Todays climate may have to set up as fewer opportunities and also a lot of support to set a business up. The risk is lower.
87% of creative industries are organised with 10 or less people.
Disclaimer
Start a business can mean become a Freelance designer, 'collective', creative commune, or practising artist
Jonny Cup cakes and Bongo boy How to start a business - YOUTUBE video
Issue discussed:
Why start a business - be passionate/ driven
Collaboration - Disney, Warner Brothers - Aim high
4 PS- Product - t shirts
Price reguar and limted editions
Promotion - USA tour
Place - Fantasy bakery on stroids
Getting ripped off - copyright matters
Marketing
See slide 2 for rest
Getting started
Starting a business...they think it takes luck, a clever idea or just knowing the right people. Thats not true. Its about you. Mark Boulton - Web Designer
Personality is important
www.growing business.co.uk - advice:
- do what you love
- Start your business while you are still a student or employed.
- Don't do it alone.
- Write a business plan
- Do the research
- Get pro help
- Get legal and tax issues right first time.
www.sybmagazine.com
- Come up with a good business idea
- Write a business plan
www.betterbusiness.co.uk
www.bytestart.co.uk
Why are you starting a business
Company structure
Skills - Collaborate if you neeed more skills
Funding
Competation
Markeplace
Business pan
Staff
Seek profesional advise
Biggest cause of failue - find out so you can avoid
What is a business plan?
- A business plan is a written statement of where you going to go and how you are going to achieve it.
See diagram - Mission and value/ activity and skills required - what problems are you going to solve and how are you going to make things better.
Money, Financeneeded, Budgeting and money management systems
Resources and equipment needed ( Overheads)
Marketing - 4ps
Monitor your Competitors
In short - If you want to invest oney or ask for investment need to know:
What are you going to do?
What is the value proposition?
What resources you need?
How much it will cost to get it started?
How will you pay for it?
Who are you target customers?
Business plan - why we need one?
In short - If you want to invest oney or ask for investment need to know:
What are you going to do?
What is the value proposition?
What resources you need?
How much it will cost to get it started?
How will you pay for it?
Who are you target customers?
Business plan - why we need one?
- Focus your efforts
- Set some clear objectives - to review in a year
- To enable you to track your growth
- To raise finance
- Attract collaborators - partners
Www.freelance.com
Where to find a business plan:
- Banks
- Download on Barclays
- The Arts Council Grants - if will benefit people/social project
- www.businessball.com - informal
- www.businesslink.gov.uk - now disbanded but can still use resources
Funding?
- By helping others to get grants - Assist Not for profit, community organisations. Get a grant to do the work you can do i.e. Website design, branding
- Crowd funding - Websites inviting people to invest small projects - Chose correct project website. Need a business plan
- wedidthis.org.uk - Crowd funding website
- Cooperative - Film makers, graphic designers, photographers small investment from each collaborator.
How do you get organised?
Work alone, team, colaborate?
Organisations - Meredith Belbin - British team management author
http://www.mindtools.com/pages/article/newLDR_83.htm
Power Culture - eg Owner managed - Restaurant, family business. Can be difficult to work in these kind of business, can be unpleasant.
Role Culture - Large organisations - hierarchies eg College, PLCs, Councils
Task/matrix culture - Collaborators/freelance come together eg Holywood making a film., Interior designers, Festival
Person culture - eg a dental practice - for dentist with their own clients they need shared services such as cleaners, receptionists, Solicitors, Design practice
How will you organise your practice?
What skills do you need to get the job done?
Income streams
- Private commissions
- Freelance design work
- Workshops, part time teaching
- Royalties from book sales - subject passionate about
- Professionals seminars
Why I started a business - video
Jeff Bozoz - No regrets staring Amazon
What status?
Legal status determines how much tax you pay - what are t=you going to do with your profits - In pocket - self employed
- SHare - Cooperative
- Charity- Social enterprise
Look at hyperlinks on power point
Sole trader
Partnership
Limited Company
Limited Liability Partnership
Public Limited Company
Can determine how the business iis run
Whetehr you can get investment
Companies House
Businesslink
Social Enterprise Coalition - Not a legal status
Cooperatives Uk
Taxation in the Uk
Tax allowance £7475
tax bands
0-35000 20%
35001-150000 40%
Over 150,000 50%
Applies to everyone
National Insurance Contributions - State pension, aspects of NHS, rescues people
Without this we would have to have private dental, medical insurance
Self employed £2.50 per week
Class 4 7000 to £42,475 pay 9%
Self employed also pay class 1 - 3.7%
Sole Trader obligations
- Keep records safe
- Separate personal from business expense
- Private and business use of car
- Responsible for any debts
Partnership
- Run by two or more people
- Share of profits
- share of debts
- share need not be equal
- Responsible for any debts
Limited Company
Directors and shareholders liability for debts is limited to a % of ownership.
Annual meeting
Approve accounts
Register with companies house
At least two employees - Can do as sole trader and put your wife/husband as 1% shareholder.
Startup have a £10,000 tax free threshold
Liabilities
NIC payments
Corporation tax payments
VAt payments
Corporation tax
21% ,£300,000
VAT registered
More than £70k
Charge extra 20% on all invoices to customers.
5%
Zero rated - water supplies, Food in restaurants, Passengertrasnport
Exempt - Needs an act of parliament to change
You hav
Eye to eye: Richard Branson interview.e to register charge 20% more and can claim the VAt back on everything you buy. No advantage if you do not buy a lot of goods.
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