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Professional vs Amateur

Thu, 22 Dec 2005, 02:31 pm
Bill Macpherson17 posts in thread
Can anyone point me in the direction of info about the differences between setting up a professional company vs an Amateur one.

Am I naive in assuming the major difference is that some people might get paid ?

cheers

Russell Chandler

Re: Professional vs Amateur

Sun, 1 Jan 2006, 03:56 am
The Children's Theatre Company of Victoria doesn't actually mount productions. We work in association with schools and theatre companies, both professional and amateur, but we never put ourselves in a position where we're exposed to risk, especially financial or legal.

In my other professional work I'm a management consultant, trainer and author specialising in small and medium business, and I've lectured in graduate and post-graduate business programs. My web site at http://www.profitclinic.com has a global reputation.

All of this gives me some insight and experience to comment on this topic, but the reality is that nothing is completely cut-and-dried when it comes to liability and legal claims.

In more than 40 years of active involvement in live theatre, both professionally and in an amateur capacity, there are some simple, common realities that I've experienced or observed when it comes to the differences between professional and amateur.

-- Amateur companies can be as professional in the way they're run as any professional company.

-- Both have legal and financial obligations under the law.

-- Any kind of corporate structure, including close corporations, co-operatives and incorporated associations, is covered by unified federal legislation and regulation. State Offices of Business and Fair Trading or Consumer Affairs have jurisdiction locally over other issues. It can be tricky differentiating them at times but, in a nutshell, if it involves a company or incorporated body, federal law is likely to apply.

-- A limited partnership may be a better option than a co-operative or company, especially for a one-off production. It pays to seek competent legal advice before deciding on any formal structure.

-- Professional companies tend to be more focused on money -- especially profits -- than amateur companies, and will make decisions based purely on financial considerations. Amateur companies are more likely to give higher value to artistic considerations... but the down side to this may be self-indulgence, especially in the decay phase of a group's life cycle.

I hope this helps in some way.

John

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