The Business Plan for Creatives

If you are looking for a business plan you've probably found that most of the business plans out their are aimed at big businesses, with sales projections five years in advance. So with this in mind the Explainafide team have come up with a free Plan specifically designed for creatives and other micro-businesses on a minimal budget.

A plan of attack is essential when you're in a hyper competitive industry like Art, Photography, Writing or Music. Jotting your thoughts, dreams and ideas down will assist you in being realistic about what you're good at, what you're not, and how achievable your goals are. By doing this not only will you hopefully gain some clarity about your situation, but also if you go for a government grant, bank loan, or even a loan from your family, you look like you're more professional and prepared.

Some of the information and tips provided here won't be relevant to your situation so feel free to edit/ remove as you see fit but it is all worth reading and at least thinking about.

Doing what you love takes more than just talent. There is also a lot of planning, marketing, and finance control.

The Business- Information you will need to provide:Business name: Business Registration Number: For tax purposesBusiness location: This could be your house, a studio or an office. If its the neighbours cubby house, remember to say Level 1 so you look more professional.Date established: Business owner(s):Website Address:Relevant owner experience: eg: I have over 15 years experience working in the paper mache industry...Lease: This may not be necessary, but if you are taking out a loan it will be important as it affects your cash flow.

Products/services: What products do you aim to specialise in and what products will be more of a side project? Is selling hand made fabric owls your main area of expertise or is it more an aside?

The Market/ Marketing: Target market: Who are you marketing your product/service to?

Marketing strategy: How are you currently selling your goods? What avenues work and what don't? How do you think you can improve marketability?

Market position: Of all your competitors out there where do you see yourself fit in? High end, mid-range, budget.

Unique selling position: What makes you stand out from everyone else? Anticipated demand: How busy do you envisage yourself being? Pricing strategy: How are you going to compete on price? Are you going to be the cheapest of the cheap or slightly above average but give better service to justify the extra price?

Market research How do you plan to research your market? Will this be done through extended family and friends or something larger? Customer demographicsFrom your research what are your key customer demographics? As an example

Holiday makers visiting from the city

Fellow artists.

Corporations that love Art

Customer management How are you going to manage customer complaints. This is important as unfortunately you will occasionally come across difficult and hard to please customers.

The FutureVision or Goal statement:Eg: I would like be a world famous fabric designer, creating one of a kind fabrics for fashion houses. Goals/objectives:Do you have a plan to get to your dream? What are the foreseeable stepping stones?

The FinancesDon't be scared! Write a simple budget of regular income you can rely on and the bare minimum you need to earn to live on. Below is a simple table of potential business expenses.

How much do you think your business requires to get off the ground & then add 20%!

Do you need to get an outside party to help with the funding?

Upfront Expenses:

ExpenseCompanyEstimate Cost

Logo Design

Web Design

Photographs

Registrations

Marketing

New Laptop

Tools of the Trade

Business Cards

Stationary

Desk, Chair

Legals

Ongoing Expenses:

ExpenseCompanyEstimate Cost

Software SubscriptionsAccounting$50.00 p/month

Software SubscriptionsDesign Software$1,000.00 one-off

Marketing ExpensesDirectories $200.00 p/year

Web Hosting/ SEOExplainafide $200.00 p/month

Telephone BillTelco$50.00 p/month

Membership Fees

Studio Rent

Accounting Fees

Registrations

Maintenance of Tools

Services/ Products Sold: Insurance: (don't yawn) Public liability insurance: Is this necessary? If you run a market stall or have people coming to your home then it might be. Professional indemnity: This may not be necessary but worth considering. Business assets: What do you use to create your artwork? Laptop, Sewing Machine, Car, Tools, Paints, and of course the finished product.

Legal considerations: Do you have or do you need any contracts with suppliers, freelancers or customers.Engaging Contractors

Reselling

Website Contracts

Contracts for clients engaging my services

Memberships and affiliations: What organisations do you belong to:

SWOT Analysis: (these are just examples) Strength, Weakness, Opportunity & Threats Strengths:Low overheads

Good support from Family & Friends

Ability to change direction if necessary

Little Initial Outlay

WeaknessesI have $1.25 in the bank

Not much business experience

Business revolves around me, a problem if I get sick or want a holiday!

Live in a regional community

OpportunitiesWill developing a website allow you to reach a broader audience?

Is there a gap in the market that you can fill?

Are your competitors missing a niche you can fill or performing badly in an area you excel at?

ThreatsAre there any new competitors on the horizon?

Are there any personal issues or commitments that may interfere with you building up a business?

Advertising & sales: Advertising and promotional strategy:How are you going to Advertise?

Through your Website

Through a third party website- Etsy, eBay

Market Stall

Existing Contacts

Friends & Family

Local Community

Entering Design Competitions

Cold calling Galleries

Writing Articles on blogs to expand your name

Volunteer Work

Swapping and trading skills

The Finances: Key objectives and financial review

Financial objectives (an example) 1. My short term goal (within 6 months) is to be able to reduce my hours to 2 days a week at my regular job and have enough money coming in to not live on 2 minute noodles. Therefore I need to earn a minimum $20,000 per year from my art.

2. My medium term goal (1 year) is to be able to live full time solely off my creative endeavour. Therefore I need to earn at least $45,000 per year from my art

Summary:This is a just a brief overview of things to consider for your future business in a creative industry, and enough to get you thinking and planning.This is where you cap off why your business will be successful.

Simple Business Plan Created by Explainafide http://explainafide.com.au