Business model of Aparaaditehas

Lemmit Kaplinski

Additional note to our business model is we have the private owner and he thinks for the profit company. He cannot be really interested in other thing than getting his rent. The persons behind the company of course are interested in having a place which is really nice and which attracts certain types of people. But the company itself cannot be interested in anything else.

So the question is, how do we turn it into a culture center as opposed to simply place where you can rent a space. And here we are trying something which we have not done here and have not heard much being experimented outside, correct me if I am wrong, but basically the way that we finance the cultural activities here in this center is that from every euro they pay us a rent we shave off a certain percentage and direct it back into a non-profit organization which has this long-term agreement with the owner. Basically the owner is buying a marketing services from this non-profit, we call it marketing, and paying for those services with a portion of the rent. So this is the way the non-for-profit organization is motivated to bring in people who pay a rent as opposed doing everything for free. Because that is where the income comes from.

And at the same the more people we have here, the more people are paying the rent, the happier the company that owns the space is. So I think we have found a solution, which earns the owner what he needs and also allows us to do what we want to do in a way that benefits the both. Whether it will work we will see in three years maybe. But I am very hopeful about this.

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