A Simple Strategy for Non-Profit Arts Organisations: Big Business Tactics to Drive Growth

Filling these seats isn't just a matter of luck

Running a small non-profit arts organisation - whether it’s a community theatre, a local gallery, or a music collective - is a labour of love. But as we’re sure you know it’s also a lot of work. You’re constantly juggling creative projects, tight budgets, keeping stakeholders onside, and the need to keep your audience engaged.

With all these competing demands, it can be difficult to keep an eye on what projects are looking after themselves and what might need work. Luckily, there’s a pretty straightforward strategy that can help you prioritise where to spend your time, and importantly where to spend your limited funds.

That’s where the Boston Consulting Group (BCG) Portfolio Analysis comes in. A BCG Portfolio Analysis doesn’t require a suit or an MBA. It’s just a tool to help you sort through what’s working, what’s not, and what could be worth investing in.

So, what's so simple about this strategy then, and how can it benefit non-profit organisations?

Put simply: the BCG framework is a way to organise your programs, events, or marketing efforts into four categories based on two factors:

1. How successful it is right now (this is your market share).

2. How much potential it has to grow (growth potential).

   
   

The four categories are:

1. High Market Share/ High Growth Potential (stars): These are your winners - popular now and with lots of room to grow. Think of a new program that’s getting a lot of attention, has already sold out and will likely draw even more attention the next time it is run.

2. High Market Share/ Low Growth Potential (cash cows): These are your steady earners - reliable and successful but not growing much. For example, an annual event that always sells out.

3. Low Market Share/ High Growth Potential (question marks): These are the wildcards - they have potential but aren’t quite hitting the mark yet. Maybe a new workshop series that’s still finding its audience.

4. Low Market Share/ Low Growth Potential: These are the underperformers - the BCG Portfolio Analysis calls them Dogs, which may be a bit harsh. Fundamentally, they’re not bringing in much money or engagement, and they’re not likely to in the future.

   
   

By sorting your efforts into these categories, you can figure out where to invest your energy and where to cut back. For non-profits this can help you proritise where to send limited funds and demonstrate to your stakeholders how you're generating value.

How to apply this to your projects

You can apply the BCG framework to your marketing and programs in three steps:

Step 1: Make a List of everything you do

First, write down all your programs, events, or marketing channels. For example:

• Your annual fundraising gala

• Weekly art classes

• Social media posts

• Email newsletters

• A new podcast about local artists

  
  

Step 2: Sort Them into the Four Categories

Now, ask yourself two questions about each item on your list:

1. Is it popular or successful right now? (High or low market share)

2. Does it have room to grow? (High or low growth potential)

   
   

Here’s how it might look:

• Stars: Your new podcast is getting a lot of attention and has the potential to reach even more people.

• Cash Cows: Your annual gala always sells out and brings in steady funding.

• Question Marks: Your weekly art classes have potential, but attendance has been low.

• Dogs: Your email newsletter isn’t getting many opens or clicks, and it’s not driving ticket sales.

  
  

Step 3: Decide What to Do Next

Now that you’ve sorted everything, here’s how to act on it:

• Stars: Invest in these! They’re your future. For example, promote your podcast more heavily or partner with other artists or organisations to draw in new listeners.

• Cash Cows: Keep doing these, but don’t pour too much extra money into them. Use the steady income they generate to fund other projects.

• Question Marks: Test and tweak these to see if they can become Stars. For example, try offering your art classes or workshops at a different time or partnering with a local school to boost attendance.

• Dogs: It might be time to let these go. If your email newsletter isn’t working, consider focusing on social media instead.

  
  

Why This Works for Small Non-Profits

Here’s why this framework is a game-changer for small arts organisations:

1. It’s Simple: You don’t need special tools or a big budget to use this framework. It’s just about thinking strategically.

2. It Saves Time and Money: By focusing on what’s working (and what could work), you avoid wasting resources on things that aren’t paying off.

3. It Helps You Grow: By identifying your Stars and Question Marks, you can focus on the programs and marketing efforts that have the most potential to grow your audience and impact.

   
   

An Example: A Small Theatre Company

Let’s make this real with an example. Imagine you run a small theatre company, operating purely off ticket sales and bequests. Here’s how you might use the BCG framework:

• Star: Your new online streaming service for live performances is gaining traction. Invest in promoting it and expanding its reach.

• Cash Cow: Your annual holiday show always sells out. Keep doing it, but don’t spend extra money trying to grow it.

• Question Mark: Your youth theatre program has potential but isn’t drawing many participants. Experiment with new marketing or partnerships to see if it can grow.

• Dog: Your print ads in a local magazine aren’t bringing in many ticket sales. If running these ads aren't mandated consider cutting them and reallocating that budget to social media.

  
  

The Analysis is that simple. It’s about making smart, intentional choices – instead of operating purely off what you’re passionate about or what’s new.

Final Thoughts

The BCG Portfolio Analysis might sound like a growth tactic only big business uses, but it’s actually a great and fairly simple strategy to drive results for your smaller non profit arts organisation. It’s a straightforward way to take stock of what you’re doing, figure out what’s worth investing in, and make sure you’re not wasting time or money on things that aren’t working. By focusing on your Stars and giving your Question Marks a little extra attention, you can set your organisation up for long-term success - without overcomplicating things.

So, grab a cuppa, make a list of what you’re working on, and start sorting. You might be surprised at how much clearer your next steps become.