Frieze frame
This case examines the entrepreneurial meanders of Matthew Slotover and Amanda Sharp, as they slowly build Frieze into a leading brand in the contemporary art publishing scene.
In retrospect, Matthew Slotover’s parents should not have worried so much in 1989, when the young man, freshly graduated from Oxford University, was still living at home, seeking his path. At the time, Matthew’s parents could not have foreseen that their son and his business partner Amanda Sharp would be heading a small art business based on two strong legs: Frieze Magazine, and Frieze Art events.
In 2008, those two divisions employed 44 people, for revenues of GBP 5 million, of which events accounted for GBP 3.5 million.
How did Matthew become an entrepreneur? The case shows the hesitations, the false starts, the initial difficulties, the importance of keeping ears open to criticism and suggestions – all elements that are necessary for the entrepreneur to escape the carnage of failed ventures.
For Matthew, there were six stations in his pilgrim’s progress to a viable business.
The first station involved his parent’s patience after his graduation. For a few years, Matthew still lived at home, seeking his way. It was a chance visit to a contemporary art gallery that served a match to his entrepreneurial fire. Matthew started realizing that he wanted to be involved in the commerce of art. The question now was how?
After support came experimentation. The second station was an attempt – inspired by a promotion in the Guardian daily newspaper – to help sell art directly, bypassing the traditional business model of art galleries. By promoting the artworks in a magazine tentatively called RT Magazine, and selling the artworks at a lower commission, Matthew was hoping to lower prices and increase the market size. But in canvassing artists and galleries about their interest, this balloon was quickly popped.
Following the failed experiment of going it on his own, Matthew turned to partnership. This third station commenced in early 1991 and eventually led to the launch of Frieze Magazine. This was the period when Matthew contacted Amanda Sharp, an old university friend who provided the practical sales dimension without which the venture could not fly. A third partner helped design the magazine, making it one of the more striking publications.
So, is this where the story stops? Not so fast. Although the first issue, dated June 1991, included many free ads and was largely distributed by hand free of charge, it elicited such positive response that the three partners felt they were on the right track.
After local success, the next move was geographical expansion. This fourth station occurred in 1992, when Matthew and Amanda decided to move into North America, relying on previously established connections and the publication’s good reputation in the art spheres.
Now, the little Frieze ship is sailing along in relatively smooth waters, increasing its revenues from advertisements and paid circulation. Contributors and staff are being paid close to market values.
Following geographical expansion, new market exploration offers another growth avenue. And along comes station five, in 1999, when Matthew is lured away to work in a small technology business. How was this possible? After eight years, Matthew and his team were starting to feel too much humdrum; maybe even a touch of boredom. Thankfully for Frieze, Matthew only lasted a couple of months in the tech world.
Back in Frieze environment, Matthew and Amanda continued looking, on the side, for other markets. For Amanda, it is some television work and then a move to New York to replace the departed US editor. For Matthew, it is the launch of Counter Editions, a business based on his initial idea of selling artworks at lower commissions.
These aborted business musings do not discourage the partners but lead them to station six, in 2003, when Matthew and Amanda decide to set up Frieze Events division to organize contemporary art fairs in London. The first edition of the Frieze Art Fair in London was such a success that it almost instantly joined the ranks of the top three contemporary art fairs, alongside Basel and Miami.
At the time of the writing, Matthew and Amanda are considering which growth option to take on next (see box). The case leaves us therefore with the elements to discuss how to reconcile the founders’ need for novelty and the requirement for profitability – or at least self-financing ability.
Reference:
ECCH 809-036-1
"Frieze: The business of contemporary art"
Dr. Stephanie Hussels, Robert Brown and Kathryn Titterington
University of Cranfield, School of Management
Published October 2009
