To start with, we had to get into groups. Our group is Emily, Anna, Caitlin, Grace and myself. I have a good feeling about this group as 2 members I have never worked with before and 2 I have so this will make a good change for me.
The first thing we had to do as a group was decided what business we were going to go into, the name of the business and the type of business we would become.
Before making any type of decision as to what type of business we should become, particularly as I have never had any formal training or learning towards business, I want to know what type of business I am going into before I sign a contract agreeing anything.
Types of Business:
Self- Employment/ Freelance (Sole Trader):
- Allowing yourself to work alone with creative freedom
- Relying on yourself to find clients and earn the money you live from
- As a sole trader, you take on any staff and are just responsible for the business
- Any debt left from the business is the responsibility of the freelancer
Collective:
- Informal association between a group of creatives who work and collaborate in the same space.
- Some successful collectives can turn into private companies
- All decisions are made democratically and any profits are shared equally or put back into the business
Partnership:
- Working alongside a partner where both parties involved get a say in how the company is run
- Generally they have both invested financially into the company
- It is important that a contract is drawn up between partners so that any dispute in the future can be resolved.
- Partners will all be responsible for any outstanding debt left over from the company
- Partnerships are based on compromising and a lot of partnerships don't last due to differences within the company
Limited Partnership/ Company:
- The company is responsible for everything it does and its finances are separate from any personal finances
- Members within the company have shares which they own so they have a part of the company itself
Private Limited Company:
- Limited companies are registered with company houses- this costs £15 to apply for
- The business is limited by the people who own parts of it called shares
- The company name must have the word limited or Ltd at the end of the name
- Private Limited Companies must have one director who must make sure that the business is run correctly.
Franchise:
- Using a successful businesses model to create your own shop
- You have to keep a franchise for a fixed amount of time and have to cover a certain location
- You have to pay a fee to the franchisor such as trademark royalties to be able to use their work.
Information found via http://www.businesstrainingcollege.com/business/different-types-of-businesses.htm
I felt like it would be good to look at the advantages and disadvantages to starting up a business so that I know what I am getting myself into.
These info-graphics show the many advantages to starting up your own business based on a survey by the business entrepreneur site Business Link.
"Business Link" Info-graphics
"Business Link Info-graphc" [Internet] Available from http://www.businesszone.co.uk/topic/business-trends/infographic-entrepreneurs-inspired-while-toilet-and-other-interesting-start-st (Accessed March 2014)
I think what is the most fitting about these results is that it is clear to see why people do start their own business as they have the freedom to work and do what they want. I think that people like the idea of being in control themselves and just want to be happy in life and they feel like working for someone take this away from them.
"Start Up Struggles" Info-graphics
"Entrepeneurs Greatest Struggle" [Internet] Available from http://blog.clarity.fm/startup-struggles-common-problems-startups-face/ (Accessed March 2014)
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Despite this, this disadvantages to being in a start up business is the lack of predictability and certainty in regards to work and livelihood. The need for new customers will not come easily and there is no guarantee that the company will get funding in the first place.
Source of Funds:
When sorting out the accounts to your own business, you need to set up a business bank account as it is the law. It is worth even getting an accountant to help sort your accounts on a monthly basis who can help with costings and business plans, preferably someone who already works within the design sector.
Own Savings
- It is recommended that by using your own savings to start a business, that you have at least 3-6 months worth of income in savings so that you are covered forty he first few months whilst you try to source clients.
- Buy using your own savings, you can buy the company outright without having any debts and you take full ownership
Bank Investment/ Loan
- By having a bank loan, you can get the money you need to invest into the business and pay the money back with the income made from the bank
- The loan would have to come out of your monthly expenses and you would have to pay interest from what you borrowed
Crowd Funding
"Crowd Power" Info-graphic
"Crowd Power" [Internet] Available from http://www.hongkiat.com/blog/cheatsheet-startup-entrepreneurs/ (Accessed March 2014)
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- Crowd funding is when small businesses can have other people to donate or pledge money towards something they are working on
- This would mean that those who pledge money act as investors into the company who would get a small number of shares into the business
- It i s a less traditional method of getting a lower cost capital however it is not as stable as getting capital investors
Trade Credit
- Trade credit is where someone within business can purchase something without the relevant payment, paying the supplier at a later date.
- The time between the purchase and the credit payment is settled between the two parties, usually within 60-90 days.
- Further on into the business, if you need extra funding, you can sell shares into the business by getting wealthy investors, friends and family or perhaps even crowd funding.
- Anyone who buys shares owns the company alongside yourself so that mean they have a say in how the company is run and are entitled to a share in the profit
Starting Up:
Even though you need imagination, determination to succeed and desire, it isn't enough just to have the qualities discussed in the info-graphic below.
"14 Tips to Starting up your Own Company"
"14 Tips to Staring up your Own Company" [Internet] Available from http://www.hongkiat.com/blog/cheatsheet-startup-entrepreneurs/ (Accessed March 2014)
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- Registering the business with the main authorities, eg. local council
- Registering the company name and getting a website url
- Setting up the relevant payroll system for employees
- Making sure all members of staff have signed an employment contract
- Creating contracts for clients
- Equipment- Software, iMacs, Printers and Scanners
- Studio Space- Buying or Renting
- Telecoms- Phone Line and Wifi
- Utility Bills- Water, Electricity, Heating
- Business Insurance
- Legal fees for Start Up Contract
- Salary- Payment for employees
- Rent
- Materials and Supply- Maintenance, New Supplies
- Insurance
- Utility Bills- Water, Electricity, Heating
- Taxes
- Legal Fees- Copyright and Intellectual Property
- Expenditure- Travel, Lunches/ Food, Meetings
- Bank Loan- Paying off debts
What To Charge:
One thing that I have always been stumped on is how would you know what to charge for your services.
"CR January: The Money Issue"
Creative Review (2012) "CR January: The Money Issue" [Internet] Available from http://www.creativereview.co.uk/cr-blog/2012/december/cr-january-13-issue (Accessed March 2014)
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Results from Major Players Survey for 2013 http://www.creativereview.co.uk/cr-blog/2014/january/major-players-salary-survey |
I think this is a good place to start as you can always work from the average amount in your pay bracket and work around that, tailoring it to your needs within your business, such as your own experience, monthly out-goings, ext.
"On The Money" Survey Results
Creative Review (2013) "On The Money" [Internet] Available from http://www.creativereview.co.uk/cr-blog/2013/january/more-money (Accessed March 2014)
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I think based on this information, we should apply it to our business by having a set hourly wage for the group so the pay is even and base it off the average wage for an inexperienced designer.
Group Meeting:
Partnership Agreement Contract |
The next thing we had to decided was what area of design we wanted to work in. We felt that anything to do with the entertainment sector would be saturated so this wasn't viable. One area which both myself and Emily always find ourselves working for is food and drink and felt that the love for food and drink would be something that the rest of the group would replicate. The decision was unanimous. This would narrow the audience we would have and work for but would keep ourselves very focused and specialised with a particular clientele.
We also needed to decide where a bouts we would be based. We wanted it to be central to the UK and in travelling distance from where we al live yet it also needed to be a place where a lot of food and drinks based companies would be. We felt that it would be nice to work in Manchester as it would be viable to commute their from our homes and there would be a lot of links to outside companies as well as good travel links to visit clients.
We decided that we needed to come up with some jobs that we should focus on so that we would be able to move forward. I was given the job of looking at competitors within the food and drink sector. Also, we had to come up with some name for the company that we could use.
Names:
One thing that we all agreed to do was come up with some possible business names for the company. I decided to go down the route of positive popular saying within food and drink so that we would be able to have a name which would be quirky and different.
The names that I came up with are:
- Top Banana
- Spoonful of Sugar
- Best Thing since Sliced Bread
- Peas in a Pod
- Baker's Dozen
- Cut the Mustard
- One for the Road
- Square Meal
- You are what you Eat
- Easy as Pie
- Humble Pie
- Forbidden Fruit
- Good Egg
- Icing on the Cake
- Rotten Apple
Potential Competitors:
From these jobs, I went onto having a look at our potential competitors in the market, looking at design studios and companies which specialise within food and drink in the design sector.
Hit Marketing Design "Hit Marketing Design" [Internet] Available from http://www.hitmarketingdesign.co.uk (Accessed March 2014) |
Rubber Cheese"Rubber Cheese" [Internet] Available from http://www.rubbercheese.com (Accessed March 2014) |
Hansell Design and Marketing"Hansell Design and Marketing" [Internet] Available from http://www.hanselldesign.co.uk/specialist-in-food-and-drink/#.UyDRRdywnwI (Accessed March 2014) |
This design sector consultancy is based on Kent and look towards producing more professional style work that is based on realistic, photoshop-based imagery. This gives the impression that the type of clientele they want to work for are more high-end and sophisticated as they are very stuck in their ways as they produce the same style of work every time.
Unami "Unami" Available from http://www.umamidesignforfood.co.uk (Accessed March 2014) |
Unami is a design company in Wales focus their inspiration on the flavours they get from food, specialising in more illustrative logo design. They have their own manifesto which I think is very interesting as this is something that we haven't considered having for our own company. I think this could be very relevant as it will give our company a focus.
Toast Design Agency "Toast Design Agency" [Internet] Available from http://www.toastdesign.co.uk (Accessed March 2014) |
What has intrigued me the most is the fact that these design agencies for there food and drink sector are mainly in the UK so that really highlights the importance of this sector to the UK industry. I think that, based on the illustrative style of work that we produce as individuals, there would be a niche for us to fall into that we could fulfil.
Records to Keep:
By law, anyone who has a business must pay Tax and those who do must keep records so that they can fill in a Tax return.
- When keeping records for your business, it is important that you keep records of your monthly incomings and outgoings. This includes any expenses you may have so it may be of interest to keep your receipts so you can see what has been bought and whether it made a profit or loss.
- The records you keep need to be kept over a few years as any claims you make or fill in a tax return for the year will be based on this. Legally, you must keep records of up to 6 years for Tax and 5 years for filling in a self-assessment Tax Return
- If you don't keep the correct records and cannot prove you have been paying the correct taxes then you will be asked to pay more as a Surcharge. To prevent this, it is recommended that you invest in an Accountant.
Information available from http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/startingup/keeprecs.htm (Accessed March 2014)
Group Meeting:
For the next group meeting, we met up and discussed what we had researched so far. The first thing we talked about was the placement of our business. Grace had found a place in Manchester called Media City which would do a desk for £50 rent a week that has great links to other trades and transport links. We decided to email them to see if this price would include utility bills and wifi because that would go towards the start up costs as well as the length of time you could get on a lease.
The next thing we looked at was thinking of a group name. The only person who had come up with any names was myself so I shared my ideas with the rest of the group and they actually quite liked the name 'Good Egg'. When asked about the reason behind the name, I said that it was because it was traditional and specific to the sector whilst giving the wholesome and friendly image to us with the emphasis on good showing that we are good at what we do.
Based on my research into other competitors, we decided that we wanted our client base to be other start up companies so that we wold be able to grow alongside them and so that we would be able to keep these clients in the future. We felt like as a start up business with no experience, it would be hard to take the competitors customers so focusing on people like us will cement that bond.
We decided that we would wait until the email reply would come back in regards to moving on with the placement decision. We felt that it would be a good decision for everyone to come up with their own logo for the company so that we had something to work with and that everyone would have had some creative input within the inception of the company.
Group Meeting:
The next time we met, we had had some doubts over the sector we are in and the name we had based on the fact that we felt that we had gone down a different direction and believed that we were suppose to have made something purely design based. Grace and Emily spoke to the John over the groups concerns and were reassured that we had taken the right direction by having a specific focus.
One concern we had as a group was promoting ourselves and getting clients due to the fact that we have no contacts. We started thinking about how we could do this. An idea came up about having a food truck we could have that would showcase our work and give out food and drink we had worked on which we could drive to different locations around the city but then we felt that this would give us an audience which would be too general. From that, we focused on the audience and came up with the idea of targeting food expos and festivals, where the audience and client would already be there and we could advertise our specific service to.
Another thing we discussed would be some terms and conditions that we could work with. We needed to decide amongst ourselves some general ground rules that we could all agree on. The ones that we came up with were:
- A deposit must be paid upfront of 25%
- The client may have 3 creative changes before paying extra for them
- No work will be produced until the client has signed a contract
- Clients can have work printed where they want or can use our connections for printing
- Work belongs to us until the amount is paid in full. You can pay us for full copyright of the work if you want another company to work on it.
We gave each other set jobs for when we finished over Easter so that we would be able to get working straight away on the presentation when we got back. We al had to come up with some logo and design brand concepts. From this, I was also given the job of producing a Manifesto for the company that would show and highlight how we are.
The first thing I did was do some little sketches of possible logo designs that I could think of for the brand.
Company Logo Sketches |
With my logo sketches being unsuccessful in my eyes, I moved onto my job for the group which was to come up with a manifesto for the company, which was going to be a difficult task as there are so many different types and style of manifesto which all depend on the message and intention behind them.
To achieve this, I knew I would have to research and look at manifestos of other companies that already exist:
Rubber Cheese Manifesto http://www.rubbercheese.com/about/how-do-we-work |
Anthony Burhill ManifestoTankboys "The Manifesto Project" [Internet] Available from http://www.manifestoproject.it (Accessed April 2014) |
Brand Architecture, Inc. Manifesto Brand Architecture (2014) "Manifesto" [Internet] Available from http://brandarchitectureinc.com/about.php#/#early (Accessed April 2014) |
Fedderick Terrel for Right Brain Terrain Manifesto Butler, K. (2011) "Five Manifestos for the Creative Life" [Internet] Available from http://www.brainpickings.org/index.php/2011/04/08/five-manifestos-for-life/ (Accessed April 2014) |
WorkIsNotAJob Manifesto wokisnotajob "Why?" [Internet] Available from http://workisnotajob.com/en/about (Accessed April 2014) |
The Cult of Done Manifesto Bre Prettis "The Cult of Done Manifesto" [Blog] Available from http://www.brepettis.com/blog/2009/3/3/the-cult-of-done-manifesto.html (Accessed April 2014) |
From the research and looking into different style and presentations of manifestos, I started to try and wrote on for the business. It took quite a few attempts because I would start down one line of enquiry and then think that it didn't suit the brand. I tried a long manifesto and a short one sentence one but felt that this wasn't working. After that, I got writers block and I couldn't get any inspiration from my group. Eventually, I got the idea of perhaps describing our design practise as foods but I felt that this would be difficult and if anything, would be more suited to describing us in the presentation. This lead to a brainwave when I thought that food is usually described on a menu so why couldn't we apply the design process to the same structure as a menu?
Manifesto Write Up |
I felt that this would give the company much more of a personality and this creative manifesto will put our out-of-the-box thinking as a strength to the clients.
Group Meeting:
The next group meeting I didn't manage to make because of illness so I didn't have any input in the decision that were made.
What I was given was a typeface and a logo which had been chosen by the rest of the group. Alongside this they had changed the name that I had come up with to 'oeuf'. With this, they had also decided to include a chicken within the presentation. They had also started planning the presentation of the company.
'Oeuf' Logo and Colour Scheme |
Using the typeface 'Brixton' and the 2 colour options, I wrote up the manifesto and played around with possible layouts.
Layouts for Manifesto |
For the presentation, we felt that it would be great to have some work we had done as a company by showcasing work we have actually produced for college briefs as individuals and collaboratives. So for the next meeting we had to choose some photos which we thought would be relevant.
My work from previous briefs |
Group Meeting:
The next group meeting we spent on working on the presentation itself. The yellow colour that was chosen we decided to try on the projector within the room we would be presenting in as we were not sure if it was going to be seen easily from the back.
Tried Yellow Shades |
We applied my manifesto to the presentation. The trouble was that it was very condensed on the presentation board so we changed it so that it was much more comfortable and legible on the page.
Menu Manifesto on Presentation |
Another thing I contributed to was the last page. When coming up with the manifesto, i thought about maybe signing off with the term 'Now let's get cracking' as it would be a positive reference to our brand, our sector and an encouragement to the clients to work with us straight away.
Development of Last Page |
Completing the Top Trump Cards |
Emily and myself then finished off all of the pages which didn't include figures, working out the layout for the presentation, adding all of the members images of their work to the presentation and including a border so it has more of a company brand.
Group Meeting:
The last thing we needed to do for the presentation is work out the figures behind the start up and monthly expenses so we could work out the profit we would make before adding it to our presentation.
Books from Library |
Based on the figures that Caitlin and myself had acquired during the research period, Emily, Grace and myself managed to try and work out what our start up costs would be and the amount of expenses that we would be taking.
Working out Finances |
Final Finances |
After this, we went through our presentation as a group, deciding on who would say what slides and what should be included during the slides. I made a note of this decisions.
Order for Presentation |
What I'm saying for Presentation |
I was given the slide for the manifesto as well as the slide for the finances as I contributed towards those aspects. So that I wads prepared for the presentation, I wrote down what I could say so that I would be as professionally prepared as possible for the presentation.
Final Presentation:
The presentation that we have produced for our company venture 'oeuf'. I am very happy with the presentation as it is very visual and relies more on the talking rather than having a lot of information on them making for a fun and stimulating presentation.
What I have liked about this brief is that I managed to have an insight into the world of business as this is something that I have never done before. I felt that this made it an invaluable exercise as this may be something that I would need in the real world and just some simple information could make all the difference between making a bad or a good business decision. If anything, I think we should have started learning about this sooner and make it an essential part of the curriculum. Another thing I liked was the people I got to work with. My last group work as a collaborative didn't go so well so this has helped change this opinion around as I think we all contributed and got along very well-like we were already a company business.