Addressing Financial Matters at GELT Essay
Addressing Financial Matters at GELT
Regardless of how large or small theater productions are, they require people with different yet specific goals such as managerial, technical and artistic tasks (Barranger). One such theater company is the Greater Euclid Little Theatre (GELT). Although the theater started small, through the years, it has expanded its productions. With its expansion, GELT faces new challenges that have emerged.
Due to the extensive growth of GELT as a theater company, financial problems have arisen.
Janet Dobbs who was elected as the new president thus faces such problems. The fact that she was a member of the budget committee emphasizes the need to address the problem. But what are the specific difficulties that GELT is actually encountering? The increasing debt that the theater has acquired because of unprecedented expenditures in productions is taking its toll. Although Dobbs has proposed a budget for the coming year that may solve this problem, it was rejected by the board of directors.
Thus, Dobbs is now faced with the problem of how to eliminate the debt incurred by the organization and at the same time, pleasing the artistic department.
An option that Dobbs can take is to create a budget proposal that satisfies the artistic standards of the board of directors. By doing so, she addresses the issue regarding limiting the resources of the theater which implies limiting the artistic ideas of the productions. Upon pleasing the artistic members of the organization, Dobbs is now faced with the financial problem at hand. To resolve the financial issue, she has to find ways on how to increase the revenues and decrease the expenditures of the theater company. To increase revenues, Dobbs can initiate major fundraising activities for the organization. Furthermore, investing an appropriate amount on promotions will increase ticket sales thus, increasing revenue. Another way to increase revenues is to find more organizations that support theater arts to obtain more donations. On the other hand, to decrease expenditures, GELT should find major sponsors and benefactors for each staged production. By doing so, fewer expenses are incurred.
Another solution that can be done to address the financial crisis of GELT is to locate different arts enthusiasts and theatre companies and team up with them when staging theater productions. This will decrease the expenditures of the organization and at the same time expose the staff and artists to a wider scope. In addition, to deal with the debts, the organization can identify to whom it is indebted to and attract them to support the organization. Thus, rather than allocating expenses for the debts, use of facilities and utilities will be for free since these companies support the organization. Not only will the theater company reduce its expenditures, it will also get rid of the debts it has incurred.
An alternative approach will require much of the courage and determination of the newly elected president. In this alternative solution, Dobbs will have to muster all her persuading and convincing abilities. It is quite obvious in the case that the board members who negatively voted for the budget proposal seem not to understand how money matters make every production possible. Thus, in this option, Dobbs will persistently present the original budget proposal. This time, she will try to convince every member that the financial stability of the organization lies on the budget proposed originally. By trying to reason out that what she has proposed is unavoidable and that the financial problem is real, she would then get the budget she would like to have. Dobbs only needs to personally explain in layman’s language the urgent necessity they are facing regarding the theater’s finances.
Barranger, Milly S. Theater. Microsoft® Encarta® 2007 [CD]. Redmond, WA: Microsoft Corporation, 2006.
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