-portunity and inspiration for aspiring American Indian artists, while contributing to the econom-ic and cultural prosperity of the people it serves.

Vision Statement

Within five years, Dance of the Sun aims to become a catalyst in the revival of the American Indian culture, sharing its vision by instigating the implementation of additional cooperatives in other regions of the country and strategically establishing galleries near our consumers.

Business Description

Business Concept

A few hundred years ago there were more than ten million American Indians in North America. They inhabited every region of the continent and constituted hundreds of different tribes. While many of the cultures varied greatly from coast to coast, they were all uniquely indigenous to the continent. The preservation of culture was, in many cases, an inherent necessity to the propagation of each tribe. Valuable skills and practices were passed from generation to genera-tion, and as with many cultures, a rich variety of artistic expression was passed along as well. This artistic and creative aptitude is what many American Indians have prided themselves upon for centuries and it is not difficult to find an ample number of talented artists in the heart of Indian country.

Unfortunately, a few of the common obstacles that many American Indian artists and artisans in Eastern Montana face are the lack of studio space and materials, the knowledge of how to effectively market their products, and the limited number of community organizations that are positioned to offer support. As a consequence,

there is also a shortage of international art bro-kers who are able to consistently acquire Ameri-can Indian art created by tribes of the Northern Plains.

Dance of the Sun recognizes an opportunity to enrich and preserve the American Indian culture, while at the same time contributing to economic development on the reservation by providing a forum for both aspiring and established Ameri-can Indian artists to create and sell the products realized through their artistic expression. In or-der to facilitate this process, two separate forums will be constructed.

Website

First, a high-quality website will be developed and maintained by graphic and web design firm, A/D Creative Group. It will feature a virtual gal-lery designed to promote the creations of our lo-cal artists, as well as the creations of the numer-ous American Indian artists located throughout the U.S. whom have already expressed an interest in providing art us to promote and distribute on their behalf. Every artist featured on the website will have a detailed biography accessible to any interested party. Several live webcams will also be placed in our gallery and in our communal stu-dio. Visitors will be able to witness the creation of a piece in all phases of development. Our website will not only be interactive, but also edu-cational. This medium will bridge the physical gap between art connoisseurs and art creators.

Gallery/Cooperative/Gift shop

Second, to assist with the development and pro-motion of local American Indian artists on the Crow and Northern Cheyenne reservations, an art cooperative will be established near the Little Bighorn Battlefield. The facility will function in a manner similar to a traditional art cooperative and provide materials, along with studio space, to artists in exchange for exclusive consignment


rights on all work created in the facility. Expe-rienced artists who choose to participate in a mentor/mentee program will be charged lower consignment rates.

In year three, a larger facility will be constructed and it will host occasional art themed commu-nity events, educational seminars and workshops, as well as exhibitions and art shows. It will contain more studio space for the cooperative and a larger gallery that will feature fine art cre-ated in the cooperative, as well as select pieces obtained through consignment. A portion of the studio space in the cooperative will be designed to allow tourists to directly interact with art-ists while they create their work. Visitors to the cooperative will have the option to pay a fee to participate in artist directed activities, like paint-ing, simple beadwork or crafts. Adjacent to the cooperative will be a gift shop that features items marketed toward the large number of tourists who visit the area each year.

The creators of Dance of the Sun will be utiliz-ing established networking channels in the U.S. and abroad to maximize the value obtained through the sale of featured art. Jonathan Max-well currently has a piece of President Obama displayed in the White House and is in the pro-cess of having a piece displayed at the Smithson-ian’s Museum of the American Indian. He also has a relationship with London-based CURB media

Product/Service Description

Dance of the Sun will exert the majority of its resources to promoting and distributing higher-end fine and cultural art. Every piece sold through Dance of the Sun will be authentic “American Indian created” work and marketed in accordance with the Indian Arts and Crafts Act of 1990.1 The mediums supported will include painting, solar pyrography, photography, beading, leather work, pottery, jewelry, weaving,

traditional regalia and digitally created expres-sions.

Dance of the Sun will obtain the majority of its art on consignment. Our aforementioned established artists will receive favorable consign-ment rates and be heavily promoted in exchange for their willingness to spend a few hours a week mentoring developing artists that display potential and seek guidance. These mentors and mentees will constitute our “core” artists. All of the work consigned outside of the facility will be obtained by what we will call “secondary” artists. The designations are in no way indicative of quality.

Dance of the Sun will assume exclusive consign-ment rights for a minimum of three years on all art created within the facility or with materials purchased and supplied directly by the facility. After three years, artists will have the option to take possession of the art dependent upon the satisfaction of specific criteria. Before becoming affiliated with the co-operative, every artist will enter into a contractual agreement as a condi-tion of participation. That contract will promote creative autonomy, while protecting the financial efficacy of the business. All of the art will be in-sured during every stage of production, storage and transportation.

In addition to offering art obtained through consignment in our gallery and on our website, we will also act as art brokers. We will assist any collector that comes to us seeking a specific type of piece and aid them in reselling pieces that no longer fit their collections. A significant amount of our brokerage services are anticipated to be requested at the numerous art expos and festi-vals that we will be regularly attending.

A source of revenue with a great deal of eco-nomic potential is undoubtedly the internet based services of the company. The website will also compliment the brokerage service. The


website will be similar to Heritage Double Take Gallery,2 and the Medicine Man Gallery.3 The art will be displayed in a high resolution, high dpi format that will allow end users to view each piece in intricate detail. Accompanying the high resolution images will be a detailed artist profile including video and/or pictures that outline the process involved in creating the work.

The facility will also serve as an art based cultur-al educational center. Workshops and seminars will be made available during the time of year when demand for them is highest. Community based events, such as artistic festivals and Q&A appearances by renowned artists. Traditional northern plains American Indian music will play on speakers located throughout the facility. Visi-tors will be provided a culturally insightful ex-perience that will allow them the opportunity to view, and possibly engage, artists at work. Four of the studios will have at least one glass wall that will be transparent or open to the public. The ultimate goal of the gallery/cooperative is to create an interactive environment that is rich in culture and substantial in content.

The facility’s gift shop will feature many of the items produced or procured by Dance of the Sun, including local arts and crafts created by independent artists. Prints will also be made available of the work with the highest demand. Initially, the independent arts and crafts will obtained on consignment, but the option of directly purchasing items will be explored in the future.

Not all of the art in the possession of the coop-erative will be able to be displayed in the gallery or the gift shop. As we are striving for a diverse consumer base, we understand the need to have the ability to satisfy our consumer’s potential preference to be informed. Therefore, storage space will have to be allocated and a catalog-ing system put in place that allows prospective buyers to review the inventory that is not on

display. We will organize the stored inventory by category and artist, and make the list available to customers through printed and virtual cata-logues.

Objectives

The primary objective of Dance of the Sun will be to eventually become the premier broker of high quality Northern Plains American Indian art. In order to obtain this objective, we will have to set an array of goals designed to transform our primary goal into a successful realization. They are as follows:

1) We plan on building upon current notoriety and establishing our brand image enough to capture 0.08% of the total American Indian art market in year one.

Strategy: We will expend a significant amount of resources acquiring accessibility online. We will obtain a sufficient collection of high qual-ity work and attend as many trades shows and events as possible.

2) We will generate a sufficient amount of revenue by year three to construct the new facility.

Strategy: We will utilize consistent market penetration approaches into previously unreal-ized markets. The focus will be on distributing high quality products with high quality service.

3) By year five, we would like to begin estab-lishing galleries near our consumer bases in the larger metropolitan areas.

Strategy

We hire two additional company representatives who assist in generating large amounts of direct company exposure to both artists and collectors. We continuously search for additional sources


of revenue and look for ways to improve our service.

SWOT Analysis

Industry and Market Analysis

Industry Analysis

The value of investing in art has been com-pared to that of gold. Art has consistently appreciated over the last hundred years.4 Not only is the purchase of fine art a secure invest-ment, but it is also an investment that can be hung on a wall and appreciated. The current traceable annual market for fine and decora-tive art is valued at $88.1 billion and is com-posed of approximately 40 million transac-tions a year.5 The United States and the U.K. constitute nearly one half of total global sales, with the U.S. purchasing nearly $24 billion alone. Global sales of art are divided between


auction houses and dealers, which shared ap-proximately 45% and 55% of the market respec-tively.5 There are currently 200,000 art related businesses in the industry worldwide.

The size of the American Indian arts and crafts industry generates over $1 billion annually and is one of the fastest growing segments within the art industry.6 A large portion of this growth is occurring in the European Union (EU) where there has been a sustained American Indian hob-byist movement since the 1950’s. In Germany alone, there are over 400 American Indian hob-byist clubs with combined memberships totaling over 40,000 people. This type of interest in the American Indian culture can also be witnessed in other countries like England and France, where hobbyist groups regularly organize powwows and other traditional ceremonies. As a result, hundreds of millions of dollars are spent in the EU each year on American Indian items, includ-ing art.

While not as pronounced, there is also a sig-nificant interest in American Indian art in the U.S. and purchases of American Indian art have steadily been on the rise. Hundreds of millions of dollars are spent each year on American In-dian art here as well. The majority of this Ameri-can Indian art is created in the American South-west. Paintings and classic regalia constitute the mediums with the highest demand.

General Market Trends

Like many other industries in 2008, the art in-dustry took a hit when the banking crisis struck. The genres that lost the most value on the global price index were the most expensive art, which in some cases lost nearly half of the value from the year before. Moderately priced art suffered losses in the price index, but is leading the drive in the resurgence to pre-crisis prices. All indica-tions are that the industry will continue to grow as long as there is a adequate supply of product.

The cumulative average growth rate over the last 20 years has been 13.1% per year.7 Over the past couple of years, the art industry has nearly rebounded to pre-crisis levels. Since 1990, the overall price index of art has rose 88% in the U.S. Based on these figures, it is easy to ascertain that art has been, and will continue to be, a reli-able investment.8

Consumer Profile

Demographics

Research has indicated that our target market consists of college educated, working class professionals between the ages of 31 and 69 who reside primarily in the larger metropolitan areas of the U.S. and the EU. Art connoisseurs are typically identified as “luxury” consumers. The majority of them have acquired graduate or post-graduate degrees and their average income is slightly over $100,000 per year. They spend an average of $8,062 per year on art.9 Some of the other demographics are:

Additional Target Market Demographics

95% own their homes

73% vacation annually

70% regularly make purchases online

54% are married

49% are ages 31 -49

44% are 50 and above

Psychographics

The average purchaser of fine art has a self image that shows them to be refined, trendy, or culturally in tune with what they perceive as valuable and significant. In fact, 61% of them


state that they regularly attend art-themed func-tions because they simply think that the practice is enjoyable.9 They are a segment that is gener-ally open to new experiences and the purchase of art is more than an investment. They seek out and purchase artistic items because they enjoy the process.

Marketing Plan

The organizational hierarchy of the art industry is determined by the strength of each company’s reputation. The success of the marketing efforts will rely heavily on our ability to establish and maintain synergetic working relationships with everyone involved in the production and distri-bution process. A steady supply of quality work will need to be available for the demand that the marketing ignites.

Cultural /Social Environment

The tastes of a society are constantly changing and various artistic styles, or mediums, experi-ence various levels of demand. Presently, Ameri-can Indian culture is held in high regard in the more densely populated metropolitan regions of the U.S. and the EU.8 In order to ensure that the interest in American Indian creations is capital-ized upon, it is important that the promotion of art remains true to the culture that produced it.

Economic Environment

The current recession initially devalued the price index of the art market, but the art is once again increasing in demand and the industry, as a whole, is growing. Many consumers are still reluctant to purchase items with a value based upon qualitative data, but many astute inves-tors have recognized the safety associated with investing in fine art.9 As a result, art is soon expected to surpass the highs values that existed before the financial crisis.

Political Environment

The political tone of the country has been shift-ing from one that is liberal to one that is more conservative. Dance of the Sun will have to be sure to communicate values that stress patrio-tism and family values. The political tone in the EU is more liberal than the one in the U.S. American Indian art will need to be portrayed as progressive and inspirational.

Competitive Environment

Dance of the Sun will face competition on two fronts. First, the cooperative will have to compete with a few local and regional gallery/art dealers. Second, the cooperative will have to compete with nationally established online gal-leries and auction houses, but direct competition from similar ventures that can claim authentic American Indian branding is limited nationally, and even more so regionally. It will be impera-tive to establish a strong brand image in order to


establish a reputation for offering value that is based upon a differentiated approach.

All of the business listed above examples of what would be considered direct competition, although there are not any American Indian owned and operated cooperatives/galleries in the region that feature both a brokerage service and virtual gallery. While there may be a few oth-er similar companies in the Southwest, we will be the only organization of our kind that has direct and continued access to American Indian art of the Northern Plains. There is a substantial amount of indirect competition, but acquiring our targeted market share should be attainable considering our distinctly differentiated status.

Means End Chain

A means end chain chart illustrates is a visual depiction of the perceived responses of our consumers to the various products that we of-fer. The implementation of a means end chain chart is a tool employed to construct an effective brand positioning statement.

Brand Positioning Statement

Making a purchase from Dance of the Sun guar-antees the procurement of an authentic Ameri-can Indian expression of art that will exemplify

the cultural quality with which it was made.

Product Brand

Dance of the Sun will establish itself as a pro-curer of quality art and a resourceful broker that is able to obtain high value for the pieces it sells. Establishing a strong brand image will initially be dependent upon offering high quality. The goal for the evolution of the company’s brand image will be recto obtain recognition for its market-ing prowess.

Price

The pricing strategy will be based upon efforts to increase demand by increasing awareness through focused target marketing.

The price points for our art will range from small craft items that start at $50 to extravagant pieces of fine art that could be valued at more than $50,000. In the world of art, price is indica-tive of quality. With this in mind, the price deter-mined for all non-auction pieces will be carefully

calculated. Presently, after reviewing all of the potential art from artists interested in becoming a part of Dance of the Sun, the average price of the fine art sold on consignment is expected to be a conservative $1,500 per piece. A large


number of the pieces in our possession will be significantly more valuable. As a result, the po-tential for company profits could be higher than initially projected.

Place

The existing distribution channels necessary to be successful in this industry are well established, but underutilized. Many avenues are only avail-able to the galleries and artists who have impec-cable reputations. Every possible opportunity to acquire exposure through existing channels, such as the auctions of Christie’s and Sotheby’s, will be explored and studied. Art created, displayed and sold at the cooperative will be promoted to every reputable media outlet that shows the slightest interest in any of the products created.

Promotion

The significant advertising budget will focus primarily on obtaining exposure. Brand image is the primary objective. The creative adverts will be directed at the magazines and industry events enjoyed the most by our target market. A substantial amount of funding will need to be maintained in order to achieve effective results.

We will be regularly attending merchandising events around the country with the goal increas-ing company exposure and brokering high dollar pieces. Expected returns from this approach are

anticipated to be substantial. In fact, two addi-tional employees will be required to assist with the assertion of this promotional strategy.

The fine art industry is in the market maturity phase of the product life cycle. The overall demand for art is relatively understood. Recog-nition is a precursor to success. Since word of mouth is one of the most powerful forms of ad-vertising, Dance of the Sun will focus heavily on customer service and satisfaction. In the art in-dustry 90% percent of a gallery’s sales will come from 10% of its customers. Email addresses will be collected from as many potential customers as possible. A quarterly news letter will be devel-oped informing patrons about the events, artists and changes of the cooperative. Along with promoting art and providing news, tips about hanging art or recognizing valuable pieces will be given. The news letter can be sent via email, as well as through direct mail campaigns.

Sales Strategy

Although the sale of American Indian arts and crafts is a more than a $1 billion industry, it is still considered to offer heterogeneous and spe-cialty products. Therefore, selective distribution that employs a marketing strategy that informs and persuades the target market is essential. If presented to the correct audience, the efficacy of the marketing efforts will be extremely high and the success of the cooperative will be magnified.

Building/Physical Facilities

In depth research has been conducted to es-timate the resources necessary to implement and sustain the project. Primary and second-ary physical locations have been selected and negotiations are currently underway to secure the use of the primary. The location of this primary facility, which will be used during the first two years of the venture, is comprised of a 4,000 sq ft building commer-

PRODUCT (INDUSTRY) LIFE CYCLE STAGES

Introduction Growth Maturity Decline

Time

Profit


cially zoned and located near the Little Big Horn Battlefield in Crow Agency, MT. It is currently owned by business man who resides in Califor-nia. The building has been vacant for several years and he is extremely interested in obtaining tenants and/or buyers. Despite the prolonged vacancy, it has been adequately maintained and the renovation expenses will be minimal.

In year three, the new building will be con-structed on land adjacent to this location. It will be a LEED certified building that is designed to attract tourists. Once this building has been constructed, the initial gallery and studio space in the previous building will be converted strictly into office and storage space. In addition to the previously described features, the new facility will also contain an outdoor marketplace that will be available, for a fee, to vendors during the busier tourist season. This new facility will be intended to foster a feeling of pride among the residents of Crow and offer something that is currently unavailable to all of the tourists that visit the area each year: A genuine, artistic American Indian experience.

Operations

The secondary goal behind improving the eco-nomic situation of American Indian artists, and their families, is the preservation and propaga-tion of the American Indian culture. In order to enhance the purchasing experience of everyone who obtains art from Dance of the Sun, the goal of the cooperative will be to allow interested consumers to become as involved with the entire process as they would like. The design of the daily operations keeps this in mind.

Artists will check out the materials necessary to create their work and will have to schedule studio space. Before they start or continue on a new piece of artwork, a picture will be taken. As previously stated, once they finish for the day, another picture will be taken and catalogued. In

addition to being able to add these pictures to their profiles, any potential liability issues can be avoided. Additionally, this method will ensure ac-curate record keeping of material inventories.

Every transaction with artists and/or customers will be meticulously recorded. Internal controls will be established and annual audits from third party financial agencies will be utilized. Oversee-ing this process directly will be the

Strategic Alliances

Jonathan Beartusk is currently affiliated with Curb Media based out of London. It is a very prestigious company that will bridge the existing physical gap and assist us in establishing opera-tions in the EU. Jon is taking a trip to Western Europe, at the request of various organizations, to share his culture and his art. The marketing potential will be capitalized upon on this trip as well. There are also interested parties in the United Arab Emirates who recently paid for Jonathan to visit Dubai and Abu Dhabi where he completed a piece they commissioned him to do. These international contacts, in conjunction with a great number of contacts throughout the U.S., will reduce the barriers of entry for Dance of the Sun.

Shipping

One of the most difficult elements for Dance of the Sun to overcome will be that a large number of customers would prefer to purchase a piece of artwork that they were able to physically view before handing over their money. For this reason, the shipping process intended for all cus-tomers is one that maximizes the convenience of doing business with the cooperative. All mer-chandise will be returnable, within a reasonable amount of time, with no questions asked.


Growth/Expansion

The opportunity for potential growth in the future will reside within our ability to expand our base operations by using our business model to develop additional cooperatives that will be strategically located using a cost-benefit analysis. There are many other American Indian commu-nities throughout the country that could benefit from similar operations in their communities. Partnerships with local artists for these addition-al operations would be preferred. Additionally, we will be looking to open a chain of galleries under the Dance of the Sun brand. These galler-ies will be located in the large metropolitan areas in the U.S. and abroad where demand for our products is highest. Current data suggests that ideal locations for our galleries include Washing-ton D.C., Seattle, New York City, London and Frankfurt. Each gallery would have the potential to substantially increase our annual revenue.

Legal Form of Organization

Considering the expected revenues, size of the operation and anticipated expansion, Dance of the Sun will be formed as a C-corporation. The interests of the company, as well as those of the investors, will be best protected by this form of legal organization. The principal shareholders will be Curtis Wallette and Jonathan Beartusk. This form of organization will enable manage-ment to quickly generate additional capital in any instance where shortfalls are experienced or expected. It will also simplify any potential trans-fers of ownership or additions of new partners.

Management Profile

The driving force behind the creation and devel-opment of Dance of the Sun is Curtis Wallette. He will serve as the Executive Director and be the initial 51% majority shareholder. He is cur-rently in his senior year at MSU Billings where he is obtaining his degree in business administra-

tion with an emphasis on marketing and business management. He has also been taking classes to increase his love for knowledge of the fine arts. He has been recognized for an array of accom-plishments directly related to his performance at the university. He has had a rich variety of management experience in the retail and manu-facturing industries, including responsibility for the inventory control process of a Wal-Mart su-percenter that grossed over a $165 million a year and the daily operations of a Steel and Recycling center that processed $25 million of materials a year. He believes in the value of hard work and believes that the key components to success are determination, discipline and dedication.

The visionary behind the artistic inspiration and cultural contribution of the cooperative is Jona-than Beartusk. He will be the director of public relations and outreach as well as the initial 49% secondary shareholder. He is an accomplished solar pyrographist who has been establishing a strong reputation for producing quality art. He has made international connections. He current-ly has a portrait that he composed of Obama hanging in the White House and is in the pro-cess of having one of his pieces displayed in the Smithsonian’s Museum of the American Indian. He is the world’s premiere American Indian solar pyrographist. He believes that quality work is a result of passion and that true success is realized through the practice of living in accordance with one’s values.

Zoey McRae will serve as Dance of the Sun’s Operations Manager. She has had an array of diverse employment experience and will bring a unique perspective to the company. She will also assume responsibility for all company activities at the facility in the absence of the Executive Di-rector. She is currently a senior at MSU Billings who is majoring in accounting. She also has a degree in graphic design from Northwest Col-lege and has spent five years in the non-profit industry working as a magazine designer and


program coordinator. She has also worked as a capital equipment purchasing agent for Mon-tana’s largest hospital. Raised on the Fort Peck Indian Reservation, she believes that people should not only work hard, but work smart. She lives her live according to the values of fiscal responsibility.

Advisory Board

The probability of success for any company is magnified when the management has a rich source of professional experience upon which to rely. In addition to the diverse experience of the current management, an ample amount valuable guidance will be available through an exceptional advisory board. Members will include:

Dr. A.J. Otjen is currently a marketing professor at MSU Billings. She has previously served as the VP of Marketing for Sprint Corp, she was the principal owner of Canyon Fliers Grand Canyon Airlines before selling it, and has served as the VP of Marketing for Streamworks Technology.

Kevin Redstar has been active in the art industry for 40 years. As previously stated, he is world renowned and recently received an honorary doctoral degree from his alma mater, The Insti-tute of American Indian Art.

Contingency Plan

In the instance of where any financial, environ-mental or political forces prevent us from estab-lishing the gallery/cooperative, we will liquidate all unnecessary assets and become an internet based brokerage firm. We will strictly acquire art on consignment and act as agents on behalf of both artists and collectors.

Financial

Startup Capital

Financial funding is the life blood of any de-veloping business. As a result of choosing to lease our facility for the first two years, start-up costs will be minimal. Necessary capital can be acquired through two sources: the Montana De-partment of Commerce American Indian Equity Fund Grant and owner investment.

The Montana Department of Commerce, through the Montana Indian Equity Fund, pro-vides a $7,000 equity grant. Dance of the Sun qualifies in two ways for this grant: 1) the owners are enrolled members of the Northern Chey-enne tribe, and 2) the requirement of a mini-mum dollar to dollar match is satisfied.10

The remaining $75,000 will be capital contrib-uted by principals Curtis Wallette and John Beartusk. To establish a 51% majority/49% minority ownership control, Curtis will trans-fer $38,250, and $36,750 will be transferred by John Beartusk. Although not needed as an initial funding source, revolving lines of credit are listed as an option for financing to cover any short-term and cyclical working capital needs of the growing business. Relationships will be developed with both the local Small Business Administration office and several local banks.

Capital Prerequisites to Operations

Dance of the Sun has budgeted start-up expens-es which need to be financed with cash before the gallery doors can be opened and business commenced. They include: 1) financial and busi-ness advising through Waddell & Reed; 2) the installation of security system by Kenco Secu-rity; 3) gallery collection management software; 4) website development; 5) public utilities set-up; 6) the state filing fee for corporations; and 7) local and Tribal licensing fees. These separate


amounts total $14,074.

Additional Financing

In year three, to assist with the cost of purchas-ing the land and construction a new facility, a loan for $462,445 will be obtained from the Business and Cooperative Assistance Depart-ment through the Business and Industry (B&I) Guaranteed Loan Program. “The purpose of the B&I Guaranteed Loan Program is to im-prove, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.”11 As we are a legal entity, we qualify as a borrower. The rate for this loan is 6.5%.

In addition to the B&I loan, we will be able to obtain a $100,000 Montana Department of Environmental Quality Low Interest Loan for the proposed solar energy components of the building.12 There are several benefits to this fi-nancing, the greatest being the lower interest rate of 4.5 percent.

Six Financial Criteria

The following criteria influence the decision of an individual to undertake a new business venture:

Undiscounted Payback: 1 year, 2 months

Discounted Payback: 1 year, 3 months

Net Present Value (WACC): $685,505

Net Present Value (RRR): $379,483

Internal Rate of Return: 43.43%

Modified Internal Rate of Return: 21.58%

The figures show the undiscounted payback period for Dance of the Sun at 1 year and 2

months, with discounted payback at 1 year and 3 months. Both of these periods indicate that Dance of the Sun is a positive venture.

The positive IRR and MIRR are also strong evi-dence that the venture would be able to generate ample cash flows to recover the initial cost of the investment in a timely manner. Therefore, Dance of the Sun is positioned for success in the art gallery industry because the base case figures all indicate an adequate amount of future cash flows.

Cash Flow

Our cash flow statement shows the sources and uses of funds broken down into months for the first year to show if there would be a month where the ending cash balance is negative. With a positive net income and minimal losses of cash through investing, a positive ending cash balance is shown each month. This flows through to the second year with an ending balance of $255,860. This allows us to finance our land purchase and construction in year three with loans totaling $569,140, making sure to leave a minimum of $25,000 on hand to cover all cash expenses.

As a benefit of high cash flow in years three, four, and five, we are able to apply extra cash to the principal amounts of the MT. Dept of Environmental Quality and the Business & In-dustry loans and pay them off in two and three years respectively. We believe this is a fiscally, as well as socially, responsible decision, further establishing our reputation as a successful and profitable business. Year five results a projected ending cash balance of $506,938, allowing us to invest in expansion opportunities with minimal long-term debt obligations.

Sales Forecast

Inspired by the concept of a gallery created to market only fine art and small arts and crafts


works by Native American artist, we are ex-cited to begin operations with 20 core artists. In addition to the benefits previously expressed, each artist will also receive an additional 5 % sale premium, resulting in a total of 55 % of the sale paid back. We expect the work of each of these artists will be of higher quality and in higher demand, and based on current markets, feel confident in estimating all future sales at the previously mentioned conservative average price of $1,500. Based on Forbes statistics, we can also reasonably expect a 13.1% appreciation in art prices.

In year one, approximately forty artists who are not directly affiliated with Dance of the Sun will provide work to us on consignment.

The rate charged will be the industry standard 50%. The average sale price expected for each artist is also $1,500. As part of the growth of the gallery, we expect to increase all three areas of artists as we develop a reputation for being the best gallery catering to Native American art by Native Americans.


Dance of the Sun: Example Consignment Contract


Dance of the Sun: Letter from President Obama


Start-up Expenses

Waddell & Reed: Financial Advising $2,000 Kenco Security: Asset Protection 5,027 Collection Management Software 1,500 Website Development 5,000 Public Utilities Hookup 278 State of Montana LLC Filing Fee 70 Local & Tribal Licensing Fees 200

Total Start-up Expenses $14,074 Start-up Assets

Office Machinery and Equipment $5,290 Office Furniture 2,344

Total Assets $7,634

Total Requirements $21,708 Start-up Funding

Start-up Expenses to Fund $14,074 Start-up Assets to Fund 7,634

Total Funding Required $21,708 Assets

Long-term Assets from Start-up $7,634 Start-up Cash Requirements Cash for Expenses 14,074

Total Assets $21,708 Liabilities and Capital Liabilities

Revolving Loan $-

Total Liabilities $- Capital Planned Investment

American Indian Equity Fund (Grant) $7,000 Owner investment Curtis Wallette (51% majority ownership) 38,250 John Beartusk (49% minority ownership) 36,750 Outside Investor - Additional Investment Requirement -

Total Capital Investment $82,000

Loss at Start-up (Start-up Expenses) $(14,074)Total Capital 67,926 Total Capital and Liabilities 67,926

Total Funding $82,000

Third Year Land Purchase & Building Construction

Land $150,000 Building 650,000

Total New Long Term Assets $800,000

Total Requirements $800,000 Start-up Funding

Long-term Assets to Fund $800,000

Total Funding Required $800,000 Assets 25% Equity available for bank financing? Yes

Cash On Hand for Purchase & Construction $237,555

Total Assets $237,555

To Be Funded Through Liabilities & Capital $562,445 Liabilities

MT Dept of Environmental Quality $100,000 Business & Industry Guaranteed Loan 462,445

Total Liabilities $562,445 Capital

Planned Investment $-Outside Investor - Additional Investment Requirement -

Total Planned Investment $-

Total Funding $562,445

Dance of the Sun: Start-Up Expenses & Third Year Expenses


Salary & Payroll Expenses Employee Salary Expense Year 1 Year 2 Year 3 Year 4 Year 5

Owner & Executive Director $47,000 $48,410 $49,862 $51,358 $52,899 Gallery & Operations Director 45,000 46,350 47,741 49,173 50,648 Owner & Director of PR & Outreach 22,000 22,660 23,340 24,040 24,761 Employee: Administrative Assistant - 20,800 21,424 22,067 22,729 Additional Employees - 30,000 36,050 83,935 98,163

Total Employee Salary Expense $114,000 $168,220 $178,417 $230,572 $249,199

Employer Payroll Expense & Payables Year 1 Year 2 Year 3 Year 4 Year 5

Employer Social Security 6.20% $7,068 $10,430 $11,062 $14,295 $15,450 Employer Medicare 1.45% 1,653 2,439 2,587 3,343 3,613 Employer FUTA (up to $7,000) 0.80% 168 224 224 224 224 Employer UI (up to $26,300) 2.18% 1,720 2,293 2,293 2,293 2,293 Employee Social Security 6.20% 7,068 10,430 11,062 14,295 15,450 Employee Medicare 1.45% 1,653 2,439 2,587 3,343 3,613 Federal Tax 25% 28,500 42,055 44,604 57,643 62,300 State Tax 6.90% 7,866 11,607 12,311 15,909 17,195 Total Payroll Expenses & Payables 55,696 81,917 86,730 111,347 120,140

Worker's compensation insurance $3.69 4,207 5,100 5,253 5,411 5,573

Total Employee Expenses $173,903 $255,238 $270,400 $347,331 $374,912 Employee Health Insurance Year 1 Year 2 Year 3 Year 4 Year 5

Registered Native American Indian Cost 0% $- $- $- $- $- Non-Native American Cost 13.33% 6,000 12,953 14,029 20,690 22,872

Total Health Insurance Cost $6,000 $12,953 $14,029 $20,690 $22,872

Travel Expenses Year 1 Year 2 Year 3 Year 4 Year 5

Part Time Director Travel $25,000 $27,500 $30,250 $33,275 $36,603 Full Time Sales Travel 35,000 38,500 42,350 46,585

Public Relations Travel $12,000 $13,200 $14,520 $15,972 $17,569

Depreciation Schedule Life Cost Year 1 Year 2 Year 3 Year 4 Year 5

Land unlimited $150,000 $- $- $- $- $- Building: Non-residential real property 39 650,000 16,667 16,667 16,667 Office Furniture and Fixtures 10 2,794 279 279 279 279 279 Computer 6 4,150 692 692 692 692 692 Printer 6 670 112 112 112 112 112

Total depreciation deduction $1,083 $1,083 $17,749 $17,749 $17,749

Dance of the Sun: Employee Payroll & Depreciation Expenses


St

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Dance of the Sun: Financial Analysis


Future Value Calculation Investment Investment Investment Total Year 1 Year 3 Year 5 Future Value

t=0 $21,708 Year 1 22,359 Year 2 23,030 Year 3 23,721 $800,000 Year 4 24,433 824,000 Year 5 25,166 848,720 $4,820 Year 6 25,920 874,182 4,965 Year 7 26,698 900,407 5,114 Year 8 27,499 927,419 5,267 Year 9 28,324 955,242 5,425

Year 10 $29,174 $983,899 $5,588 $1,018,661 Breakeven Analysis Year 1 Year 2 Year 3 Year 4 Year 5

Cash Operating Expenses $374,371 $502,467 $486,752 $581,478 $630,984 (+) Interest - - 34,594 34,038 33,450 (+) Principal Payments - - 110,389 100,828 358,217

Total Cash Expenses $374,371 $502,467 $631,735 $716,344 $,022,651 Gross Margin 50.0% 50.0% 47.1% 47.1% 47.1%

Breakeven Check

Breakeven Fine Art Sales Revenue $748,743 $1,004,934 $1,341,263 $1,520,900 $2,171,234 (-) COGS 374,371 502,467 709,528 804,556 1,148,583 Gross Profit 374,371 502,467 631,735 716,344 1,022,651 (-) Cash Expenses 374,371 502,467 486,752 581,478 630,984 (-) Interest - - 34,594 34,038 33,450 (-) Principal Payments - - 110,389 100,828 358,217 Taxable Income - - - - -

Pro Forma Fine Art Sales Revenue $800,000 $1,236,000 $1,803,530 $2,403,999 $2,926,323

Pro Forma Net Profit $19,207 $78,839 $185,124 $295,668 $412,447

Ratio Analysis/RMA Quartile Benchmarks Year 1 Year 2 Year 3 Year 4 Year 5 Industry ProfileSales Growth 54.50% 45.92% 33.29% 21.73% 10.00% Percent of Total Assets Current Assets 95.77% 97.91% 16.40% 34.37% 40.26% 10.32% Long-term Assets 4.23% 2.09% 83.60% 65.63% 59.74% 2.14% Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Total Long-term Liabilities 0.00% 0.00% 43.91% 30.51% -0.02% 12.56% Net Worth 100.00% 100.00% 56.09% 69.49% 100.02% 29.26% Percent of Sales Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Gross Margin 50.00% 50.00% 47.10% 47.10% 47.10% 42.64% Operating Expenses 37.31% 31.06% 20.67% 18.90% 16.72% 36.18% Advertising Expenses 9.63% 9.68% 7.30% 6.02% 5.44% 1.58% Earnings Before Interest & Taxes 3.07% 9.26% 19.13% 22.17% 24.93% 4.82% Ratios Current 2.76 3.15 1.31 2.61 2.72 Quick 2.76 3.15 1.31 2.61 2.72 Debt/Equity 0.53 0.45 1.58 0.78 0.17 Debt to Net Worth 0.53 0.45 1.58 0.78 0.17 Asset turnover 5.16 4.73 1.91 2.05 2.32

Dance of the Sun: Financial Anlysis


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Dance of the Sun: Cash Flow Statement - Year 1


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Dance of the Sun: Cash Flow Statement - Year 2-5


Artist Category Year 1 Year 2 Year 3 Year 4 Year 5 Total gallery Artists Artists Artists Artists Artists sales %Core Artists 20 22 25 28 30 29% Secondary Artists 40 60 90 99 109 70% Small Craft Artists 5 5 10 11 12 1% Total gallery artists 65 87 125 138 151 100% Annual U.S. Gallery Sales Annual Sales Growth Rate Art Sales Market Share

Year 1 $1,000,000,000 0.08% $800,000

Year 2 $1,030,000,000 0.12% $1,236,000 155%

Year 3 $1,060,900,000 0.17% $1,803,530 146%

Year 4 $1,092,727,000 0.22% $2,403,999 133%

Year 5 $1,125,508,810 0.26% $2,926,323 122% Assumptions U.S. Art Sales Growth 3% Yearly Art Appreciation (Forbes) 13.10% 5 Year Sales Forecast Unit Sales Year 1 Year 2 Year 3 Year 4 Year 5Core Artists 155 211 273 321 346 Secondary Artists 373 510 658 775 835 Small Craft Artists 80 109 141 166 179 Total Unit Sales 608 831 1,072 1,263 1,359 Average Unit Price per Sale

Core Artists $1,500 $1,697 $1,919 $2,170 $2,454 Secondary Artists 1,500 1,697 1,919 2,170 2,454 Small Craft Artists 100 113 128 145 164 Sales Per Artist

Core Artists $11,600 $16,293 $20,921 $25,351 $28,054 Secondary Artists 14,000 14,420 14,027 16,998 18,810 Small Craft Artists 1,600 2,472 1,804 2,185 2,418 Total Sales Per Artist 27,200 33,185 36,752 44,535 49,283 Total Gallery Sales

Core Artists $232,000 $358,440 $523,024 $697,160 $848,634 Secondary Artists 560,000 865,200 1,262,471 1,682,800 2,048,426 Small Craft Artists 8,000 12,360 18,035 24,040 29,263

Total Gallery Sales $800,000 $1,236,000 $1,803,530 $2,403,999 $2,926,323 Direct Unit Costs Consignment Consignment Rate Rate

Core Artists 50% $750 $848 60% $1,151 $1,302 $1,473 Secondary Artists 50% 750 848 50% 959 1,085 1,227 Small Craft Artists 50% 50 57 50% 64 72 82 Total Direct Cost of Sales

Core Artists $116,000 $179,220 $313,814 $418,296 $509,180 Secondary Artists 280,000 432,600 631,236 841,400 1,024,213 Small Craft Artists 4,000 6,180 9,018 12,020 14,632

Total Direct Cost of Sales $400,000 $618,000 $954,067 $1,271,716 $1,548,025

Dance of the Sun: Sales Forecasts


Revenue By Functional Activity Year 1 Year 2 Year 3 Year 4 Year 5

In-House Fine Art Sales $80,000 $185,400 $360,706 $480,800 $585,265 Sales percentage 10% 15% 20% 20% 20%

Brokerage Fine Art Sales 720,000 1,050,600 1,442,824 1,923,200 2,341,058 Sales percentage 90% 85% 80% 80% 80%

Total Fine Art Sales 800,000 1,236,000 1,803,530 2,403,999 2,926,323 Direct Cost of Sales 400,000 618,000 954,067 1,271,716 1,548,025 Gross Margin 400,000 618,000 849,463 1,132,284 1,378,298 Gross Margin % 50.00% 50.00% 47.10% 47.10% 47.10% Sales and Marketing Expenses Travel & Business Development 37,000 75,700 83,270 91,597 100,757 Advertising: Print, Online & Other 40,000 44,000 48,400 53,240 58,564 Total Sales and Marketing Expenses 77,000 119,700 131,670 144,837 159,321 Operations and Administrative Expenses Rent 36,000 36,000 - - - Remodeling Costs 20,000 - - - - Architectural & Engineering Fees - 20,000 - - - Owner & Employee Payroll 114,000 168,220 178,417 230,311 248,851 Payroll Expenses 55,696 81,917 86,730 111,224 119,975 Worker's Compensation Insurance 4,207 5,100 5,253 5,411 5,573 Health Insurance 6,000 12,953 14,029 20,655 22,825 State & Local & Annual Filing Fee 285 15 15 15 15 Depreciation 1,083 1,083 17,749 17,749 17,749 B&I Loan Renewal Expense - - - 916 904 B&I Loan Guarantee Fee - - 7,506 - - Attorney Fees 20,000 22,000 24,200 26,620 29,282 Financial Advising Fees 5,000 5,500 6,050 6,655 7,321 Credit Card Fees 392 461 536 595 625 Website Maintenance 11,000 12,100 13,310 14,641 16,105 Collection Mgnt Software annual support 1,700 200 200 200 200 Utilities 3,147 2,902 2,934 2,967 3,000 Building & Asset Security 5,345 318 318 318 318 Art & Liability Insurance 5,000 5,000 5,000 5,000 5,000 Real Estate Taxes 6,000 6,300 6,615 6,946 7,293 General Office Expenses 3,600 3,780 3,969 4,167 4,376 Total Operations and Administrative Expenses 298,454 383,850 372,831 454,391 489,413 Earnings Before Interest and Taxes 24,546 114,450 344,961 533,056 729,565 Earnings Before Interest, Taxes & Depreciation 25,629 115,533 362,711 550,805 747,314 Interest Expense Alternate Energy Loan Interest Expense - - 4,100 3,897 3,685 B&I Loan Interest Expense - - 30,494 30,141 29,765 Total Interest Expense - - 34,594 34,038 33,450 Earnings before Taxes 24,546 114,450 310,367 499,018 696,114 Tax Expense State Tax 6.75% 1,657 7,725 20,950 33,684 46,988 15% 39% 39% 34% 34%Federal Tax 3,682 27,886 104,293 169,666 236,679 Total Tax 5,339 35,611 125,243 203,350 283,667

Net Income $19,207 $78,839 $185,124 $295,668 $412,447 Dividend - - - - - Retained Earnings $19,207 $98,046 $283,170 $578,838 $991,285

Dance of the Sun: Income Statement


Assets Starting Balances Year 1 Year 2 Year 3 Year 4 Year 5Current Assets

Cash $75,000 $148,370 $255,860 $154,557 $403,149 $506,938 Indian Equity Fund Grant 7,000 - - - - - Total Current Assets 82,000 148,370 255,860 154,557 403,149 506,938 Long-term Assets Long-term Assets - 7,634 7,634 807,634 807,634 807,634 Less: Accumulated Depreciation - 1,083 2,165 19,915 37,664 55,414 Total Long-term Assets - 6,551 5,469 787,719 769,970 752,220

Total Assets $82,000 $154,921 $261,329 $942,276 $1,173,119 $1,259,158 Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5 Current Liabilities

Accounts Payable $- $53,714 $81,283 $118,355 $154,358 $186,166 Total Current Liabilities - 53,714 81,283 118,355 154,358 186,166 Long-Term Liabilities MT Dept of Env. Quality Loan Payable - - - 45,043 - - B&I Loan Payable - - - 413,708 357,924 -Total Long-Term Liabilities - - - 458,751 357,923 -Total Liabilities - 53,714 81,283 577,107 512,281 185,873 Paid-in Capital 82,000 82,000 82,000 82,000 82,000 82,000 Retained Earnings - 19,207 98,046 283,170 578,838 991,285 Total Capital 82,000 101,207 180,046 365,170 660,838 1,073,285

Total Liabilities and Capital $82,000 $154,921 $261,329 $942,276 $1,173,119 $1,259,158

Net Worth $82,000 $101,207 $180,046 $365,170 $660,838 $1,073,285

Check Figures $- $- $- $- $- $-

Dance of the Sun: Balance Sheet


MT Department of Environmental Quality LoanInterest Rate: 4.10% Year Payment Annual Annual Principal Declining Annual Accumulated Accumulated Interest Pmt Payment Loan Balance Interest Pmt Principal Pmts

$100,000

1 $(9,057) $4,100 $(4,957) $95,043 $4,100 $(4,957) 2 (9,057) 3,897 (5,160) 89,883 7,997 (10,117) 3 (9,057) 3,685 (5,372) 84,511 11,682 (15,489) 4 (9,057) 3,465 (5,592) 78,918 15,147 (21,082) 5 (9,057) 3,236 (5,821) 73,097 18,383 (26,903) 6 (9,057) 2,997 (6,060) 67,037 21,380 (32,963) 7 (9,057) 2,749 (6,309) 60,728 24,128 (39,272) 8 (9,057) 2,490 (6,567) 54,161 26,618 (45,839) 9 (9,057) 2,221 (6,837) 47,324 28,838 (52,676) 10 (9,057) 1,940 (7,117) 40,208 30,779 (59,792) 11 (9,057) 1,649 (7,409) 32,799 32,427 (67,201) 12 (9,057) 1,345 (7,712) 25,087 33,772 (74,913) 13 (9,057) 1,029 (8,029) 17,058 34,801 (82,942) 14 (9,057) 699 (8,358) 8,700 35,500 (91,300)

15 $(9,057) $357 $(8,700) $(0) $35,857 $(100,000) Business And Industry Loan Interest Rate: 6.50% Year Payment Annual Annual Principal Declining Annual Accumulated Accumulated Annual Interest Pmt Payment Loan Balance Interest Pmt Principal Pmts Renewal

$469,140 Rate

1 $(35,926) $30,494 $(5,431) $463,708 $30,494 $(5,431)

2 (35,926) 30,141 (5,784) 457,924 60,635 (11,216) $916 3 (35,926) 29,765 (6,160) 451,763 90,400 (17,376) 904 4 (35,926) 29,365 (6,561) 445,202 119,765 (23,937) 890 5 (35,926) 28,938 (6,987) 438,215 148,703 (30,925) 876 6 (35,926) 28,484 (7,442) 430,774 177,187 (38,366) 862 7 (35,926) 28,000 (7,925) 422,848 205,187 (46,291) 846 8 (35,926) 27,485 (8,440) 414,408 232,672 (54,732) 829 9 (35,926) 26,937 (8,989) 405,419 259,609 (63,721) 811 10 (35,926) 26,352 (9,573) 395,846 285,961 (73,294) 792 11 (35,926) 25,730 (10,196) 385,650 311,691 (83,490) 771 12 (35,926) 25,067 (10,858) 374,792 336,758 (94,348) 750 13 (35,926) 24,361 (11,564) 363,228 361,120 (105,912) 726 14 (35,926) 23,610 (12,316) 350,912 384,730 (118,228) 702 15 (35,926) 22,809 (13,116) 337,796 407,539 (131,344) 676 16 (35,926) 21,957 (13,969) 323,827 429,496 (145,313) 648 17 (35,926) 21,049 (14,877) 308,950 450,544 (160,190) 618 18 (35,926) 20,082 (15,844) 293,106 470,626 (176,033) 586 19 (35,926) 19,052 (16,874) 276,233 489,678 (192,907) 552 20 (35,926) 17,955 (17,970) 258,263 507,633 (210,877) 517 21 (35,926) 16,787 (19,138) 239,124 524,420 (230,016) 478 22 (35,926) 15,543 (20,382) 218,742 539,963 (250,398) 437 23 (35,926) 14,218 (21,707) 197,034 554,182 (272,106) 394 24 (35,926) 12,807 (23,118) 173,916 566,989 (295,224) 348 25 (35,926) 11,305 (24,621) 149,295 578,293 (319,845) 299 26 (35,926) 9,704 (26,221) 123,074 587,997 (346,066) 246 27 (35,926) 8,000 (27,926) 95,148 595,997 (373,992) 190 28 (35,926) 6,185 (29,741) 65,407 602,182 (403,733) 131 29 (35,926) 4,251 (31,674) 33,733 606,433 (435,407) 67

30 $(35,926) $2,193 $(33,733) $(0) $608,626 $(469,140) $(0)

Dance of the Sun: Amortization Schedule


1. U.S. Dept of the Interior. (2011, Jan). Indian Arts and Crafts Board: The Indian Arts and Crafts Act of 1990. Retrieved Feb 2011, from Indian Arts and Crafts Board: http://www.doi.gov/iacb/act.html Ehrmann, T. (2010). 2009 Art Market Trends. Artprice Inc.2. Heritage. (2011, Mar). Fine and Decorative Arts. Retrieved 3 2011, from Heritage Auction Galleries: http://fineart.ha.com/c/index.zx?ic=Tab-Home-0414083. Sublette, M. (2011, Jan). Medicine Man Gallery. Retrieved Mar 2011, from Mark Sublette Medicine Man Gallery: http://www.medicinemangallery.com/4. Rand, M. (2004, Mar). Art Appreciation. Retrieved Mar 2011, from Forbes.com: http://www.forbes.com/2004/03/12/cz_mr_0315soapbox.html5. McAndrew, D. C. (2009). The International Art Market. London: European Fine Art Foun-dation.6. NASW. (2010, Jan). Tribal Business Contributions and Federal Mismanagement of Trust Funds. Retrieved Feb 2011, from National Association of Social Workers: http://www.socialwork-ers.org/diversity/native2003/tribal2003.asp7. Beest, M. V. (2010, April). Art Industry Analysis. Retrieved February 2011, from EHow: http://www.ehow.com/about_6328211_art-industry-analysis.html8. Ehrmann, T. (2010). 2009 Art Market Trends. Artprice Inc.9. Mael, R. (2008, Dec). Marketing In A Down Economy: A Special Business Q&A With Ra-fael Mael. Retrieved Feb 2011, from Art Business News: http://artbusinessnews.com/2008/12/10/marketing-in-a-down-economy-a-special-business-qa-with-rafael-mael/Duddy, M. a. (2008). Purchas-ing Demograhics of Art Conniseurrs. Brooklyn: Antiques.10. Montana Indian Business Alliance. (2011). Montana Indian Equity Fund Grants for Indian Business Owners. Retrieved from http://www.mibaonline.org/equity_fund.html11. United States Department of Agriculture Rural Development. (11 April, 2011). Business and Industry Loans (B&I). Retrieved from http://www.rurdev.usda.gov/BCP_gar.html12. Sunelco Solar, Wind, Hydro Electric Power. Tax Incentives, Energy Grants, Alternative En-ergy Loans. Retrieved from http://www.sunelco.com/incentives.html

Dance of the Sun: Sources

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