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Museums across the United States were deeply affected by the Great Recession and global financial crisis that started in 2008. Just like art galleries and performance spaces, museums are very sensitive to economic gyrations. They are highly dependent on government funding, donations from patrons and endowments. Museums that curate and showcase the cultural and artistic contributions of the Hispanic American community were not impervious to the financial meltdown of 2008, but three museums that specialize in Latino culture have managed to stay afloat thanks to hard work and creative financing.
A quick review at the steps taken by these museums to stay afloat during challenging times offers lessons that all Hispanic business owners should take into account when faced with economic difficulties.
The Museum of Latin American Art (MOLAA)
Located in Long Beach, MOLAA is an important cultural center for the vast Latino community of Los Angeles. When funding cuts took effect a few years ago, one of MOLAA's concerns was the transportation of public school children who regularly arrived in the museum as part of their field trip. Once the recession affected the school bus programs in Los Angeles, MOLAA's directors reached out to their friends and raised funds to purchase their own bus.
MOLAA identified some of their most successful artworks and organized a special auction that featured aggressive marketing targeting patrons and artists. This is a clear example of identifying strengths and selling them.
El Museo del Barrio
El Museo del Barrio in New York saw its municipal subsidy cut by 10 percent last year, the directors were forced to layoff some employees and cut their exhibits short. To prevent further reduction of its activities, the museum immediately looked for new private funding opportunities, many of them from Hispanic business owners and entrepreneurs. The lesson learned in this case is to not depend on a single source of funding.
The National Hispanic Cultural Center
Located in Albuquerque, N.M., The National Hispanic Cultural Center saw almost a full quarter of its annual budget slashed in 2011. The directors took this shortfall in stride; they reduced some operating expenses and found new ways of generating income. Local artists were encouraged to exhibit their work, and permanent collections were showcased longer. The center also looked for volunteers and promoters to help them defray operating costs. The lesson learned here is that by applying lean operating techniques and diversifying income sources, a business can stay afloat during hard times.
